Border and Biosecurity Update

As a part of my new role as Head of Border and Biosecurity for Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA), I joined Paul Zalai for a series of meetings with departmental executives in Canberra from Wednesday 13 to Friday 15 June 2018.

The trip coincided with a formal bi-lateral meeting with representatives from the Australian Border Force and Home affairs and a separate meeting involving other industry colleagues and the Department of Agriculture and Water Resources on the introduction of a new import levy.
 
I was extremely encouraged by the positive reception that we received and I look forward to building on the collaborative arrangement that clearly exists between the Border and Biosecurity departments and FTA / APSA .

Key issues from the meetings are summarised below:
 
Biosecurity
 
The carrot and the stick - details were provided on the new compliance program and the introduction of the Infringement Notice Scheme – on a more encouraging note, there is genuine desire to further enhance Approved Arrangements across all sectors.
 
Border
 
Discussions centred on Business Continuity Plans, training and Integrated Cargo System (ICS) technical issues (which now seem to be rectified) associated with EFT Reports - Notice to Produce Documents, Drawback processing delays were addressed.
 
Licensing

Sec 77G Depot and customs broker licensing issues were also a focus – approximately 65% of corporate and 75% of customs broker licenses have been renewed – reminder that as per detail in DIBP Notice No. 2017/38 all customs broker licenses will expire on 30 June 2018.

It is recommended that renewals are paid, completed and returned as soon as possible to assist with the process - ideally all licence renewals should be completed and lodged no later than 22 June.

NOTE: a renewal received after 29 June will not be processed, resulting in the licence expiring on 30 June.  

Australian Trusted Trader
 
Discussions centred on emerging benefits including duty deferral phases, streamlined cargo reporting, Mutual Recognition Agreements and Certificates of Origin - FTA emphasised the need for a differential Import Processing Charge to benefit importers.
 
Cargo Examination Facility (CEF) Intervention
 
Following the FTA advocacy with the Commonwealth Ombudsman, clarification was sought on what customs brokers can communicate to client importers in terms of Border Holds - proposals were discussed on allowing trusted entities access to information on anticipated cargo release and strategies discussed on alleviating the container detention costs imposed by shipping lines when empty container dehire has been delayed by CEF intervention.
 
Biosecurity Levy
 
Clarification was received that the new levy effective 1 July 2019 is a general taxation with revenue to contribute to consolidated government revenue – FTA is seeking clarification as to the rationale for the tax burden being focussed on containerised and bulk sea cargo import consignments.
 
In terms of collecting the $10.02 per TEU, the position from FTA remains that alternate modelling is required rather than the department's proposal of collecting from stevedores - it is anticipated that stevedores will look to recover this cost via the Vehicle Booking System (VBS) used by transport companies to book time slots for the collection of import containers - if this were to occur, it is again anticipated that transport operators would look to recover this cost with an additional administrative fee to address operational costs and offset negative cash flow implications – likewise, this cost and recovery is likely to cascade down the supply chain with importers ultimately paying an inflated price with the additional impost and complexity of GST payments.
 
FTA recommended that the department consider two alternate models: 

1.     Levy collection on the Full Import Declaration (FID)

The FID is already a collection point for duty, GST, Import Processing Charges and other government imposed charges. It is recommended that the Integrated Cargo System (ICS) have code reinstated to calculate containers per FID to administer the new levy - the benefit of the FID is that costs are usually passed on from customs brokers to importers at a net rate as per costs displayed on the FID. 

2.     Levy collection charged against shipping lines