The Australian Customs and Border Protection Service (ACBPS) have released details in relation the finalisation of the Australian Government's Joint Review of Border Fees, Charges and Taxes ... read more
Winners are the express courier and internet trade sectors.
Losers are commercial importers who continue to carry the bulk of the cost recovery burden and now face a price increase on air and post import declarations.
Whilst the rest of industry remained relatively untouched, customs brokers face an astonishing 100% grant and renewal fee increase.
In summary, (effective 1 January 2016) the main changes are:
alignment of air / post / sea Nature 10 / 20 import processing charges for consignments > $1,000 - <$10,000 – new price $50 per import declaration (submitted via the ICS)
alignment of air / post / sea Nature 10 / 20 import processing charges for consignments >$10,000 – new price $152 per import declaration (submitted via the ICS)
introduction of a new charge for Sec 79 warehouse licence variations - $300
introduction of a new charge for nominee broker's licence application - $130
introduction of a new charge for Sole Trader or Corporate broker's licence application - $1300
increase of nominee broker's licence grant and renewal – from $120 (every 3 years) to $240 (every 3 years)
increase of Sole Trader or Corporate broker's licence grant and renewal – from $1200 (every 3 years) to $2400 (every 3 years)
Below is a summary of the Freight & Trade Alliance (FTA) response to the ACBPS:
We commend the ACBPS for accepting our recommendation of continuing use of the import declaration as the primary mechanism to collect charges on 'commercial' import consignments. We noted an alternate industry view that charges should be collected from all sectors of commerce that provide cargo reports (shipping lines, airlines, freight forwarders, terminal operators and depot operators). In our view the ACBPS policy has avoided a scenario whereby charges would have 'cascaded' through the supply chain significantly increasing the ultimate cost recovery fee payable by importers.
There has been no reference to the much anticipated import processing charge differential for entities participating in the Trusted Trader Programme and the potential use of 'periodic declarations'. Perhaps this will be implemented at another stage of the phased programme implementation – if so, how will the government recover the shortfall in import processing charge revenue?
Initial ACBPS discussion papers highlighted the need for statutory reporting reform (including the need for differential fee arrangements) in line with our ongoing advocacy on the 'assembly order' issue to support contemporary business practices "a model exists where importers now pack multiple good types, from multiple suppliers into a single consignment and ship this to a destination in Australia. Previously, these businesses would have received goods in Australia from multiple suppliers, and go through a re-packaging process once the goods arrived in Australia." – this issue does not seem to have been addressed as a part of the review.
Does this mean that the Trusted Trader Programme and assembly order reforms will eventually be the catalyst for yet another review?
Customs brokers have been stung with a doubling of licensing grants and renewals. The FTA position was that whilst a 'reasonable' increase may be warranted (pending further transparency of costs to be recovered) a need exists to examine whether automation and online access for industry to report licensing changes would reduce ongoing costs. Was any consideration given to this option? As it stands, it looks like the review has unfairly added costs to a targeted sector of commerce and directly opposes the government's mantra to 'reduce red tape'.
We will keep FTA subscribers up to date on feedback and the results of our ongoing engagement with ACBPS, government and key industry stakeholders in an aim for improved operational outcomes.
Paul Zalai - FTA