Australian Customs Service Annual Report 2004-05 · Australian Customs Service Annual Report 2004–05 Review by the CEO This year has again been a demanding one for Customs. Some
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Protecting our borders
TheAustralianCustomsServiceprovideseffectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementacrosstheborder,raisesrevenueandprovidestradestatistics.
Customsoperationalexpenditurein2004–05was$925.1mandcapitalexpenditurewas$63.4m.
In2004–05,Customsreceived4.8mimportandexportdeclarations,processed20.9mpassengers,detectedapproximately2375kgofMDMA,193kgofcocaineand176kgofheroin,plusillegalfirearms,weaponsandotherprohibitedimports,andraised$7.9binrevenue.
AnnualReport2004–05
CustomsHouse ConstitutionAvenue CanberraCityACT2601
SenatortheHonChrisEllisonMinisterforJusticeandCustomsParliamentHouseCANBERRAACT2600
DearMinister
IpresenttoyoutheAnnualReportoftheAustralianCustomsServiceforthefinancialyearended30June2005.
Thisreportwaspreparedinaccordancewithsub-section17(1)oftheCustoms Administration Act 1985,andtheguidelinesapprovedbytheJointCommitteeofPublicAccountsandAuditreferredtoinsub-sections63(2)and70(2)ofthe Public Service Act 1999.Theseguidelinesareappliedasamatterofpolicytoprescribedagencies,includingtheAustralianCustomsService,undersection5oftheFinancial Management and Accountability Act 1997.
ThisreportdetailsperformancefortheyearforCustomsfiveOutputsandtheircontributiontotheachievementoftheCustomsOutcome.
Sub-section17(2)oftheCustoms Administration Act 1985requiresyoutopresentthisreporttoParliament.
(LBWOODWARD)
4October2005
iv AustralianCustomsServiceAnnualReport2004–05
Contents
Overview
ReviewbytheCEO 2
OverviewofCustoms 6
Performance reporting
Outcome Effectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementacrosstheborder,raisesrevenueandprovidestradestatistics 14
Output1 Facilitationofthelegitimatemovementofgoodsacrosstheborder,whileinterceptingprohibitedandrestrictedimportsandexports 21
Output2 Facilitationofthelegitimatemovementofpeopleacrosstheborder,whileidentifyingillegalmovements 51
Output3 Civilmaritimesurveillanceandresponse 58
Output4 AdministrationofCustomsdutyandindirecttaxes,otherborder-relatedrevenuecollectionsandimport/exportstatistics 73
Output5 Anti-dumpingandcountervailingadministration 91
Enabling Outputs
Corporategovernance 98
Organisationalstructure 98
Seniorexecutiveandtheirresponsibilities 99
Seniormanagementcommitteesandtheirroles 100
Externalconsultativemechanisms 100
Enhancingcoordination,communicationandcooperationwithkeyinternationalstakeholders 102
Corporateplanning 104
Riskmanagement 105
Businesscontinuity 105
Certificationoffraudmeasures 105
Managementofhumanresources 106
Workforceplanning 106
Staffturnoverandretention 106
Staffingprofile 106
Workplacediversity 110
Traininganddevelopment 110
CertifiedAgreement 111
AustralianWorkplaceAgreements 112
Performancemanagement 112
v
CodeofConduct 113
Investigationsofemployeemisconduct 114
Security 115
Occupationalhealthandsafetyperformance 116
Corporateresourcemanagement 117
Managingourfinances 117
Purchasing 117
Informationandcommunicationtechnologymanagement 117
Consultants 120
Competitivetenderingandcontracting,contractmanagementandcorporateoutsourcedarrangements 122
Advertisingandmarketresearch 122
Assetsmanagement 122
Discretionarygrants 122
Eventsthatwillsignificantlyaffectoperationsorfinancialresults 122
Accountabilitytoclients 124
Clientservice 124
Socialjusticeandequity 124
ImprovingservicetoourclientsthroughtheCustomsInformationandSupportCentre 124
Complaintsandcompliments 124
Environmentalaccountability 125
Sustainability 126
Environmentalimpact 126
Socialimpact 129
Economicimpact 130
GlobalReportingInitiativeenvironmentalindicators 131
GlobalReportingInitiativesocialindicators 133
GlobalReportingInitiativeeconomicindicators 137
Externalscrutiny 139
Freedomofinformation 139
Ministerialrepresentations 140
Privacymatters 140
CommonwealthOmbudsmanmatters 140
Judicialdecisionsanddecisionsofadministrativetribunals 142
AuditorGeneral’sreports 143
ParliamentaryCommitteereports 144
vi AustralianCustomsServiceAnnualReport2004–05
Financial statements
Auditedfinancialstatements 148
Agencystatements 148
Administeredschedule 148
Appendixes
A Occupationalhealthandsafety 214
B FreedomofInformation 216
C Advertisingandmarketresearch 218
D AdministrativeAppealsTribunalandAdministrative Decisions (Judicial Review) Act 1977 219
E CommonwealthDisabilityStrategy 221
F Correctionoferrors 225
Glossary and acronyms 228
Index 232
vii
List of figuresFigure1: AsummaryofCustomsin2004–05 5
Figure2: 2004–05OutcomeandOutputframework 8
Figure3: Outcomeperformanceagainsttargetssetin2004–05PortfolioBudgetStatement 15
Figure4: ResourcesallocatedfortheCustomsOutcome2004–05 16
Figure5: ResourcesallocatedfortheCustomsOutcome2005–06 17
Figure6: Performanceagainsttargetssetinthe2004–05PortfolioBudgetStatement– Output1 22
Figure7: Numberofdetections/seizuresofprohibitedimportsforinternationalairpassengersotherthanillicitdrugs 23
Figure8: SignificantContainerExaminationFacilitydetectionsfromseacargo,2004–05 34
Figure9: CustomsperformanceattheContainerExaminationFacilities 34
Figure10: ProclaimedportsinAustralia 37
Figure11: Drugdetectionsbymodeofimportation 39
Figure12: Drugdetectionsandsignificanceofoffence 40
Figure13: NumberandweightofMDMA(ecstasy)detections 42
Figure14: Interceptionsofprecursortypedrugs 43
Figure15: Numberandweightofamphetamine-typestimulantsdetections 44
Figure16: Amphetamine-typestimulantsandcrystallinemethamphetamine(ice) detectionsbyweight 44
Figure17: Numberandweightofcrystallinemethamphetaminedetections 45
Figure18: Interceptionsofperformanceandimageenhancingdrugs 46
Figure19: Summaryofinvestigationsactivitiesconcerningtheillegalimportandexportofprohibitedandregulatedgoodssuchasweapons,performanceenhancingdrugs,precursorchemicals,childpornography,floraandfauna 49
Figure20: Performanceagainsttargetssetinthe2004–05PortfolioBudgetStatement –Output2 52
Figure21: Proportionofinternationalairpassengersprocessedwithin30minutesof arrival,byarrivalairport 53
Figure22: Performanceagainsttargetssetinthe2004–05PortfolioBudgetStatement –Output3 59
Figure23: HighFrequencySurfaceWaveRadarproposedcoverage 62
Figure24: Summaryofsuspectillegalentryvesselsandsuspectunlawful non-citizens 65
Figure25: SelectedCoastwatchactivitiesonbehalfofotheragencies 65
Figure26: Foreignfishingvesselaction2000–01to2004–05 66
Figure27: LocationofOperationClearwater 66
Figure28: AustralianCustomsvesselresponseactivity 68
Figure29: Performanceagainsttargetssetinthe2004–05PortfolioBudgetStatement –Output4 74
Figure30: Revenuecollectedonbehalfofotheragencies 75
Figure31: NumberofsuccessfulEDIandCustomsInteractiveexporttransactions processed(1October2004to30June2005) 77
Figure32: Exporttransactionssuccessfullyprocessedbytype(1October2004to 30June2005) 77
Figure33: 2004–05Benchmarkandfocusedauditprogram 82
Figure34: Percentageoftotalvalueofcustomsimportsandexportsin2004–05subject tocomplianceactivity 82
viii AustralianCustomsServiceAnnualReport2004–05
Figure35: Summaryofinvestigationactivity–fraudsontherevenue 84
Figure36: Dutyforgonethroughconcessionalarrangements 86
Figure37: Item50inSchedule4oftheTariff—TariffConcessionScheme 87
Figure38: Tariffadvicesandreviews 87
Figure39: Costsincurredin2004–05byagenciesprovidingpassengerprocessingservice 89
Figure40: SummaryofTouristRefundSchemeclaims 90
Figure41: Performanceagainsttargetssetinthe2004–05PortfolioBudgetStatement –Output5 91
Figure42: Extensiontostatutorytimeframes 93
Figure43: LocationsofAustralianCustomsoffices 99
Figure44: Organisationalchart 99
Figure45: Staffemploymentcategorybylocationat30June2005 107
Figure46: Staffnumbersbyclassificationat30June2005 108
Figure47: Staffclassificationandlocationat30June2005 108
Figure48: Representationofequityanddiversitygroupsbystaffclassificationat 30June2005 110
Figure49: Staffclassification,AustralianPublicServiceequivalentlevelandsalaryrange at30June2005 112
Figure50: SeniorExecutiveServiceclassificationandgenderat30June2005 112
Figure51: 2004–05PerformanceAssessmentandFeedbackSchemeratings– performedaboveagreedrequirements 113
Figure52: 2004–05performancepayoutcomes(CertifiedAgreement) 113
Figure53: 2004–05performancepayoutcomes(CustomsDirectorAWAholders) 113
Figure54: BreachesoftheAustralianPublicServiceCodeofConductfoundin2004–05 114
Figure55: SanctionsimposedforbreachesoftheAPSCodeofConductin2004–05 114
Figure56: Trendsininternalinvestigations,securitychecksandlectures 115
Figure57: Actiontakenonsubstantiatedcomplaintsofseriousmisconductand/or criminality2004–05 115
Figure58: OccupationalHealthandSafetyPerformance 116
Figure59: RequestsmadeundertheFreedom of Information Act 1982 139
Figure60: Ministerialcorrespondenceandbriefings 140
Figure61: ComplaintsandissuesraisedwiththeCommonwealthOmbudsman 140
Figure62: AdministrativeAppealsTribunalapplicationsforreview(s37) 219
Figure63: AdministrativeAppealsTribunalrequestsforreasons(s28) 219
Figure64: AdministrativeAppealsTribunaldecisionshandeddown 219
Figure65: MattersresolvedbeforebeingheardbytheAdministrativeAppealsTribunal 220
Figure66: FederalCourtappealsfromdecisionsoftheAdministrativeAppealsTribunal 220
Figure67: Administrative Decisions (Judicial Review) ACT 1977applications/requests forreasons 220
Figure68: FederalCourtDecisionsinAdministrative Decisions (Judicial Review) ACT 1977 matters 220
Figure69: CommonwealthDisabilityStrategy–Regulatorrole 221
Figure70: CommonwealthDisabilityStrategy–Providerrole 222
Figure71: CommonwealthDisabilityStrategy–Employerrole 223
Section 1Overview
Photo:Customsofficerspreparingtoboardanoilrigtoundertakecomplianceandenforcementchecksoncrew.
� AustralianCustomsServiceAnnualReport2004–05
Review by the CEO
ThisyearhasagainbeenademandingoneforCustoms.
SomeofthedemandsresultedfromGovernmentdecisionsassociatedwiththeneedforenhancedcontrolsovertheborder.OthershaveemergedasaconsequenceofrapidlyincreasingcargoandpassengermovementsintoandoutofAustralia.Themoresignificantoftheremainingpressurepointswere:
• Theculminationofalmosteightyearsofefforttointroducewhatwebelievetobetheworld’sfirstfullyintegratedimportsandexportssystem.Thatsystemhassignificantdatawarehousingcapabilitiesand,associatedwiththis,considerableintelligenceassessmentcapabilities.Theoverallsystem,andassociatedlegislationandbusinesspracticechanges,hasgonebytheacronym‘CMR’(CargoManagementReengineering).
• TheadditionalbudgetfundingtocompletetheCMRprojectandtheassociatedexternalreviewoftheCustomsfinancialposition.
• ContinuingreassessmentofemergingthreatsintheaviationandmaritimesecurityenvironmentswhereCustomsnotonlyhasthegreatestGovernmentagencypresencebut,arguably,thebest‘working’knowledge.
Cargo Management Reengineering
TherehavebeencriticismsofCMR–somejustifiedandsomenot.Abalancedassessmentneedstotakethefollowingintoaccount:
• Australiawillhaveacargocontrolsystemwhichwillbesignificantlyaheadofanycomparablecargosystemelsewhereintheworld.
• Itsintelligencedataandmanipulationcapability,togetherwithoperationallinkstopassengerinformation,providesauniqueabilitytoenableCustomsandassociatedagenciestoprotectAustraliaagainstterroristacts.
• Customscargosystemshaveahistorygoingbacktothe1970sand1980s.Theywereclosetotheendoftheir‘expectedlives’.
CriticismwassomethingweanticipatedasnoprojectofthesizeofCMRhasgonewithoutahitch.Butwedidanticipategreaterrecognitionofthechallengesandtheeffortandinnovationneededinthedesignandimplementationoftheproject.
Asthe12October2005cutovertothenewsystemapproaches,IcanonlysignalmyprideattheteamofCustomsstaffandcontractorswhohaveworkedsohardandharmoniouslyinrecentyearstobringaboutitssuccessfulcompletion.Thisisallthemoresobecause:
• Theideawasbornwithintheorganisation.
• Itwaslargelyfundedbyinternalreallocationoffunding.
• Itwasorchestratedwiththesupportoftheinternationaltradingcommunity,externalsoftwaredevelopersandtwoparticularCommonwealthagencies–theAustralianQuarantineandInspectionServiceandtheAustralianBureauofStatistics.
Customs financial position
WewereactiveparticipantsinareviewbytheDepartmentofFinanceandAdministrationoftheCustomsfinancialposition.Thereviewresultedfromaforecastlossin2004–05dueinlargeparttothefinalstagesoftheCMRprojectandthefactthatwehadbeenrequiredtoundertakesomeGovernmentinitiativeswithoutadditionalfunding.
ThereviewconsultantsandtheseniorteamwithintheDepartmentofFinanceandAdministrationadoptedathorough,rigorousbutfairapproach.Thereviewresultedinthedevelopmentofasoundbasisforcontinuedfundingoftheorganisation,includingaformulatodealwiththeever-increasinginternationalpassengerflowsandrecognitionthatourcompliancecapabilitieshadbeencuttotheboneandneededtoberestored.TherewasrecognitionoftheneedforadequatefundstobeprovidedtomaintainsystemsaroundwhicharegulatoryagencysuchasCustomsneedstooperate.
ReviewbytheCEO �
Joint Offshore Protection Command
Elsewhereinthereport,weoutlinetheformationofaJointOffshoreProtectionCommandwhichintroducesaninnovativewaytolinktheCustomsCivilSurveillancerolewiththeAustralianDefenceForce’sresponsibilityforpatrollingandrespondingtothreatsemergingtoouroilandgasinstallationsandsimilarmaritimethreats.TheJointCommandworkswithindirectivesissuedjointlybytheChiefoftheDefenceForceandbytheCEOofCustoms.ItisheadedbyaRearAdmiralwho,withhisheadquartersstaff,worksfromCustomsCentralOffice.
International
AfocusoninternationalcooperationandengagementwithourneighbourshavebeenkeyingredientsintheCustomscontributiontoimprovedsecurityforinternationalcargomovement.AustralianCustomshasmadeasignificantcontributiontointernationalworkinrelationtosecuringofthesupplychain(i.e.thechainwhichbeginswhencargoconsignmentsarefirstpackedinanexportersorfreightforwarderspremises,throughtothepointofunpackingonimportationintoanothercountry).OurcontributionhasbeenthroughtheWorldCustomsOrganization(WCO),throughcooperativearrangementswithothercountriesandinregionalforums.TheWCOinitiative,knownastheFrameworkofStandardsforSecuringtheSupplyChainandFacilitatingTrade,providesthebasisandstandardisedapproachfortheworkofeachcountry.ButmuchmoreworkontheframeworkneedstobecarriedoutbytheWCOandAustralianCustomswillbeparticipatinginthis.
Law enforcement cooperation
Thisyeartherewerenumerousattempts,rangingfromsmalltolargescaleorganisedcrimeinvolvement,toimportnarcoticsandotherprohibitedimports.Manyofthedetectionsinvolvedacombinationofgoodintelligencework,includingsignificantcontributionsbyourpartnerlawenforcementagencies,theuseofsophisticatedtechnologyandthededicationofhighlyskilledCustomsstaff.DetailsaresetoutintheReport.
Staffing
RecruitmentandretentionofqualifiedstaffisaconcernnotonlyforCustomsbutforotherCommonwealthagencies.WehavebeenfortunatethatsomanypeoplehavebecomeawareofthediversityandchallengesofCustomsworkandhaveseentheorganisationasonewhichwouldprovideinterestingworkandaharmoniousworkingenvironment.
ImustsayalsothattherehasbeenapositivespinofffromparticipationofmanyofficersintheChannelSevenproductionofBorder Security.OurstaffhavefelttheprogramhasshownCustomsworkasbeingbothinterestingandnecessaryfortheproperprotectionoftheAustraliancommunity.ItisalsoclearthatpeopleoutsidetheorganisationhaveseenCustomsinanewlightandarenowshowingincreasedinterestinworkingfortheorganisation.
Review of Actions
CustomsstaffareemployedunderthePublicServiceActand,asaconsequence,havetherightsandobligationsofPublicServantsgenerally.Forthegreaterpart,thesystemworkswell.Buttherearesomestaffmemberswho,undoubtedlywithgenuinelyfeltgrievancesagainstmanagementorotheragencies,placeenormoustimeandotherpressuresonseniorstaffbyusingmostorallofthenumerousrevieworappealmechanismsopentothem.
LikethepressureswhichseniorstafffeelarisingfromFreedomofInformationrequirements,theresultingstrainonseniormanagementcanbesignificant.Asolutionneedstobefound.
Oneoptioniscompulsorymediationand,ifnecessary,finalsettlementbyathirdparty.Thiswouldapplyinthosefewcaseswhererelationshipsbetweenmanagementandanemployeehavecompletelybrokendownbutwhereredundancy,retirementordismissalcannotbepursued.
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� AustralianCustomsServiceAnnualReport2004–05
Sustainable development
Customshaschosentointroducevoluntaryreportingonhowitcontributestosustainabledevelopment.Thisisinresponsetoincreasedgovernmentandcommunityfocusontheimpactofenvironmental,socialandeconomicperformance,inadditiontomandatoryreportingonoutcomeperformanceandfinancialresults.ThefirstreportislistedinEnablingOutputsandwillbetheforerunnerformorerefinedreportinginfutureyears.
Next year
Overtheyears,Customshasprovenitselftobeanadaptable,flexibleorganisationabletorespondquicklytonewdevelopments.Customswillfacesomenewchallengesoverthenextyear.FinalisingtheimplementationofCargoManagementReengineeringandcapitalisingonthesystemcapabilitieswillbehighonthelist.TheCivilMaritimeSurveillanceProject2004tenderfinalisationandtransitiontonewcontractswillkeepCoastwatchbusy,aswillthebeddingdownoftheJointOffshoreProtectionCommandarrangements.
ThenextbigprojectwillinvolveinformationtechnologyservicemarkettestingandtheevaluationofaprogramtoreplacetheCustomsBayClassvessels.
Theopportunitiesprovidedbyseveralelectionbudgetfundingcommitmentswillreachthefinalstagesnextyear.Itwillbeachallengetobringtheseprojectsinontimeandonbudget,togetherwithmaintainingdaytodayoperationalcommitments.InternationalactivitieswillcontinuetogrowoverthenextfewyearsasaresultofFreeTradeAgreementnegotiations,hostingtheAsiaPacificEconomicCooperation(APEC)in2007,implementationandcapacitybuildingrelatedtotheFrameworkofStandardsonSecuringtheSupplyChainandFacilitatingTrade.
LionelWoodwardChiefExecutiveOfficer
Mr John Jeffery
Deputy Chief Executive Officer
Mr Lionel Woodward
Chief Executive Officer
Mr John Drury
Deputy Chief Executive Officer
ReviewbytheCEO �
Major achievements during �00�–0�
Figure 1: A summary of Customs in �00�–0�
Drug detection totals Cocaine 194kg
More information under Heroin 177kg
Output 1 on page 39 MDMA(ecstasy) 2375kg
Amphetamine-typestimulants 151kg
Cannabis 5kg
Major single drug detections Cocaine
Heroin
MDMA(ecstasy)
Amphetamine-typestimulants
100kg
115kg
1236kg
125kg
Import/Export statistics Numberofimportentrieslodged 3.5m
More information under Output 4 on page 74
Numberofexportdeclarations 1.3m
Maritime surveillance More information under Output 3 on page 59
NumberofCoastwatchcontractedaircraft 15fixed-wingaircraftand
2helicopters
Numberofsurveillanceflights 4425
NumberofCustomsBay Classvessels 8
NumberofNationalMarineUnitvesselseadays
2372
Numberofsuspectillegalentryvesselsintercepted
0
Numberofsuspectunlawfulnon-citizens(includingcrew)interceptedbysea
0
Detector dog programMore information under Output 1 on page 31
Numberofoperationaldetectordogteams 45operationalteamsand
4teamsintraining
Staffing seepage106
Organisational structure seepage99
Cargo management reengineering progress
CutoverfromexportsystemstotheICS October2004*
More information under CMR on page 75
CutoverfromimportsystemstotheICS 19July2005**
Container and pallet x-ray fundingMore information under CEF on page 33
FacilitiesinMelbourne,Sydney,BrisbaneandFremantle.Palletx-rayinstalledinAdelaide.
*Thego-livedatefortheexportscomponentofICSwas22September2004.Foraperiodoftwoweeks,theICSandtheexistingreportingsystemEXIToperatedinparallel.At2am(AEST)6October2004,EXITwasswitchedoffandallexportreportingwascompletedintheICS.
**Thefinaldatefortheimportscutoveris12October2005.
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� AustralianCustomsServiceAnnualReport2004–05
Overview of Customs CustomsassistsinmanagementofthesecurityandintegrityofAustralia’sborders.Itworkscloselywithothergovernmentandinternationalagencies,inparticulartheAustralianFederalPolice,theAustralianQuarantineandInspectionService,theDepartmentofImmigrationandMulticulturalandIndigenousAffairs,theDepartmentofTransportandRegionalServicesandtheAustralianDefenceForce,todetectanddeterunlawfulmovementofgoodsandpeopleacrosstheAustralianborder.
Theagencyisanationalorganisationemployingover5000peoplearoundAustraliaandoverseas.Ithasafleetofeightocean-goingpatrolvesselsandoperatesCoastwatchcivilmaritimesurveillanceandresponse.ProtectingtheAustraliancommunitythroughtheinterceptionofillegaldrugsandfirearmsisahighpriorityandsophisticatedtechniquesareusedtotargethigh-riskaircraft,vessels,cargo,postalitemsandtravellers.Theseincludeintelligenceanalysis,computer-basedanalysis,detectordogs,containerx-rayandvariousothertechnologies.
InformationonCustomsorganisationalstructureisonpage99.
Vision and roles
ThevisionofCustomsistobeaworldleaderincustomsadministrationbydeliveringhigh-qualityservicetothecommunity,industryandcommerce.
Customsthreeprincipalrolesareto:
• facilitatetradeandthemovementofpeopleacrosstheAustralianborderwhileprotectingthecommunityandmaintainingcompliancewithAustralianlaw
• collectcustomsrevenueefficiently
• administerspecificindustryschemesandtrademeasures.
Minister and portfolio
CustomshasbeenresponsibletotheMinisterforJusticeandCustomssince21October1998andisanagencywithintheAttorney-General’sportfolio.SenatortheHonChrisEllisonwasappointedMinisterforJusticeandCustomson30January2001.
Authority and power
CustomsderivesitsauthorityfromtheAustralianConstitution,whichprovidesforthelevyingofcustomsdutiesandforlawsconcerningtradeandcommerce.Customswasestablishedinitspresentformon10June1985bysub-section4(1)oftheCustoms Administration Act 1985.
