DAFF charges from 1 July - deferment on SAC charges : Call to review e-commerce cargo reporting & cost recovery

Monday, June 17, 2024

The following notice serves as a reminder of increases in Biosecurity charges from 1 July 2024, implementation of the Self-Assessment Clearance (SAC) charge from 1 October 2024 and calls for a broader review of e-commerce cargo reporting and cost recovery charges. 

BIOSECURITY AND IMPORT FOOD REGULATORY ACTIVITY – FEES AND CHARGES FROM 1 JULY 2024
 
As outlined in our member notice from 19 April 2024, the Department of Agriculture, Fisheries and Forestry (DAFF) is increasing fees and charges for biosecurity and imported food regulatory activities from 1 July 2024 including:

Full Import Declaration (FID)  - Air - increasing from $43.00 to $45.00 per FID
Full Import Declaration (FID) - Sea - increasing from $63.00 to $66.00 per FID

Fee for service – inspection (including virtual inspections), examination, document assessment, analysis, diagnostic activity, clearance of cargo, treatment, audit, supervision, training

In office fee during ordinary hours  (per 15 mins)  increasing from $37.00 to $39.00
Out office fee during ordinary hours (per 15 mins) increasing from $62.00 to $65.00

Fees and charges for biosecurity regulatory activity from 1 July 2024
Fees and charges for imported food regulatory activity from 1 July 2024
  
E-COMMERCE CARGO REPORTER BIOSECURITY PROTECTION LEVY – DEFERMENT OF NEW CHARGE UNTIL 1 OCTOBER 2024
 
As outlined in our member notice from 11 June 2024, DAFF has responded to the Freight & Trade Alliance (FTA) advocacy for deferred implementation of the Biosecurity Protection Levy (BPL) on low value goods from 1 July 2024 with the new fee on Self-Assessment Clearances (SACs) to be collected from 1 October 2024.
 
CALL FOR A LEVEL PLAYING FIELD
 
In parallel to achieving the outcome for a delayed implementation, FTA has also responded to calls from members for a 'level-playing field' between cargo and postal services.
 
By way of background, prior to the introduction of the Integrated Cargo Systems (ICS) on 12 October 2025, imported cargo under the value of $250 would be "screened free" by Customs officers attracting an associated cost recovery fee. Post ICS implementation, the federal government of the day changed the low value de minimis to $1,000 and removed the transactional cost recovery charge to closer align cargo and postal services.  
 
In the contemporary operating environment, post does not have the same cargo reporting obligations as those required for commercial logistics providers. Instead, DAFF and Australian Border Force (ABF) officers, dogs and x-ray solutions physically screen cargo. As a result, post incurs an annual biosecurity cost recovery charge of $15.4m per annum.
 
FTA has sought detail from DAFF in terms of how many e-commerce consignments are processed through the post.
 
On 30 May 2024, FTA delivered a presentation at the 37th Plant Industry Forum hosted by Plant Health Australia where The Hon. David Littleproud MP the Leader of the Federal National Party stated post handles 144 million import packages annually. With increasing trade volume during the last two years since he was the Minister for Agriculture, this cost recovery is likely to conservatively equate to 10 cents per consignment.

In contrast, the proposed BPL on cargo reporters is to be set at 36 cents per consignment.


 
Concerns exist that this new cost recovery arrangement will steer e-commerce volume from commercial logistics operators to the postal system where no data exists for border or biosecurity assessment. Increased postal volume will place a further significant strain on limited DAFF and ABF resources, potentially generating an unintended consequence of increasing biosecurity and community protection risks through a channel without the same level of cargo reporting obligations.
 
There is growing momentum from industry bodies suggesting the BPL should be collected via the vendor model where the Australian Taxation Office (ATO) administers the collection of the goods and services tax (GST) regardless of whether goods are imported as cargo or via the post.
 
FTA has escalated the need for a level playing field to DAFF executive, the Minister's office and formalised this matter at last week's Sustainable Biosecurity Funding Advisory Panel meeting.
 
TIME FOR A FUNDAMENTAL CHANGE

 
The National Committee on Trade Facilitation (NCTF) meeting on 5 June 20024 had an extensive focus on e-commerce, discussing the opportunities to better meet the needs of government agencies and industry. Discussion was led by Bryce Biegen, the author of thesis titled The E-Commerce Revolution & Cross-Border Goods Clearance: Time for Fundamental Change? (facilitated by Charles Sturt University).  
 
FTA contributed to the discussion by stating alternate cargo reporting solutions for low value commodities could improve data quality and importantly, remove volume and provide longevity to the aging ICS. Furthermore, improved data quality should be rewarded with a differential cost recovery fee incentivising trusted and efficient reporting mechanisms. FTA also supported a broader industry call for greater transparency on the collection and use of import cost recovery charges.
 
FTA will continue to keep members up to date on these important developments.

Paul Zalai - Director FTA | Secretariat APSA | Director GSF