Changes to cost recovery charges for Biosecurity approved arrangements

Freight & Trade Alliance (FTA) has been pursuing cost recovery reforms since last year's introduction of the blanket $2900 approved arrangement fee as administered by the Department of Agriculture & Water Resources (DAWR).
 
We have received  a favourable response and would like to thank the many FTA members who assisted in our argument to DAWR during our face-to-face forums throughout the year and associated correspondence.
 
DAWR has today released Industry Notices 108 - 2017 and 109 - 2017 outlining proposed changes including a $500 annual fee for businesses solely  involved in customs clearance activities with a capped price for those with several non-broker approved arrangements sites remaining at $2900.
 
While we note that this is a significantly improved outcome, our position remains that there should be a $0 annual fee for the operators of broker class 19.1 and 19.2 approved arrangements with full cost recovery on a per entry basis. This will assist supply chain participants in effectively passing on cost recovery costs to importers at a net rate as charged by DAWR.
 
The proposed charges for broker class (19.1 and 19.2) approved arrangement participants include:
 

• Participants will pay an annual charge of $500 in addition to an Automatic Entry Processing (AEP) charge of $18 per entry.  The annual charge ensures brokers not participating in the AEP scheme still contribute to the cost of operating the broker class approved arrangements.

• Participants that also operate a non-broker class of approved arrangement will pay both the higher non-broker charge totalling $2,900 in addition to an Automatic Entry Processing (AEP) charge of $18 per entry.

 
The proposed new changes for non-brker approved arrangements include:
 

• Biosecurity industry participants with one approved arrangement site will continue to pay an annual charge per ABN, however, this will reduce from $2,900 down to $2,500.

• Biosecurity industry participants that operate more than one approved arrangement site will be subject to the $2,500 charge but will also pay an additional annual charge of $400, no matter how many additional sites they operate (i.e. total annual charge will not exceed $2,900 per ABN).

• Should a biosecurity industry participant operate both a non-broker class of approved arrangement and a broker class, in addition to the annual $2,900 charge, they will also be required to pay an Automatic Entry Processing (AEP) charge of $18 per entry.

 
FTA has also requested more detail and transparency in the calculation before giving the quantum of the fees any form of endorsement.
 
As outlined in the official notices, the consultation process will conclude 5PM (AEDT) Friday 5 January 2018.  Feedback on the proposed changes to approved arrangement charging can be directed to costrecovery@agriculture.gov.au.
 
Please also feel free to send your feedback to Tony Nikro tnikro@ftalliance.com.au for incorporation into the final FTA submission.

Paul Zalai - FTA / APSA