TheconstitutionalauthorityofCustomsisgivenlegislativeexpressionthroughtheCustomsActandrelatedlegislation.Customsalsoadministerslegislationonbehalfofothergovernmentagencies,especiallyforthemovementofgoodsandpeopleacrosstheAustralianborder.
Statutory powers of the CEO of Customs
TheCustoms Administration Act 1985providesfortheestablishmentofCustomsandfortheappointmentofaCEOwho,undertheMinister,controlsCustoms.TheCEOisappointedbytheGovernorGeneralforaspecifiedperiodofnotmorethanfiveyearsbutiseligibleforreappointment.
CertainstatutoryfunctionsandpowersarevestedintheMinisterbutmostdecisionsmadeunderCustomslegislationaretheresponsibilityoftheCEOofCustoms.TheCEOmay,bysignedinstrument,delegatetoanofficerofCustomsalloranyofthefunctionsandpowersoftheCEO.Whereafunctionorpowerisdelegatedandexercised,theCEOistakentohavepersonallyperformedorexercisedthefunctionorpower.
OverviewofCustoms �
Commonwealth legislation under which Customs has powers
PrimarylegislationunderwhichCustomshaspowersincludes:
• Customs Act 1901
• Commerce (Trade Descriptions) Act 1905
• Copyright Act 1968
• Passenger Movement Charge Act 1978
• Trademarks Act 1995.
OtherlegislationunderwhichCustomsexercisespowersincludes:
• Australian Postal Corporation Act 1989
• Crimes Act 1914
• Environment Protection and Biodiversity Conservation Act 1999
• Financial Transactions Reports Act 1988
• Fisheries Management Act 1991
• Migration Act 1958
• Narcotic Drugs Act 1967
• National Health Act 1953
• Olympic Insignia Protection Act 1987
• Psychotropic Substances Act 1976
• Quarantine Act 1908.
OtherlegislationunderwhichCustomscollectschargesandrevenueincludes:
• A New Tax System (Goods and Services Tax) Act 1999
• A New Tax System (Wine Equalisation Tax) Act 1999
• A New Tax System (Luxury Car Tax) Act 1999
• Customs Depot Licensing Charges Act 1997
• Customs Securities (Penalties) Act 1981
• Customs Tariff Act 1995
• Customs Tariff (Anti-Dumping) Act 1975
• Customs Undertakings (Penalties) Act 1981
• Import Processing Charges Act 2001
• Passenger Movement Charge Collection Act 1978.
AdministrativeActsthatCustomscomplies
withinclude:
• Customs Administration Act 1985
• Administrative Decisions (Judicial Review) Act 1977
• Disability Discrimination Act 1992
• Financial Management and Accountability Act 1997
• Freedom of Information Act 1982
• Occupational Health and Safety (Commonwealth Employment) Act 1991
• Privacy Act 1988
• Public Service Act 1999.
Theselistsarenotexhaustiveanddonotincludealldelegatedlegislation,suchasregulations.
Significant changes in the functions or services of Customs
TheJointOffshoreProtectionCommandbringstogethertheresourcesandexpertiseofbothCustomsandtheAustralianDefenceForcetocreateasinglemaritimesurveillanceandresponsesystem.ThecommandreportstotheCEOofCustomsandtheChiefoftheDefenceForce.Itsheadquarters,inCanberra,openedinMarch.
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Outcome and Output structure
TheOutcomeisthesocialandeconomicresultofCustomsOutputs.OutputsaretheservicesCustomsdeliverstogovernmentandthecommunity.
Output 1
Facilitationofthelegitimate
movementofgoodsacrosstheborder,whileintercepting
prohibitedandrestrictedimports
andexports
Output �
Facilitationofthelegitimate
movementofpeopleacrosstheborder,whileidentifying
illegalmovements
Output �
Civilmaritimesurveillance
andresponse
Output �
AdministrationofCustomsduty
andindirecttaxes,otherborder
relatedrevenuecollectionsandimport/export
statistics
Output �
Anti-dumpingand
countervailingadministration
▲ ▲ ▲ ▲ ▲
OutcomeEffectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementsacrosstheborder,raisesrevenueandprovidestradestatistics
Figure �. �00�–0� Outcome and Output framework
Corporate priorities �00�–0�
TohelpmeetitsOutcome,Customsdevelopedandactedonanumberofcorporatepriorities.TherelationshipbetweentheseCorporatePriorities,organisationalinitiativesin2004–05andCustomsOutputsissetoutbelow.
Corporate Priorities Initiative detailed in performance reporting
Output
Counter terrorism/ Improved Quarantine Intervention– maintainstrongfocusonphysicaland
electronicscreeningofcargo,vesselsandpassengersforcriminalandotherthreats
– enhanceorganisationalsecuritymeasures– implementsystemsandproceduresthat
improvenationalsecuritybutminimisedisruptiontolegitimateactivity,wherepossible.
FirstportboardingAmmoniumnitrateregulationsRelevanttechnologyinitiatives
(includingcontainerexaminationfacilities,detectordogs,radiationandchemicaldetectors,NeutronScanner)
Pre-arrivalscreeningofpassengersAdvancepassengerprocessingJointOffshoreProtectionCommand
Output1Output1Output1
Output2Output2Output3
Border Protection– detectprohibitedandrestrictedgoods– regulatepeoplemovementsacross
theborder– maximisethedetectionofillicitdrugs
andprecursorchemicals– contributetotheimprovedprotection
ofAustralia’snaturalmarineresourcesandprimaryindustry.
Drugresearch,NationaldrugstrategyCooperationwithotheragenciesPre-arrivalscreeningofpassengersAdvancepassengerprocessingAerialsurveillancecoverageNationalMarineUnitAustralianMaritimeIdentification
SystemMaritimesurveillancecontractsOperationClearwaterSouthernoceanmaritimepatrol
andresponseRelevanttechnologyinitiatives
Output1Output1Output2Output2Output3Output3Output3
Output3Output3Output3
Outputsand3
International Cooperation– participateinnegotiationand
implementationoftradeagreements– promoteAustralianinterestsandsecurity
throughcooperativerelationshipswithrelevantoverseasCustomsadministrationsandotherbodies.
ProliferationsecurityinitiativeFreeTradeAgreementsSupplychainsecurityAntidumpingWCO,WTO,APEC,OCOand
capacitybuilding
Output1Output4Output4Output5EnablingOutputs
Innovation and Technology– deliver,implementandmanagethe
transitiontothesystemsthatsupporttheCMRProject
– continuouslyimproverevenuecollectionandborderprotection,includingmethodstodetectnuclear,chemical,radiologicalandbiologicalweapons,throughbettertechnology.
CargoManagementReengineeringContainerExaminationFacilitiesDetectordogprogramRadiationdetectorsChemicaldetectorsClosedcircuittelevisionComputerforensicsNeutronscannerSmartGateSatellitesurveillanceHighfrequencysurfacewaveradar/
unmannedaerialvehicleSecurecommunication
Outputs1and4Output1Output1Output1Output1Output1Output1Output1Output2Output3Output3
Output3
OverviewofCustoms �
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Anticipated results
ResultsCustomsaimedtoachievein2004–05:
• certaintyandsecurityforAustralianindustryandtrade
• protectionofAustraliansocietyfromthepotentiallyharmfuleffectsofprohibitedandrestrictedgoodsthroughbothairandseamovements
• facilitationoflegitimatetravellermovements
• protectionofthecommunityfromtheentryofunauthorisedpeople
• protectionofAustralia'snaturalmarineresources
• implementationandenforcementofinternationalprotocolsincludingtheprotectionofwildlife
• collectionofrevenuetoGovernmentthatisaccurateandtimely
• reportingofaccurateandtimelystatistics
• applicationofWorldTradeOrganization(WTO)-consistentremediesforindustryforinjurycausedorthreatenedbydumpedorsubsidisedimportedgoods.
Workforce characteristics
Customsstrivestohaveemployeeswhoexhibitvaluesandcharacteristicsthatinclude:
• integrity
• honesty
• accountability
• professionalism
• fairness
• innovation
• flexibility
• responsiveness
• continuousimprovement
• teamorientation.
Corporate Priorities Initiative detailed in performance reporting
Output
Revenue Collection– Efficientandeffectiveadministration
ofCustomsduty,indirecttaxesandindustryschemes.
CargoreportingstrategyPassengerMovementChargePassengerandcrewduty
freeconcessionsTariff,rulesoforiginandvaluationAntidumping
Output1Output2Output4
Output4Output5
Enhance Organisational Performance and Capability– Enhanceorganisationalperformance
andcapabilitythroughpeople,finance,informationandcommunicationtechnologyandinformationmanagement.
ImprovedlicensingprocessesImprovingairportflowCorporategovernance(Including,
riskmanagement,businesscontinuity,performanceanalysisandtheAnnualReport)
Informationandinformationtechnologymanagement
Traininganddevelopment
Output1Output2EnablingOutputs
EnablingOutputs
EnablingOutputs
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Customs teams – leading Customs
Within Customs, it is the Senior Executive Service and Regional Directors who lead the organisation.
AtameetingofthisgroupinMay,theChiefExecutiveOfficer,LionelWoodward,reflectedontheroleoftheSeniorExecutiveServicesincehehadjoinedCustomsin1994.
“Theseniorexecutivemanagementteamisagroupofskilled,experiencedanddedicatedpeoplewithaflairforinnovationandadrivetoimplementchangequicklyandwell.
Theteamisnowabalanceofmenandwomen.Some40percentoftheSeniorExecutiveServiceteamarewomen.
WehaveconsciouslysoughttobringindemonstratedexperiencefromoutsideandwehaveateamwherelessthanhalfhavespentmorethanfiveyearsinCustoms.
Thequalityofthepeopleiswhatweaimforandateamthatisresponsivetochangebuthassufficientcorporateknowledgetoensuremistakesarenotrepeated”.
The Senior Executive Service and Regional Director team at the conference in May 2005, left to right, front to back:
Tim Chapman, John Eldridge, Peter Naylor, Graeme Charlwood, Phil Burns, Geoff Johannes, Jaci Fisher, Jamie Macgregor,
Sue Pitman, Jane Bailey, Christine Marsden-Smedley, Jenny Peachey, Andrew Rice, Lionel Woodward, Murray Harrison,
John Marks, Virginia Lynch, Brian Hurrell, Tom Marshall, Kirsten Whitehouse, Russ Crane, Peter Thomson, Marion Grant,
Jeff Buckpitt, Richard Janeczko, Jo Hein, John Valastro, Roxanne Kelley, Michelle Kinnane, Paul O’Connor, John Jeffery,
Gayle Brown, Matthew Corkhill, David Collins, Jenny Eutick, Annwyn Godwin, Jon Brocklehurst, Gail Batman, Geoff Lanham
and Philomena Carnell.
OverviewofCustoms 11
Section �Performancereporting
Photo:CustomsofficerGeoffQuinnatSydneyairport.
1� AustralianCustomsServiceAnnualReport2004–05
The Customs Outcome
Effective border management that, with minimal disruption to legitimate trade and travel, prevents illegal movement across the border, raises revenue and provides trade statistics
ThegoalofCustomsistoprovidethenationwitheffectivebordermanagementinlinewiththeGovernment’scommitmentstoincreaseborderprotection.
In2004–05,CustomsprotectedAustralia’sinterestsbydetecting,controllingand,whereappropriate,preventingtheentryandexitofindividualsandgoodsthathadthepotentialtoadverselyaffectthesafetyorqualityoflifeinAustralia.
Inaddition,CustomsprotectsAustralia’srevenuebasethrougheffectivecollectionofrevenueandtheadministrationofcertaingovernmentindustryschemesandtrademeasures.
Customsstrengthenedmaritimesecuritycapabilityby:
• contributingtotheJointOffshoreProtectionCommand
• increasingfirstportboarding
• increasingtheoperatinghoursandthroughputoftheContainerExaminationFacilities
• commencingtheextensionoftheclosedcircuittelevisionnetworktoadditionalports
• examiningthedevelopmentandimplementationofastandardiseddatasetforwholeofgovernmentreporting.
FollowingthesuccessfulSouthernOceansurveillanceandenforcementprogramundertakenin2003–04,theGovernmentextendedtheinterimprogram.IncooperationwiththeAustralianFisheriesManagementAuthorityandsupportedbyDefenceandtheAustralianAntarcticDivision,Customsconductedsurveillanceandarmedpatrolsforvesselsengagedinillegalfishing.ThisalsoprotectsAustralia’ssovereigninterests
in,andtheenvironmentalvaluesof,theSouthernOcean.
BetweenNovember2002andNovember2003,CustomsestablishedContainerExaminationFacilitiesattheportsofSydney,Melbourne,BrisbaneandFremantle,withasmallerfacilityinAdelaidecommencingoperationsinMarch2005.TheincreasedexaminationcapacityisacoreelementofAustralia’sborderprotectionstrategyundertheGovernment’sTough on DrugsandProtecting our Borderspolicies.
Customs,withtheDepartmentofForeignAffairsandTradeandtheDepartmentofImmigrationandMulticulturalandIndigenousAffairs,expandedthetrialofanautomatedbiometricborder-processingsystem.Customsreceivedfundingtoupgradeandinstallanadditionalautomatedbiometricborder-processingtransactionpointwithpassportbiometricchip-readingcapacity.
Customscontinuedwiththereengineeringandintegrationofbusinessprocessesforcargomanagementtoimproveservicedeliverytoindustryandtomakegreateruseoftechnology.Aconsultativeapproachwithindustryisprovidingasmoothtransitionfromtheoldtothenewsystems.
In2004–05Customs:
• cleared5.5maircargoconsignmentsand1.8mseacargoconsignments(5maircargoand1.7mseacargoin2003–04)
• processedover20.9mpeoplethroughinternationalairportsandseaports(18.8min2003–04)
• achieveda99.4percentproportionofelectronicallylodgedentrieswhereanauthoritytodealistransmittedwithin15minutesofreceiptofentrypaymentandfinalisationofentrydetails(99percentin2003–04)
• achieveda95.1percentproportionofarrivinginternationalpassengersprocessedthroughtheentrycontrolpointwithin30minutesofarrival(target95percent)
TheCustomsOutcome 1�
• conductedover4400surveillanceflightsovercoastalandoffshoreareas,equatingtoatotalareaofabout140msquarenauticalmiles(4500surveillanceflightsoveranareaof138msquarenauticalmilesin2003–04)
• seized194kgofcocaine(131kgofcocainein2003–04),2375kgofMDMA(ecstasy)(873ofMDMAin2003–04),151kgofamphetamine-typestimulants(6kgofamphetaminetypestimulantsin2003–04),177kgofheroin(62kgofheroinin2003–04)and5kgofcannabis(709kgofcannabisin2003–04).
Customsdutiescollectedamountedtoover$5bin2004–05(over$5bin2003–04).Inaddition,Customsadministered$1366mof
Governmentconcessionsincluding$548mundertheTariffConcessionScheme($479min2003–04)and$121mindutydrawbackstoindustry($106min2003–04).
CustomsmeasuresperformanceagainsttheOutcomeandfiveOutputtargetssetin2004–05PortfolioBudgetStatementsandAdditionalEstimatesStatements.Targetsincludequantityandqualityperformancemeasures(fortheOutputs)andeffectivenessmeasures(fortheOutcome).
Customsperformanceagainstthetargetssetatthebeginningoftheyeararebelow.
Figure �: Outcome performance against targets set in �00�–0� Portfolio Budget Statement
Effectiveness indicators Measures Target* Actual
Minimum disruption to legitimate trade and travel
Cargofacilitation Proportionofelectronicallylodgedentrieswhereanauthoritytodealistransmittedwithin15minutesofreceiptofentrypaymentandfinalisationofentrydetails
97% 99.4%
Passengerfacilitation Nationalproportionofarrivinginternationalpassengersprocessedthroughtheentrycontrolpointwithin30minutesofarrival
95% 95.1%
Prevent illegal movement across the border
Illicitdrugs Trendsinthenumberandweightofdrugdetections
** SeeFigure11andFigure12
Otherprohibitedgoods Trendsinthenumberofdetectionsand/orseizuresofotherprohibitedimportsandexports
** SeeFigure7andFigure8
Civilmaritimesurveillance Undetectedsuspectillegalentryvessels(SIEVs)subsequentlyfoundtohavebreachedtheAustralianborder
** SeeFigure24
Raise revenue
Revenuecollection Significantrevenuescollected(includingCustomsduty,GSTcollectedandPassengerMovementCharge)
$7878m(netofGST
deferred)
$7892m#
* Targetsmaybeperformancetargets,serviceleveltargetsorestimates.
** Performancetargetscannotbeestimatedthroughanyreliablestatisticalorothermethod.
# RevenueexcludesthedollarvalueofAutomotiveCompetitivenessandInvestmentScheme(ACIS)creditsacquitted(moneysforgonebyCustoms).ACISCreditisadutyliabilitynotpaidbutacquittedagainstacreditgrantedundertheACISsetoutintheACIS Administration Act 1999.
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Funding for Outcome and Outputs
ThepricesfortheOutcomeandOutputsarecalculatedusingactivity-basedcostinginformationandattributedacrosstheoutputstoprovideacompletepicture,includingforEnablingOutputs(seeFigure4).
Approximately73percentofCustomscostscanbedirectlyattributedtoanOutput.Fortheremaining27percent,thecostingmodelallocatesoverheadexpensestoOutputsonastafffulltimeequivalence(FTE)perOutputbasis.
Resources allocated for the Outcome
Figure �: Resources allocated for the Customs Outcome �00�–0�
(1) (�) Variation
Budget* Actual results
(column � minus column 1)
�00�–0� �00�–0�
$’000 $’000 $’000
Administered Expenses 255 4612 4357(includingthirdpartyoutputs)
Total Administered Expenses 255 4612 4357
Price of Agency Outputs
Output 1 –Facilitationofthelegitimatemovementofgoodsacrosstheborder,whileinterceptingprohibitedandrestrictedimportsandexports
329235 329675 440
Output � –Facilitationofthelegitimatemovementofpeopleacrosstheborder,whileidentifyingillegalmovements
107926 117899 9973
Output � –Civilmaritimesurveillanceandresponse#
317531 306953 -10578
Output � –AdministrationofCustomsdutyandindirecttaxes,otherborder-relatedrevenuecollections,andimport/exportstatistics
190964 162790 -28174
Output � –Anti-dumpingandcountervailingadministration
5283 7816 2533
Total Price of Outputs** 950939 925133 -25806
Revenue from Government (Appropriation) for Agency Outputs
758296 758296 0
Revenue from other sources 192643 203918 11275
Total Revenue for Outputs 950939 962214 11275
TOTAL PRICE FOR OUTCOME 1 ��1 1�� ��� ��� -�1 ���
(TotalPriceofOutputsandAdministeredExpenses)
TOTAL REVENUE FOR OUTCOME 1 ��1 1�� ��� ��� 1� ���
(TotalRevenueforOutputsandAministeredexpenses)
Average Staffing Level (Number) �00�–0�(full-timeequivalents,includinginoperatives) 4686
*Full-yearbudget,includingadditionalestimates.
**TotalPriceofOutputsandTotalRevenueforOutputscomparesthetotalofthepricesderivedfromestimatedrevenuetothetotalofthepricesderivedfromactualexpenses.Thedifferencebetweenthe‘actualtotalpriceofOutputs’andthe‘actualtotalrevenueforOutputs’reflectsCustomsoperatingsurplusfortheyear.
#PriceincludestheresourcesreceivedfreeofchargefromtheAustralianDefenceForce.
TheCustomsOutcome 1�
Portfolio Budget Statements
ThetotalpriceofOutputsintheinitial2004–05PortfolioBudgetStatementwas$879.900m,includinganappropriationof$702.619mandrevenuefromothersourcesof$177.281m.
Customswasalsoappropriatedanequityinjectionof$19.471min2004–05.Thisincludedtheprovisionofcapitalfundsassociatedwithinitiativessuchasbiometrics,ContainerExaminationFacilities,enhancedsecurityarrangements,theNeutronScannerprogramandpreparationfortheMelbourneCommonwealthGames2006.
Portfolio Additional Estimates Statements
AfterPortfolioAdditionalEstimateshearings,thetotalpriceofOutputswasrevisedto$950.939m(up$71.039m).ThisreflectedanincreaseinfundingfornewGovernmentinitiativesandadditionalfundingfromthereviewofCustomsfinancialposition.
Actual expenditure
DetailsontheactualexpenditureofCustomsin2004–05areshowninFigure4.Furtherinformationonthisexpenditureisavailableinthefinancialstatementsandaccompanyingnotesonpages148–211.
Review of Customs financial health
AnindependentreviewofCustomsfinancialpositionwasconductedin2004–05toassessthefuturefundingrequirementsofCustoms.ThereviewwascontractedtoErnstandYoungonbehalfofDepartmentofFinanceandAdministrationandCustoms.ItwascompletedinOctober2004andincludedacomprehensiveassessmentofactivities,costsandwaystoimproveCustomsfinancialposition.Thegovernmentadoptedthereportwhichnowalsoprovidesaworkloadmeasurementdeviceforpassengerprocessing.
Figure �: Resources allocated for the Customs Outcome �00�-0�
Budget*
�00�–0�$’000
Administered Expenses 280(includingthirdpartyoutputs)
Total Administered Expenses 280
Price of Agency Outputs
Output 1 – Passengermovementandintelligence 261600
Output � –Bordercomplianceandenforcement 375800
Output � – Cargoregulation,tradefacilitationandrevenuecollection 104400
Output � –Civilmaritimesurveillanceandresponse# 236600
Total Price of Outputs** 978400
Revenue from Government (Appropriation) for Agency Outputs 783265
Revenue from other sources 195135
Total Price of Outputs 978400
TOTAL FOR OUTCOME 1 978680
(TotalPriceofOutputsandAdministeredExpenses)
Average Staffing Level (Number)
(full-timeequivalents,includinginoperatives)
�00�–0�
4902
*BudgetasannouncedinthePortfolioBudgetStatements.Revisedstructure.
**TotalPriceofOutputscomparesthetotalofthepricesderivedfromestimatedrevenuetothetotalofthepricesderivedfromactualexpenses.ThedifferencebetweentheactualtotalpriceofoutputsandtheactualtotalrevenueforoutputsreflectsCustomsoperatingsurplusfortheyear.
#PriceincludestheresourcesreceivedfreeofchargefromtheAustralianDefenceForce.
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Customs contribution to other agencies
Customsprovidesarangeofservicestoassistalmost100FederalandStateagenciestoachievetheiroutcomes.Customsservicesprovidedtokeyagenciesaredetailedbelow.Theseservicesarenormallygovernedbyagency-to-agencyMemorandumsof
UnderstandingandServiceLevelAgreementswhichareperiodicallyreviewed.
Customsalsoadministerslegislationonbehalfoftheseandothergovernmentagencies,especiallyinrelationtothemovementofgoodsandpeopleacrosstheAustralianborder.
Australian Federal Police
– referralsattheborderundercriminallegislation,includingdrugdetections,personsofinterest,(forexamplecriminalactivityorpotentialterrorists)andundeclaredexcesscurrency
– civilmaritimesurveillanceandresponseactivitiesforpeoplesmugglingandremotearealogisticsupport
Australian Fisheries Management Authority
– regulationoftheimport/exportofcertainfishproducts– civilmaritimesurveillanceandresponse
Australian Quarantine and Inspection Service
– assistinthedeliveryofquarantineinspectionservicesforgoods,people,shipsandaircraftattheborderandremoteports
– logisticsupportwithintheTorresStrait– civilmaritimesurveillanceandresponse
Australian Taxation Office
– administrationofrevenuecollectionactivityincludingTouristRefundScheme,thePassengerMovementCharge,Customsdutyandindirecttaxes,thegoodsandservicestax,theluxurycartaxandthewineequalisationtax
Department of Defence
– resources,includingsurveillanceandresponseassets,insupportofOperationRelexII(peoplesmugglingfocus)
– assessmentandclearancefunctionsandreferralsforrestrictedexportsontheDefenceandStrategicGoodsList
Department of Health and Ageing
– providingexpertiseandadviceontheNationalDrugStrategypolicyonimportandexportofsubstances
– identifyingnewsubstanceswhichmayrequireregulationattheborder– contributingtothewhole-of-governmentpositiononlicitandillicitdrugs– prohibitingtheimportofviablematerialsderivedfromhumanembryoclones– prohibitingtheimportandexportofhumanembryoclones– regulatingthemovementofdrugsandothersubstances
Department of Immigration and Multicultural and Indigenous Affairs
– clearancefunctionsforpassengersandcrewatinternationalairportsandseaports– civilmaritimesurveillanceandresponse
Department of the Environment and Heritage
– assessmentandclearancefunctionsandreferralsforrestrictedimportsandexports,includingendangeredspecies(floraandfauna),ozonehazardouswasteandculturalheritage
– provisionofintelligence– investigationsintoactualorsuspectedbreachesofrelevantActsand/orRegulations– examinationsofcargowherethereisasuspectedoractualbreachofarelevantActor
Regulation– assistanceintransportation,storageanddisposalofhazardouswasteandozonedepleting
substances– collectionandprovisionofdatainrelationtoillegalfishingandenvironmentalinformationin
theSouthernOcean– assistanceinenvironmentalprotectionintheAshmoreIslandsNatureReserve– civilmaritimesurveillanceandresponse.
