Freight & Trade Alliance (FTA) representatives again returned to the nation's capital this week participating in yesterday's Biosecurity Imports Levy Industry Workshop and currently in attendance at the invitation only2018 National Biosecurity Forum.
Biosecurity Imports Levy
The Department of Agriculture and Water Resources has proposed to move away from using the stevedore / port terminal operators as their preferred "collection position" of the new levy (to be introduced on 1 July 2018).
This outcome aligns with the FTA formal submission avoiding a situation whereby stevedores would administer an additional charge against the Vehicle Booking System. As we have witnessed with the Infrastructure Surcharge charged by stevedores, transport operators and intermediary logistics providers are passing on costs with cascading administrative fees.
The department, at this point, has ruled out the Formal Import Declaration (FID) as a potential collection point.
Also aligned with the FTA submission is that out of the expected $325M that is forecast to be collected over 3 years, over $313M will now be allocated directly to the department. FTA will continue advocacy calling for that revenue to be spent on frontline services and measurable improved service levels.
While there are some positive outcomes, the new position presented by the department introduces considerable complexity with administration of the levy proposed against vessel owners, operators or their agents. This in itself has complexity around vessel sharing, slot charters and consortiums amongst other challenges.
In terms of the quantum of the levy, bulk cargo will be lower in the new proposal (50% saving from the originally proposed $1.00 per metric tonne to $0.50 per metric tonne), while the net per TEU cost will increase (the actual TEU levy is proposed to reduce from $10.02 to $10.00, however it is offset with the introduction of a "Commercial Vessel" charge of $ $0.027 per volumetric ton of vessel gross tonnage). FTA has initial concerns about transparency of levy calculations associated with the Commercial Vessel charge and what actual amounts may be passed on down the supply chain.
While the department has excluded coastal (domestic) cargo from the levy, the new arrangements have been expanded to include transhipment and container re-stows adding significant administrative complications.
The department was due to commence drafting of legislation with consultation on the exposure draft to take place in December 2018 and January 2019. FTA has objected to such a timeline until additional consultation is undertaken. The department has indicated it will arrange an additional meeting this year to facilitate our concerns.
We urge members to view the department's presentation (available HERE) and provide feedback to acrawford@FTAlliance.com.au by Thursday 6 December 2018 for incorporation to the FTA supplementary submission. |
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