EXPLANATORY STATEMENT
Issued by the authority of the Minister for Agriculture, Fisheries and Forestry
Quarantine Act 1908
Quarantine Service Fees Amendment Determination 2008 (No. 2 )
Subsection 86E(1) of the Quarantine Act 1908 (‘the Act’) provides that the Minister may make determinations that require fees of amounts set out in the determination to be paid in respect of, inter alia, specified examinations or services carried out or provided under the Act. Subsection 86E(2) of the Act provides that the determination may specify the person by whom the fees are payable.
The Quarantine Service Fees Determination 2005 (‘the Determination’) sets out the fees that must be paid in respect of specified examinations or services carried out or provided under the Act. The Determination sets out fees for services performed by programs of the Australian Quarantine and Inspection Service (‘AQIS’), including services for the quarantine clearance of imported goods.
The purpose of the Quarantine Service Fees Amendment Determination 2008 (No. 2) (‘the Amendment Determination’) is to:
- simplify the Determination by making grammatical and structural changes, and inserting additional definitions;
- increase the fees for import clearance services;
- increase the fees for services provided in relation to the lodgment and assessment of entries and import permit applications;
- increase the additional fees for import clearance services performed outside ordinary hours of duty; and
- increase the application fees for approval, or renewal of approval, of a quarantine approved premise pursuant to section 46A of the Act.
AQIS operates under the Australian Government cost recovery policy. In accordance with the cost recovery guidelines, the Import Clearance Program within AQIS reviewed fees by undertaking activity based cost modelling in April 2008. The review revealed that the expected 2008–09 financial year result would be a deficit of $3.003 million if the current fees were not revised. The increase in fees is necessary to recover costs that have been steadily increasing since 2005. The fee adjustments also ensure future cost recovery arrangements are more in line with activity and revenue streams.
Consultation occurred on the fee increases with the AQIS Industry Cargo Consultative Committee (AICCC). The AICCC was established in 1993 to act as the peak industry consultative group between AQIS and the cargo handling/importing industry on all operational, policy, efficiency and strategic issues.
Membership of the AQIS Industry Cargo Consultative Committee comprises of representatives from key industry sectors including:
- AQIS
- Industry Working Group on Quarantine (IWGQ)
- Regional Cargo Facilitation Committees/Councils
- Shipping Lines
- Stevedoring/Container Terminal and Depot Operators
- Customs Brokers
- Air/Sea Freight Forwarders
- Importers/Cargo Operators
- Airlines/Cargo Terminal Operators
- Air Express Operators/Couriers
The AICCC endorsed the fee increases on 13 May 2008.
The Amendment Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The Amendment Determination commences on the day after it is registered.
Details of the Amendment Determination are set out below:
Section 1 provides that the name of the Amendment Determination is the Quarantine Amendment Determination 2008 (No.2 ).
Section 2 provides that the Amendment Determination commences on the day it is registered.
Section 3 provides that Schedule 1 amends the Quarantine Service Fees Determination 2005.
Section 4 provides that the amendments made by Schedule 1 apply in relation to a service provided on or after the date on which the Determination commences.
Schedule 1 - Amendments
Item 1 omits the definition of the term ‘ACA’ and inserts a definition for the term ‘application’. ‘ACA’ was the acronym for ‘Air Cargo Automation’ system. It was associated with the system COMPILE, which has been replaced with the Integrated Cargo System (ICS). Accordingly, the definition of ‘ACA’ is no longer required. Section 5 of the Determination already defines the term ‘ICS’.
The term ‘application’ is defined to mean, in relation to a permit, an application for a permit or an application for a variation of a permit.
Item 2 omits the definitions of the terms ‘ACA’ and ‘COMPILE’ and substitutes a number of new definitions. The language used in the definition of the term ‘assessable item’ has been amended to clarify the meaning of the term used in the Determination. This item also omits the definition of ‘COMPILE’. This definition is no longer required because the COMPILE system has been replaced by ICS. Section 5 of the Determination already defines the term ‘ICS’.
This item also inserts definitions for the terms ‘assessment fee’, ‘electronic lodgment’, ‘entry’ and ‘full import declaration’. The purpose of the definitions is to clarify the meaning of the terms used in the Determination.
