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2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
IMPORT PROCESSING CHARGES AMENDMENT BILL 2013
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Immigration and Border Protection,
the Honourable Scott Morrison MP)
IMPORT PROCESSING CHARGES AMENDMENT BILL 2013
OUTLINE
1. The Import Processing Charges Amendment Bill 2013 will implement a revenue
measure that was announced as part of the 2013-14 Budget. The purpose of this
Bill is to amend the Import Processing Charges Act 2001 (the IPC Act) to increase
the import processing charges levied on air, sea and post consignments, including
post, with a value of $10,000 or more. The increased charges will apply from 1
January 2014. The Import Processing Charges have not increased since 2005-06.
2. This Bill introduces a two tiered charging arrangement with increased charges to
apply for air, sea and post import consignments with a value of $10,000 or more.
The import processing charge will increase for sea consignments lodged
electronically from $50.00 to $152.60 and sea consignments lodged manually from
$65.75 to $152.60. The charges for air and post consignments lodged
electronically will increase from $40.20 to $122.10 and for air and post
consignments lodged manually; the charges will increase from $48.85 to $122.10.
3. Under current legislation, an import processing charge is levied on air, sea and
post consignments that have a customs value equal to or greater than $1,000. Air,
sea and post consignments that are valued at $1,000 or less are currently exempt
from the import processing charge. The current rates for import processing
charges for consignments valued at less than $10,000 will continue to apply. In
line with current arrangements, the import processing charge will not apply to air,
sea and post consignments with a value of $1,000 or less.
4. A tiered charging structure is being introduced to address the issue that low value
imports would experience higher increases in charges as a proportion of their
value, due to the import processing charge being a fixed dollar amount. The
increased costs that will be borne by importers of air, sea and post consignments
with a value of $10,000 or more costs will be small (expected to be no more than
1%) when compared to the overall costs associated with importation.
5. The import processing charges that currently exist in the Import Processing Act
2001 recover only the commercial aspects of import processing activity and do not
fully recover the ACBPS's full costs associated with cargo and trade related
activity. For example, community protection costs incurred by the ACBPS as part
its import processing activities are not currently cost recovered as part of the
import processing charges. The Bill will amend the Import Processing Charges
Act 2001 to broaden the cost base of the import processing charges so that all of
the ACBPS costs including community protection costs, are cost recovered.
Under the new arrangements, the increased import processing charge will recover
all costs associated with import processing activity including; cargo screening
costs, targeting and risk assessment costs; compliance, investigations and
prosecution costs as well as all other cargo and trade related activities.
Page 2 Import Processing Charges Amendment Bill 2013
6. The cost recovery arrangements proposed under this Bill will therefore give effect
to the Government's decision to fully recover the cost of cargo and trade related
undertaken by the ACBPS and are consistent with the requirements of the General
Agreement on Tariffs and Trade (GATT) as the revised charges will not "exceed
the approximate cost" of the cargo and trade related activities undertaken by the
ACBPS.
FINANCIAL IMPACT STATEMENT
The introduction of this Bill will generate an estimated $673.4 million across the
forward estimates from 2013-14. A delay in introducing this legislation will have a
financial impact on the Budget balance of an estimated $15 million per month as
this revenue has already been factored into the forward estimates.
Import Processing Charges Amendment Bill 2013 Page 3
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 2013
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 Bill will amend the Import Processing Charges Act 2001 to increase import
processing charges for air, sea, and post consignments with a value of $10,000 or
more.
Human rights implication
The Bill does not raise any human rights issues. It simply increases import
processing charges. Import processing charges have not been increased since
2005-06 and the revised amounts of the charges are directly related to Australian
Customs 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 Scott
Morrison MP
Page 4 Import Processing Charges Amendment Bill 2013
IMPORT PROCESSING CHARGES AMENDMENT BILL 2013
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 2013.
Clause 2 - Commencement
2. This clause provides that the Act commences on 1 January 2014.
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.
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 2013 Page 5
Schedule 1 - Amendments
Import Processing Charges Act 2001
Items 1 and 2 - Paragraphs 5(3)(a) to (f) and 5 (6)(a) to (f)
5. Section 5 of the Import Processing Charges Act 2001 (the 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 (5)).
6. Section 71B of the Customs Act 1901 (the Act) sets out when an import
processing charge becomes payable and section 71DI sets out when a warehouse
declaration processing charge becomes payable.
7. Currently, for goods imported into Australia by air, the import declaration
processing charge and warehouse declaration processing charge is set at $40.20
for an electronic import declaration and $48.85 for a documentary import
declaration. This Bill increases those amounts to $122.10 or such other amount
(not exceeding $183.15) as is prescribed.
8. For goods imported into Australia by sea, the current import declaration
processing charge and warehouse declaration processing charge is set at $50 for
an electronic import declaration and $65.75 for a documentary import declaration.
This Bill increases those amounts to $152.60 or such other amount (not exceeding
$228.90) as is prescribed.
9. The import declaration processing charge and warehouse declaration processing
charge for an electronic or documentary import declaration and electronic or
documentary warehouse declaration that relates to goods imported into Australia
through the post will, in line with the increase to goods imported into Australia by
air, also be increased to $122.10 or such other amount (not exceeding $183.15)
as is prescribed. Currently, the charge for an electronic import declaration for
goods imported by post is $40.20 and the rate for a documentary import
declaration is $48.85.
10. Item 1 will adjust the import processing charges.
11. Item 2 will adjust the warehouse declaration charges
Page 6 Import Processing Charges Amendment Bill 2013
Item 3 - Application provision
12. Item 3 inserts an application provision which provides that the amendments which
increase import processing charges will apply in relation to goods which are
imported into Australia on or after 1 January 2014.
Import Processing Charges Amendment Bill 2013 Page 7