Cost Recovery on Self Assessed Clearances (SACs) Commencing 1 July 2024 FTA advocacy for a deferred implementation

As members would be aware from previous updates, the Department of Agriculture, Fisheries and Forestry (DAFF) will administer a new cost recovery charge for biosecurity clearance of declared low value goods (valued at AUD $1,000 or less ) being brought into Australia by air or sea.

Any entity (the reporting party) lodging a short form, long form, or cargo report Self-Assessment Clearance (SAC) declaration into the Integrated Cargo System (ICS) will be charged a fee estimated to be 36 cents per declaration for the 2024-25 financial year.

The charge is to be paid directly to DAFF on a quarterly in arrears basis – further detail is available HERE

Freight & Trade Alliance (FTA) has maintained an ongoing focus on the new arrangements (scheduled to commence 1 July 2024) at a policy level; specifically consulting with members on the broader principles with a goal is to evolve towards an incentivised arrangement, where cargo reporters that take measures to mitigate biosecurity risks pay a differential rate.
 
In parallel with this broader policy approach, FTA met earlier this week with DAFF representatives to discuss the SAC cost recovery implementation.
 
This meeting resulted in many unanswered questions including:
 

• Quantum of the cost recovery fee: likely to be 36 cents per declaration; yet to be confirmed.
• Report details: it appears as though DAFF will provide the quantum of SACs declared for the quarter and that this is to be verified by the reporting party to then trigger the invoicing process; there is no clarity on what data will be included in the report provided by DAFF; concerns whether external users of ICS will be able to generate meaningful reports in appropriate formats.
• Variables: no clarity exists in terms of accounting for transhipments, withdrawals, or split shipments; no official protocols established for dispute resolution.
• Testing: end-to-end process yet to be tested.
• Official communications: formal notice is required to prescribe implementation detail and to assist reporting parties in communications to customers.

 
These issues represent just a small sample of the concerns requiring clarification.
 
With the scheme set to start in little over a month, FTA has expressed serious concerns that members need to implement systems, procedural changes and inform their clients on the confirmed details of this scheme as a matter of urgency.. 
 
Given the tight timeframe to address these matters, FTA has recommended to DAFF executive that the SAC cost recovery implementation be deferred beyond 1 July 2024 to allow for a well-managed and tested implementation.
 
In preparation for a follow up meeting next week, DAFF has requested a consolidated list of concerns to be tabled.
 
We strongly encourage members to provide any feedback direct to me at smilici@FTAlliance.com.au by 5PM AEST, Monday 27 May 2024