Item 3 inserts definitions for the terms ‘import declaration’ and ‘initial assessment period’. These definitions clarify the meaning of the terms used in the Determination.
Item 4 inserts a definition for the term ‘lodgment fee’. This clarifies the meaning of the term. The definition restricts its meaning to a fee that is set out in column 3 of Division 1A of Part 1 of Schedule 1.
Item 5 omits the definition of ‘permit application’ and substitutes it with the definition of ‘permit’. The definition of ‘permit application’ is no longer required as a definition of the term ‘application’ is included by Item 1 of the Amendment Determination. A definition of the term ‘permit’ has been introduced to clarify that a ‘permit’ means a permit mentioned in section 13 of the Act.
Item 6 inserts definitions for the terms ‘quarantine approved premises’, ‘self-assessed clearance declaration’ and ‘service’. The purpose of the definitions is to clarify the meaning of the terms used in the Determination.
A definition of the term ‘service’ has been introduced to clarify that a ‘service’ means a ‘quarantine service’ as defined by subsection 86E(1A) of the Act and anything referred to in paragraph 86E(1)(e) or (f) of the Act. The definition of ‘quarantine service’ in the Act is defined to mean anything referred to in paragraphs (a), (b), (c) or (d) of subsection 86E(1). However, subsection 86E(1) allows a Determination to require fees of amounts set out in the determination to be paid for or in relation to the doing of anything in connection with paragraphs (a) to (f) of subsection 86E(1). The purpose of the definition of ‘service’ is to make it clear that when the term ‘service’ is used in the Determination it is referring to the doing of anything in connection with a quarantine service or anything referred to in paragraph 86E(1)(e) or (f) of the Act.
Item 7 amends subsection 6(1) of the Determination by inserting references to the new sections 8A, 8B and 8C (which are inserted by Item 9 of the Amendment Determination). The purpose of this amendment is to incorporate the new provisions that have been inserted into the Determination.
Item 8 amends subsection 6(2) by omitting ‘Division 1 or 2’ and substituting ‘Division 1, 1A or 2’. This reflects the insertion of a new Division 1A dealing with lodgment fees into the Determination (see Item 9 below).
Item 9 amends section 8 and inserts new sections 8A, 8B and 8C into the Determination.
The language used in section 8 has been altered to reflect more closely the wording of subsection 86E(2A) of the Act. It also clarifies when fees for ‘quarantine services’, as defined by subsection 86E(1A) of the Act, can be collected upfront and when quarantine services may be withheld where payment has not been received.
Section 8A provides that the lodgment of an application must be accompanied by the appropriate lodgment fee and the appropriate assessment fee for the initial assessment period. If assessment of a lodgment takes longer than the initial assessment period, additional assessment fees are payable. The additional assessment fees are worked out in accordance with column 3 of the relevant item in Division 2 of Part 1 of Schedule 1.
Section 8B provides that the lodgment of an entry must be accompanied by the appropriate lodgment fee and the appropriate assessment fee.
The inclusion of new sections 8A and 8B provide for fees that are related to services that are in connection with paragraphs 86E(1)(e) or (f) of the Act, to be collected upfront in certain circumstances.
Section 8C provides that fees payable under the Determination in relation to the lodgment of an application or entry are payable by the person who lodges the application or entry. Fees payable under the Determination in relation to the provision of any other service are payable by the person to whom the service is, or is to be, provided. The purpose of this amendment is to clarify who is responsible for the payment of fees in relation to a lodgment of an application or entry as opposed to other services provided.
Item 10 omits Item 1 from Division 1 of the table in Schedule 1, which sets out the fee payable for lodgment of a house airway bill or straight line airway bill on ACA. ACA was associated with the COMPILE system, which has been replaced. AQIS now uses the ICS system to collect fees associated with air and sea cargo. The definition of the term ‘ACA’ has been removed by this Amendment Determination. The fee previously payable under this item has been incorporated into a new single ‘full import declaration’ fee, which amalgamates three previously separate air cargo service fees into one single fee (see Item 11). The restructure of fees payable reflects the change over to the Customs ICS system which has required AQIS to alter its charging structure to more closely align it to the charging structure of Customs.
