Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

When we discussed this previously, I was going through the Bill section by section. I had completed section 10 and was about to comment on section 12, so I will recommence at that point.

Section 12 provides for the control by customs of persons entering or leaving the State and of their baggage. The section also provides for the operation of a red-green channel system, with which Deputies will be well familiar. The blue channel is, of course, for persons travelling within the EU and does not need to be legislated for here. The section also provides for an offence for contravention of the provisions of the section and for the penalty that applies.

Section 13 provides for the continuation of the existing control by customs of postal traffic into and out of the State. The section provides for an offence for contravention of the provisions of the section and for the penalty that applies.

Sections 14 to 24 deal with customs offences, penalties and court proceedings. Section 14 provides for offences relating to improper import or export of goods, that is to say, without payment of any duty or contrary to a prohibition or restriction on their import or export. The section reflects provisions in current legislation. The section also provides for the penalties that apply.

Section 15 provides for a number of other customs-related offences, primarily related to non-compliance with a requirement imposed by a customs officer performing his or her duties, or interference with customs property or equipment, or adapting conveyances for smuggling purposes. The section also provides for the penalties that apply.

Section 16 provides for determining whether a customs offence is to be tried summarily or on indictment. The key to this determination is the value of the goods which are the subject of improper import or export.

Section 17 provides for forfeiture of goods which have been illegally imported or attempted to be illegally exported, that is to say, without payment of duty or contrary to a prohibition or restriction. Any conveyances or any goods which are packed with or used to conceal goods liable to forfeiture will themselves be liable to forfeiture.

Section 18 provides for a notice of seizure to be given to the owner of goods, where the goods are seized by a customs officer. The section is a restatement and modernisation of existing notice of seizure provisions.

Section 19 provides for a notice of claim to be made by a person who claims that something seized as liable to forfeiture was not so liable. The section is a restatement and modernisation of existing notice of claim provisions.

Section 20 provides for court proceedings for condemnation of seized goods as forfeited. The section specifies the appropriate court of jurisdiction for such proceedings and also provides for the course to be followed in such proceedings.

Section 21 provides for the rules for court proceedings in regard to customs offences.

Section 22 covers the question of damages and costs in civil or criminal cases where judgment is given against a Revenue official as the defendant on account of the seizing or detention of any thing. No change of substance is involved.

Section 23 provides for presumptions and onus of proof in proceedings under the Customs Acts, that is to say, where certain things may be presumed to be true until the contrary is proven. The section represents no change to the current law.

Section 24 provides that a person may be liable to other penalties in respect of the same offence under either customs legislation or other legislation.

Sections 25 to 35 deal with customs powers. Section 25 provides for powers to enter, inspect and patrol certain places for a customs officer, and any person assisting a customs officer, without a court warrant. The power to patrol in this way along the coast and the land frontier, and in customs ports and airports and other approved places, is an essential control mechanism to combat smuggling.

Section 26 provides for powers to stop vessels, aircraft, vehicles and other means of transport in different circumstances. The possibility of stopping conveyances in this way is an essential control requirement to ensure compliance with the customs Acts and to prevent smuggling.

Section 27 provides for powers to board and search conveyances that are entering or leaving the State, as well as away from ports and airports and the land frontier.

Section 28 provides for the power to examine goods under customs control. Examination of declared goods is a standard part of customs controls and a clear requirement under Community customs rules.

Section 29 provides powers to a customs officer, and any person assisting the officer, to enter and search a specified premises or land under a search warrant issued by a judge of the District Court, and to seize and detain anything found in the course of the search which might be required as evidence in proceedings for an offence under the Customs Acts or any other enactment.

Section 30 provides for the search of persons in certain circumstances. This power is a necessary control provision in regard to smuggling. The section provides for several safeguards in regard to the search of the person.

Section 31 provides for the power to stop and question a person entering or leaving the State as regards their journey and their baggage and, if necessary, to search their baggage. Stopping and questioning persons entering or leaving the State, and examining their baggage where appropriate, are essential powers to prevent smuggling.

