Document ID: chunk:federal_register_of_legislation:F2021C00601:reg:14:p1
Version: federal_register_of_legislation:F2021C00601
Segment Type: reg
Provision Reference: reg 14 (pt 1/2)
Character Range: 15661–18705

14  Entering into a trusted trader agreement

        (1) For paragraph 179(1)(b) of the Act, this section prescribes the matters that the Comptroller‑General of Customs must consider when deciding whether to enter into a trusted trader agreement with an entity nominated under section 176B of the Act.

       Risks of entering into agreement with entity

        (2) The Comptroller‑General of Customs must consider the risks associated with entering into a trusted trader agreement with the entity, including any risks to the following:
           (a) the Commonwealth;
           (b) the security of the entity's international supply chain;
           (c) the objectives or the administration of the Australian Trusted Trader Programme.

        (3) If the entity has had a trusted trader agreement terminated under section 178A of the Act in the 3 years before the entity's current nomination under section 176B of the Act, the Comptroller‑General of Customs must consider the reasons for the termination.

       Compliance with Customs‑related laws

        (4) The Comptroller‑General of Customs must:
           (a) consider whether the entity has satisfactorily complied with Customs‑related laws at all times from the time that is 2 years before the entity's nomination under section 176B of the Act; and
           (b) in so doing, consider the matters mentioned in subsection 12(2) in relation to such compliance.

       Offence history

        (5) If a person covered by subsection (6) has been, in the previous 10 years, convicted of an offence against a Customs‑related law, or against another law of the Commonwealth, or a law of a State or Territory, the Comptroller‑General of Customs must consider whether there may be a risk to the following arising from the actions for which the person was convicted:
           (a) the entity's international supply chain;
           (b) the ability of a person having a role in relation to the management or control of the entity's international supply chain to effectively undertake that role.

        (6) The following persons are covered by this subsection:
           (a) the entity;

           (b) if the entity is a body corporate—each director;
           (c) if the entity is a partnership—each partner;
           (d) if the entity is a trust, or a trustee of a trust—each trustee of the trust;
           (e) a person employed or contracted by the entity (or by a contractor of the entity) to undertake an activity that forms part of the entity's international supply chain, if the Comptroller‑General of Customs considers that the person ought to be covered by this subsection in consideration of the risks to which subsection (2) applies.

       Financial management

        (7) The Comptroller‑General of Customs must consider the risks associated with any person involved in the management or control of the entity who has been:
           (a) insolvent; or
           (b) involved in the management or control of an entity that was at any time insolvent.

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