TheCustomsOutcome 1�
Other agencies contribution to Customs Outcome
Australian Federal Police
– investigationofCommonwealthoffences– provisionofintelligenceinformation– trainingsupportforinvestigationsofficersandtraininginuseofforceforNationalMarineUnit/
SouthernOceansMaritimePatrolResponse(SOMPR)officers
Australian Fisheries Management Authority
– targetinginformationonthreatsinAustralianFishingZone– trainingofCustomsofficersonfisherieslegislationandenforcementprocedures– supportSOMPRwithembarkedfisheriesofficers
Australian Quarantine and Inspection Service
– providingassistancetoCustomsduringvesselinspections,clearanceofpassengersandcrewandsurveillancefunctions.Thisincludesshareduseofx-rays,CCTVandjointvesselpatrolswithinAustralianwaters
– referralofanimalorplantproducts(prohibitedundertheEnvironmentProtectionandBiodiversityConservationAct1999),narcotics,dutiableitems,undeclaredcurrencyandcommunityprotectionitems(includingweapons)thataredetectedduringquarantineinspectionofships,aircraft,passengersandincominginternationalmail
– providingsupporttoCustomsinacheiving100percentinspectionofHVLVconsignments
Australian Taxation Office
– informationasnecessaryandauthorisedbylawandreleasedundertheMemorandumofUnderstandingbetweenCustomsandtheAustralianTaxationOfficewithparticularreferencetoSchedule2,Excisematters.Thesemattersgenerallyrelatetoindustryinformation,andtheexportationandimportationofalcohol,tobaccoandpetroleumwhichmayhaverevenueconsequencesforthepaymentofExciseduty
Department of Defence
– resourcesinsupportofcivilmaritimesurveillanceandresponse– secondmentofstafftoCoastwatchandtheJointOffshoreProtectionCommand– provisionofintelligence– scientificadviceinrelationtoemergingtechnologies– trainingandtechnicaladvicetoassistintheidentificationofgoodson
theDefenceandstrategicgoodslist– logisticandtrainingsupportforarmingAustralianCustomsVesselswithdeck-mounted
weaponssystems
Department of Health and Ageing
– providingexpertiseandadviceonhealthrelatedlicitandillicitdrugissues– ensuringoperationalandpolicyresponsesreflectwhole-of-governmentpositiononlicitand
illicitdrugs– regulatingthemovementofdrugsandothersubstances
Department of Immigration and Multicultural and Indigenous Affairs
– immigrationclearancetraining– decisionsonentryclearance– expertdocumentexamination
Department of the Environment and Heritage
– assistanceinassessmentandclearancefunctionsandreferralsforrestrictedimportsandexports,includingendangeredspecies(floraandfauna),ozonedepletingsubstances,hazardouswasteandculturalheritage
– provisionofintelligenceandexperttechnicaladvice– providingappropriatetrainingforCustomsofficers– storageandsecurityofozonedepletingsubstances– assistanceinrespectofthetransportation,storageanddisposalofhazardouswaste– provisionofcomprehensivemedicalsupportandinfrastructureforSOMPR– medicalanddentalsupportforSOMPR– policyadviceonmattersrelatingtotheCommissionfortheConservationofAntarcticMarine
LivingResourcesforfisheriespatrols.
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Increased Quarantine Intervention
In2001–02theGovernmentapprovedadditionalfundingtostrengthenAustralia’squarantineprogramsthroughtheIncreasedQuarantineIntervention(IQI)initiative.ThiswasinresponsetotheoutbreakoffootandmouthdiseaseintheUnitedKingdomandEurope.AspartoftheinitiativeCustomscommittedtoinspectingallHighVolume/LowValue(HVLV)consignmentsimportedthroughairexpresscouriersandscreeningallinternationalmail.TheGovernmenthasextendedquarantinebordersecurityfundinguntilatleast2008–09.
Customsachieved100percentinspectionofHVLVconsignmentsandpostalitemsinconjunctionwiththeAustralianQuarantineandInspectionService.Inadditiontotheinterceptionofitemspresentingaquarantinerisk,inspectionsalsoresultedinthedetectionofnarcotics,weaponsandotherprohibitedimports.
Proceeds of crime
AspartoftheGovernment’sproceedsofcrimelegislation,$885314wasprovidedforenhancedclosedcircuittelevisionmonitoringatairports.
Customsinitiatedfivenewproceedsofcrimeinvestigations.Asat30June2005,sixinvestigationshadbeenconcludedand16areunderactiveinvestigation.
Output1 �1
Output 1
Facilitation of the legitimate movement of goods across the border, while intercepting prohibited and restricted imports and exports
Output1pricingisshowninthefinancialstatementsonpage210.
Topreventtheimportorexportofprohibiteditems,andtocontrolthemovementofrestricteditems,thisOutputcoverstheprocessingofgoodsacrosstheborder,including:
• riskassessmentofvessels,aircraft,cargo,mail,airandseapassengersandbaggage
• intelligence,targetingandsearchactivities
• surveillanceofinternationalairports,waterfrontsandinternationalmailcentres
• land-basedsurveillanceofthecoastline,andaerial/marinesurveillanceandresponseforspecificoperations.
TheOutputcoverstheinvestigationandprosecutionofnon-narcoticprohibitedimportandexportoffences,includingmeasuresbyCustomstocontrolorrestrictthemovementofgoodsonbehalfofotheragencies.Prohibitedandrestricteditemsincludeillicitdrugs,weapons,pornography,unsafeandunlabelledproducts,therapeuticgoods,wildlife,quarantineitemsandcounterfeitandpiratedgoods.Broadly,thisOutputcoversCustomscommunityprotectionrolebycarryingoutalltheabovementionedactivities.
Thispartofthereportincludesmeasurestakentostreamlinetheflowoflegitimatetrade,aswellasinitiativesintroducedin2004–05designedtoenhancecommunityprotection.
Keyoperationalobjectivesin2004–05included:
• improving(orsustaining)industrycompliancewithcargoandtrade-relatedCustomslawswhileminimisinganyadverseimpactonindustry/business
• increasingfirstportboardingto75–80percentbytheendofthe2004–05financialyear
• expandingthenumberofdetectordog
teamstoenhancetheDetectorDogProgramandstrengthenborderprotection
• increasingoperatinghoursandthroughputatContainerExaminationFacilities(CEFs)
• ensuringexistingandnewtechnologyeffectivelysupportedCustomsbusinessprocesses.
Keyachievementsincluded:
• leadingaprojecttostandardisedataforimport,exportandtransitionsofcargoandcrew,andexploringcreationofasinglewindowfordatarequiredbyGovernment
• improvingseacargoreporting
• upgradingINTERCEPTwhichrecordsvesselandcrewmovements
• increasingfirstportboardingto76percentcomparedwith70percentinthepreviousyear
• inspecting128411TEU(twenty-footequivalent)containersattheCEFs
• expandingtheDetectorDogProgramtoenablethegraduationoffivenewteamsinMay2005andthecommencementoffourteamsintothetrainingprogram
• expandingthefleetofradiationdetectors
• deployingnewtracedetectionequipmentinkeyoperationalareasforchemicaldetection
• installingCCTVsurveillancesystemsatairportsandseaports
• progressingtheneutronscannertrial,toefficientlyscreenaircargo,byestablishingafacilityatBrisbaneairporttohousethescanner
• detecting/seizing194kgofcocaine,2375kgofMDMA(ecstasy),151kgofamphetamine-typestimulants,177kgofheroinand5kgofcannabis
• interceptingprohibitedimportsincluding403wildlifedetectionsand1010firearmandfirearmpartsdetectionsfrominternationalpassengers
• participatinginforumsaimedatcombatingidentityfraud,moneylaunderingandcorruption.
Performancefiguresagainsttargetssetinthe2004–05PortfolioBudgetStatementaredetailedonpage22.
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Figure �: Performance against targets set in the �00�–0� Portfolio Budget Statement – Output 1
Quality/quantity performance measures Target* Actual
Facilitate movement of goods
Quality
Proportionofelectronicallylodgedentrieswhereanauthoritytodealistransmittedwithin15minutesofreceiptofentrypaymentandfinalisationofentrydetails
97% 99.4%
Electroniccargosystems–availabilitytoCustomsclients(availabilityagainsttypicalworkday)
Aircargoautomation99.7%Seacargoautomation99.7%
99.9%100.0%
RatesofappealagainstdecisionswheretheoriginaldecisionbyCustomsisoverturned
** SeeAppendixDonpage219
Quantity
Numberofimportedairwaybillsreported 5410000 5484627
Numberofimportedseacargomanifestlinesreported 1890000 1848511
Numberofexportdeclarationslodged^ 1200000 1252972
Interception of prohibited/restricted goods
Quantity
Weightandnumberofdrugdetectionsbysignificanceofoffence
** SeeFigure12
Weightofdrugdetectionsbymodeofimportation ** SeeFigure11
Numberofdetectionsand/orseizuresofotherprohibitedimportsandexports
** SeeFigure7andFigure8
Price $���.���m $���.���m
*Targetsmaybeperformancetargets,serviceleveltargetsorestimates.
**Performancetargetscannotbeestimatedthroughanyreliablestatisticalorothermethod.
^IncludesbothECNs(orexportclearance)issuedundertheoldEXITscheme,andEDNs(orexportdeclarations)issuedwhentheIntegratedCargoSystem(ICS)Exportsmodulewentliveon22September2004.
Output1 ��
Figure �: Number of detections/seizures of prohibited imports* for international air passengers other than illicit drugs
�00�–0� �00�–0� �00�–0�
Quarantine^ 10� �1 ��
Revenue � 1�� � �0� � �11
Major 45 75 123
Minor 3081 2630 3088
Undeclared excess currency (referred to AFP) 1�0 1�� 1��
Wildlife 1 ��� ��� �0�
Major 24 2 7
Minor 1201 635 396
Prohibited imports � ��� � ��� ..
Major 213 179 ..
Minor 5231 4680 ..
Firearms (including firearm parts) .. .. 1 010
Major .. .. 34
Minor .. .. 976
Other weapons .. .. 1 0��
Major .. .. 51
Minor .. .. 987
Other prohibited goods .. .. � ���
Major .. .. 61
Minor+ .. .. 3221
* Amajorfindusuallyreferstoanincidentwherearecordofinterviewisconductedorprosecutionactioncommenced.Aminorfindusuallyreferstoanincidentwherearecordofinterviewisnotconductedornoprosecutionactionhascommenced.
^ ReferstoquarantinerelatedfindsbyCustomsthatresultinprosecutionaction.ThenumberofminorfindsreferredtoAQISisnotshown.
+ Includes‘Other’finds.
Anewrecordingsystem,theBaggageActionGeneralStatistics(BAGS)system,wasintroducedinthemiddleof2003–04financialyear.OnemajorchangewithBAGSwasthatonlyundeclareditemslocatedduringabaggageexaminationorpersonalsearchconductedbyCustomswererecordedinthestatistics.Undeclareditemslocatedotherwise,forexample,duringAQISintervention,arenotcapturedinBAGS.Theotherwasthatprohibitedgoodswerebrokenupintosub-categories:firearms(includingparts),otherweapons,otherprohibitedgoodsand‘other’breachesofCommonwealthlegislationnotcoveredunderlegislationspecifiedindefinedsub-categories.Thissplitisshownforthefirsttimein2004–05.
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Framework
Changes to legislation
Commercialquantities
The Customs Amendment Act 2004 (No.133, 2004)amendedScheduleVIoftheCustoms Act 1901 (theCustomsAct)toensurethatacommercialquantityisprescribedforallnarcoticsubstances.Thismeansthatlifeimprisonmentpenaltiesareavailableforoffencesagainstsection233BoftheCustomsActwhereacommercialquantityoftheprescribeddrugisinvolved.Beforethislegislativechange,lifeimprisonmentsentenceswereonlyavailablefordrugsthathadcommercialquantitiesspecificallyprescribed.Thenewpenaltiesapplytoalloffencescommittedonorafter10December2004.
Seriousdrugoffences
The Law and Justice Legislation Amendment (Serious Drug Offences and Other Measures) BillwastabledinParliamenton26May2005.ThepurposeoftheSeriousDrugOffencesBillincludesconsolidatingallFederaldrugoffencesinoneplace,andincreasingtheuniformityofdrugoffencesacrossStatesandTerritoriesofAustralia.ThenewoffencesarebasedontheModel Criminal Code Officers Committee Report onSeriousDrugOffences(Chapter6)–publishedinOctober1998.CustomsprovidedextensiveinputintothedevelopmentoftheSeriousDrugOffencesBill.
ProhibitedImportsRegulationsamendments
In2004–05,amendmentstotheCustoms (Prohibited Imports) Regulations 1956andtheCustoms (Prohibited Exports) Regulations 1958included:
• revisedregulatoryandlegislativecontrolsontheimportandexportofchildpornographyandchildabusematerialtoreflectthechangeinagefrom16to18yearsembodiedintheCrimes Legislation Amendment (Telecommunications Offences and Other Measures) Act 2004
• revisedarrangementsfortheimportandexportofindustrialandagriculturalchemicalsinlinewiththeStockholmConventiononPersistentOrganicPollutants
andtheRotterdamConventiononthePriorInformedConsentProcedureforCertainHazardousChemicalsandPesticidesinInternationalTrade
• changestocontrolsontheimportofun-manufacturedtobaccoleaf
• aDisallowanceMotionoverturningaregulationwhichallowedtheimportationofbreedsofdangerousdogsforcertainscientificpurposes.From30November2004,theproposedpermission-basedregulationsrevertedtotheformerabsoluteprohibitionontheimportofdangerousdogbreeds.
Protectionofindiciaandimages–2006CommonwealthGames
TopreparefortheMelbourne2006CommonwealthGames,CustomsisworkingwiththeDepartmentofCommunication,InformationTechnologyandtheArts(DCITA),IntellectualPropertyAustralia,theDepartmentofthePrimeMinisterandCabinet(PM&C),theAttorneyGeneral’sDepartmentandtheMelbourne2006CommonwealthGamesCorporation.Newlegislationenactedon26June2005isdesignedtopreventtheunauthorisedcommercialuseofcertainindiciaandimagesassociatedwiththeMelbourne2006CommonwealthGames.
ThelegislationwillprovideamoresecureenvironmentfortheMelbourne2006CommonwealthGamesCorporationtoraiserevenuethroughsponsorshipandcanpreventambushmarketing.TheMelbourne 2006 Commonwealth Games (Indicia and Images) Protection Act 2005,inforceuntil30June2006,isadditionaltocurrentlegislativecontrols(Copyright Act 1968, Designs Act 1906, Trade Marks Act 1995andtheTrade Practices Act 1974).
Ammoniumnitrate
On25June2004,theCouncilofAustralianGovernments(COAG)agreedtoanationalapproachfortheregulationoftheuse,transportandstorageofsecuritysensitiveammoniumnitrate(SSAN).ThisisacounterterrorismmeasureadoptedbyCOAGsothatonlyspeciallylicenseduserswhocan
Output1 ��
demonstratealegitimateneedandwillapplysafeandsecurestorageandhandlingprocedureswillhaveaccesstoSSAN.
StateandTerritoryregulatoryagencieswillissuelicencestoappropriatelyauthorisedusersandhandlersofSSAN.
AmendmentstotheCustoms (Prohibited Imports) Regulations 1956andtheCustoms (Prohibited Exports) Regulations 1958 willenterintoforceinJuly2005.ThenewregulationsgiveCustomstheauthoritytowithholdunlicensedimportsandexportsofSSAN.CustomscooperatedwithPM&Cthroughoutthedevelopmentofthecontrols,andwillreporttotheStateandTerritoryregulatoryagenciesonallimportsandexportsofSSAN.
Australian Sports Commission Amendment Act 2005
SuspectedprohibitedactivitiesanddopingallegationsmadeagainsteliteAustralianathletesinthe2004OlympicsresultedinCustomsactivity.Customscompletedchecksonover850teammembersinthreedays.ThecheckscompletedwerecomplexandinvolvedresearchintoCustomsdataholdingsacrossAustralia.
Anumberofprocessandlegislativeframeworkissueswereidentifiedtoassistsportsbodiestoinvestigatedopinginsport.CustomsconsultedwithDCITAduringthedevelopmentofamendmentstotheAustralian Sports Commission Act 1989.
The Australian Sports Commission Amendment Act 2005allowstheAustralianSportsCommissionExecutiveDirectortoauthorisethedisclosureofCustomsinformation.Customsinformationcoverstheimportationorattemptedillegalimportationofperformanceandimageenhancingdrugs(PIEDs),uncoveredeitherbypostalinterceptsordiscoveryonapersonattheborder.
TheamendmentsenhanceAustralia’sexistinganti-dopingframeworkandaffirmAustralia’scommitmenttoachievingasportsenvironmentfreefromprohibitedsubstances.
Improved licensing processes
PremisesusedtohandleandstorecargoaresubjecttoCustomscontrol,andconditionsapplytotheiroperation.Goodsmaybestoreduntiltheownerentersthegoodsintohomeconsumptionandmeetsanyrevenueliability,orexportsthegoods.
Customslicencesatotalof360depotsand425warehouses.Thesefiguresinclude24newdepotsand30newwarehouseslicensedduring2004–05.Licencesarerenewedannually.Insomecasessupplementaryinformationwasobtainedfromtheapplicantswhereinsufficientdetailswereprovided.
InMay2005,Customsimplementedanewcomputersystem,theLicensingModule,toreplacetheLicensingandPermissionsSystemofthe1990s.
TheLicensingModuleallowsfor:
• bettermanagementofthelicensingprocess
• improvedinformationtosupportregionalcompliance
• interfacewiththeIntegratedCargoSystemtoidentifylicensedbrokersandpremises
• supportfortheelectronicreportingofgoodsandtheirmovement
• interfacewithfinancialsystemsforimprovedreporting.
NationalCustomsBrokersLicensingAdvisoryCommittee
Customsbrokersarelicensedtoactasagentsforownersimportingorexportinggoods.
TheNationalCustomsBrokersLicensingAdvisoryCommittee(NCBLAC)advisestheCEOonlicensingcustomsbrokersissues.NCBLACiscomposedofonemembernominatedbyanorganisationrepresentingbrokers,oneCommonwealthmembernominatedbyCustomsCEOandanindependentChair.
In2004–05,NCBLACmaderecommendationstotheCEOaboutanewcourseofstudyforbrokers.InthisperiodNCBLACalsoconsidered100licenceapplicationsandheld11hearings.
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�� AustralianCustomsServiceAnnualReport2004–05
Weapons and strategic goods
Customscontinuestoadministerthecertificationoffirearmdealersfornewlyimportedhandguns.Customsimposeslimitsonthenumberofnewlyimportedhandgunsthatacertifieddealermayhold.Whereadealerimportshandgunsinexcessofthespecifiedlimit,theimportsarestoredbyCustomsonthedealer’sbehalf.At30June2005,therewere338gundealerscertifiedbyCustomstoholdnewlyimportedhandguns.Ofthese,themajority(over90percent)arecertifiedtoholdanamountofnomorethanten.
During2004-05thenumberoflegitimatecommercialimportationswas38786firearms(including22348rifles,8466handguns,6973shotguns,915militaryfirearmsand84antiquefirearms).Commercialexportscomprised8454firearms(including2020rifles,5430handguns,511shotguns,69militaryrifles,and424antiquefirearms).Inthesameperiod,Customsdetectedandseized1033prohibitedorundocumentedfirearmsandpartsand6235airguns.1
Customsalsocontrolstheimportandexportofothertypesofweapons.Theseincludeweaponssuchasblades,blowguns,crossbows,knuckledustersandslingsaswellasitemsintendedforuseinwarfare(suchaslarge-calibrecannonsandincendiarydevices).ImportationoftheseweaponsisrestrictedunderSchedule2and3ofthe Customs (Prohibited Imports) Regulations 1956.
In2004–05,Customsprocessed1004applicationsforpermissiontoimportSchedule2and3weapons.Thisrepresentsanincreaseofapproximately10percentwhencomparedwiththeperiod2003–04.Ofthe1004applications,964wereapproved.Theremaining40applicationswereeitherrefusalsorapplicationsthat,onexamination,relatedtogoodsthatwerenotrestricted.
CustomsworkscooperativelywithotherCommonwealthandState/Territoryagencies.
Theofficials-levelFirearmsPolicyWorkingGroupisabletopromotenationalconsistencyofcontrolsonfirearmsandotherweaponsandchangestothecontrolsoncrossbows.CustomsalsocontributestotheAustralasianPoliceMinisters’Councilprocessonarangeoffirearmsandweaponsrelatedissues.
Facilitating the movement of legitimate goods across the border and ensuring compliance
Cargo reporting
Customsapproachtofacilitatingthemovementoflegitimatecargoreliesontheabilitytoassessandidentifysuspectshipmentsquicklysoastominimisetheimpactonbonafideconsignments.TheaccuracyofreportedcargobyimportersandexportersiscriticaltoCustomsriskassessmentprocesses.
Acomplianceimprovementstrategyforcargoreportingwasimplementedinthefirsthalfof2003afterCustomsidentifiedaneedforimprovedtimelinessofreporting,especiallyforseacargo.Thisstrategyhassincebeenextendedtoaircargo.
Keyelementsofthestrategyincludeprovisionofregularfeedbacktocargoreportersonlevelsofcomplianceandgeneraleducationofindustry.Customsconductedover500educationalvisitsnationally.Continuousmonitoringoftheenvironmenthasimprovedtheoveralltimelinessofseacargoreporting.
Nationally,on-timeimportseacargoreportinghasimprovedbysevenpercentfromthetimethestrategywasimplementedtoDecember2004.
NewlegislationwasintroducedinJanuary2005toprovideCustomswithinformationaboutcargobeforeitsarrivalinAustraliaandtoallowCustomsmoretimetoriskassesscargo.ThelegislationrequiresallcargointendedtobelandedatanyportorairportinAustraliatobereportedpriortoitsarrivalatitsfirstAustralianportorairport.Insomecaseschangeinbusinesspracticeshasbeennecessary.Customscontinuestoassistindustrytomeetnewreportingrequirements.
1 Thesefiguresincludetheseizureoffirearms(andparts)andweaponsshowninFigure7.
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Customs teams – making trading data talk all languages
Customs is leading an ambitious whole-of-government project that aims to simplify data requirements for trade into and out of Australia. Rather than requiring different data for a range of government agencies, the project aims to develop a common data set that can be read easily by all parties involved in trade.
TheStandardisedDataSetinvolvesinputofmorethan80FederalandStateagenciesandindustrybodystakeholders.TheprojectcommencedinNovember2004andisrequiredtopresenttwodeliverablesbytheendofOctober2005.Theyare:
• astandardiseddatasetforthesubmissionofimport,exportandtransitdatarelatingtocargo,crewandconveyance(shipsandaircraft)details
• abusinesscaseexploringoptionsforatrade‘singlewindow’facilitytoenableindustrytosubmitthedatarequiredbyGovernmentagenciesaspartoftheinternationaltradeprocessonlyonceandhavethatdatausedmanytimes.
