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2013-2014-2015
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
IMPORT PROCESSING CHARGES AMENDMENT BILL 2015
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Immigration and Border Protection,
the Honourable Peter Dutton MP)
IMPORT PROCESSING CHARGES AMENDMENT BILL 2015
OUTLINE
The purpose of Import Processing Charges Amendment Bill 2015 (the IPC Bill) is to
amend the Import Processing Charges Act 2001 (the IPC Act) to increase the import
processing charges imposed on import and warehouse declarations communicated under
the relevant provisions of the Customs Act 1901 (the Customs Act). The IPC Bill also
removes the different charges that apply to import and warehouse declarations depending
on the way in which the goods are imported into Australia (sea, air or post). The same
charge will apply regardless of the mode of importation.
The IPC Bill also introduces a consistent price differential between electronically and
manually lodged import declarations of $40 to reflect the additional work required to
manually enter and process these documents.
The amended charges apply in relation to import declarations and warehouse declarations
communicated on or after 1 January 2016.
These amendments implement certain recommendations from the Joint Review Of Border
Fees, Charges And Taxes (the Joint Review).
In relation to import processing charges, the Joint Review identified that;
(a) a number of reform initiatives are being undertaken to deliver services that address the
risks presented to border agencies as a result of a changing operational environment; and
(b) cargo imports across sea, air and post share many functions and supporting
infrastructure, with large similarities in risks and volumes across the different pathways.
To improve the current import processing charging arrangements, it was recommended that
current charges be increased to cover the costs of these reform initiatives directly related to
the improvement of cargo and trade operations, and that the current price differential
between sea, air and post import charges be removed. The IPC Bill will give effect to
these recommendations.
FINANCIAL IMPACT STATEMENT
The measures in the IPC Bill will generate an estimated $106.4 million across the forward
estimates from 2015-16. A delay in introducing this legislation will have a financial
impact on the Budget balance of an estimated $2.5 million per month as this revenue has
already been factored into the forward estimates.
REGULATION IMPACT STATEMENT
The changes proposed to this legislation support the implementation of the outcomes of the
Joint Review. The Office of Best Practice Regulation has been consulted in relation to the
proposed amendments and a Regulatory Impact Statement (RIS) has been assessed to be
consistent with best practice. The RIS will be published when all recommendations have
been considered and finalised.
Page 2 Import Processing Charges Amendment Bill 2015
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act
2011
IMPORT PROCESSING CHARGES AMENDMENT BILL 2015
This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the Bill
The Import Processing Charges Amendment Bill 2015 (the Bill) amends the Import
Processing Charges Act 2001 to align import processing charges across air, post and sea
cargo to better reflect the similarities in risk and volume profiles across the pathways and
improve the consistency of cost sharing associated with processing import declarations.
For electronic declarations, the import processing charge for consignments valued above
$1,000 but less than $10,000 becomes $50. For consignments valued at or above $10,000,
the import processing charge becomes $152.
This Bill also introduces a consistent price differential between electronically and
manually lodged import declarations of $40 to reflect the additional work required by
DIBP staff to manually enter and process these documents.
Human rights implication
The Bill does not raise any human rights issues. It increases import processing charges and
standardises the amounts of import processing charges across all modes of transport to
Australia. The revised amounts of the charges are directly related to the Department of
Immigration and Border Protection's cargo and trade related costs.
Conclusion
The Bill is compatible with human rights as it does not raise any human rights issues.
The Minister for Immigration and Border Protection,
the Honourable Peter Dutton MP
Import Processing Charges Amendment Bill 2015 Page 3
IMPORT PROCESSING CHARGES AMENDMENT BILL 2015
BACKGROUND
1. The Import Processing Charges Act 2001 (the IPC Act) imposes import declaration
processing charge and warehouse declaration processing charge on import declarations and
warehouse declarations in relation to imported goods. The amount of each charge depends
on the value of goods included in a consignment. A higher charge is payable in respect of
consignments with a value of $10,000 or more than in respect of consignments valued at
less than $10,000. The IPC Bill increases the amounts of import and warehouse
declaration processing charges. However, the different amount of charges dependent on
the value of the goods in a consignment will be retained.
