{"id":"C2004A02425","name":"Customs Undertakings (Penalties) Act 1981","slug":"customs-undertakings-penalties-act-1981","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"47 of 1981","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":6765,"registerId":"commonwealth-C2004A02425-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n  This Act may be cited as the Customs Undertakings (Penalties) Act 1981.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n  This Act shall come into operation on the day on which the Customs Amendment (Tenders) Act 1981 comes into operation.","sortOrder":1},{"sectionNumber":"2A","sectionType":"section","heading":"General administration of Act","content":"#### 2A General administration of Act\n\n  The Comptroller‑General of Customs (within the meaning of the Customs Act 1901) has the general administration of this Act.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Interpretation","content":"#### 3 Interpretation\n\n  (1) In this Act, unless the contrary intention appears:\n\n> Customs undertaking means an undertaking given under subsection 267(1) or 268(2) of the Customs Act 1901, and includes such an undertaking as varied.\n\n> item of a Customs Tariff and proposed item of a Customs Tariff have the same respective meanings as in Part XVI of the Customs Act 1901.\n\n> prescribed percentage, in relation to goods, means the prescribed percentage set out in the Customs undertaking that relates to the goods.\n\n  (2) For the purposes of this Act, where a Customs undertaking sets out the value of a unit of the goods to which the undertaking relates, the value of the goods shall be calculated in accordance with that value.","sortOrder":3},{"sectionNumber":"3A","sectionType":"section","heading":"Act does not extend to Norfolk Island","content":"#### 3A Act does not extend to Norfolk Island\n\n  This Act does not extend to Norfolk Island.","sortOrder":4},{"sectionNumber":"4","sectionType":"section","heading":"Penalty","content":"#### 4 Penalty\n\n  (1) Subject to subsection (2), where a person breaches a Customs undertaking given by him or her, there is payable by that person to the Commonwealth, by way of penalty, an amount equal to the prescribed percentage of the value of the goods to which the undertaking relates.\n  (2) Where a person who has given a Customs undertaking has, in partial compliance with the undertaking, entered goods for home consumption under an item, or proposed item, of a Customs Tariff to which the undertaking relates during the period, or each of the periods, specified in the undertaking, the penalty otherwise applicable under subsection (1) shall be reduced by an amount that bears to the amount of that penalty the same proportion as:\n    (a) where a particular quantity of goods was required to be so entered to comply fully with the undertaking—the quantity of goods so entered bears to that particular quantity; or\n    (b) where a quantity of goods of a particular value was required to be so entered to comply fully with the undertaking—the value of the goods so entered bears to that particular value.","sortOrder":5}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The supplied text sets out a limited, specific scheme: penalties tied to breaches of customs undertakings given under subsections 267(1) or 268(2) of the Customs Act 1901, administration by the Comptroller‑General, proportional reductions for partial compliance, exclusion of Norfolk Island, and commencement linked to the Customs Amendment (Tenders) Act 1981 (s1–s4; s2A; s3A). The text does not indicate any change from an earlier or original scope; no amendment history or contrasting prior text is included in the material provided."},"complexity_factors":["Short text but relies on cross-references to the Customs Act 1901 for the meaning of a \"Customs undertaking\" (s3).","Penalty amount depends on terms set in each undertaking (\"prescribed percentage\" and any unit value), so computation is fact-specific (s3; s3(2); s4(1)).","Partial-compliance reduction uses two alternative proportional bases (quantity or value), requiring record-keeping and proportional arithmetic (s4(2)(a)–(b)).","Administration and enforcement discretion are concentrated in the Comptroller‑General of Customs (s2A), which affects operational implementation though the Act gives limited procedural detail.","Commencement is linked to another Act, so timing of effect depends on an external instrument (s2).","Geographic limitation: the Act explicitly excludes Norfolk Island (s3A)."],"plain_english_summary":"This Act creates a financial penalty payable to the Commonwealth when a person breaches a statutory customs undertaking, administered by the Comptroller‑General of Customs. The penalty equals a prescribed percentage of the goods’ value as set in the undertaking, but is reduced proportionately for partial compliance by entering goods for home consumption. The law excludes Norfolk Island."