Theprojectlaysthefoundationforharmonisationofimport,exportandtransitprocesses.Anticipatedoutcomesareamorecoordinatedriskassessmentapproach,enhancedsupplychainsecurityandcostsavingsforbothindustryandgovernment.
Thecompleteddatasetwillbemappedagainstawidelyendorsedinternationalbenchmarktofacilitatetheopportunityforinternationaldataexchangeaspartoftradetransactions.TheStandardisedDataSetprojectteamreceivedahighlevelofsupportandcooperationfromgovernmentandindustrystakeholders.
Output1 ��
Standardised Data Set Project team, back left to right: Julie Wright, Julie Olarenshaw, Lindy Leavold, Manda Tomicic,
George Szuty. Middle: Peter King, Malcolm Galer, Jeff McKee. Front: Neil Hogan, Gareth Lewis, Paul McLellan.
Counter terrorism
ProliferationSecurityInitiative
TheProliferationSecurityInitiativeisofvitalimportancetomostcountriestopreventterroristthreats.CustomsparticipatedinavarietyofconferencesandinternationalexercisesincludingOperationalExpertsMeetings,toshareinformationandplanfutureexercises.CustomsparticipatedinSamurai04,amaritimeexercise,hostedbyJapan.Customsprovidedateamleader/observerandafour-manboardingandsearchteam.Samurai04enabledcountriestoworktogethertoimproveproceduresandreadinessinthepreventionofthespreadofweaponsofmassdestructionandmissile-relatedtrade.TheexercisewasvaluableforCustoms,providingarareopportunitytoworkwithinternationalagenciesaspartofajointtrainingexercise.
Australiaishostinganair/groundinterceptionexerciseinApril2006calledPacificProtector06.Initialplanningforthescenariohascommenced.
AustraliaGroup
Tomarkthe20thanniversaryoftheAustraliaGroup,theannualforumforthepreventionoftheproliferationofchemicalandbiologicalweaponswasheldinSydney.Customsproducedatable-topdiscussionexerciseattendedbymanyoftheconferencedelegates.Thetabletopexercisefocusedonaninternationalinvestigationdealingwithattemptstoobtaindualusechemicalsfortranshipmenttoathirdcountryforproliferationpurposes.ThecrosssectionofCustomsareasandvariousgovernmentagenciesinvolvedintheexercisedemonstratedthe:
• complexnatureofbordersecurity
• needforcountriestoformclosepartnershipsbetweentheirdomesticagenciesandinternationally.
Interagencycooperation
Customscontinuedtoprovidecounterterrorismawarenessandresponsetrainingtoallstaff.Atwodayadvancedcounterterrorismawarenesscoursewasalsodevelopedforoperationalstaff.
Tofacilitateinteragencycooperationinthecounterterrorismenvironment,thecourseincludesparticipantsfromagenciessuchastheAustralianSecurityIntelligenceOrganisation,theAustralianFederalPoliceandStateandTerritorypolice.
InternationalMaritimeOrganization
CustomswaspartoftheAustraliandelegationattheInternationalMaritimeOrganization(IMO)LegalCommitteeinApril2005todiscussstrengtheningtheinternationalresponsetomaritimeterrorism.AmendmentstotheSuppressionofUnlawfulActsagainsttheSafetyofMaritimeNavigationConventionandtheProtocolfortheSuppressionofUnlawfulActsagainstSafetyofFixedPlatformsLocatedontheContinentalShelf1988werediscussed.
TheIMOlegalcommitteeproposedtheintroductionofcriminaloffencestoprohibitthetransportofterrorists,aswellasprohibitedweaponsincludingchemical,biologicalandotherweaponsofmass-destruction.ProvisionsthatwillallowtheboardingofvesselssuspectedofcommittingtheseoffenceswillbefinalisedinOctober2005.
Outer Edge 05
InApril2005,CustomsparticipatedinacounterterrorisminvestigationandconsequencemanagementexercisecoordinatedbytheProtectiveSecurityCoordinationCentreoftheAttorneyGeneral’sDepartment.Theexerciseinvolvedadeploymentphase,anumberofdiscussionexercisesandtrainingactivities,focusedonasimulatedterroristattackinDarwin.TheexercisetestedCustomsabilitytocoordinate,communicateandworkeffectivelywithotherFederalandStateagencies.
Maritime security
CustomscontinuestoworkcloselywiththeDepartmentofTransportandRegionalServices(DOTARS)inapplyingtheMaritime Transport and Offshore Facilities Security Act 2003,whichcameintoeffecton1July2004.CustomshasaliaisonofficerworkingcloselywiththeOfficeofTransportSecurity,whichoverseesandcoordinatesmaritimesecuritycompliance.
�� AustralianCustomsServiceAnnualReport2004–05
CustomshasspecialpowersundertheActaslawenforcementofficersatports.Theseincludestoppingandsearchingpeople,vehiclesandvessels,orremovingthemfromasecurityzone.ThesepowerssupplementtheextensivepowersCustomshasinthemaritimeenvironmentforthemovementsofvessels,crewandcargo.
INTERCEPT
CustomsupgradeditsINTERCEPTinformationcomputersystem,whichrecordsdetailsofallvesselandcrewmovementsincludingrecordingofshipsecurityinformationasrequiredbyDOTARS.OnlineaccesstoINTERCEPThasbeenarrangedforanumberofexternalagenciesinvolvedintheprocessingofseacrew.
Output1 ��
Customs teams – helicopter flights speed up first port boarding procedures
Staff at Customs district offices undertake checking and clearing of international vessels and crew at a ship’s first port of entry into Australia. The logistics of this key part of border security are not always easy.
Notallshipscantieupatawharfimmediatelywhentheyarrive.AnexampleisatMackay,Queensland,wheremassivebulkoreshipsmayberequiredtoanchor12kmoffthecoastbeforetheycomeintoport.BoardingatMackayisalsocomplicatedbytidalmovementsandwharfinfrastructuredesignthathampersuseofgangways.
CustomsstaffatMackayuseready-responsevessels,butthelogisticsandofficersafetyissuesinvolvedinboardingshipsoffthecoastlineandinvariableconditionsarechallenging.
TheMackayDistrictOfficebeganatrialusinghelicopterstoreachtheseshipsquickly.Thehelicopterspeedsuptheprocessofclearingcrewsandvessels,andallowsCustomstoincreasethenumberoffirstportboardingsitundertakes.
Increased compliance through first port boarding
Inthe2004–05Budget,theGovernmentprovidedhalf-yearfundingof$2.8mforCustomstoemployanadditional19CustomsofficersinWesternAustralia,theNorthernTerritoryandQueensland.
In2004,aspartofaGovernmentinitiativetoincreasemaritimesecurity,Customsreceivedanadditional$9.3moverthreeyearstomaintaintherateofboardingshipsatthefirstportofarrivalinAustralia.Thetargetis75–80percent.Asat30June2005,Customsachieved76percentfirstportboarding,anincreasefromthe2003–04figureof70percent.
Thehelicopterlandsontheshipanddepartsleavingtheofficersaboardtocompletetheirclearanceprocedures.Oncompletionoftheirprocedures,theofficerssummonthehelicopterbacktopickthemupandtransportthemtothenextshipwaitingatanchorage.Transferbetweenshipsonlytakesoneortwominutes.
Thetrialwascompletedin2004–05,judgedasuccessandhasbecomeanimportantpartofMackay’sfirstportboardingprocesses.
ThefirstportboardingworkloadatMackayissignificant.In2004–05,itwasAustralia’sfourthbusiestportforfirstportarrivalswith953ships,behindDampier,BrisbaneandNewcastleandaheadofFremantle,PortHedlandandSydney.
Mackay officers Catherine Harpley (left) and Jay Costello
get ready to board their helicopter flight.
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Fivehundredandthirty-ninemorevesselswereboardedthisfinancialyearcomparedwithlastyear.Thenumberoffirstportarrivalvesselsalsoincreasedby170.
Customsisdevelopingnationallyconsistentguidelinesforboardingofshipsattheirfirstportofarrival.Theguidelineswillbefinalisedearlyin2005–06.
Identifying and intercepting prohibited and restricted imports and exports
Identifying risks
CustomsselectsgoodsorpeoplethatposeathreattoAustraliafromlargenumbersoftravellers,consignmentsorvessels.Sophisticatedriskidentificationtechniquesandintelligencefacilitatethis.
ThehighestpriorityforCustomsriskidentificationandintelligencein2004–05wasthetranslationofriskidentificationpracticesintothenewIntegratedCargoSystem.Thisinvolvedthedesignofthesystem,trainingofCustomsstaff,anddetailedtechnicalwork.FromOctober2004,allexportcargowasreportedandriskassessedwithinthenewsystem.
TheGovernment’sdecisiontoincreasethelevelofCustomsboardingofcommercialvesselsledCustomstoincreaseintelligencesupporttothisfunction,includingthroughastrengthenedPortIntelligenceUnit.Thisallowsbettertargetingandagreaterflowofinformation.
Intelligenceanalysissupportedthenewaircargoscreeningtrial,theimplementationofFreeTradeAgreements,andregionalcounterterrorisminitiatives.
InvestigativeactionbyProjectEnniskahasresultedinseizuresoffirearmsandweaponsanddrugreferralstolawenforcementagencies.
ThisprojectdemonstratesCustomsabilitytoadapttochangingrisksandtakeaction.ProjectEnniskaisatruepublic-privatepartnershiptoprotecttheAustraliancommunity.
�0 AustralianCustomsServiceAnnualReport2004–05
Customs teams – Customs in South Australia working with eBay on Project Enniska – targeting illegal goods purchased on the Internet
As international trade online grows, the potential for people to import prohibited goods, sometimes by accident, increases. Customs has put in place measures to detect prohibited goods coming into Australia, through an Internet purchase under a national project, Enniska.
Whiletargetingallonlinetrade,theProjectEnniskateamworkscloselywithonlinemarketplaceleadereBay.ebayAustraliamonitorskeyareasofthesiteandhasstrictpoliciesinplacetopreventthesaleofprohibiteditems.ItisinevitablethatonoccasionstherewillbesomeitemsavailableininternationaleBaymarketsthatcanbelegallysoldoverseasbutareprohibitedinAustralia.TheProjectEnniskateamseekstoidentifytransactionsofinterestforfurtherinvestigation.
Left to right: Kym Schrapel, Sandra Corletto and
John Schulte receiving the 2004 Australia Day Award
Medallion for Achievement in South Australia.
Output1 �1
Customsalsostrengthenedliaisonwithforeignpartnersandimprovedthetechnologyunderpinningitsintelligenceprocesses.ThisinturnenabledCustomstobettermanageitsriskandachievesomenotableseizures.
DevelopmentofCustomsintelligencesystems
TheIntegratedCargoSystemandassociatedapplicationsprovideCustomsintelligencewithpowerfultoolsforanalysis.Theintelligenceareahasanumberofprojectsintraintotakefulladvantageofthesetools.Theseincludeworkondatacleansing,betterautomationofinformationsearchandretrievalandchangestoinformationhandlingprocesses.ThechangesareunderpinnedbytheredevelopmentofmuchofCustomsintelligencetraining.
Detector Dog Program
Attheendof2004,aspartoftheGovernment’selectioninitiatives,Customsreceivedadditionalfundingof$6.89moverfouryearstoexpandthenumberofdetectordogteamstoenhancetheDetectorDogProgramandstrengthenborderprotection.
Asat30June2005,therewere45operationalteamsdeployed,whichincludedfivenewnarcoticsdetectordogteamsthatgraduatedinMay2005.ThesenewteamsarestationedinBrisbane,Cairns,Darwin,MelbourneandPerth.
AlsoinMay2005,anotherfourteamscommencedathree-monthtrainingcourseinfirearmsandexplosivesdetection.TheywillsupplementthesixexistingfirearmsandexplosivesdetectordogteamsalreadystationedthroughoutAustralia.
Anadditionalfirearmsandexplosivesdetectordogteam,whichwillcommenceoperationsinApril2006,togetherwithreplacementtrainingforafurtherfourteams,willraisethenumberofdetectordogteamsdeployedto54.Thiswillincludetwoteamstrainedinthedetectionofchemicalprecursors.
TheGovernment’selectioninitiativesincluded$1moverfouryearstostrengthenborderprotectionbyenhancingtheCustomsdetectordogbreedingandtrainingcapabilitythroughfurtherdevelopmentofahazardouschemicaldetectioncapability,strengtheningCustoms
counterterrorismcapacityandensuringtheagency’snationalandinternationalstandinginthisemergingfield.
SomeofthisfundingfacilitatedtheupgradingoftrainingfacilitiesinBrisbane,PerthandattheNationalBreedingandDevelopmentCentreinMelbourne.Workcommencedonapseudoephedrinepilotanddevelopingachemicaldetectionprogram.Otherprojectsincludeanewandimprovedreportingsystemfordogtaskings,increasedaccountabilityforthecontroloftrainingaidsandanewfitnessprotocolfordoghandlersbeingdevelopedbyHealthServicesAustralia.
TheDetectorDogBreedingandTrainingProgramreceiveda‘HighlyCommended’AwardatthePrimeMinister’sAwardforExcellenceceremonyon10November2004.
AprogramtodevelopaCustomsdetectordogbreedingandtrainingcapabilityinthePeople’sRepublicofChina(China)commencedinMay2005.Customswilldonate12pupstoChinabytheendof2005tostarttheirownbreedingprogram.ChineseCustomsisexpectedtohavetheinfrastructureandexpertisetocommenceabreedingprogrambyJune2006.
CustomsisdevelopingasimilarcooperativeprogramtosupplyqualitydetectordogstoIndonesianCustomsandExcise.
Enforcement operations training
Operationalcommandtraining
Over500staffaccessedrelevantcomponentsoftheonlineOperationalCommandtraining.Thisyearalsosawsevenface-to-facecoursesconductedresultingin19staffqualifyingasOperationChiefs,56asOperationCommandersand88asGroupCommanders.Eachregionnowhasaccesstoabaseofoperationalcommandcapabilityatalllevelstoleadandmanageoperationalresponsefortheinterceptionofillicitgoodsorsmuggling.
Inadditiontothelargeregionalcentres,stafffrom16DistrictOfficeswerealsotrained.Thechallengeistoincreasethenumbersofoperativesundertakingthetraining.Theonlineprogramisprovingasuitableplatformtofacilitatethis.
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Customs teams – a new generation of detector dogs
Australia is recognised as a world leader in best practice for detector dog breeding, development, training and deployment.
CurrentinternationalcooperativepartnershipsincludetheUSDepartmentofHomelandSecurity,ChinaCustomsandtheCustomsandExciseDirectorateGeneralAdministrationofIndonesia.CustomsalsoremainsamajorsourceforsupplyofqualitydetectordogsfornarcoticsandfirearmsandexplosivesdetectiontootheragenciessuchastheAustralianFederalPolice,AustralianArmy,StatePoliceforcesandanumberofStateCorrectionalServices.CustomsalsoprovidesdogstotheAustralianQuarantineandInspectionServiceforfurthertrainingtoassistindetectinggoodsofquarantineconcern.
ThechallengeistomeetthisdemandwhilestillmaintaininghighstandardsandtosatisfyCustomsrequirementfordetectordogtaskings.Customsreceivedadditionalfundingof$6.89moverfouryearstostrengthenborderprotectionthroughexpansionoftheDetectorDogProgram.
Fivenarcoticsdetectordogteamsweretrainedanddeployedin2004–05andtrainingcommencedforfourmoreteamsinfirearmsandexplosivesdetection.
Someofthemoreinterestingfindingsbydetectordogsduring2004–05include:
• 1.25kgcocaineinheat-sealedbindersinthepostatSydney
• fiveecstasytabletsinapassenger’spocketatMelbourneairport
• 850gmcocainestrappedtoapassenger’slegsatSydneyairport
• guncomponentsinparcelpostatMelbourne
• plasticbottlefullofcannabis,ecstasyandamphetaminesinhaybalesonaprisonfarmduringanoperationwithTasmanianPolice.
�� AustralianCustomsServiceAnnualReport2004–05
Chris Williams from Customs in New South Wales with firearms and explosives
specialist dog Ossie.
TheOperationalReadinessUnitassistswithdeploymentexercisestoputintopracticecommandandotheroperationalskills.TwoexerciseswereconductedinBroomeandMelbournewhichalsoprovidedtheopportunityforaproductiveexchangeofinformationtostreamlinethedeliveryoftheexercisesandtoidentifyfurtherlearningneedsandopportunities.
Training of New Zealand Customs officers
InMay2005,NewZealandCustomsofficerstookpartinasmallcraftandshipssearchtrainingcourseheldinSydneyandBrisbane.ThetrainingwasfacilitatedbytheCustomsNationalEnforcementTrainingCentre.AfurtherthreeNewZealandCustomsofficersattendedtheshipsearchcourseheldinJune2005.
Container Examination Facilities (CEFs)
AllcargomovementsacrosstheborderarescreenedbyCustomsusingarangeofintelligence,targetingandprofilingtechniques.Long-standingcooperationbetweenCustomsandotherdomesticandinternationallawenforcementandsecurityagenciesfacilitateseffectivejointoperationalactivityandinformationexchangethatmayalsoassistinidentifyingandinterceptingillicitcross-borderactivity.
InJuly2004,theGovernmentprovidedanadditional$57.5moverfouryearstofurtherincreaseseacargoinspectionsattheCEFsfrom106000to133000TEU(twenty-footequivalentunits)ayear.Toachievetheincreasedthroughput,eachCEFworksoneshiftonSaturdaysandfromearlyMarch2005,theBrisbaneCEFincreaseditshoursofoperationtoincludeMondaytoFridayafternoonshifts.
TheMinisterforFinanceandAdministrationopenedtheAdelaideCEFin2005bringingthenumberofCEFstofive.TheAdelaideCEFincorporatesastate-of-the-artdualviewpalletx-raysystemthatincreasethecontainerinspectionratetenfoldattheportofAdelaidefrom173TEUayeartoapproximately1733TEUayear.
TheAustralianNationalAuditOffice(ANAO)conductedaperformanceauditoftheCEFsduring2004andreportedinDecember2004.TheANAOfoundthatCustomsCEFsareadministrativelyeffectiveandthatCustomshad‘implementedeffectivesystemsandprocessesfortargetselectionanddevelopment’.TheANAOReportnotesthattheCEFssignificantlybolsteredCustomsseacargoinspectionrates,providingenhancedbordersecurityforallAustralians.
TheANAOReportmadeeightrecommendationsforimprovementsinCEFoperations.Theserecommendationscovered:
• improvinglogisticsmanagement
• performancereporting
• dataintegrityimprovements
• targetdevelopmentandselectionprocesses
• undertakingacomprehensivereviewofallthelogisticscontractspriortore-negotiationsorre-tenderingin2006.
Customsagreedtoallrecommendationsandhasmadesignificantprogressintheirimplementation.CustomswelcomedtheANAO’srecommendationsastheywillenableCustomstofurtherenhancetheCEFs’operations.
AchievementsattheContainerExaminationFacilities
MaintaininginspectionandexaminationratesisanimportantaspectoftheCEFoperations,buttheresultfromtheincreaseinseacargoinspectionsisthemostimportantoutcome.ThesignificantdetectionslistedinFigure8onpage34areoftentheresultofcollaborationwithotherlawenforcementagencies.
Figure9showstheincreasingnumberofcontainersinspectedattheCEFsoverthepasttwofinancialyearsandthedecliningnumberofcomplaints.Increasedcomplaintsincertainmonthsareusuallylinkedtoparticularevents.Forexample,intheSeptemberquarter2004,theincreaseincomplaintscoincidedwithincreasedinspectionrates,theissuingofAustralianCustomsNotice2004/33regardingseacargoexaminationarrangementsandsignificantweather-relateddisruptionstoshipping.
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Output1 ��
�� AustralianCustomsServiceAnnualReport2004–05
Figure �: Significant Container Examination Facility detections from sea cargo, �00�–0�
Date Facility Quantity Item found
11August2004 Sydney 3361kg loosetobacco
14September2004 Melbourne 99 imitationflintlockrifles,pistolsandcarbines
12October2004 Sydney 125kg crystalmethamphetamine
14October2004 Sydney* 820kg MDMA
15October2004 Sydney 100kg loosetobacco
5November2004 Sydney 161kg MDMA
6November2004 Melbourne 1397kg loosetobacco
8November2004 Melbourne 9151kg loosetobacco
11November2004 Melbourne 304 daggersandtrenchknives
22November2004 Sydney 2000kg loosetobacco
16December2004 Melbourne 3000kg loosetobacco
21December2004 Melbourne 38200kg loosetobacco
21December2004 Melbourne 3860 cigarettes
22December2004 Melbourne 6655kg loosetobacco
22December2004 Melbourne 3505kg loosetobacco
27December2004 Melbourne 2.5m cigarettesticks
1February2005 Sydney 11083kg loosetobacco
5February2005 Sydney 12.4kgof MDMA
7February2005 Sydney 11000kg loosetobacco
22February2005 Sydney 500000 cigarettesticks
8April2005 Sydney 91kg MDMA
10April2005 Sydney 5m cigarettesticks
13April2005 Melbourne 1014kg MDMA
21April2005 Melbourne 9.9m cigarettesticks
5May2005 Melbourne 21888kg loosetobacco
10May2005 Sydney 320 assortedweapons
12May2005 Sydney 2960kg loosetobacco
12May2005 Sydney 4650kg loosetobacco
12May2005 Sydney 1m cigarettesticks
13May2005 Sydney 2900kg loosetobacco
13May2000 Sydney 1m cigarettesticks
18May2005 Sydney 11000kg loosetobacco
18May2005 Sydney 500000 suspectedfake$2coins
26May2005 Sydney 2.16m cigarettesticks
2June2005 Melbourne 4150 assortedprohibitedimportsincludingreplicafirearmlighters,springbladedknivesandnoveltylighters
7June2005 Melbourne 396kg chewingtobacco
7June2005 Melbourne 1.94kg chewingtobacco
7June2005 Melbourne 1940 softairguns
*ExaminationofaircargoattheCEF.
Figure �: Customs performance at the Container Examination Facilities
Performance indicators �00�–0� �00�–0�
NumberofTEU
Inspected(x-rayed)atCEFs
PhysicallyexaminedatCEFs
89687 128411
7562 11735
NumberofcomplaintsformallyreceivedaboutCEFoperations 295 221
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Customs teams – maritime security stepped-up
On �0 July �00�, at the Brisbane Container Examination Facility, the Prime Minister announced a $��.�m Customs maritime security funding package.
ThenewfundingwillallowCustomstoincreasethenumberofcontainersexamined,increasethenumberofAustralianportscoveredbythenationalwaterfrontclosedcircuittelevisionnetwork,maintainahighlevelofshipboardingattheirfirstAustralianportsofcallandidentifyinformationthatmayimpactonsecurityfortheAustraliancommunity.ThesemeasuresenableanevenhigherlevelofprotectionforAustraliaagainstillicitdrugs,illegalarrivals,diseaseandenhancethenation’swelfare.
Asaresultofthisfundingpackage,theBrisbaneContainerExaminationFacilityincreasedstaffinglevels,theirhoursofoperationsandthroughputofcontainersx-rayed.
At the opening of the Brisbane CEF: the Hon. John Howard
MP (Prime Minister), the Hon. Philip Ruddock MP (Attorney-
General), the Hon. Chris Ellison (Minister for Justice and
Customs), Mr John Anderson (then Deputy Prime Minister
and Minister for Transport and Regional Services), with
Vinnie (detector dog) and Customs Detector Dog Unit and
Brisbane Container Examination Facility staff.
Output1 ��
Themostcommoncomplaintswereabout:
• feeschargedasaresultofexceedingthefreestorageperiod
• thewithholdingofcontainers
• delayeddelivery.
CustomshasworkedwithStevedores,ITcontractorsandrelatedpartiestoimproveprocessestoreducethenegativeimpactonimporters.
Effective management of new and existing technologies
Customsborderprotectioncapabilitiesaremulti-purposetodetectthreatssuchasnarcotics,explosivesandchemicalandradioactivesubstances.Customshasapanelofexpertstoadviseandassistinselectingnewtechnology.Toensureeffectivemanagementoftechnologies,Customsmaintainsandupgradesexistingequipment,andmonitorsdevelopmentsintechnologythroughlinkswithsuppliers,
researchanddevelopmentagenciesandacademicexperts.CustomsonlydeploysnewtechnologyafterrobusttechnicalandfieldevaluationprocessesdemonstrateitssuitabilityforCustomsoperationalneeds.
