86Suspension of warehouse licences

86  Suspension of warehouse licences  (1) The Comptroller‑General of Customs may give a notice under subsection (1AA) to the holder of a warehouse licence if the Comptroller‑General has reasonable grounds for believing that:  (a) one or more of the matters mentioned in any of paragraphs 86(1AC)(a) to (g) exists for each warehouse covered by the licence (whether or not the one or more matters existing for each warehouse are the same); or  (c) where the licence is held by a natural person—that person is not a fit and proper person to hold a warehouse licence; or  (d) where the licence is held by a partnership—a member of the partnership is not a fit and proper person to be a member of a partnership holding a warehouse licence; or  (fa) where the licence is held by a company:  (i) the company is not a fit and proper company to hold a warehouse licence; or  (ii) a director of the company is not a fit and proper person to be a director of a company holding a warehouse licence; or  (g) a condition, other than a condition that relates to at least one, but not all, of the warehouses covered by the licence, to which the licence is subject has not been complied with; or  (h) an amount of the warehouse licence charge payable in respect of the grant of the licence remains unpaid more than 28 days after the day the amount was due to be paid; or it otherwise appears to him or her to be necessary for the protection of the revenue, or for the purpose of ensuring compliance with the Customs Acts, any other law of the Commonwealth prescribed by the regulations or a law of a State or Territory prescribed by the regulations, to give the notice.  (1AA) A notice under this subsection:  (a) must state that, if the licence holder wishes to prevent the cancellation of the licence, the holder may, within 7 days after the day on which the notice was given, give to the Comptroller‑General of Customs at an address specified in the notice a written statement showing cause why the licence should not be cancelled; and  (aa) must state the reasons for the giving of the notice; and  (b) may, if it appears to the Comptroller‑General of Customs to be necessary to do so:  (ii) for ensuring compliance with the Customs Acts, any other law of the Commonwealth prescribed by the regulations, or a law of a State or Territory prescribed by the regulations;   state that the licence is suspended.  (1AB) If a notice under subsection (1AA) states that a licence is suspended, the licence is suspended on and from the giving of the notice.  (1AC) If a warehouse licence covers more than one warehouse, the Comptroller‑General of Customs may give a notice under subsection (1AD) to the licence holder if the Comptroller‑General has reasonable grounds for believing that:  (a) the physical security of a warehouse covered by the licence is no longer adequate having regard to the matters referred to in paragraph 81(1A)(c); or  (b) the plant and equipment used in a warehouse covered by the licence are such that the protection of the revenue in relation to goods in the warehouse is inadequate; or  (c) a person participating in the management or control of, or in the operations carried out at, a warehouse covered by the licence (whether or not the person is present at the warehouse) is not a fit and proper person to so participate; or  (e) a condition to which the licence is subject that relates to a warehouse covered by the licence has not been complied with; or  (f) the licence holder has not, for a period of at least 3 years, warehoused excise‑equivalent goods at a warehouse covered by the licence; or  (g) it is appropriate in all the circumstances to vary the licence to no longer cover a particular warehouse, having regard to the matters covered by subsection (2).  (1AD) A notice under this subsection:  (a) must state that, if the licence holder wants the warehouse licence to continue to cover the warehouse, the licence holder may, within 7 days after the day on which the notice was given, give to the Comptroller‑General of Customs at an address specified in the notice a written statement showing cause why the warehouse should continue to be covered by the licence; and  (aa) must state the reasons for the giving of the notice; and  (b) may, if it appears to the Comptroller‑General of Customs to be necessary to do so:  (ii) for ensuring compliance with the Customs Acts, any other law of the Commonwealth prescribed by the regulations or a law of a State or Territory prescribed by the regulations;   state that the licence is suspended in relation to the warehouse.  (1AE) If a notice under subsection (1AD) states that a licence is suspended in relation to a warehouse, the licence is suspended in relation to the warehouse on and from the giving of the notice.  (1A) The Comptroller‑General of Customs must, in considering whether a person is a fit and proper person for the purposes of paragraph (1)(c) or (d), subparagraph (1)(fa)(ii) or paragraph (1AC)(c), have regard to:  (a) any conviction of the person of an offence against this Act committed:  (i) where the licence has not been renewed—after the grant of the licence or within 10 years immediately preceding the making of the application for the licence; and  (ii) if the licence has been renewed on one or more occasions—after the latest renewal or within 10 years immediately before the latest renewal; and  (b) any conviction of the person of an offence under a law of the Commonwealth, of a State or of a Territory that is punishable by imprisonment for a period of one year or longer, being an offence committed:  (i) where the licence has not been renewed—after the grant of the licence or within 10 years immediately preceding the making of the application for the licence; and  (ii) if the licence has been renewed on one or more occasions—after the latest renewal or within 10 years immediately before the latest renewal; and  (c) whether the person is an undischarged bankrupt; and  (d) whether the person has been refused a transport security identification card, or has had such a card suspended or cancelled:  (i) where the licence has not been renewed—after the grant of the licence or within 10 years immediately preceding the making of the application for the licence; and  (ii) if the licence has been renewed on one or more occasions—after the latest renewal or within 10 years immediately before the latest renewal.  (1B) The Comptroller‑General of Customs must, in considering whether a company is a fit and proper company for the purposes of subparagraph (1)(fa)(i) have regard, in relation to the company, to:  (a) any conviction of the company of an offence against this Act that was:  (i) where the licence has not been renewed—committed after the grant of the licence; or  (ii) if the licence has been renewed on one or more occasions—committed after the latest renewal; or  (iv) committed:  (A) where the licence has not been renewed—within 10 years immediately preceding the making of the application for the licence; and  (B) if the licence has been renewed on one or more occasions—within 10 years immediately before the latest renewal;   and at a time when a person who is a director, officer or shareholder of the company was a director, officer or shareholder of the company; and  (b) any conviction of the company of an offence under a law of the Commonwealth, of a State or of a Territory that is punishable by a fine of $5,000 or more, being an offence that was:  (i) where the licence has not been renewed—committed after the grant of the licence; or  (ii) if the licence has been renewed on one or more occasions—committed after the latest renewal; or  (iv) committed:  (A) where the licence has not been renewed—within 10 years immediately preceding the making of the application for the licence; and  (B) if the licence has been renewed on one or more occasions—within 10 years immediately before the latest renewal;   and at a time when a person who is a director, officer or shareholder of the company was a director, officer or shareholder of the company; and  (c) the matters mentioned in paragraphs 81(3)(c) and (e).  (2) For the purposes of paragraph (1AC)(g), the matters covered by this subsection are the following:  (a) if the licence is held by a natural person—the experience of the following in operations that are performed upon, or in relation to, goods at a warehouse covered by the licence:  (i) the holder;  (ii) each person, known to the Comptroller‑General of Customs, who is participating in the management or control of, or in the operations carried out at, the warehouse (whether or not the person is present at the warehouse);  (b) if the licence is held by a partnership—the experience of the following in operations that are performed upon, or in relation to, goods at a warehouse covered by the licence:  (ii) each person, known to the Comptroller‑General of Customs, who is participating in the management or control of, or in the operations carried out at, the warehouse (whether or not the person is present at the warehouse);  (c) if the licence is held by a company—the experience of the following in operations that are performed upon, or in relation to, goods at a warehouse covered by the licence:  (iii) each person, known to the Comptroller‑General of Customs, who is participating in the management or control of, or in the operations carried out at, the warehouse (whether or not the person is present at the warehouse);  (d) in any case—the holder’s operating procedures or processes that apply at a warehouse covered by the licence in relation to goods at the warehouse.  (5) If a warehouse licence is suspended under subsection (1AB) or (1AE), the Comptroller‑General of Customs:  (a) may at any time revoke the suspension; and  (b) must revoke the suspension if, within 28 days after the day on which the licence was suspended:  (i) for a suspension under subsection (1AB)—the licence is not cancelled; or  (ii) for a suspension under subsection (1AE)—the licence is not varied to no longer cover the warehouse to which the suspension relates.  (6) Subject to subsection (7), during a period in which a warehouse licence is suspended under subsection (1AB) or (1AE) in relation to a warehouse, a person must not use the warehouse with the intention of warehousing goods.  (7) During a period in which a warehouse licence is suspended under subsection (1AB) or (1AE) in relation to a warehouse, a Collector may:  (a) permit goods to be placed in the warehouse; and  (b) permit a process to be carried out in the warehouse; and  (c) permit the removal of goods from the warehouse, including the removal of goods to another warehouse; and  (d) by notice given to the owner of goods in the warehouse, require the owner to remove his or her goods to another warehouse approved by the Collector; and  (e) take such control of the warehouse or all or any goods in the warehouse as may be necessary for the protection of the revenue or for ensuring compliance with the Customs Acts, any other law of the Commonwealth prescribed by the regulations or a law of a State or Territory prescribed by the regulations; and  (f) by notice in writing to the holder of the licence, require him or her to pay to the Commonwealth in respect of the services of officers required as the result of the suspension, including services relating to the enforcement of the suspension, the supervision of activities in relation to the warehouse permitted by a Collector, the stocktaking of goods in the warehouse or the reconciliation of records relating to such goods, such fee as the Comptroller‑General of Customs determines, having regard to the cost of the services. Note: See section 102AA for the ways in which the notice may be given to the owner of goods or the holder of the licence.  (8) If an amount that the holder of a licence is required to pay in accordance with a notice under paragraph (7)(f) is not paid, that amount may be recovered as a debt due to the Commonwealth by action in a court of competent jurisdiction.