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: creating a penalty mechanism for breaches of Customs undertakings. No significant expansion of scope is evident."},"complexity_factors":["Only 3 defined terms in the interpretation section (section 3)","Single operative provision (section 4) with straightforward conditional logic","No cross-references to other legislation beyond basic definitions and commencement trigger","Simple mathematical formula for penalty reduction in subsection 4(2)","Short statute (approximately 6 substantive sections)","No delegated legislation or regulation-making powers"],"plain_english_summary":"This law creates a financial penalty system for people or businesses who break promises made to Australian Customs.\n\n**What it does:**\n- When someone gives a **\"Customs undertaking\"** (a formal promise to Customs about how goods will be imported), and then breaks that promise, they must pay a penalty to the government.\n- The penalty is calculated as a **percentage of the value of the goods** involved. The exact percentage is set out in the original undertaking.\n- If someone partially keeps their promise (for example, importing some but not all of the goods they agreed to), the penalty is reduced proportionally.\n\n**Who it affects:**\n- Importers and businesses who enter into formal agreements with Australian Customs about how they will bring goods into the country.\n- The **Comptroller-General of Customs** (the head of Australia's border and customs agency) administers this law.\n\n**Why it matters:**\n- This law gives Customs a way to enforce compliance without immediately resorting to criminal prosecution. It creates a financial incentive for importers to honour their commitments about tariff classifications, quantities, or values of imported goods.\n- **Note:** This law does **not** apply to Norfolk Island."},"summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act appears to fulfil its stated purpose precisely — it is a narrow, focused piece of legislation that does exactly what its title suggests: establishes penalties for breaching Customs undertakings. There is no indication of scope creep or departure from the original intent."},"complexity_factors":["Proportional penalty calculation in subsection 4(2) requires understanding two alternative bases (quantity vs. value) which could cause confusion","Relies heavily on external legislation — the Customs Act 1901 — for key definitions and the undertaking framework itself, meaning this Act cannot be fully understood in isolation","Technical customs and tariff terminology (e.g., 'item of a Customs Tariff', 'entered for home consumption') requires specialist trade knowledge","The Act is very short and narrowly focused, limiting overall complexity"],"plain_english_summary":"## Customs Undertakings (Penalties) Act 1981\n\n**What this law does:**\nThis Act sets out the financial penalties for businesses or individuals who break a \"Customs undertaking\" — essentially a formal promise made to Australian Customs that you will import a certain amount of goods under a specific tariff category (a government-set tax classification for imported products) within a set timeframe.\n\n**What is a Customs undertaking?**\nWhen businesses apply for special import arrangements or tariff concessions (reduced import taxes), Customs may require them to formally commit to importing a minimum quantity or value of particular goods. This Act is about what happens if they fail to keep that promise.\n\n**Who does this affect?**\nBusinesses or individuals who have made formal undertakings to Australian Customs about importing specific goods. This is a niche commercial/trade law — most everyday Australians will never encounter it.\n\n**The key rule — the penalty:**\n- If you break your Customs undertaking entirely, you must pay a penalty equal to a set percentage (called the \"prescribed percentage\") of the total value of the goods you promised to import.\n- If you *partially* kept your promise (you imported some, but not all, of what you committed to), your penalty is **reduced proportionally**. For example, if you imported 60% of what you promised, your penalty is reduced by 60% — so you only pay 40% of the full penalty amount.\n\n**Who administers this law?**\nThe Comptroller-General of Customs (the head of the Australian Border Force/Customs).\n\n**Geographic note:**\nThis Act does **not** apply to Norfolk Island."},"issue_detection":{"absurdities":[],"contradictions":[]}},"importantCases":[],"_links":{"self":"/api/acts/customs-undertakings-penalties-act-1981","history":"/api/acts/customs-undertakings-penalties-act-1981/history","analysis":"/api/acts/customs-undertakings-penalties-act-1981/analysis","conflicts":"/api/acts/customs-undertakings-penalties-act-1981/conflicts","importantCases":"/api/acts/customs-undertakings-penalties-act-1981/important-cases","documents":"/api/acts/customs-undertakings-penalties-act-1981/documents"}}