Anumberofnewtechnologyprojectswerefundedin2004–05aspartoftheGovernment’selectioncommitmentsandasprioritiestoenhancemaritimeandaviationsecurity.
Container Examination Facility x-ray image.
Theseprojectsinclude:
• biologicalandchemicalagentscreening—$20.5moverfouryearsforthepurchaseofnewtechnologyforchemicaldetectionincluding:ramanspectrometers,gaschromatograph-massspectrometers(GC-MS),ionmobilityspectrometers(IMS)andimmuno-assaytracedetectors
• mailscreeningtechnology—$13.2moverfouryearsforthepurchaseandinstallationofadvancedautomaticx-raymachinesattheSydneyGatewayFacilityandtheMelbourneAirmailTransitCentre.Thisfundingwillalsocovermetal-detectiontechnologyforgeneralmailitems
• extensionofwaterfrontclosedcircuittelevisionnetwork(CCTV)—$22.4moverfouryearstoextendtheexistingwaterfrontCCTVsystemfromthecurrent32proclaimedportstoall63proclaimedports
• neutronscannertrial—$8.4movertwoyearsforthefieldtrialofnewneutronscanningtechnologydevelopedbytheCommonwealthScientificandIndustrialResearchOrganisation(CSIRO)capableofscanningaircargocontainers.
Radiationdetectiontechnologies
Thefleetofradiationdetectorsisbeingexpandedtoinclude119radiationpagersand31radiationidentifiers.ItisexpectedthatthesewillallbereceivedbyCustomsanddeployedacrossCustomsoperationalenvironmentsbytheendof2005.Thetrainingprogramwasrevisedtoreflectthenewoperationalprioritieswithanemphasisoncounterterrorismrelatedsecurityapplications.Thistrainingprogramincludesthetrialofnewcomputerbasedtrainingtechniques.
Chemicaldetection
Customsdeployednewtracedetectionequipmentinkeyoperationalareas.Thenewdualmode(narcotics/explosives)ionmobilityspectrometersreplacedasinglemode(narcotics)spectrometer.Thirty-nineunitsofthedualmodeinstrumentsaredeployedwithfurtherprocurementplannedfor2005–06.
Fiveunitsofselectedionflowtubemassspectrometers(SIFT-MS)werepurchasedanddeployedattheCEFsinMelbourne,Sydney,Brisbane,FremantleandAdelaide.Designedtodetectawiderangeofchemicalcompoundsquicklyandaccurately,theSIFT-MSunitsalsoreplacedthelaborious,costlyandtime-consumingmethodofchemicaltesttubesforfumigantdetection.
Customsalsopurchased15ramanspectrometers,capableofrapid,non-destructiveidentificationofsolidandliquidchemicalsubstances,anddeployedtheseinkeyoperationalareas.
Inconsultationwiththemanufacturers,Customscontinuedtofinetunetheimmuno-assaytracedetectorandGC-MStoensuretheymeetCustomsrequirements.FurtherevaluationofothertechnologiesforchemicaldetectioncontinuedtoidentifysuitabletechnologiestoenhanceCustomscapabilitytodetectsubstancesofconcern.
Closedcircuittelevision(CCTV)
Newinstallationsandexpansionsin2004–05enhancedtheCustomsCCTVsurveillancesystemsatairportsandseaports.
Videosurveillancerecordingfacilitieswereupgradedfromanaloguetodigitalinfrastructureatsevenoftheeightinternationalairports.AdelaideairportisscheduledforupgradingwhenthenewterminalbuildingiscompletedinOctober2005.Videosurveillancecoverageoftheoutwardsprimarylineareaatalleightinternationalairportswassignificantlyenhancedwiththeplacementofadditionalcameraservices.TheexistingCCTVsurveillancecoverageatBrisbane,Coolangatta,Melbourne,Perth,andSydneyinternationalairportswasenhancedwiththeinstallationofadditionalcameras.
CCTVsurveillancecoverageatseaportswasimprovedinAlbany,CapeLambert,DalrympleBay,Dampier,Geraldton,Gladstone,Gove,HayPoint,Hobart,Mackay,Mourilyan,PortBotany,PortHedlandandWestSwansonMelbourne.
�� AustralianCustomsServiceAnnualReport2004–05
Output1 ��
AprojecttoexpandthecurrentwaterfrontCCTVsystemtoall63proclaimedportsisunderway.Adetailedplanningprocesscommencedandincludesprioritisationoftheports,sitevisitstothe31newportsanddevelopmentofanintegrationsolutiontolinkthenewsystemtotheexistingone.TheinstallationoftheadditionalcameraswillcommenceinOctober2005.
Radiocommunications
RelocationoftheSydneyandTownsvilleCustomsHousesprovidedtheopportunitytoupgradeandenhancethecommunicationinfrastructureateachlocation.CustomsalsofittedtheSouthernOceanPatrolandResponsevessel,theOceanic Viking,withasecurelinkfordata,voiceandvideocommunicationsthroughacommercialsatellite.
Computerforensics
Customsestablishedanationalcomputerforensicscapabilitytorespondeffectivelytothegrowingneedtoaccesselectronicevidence.
CustomsworkedwithotherFederalandStatelawenforcementagencieswherematerialidentified
relatedtooffencesundertheirjurisdiction.TheexperienceofbothAustralianandinternationalagenciesinthedevelopmentofstrategiestoseamlesslyintegratecomputerforensicsbenefittedCustomsborderprotectionrole.
ToenhanceCustomsabilitiescomputerforensicsfacilities,dataacquisitionandstorageequipmentwerepurchased.Customsofficersresponsibleforcomputerforensicscontinuouslyundergotrainingtokeepabreastofeverchangingtechnology.
ACustomsofficercommencedasix-monthexchangewiththeUnitedStatesCyberCrimeCentreintheBureauofImmigrationandCustomsEnforcement,DepartmentofHomelandSecurity,toevaluatemethodsandapproachesapplicableinAustralia.
High-techcrime
TheHighTechCrimeCentre,hostedbytheAustralianFederalPolice,isresponsibleforthecoordinationofeffortstocombatseriouscrimeinvolvingcomplextechnology.CustomsparticipatedintheworkoftheCentrethroughanoutpostedofficerarrangement.
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Figure 10: Proclaimed ports in Australia
Thursday Island
Gove
Weipa
MourilyanCairns
Abott Point
TownsvilleLucinda
Mackay Hay Point
Port Alma GladstoneBundaberg
Brisbane
YambaCoffs Harbour Lord Howe
Island
NewcastlePort Botany
Port Jackson
Port Kembla
EdenMelbourneWesternport
Port Welshpool
DevonportLaunceston, Beauty PointBell Bay & Long Reach
Spring Bay
Hobart
Port LattaPort Stanley
PortlandGeelong
Port StanvacPort Giles
Port Lincoln
Thevenard
AdelaideArdrossan
WallarooPort PirieWhyalla
Port Bonython
Esperance
Albany
Bunbury
Fremantle
Geraldton
Useless LoopCape Couvier
CarnarvonExmouth
OnslowPort Walcott
Port HeadlandDampier
Broome DerbyYampi Sound
Wyndham
Christmas Is
Cocos (Keeling) Is
Darwin
Groote Eylandt
Karumba
Burnie
mass-screencontainerisedaircargoduringan18-monthfieldtrialwhichwilltestthetechnology’seffectivenessinareal-timeoperationalenvironment.
Thetrialwillalsoassessgovernmentandindustrysystemsandprocessesthatwillbeimplementedtoaccommodateamoresecureaircargoregime.CustomsandtheDepartmentofTransportandRegionalServices(DOTARS)areassessinghowthetechnologycanbestbeintegratedwithaviationsecuritymeasures.
CustomsestablishedanIndustryConsultativeGrouptoprovideCustoms,DOTARSandindustrywithacontactpointforthebroaderaircargoindustry.TheconsultativegroupalsoassistsCustomsmakedecisionsaboutindustryissuesassociatedwiththefacilityoperations.
Customs teams – neutron scanner to inspect air cargo containers
Customs is using new technology, developed with scientific experts, to find a more efficient way of checking the contents of air cargo. The neutron scanner is a good example of Customs and scientific experts working together to solve operational problems.
CommonwealthScientificandIndustrialResearchOrganisation(CSIRO)scientistsdevelopedalaboratoryprototypeoftheneutronscanner,whichdemonstratedthatitwascapableofscanningcontainerisedaircargoandprovidinginformationonthedensityandcompositionofobjects.
Basedontheoutcomeofthelaboratorytesting,theGovernmentallocated$8.4movertwoyears,aspartoftheAviation Security Initiatives,toconductafieldtrialofacommercialprototypeoftheneutronscanner.Thescannerusesgammaradiationandneutron-analysistechnologytoprovideinformationaboutthesize,shape,densityandcompositionoftheitemsbeingscanned.
AfacilityatBrisbaneAirporthasbeenpurposebuilttoaccommodatethecommercialprototypeneutronscannerunderconstructionbytheCSIRO.Thescannerwillbecommissionedinthesecondhalfof2005andwillbeusedto
The neutron scanner team, from left to right: Nicola Viney,
Michael O’Donovan, Ole Andersen, Michael Crawford and
Kristin Williams.
Detection and investigation
Illicit drugs and precursor chemicals
Customscontinuedtodevelopdrugpolicy,contributetoprojectsandprovideinputintoexternaldrug-relatedresearchtosupportoperationalfunctionsforthedetectionofillicitdrugsandprecursorchemicals.CustomscontributedtotheobjectivesoftheNationalDrugStrategy:Australia’sIntegratedFramework2004–2009byreducingthesupplyanduseof
illicitdrugsinthecommunitythroughitsdetectionsofillicitdrugsandprecursorchemicalsattheborder.
In2004–05,Customsdetectedagreaterquantity(weight)ofcocaineandMDMA(ecstasy)consignmentsattheborderthaninthepreviousyear,withadecreaseinthenumberofdetections.Customsdetectedahigherquantityandgreaternumberofheroinandamphetamine-typestimulantsattheborder.
�� AustralianCustomsServiceAnnualReport2004–05
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Figure 11: Drug detections* by mode of importation
Detections Weight (kg)^ �00�–0� �00�–0� �00�–0� �00�–0� �00�–0� �00�–0�
Air passengers and crew
Cannabis 149 79 35 1.71 4.34 0.40
Cocaine 14 63 26 17.00 77.51 40.94
Heroin 47 26 27 46.65 19.81 27.05
MDMA(Ecstasy) 20 29 15 10.30 37.89 42.59
ATS~ 13 15 7 1.06 2.40 8.06
Precursors## 66 56 23 .. .. ..
PIEDs@ 97 99 70 .. .. ..
Other** 77 56 46 .. .. ..
Cargo and postal#
Cannabis 545 574 433 16.39 704.36 4.53
Cocaine 403 590 415 43.70 53.02 52.17
Heroin 57 37 166 147.28 41.36 149.85
MDMA(Ecstasy) 291 265 154 545.89 835.06 2332.36
ATS~ 199 124 196 238.26 3.51 133.30
Precursors## 1550 726 253 .. .. ..
PIEDs@ 1181 1116 981 .. .. ..
Other** 4074 2843 1518 .. .. ..
Shipping and aircraft+
Cannabis 7 6 1 3.99 0.72 -
Cocaine - - 1 - - 100.67
Heroin 1 - - 125.00 - -
MDMA(Ecstasy) - - - - - -
ATS~ 3 1 1 0.01 0.01 9.81
Precursors## 1 - - .. .. ..
PIEDs@ - 1 - .. .. ..
Other** 5 - - .. .. ..
Total
Cannabis �01 ��� ��� ��.0� �0�.�� �.��
Cocaine �1� ��� ��� �0.�0 1�0.�� 1��.��
Heroin 10� �� 1�� �1�.�� �1.1� 1��.�0
MDMA (Ecstasy) �11 ��� 1�� ���.1� ���.�� ����.��
ATS~ �1� 1�0 �0� ���.�� �.�� 1�1.1�
Precursors## 1 �1� ��� ��� .. .. ..
PIEDs@ 1 ��� 1 �1� 1 0�1 .. .. ..
Other** �1�� � ��� 1 ��� .. .. ..
*Drugdetectionssubjecttofurtherinvestigationmightnotappear.^Weightshownmaybetheconfirmedweight(ifavailable)orthegross,netorestimatedweight. WhereweightofdetectionsofATSandMDMA(ecstasy)wasnotavailable,anestimateof0.29gpertabletwasused. Estimatedweightvaluesforprecursors,PIEDsand‘Other’drugsarenotshownasthereisnoconsistentunitofmeasureavailable.
Itemsinthesecategoriescanbemeasuredingrams,volume,doseunitorcapsules.# Includesdetectionsmadefromaircargo,seacargoandinternationalpost.+ Includesdetectionsmadefromsearchesofseapassengersandcrew,vesselsandaircraft.~ Amphetamine-typestimulants(ATS)includesmethamphetamineandamphetaminebutexcludesMDMA(ecstasy).##Precursorfiguresrefertodetectionsofchemicalsubstancesthatareprohibitedimports/exportswhichmaybeusedinthemanufacture
ofillicitdrugs.Manyprecursorsdetectedwerelikelynotintendedforthemanufactureofillicitdrugs,butwereactiveingredientsinhealthsupplements,coldandflupreparations,herbalmedicinesandweight-lossproductspurchasedontheInternet.
@PIEDsincludesteroids,DHEA(dehydroepiandrosterone/prasterone)andhormones.** ‘Other’drugdetectionsrefertostimulantsotherthancocaineoramphetamine-typestimulants,narcotics/analgesicsotherthanheroin,
psychotropics/hallucinogensotherthanMDMA(ecstasy)orcannabisproducts,andalldepressantsandsedatives.Excludesprecursors.Figuresmayvaryfromthosepreviouslypublishedduetoadjustmentsarisingfromadministrativecorrections,subsequentchemicalanalysisandfurtherinformationreceivedfromtheAFP.Detectionssubjecttofurtherinvestigationmightnotinitiallyappear.
�0 AustralianCustomsServiceAnnualReport2004–05
Figure 1�: Drug detections and significance of offence
Detections Weight (kg)*
Significance^ �00�–0� �00�–0� �00�–0� �00�–0� �00�–0� �00�–0�
Commercial
Cannabis - 1 - - 644.38 -
Cocaine 4 14 15 15.05 49.79 144.97
Heroin 17 7 10 295.61 47.78 151.27
MDMA(Ecstasy) 16 32 21 550.14 861.81 2369.49
ATS** 2 1 8 233.90 2.32 146.78
Trafficable
Cannabis 44 31 13 18.99 63.03 3.20
Cocaine 390 616 411 45.63 80.72 48.79
Heroin 86 53 179 23.32 13.39 25.63
MDMA(Ecstasy) 281 247 146 6.05 11.13 5.46
ATS** 179 117 170 5.41 3.59 4.37
Minor
Cannabis 657 627 456 3.10 2.01 1.73
Cocaine 23 23 16 0.02 0.02 0.01
Heroin 2 3 4 0.00 0.00 0.00
MDMA(Ecstasy) 14 15 2 0.00 0.00 0.00
ATS** 34 22 26 0.02 0.01 0.02
Total
Cannabis �01 ��� ��� ��.0� �0�.�� �.��
Cocaine �1� ��� ��� �0.�0 1�0.�� 1��.��
Heroin 10� �� 1�� �1�.�� �1.1� 1��.�0
MDMA (Ecstasy) �11 ��� 1�� ���.1� ���.�� � ���.��
ATS** �1� 1�0 �0� ���.�� �.�� 1�1.1�
*Weightmaybeconfirmedweight(ifavailable)orgross,netorestimatedweight.Wheredetectionsofamphetamine-typestimulantsandMDMA(ecstasy)wasnotavailable,anestimateof0.29gpertabletwasused.
^SignificanceofoffenceisbasedontheclassificationusedintheCustoms Act 1901andissummarisedas:
Heroin Cocaine CannabisCannabisresin
MDMA(ecstasy) ATS
Commercial 1.5kgandover
2kgandover
100kgandover
50kgandover
0.5kgandover
0.75kgandover
Trafficable Between2gand1.5kg
Between2gand2kg
Between100gand100kg
Between20gand50kg
Between0.5gand0.5kg
Between2gand0.75kg
Minor Lessthan2g Lessthan2g Lessthan100g
Lessthan20g
Lessthan0.5g
Lessthan2g
**Amphetamine-typestimulantsincludesmethamphetamineandamphetaminebutexcludesMDMA(ecstasy).
Commonwealthlegislationspecifyingcommercialquantitiesofamphetamineandmethamphetamine(andothernarcoticsubstances)tookeffecton10December2004.PreviousAnnualReportsassumedacommercialquantityof2kgforamphetamine-typestimulants.Thesefigureshavebeenrevised.
Figuresmayvaryfromthosepreviouslypublishedduetoadjustmentsarisingfromadministrativecorrections,subsequentchemicalanalysisandfurtherinformationreceivedfromAustralianFederalPolice.Also,detectionssubjecttofurtherinvestigation(includingcontrolleddeliveries)mightnotinitiallyappear.
�1 AustralianCustomsServiceAnnualReport2004–05
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Customs teams – more records broken
Customs was involved in some of the largest ever detections of illicit drugs in �00�–0�.
InAugust2004,CustomsandtheAustralianFederalPolice(AFP)conductedajointoperationwhichledtotheseizureof100kgofcocaine,withastreetvalueofapproximately$45m,allegedlyimportedonthebulkgraincarrierMV Marcos Dias.TheoperationinvolvedextensivesurveillanceofthevesselinAustralianwatersusingacombinationofCoastwatchDash8electronicsurveillanceaircraft,aCustomspatrolboat,thermal-imagingequipmentandCustomsclosed-circuittelevisionnetworkinAlbanyHarbour,WesternAustralia.CoastwatchundertookextensivesurveillanceofthevesselfromthetimeitenteredAustralianwaters.TheAustralianCustomsVesselBotany BayshadowedtheMarcos DiasasitenteredAlbanyHarbourandthencrewlaterassistedinthesearchofthevessel.AlbanyDistrictOfficewasalsoinvolvedintheoperationassistingbothCustomsofficersfromFremantleandtheAFP.TheAFParrestedaBoliviannationalandtwoSydneymenfortheallegedattemptedimportation.
InOctober2004,24kgofheroinwasdetectedinaparcelfromtheBow de SilveratPortBotany.Customsinspectedtheparcel,whichwasreportedasfueltestingequipment.Fivemonthslater,twofemaleMalaysiannationalswerearrestedinconnectionwiththisimport.
InOctober2004,818kgofMDMA(ecstasy)wasdetectedinthewallsofanoven,importedfromPolandthroughaircargointoSydney.AFPquicklyidentifiedandarrestedtwoNewSouthWalesmeninconnectionwiththeimport.
AtPortBotanyinNovember2004,161kgofMDMAwasdetectedinaseacargoconsignmentoriginatingfromBelgium.Thedrugwasconcealedwithincoffeebags,insidetwoboxesheldwithinaconsignmentoffurniture.
InApril2005,theworld’slargestseizureofMDMAwasmadeinMelbourneasaresultofajointoperationbytheAFPandCustoms.Theonetonneseizurewasdetectedinaseacargo
consignmentoftilesfromItaly.Thedetectionwasmadebyx-ray,whichrevealedlargecavitiesinthemiddleofeightpalletsoftiles.FourMelbournemenwerearrested.Theseizurehadanapproximatestreetvalueof$250m.
InMay2005,morethan115kgofheroinwasseizedandfivemenwerearrestedinajointCustomsandAFPoperation.Morethan399smallblocksofheroinwereconcealedwithintheroofingoftwoshippingcontainers,listedtobecarryingplasticchairs.Thedrugshadapotentialstreetvalueofmorethan$60m.Theseizure,thelargesteverofheroininSouthAustralia,wastheresultofa12-monthinvestigationinvolvingcooperationwithlawenforcementauthoritiesinBelgium,theNetherlands,ChinaandHongKong.
CustomsparticipatedinanAFPintelligenceinvestigationintotheactivitiesofatrans-nationalcriminalsyndicate,believedtobeactiveintheglobaldistributionofillicitdrugs.On8June2005,theinvestigationresultedintheseizureofapproximately11kgofsuspectedcrystalmethamphetaminehydrochlorideor‘ice’,andthearrestofthreesuspectswhowereeachchargedwithimportingaprohibitedimport.The‘ice’hadbeenimportedonaUSNavyvesselintoTownsville.
Customs and Australian Federal Police officers with part of
the world’s largest seizure of MDMA.
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�� AustralianCustomsServiceAnnualReport2004–05
Figure 1�: Number and weight (kg) of MDMA (ecstasy) detections
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50
100
150
200
250
300
350
0
500
1000
1500
2000
2500
3000
3500
• aprojectproposalfortheNationalIndustrialChemicalNotificationandAssessmentSchemeDatabase—adatabasethatwillenablemoredetailedtrackingofchemicalmovementswithinAustralia.
InApril2005,CustomsdeliveredthefirstoftenprecursortrainingcoursestoenhanceCustomsofficers’abilitytodetectandinterceptprecursorchemicalsandequipment.Thetrainingcoursesusearangeofexpertdomesticandinternationalpresentersandincorporatesachemicalfamiliarisationcomponentconductedindedicatedlaboratoryfacilities.ThecoursesassistCustomsofficersindevelopingknowledgeofchemicalprecursorsandtheirroleinillicitdrugmanufacture,aswellasfamiliarisationwithbasicpropertiesofprecursors,methodsofconcealment,misdescriptionandimportationsources.ThetrainingiscomplementedbythecreationofinformationandintelligencesharingnetworkswithexternalpartnersineachCustomsregiontobettertargetprecursordiversion.
Customsmadetwomajordetectionsofpiperonal,aMDMAprecursorchemical,inDecember2004inSydneyandinFebruary2005inMelbourne.Overthreetonnesofpiperonalweredetected.
MDMA(ecstasy)
ThequantityofMDMAdetectedincreasedfrom872kgin2003–04to2.4tonnesin2004–05,withadecreaseinthenumberofdetections(seeFigure13).
Precursorchemicals
Customsisakeynationalpartnerincollaborativeeffortstocombatthediversionofprecursorchemicals.TheNationalWorkingGrouptoPreventtheDiversionofPrecursorChemicalsintoIllicitDrugManufacture(thePrecursorWorkingGroup)involvesAustralianandStateandTerritoryGovernmentrepresentativesandmembersofhealth,lawenforcement,regulatoryandindustrybodies.
ThePrecursorWorkingGroupevaluated:
• theimpactofprecursorcontrols
• sharedintelligenceonprecursorsandclandestinelaboratories.
Customsprovidedinputto:
• afeasibilityreportandanevaluationreportintotheNationalClandestineLaboratoryDatabase
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Figure 1�: Interceptions of precursor type drugs*
�00�–0� �00�–0� �00�–0�
Air passengers and crew
Precursorforamphetaminetypesubstance^ 66 56 23
PrecursorforLSD~ - - -
PrecursorforGHB(Fantasy)+ - - -
PrecursorforMDMA(Ecstasy)< - - -
Cargo and Postal**
Precursorforamphetaminetypesubstance^ 1506 705 235
PrecursorforLSD~ 29 9 6
PrecursorforGHB(Fantasy)+ 12 11 8
PrecursorforMDMA(Ecstasy)< 3 1 4
Other^^
Precursorforamphetaminetypesubstance^ 1 - -
PrecursorforLSD~ - - -
PrecursorforGHB(Fantasy)+ - - -
PrecursorforMDMA(Ecstasy)< - - -
Total
Precursor for amphetamine type substance^ 1��� ��1 ���
Precursor for LSD~ �� � �
Precursor for GHB (Fantasy)+ 1� 11 �
Precursor for MDMA (Ecstasy)< � 1 �
*Precursorfiguresrefertodetectionsofchemicalsubstancesthatareprohibitedimports/exportswhichmaybeusedinthemanufactureofillicitdrugs.Manyoftheprecursorsdetectedwerelikelynotintendedforthemanufactureofillicitdrugs,butwereactiveingredientsinhealthsupplements,coldandflupreparations,herbalmedicinesandweight-lossproductspurchasedontheinternet.