2. The amount of the charge payable in relation to import and warehouse declarations also
depends on the way in which the goods are imported into Australia. Currently, an import
or warehouse declaration for goods imported by air or through the post incurs a lower
charge than such a declaration in respect of goods imported by sea. The IPC Bill removes
this distinction so that the same charge is payable regardless of the way in which the goods
are imported into Australia.
3. The amount of the charge also depends on whether the import or warehouse declaration is
communicated electronically or by document. This differentiation will be retained.
4. The cost recovery arrangements proposed under the IPC Bill will therefore give effect to
the Government's decision to fully recover the cost of cargo and trade related activities
undertaken by the Department of Immigration and Border Protection (the Department) and
are consistent with the requirements of the General Agreement on Tariffs and Trade
(GATT) as the revised charges do not exceed the approximate cost of the cargo and trade
related activities undertaken by the Department.
NOTES ON CLAUSES
Clause 1 - Short title
1. This clause provides for the Bill, when enacted, to be cited as the Import Processing
Charges Amendment Act 2015.
Clause 2 - Commencement
2. This clause provides that clauses 1 to 3 commence on the day on which the Bill receives
the Royal Assent, and that Schedule 1 commences on 1 January 2016.
Clause 3 - Schedule(s)
3. This clause is the formal enabling provision for the Schedule to the Bill, providing that
each Act specified in a Schedule is amended in accordance with the applicable items of the
Schedule. This Bill amends the Import Processing Charges Act 2001.
Page 4 Import Processing Charges Amendment Bill 2015
4. The clause also provides that the other items of the Schedules have effect according to
their terms. This is a standard enabling clause for transitional, savings and application
items in amending legislation.
Import Processing Charges Amendment Bill 2015 Page 5
Schedule 1 - Amendments
Import Processing Charges Act 2001
Item 1 - Section 5
5. Section 5 of the IPC Act specifies the amounts of import processing charges. Section 5
contains two kinds of import processing charges:
a) import declaration processing charges (specified in subsection (3)); and
b) warehouse declaration processing charges (specified in subsection (6)).
6. Section 71B of the Customs Act 1901 (the Customs Act) sets out when an import
processing charge becomes payable and section 71DI of the Customs Act sets out when a
warehouse declaration processing charge becomes payable.
7. Currently, for goods imported into Australia by air or post, the import declaration
processing charge and warehouse declaration processing charge for goods whose value is
at least $10,000 is $122.10 for both an electronic import declaration and documentary
import declaration. For goods whose value is less than $10,000, the amount of these
charges is $40.20 (electronic) or $48.85 (documentary).
8. For goods imported into Australia by sea, the current import declaration processing charge
and warehouse declaration processing charge for goods whose value is at least $10,000 is
$152.10 for both an electronic import declaration and a documentary import declaration.
For goods whose value is less than $10,000, the amount of the charges is $50.00
(electronic) or $65.75 (documentary).
9. The IPC Bill increases all of the charges set out above. At the same time, the IPC Bill
removes any distinction in the amount of import declaration processing charge and
warehouse declaration processing charge that is based on the way in which goods are
imported into Australia.
10. The IPC Bill increases the amount of import processing declaration charge and warehouse
declaration processing charge for goods whose value is at least $10,000 to $152.00 for an
electronic import declaration and $192.00 for a documentary import declaration. For
goods whose value is less than $10,000, the amount of the charge will be $50.00
(electronic) or $90.00 (documentary). These amounts apply regardless of the way in which
the goods are imported into Australia, i.e. the same amount applies to goods imported by
air, sea and post.
11. The amendments also allows different amounts of import processing charges and
warehouse declaration processing charges to be prescribed by regulation, with an upper
limit on the amounts that can be prescribed.
Page 6 Import Processing Charges Amendment Bill 2015
Item 2 - Application provision
12. Item 3 inserts an application provision which states that the amendments to import
processing charges will apply in relation to import declarations and warehouse declarations
that are, or have taken to have been, communicated to the Department of Immigration and
Border Protection on or after 1 January 2016.
Import Processing Charges Amendment Bill 2015 Page 7