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INDUSTRY OPINION:
Paul Zalai - Sydney
pzalai@FTAlliance.com.au
July 10 2017 - 10:30:00
THE Australian Border Force (ABF) released its June 2017 Compliance Goods Update focussing on Asbestos, licensing review, Anti-Dumping, ChAFTA, Tariff Advice System, case studies, compliance results and Sec 77G Depot compliance.
It is highly recommended that this informative document be circulated amongst management, operational staff, suppliers and clients.
Section 77G Depot Compliance
Licenced depots are regulated to safely store and deal with goods under Customs' control.
As a part of the ABF "compliance continuum" the Infringement Notice Scheme (INS) is available to officers as an alternative to prosecutions allowing for "on the spot fines". Regulations prescribe the maximum fine being 25% of a court penalty (cap of 15 units for an individual and 75 units for a company).
It is important to note that effective from 1 July 2017, a penalty unit has increased from $180 to $210, this being a 15%+ increase in the quantum of fines that can be issued by the ABF.
Deliveries Without Authority
It is staggering to note that during the reported year to date, 1 July 2016 to May 31 2017, in excess of $1.5 million in fines have been issued for breaches of Sec 33 of the Customs Act.
This is clearly easy pickings for the ABF.
Officers generate a report from the Integrated Cargo System (ICS) that shows all cargo reported to be at an establishment that remains uncleared. Therefore, all of that cargo listed should be safely secured and shown to the officer upon request. If the cargo is not there, then we have what is referred to as a "Delivery Without Authority" and a possible infringement notice of 45 penalty units equating to $9450 fine.
Other Breaches
The horror story does not end there.
Some 64 infringement notices were also issued during the period against Sec 77R(1) of the Customs Act, being other depot licence breaches, totalling another $517,950 in fines.
The report also notes that in an extreme case, the ABF cancelled the depot licence of a Victorian company for repeatedly breaching its licence conditions.
Mandatory Training
As well as making good business sense, it is also important to note that training depot staff is mandatory as outlined in ABF notice 2013/56 - clause 28 "The holder of a licence must provide adequate training to make staff aware of their legal obligations in dealing with goods subject to the control of Customs".
In supporting this need and in response to member feedback, Freight & Trade Alliance (FTA) has enhanced its e-Learning course titled "Sec 77G DEPOTS – Obligations dealing with goods subject to ABF control".
The most recent enhancement to the training package includes the revised Infringement Notice penalty arrangements and the above referenced depot cancellation case study. Members will also be provided with a certificate of completion and online history maintained to demonstrate completion of the accredited course.
A word of warning … this is not your "get out of jail free" card.
The course provides an overview of obligations and focusses on key compliance requirements, making it an ideal component of a staff induction program and as a part of a broader informed compliance approach.
Please note that completion of this course does not cover every scenario that your staff will face in your operating environment.
The onus clearly remains on depot management to ensure that comprehensive standard operating procedures are in place and that staff know and can follow instructions to ensure the safekeeping of goods under Customs' control.
Paul Zalai is an advocate for the Australian Freight and Trade sectors
www.FTAlliance.com.au