^Precursorsforamphetamine-typestimulantsincludeephedrine,mahuang/ephedra,henylpropanolamine/norephedrine,pseudoephedrine.TheUSAFoodandDrugAdministrationintroduceddomesticcontrolsonephedrainDecember2003,whichtookeffectinMarch2004.TherestrictedavailabilityoftheseproductsislikelytohavereducedtheincidenceofindividualsimportingephedraproductsadvertisedaslegalintheUSA,unawarethatitisaprohibitedimportinAustralia.Thiswouldresultinreducedratesofdetection.
~PrecursorsforLSDincludesergometrineandergotamine.
+PrecursorforGHB(Fantasy)includegammabutyrolactone(GBL).However,GBLisalsosubjecttoabuseinitsownright,andistreatedasanarcoticsubstanceunderCustomslegislation.
<PrecursorsforMDMA(Ecstasy)mayalsobeprecursorstorelateddrugssuchasMDAorMDEA,andincludespiperonal,andsafrole,isosafrole,andmethylenedioxyphenyl-2-propanone(3,4-MDP-2-P).
**Includesdetectionsmadefromaircargo,seacargoandinternationalpost.
^^Includesdetectionsmadefromsearchesofseapassengersandcrew,vesselsandaircraft.
Figuresmayvaryfromthosepreviouslypublishedduetoadjustmentsarisingfromadministrativecorrections,subsequentchemicalanalysisandfurtherinformationreceivedfromAustralianFederalPolice.Also,detectionssubjecttofurtherinvestigation(includingcontrolleddeliveries)mightnotinitiallyappear.
Targetingamphetamines
ProjectPRISM(PrecursorsRequiredInSyntheticManufacture)isaninternationalprojectonamphetamine-typestimulantprecursorscoordinatedbytheInternationalNarcoticsControlBoardoftheUnitedNations.CustomsisthecentralnationalauthorityandactsasthesinglecontactpointfordomesticandinternationalagenciesforProjectPRISM.TheProjectoperatesbydevelopingandimplementingstandardmechanismsandprocedurestoimprovetheapplicationofregulatoryandlawenforcementcontrolsonamphetamine-typestimulantprecursors.Supportingactivitiesinclude:
• identificationofsuspiciousshipments
�� AustralianCustomsServiceAnnualReport2004–05
• identificationofpatternsofoperationandsmugglingroutes
• preventionactivitiessuchasawareness-raisinginitiatives.
CustomsisalsoamemberoftheProjectPRISMTaskForce,thegoverningbodyoftheProject,andinthiscapacityactsastheregionalfocalpointforOceania.Thisroleinvolvessharinginformationonregionalprecursorseizuresandtrendsandlaunchingandcoordinatingregionaloperations.
In2004–05,theweightofamphetamine-typestimulantsdetectionsincreasedfrom6kgto151kg.Thenumberofamphetamine-typestimulantsdetectionsincreasedfrom140to204
Figure 1�: Number and weight (kg) of amphetamine-type stimulants* detections
*Amphetamine-typestimulantsdoesnotincludethecrystallinevarietyofmethamphetaminecalled‘ice’.ExcludesMDMA(ecstasy).
Figure 1�: Amphetamine-type stimulants and crystalline methamphetamine (ice) detections by weight (kg)
Amphetamine-type stimulants# Crystalline methamphetamine (ice)^
Detections Weight (kg)* Detections Weight (kg)*
�00�–0� 198 6.15 17 233.18
�00�–0� 128 3.55 12 2.37
�00�–0� 186 27.31 18 123.85
*Weightshownintheabovetableisanestimation.Weightiscalculatedusing0.29gmpertabletwhereaweightwasnotavailable.Somesmallquantityshipmentsofamphetamine-typestimulantsdonothaveweightrecorded,sotheseweightfiguresareaslightunderestimate.
#Amphetamine-typestimulantsincludeamphetaminesandmethamphetaminesinliquid,capsule,paste,powderortabletform.ItdoesnotincludeMDMA(Ecstasy)orthecrystallinevarietyofmethamphetaminecalled‘ice’.
^Crystallinemethamphetamineisshownseparately,butwouldusuallybeincludedinfiguresforamphetamine-typestimulants.
Figuresmayvaryfromthosepreviouslypublishedduetoadjustmentsarisingfromadministrativecorrections,subsequentchemicalanalysisandfurtherinformationreceivedfromAustralianFederalPolice.Also,detectionssubjecttofurtherinvestigation(includingcontrolleddeliveries)mightnotinitiallyappear.
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Potentformsofmethamphetamine
TheNationalDrugLawEnforcementResearchFund(NDLERF)hascommissionedresearchtoexaminetheincreasedprevalenceofmorepotentformsofmethamphetamineinAustralia.Customs,withtheNewSouthWalesPolice,isco-investigatorwiththeNationalDrugandAlcoholResearchCentre.Theprojectisfocusingonthesupplyanddistributionnetworksformethamphetamine,especiallycrystallinemethamphetamine(ice).
Apreliminaryreport,The Methamphetamine Situation in Australia: A Review of Routine Data Sources,wasreleasedin2004asatoolforpolicymakersandresearchers.
ThefinaldatacollectionphasehasbeencompletedandthefinalreportwillbereleasedbytheNDLERFBoardinearly2005–06.
ThenumberandweightofmethamphetaminedetectionsbyCustomsisfurtherdetailedbelow.
Figure 1�: Number and weight (kg) of crystalline methamphetamine* detections
*Includesonlythecrystallinevarietyofmethamphetaminecalled‘ice’.ExcludesMDMA(ecstasy).
X-ray image of candles. Candle cut open to reveal the drug, ‘ice’.
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�� AustralianCustomsServiceAnnualReport2004–05
ToughonDrugsinSport
TheprimaryfocusoftheGovernment’sToughonDrugsinSportStrategyistopreventtheillegitimateuseofperformance-enhancingdrugsbyathletes.Itencompassesarangeofregulatory,legislative,policy,researchandeducationalanti-dopinginitiatives.Customshaskeysupplyreductionresponsibilitiesunderthestrategy.
AustraliaalsosupportstheWorldAnti-DopingCodeandtheCopenhagenDeclarationandhasacommitmenttoacomprehensiveanti-dopingframework.ThereadyavailabilityofCustomsinformationforuseinanti-dopinginvestigationsandhearingsisanessentialelementofsuchaframework.
Interceptionsofperformanceandimageenhancingdrugsarebelow.
IntergovernmentalCommitteeonDrugs(IGCD)
CustomsisamemberoftheIGCD,aforumofseniorofficerswhorepresenthealthandlaw
enforcementagenciesfromeachAustralianjurisdictionandNewZealand.TheIGCDadvisestheMinisterialCouncilonDrugStrategyondrug-relatedmattersandimplementsNationalDrugStrategypoliciesandprograms.
AkeyoutcomefromtheIGCDin2004–05wastheestablishmentofanIGCDSchedulingWorkingPartyonControlledSubstancestorecommendwhichsubstancesandplants,withappropriatequantitiesforeach,shouldbeincludedintheproposedSeriousDrugOffenceslegislation.TheWorkingPartywillalsoreviewthevoluntaryPlasticsandChemicalsIndustriesAssociation(PACIA)NationalCodeofPracticeforSupplyDiversionintoIllicitDrugManufacture(thePACIACode).CustomsalsoprovidestheSecretariatfunction.
Customsroleindrugresearch
ClosepartnershipshavebeendevelopedwithpeakresearchbodiessuchastheNationalDrugandAlcoholResearchCentre(NDARC)throughCustomsassistanceinthepreparationofthe
Figure 1�: Interceptions of performance and image enhancing drugs
�00�–0� �00�–0� �00�–0�
Air passengers and crewSteroids 63 75 54
DHEA~ 29 19 10
Hormones# 5 5 6
Cargo and Postal*
Steroids 632 724 705
DHEA~ 372 237 176
Hormones# 177 155 100
Other^Steroids - 1 -
DHEA~ - - -
Hormones# - - -
TotalSteroids ��� �00 ���
DHEA~ �01 ��� 1��
Hormones# 1�� 1�0 10�
* Includesdetectionsmadefromaircargo,seacargoandinternationalpost.^Includesimportationsviaseapassengersandcrew,vessels,aircraftanddetectionsarisingfrompost-borderoperations.~DHEAisdehydroepiandrosterone/prasterone.# DetectionsofEPO,Darbepoetinalphaandnaturalandmanufacturedgonadotrophinsareincludedinthefigures
forhormones.Figuresmayvaryfromthosepreviouslypublishedduetoadjustmentsarisingfromadministrativecorrections,subsequentchemicalanalysisandfurtherinformationreceivedfromtheAustralianFederalPolice.Also,detectionssubjecttofurtherinvestigation(includingcontrolleddeliveries)mightnotinitiallyappear.
Output1 ��
IllicitDrugReportingSystem,ayearlyreportbyNDARConAustralia’sdrugenvironment.
Customsalsocontributedtoexternaldrug-relatedresearchsuchastheAustralianCrimeCommission’sIllicitDrugDataReport2003–2004(publishedin2005).
CustomsplayedaleadroleinNDLERFthroughrepresentationonitsBoardofManagement.Customswasactivelyinvolvedinanumberofresearchprojects,includingdevelopingperformancemeasurementsfordruglawenforcementandresearchonthescaleandscopeofdrugmarketactivity.
CocaineuseinNewSouthWalesandVictoria
NDARCisconductingaprojectwhichaimstodeterminethescaleoftheAustraliancocainemarket,especiallyaffluentcocaineuserswhoarelesslikelytocometotheattentionofhealthandlawenforcementauthorities.TheprojectcommencedinApril2004.CustomsisrepresentedontheReferenceGroup.AdraftreporthasbeencirculatedtoReferenceGroupmembers.
Performancemeasurementindruglawenforcement
CustomsisworkingwiththeAustralianInstituteofCriminologyonaprojecttoenhanceperformancemeasurementindruglawenforcementinAustralia.
Thefirststageoftheprojectwascompletedthisyear.Thisinvolvedreviewofexistingsystemsandprocessesanddevelopmentofatrialperformancemeasurementsystem.Thesecondstagewilltrialperformancemeasures.
CustomsisthetrialagencyatthenationallevelandNewSouthWalesPoliceisthetrialagencyatthejurisdictionallevel.
AprojectteammemberfromtheAustralianInstituteofCriminologyislocatedinCustoms.
UnitedNationsinternationaldrugcontrolprograms
CustomscontributedtoAustralia’sreportingtotheUnitedNationsinthreereports:
• the2004annualreportontheoperationoftheinternationaldrugcontroltreaties
• theBiennialReportsQuestionnaireforreportingontheactionplansandmeasuresadoptedbytheUnitedNationsGeneralAssemblySpecialSessionontheWorldDrugProblem
• theannualreporttotheInternationalNarcoticsControlBoardfortheimplemen-tationofArticle12oftheUnitedNationsConventionAgainstIllicitTrafficinNarcoticDrugsandPsychotropicSubstances1988.
UnitedNationsCommissiononNarcoticDrugsResolutions
Australiaco-sponsoredseveralresolutionsatthe48thSessioninMarch2005.Oneresolutionstrengthenedinternationalcooperationtopreventtheillicitmanufactureofandtraffickinginnarcoticdrugsandpsychotropicsubstances.AnotherpromotedsharinginformationonemergingtrendsinsubstancesnotcontrolledundertheinternationaldrugcontrolConventions.
Identity fraud
CustomsparticipatesinseveralforumstoaddressidentityfraudincludingtheOpalGroupandtheCommonwealthReferenceGrouponIdentityFraud.
OpalGroup
TheOpalgroupiscomprisedofanumberofCommonwealthagenciesandischairedbytheAustralianFederalPolice.Itmeetsquarterlytoshareinformationonlatesttrends.
CommonwealthReferenceGrouponIdentityFraud
CustomsparticipatesintheCommonwealthReferenceGrouponIdentityFraudwhichischairedbytheAttorneyGeneral’sDepartment.TheReferenceGroupisresponsiblefordevelopingawhole-of-governmentstrategytoenhanceidentificationandverificationprocessesinCommonwealthagencies.
CustomsisparticipatinginworkinggroupsestablishedbytheReferenceGrouptofocusonspecificissuessuchasauthenticationstandards,integrityofidentitydata,documentverificationservicesandstandardframeworksforproofofidentity.
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Customs teams – investigation operation
In August �00�, Customs officers carrying out mail-screening duties in Brisbane identified and intercepted a parcel containing �.�kg of ephedrine. The ephedrine, a precursor chemical used in the manufacture of methamphetamine, was concealed in containers of diet supplements imported through the postal system from Canada.
Followingtheinterception,CustomsinvestigatorscoordinatedamanageddeliveryoperationinQueenslandandinvestigationsleadingtoprosecutionsinQueenslandandSouthAustralia.WarrantswereexecutedbyCustomsinvestigatorsinthreestatesandassetsinexcessof$350000wereseizedasproceedsofcrime.
InMay2005,aQueenslandmanenteredaguiltypleaandwassentencedto15monthsimprisonment.ASouthAustralianmanalsoenteredguiltypleasformoneylaunderingandoperatingbankaccountsinfalsenamesaswellastheimportationoftheephedrine.Sentencingisduelaterin2005.
Theresultcamefromeffectivedetectionandgreatteamworkthatinvolvedco-operationbetweenCustomsinvestigatorsandpoliceinQueensland,SouthAustraliaandVictoria.
TheGovernmentprovided$13.2moverthreeyearstodevelopmailscreeningtechnologyandincreaseborderprotection.
�� AustralianCustomsServiceAnnualReport2004–05
Weighing the evidence found. Alex O’Brien, Brisbane Investigations (left) and Darrald Blundell, Postal Operations.
Output1 ��
Money laundering
FinancialActionTaskForce(FATF)–AsiaPacificGroup(APG)
Australia’santi-moneylaunderingregimeiscurrentlybeingreviewedbyFATF.AsamemberoftheFATF–APGCoordinationGroup,CustomsisinvolvedbothincontributingtotheAustralianresponsetotheFATFevaluationquestionnaireandmetwiththeFATFevaluationteamwhichvisitedCanberrainMarch2005.
CustomscontributedtothedevelopmentofAustralia’slegislativeresponsetochangesintheFATFrecommendations,especiallyforcashcourierissues.Thisinvolvementwillcontinuethroughtopassageoflegislationanticipatedin2006.
Corruption
ConventiononCombatingBriberyofForeignPublicOfficials
Inthefirsthalfof2005,Australia’scompliancewiththeConvention on Combating Bribery of Foreign Public Officials in International Business Transactions wasreviewedbytheOrganisationforEconomicCooperationandDevelopment(OECD).CustomscontributedtotheAustralianresponsetotheOECDevaluationquestionnaireandmetwiththeOECDevaluationteaminJune2005.
CustomsundertookseveralstepstoraiseawarenessoftheConventionamongCustomsstakeholders,includingprovidinginformationontheCustomsInternetsite.Theoutcomeofthereviewisnotyetfinalised.
Investigations
CustomsinvestigatesseriousCustomsoffencesincludingtheillegalmovementofprohibitedandrestrictedgoodsacrosstheAustralianborder.CustomsalsoconductsfinancialinvestigationsinaccordancewiththeProceeds of Crime Act 2002forrecoveryofassetsassociatedwithcriminaloffences.
CustomsinvestigatorsworkaccordingtotheAustralianGovernmentInvestigationStandardsandtheCommonwealthFraudControlGuidelines2002.
Figure19summarisesthenumberofmattersinvolvingtheimportandexportofprohibitedandrestrictedgoodsmanagedbyCustomsInvestigationsBranch.Thegradualriseinthenumberofmattersreferredforinvestigationreflectstheincreasingrateofdetectionsattheborder.
Figure 1�: Summary of investigations activities concerning the illegal import and export of prohibited and regulated goods such as weapons, performance enhancing drugs, precursor chemicals, child pornography, flora and fauna
�00�–0� �00�–0� �00�–0�
Referralsreceived* 1879 2033 2368
Casesadopted 627 561 387
Casescompleted^
withprosecution(throughcourts) 128 112 106
withoutprosecution 504 427 274
Caseswhereprosecutionbriefscompleted^ 134 119 95
* AreferraliswhereinformationispassedtotheCustomsInvestigationsBranchforfurtherinvestigation.Acaseisareferralthatisfoundtowarrantfurtherexamination.Wherethatexaminationfindssufficientevidencetosatisfyacourtthatanoffencewascommitted,abriefofevidence,orprosecutionbrief,ispreparedfortheCommonwealthDirectorofPublicProsecutions(forcriminalmatters)ortheAustralianGovernmentSolicitor(forcivilmatters).Insomecases,prosecutiondoesnottakeplace.Anexampleofthisiswhere,ratherthanprosecuting,thegoodsinquestionareseizedandawarningissued.
^Includescasesadoptedinpreviousyears.
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CustomscontinuestoworkjointlywithotheragenciesforoffencesdetectedattheAustralianborderthatarealsorelatedtootherCommonwealthandStatejurisdictions,suchasfirearmtrafficking.
Customsbecameanauthorisedagencyempoweredtoundertakeinvestigationactivityinaccordancewiththe Proceeds of Crime Act 2002whentheActenteredintoeffectinJanuary2003.Duringthefinancialyears2003–04and2004–05,Customsgraduallyincreasedattentiontotheidentificationandrecoveryofcriminalassetsassociatedwithseriousimportandexportoffences.Fourcaseswereinvestigatedinthatperiodandoneoftheseinvestigationsresultedintherestraintofallegedcriminalassets,havinganestimatedvalueof$370000.
Managed deliveries
TheCustomsActrequiresthattheMinisterforJusticeandCustomsreportannuallyanymanageddeliveriesundertakenbyCustomsofficersinthecourseoftheirduty.Amanageddeliveryreferstothepracticeofarrangingthedeliveryofanyquantityofprohibitedgoodsorsmuggledgoodsintothepossessionofapersonsuspectedtohavecommittedanoffence,andwhoisexpectingthedeliveryofthosegoods.
Customsconducted18manageddeliveriesfortheillegalimportandexportofprohibitedandregulatedgoods.Prosecutionactionhascommencedinrelationtofiveofthesemanageddeliveriesandinvestigationcontinuesinrelationtotenothers,withafurtherthreecasesterminated.Sevendefendantsinthesemattersenteredguiltypleastooffencesincludingimportationofprecursordrugs,moneylaunderingandevasionofCustomsduty.
Planning for the future
FutureplansforOutput1areto:
• commencefieldtrialoftheneutronscanneratBrisbaneairport
• evaluateportaltechnologycapableofdetectingexplosivesandnarcoticsonpeople
• deploynewequipmentcapableofchemicaldetection,suchasramanspectrometersandimmunoassaytracedetectors
• continuetheimplementationoftheANAOrecommendationsontheCEFs
• developavesselprofilecapabilityinINTERCEPT
• investigatethefeasibilityofawirelessconnectiontoCustomssystemsforusebyCustomsofficersworkingoutsidetheofficeintheoperationalenvironment
• developjointbreeding,traininganddeploymentarrangementsfortheDetectorDogProgramwiththeAustralianFederalPolice
• balanceCustomsneedfordetectordogswithrequestsforassistancebyoutsideagencies.
Output2 �1
Output �
Facilitation of the legitimate movement of people across the border, while identifying illegal movements
Output2pricingisshowninthefinancialstatementsonpage210.
ThisOutputcoversprocessingofpassengers,crewandcraftarrivinganddepartingAustraliabyseaorair,includingtheidentificationofpersonsofinterestconsistentwithimmigration,health,familylawandotherlawenforcement,andnationalsecurityrequirements.
Keyobjectivesin2004–05wereto:
• accessadditionalairlinereservationsystems
• progresstheSmartGatetrialandinformgovernmentoftheoutcomesofthetrial
• enhancecounterterrorisminitiativesinairports
• investigatemethodstofacilitatepassengersthroughinternationalairandseaportswhilemaintainingborderprotection
• developandimplementapassengerenforcementtrainingprogram
• enhancepassengerenforcementoperations.
Keyachievementswere:
• increasedaccesstoflightandpassengerinformationheldinairlinecomputerreservationandcontrolsystemsto85percentofpassengersarrivinginAustralia
• additionalpre-arrivalassessmentconductedagainstindicatorsofpotentialterroristorcriminalactivity
• extensionoftheSmartGatetrialduring2004–05.Fundingof$74.607mwasreceivedinthe2005–06Budgettoimplementautomatedborderprocessingnationally
• improvedfacilitationsuchasstreamlined‘backofthehall’processing,employmentofadditionalstaff,redesignedred/greenexitsandintroductionofmoreefficientqueuingsystems
• deliveryofcomprehensivetrainingpackagestoallstaffandcreationoffocusgroupsatallairportstoimplementcounterterrorisminitiatives
• finalisationofthepassengerenforcementcomponentsoftheCustomsTraineetrainingmaterial
• developmentanddeliveryofadeceptionanddetectiontrainingcourse
• implementationofaNationalAirportPlanningInterface
• developmentandintroductionofanairportplanningmodel.
Afterseveralyearsoflowandnegativegrowthinpassengernumbersbroughtaboutbyglobalterrorismandhealththreats,therewasasignificantgrowthinpassengernumbersin2004–05.Theextentofgrowthinthefirsthalfof2004–05presentedsignificantchallengesforCustoms.Maintainingservicelevelsandeffectivebordersecuritycapabilitywithincreasedpassengernumbersrequiredafocusedandinnovativeapproach.
ThiswasparticularlysoduringtheChristmasperiod.Customsinitiativestobettermanageresources,improveproceduresandusetechnology,ensuredthatreasonablelevelsofpassengerfacilitationweremaintained.
Customscontinuedtoinvestigatetechnologicalimprovementssuchaspassengerscreeninginadvanceofarrivalandbiometrics.ImplementationofthesemeasuresimprovedCustomsdetectionratesandfacilitatedthelegitimatemovementofpeopleacrosstheborderwhileassistingwiththeidentificationofillegalmovements.
CustomsappliesariskassessmentprocesstoidentifypassengerswhomightposeathreattoAustralia.Itreliesoninformationandintelligencefromawiderangeofsourcesandsophisticatedprofilingandanalysistoolstotargetinterventionswhileallowingthevastmajorityofpassengerstoproceedunhindered.
AllpassengersarecheckedagainstimmigrationandlawenforcementalertsystemsbeforetheyarriveinAustralia.Customsalsoincreaseditscapacitytoconductpre-arrivalassessmentagainstindicatorsofpotentialterroristorcriminalactivityto85percentofarrivingpassengers.Thispre-screeningresultedinmoreefficientprocessing.Customsofficialsattheborderconcentratedtheireffortsonthemuchsmallernumberofpassengerswhowerenotpre-screenedorwhowereassessedasbeingahigherrisk.
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Facilitation of the legitimate movement of people across the border
Facilitation rates
Atotalof20.7millioninternationalairpassengerswereprocessedin2004–05,comparedwith18.6millionin2003–04.Theincreaseof11.5percentreflectsagrowthintheinternationalaviationindustryandtourismmarket.
Customshasanagreedgovernmentstandardprocessingtargetthatrequires95percentofairpassengerstobeprocessedwithin30minutesofarrival.
Customsachievedthetarget.Ofthe10.4millionpassengersprocessedinwards,95.1percentwereprocessedwithin30minutes.
Figure21illustratesthepercentageofincominginternationalarrivalsclearedattheentrycontrolpointwithin30minutes,asaproportionofallincominginternationalairpassengers.
ThecontrolpointiswherepassengersaresubjecttoCustomsandImmigrationformalities.Theformulaassumesadelaybetweenaircraftarrivalandthetimeapassengerarrivesattheentrycontrolpoint.Thedelayistailoredforeachairportandvariesbetween12and17minutes.
Challengestomaintainingprocessingratesin2004–05included:
• theintroductionofnewpassengerdutyconcessionthatcameintoeffecton1February2005
• disruptionstotheflowofpassengerscausedbyterminalinfrastructureworks
• reassignmentofstafftomeetnationalpriorities
• theassignmentofnewlytrainedstafftotheprimaryline
• offschedulearrivalofaircraft,particularlyduringpeakhours.
