Import Processing Charge

Freight & Trade Alliance (FTA) has made representations to the Australian Customs and Border Protection Service (ACBPS) in context to reforms to the assembly order (multiple supplier) cargo reporting issue highlighting the many complexities associated with it in terms of systems implications, integration into contemporary commercial practices and meeting statutory reporting outcomes.

The other significant issue emerging from our representation revolved around the impact of any reform affecting the quantum of Import Declarations and therefore, the associated variation in government revenue generated via the Import Processing Charge (IPC) which is charged on a per Import Declaration basis.

This leads to a broader issue relating to the previous Labor government's May 2013 budget recommendation of a "restructure" to the IPC to recover the costs of all import related cargo and trade functions undertaken by the ACBP. FTA is of the view that this approach places an unfair burden on the import sector with a more equitable arrangement being for an appropriate proportion of operating costs to be borne by the Australian taxpayer in line with the ACBPS border and community protection role.

The proposed 1 January 2014 IPC for consignments valued over $10,000 (increasing by $102.60 to $152.60 per sea freight consignment and by $81.90 to $122.10 per airfreight consignment) will place a significant cost burden on importers and will adversely affect cash flow for intermediary Australian logistics service providers.

The Australian retail sector in particular will feel the impact of fee increases as it provides a further commercial advantage to those that purchase goods online from overseas valued under $1000 as they are exempt from paying duty, GST and any form of IPC.

In line with the range of issues outlined above, FTA highly recommended that the ACBPS initiate a review of the IPC charging regime and extensively engage with industry prior to any restructure of current arrangements.