Lloyds List Australia - Licensing Review draft recommendations presented to the Comptroller-General of Customs

Source: https://www.lloydslistaustralia.com.au/lla/blogs/paul-zalai/INDUSTRY-OPINION-Licensing-Review-draft-recommendations-presented-to-the-Comptroller-General-of-Customs-553004.html

Photo: FTA

INDUSTRY OPINION:

A CALL for de-regulation of individual customs brokers by one industry sector appears to have been brushed aside with the Department of Immigration and Border Protection appropriately retaining licensing for this important trade profession.

In fact, the Department's principal recommendation is that licensing be retained for customs brokers, depots and warehouses with the remaining recommendations looking to strengthen and streamline procedures, including:

1. Retention of a licensing regime for customs brokers, depots and warehouses;
2. Alignment with other agencies;
3. Reducing duplication on fit and proper checks;
4. Electronic lodgement of information;
5. Review of application and documentation requirements;
6. Alignment of licence renewal processes;
7. Retention of 60 days for decisions on licence applications;
8. Alignment compliance and auditing;
9. Review for permissions for movement of goods;
10. Continuing existing licence categories for customs brokers;
11. National Customs Brokers Licensing Advisory Committee (NCBLAC) revised powers and industry appointee process to have a wider reach;
12. Licences to allow coverage of multiple facilities;
13. Use of bonds, securities and indemnities;
14. Review of licence conditions; and
15. Maintain integrity of licensing regimes.  

It looks as though streamlined application and compliance measures will be implemented and this will certainly be welcomed by industry. The sleeper may be recommendation 13 - "the Department should retain the right to use bonds, securities and indemnities".

Freight & Trade Alliance (FTA) recommended it its formal submission that instead of the mandatory imposition of a financial security for Sec 77G Depots, that the Department consider whether the establishment is insured for duty imposed by authorities for breach of regulations. 

Strict licensing requirements are justifiably in place for depots and warehouses, yet there continues to be little, if any, rigour placed on transport operators that physically handle under bond cargo between secure premises. It remains possible that recommendation 9: "review for permissions for movement of goods" will align the department's expectations on transport operators on inbound cargo to that of the secure handling of export air cargo as administered by the Office of Transport Security (OTS).

While merit is seen in the 15 recommendations, the concept of a "provisional" customs broker licence and other key recommendations put forward by industry did not rate a mention. Furthermore, it remains difficult to understand the implications of the reforms as limited explanatory material has been provided. Disappointingly, and following an extensive exercise lasting over 18 months, the department has not sought final industry comment on the draft recommendations.

We understand that the final report was submitted to the Comptroller-General of Customs late last week. In order to complete the industry engagement process, we trust that the department's leader will release the review in its entirety and seek further industry comment prior to implementation of the findings.

Paul Zalai is an advocate for the Australian Freight and Trade sectors
www.FTAlliance.com.au