Figure �0: Performance against targets set in the �00�–0� Portfolio Budget Statement – Output �
Quality/quantity performance measures Target* Actual
Facilitate legitimate movement of people
Quality
ProportionofarrivinginternationalairpassengersprocessedthroughtheEntryControlPointwithin30minutesofarrival
95% 95.1%
Percentageofarrivingpassengersprocessedviaadvancepassengerclearanceprocesses
90% 98%^
Quality
Numberofinternationalpassengers(airandsea) Arrivals10305000 10530367Departures10253000 10419944
Numberofinternationalcrew(airandsea) Arrivals878000 921435Departures872000 923767
Prevent illegal movements across the border
Quality
NumberofairpassengerreferralstoImmigrationandHealth Immigration** 266731
Health** 3707
Price $10�.���m $11�.���m
* Targetsmaybeperformancetargets,serviceleveltargetsorestimates.
**Performancetargetscannotbeestimatedthroughanyreliablestatisticalorothermethod.
^ FiguressourcesfromtheDepartmentofImmigrationandMulticulturalandIndigenousAffairsandtakenasat30June2005.
Output2 ��
Improvingairportflow
Internationalpassengernumberssignificantlyincreasedincomparisonto2003–04.TheAustralianTourismCommissionbelievesthatthistrendislikelytocontinue.Aspassengernumbersgrow,awholeofairportapproachwillbenecessarytomaintainhighprocessingstandardswithoutplacingunduepressureonanysingleaspectofairportoperations.
Customsiscontinuallyworkingwithairportoperators,airlinesandotherborderagenciestoimprovetheflowofpassengersthroughairports.Thisyear,theworkfocusedonissuessuchas:
• theimpactofgateallocationontimingofpassengerarrivalattheprimaryline
• jointinvestmentinqueuingaidssuchastensabarriersandsignage
• actionbyairportoperatorstoexpandreclaimandexaminationareastobetterprocesspeakhourpassengerloads
• redesigningred/greenexitsinMelbourneandSydneytocreateamoreefficientflowofpassengersatthesecondaryexaminationpoint.
Customsalsoredeployedstafftoairportsandrecruitedadditionalstaffinresponsetoincreasedworkloadpressures.
Figure �1: Proportion of international air passengers processed within �0 minutes of arrival, by arrival airport
Atthesametime,Customsisexploringavenuesforuseofnewtechnology,includingautomatedprocessingsystemsusingbiometrictechnology.
National Passenger Processing Committee (NPPC)
ThemajorroleoftheNPPC,chairedbyCustoms,istodevelopwhole-of-governmentpolicyapproachestoprocessinginternationalairpassengers.ThecommitteealsocoordinatesvariousworkforCommonwealthauthoritiesatairportsrelatedtopassengerprocessingresponsibilities.
Significantissuesaddressedin2004–05includedautomatedborder-processinginitiatives,designationofinternationalairports,internationalhealthregulations,responsetoincreasedpassengernumbersandtheplannedintroductionofnewlargeaircraft.
AmajorissuefacingNPPCisinternationalairlinesandchartersseekingtooperateinternationalservicestoregionalairportsinAustralia.Thishasasignificantimpactonborderagencyresourcingandservicelevels.
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SmartGate
SmartGate,anautomatedpassengerprocessingsystem,hasbeentrialledbyCustomssinceNovember2002.Theprimaryobjectiveofthetrialwastodevelopandintroduceasystemofself-processingutilisingface-recognitionbiometrictechnologytoconfirmidentityandstreamlinethetravellerfacilitationprocess.
Theprovisionof$3.1mtoCustomsinthe2004–05Budgetallowedfurtherresearchanddevelopment.ThefundingenabledCustoms,withtheassistanceofitsstrategicpartnerSAGEMAustralasia,toextendthetrialtoasecondinternationalairportandtoholdersofprototypeAustralianbiometricpassportsandselectedfrequentflyers.
TheexpansionoftheSmartGatetrialtoselectedfrequentflyermembersmorethandoubledtheenrolledusersinthefour-monthenrolmentperiod.Inexcessof225000SmartGatetransactionshavebeenrecordedsincethecommencementofthetrial.
Fundingof$74.607mwasreceivedinthe2005–06Budgettoimplementautomatedborderprocessingnationally.
Identifying illegal movements
Pre-arrival screening of passengers
Customsincreasedaccesstoflightandpassengerinformationheldinairlinecomputerreservationanddeparturecontrolsystemsfromsixairlines
Customs teams – SmartGate system improves passenger facilitation and border security
The Traveller Strategies team in Customs successfully developed an automated border control system using face recognition for identity verification. SmartGate uses the biometric chip in the prototype Australian ePassport to quickly and securely process users through the Australian border.
Withthe$3.1mallocatedinthe2004–05Budget,CustomswasabletoincorporateapassportchipreaderintoanewSmartGatekiosk.ThisallowsSmartGatetousetheimagecontainedwithintheprototypeAustralianePassport,ratherthanstoredimages,formatchingwiththepersonpresentingattheSmartGatekiosk.
CustomsovercamemanychallengestoachievethisoutcomewithinthetimeframessetdownbytheGovernment.On13December2004,CustomsinstalledthenewePassportSmartGateatSydneyandMelbourneairports,nearlyonemonthaheadofschedule.Around2000volunteerQantascrewwereissuedwiththeprototypeePassportfortheirofficialtravel.TheywillbeabletouseePassportSmartGateatSydneyandMelbourneairports.
CustomsworkedinclosepartnershipwiththeDepartmentofForeignAffairsandTradeandtheDepartmentofImmigrationandMulticulturalandIndigenousAffairstotrialePassportSmartGate.
EvaluationsofthenewkioskbyDefenceScienceandTechnologyOrganisationfoundthatfacerecognitionsoftwareusedinePassportSmartGateperformedexceptionallywellwhenusingthesinglepassportimageasthesourceformatchingwiththepersonpresentingattheSmartGatekiosk.
Qantas crewmember uses the
SmartGate kiosk at Sydney Airport.
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attheendof2003–04to16airlinesinMay2005.Customsalsohasaccesstoafurthersixairlinesthroughasimplifiedversionoftheanalysissoftware.Customsplanstoconnecttoafurtherthreeairlinesbytheendof2005.
ThePassengerAnalysisUnitanalysestheinformationincooperationwithCustomsoperationalunitsandotherCommonwealthagenciestoidentifyandreferhighrisktravellersarrivinganddepartingAustralia.AccesstoandanalysisofairlinereservationsystemsdataisanintegralcomponentofCustomspre-arrivalriskassessmentcapability.
In2004–05,Customsmade126requestsforidentityinformationunderss213A(3)orss213B(2)ofthe Border Security Legislation Amendment Act 2002.
Aviation security
AninternalbackgroundpaperaboutpossiblesecurityrisksthatexistedatSydneyAirportin2003attractedmediaattentioninMay2005duetoitsunintendedpublication.ThepaperwasusedasaguidebyCustomsofficersworkingattheairport.Customsissuedastatementoutliningthestatusofthebackgroundpaper,recentimprovementsCustomshasundertakeninairbordersecurityandstatedthatwhereCustomsidentifiedcriminalactivityintheairportenvironment,itadvisedtheresponsibleagencies.
Customs teams – improving air border security
Customs plays an integral role at Australia’s international airports facilitating passengers and cargo into and out of the country, and monitoring and protecting the security of tarmacs around Australia. Brisbane Airport is one of Australia’s international airports that has a specialised team of officers dedicated to air border security.
Prioritiesaretopreventanddetecttheimportingofillegalgoodsintothecountrythroughconcealmentonaircraft.
Theteamdoesthisbygatheringintelligencefromlocal,interstateandinternationallawenforcementagenciestoensureCustomsresourcesareconcentratedonriskassessedtargets.Byexchanginginformationwithotheragenciesabroaderviewofconcealmentmethodsandtrendsisalsoobtained.
Allairbordersecurityofficersarecertifiedinaircraftsearchthroughanintensivetrainingcoursecoveringthetheory,practicalandsafetyissuesofsearchingdifferenttypesofaircraft.A100percentaircraftsearchmayinvolvethecompletedismantlingofvariousinternalstorageareas,includingthetoiletandkitchenfacilities.Technologyandtoolsusedinthesesearchesincludeportablevideoequipment,telescopicmirrorsforsearchinginaccessibleareas,narcoticdetectionandidentificationkits,closedcircuittelevisionsurveillanceandtheCustomsfirearmsandexplosivesdetectordogs.
Adam Crosby, Customs officer from the air border security
team at Brisbane Airport.
Output2 ��
�� AustralianCustomsServiceAnnualReport2004–05
Advance Passenger Processing enhancements
InJanuary2003,legislationwasintroducedmakingitmandatoryforairlinesservingAustraliatoprovidetheDepartmentofImmigrationandMulticulturalandIndigenousAffairs(DIMIA)andCustomswithinformationonallpersonstravellingtoAustralia.
AdvancePassengerProcessingwasintroducedinJanuary2004.Sincethencrew,transitingpassengersandSpecialPurposeVisaholdershavebeenprocessedwithAdvancePassengerProcessing.TheprocessingofpersonsenteringbyseaincludingpassengersandcrewofcruiseshipswerealsoprocessedunderAdvancePassengerProcessing.
InacollaborativeeffortbetweenCustomsandDIMIA,inFebruary2005,thearrivalprocessingofaircrewwasstreamlinedtoallowthemtobeprocessedbypassportnumber.ThisresultedinasignificantreductioninthenumberofreferralstoDIMIAforsecondarychecking.
Planning for the future
Review of aviation security
CustomsisoneofseveralgovernmentagenciesparticipatinginareviewbeingconductedbytheRtHonSirJohnWheelerJP,DL.Thereviewwillexaminethethreatfromseriousandorganisedcrimeatairports,theintegrationofground-basedsecurityandlawenforcementarrangementsandtheadequacyoftheexistingsecuritymeasures.
The arrival of the A��0 aircraft
QantasandotherairlinesintendtointroducetheAirbusA380aircraft.OntheAustralianroute,theaircraftwillhaveacapacityofover500andwillincreasethevolumeofpassengersarrivingattheentrycontrolpointatonetime.ThefirstA380flightsintoAustraliaareexpectedinthesecondhalfof2006.CustomsisincreasingstaffinglevelsatairportsintheleaduptoA380arrivalsasashort-termresponse.Longer-termsolutionssuchasautomatedborder-processingtechnologywillbeneededtomaintainprocessingstandards.
Anthony Clark, Compliance Assurance 4 team, Sydney, checking cargo at an aircraft.
CustomshasestablishednewarrangementswiththeGovernmenttoenablefundingtobevariedtotakeintoaccountchangesinthevolumeofpassengersbeingprocessedandtheproportionofpassengersbeingprocessedthroughtheautomatedborder-processingtechnology.ThiswasakeyoutcomeoftheFinancialHealthReviewundertakenbyErnstandYoung.
Objectives for �00�–0�
• developtheuseofbiometricsforanautomatedborderprocessingsystemtodealwithlargerpassengernumbers
• developawhole-of-governmentstrategyforthedeliveryofgovernmentregulatory
Customs teams – Customs prepares for Melbourne �00� Commonwealth Games
A major challenge for Customs officers in Victoria over the next 1� months will be preparing for the Melbourne �00� Commonwealth Games. Approximately �0 000 international visitors, including 10 000 Games Family Members, are expected for the Games which will be held from 1� to �� March �00�.
CustomsprimaryroleswillbetosmoothlyprocesspassengerandcargoassociatedwiththeGames,topoliceGames-relatedintellectualpropertyrightsandtomaintainbordersecurity.
CustomshasplannedfortheeventoverseveralyearsandwillapplythelessonslearnedfromitsexperiencewiththeSydneyOlympicsin2000.PreparationsincludetrainingofstaffacrossAustraliaaswellasdeploymentofadditionalstaffinMelbourneduringtheGames,significantlyincreasingclosedcircuit
Output2 ��
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Melbourne airport.
televisionandtracedetectioncapabilitiesatinternationalairports,enhancingdigitalsignageandstreamliningimportsandexportsprocessesforcompetitors.
CustomswillcontinuetoworkcloselywiththeM2006OrganisingCommitteeanditsagents,airportoperators,VictoriaPolice,AustralianFederalPoliceandotheragenciestosupportthesuccessoftheGames.
servicesthatsupportincreasingpassengernumbersandtheintroductionofnewlargeaircraft
• increaseairbordersecuritycapabilityandcapacity
• implementbusinesschangeforpassengerenforcementoperationstosupporttheintroductionoftheenhancedpassengerassessmenttools
• introducelegislationtoimprovethesanctionregimeinthepassengerenvironment
• implementanygovernmentdecisionsarisingfromthereviewsofaviationandmaritimesecurity.
�� AustralianCustomsServiceAnnualReport2004–05
Output �
Civil maritime surveillance and response
Output3pricingisshowninthefinancialstatementsonpage210.
ThisOutputcoverstheprovisionofairandmarinecivilsurveillanceandresponseservicestoanumberofgovernmentagencies.TheaimoftheOutputistodetect,reportandrespondtopotentialoractualnon-compliancewithrelevantlawsincoastalandoffshoreregions.AprincipalproviderofcivilcoastalsurveillanceisCoastwatch,aDivisionofCustoms.
InterceptionofprohibitedorrestrictedgoodsresultingfromspecificcivilmaritimesurveillanceandresponseoperationsisreportedunderOutput1.
Keyoperationalobjectivesin2004–05were:
• furtherdevelopmentofawhole-of-governmentapproachtoCoastwatchoperationalactivityandinfrastructure
• supportingthelong-termsustainabilityofaneffectivecivilmaritimesurveillanceandresponsecoordinationservice,throughthecapabilitydevelopmentandinfrastructureenhancementinitiativesthatwillbeinherentinthemaritimesurveillancecontractsthatwilloperatefrom2007
• promotingcloserrelationshipsandimprovedcooperation,communicationandinformationsharingwithclientagencies
• providingeffectivemaritimeresponsetoknownand/orsuspectedbreachesoftheAustralianborderandassistinthedeliveryofaneffectivenationalcivilmaritimesurveillanceandresponseprogram
• providingapproximately2400dedicatedvesselseadaysayeartotheNationalCivilMaritimeSurveillanceandResponseProgram
• providingsupporttotheTaskforceonOffshoreMaritimeSecuritybyprovidingexpertise/staff
• providingregulararmedpatrolstoprotectAustralia'ssovereigninterestsandvaluablefishresourcesintheSouthernOcean.
AsaresultofDecember2004decisionstheGovernmentformedtheJointOffshoreProtectionCommand(JOPC),anadditionalobjectivewasadded:
• refineandimplementtheorganisationalandoperationalarrangementsforJOPCandassociatedGovernmentinitiatives.
Keyachievementsin2004–05were:
• openingofJOPCHeadquartersinMarch2005
• coordinationoffouraugmentedsecuritypatrolsbytheNationalMarineUnitandtheAustralianDefenceForce
• releaseandevaluationofresponsetorequestfortenderfortheprovisionofsurveillanceservicesbeyondJuly2007
• fullintroductionofCoastwatchRiskAssessmentMethodology(CRAM)
• commencementofaHighFrequencySurfaceWaveRadartrialintheTorresStrait
• conductoffivearmedpatrolsintheSouthernOcean.
Keyperformanceindicatorsaresetoutinthe2004–05PortfolioBudgetStatements.Figure22providesanassessmentofCustomsperformanceagainsttheseindicators.Furtherperformanceresultsaredetailedinthesectionstofollow.
Defence resources received free of charge
GovernmentagenciesundertakesurveillanceoftheAustralianExclusiveEconomicZone(AEEZ)withintwodistinctareasofoperation.Inthenorthandnorth-westofAustralia,DefencehastheleadinthedeterrenceofunauthorisedboatarrivalsseekingtoenterAustralianwaters.ThisisreferredtoasOperationRelexII.
ElsewhereintheAEEZ,Customsistheleadagency,andDefenceoperatesinsupportunderthecodenameOperationCranberry.TheJOPCassumedcommand,onbehalfofDefence,ofOperationsRelexIIandCranberry.
WithintheRelexIIareasofoperation,DefenceassetscontinuetoidentifyeventsofinteresttoCoastwatchclientagencies,reportthemtotheCoastwatchNationalSurveillanceCentreandrespondwhereappropriate.
Output3 ��
Figure ��: Performance against targets set in the �00�–0� Portfolio Budget Statement–Output �
Quality/quantity performance measures Target* Actual
Quality
Numberofinterceptionsofsuspectillegalentryvessels(SIEVs)+ ** 0
Numberofapprehensionsofforeignfishingvessels(FFVs)+ ** 203
NumberoflegislativeforfeituresofFFVs+ ** 178
Numberofsuspectunlawfulnon-citizens(SUNCs)interceptedbysea(includingships’crew)
** 0
Numberofillegal,unregulatedandunreported(IUU)vesselssightedandidentifiedintheAustralianExclusiveEconomicZoneintheSouthernOcean
** 0
NumberofIUUvesselsboardedintheSouthernOcean ** 0
NumberofIUUvesselsapprehendedintheSouthernOcean ** 0
Quantity
Aerialsurveillancecoverage(squarenauticalmiles)##
CoastwatchcontractedaircraftandRoyalAustralianAirForce(RAAF)assets 148m 139.26m
Coastwatchcontractedsatellite 4.8m 4.86m
Highfrequencysurfacewaveradar ^ 1.50m
Total 145.62m
SortiesflownbyCoastwatchcontractedaircraft ** 4425
AerialSurveillance(flyinghours)
Coastwatchcontractedaircraft 21145 20520
RAAFP3Orion~ 250 21.5
Total 21 395 20 542
Marinesurveillanceandresponse(vesselseadays)
RANFremantleClassPatrolBoat 1800 582
Customsoceangoingvesselsgreaterthan12metres 2400 2372
Total 4 200 2 954
SouthernOceansurveillance(vesselseadays) 170-190 196
Price $�1�.��1m $�0�.���m
*Targetsmaybeperformancetargets,serviceleveltargetsorestimates.
**Performancetargetscannotbeestimatedthroughanyreliablestatisticalorothermethod.
+TotalnumberofinterceptionsbyCustomsandtheAustralianDefenceForce.
##Thefigureforsquarenauticalmilespatrolledisanindicativefigurederivedfromastandardformulathatincorporatesaveragespeedofadvance,timeontaskandsurveillancesweepforeachtypeofaircraft;andtheproportionoftimeontaskspentinvisualorradarmode;asafactorofthenumberofhourseachaircrafttypeundertooksurveillanceduringtheperiod.
^Thehighfrequencysurfacewaveradartrialcommencedinthesecondhalfof2004–05withacoverageofsome10000squarenauticalmilesofadiscretevector,intheapproachtotheTorresStrait,eachday.
~Thetargetisbasedonalong-standingDefencecommitmenttoCustomsforthecivilmaritimesurveillanceprogram.ResourcesforAustralia’scivilmaritimesurveillanceprogramarealsoprovidedbyDefencethroughOperationRelexII.Thehours/vesselseadaysarecostedinaccordancewithratesprovidedbyDefence.
Note:TheAustralianDefenceForcecommitmenttoOperationRelexIIisnotreflectedinthereportingofsquarenauticalmilespatrolled,RoyalAustralianNavyFremantlePatrolBoatdays,andRAAFP3Orionhours.
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Foraccountingpurposes,theDefenceresourcesdeployedformaritimesurveillanceandresponsewithintheRelexIIareasofoperationarereportedagainsttheDepartmentofDefencePortfolioEstimatesandAnnualReport.Defenceassetsundertakingidenticalactivitiesinthenon-RelexIIareasoftheAEEZ,underOperationCranberry,arereportedasResourcesProvidedFreeofChargewithinOutput3oftheCustomsPortfolioEstimatesandAnnualReport.
WhenDefenceactivitiesunderOperationsRelexIIandCranberryareconsideredtogether,DefenceismakingasignificantcontributiontotheCivilMaritimeSurveillancePrograminexcessofthe1800Fremantle-classdaysand250P3-COrionhoursnotionallyallocatedeachyear.
Maritime surveillance
Thetargetforcivilmaritimesurveillancecoveragefor2004–05was145.62msqnm.Theshortfallof4.7percentcanbeattributedtoanumberoffactorsincluding:
• aircrewflexibilitywithinthefixedwingcontractor’spoolofstaff
• unscheduledmaintenanceonsomeoftheaircraft
• somehighprioritysurveillanceoperationalactivityrequiringshorterflightdurationsinparticularareas
• surveillancetaskingofP3-COrionswithintheOperationRelexIIareaofoperationoftheAEEZ.
Coastwatchworkscloselywithitssurveillancecontractorstominimisetheimpactofanycrewinglimitationsandtoensureobligationstohighpriorityclienttaskingaremet.
Calculation of surveillance coverage
Thefigureforsquarenauticalmilespatrolledisderivedfromastandingformulathatincorporates:
• averagespeedofadvance
• timeontaskandsurveillancesweepforeachtypeofaircraft
• theproportionoftimeontaskspentinvisualorradarmode.
Thesurveillancecoveragefigureisindicativeonly.AmoreaccuratefigurecannotbederivedaspreviousCoastwatchsystemshavenotbeenabletoassessaccuratelytheimpactofsuchfactorsastransittimestoandfromplannedsurveillanceareas,targetinvestigationfactorsandactualtimeontaskspentinvisualorradarmode.
ThedevelopmentoftheCoastwatchCommandandSupportSystemandsubsequentenhancementstothesystemprovidedmoreaccurateandcomprehensivedata,particularlytheabilitytogiveamoreaccurateassessmentoftheimpactoftransittimeonsurveillancecoveragefigures.
TheintroductionoftheSurveillanceInformationManagementSystem,inconjunctionwiththenewsurveillancecontractsinJuly2007,willprovidefurtherdataontheimpactonsurveillancecoverage.Forthepurposesofyear-on-yeartrendanalysis,Customswillcontinuetoprovideatotalsurveillancecoveragefigureusingthesameassumptionsasinpreviousyears.
Customs Officer, Tracy Coutts at the
National Surveillance Centre.
Coastwatch risk assessment methodology
CoastwatchhasdevelopedandimplementedaCommonRiskAssessmentMethodology(CRAM).EachofCoastwatch’smajorclientscontributetoCRAM:
• AustralianFisheriesManagementAuthority
• DepartmentofImmigrationandMulticulturalandIndigenousAffairs
• DepartmentoftheEnvironmentandHeritage
• AustralianQuarantineandInspectionService
• GreatBarrierReefMarineParkAuthority.
CRAMwasdevelopedtoprovideclientswithariskassessmentprocessthatpermitsallclientriskstobeconsideredagainstacommonunitofmeasurement.ThesescoresguidethestrategicplanningofCoastwatchsurveillanceflightsandinformthenatureandfrequencyofsurveillancetobeprogrammed.
TheoutputfromCRAMisacalculatedratingpriorityforeachclientinthemaritimeareassurroundingAustralia.Thisisachievedbyidentifyingclients’area-specificrisks,applyingaseverityassessmenttoweightedfactors(economic,environmentalandsocial)foreachidentifiedrisk,togenerateaconsequencevalue.Thelikelihoodoftheriskoccurringisthen
assessedandappliedtotheconsequencevaluetodeterminetheriskscore.Allclientriskscoresforanareaareaddedtoderiveanareariskscore,orCRAMscore,whichcanbeusedasthebasisonwhichdeploymentsofCoastwatchassetscanbeprioritised.CRAMisupdatedquarterlytoreflectchangesinthreats.
Use of satellites for surveillance
Coastwatchfurtherexaminedtheuseofsatellitesinmaritimesurveillance.DefenceScienceandTechnologyOrganisationandDefenceImageryandGeospacialOrganisationwerecloselyconsulted.Theexaminationfoundthatsatelliteshavelimitationsindetectingandidentifyingsmallertargets,particularlyinhightrafficsurveillanceareas.Longperiodsofheavycloudcoverremainasignificantimpedimenttoopticalsatellites.Satellitesare,however,avaluabletoolinareasoflowvesseltrafficwheretargetvesselsarelarger.
