Document ID: chunk:federal_register_of_legislation:F2021C00601:reg:21:p1
Version: federal_register_of_legislation:F2021C00601
Segment Type: reg
Provision Reference: reg 21 (pt 1/2)
Character Range: 27622–30683

21  Variation or termination

       Application of this section

        (1) This section applies if the Comptroller‑General of Customs proposes to make a decision to vary or terminate an entity's trusted trader agreement under subsection 178A(1) of the Act because the Comptroller‑General reasonably believes that the entity has not complied, or is not complying, with:
           (a) a condition prescribed by this instrument; or
           (b) any term or condition specified in the agreement.

            Note: The Comptroller‑General of Customs may also suspend the agreement, with immediate effect, under section 22 of this instrument.

       Show cause notice required

        (2) Before making the decision, the Comptroller‑General of Customs must give the entity a written notice (a show cause notice) that:
           (a) states that the Comptroller‑General of Customs proposes to vary or terminate the entity's trusted trader agreement under subsection 178A(1) of the Act; and
           (b) states the reasons for the proposed decision; and
           (c) invites the entity to respond in writing within 10 business days, or a longer period stated in the notice, to show cause why the agreement should not be varied or terminated as proposed; and
           (d) includes a summary of the effect of section 178A of the Act and of this section.

       Matters to be considered when making decision

        (3) In deciding whether to vary or terminate the agreement after the show cause notice has been given, the Comptroller‑General of Customs must consider matters including (but not limited to) the following:
           (a) any response by the entity to the show cause notice received within the period stated in the notice;
           (b) the extent and degree of the non‑compliance referred to in subsection (1);
           (c) any disclosure by the entity to the Department of that non‑compliance;
           (d) whether that non‑compliance was for reasons beyond the entity's control;
           (e) any action taken, or proposed to be taken, by the entity to prevent or remedy that non‑compliance;
           (f) any action taken, or proposed to be taken, by the entity to prevent further non‑compliance of a similar nature.

       Notice of decision

        (4) Within the applicable period under subsection (5), the Comptroller‑General of Customs must give the entity:
           (a) written notice of a decision to vary or terminate the agreement, and the reasons for the decision; or
           (b) written notice of a decision not to vary or terminate the agreement.

            Note: A decision to vary or terminate a trusted trader agreement is reviewable by the Administrative Appeals Tribunal (see paragraph 273GA(1)(je) of the Act). The notice under paragraph (a) must include information about review of the decision by the Administrative Appeals Tribunal (see section 273K of the Act).

        (5) For subsection (4), the applicable period is:
           (a) if the entity responds to the show cause notice within the