Item 11 substitutes Items 2 and 3 into Schedule 1. The effect of the amendment is to remove references to the COMPILE system and to restructure the fees payable for the service. COMPILE has been replaced by ICS. AQIS now uses the ICS system to collect fees associated with air and sea cargo. The use of this system has required AQIS to alter its charging structure to more closely match the charging structure of Customs. This has been achieved by amalgamating three separate air cargo service fees into one single ‘full import declaration’ fee, and aligning one sea cargo service fee with an equivalent sea cargo ‘full import declaration’ fee. This new structure has been reflected in the substituted Items 2 and 3 in Schedule 1. Previously, the fees payable under Items 2 and 3 were structured to differentiate between the lodgment of an entry on COMPILE versus lodgment of an import declaration or request for cargo release on ICS. Item 2 previously provided fees for air cargo; lodged on COMPILE ($4), lodged on ICS ($14). Item 3 previously provided fees for sea cargo; lodged on COMPILE ($4) and lodged on ICS ($7). The fees for substituted Items 2 and 3 have been simplified and are now set at $10. This amendment results in a reduction of the fees payable for air cargo lodgments (from $14 to $10) by 28 percent, but increases the fee payable for sea cargo (from $7 to $10) by 42 percent.
Item 12 removes Item 4 of Schedule 1 (and the associated fee) as it has been amalgamated into one single ‘full import declaration’ fee, which is reflected in Item 2. This amendment reflects the use of the Customs ICS system which has required AQIS to alter its charging structure to more closely match the charging structure of Customs.
Item 13 omits and substitutes a new Item 5. The effect of the amendment is to remove references to the COMPILE system and increase the fees payable in paragraphs (a), (b)(i) and (b)(ii). AQIS now uses the ICS system to collect fees associated with air and sea cargo instead of COMPILE. The use of the ICS system has required AQIS to alter its charging structure to more closely match the charging structure of Customs.
The fee in paragraph (a) and subparagraph (b)(i) of Item 5 has been increased from $15 to $16. The fee in subparagraph (b)(ii) has been increased from $3.75 to $4. The increase in these fees reflects the increased cost of delivering the service.
Item 14 amends Item 11 of Schedule 1 by increasing the fee payable from $1.70 to $2.20 for each cubic metre or part of a cubic metre of timber examined (other than plywood or veneer, that is not in a container). The increase in this fee reflects the increased cost of delivering the service.
Item 15 amends Division 2 of Schedule 1 by separating lodgment fees from assessment fees. A new Division 1A is created by Item 15 and sets out the lodgment fees that are payable. Division 2 now contains only assessment fees. This separation simplifies the fee structure in the Determination and makes it easier to calculate the fee that is payable. This amendment also clearly distinguishes between electronic and manual lodgment of entries and applications and the fees payable. The lodgment fees in the new Division 1A will be applied together with the appropriate assessment fees contained in Division 2.
Division 1A – Lodgment Fees
Division 1A now contains Items 15 – 19 which provide fees that are payable for lodgments.
The description of the fee in Item 15 in new Division 1A has been amended to simplify the language. It clarifies that the fee is payable for electronic lodgment of an entry on an AQIS entry management system. The amendment also increases the fee for each entry from $6 to $7. The increase in this fee reflects the increased cost of delivering the service.
Item 16 in the new Division 1A still applies where there is a manual lodgment of an entry on an AQIS entry management system. The fee payable has however been amended by breaking the fee down into two categories depending on the type of declaration that has been lodged (either ‘self –assessed clearance declaration’ or a ‘full import declaration’). The previous fee for each manual entry was $10. The fee for a manual lodgment of a ‘self-assessed clearance declaration’ is $20 and for manual lodgment of a ‘full import declaration’ is now $12. This increase in fees reflects the increased cost of delivering the service and differentiates between the work required where a ‘self-assessed clearance declaration’ is used as opposed to a ‘full import declaration’.
Items 17 and 18 set out the fees payable for electronic lodgment of an application for a permit (or variation of a permit), depending on whether or not the goods are standard (Item 17) or non-standard (Item 18). The terms ‘standard’ and ‘non-standard’ goods are defined in section 5 of the Determination. These fees were previously contained in Items 19 and 20. The wording of the substituted Items 17 and 18 makes it clear that the fees also apply where there is an application for a variation of a permit.