Section 32 provides for the power to arrest without warrant a person who a customs officer suspects is committing, or has committed, an offence under section 14 or section 15 of the Bill, or where the person has obstructed or assaulted a customs officer.

Section 33 provides for the power to detain goods and conveyances being imported or exported, pending the outcome of inquiries and investigations into whether the goods in question are in compliance with the Customs Acts.

Section 34 provides for the power to seize any goods and conveyances that are liable to forfeiture under the Customs Acts.

Section 35 provides for the power to deal with seizures, whether before or after the goods have been condemned by the courts.

Sections 36 to 39 of the Bill deal with general customs administrative matters. Most of the sections are standard provisions in legislation relating to the Revenue Commissioners. Section 36 provides that the duties of customs are under the care and management of the Revenue Commissioners. It also confirms that the Commissioners are the customs authority for the purpose of the Community Customs Code.

Section 37 provides that the Revenue Commissioners may authorise customs officers to carry out various functions deemed necessary by the Commissioners.

Section 38 provides for the delegation of certain powers, functions or duties by the Revenue Commissioners to an officer of the Commissioners.

Section 39 provides for the making of regulations by the Revenue Commissioners for the purposes of giving effect to the Customs Act and of giving full effect to the Community Customs Code. The section also provides that the Minister for Finance may make regulations specifying the customs controls to apply in regard to the import or export of any goods by land. The section makes it an offence to contravene any provision of any regulation made under the section and provides for the penalty that applies.

Sections 40 to 42 of the Bill deal with EU and international customs obligations. Section 40 provides for a system of penalties for contravention of certain customs rules and procedures. These penalties were first introduced in 2011 to ensure uniform application of the EU customs rules. The opportunity is now being taken to broaden the application of such penalties to all areas of customs legislation, as the existing regime of monetary penalties had become hopelessly outdated with the passing of time and had, as a result, fallen into disuse as an effective tool for ensuring compliance with customs requirements.

Section 41 provides for the continuation of the force of law in respect of the Naples II Convention, which governs mutual assistance between EU customs authorities in regard to criminal matters. The Naples II Convention was originally given the force of law by the Customs and Excise (Mutual Assistance) Act 2001.

The section also provides for the application by Ireland of the 2009 EU Council decision on the use of information technology for customs purposes. This decision establishes a joint computerised information system for customs to assist in preventing, investigating and prosecuting serious contraventions of national laws by making information available more rapidly, thereby increasing the effectiveness of the co-operation and control procedures of the customs administrations of the member states. This EU decision replaces an earlier EU convention, which was originally given the force of law in the Customs and Excise (Mutual Assistance) Act 2001. The 2001 Act is among those being repealed by the Customs Bill.

11 o’clock

Section 42 provides for the ratification by Ireland of the EU Council convention of 10 May 2009 on centralised customs clearance, concerning the allocation of national collection costs when customs duties are made available to the EU budget. The convention covers the situation where the customs duty is collected in one member state but the goods are physically imported into another member state. This arrangement has only been introduced relatively recently, as a trade facilitation measure. In such circumstances, both member states incur costs but only one member state has collected the customs duty. The convention provides for the sharing by the two member states, on a 50:50 basis, of the collection fee. As it happens, Ireland is currently a net beneficiary under these sharing arrangements and Deputies might like to note that the benefit of centralised clearance to Ireland will be in the region of €20 million for the full year 2014.

Sections 43 to 48 of the Bill provide for the appeal procedures in regard to customs decisions and assessments of customs duty. As I stated earlier, these sections are a restatement of the existing legislation. Section 49 of the Bill deals with prohibited or restricted goods. The section is, in effect, a restatement and modernisation of existing legislation concerning the application of the Customs Acts to prohibited or restricted goods being imported into, or exported from, the State. At this stage, a number of matters are under consideration in the Bill that I may bring forward on Committee Stage. I will, of course, also give consideration to any constructive suggestions put forward by Deputies during our debate.

See this speech in context