Biosecurity Imports Levy

Monday, May 14, 2018

As outlined in last Tuesday's Budget (refer to the summary provided by Hunt & Hunt Lawyers), the Federal Government will introduce increased import biosecurity cost recovery measures from 1 July 2019.
 
Matthew Koval (First Assistant Secretary, Biosecurity Policy and Implementation Division, Department of Agriculture & Water Resources) delivered a presentation to members on Friday 11 May 2018 in Melbourne at the Global Shippers Forum and ICHCA International Conference hosted by Freight & Trade Alliance (FTA), the Australian Peak Shippers Association (APSA) and ICHCA Australia.

Matthew Koval stated that the measures are aligned to a key recommendation of the 2017 review of Australia's biosecurity system in response to increased risks. Applied to port terminal operators, the measure proposes the introduction of a fee of $10.02 per Twenty Foot Equivalent sea container with an equivalent $1.00 per tonne for non-containerised sea cargo.

During the conference question and answer session, a delegate strongly advised against issuing any levy against the stevedore operator with concerns that these costs would most likely be recovered against transport operators via the Vehicle Booking System (VBS). This in turn is likely to be passed down the supply chain with the addition of GST and administrative fees as witnessed with the recent introduction of infrastructure surcharges administered by the stevedores resulting in inflated costs by the time the end importer or exporters is billed.
 
Another conference delegate (Rod Nairn, CEO Shipping Australia Ltd) raised concerns about the fee on non-containerised sea cargo using an example of a vessel discharging 50,000 tonne of bulk liquids would be liable for a cost recovery fee of $50,000.
 
In response, Matthew Koval stated that these matters will be further considered as a part of a co-design process.
 
FTA has subsequently communicated with the department putting forward a view that any form of import cost recovery against containerised cargo is best placed against the Full Import Declaration via the Integrated Cargo System (ICS) where the net cost is passed onto the shipper.
 

This is identical to the FTA position as outlined in our submission on the Approved Arrangement model.
 
FTA will provide another member update following a commitment from the department for further engagement this week where we hope to receive transparency in costs to be recovered and to commence discussions on appropriate cost recovery modelling.

 

Paul Zalai - FTA / APSA