The fee for Item 17 has been increased from $16 for each application (see previous Item 19) to $75 for each application. The note to Item 17 makes it clear that there is no separate assessment fee for electronic lodgment of an application for a permit, or variation of a permit for standard goods. The previous fee of $16 was not recovering the costs associated with electronic lodgment. The increased fee more accurately reflects the actual cost of maintaining an electronic lodgment system.
The fee for Item 18 has been increased from $16 for each application (see previous Item 20) in addition to the applicable assessment fees, to $75 for each application, in addition to the appropriate assessment fee payable for the initial assessment period. The previous fee of $16 was not recovering the costs associated with electronic lodgment. The increased fee more accurately reflects the actual cost of maintaining an electronic lodgment system.
The fee previously contained in Item 17 has been incorporated into Division 2 as Item 21. The fee previously contained in Item 18 has been incorporated into Division 2 as Item 22 (see below).
Item 19 in Division 1A sets out the fee payable for manual lodgment of an application for a permit or an application for a variation of a permit. Item 19 reflects the fee previously contained in Item 21. This fee applies to both ‘standard goods’ and ‘non-standard goods’. These terms are defined in section 5 of the Determination.
The fee for Item 19 has been increased from $100 for each manual lodgment of an application for a permit or variation of a permit (see previous Item 21) in addition to the applicable assessment fees, to $130 for each manual lodgment of an application for a permit or variation of a permit, in addition to the appropriate assessment fee payable for the initial assessment period. The increase in the fee reflects the increased cost of delivering the service.
Division 2 – Assessment Fees
The new Division 2 that is inserted contains Items 20 to 25A which set out assessment fees. Items 20 to 25A reflect the fees previously contained in Items 17, 18 and 22 – 26. The descriptions of the fees have been amended to simplify the language used and reflect the changes contained in new Division 1A. The fee increases (set out in detail below) reflect the increased cost of delivering the services.
Item 20 reflects the fee previously set out in Item 17. The fee applies to the assessment of an entry lodged on an AQIS entry management system in relation to goods that are not subject to a compliance agreement. The fee in paragraph (a) of Item 20 has been increased from $27 to $30. The fee in paragraph (b) of Item 20 has been increased from $27 to $30. This fee increase reflects the increased cost of delivering the service.
Item 21 reflects the fee previously set out in Item 18. The fee applies to the assessment of an entry lodged on an AQIS entry management system in relation to goods that are subject to a compliance agreement. The fee in paragraph (a) of Item 21 has been increased from $5 to $6. The fee in paragraph (b) in Item 21 has been increased from $27 to $30. This fee increase reflects the increased cost of delivering the service.
Item 22 reflects the fee previously set out in Item 22. The fee applies to the assessment of a manually-lodged application for a permit or variation of a permit for Category 1 standard goods. Section 5 of the Determination defines the term ‘standard goods’. The fee in Item 22 has been increased from $17 to $40 for each assessable item. This fee increase reflects the increased cost of delivering the service.
Item 23 reflects the fee previously set out in Item 23. The fee applies to the assessment of an application for a permit or variation of a permit for Category 2 non-standard goods. The item sets out the non-standard goods to which the item applies. The list of Category 2 non-standard goods to which this fee applies has not been altered. The fee in paragraph (a) of Item 23 has been increased from $60 to $80. The fee in paragraph (b) of Item 23 has been increased from $15 to $35.50. This fee increase reflects the increased cost of delivering the service.
Item 24 reflects the fee previously set out in Item 24. The fee applies to the assessment of an application for a permit or variation of a permit for Category 3 non-standard goods. The item sets out the non-standard goods to which the item applies. The list of Category 3 non-standard goods to which this fee applies has not been altered. The fee in paragraph (a) of Item 24 has been increased from $120 to $140. The fee in paragraph (b) of Item 24 has been increased from $15 to $35.50. This fee increase reflects the increased cost of delivering the service.
Item 25 reflects the fee previously set out in Item 25. The fee applies to the assessment of an application for a permit or variation of a permit for Category 4 non-standard goods. The item sets out the non-standard goods to which the item applies. The list of Category 4 non-standard goods to which this fee applies has not been altered. The fee in paragraph (a) of Item 25 has been increased from $180 to $200. The fee in paragraph (b) of Item 25 has been increased from $15 to $35.50. This fee increase reflects the increased cost of delivering the service.
