Within the exciting detail of last night's Budget, the
Government has announced a restructure to the import processing
charge ("IPC") to recover the cost of
all import related cargo and trade functions undertaken by the
Australian Customs and Border Protection Service
According to the various commentaries, the increases will be as
For consignments valued over $10,000 the IPC for electronic sea
import declarations will be increased by $102.60 to $152.60 per
The IPC for electronic air import declarations will be
increased by $81.90 to $122.10 per consignment.
For consignments valued over $1,000 and up to $10,000, the IPC
will remain at current levels, being $50 for electronic sea import
declarations and $40.20 for electronic air import
The IPC will continue not to be applied to consignments valued
at $1,000 or less.
The new charges will come into effect on 1 January
According to information from Customs, the increase to the IPC
will result in additional revenue of $674.3 million over 4 years
and will be implemented in accordance with cost recovery policy
adopted by the Australian government.
It would appear that Government may be asserting that all its
costs have not previously been recovered from importers and that
new charges are necessary to recover all services provided.
Alternatively, the increases would suggest that the recent reform
to anti-dumping regulation and the new measures against crime in
the supply chain are the cause of this significant increase in
costs for all parties involved in import.
Not only will this be a significant additional impost for
importers, it will also be a significant additional impost for
exporters who import many of their inputs to manufacture. While
there is never a good time to impose additional processing charges,
given the state of the economy, these additional costs will make
life very difficult for importers, exporters and their service
providers who will need to pass on these charges.
The retention of the IPC at current levels for consignments
between $1,000 and $10,000 and the failure to impose IPC on
consignments below $1,000 may also lead to additional pressure on
importers and service providers in determining the value of
consignments and the associated IPC.
The next question is how the increases have been calculated and
whether increased charges mean improvements to services.
We will keep you informed of developments but suggest that those
of you who are service providers should pass details of this
increase in charges to clients immediately so that they are aware
that these are increased charges imposed by government and not by
the service provider.
NEW DUMPING LEGISLATION
The Government has also announced the proposed introduction of
new legislation to "clarify the operation of the anti-dumping
system". The content will be interesting given the new
tranches of legislation passed recently and the commencement of the
Ant-Dumping Commission on 1 July 2013. The speed of regulatory
reform dos create its own problems for those affected.
As always, once the Bill is introduced we will provide
commentary to readers.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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