Freight & Trade Alliance (FTA) has engaged with the Australian Border Force (ABF) providing feedback that many importers are experiencing poor cash flow as a result of the current economic environment.
Now that import container volumes are starting to increase, it is likely that we will see significant congestion on our wharves and depots as cargo cannot be released without upfront payment of taxes.
To ensure that goods can keep moving across the border and support an Australian economic recovery, FTA has formally requested that importers be provided relief in the form of deferred Duty, GST and Import Processing Charges.
This would also alleviate concerns being raised by members on the potential of high storage and container detention costs as a result of delays in release from customs control.
We are very much encouraged with advice received today (25 March 2020) from ABF executives that merit is seen in our proposal and that the matter has been escalated to Treasury and the Australian Taxation Office (ATO).
Should the Federal Government proceed with our recommendation, we have witnessed that legislative changes in these extreme circumstances can be achieved within days.
We will keep members up to date on this critically important development.
Paul Zalai - Director and Co-Founder, FTA / Secretariat, APSA