Item 25A reflects the fee previously set out in Item 26. The fee applies to the assessment of an application for a permit or variation of a permit for Category 5 non-standard goods. The item sets out the non-standard goods to which the item applies. The list of Category 5 non-standard goods to which this fee applies has not been altered. The fee in paragraph (a) of Item 25A has been increased from $240 to $260. The fee in paragraph (b) of Item 25A has been increased from $15 to $35.50. This fee increase reflects the increased cost of delivering the service.
Item 16 amends Item 27 by omitting ‘Division 1 or 2’ and substituting ‘Division 1, 1A or 2’. This item provides for additional fees that are payable where a service mentioned in Divisions 1, 1A or 2 occurs outside ordinary hours of duty on a weekday, on a Saturday or Sunday or public holiday. This amendment is required to Item 27 because the old Division 2 has been split into ‘Division 1A – Lodgment Fees’ and new ‘Division 2 – Assessment fees’.
Item 17 amends subitem 27(a) by increasing the fee in paragraph (a) from $10 to $15. The increase in this fee reflects the increased cost of delivering the service. Overtime rates have been adjusted to reflect an increase in the cost of delivering services outside ordinary hours of duty.
Item 18 amends subitem 27(a) by increasing the fee in subparagraph (b)(i) from $120 to $135. The increase in this fee reflects the increased cost of delivering the service. Overtime rates have been adjusted to reflect an increase in the cost of delivering services outside ordinary hours of duty.
Item 19 amends subitem 27(a) by increasing the fee in subparagraph (b)(ii) from $10 to $15. The increase in this fee reflects the increased cost of delivering the service. Overtime rates have been adjusted to reflect an increase in the cost of delivering services outside ordinary hours of duty.
Item 20 amends subitem 27(b) by increasing the fee in paragraph (a) from $120 to $140. The increase in this fee reflects the increased cost of delivering the service. Overtime rates have been adjusted to reflect an increase in the cost of delivering services outside ordinary hours of duty.
Item 21 amends subitem 27(b) by increasing the fee in paragraph (b) from $10 to $20. The increase in this fee reflects the increased cost of delivering the service. Overtime rates have been adjusted to reflect an increase in the cost of delivering services outside ordinary hours of duty.
Item 22 amends subitem 27(c) by increasing the fee in paragraph (a) from $156 to $176. The increase in this fee reflects the increased cost of delivering the service. Overtime rates have been adjusted to reflect an increase in the cost of delivering services outside ordinary hours of duty.
Item 23 amends subitem 27(c) by increasing the fee in paragraph (b) from $13 to $23. The increase in this fee reflects the increased cost of delivering the service. Overtime rates have been adjusted to reflect an increase in the cost of delivering services outside ordinary hours of duty.
Item 24 amends subitem 27(d) by increasing the fee in paragraph (a) from $192 to $200. The increase in this fee reflects the increased cost of delivering the service. Overtime rates have been adjusted to reflect an increase in the cost of delivering services outside ordinary hours of duty.
Item 25 amends subitem 27(d) by increasing the fee in paragraph (b) from $16 to $25. The increase in this fee reflects the increased cost of delivering the service. Overtime rates have been adjusted to reflect an increase in the cost of delivering services outside ordinary hours of duty.
Item 26 amends Item 28 by omitting ‘Division 1 or 2’ and substituting ‘Division 1, 1A or 2’. This item provides for an additional fee that is payable where the performance of a service mentioned in Divisions 1, 1A or 2 occurs in circumstances in which it is necessary for the officer performing the service to stay overnight away from home in order to perform the service. This amendment is required to Item 28 because the previous Division 2 has been split into ‘Division 1A – Lodgment fees’ and new ‘Division 2 – Assessment fees’.
Item 27 amends Item 29 by increasing the fee payable for each application for approval or renewal of approval of premises under section 46A for a financial year, for the purpose of performing quarantine from $800 to $900. The increase in this fee reflects the increased cost of providing the service.
Item 28 amends Item 30 by increasing the fee payable for each application for approval or renewal of approval of premises under section 46A for part of a financial year, if the application is made after 1 January in the financial year from $400 to $450. The increase in this fee reflects the increased cost of providing the service.