Freight & Trade Alliance (FTA) members have sought our advice on a recently released "Recommended Guide to Professional Service Fees" that has been circulated among customs brokers.
The guide suggests fees for completing Customs' declarations (import and export) and a myriad of service line items - the guide includes specific price ranges for service activities and suggests charging fixed percentages on credit provided to importers.
Associated correspondence also suggests an alternative approach that as well as the declaration fee, customs brokers may want to include the remainder of charges into an all-encompassing consolidated "Agency and Attendance Fee".
Based on member feedback to-date, we understand such a document is both timely and welcomed by customs brokers however based on preliminary research, FTA advises members to carefully consider the use of this or any similar material. While industry bodies can issue price guidance to its members, it is crucial that businesses set their own prices for goods and services independently. This includes making their own allowances in their pricing for overheads and margins.
It is important that members be aware that by sharing, discussing or agreeing upon prices with other members or competitors they could risk contravening laws relating to:- price fixing;
- anti-competitive contracts, arrangements or understandings; and
- anti-competitive concerted practices
Regardless of any pricing guide, members should not feel any pressure to adopt any particular price, price structure or minimum price.
As members would be well aware from our regular notices, FTA is in regular contact with the Australian Competition and Consumer Commission (ACCC) and it is clear that the regulator is keeping a close watching brief on our sector of commerce.
MAINTAINING COMPLIANCE
As outlined in the FTA Mission Statement our focus remains to increase profitability and business sustainability for members while at all times ensuring that activities are completed with integrity, ensuring compliance with all Australian Competition laws - refer FTA / APSA Competition Compliance Policy
To help answer questions that have arisen since the publication of the professional service fee guide and aligned with the above core values, FTA will include a specific session on competition law as it relates to customs broker practices in our 2020 CPD & CBC Border and Biosecurity Compliance Program events.
Early bird registrations now available |
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