Coastwatchusesradarsatelliteswithgoodeffectinareaswheretherequirementistolocaterelativelylargevessels,typicallysteeltrawlersinexcessof30metres,andtomonitorvesselsmovementsoveranumberofdays.SatellitesarealsousedbyCoastwatchinareassuchasCocos(Keeling)Islands,ChristmasIslandandotheroffshoreareas.
FollowingthesigningofatreatybetweenAustraliaandFranceoncooperationinthemaritimeareasintheSouthernIndianOcean,CoastwatchcontractedaFrenchcompanytoprovidesatellitecoverageoftheHeardandMcDonaldIslandExclusiveEconomicZone.ThesatellitesprovideimageryrepresentingtotalcoverageoftheHeardandMcDonaldIslandExclusiveEconomicZoneoverafortnightlyperiod.Thisyear,thesesatellitesprovidedcoverageequivalentto4.86msqnmofAustralia’sMaritimeZones.
High frequency surface wave radar (HFSWR)
InconjunctionwithDefence,CustomsisundertakingatrialtoevaluatetheeffectivenessofaHFSWRsysteminimprovingsurveillancecoverageofoffshorehigh-threatapproachestoAustralia.
Coastwatch Dash 8.
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TheHFSWRcandetectsurfacevesselsandlow-flyingaircraftbeyondthevisiblehorizon,unlikeconventionalradarsthatarelimitedtoline-of-sightoperations.TheAustralianversionofthissystemisaderivativeoftheJindalee(over-the-horizonradar)researchandhasthepotentialtodeliver24-hourwide-areacoastalsurveillanceofaircraft,shipsandboatstravellingintheTorresStrait.
Thetrialwilltestandevaluatethefuturesurveillancepotentialoftheradar,usingittocomplementothersurveillanceassetsandsystems.
A440mreceiverarrayisonDauanIslandinthenorthernTorresStrait.ThetransmitterisontheuninhabitedKoeyNgurtai(Pumpkin)Island,tothenorthofBaduIsland,inthemiddleofTorresStrait.
TheGovernmentsignedIndigenousLandUseAgreementswiththeDauanandBaduIslandcommunitiesinFebruary2004.Underthevoluntaryagreements,localcommunitieswereprovidedwithemploymentopportunitiesduringthepreparationofthesitesandduringtheconstructionphase.Inaddition,severalresidentswillactascaretakersoftheseremotesites.
TheradararraywashandedtotheCommonwealthforthecommencementoftheoperationalphaseofthetrialinFebruary2005
Unmanned Aerial Vehicle trial
Aspartofits2004electioncommitments,theGovernmentallocatedfundingof$0.6mforatrialbyCustomsofasmallsizedlongenduranceunmannedaerialvehicle.
ThetrialwilltestthesuitabilityofthetechnologyformaritimesurveillanceandreportingarisingfromCoastwatchtargeting.Theunmannedaerialvehiclewillbedeployedtoidentify,verifyandvalidatetargetdataderivedfromtheHFSWRandothersources.
CustomsisalsoworkingcloselywithDefenceinsupportofitsimplementationoftheGovernmentdecisiontotrialthedeploymentofanunmannedaerialvehicleintheNorthWestShelfarea.
Maritime surveillance contracts
CustomsisundertakingatenderprocesstoreplacecontractsfordeliveryofaerialsurveillanceofAustralia’smaritimezoneswhichexpireon30June2007.
Tendersweresoughtfortwoservices.ServiceAincludessurveillanceservicesovertheinshoreandoffshorezonesoftheAEEZandremoteareas,complementedwherefeasiblebyawide-areasurveillancecapabilityforusepredominantlysouthoftheTropicofCapricorn.ServiceBcatersforprovisionofhelicopterservicesfortheTorresStrait.
Therequestfortenderfortheservicesforecastsanongoinginvestmentinborderprotectionapproaching$1bover12years.
ItisanticipatedthatthesuccessfultendererforServicesBwillbeannouncedinJuly2005andforServiceAinlate2005.
Joint Offshore Protection Command
On20July2004,theGovernmentestablishedtheTaskforceonOffshoreMaritimeSecurity,ledbytheDepartmentofthePrimeMinisterandCabinet.ItcomprisedmembersfromDefenceandCustoms,andconsultedwidelywithgovernmentagenciesandvariousindustryrepresentativesinbothAustraliaandoverseas.
InDecember2004,thePrimeMinisterJohnHowardannouncedanumberofinitiatives,
Figure ��: High Frequency Surface Wave Radar proposed coverage
includingtheestablishmentoftheJointOffshoreProtectionCommand(JOPC),tofurtherstrengthenAustralia’soffshoremaritimesecurity.
UndernewJOPCarrangements,CustomsretainsresponsibilityforcivilmaritimesurveillanceandregulatoryrolesandtheAustralianDefenceForce(ADF)takesonresponsibilityfor:
• offshorecounterterrorismprevention
• interceptionandresponsecapabilitiesandactivitiesincludingtheprotectionofoffshoreoilandgasfacilities,and
• offshoreinterceptionofships.
JOPCusesassignedCustomsandADFassetstoexecuteaparticularoperationand,attheendoftheoperation,returnscontroloftheassettotheADForCustoms.AssignedassetsareoperatedinaccordancewithRulesofEngagementpromulgatedbytheChiefoftheDefenceForceandbytheCEOofCustoms.
JOPCtasksinclude:
• operationsandexercisessuchasaugmentedsecuritypatrolsandtheoffshoreinterceptionofships
• developing,implementingandmanaginganAustralianMaritimeIdentificationSystem
• developingcommandandcontrolarrangements,especiallyforanincidentthatbecomesaterroristthreat
• liaisingwithforeign,CommonwealthandState/Territorygovernmentsandagencies,andrelevantindustrysectors.
AJOPCOffshorePowersLegislationStudyteamconvenedinJune2005toundertakeaprojectseekingclarificationandfurtherdevelopmentofthelegalauthoritytoundertakecounterterrorismmeasuresinoffshoreareas.TheStudyisheadedbyProfessorStuartKaye,DeanofLaw,UniversityofWollongongandcompriseslegalandoperationsrepresentativesfromboth
Customs and Defence team – Joint Offshore Protection Command
On �0 March �00�, the Minister for Justice and Customs and the Minister for Defence formally opened the Headquarters of the Joint Offshore Protection Command (JOPC). The Headquarters is co-located with Customs Coastwatch in Canberra and comprises staff drawn from both Customs and the Australian Defence Force. A number of staff are in the north of Australia.
TheCommandhasajointaccountabilitystructure,beingresponsibletotheChiefoftheDefenceForceforitsmilitaryfunctionsandtotheCEOofCustomsforitscivilfunctions.Tosupportthisapproach,theDirector-GeneralofCoastwatch,aRearAdmiralsecondedfromtheRoyalAustralianNavy,isalsotheCommanderofJOPC.JOPCoperatesunderaDirectivetotheCommanderofJOPCsignedbyboththeCEOCustomsandtheChiefoftheDefenceForce.
TheCommanddrawsonthefullrangeofDefenceandCustomscapabilitiesandmakesthebestuseofavailableresourcestoachieve
theimplementation,coordinationandmanagementofoffshoremaritimesecurity.ItisanimportantstepinensuringthatanyterroristthreattoAustralia’smaritimeassetsandcoastlinecanbedetectedanddefeated.
Members of the JOPC team, left to right:
John McAree, Conor Annesley, LCDR Mark Sorby,
Ian Polson, Group Captain Ian Pearson.
Output3 ��
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DefenceandCustoms.TheStudywillprovideitsconclusionsandrecommendationstotheCommanderJOPCby30August2005.
Augmented security patrols—Timor Sea and North West Shelf
Theobjectiveofaugmentedsecuritypatrolsisto:
• increasethelevelofsecuritywithinthepatrolareasofAustralia’soilandgasfieldsintheTimorSeaandNorthWestShelf
• deterthosewhomaybecontemplatingorplanninganattackontheseoffshoreassets.
FouraugmentedsecuritypatrolswereconductedintheTimorSeaandNorthWestShelf.AssignedsurfaceassetscamefromCustomsandDefence,supportedbydesignatedCoastwatchaircraftflights.AffectedindustrymemberswerealertedthroughtheAustralianPetroleumProductionandExplorationAssociation.
Thepatrolssuccessfullytestedcommunications,proceduresandprotocolsbetweenCoastwatchandDefenceassets,andwithoilandgasinstallations.
Australian Maritime Identification System (AMIS)
AkeyproblemidentifiedbytheTaskforceonOffshoreMaritimeSecuritywasthelackofcentralisedcoordinationandintegrationofallinformationrelevanttothemaritimedomainheldbyanumberofCommonwealthandStateagencies.
JOPCproposestoestablishAMISasamechanismforseeking,analysingandmanaginginformationonvesselidentity,crew,passengers,cargo,location,course,speedand
intendedportofarrival.TheestablishmentofAMISwillprovideacentrallycoordinatedandintegratedapproachtothegatheringofthemaritimeinformationthatisalreadycollectedbyanumberofAustralianFederal,StateandTerritoryagencies.ThiscollectionofinformationonknownandforecastvesselmovementsandthemanagementofthedatawillassistinprovidingmoretargetedsurveillancewithinAustralia’smaritimezones.
Operations and Program Advisory Committee (OPAC)
OPACistheseniorconsultativebodyprovidingwhole-of-governmentadvicetotheDirectorGeneralCoastwatch.OPACcomprisesseniorrepresentativesfromtheAustralianFisheriesManagementAuthority,theAustralianFederalPolice,AustralianMaritimeSafetyAuthority,theAustralianQuarantineandInspectionService,theDepartmentoftheEnvironmentandHeritage,theDepartmentofDefence,theDepartmentofForeignAffairsandTrade,theDepartmentofImmigrationandMulticulturalandIndigenousAffairs,theDepartmentofIndustryTourismandResources,theGreatBarrierReefMarineParkAuthorityandCustoms.ChairedbyDirectorGeneralCoastwatch,OPACmeetsquarterly.
StrategicdirectionsandservicedeliveryoftheCivilMaritimeSurveillanceProgramaremajorissuesdiscussed.OPACalsoreviewsoperationaloutcomesandprovidesadviceontheextenttowhichtheymeettheneedsofindividualagencies.
OPACalsooverseestheCoastwatchPlanningAdvisorySub-CommitteeandtheRegionalOperationsPlanningandAdvisoryCommittees.
Output3 ��
Figure ��: Summary of suspect illegal entry vessels (SIEVs) and suspect unlawful non-citizens (SUNCs)
�00�–0� �00�–0� �00�–0�
SIEV summary^
Undetected
onshoreunauthorisedboatarrival 0 1 0
offshoreunauthorisedboatarrival 0 2 0
Detected 0 0 0
Total 0 � 0
SUNC summary^
Undetected
onshoreunauthorisedboatarrival 0 53* 0
offshoreunauthorisedboatarrival 0 29 0
Detected 0 0 0
Total 0 �� 0
Crew 0 4 0
^FiguressourcedfromtheDepartmentofImmigrationandMulticulturalandIndigenousAfffairs.
* ThreeoftheseSUNCswerechargedwithpeoplesmugglingoffencesundertheMigration Act 1958.
Figure ��: Selected Coastwatch activities on behalf of other agencies
�00�–0� �00�–0�
Surveillancereports—yachts 455 560
Sightingsreports—environment 79 129
Sightingsreports—animalsinprotectedareas 243sightingsof2286animals
311sightingsof3615animals
Sightingsreports—marinespecies 1318sightingsof18715animals
1361sightingsof15032marineanimals
Searchandrescue(SAR)SARoperationsinvolvingCoastwatchaircraft 41 53
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Maritime response
People smuggling
Therewerenoarrivalsofsuspectillegalentryvesselsduring2004–05,comparedtothreearrivalsinvolving82suspectunlawfulnon-citizensin2003–04(seefigure24below).
Whole-of-government approach
EachCoastwatchflightismulti-taskedtoprovidesurveillanceservicesonbehalfofotheragencies.Forexample:
• peoplesmugglingandprohibitedimportssmuggling
• illegalfishinginterception
• supportofsearchandrescueoperations
• reportsrelatedtotheprotectionofthemaritimeenvironmentandmarineresources.
Coastwatch’sroleinprotectingtheintegrityof
Australia’smaritimeenvironmentincludes:
• identifyingandrespondingtoillegalfishinginAustralianwaters
• detectingandreportingenvironmentalincidentssuchasmarinepollutionandcoastaldegradation
• detectingintroducedmarinepests,andhumanincursionsoncoralreefsandotherprotectedmarineparksandthepotentialquarantine,healthandmarinehabitatthreats
• reportingsightingsofwhales,turtles,dolphinsanddugongstoprotectmarinespecies
• gatheringevidencefortheGreatBarrierReefMarineParkAuthoritytosupportchargesforvesselsoperatingillegallyinprotectedareasofthePark.
Activitiesin2004–05aredetailedinfigure25.
�� AustralianCustomsServiceAnnualReport2004–05
Foreign fishing in Australia’s maritime zones
Theincreasingpresenceofforeignfishingvessels(FFVs)inAustralianwatersposesamulti-dimensionalthreat.Aswellasdepletingfishstocksandcreatingsignificantenvironmentalhazards,foreignvesselssometimesmakelandings,potentiallyconveyingexoticpestsanddiseasestoAustralia’sshores.
ThenumberofactionstakenbyCustomsandNavyvesselsagainstFFVsincreasedby67percentcomparedtothepreviousyear:
• 203FFVswereapprehended(134in2003–04)
• 178weresubjecttolegislativeforfeitureofcatchandequipment(83in2003–04)
• 50werecautioned(42in2003–04).
Operation Clearwater
OperationClearwater,aconcentratedoperationaimedatdetectinganddeterringforeignfishingvesselsintheGulfofCarpentariaandinthewaterstothenorthofArnhemLand,wasconductedduringtheperiod11–21April2005.
ItinvolvedthecombinedresourcesofCustoms,theAustralianDefenceForce,AustralianFisheriesManagementAuthority(AFMA),AustralianQuarantineandInspectionService,andtheDepartmentofImmigrationandMulticultural
andIndigenousAffairswithsupportfromtheNorthernTerritoryHealthDepartmentandtheNorthernTerritoryPolice.
TwoIndonesianofficialsfromtheIndonesianDirectorateGeneralofCustomsandtheDirectorateofFishResourcesSurveillancealsoparticipated.
Duringtheoperation,CustomsvesselsandRoyalAustralianNavypatrolboatsapprehended29illegalfishingboatsand258crew.Fifteenboatswerelargevesselsknownasiceboatswithacapacitytostorefreshfish.
AFMAidentified65crewwhowerechargedwithoffencesundertheFisheries Management Act 1991and/ortheCriminalCode.Penalties
Figure ��: Foreign fishing vessel action �000-01 to �00�–0�
FiguresandcommentaryonrateofCustomsNationalMarineUnitandDefenceresponsestoFFVs.
Figure ��: Location of Operation Clearwater
imposedon35crewmemberswhoweredealtwithbythecourtsin2004–05rangedfromanaggregatefineof$90000handedtothemasterofalargeiceboat,toatwoyear$200goodbehaviourbond.
Ofthe29vesselsapprehendedduringtheoperation,twoweredestroyedbyfirewhileatsea,oneduetoitsunseaworthyconditionandtheotherduetoquarantineconcerns.
At30June2005,19oftheremaining27vesselshadbeendestroyedandeightweredetainedinportawaitingadecision.
Duringthisoperationofficersseizedapproximately:
• 12927kgfishproducts
• 2000kgbait
• 13910hooks
• 87584metresoflongline
• 295kgofsharkfin
• 152additionalsharkpieces.
OperationClearwaterisanexampleofthebenefitsofawhole-of-governmentapproachtoamajorthreattothenation’snaturalresourcesandisfurtherevidencethatAustralia’sborderprotectionarrangementsareworkingwell.
Support to the Australian Quarantine and Inspection Services (AQIS)
TheobjectiveofquarantinecontrolsinmaritimeareasistopreventtheintroductionofexoticdiseasesorpeststoAustralia.Ofparticularrelevancetothecivilsurveillanceprogramistheneedforearlydetectionandidentificationofpotentialoractuallandingsbyoverseasvesselsatremoteplaces.
CoastwatchprovidesAQISwithinformationobtainedduringsurveillanceflightsranging
frominternationalvesselstravellingclosetothecoastline,tovesselsdischargingballastandwasteatseawherethatwastecoulddrifttoshore.AQISisadvisedofallinterceptionsofoverseasvesselssuchasFFV’sandSIEVs.
TheCustomsofficeonThursdayIslandworksparticularlycloselywithAQIStoachievetheobjectivesoftheNorthernAustraliaQuarantineStrategyintheTorresStraitandCapeYorkarea.Thequarantinerelatedactivitiesundertakeninthisregionrangefrom:
• targetedsurveillanceforearlywarningtoAQISofpotentialquarantinethreats
• transportingAQISofficersbyCoastwatchhelicoptertomonitorfruitflyandscrewworm,and
• conductingplantandanimalsurveys.
National Marine Unit
CustomsNationalMarineUnitprovidesmaritimeresponsetoknownand/orsuspectedbreachesoftheAustralianborder.
TheNationalMarineUnitiscommittedtoprovideabout2400vesselseadaysayeartotheNationalCivilMaritimeSurveillanceandResponseProgram.ThistargetisachievedbyeachoftheeightAustralianCustomsBayClassvesselscompletingaround300vesselseadaysayear.
AustralianCustomsvessels(ACVs)conductpatrolsaroundtheentireAustraliancoastlineandouttothe200nauticalmilelimitoftheAEEZ.InresponsetoconcentratedactivitylevelsinNorthernAustralia,anumberofvesselscontinuallypatrolcoastalandoffshoreareasbetweentheKimberleyCoastandTorresStrait.
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KeyachievementsintheNationalMarineUnit
ACVsachieved2372vesselseadays:
• 60percentwasachievedinNorthernAustralia
• 30percentwasachievedonpatrolsoftheEastCoast
• ninepercentontheWestCoast
• onepercentwasachievedonpatrolsoftheSouthernCoastline.
TheBayClassfleetcompleted746strategictaskingsand91tacticaltaskingsonbehalfofeightFederalandnineStateclientagencies.Thisreflectedanoverallcompletionrateof78percent.TheNationalMarineUnitdidnotcomplete100percentofvesselseadays/tasksduetoeithertacticaltaskstakingprecedenceoverstrategictasksorNationalMarineUnitnotbeinginapositiontoacceptsomestrategictasksbecauseoftheirincompatibilitywithotherconcurrenthighprioritytaskings.
Figure ��: Australian Customs Vessel response activity
�00�–0� �00�–0� �00�–0�
Boardings
FFV^ 388 377 358
SIEV~ 0 2 0
Other# 385 457 105
Apprehensions* 61 65 80
Legislativeforfeitures> 4 40 118
* ApprehensionsbyCustomsMarineVesselsareasubsetofthetotalnumberofapprehensionsshowninFigure22.
# Includesmerchantvessels,Australianfishingvessels,othersmallcraft.
~ Suspectillegalentryvessel
^ Foreignfishingvessel
> Legislativeforfeiture(catchandequipmentseized)conductedunderFisherieslegislation.LegislativeforfeituresshownherewereinitiatedbyCustomsMarineVesselsandareasubsetofthetotallegislativeforfeituresshowninFigure22.
Australian Customs vessel Arnhem Bay.
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Customs teams – National Marine Unit
The Government provided $��.�m over �00�–0� to �00�–0� to double Customs national marine surveillance and response capacity.
Afterrecruitmentandtrainingofadditionalstaff,theNationalMarineUnitcommencedoperationsatthisincreasedrateofeffortfromOctober2002onward.
ArecentrecruitmentroundforseapositionswasconductedandadditionalseagoingstaffareundergoingtraininginadvanceofjoiningthefleetbeforeJuly2005.Recruitmentisunderwaytofillallvacancies.
Inadditiontoconductingeffectivemaritimeresponsestoknownand/orsuspectedbreachesoftheAustralianborder,thecrewoftheAustralianCustomsVessels(ACVs)haveoccasionswheretheyshowcasetheACVsatopendaysandalsoassistinsearchandrescueoperations.Examplesoftheseactivitiesareasfollows:
Rescue of five Indonesian fishers on Ashmore Islands
InNovember2004,ACVHoldfast Bay wasinvolvedintherescueoffiveIndonesianfisherslocatedstrandedanddehydratedontheremoteAshmoreIslandssituated400nauticalmileswestofDarwin.Thefishershadbecomeseparatedfromtheirvesselandwerewashedashore.Thefishersweregivenmedicaltreatmentandfreshsuppliesoffoodandwaterbeforereturningthemtotheirvessel,whichwaslocatedafewmilesaway.
Rescue of a maxi yacht, crew and passengers off Hamilton Island
InFebruary2005,ACVHervey Bayrescued14passengersandthreecrewfromamaxiyachtdisabledinstrongwindsanddraggingitsanchortowardsrocksonthewesternsideofDentIsland,nearHamiltonIslandresort.TheHerveyBaylauncheditstendersandatowlinewhichwasattachedtotheyachttotowitclearofimmediatedanger,thentoasafeanchorageintheleeofHamiltonIsland.
Vessel Open Days
Customsofficerscontinuedtofosterpublicawarenessoftheimportanceofborderprotectionbyconductinganumberofvesselopendays.
Guidedtours,usuallyheldatboatshows,providedanidealopportunityforthepublictobetterunderstandhowACVsoperateandtheimportantworktheydoforCustomsandotherFederalagencies.
In2005,ACVcrewsconductedguidedtoursoftheACVsattheSanctuaryCoveBoatShowinQueensland,UlladullaBlessingoftheFleetandtheEdenWhaleFestivalinNewSouthWales,andGardenIslandinWesternAustralia.Onaverage800visitorstouredthevesselsperdayateachlocation.Crewmemberswereonhandtoansweramyriadofquestionsrangingfrom“howmanysmugglersdoyouapprehend”to“whattypeoffooddoyouliketocookonboard”.
FeedbackfromthepublicisalwaysverypositiveandACVcrewmembersenjoytheopportunitytoshowcasetheiruniqueworkplace.
ACV CorioBay, Open Day at Ulladulla, New South Wales —
Easter 2005.
Left to right: Crystal Van Hecke, Gary Shrimpton,
Peter Page, Greg Jessop-Pond, Peter Weller and
Commanding Officer, Andrew Belton, onACVHervey Bay.
�0 AustralianCustomsServiceAnnualReport2004–05
Securecommunication
AsecurecommunicationsfacilitywasdevelopedusingTransmissionControlInternetProtocolforvoice,videoanddatatransmissionsoversatellite.SecurecommunicationswillbefittedintoallCustomsvesselsduring2005–06.
ReplacementprogramfortheBayClassfleet
OriginallyintroducedintoservicewithausefullifetoCustomsoftenyears,muchoftheCustomsvesselfleethasreached‘half-life’offiveyears.CustomsisplanningforareplacementtotheBayClassfleetthatwillbecapableofcontinuingtocounterexisting,aswellasemergent,threatstoAustralia’sbordersandsovereignty.
Bay Classmaintenanceservicescontract
On15April2005,theBayClassmaintenanceservicecontractwasapproved.ThenewmaintenancecontracttendersoughttoengagethemarketplacewithacontractthatwasmoresuitablefortheoperationsofCustomsandonethatprovidedmaintenancecoveragetotheprojectedendoflifeinCustomsoftheBayClassACVs.Thetransitiontothenewcontractoriscomplete.
DeckmountedweaponsonallBay Classvessels
Inthe2005–06Budget,theGovernmentapprovedfundingof$25.2moverfouryearstoenableCustomsto:
• armallBayClasspatrolboatswithdeck-mounted7.62mmFNHerstalMAG58generalsupportmachineguns
• recruitadditionalcrewtooperatetheweapons
• providetrainingfortheadditionalcrew.
TheincreasedarmamentisintendedtoconvincesuspectvesselstocomplywithdirectionsandwillcontributetothesafetyofCustomsofficers.
ThearmingofthevesselsisalsoessentialtoprovideafullresponsecapabilitybyCustomswhenpatrollingoffshoreoilandgasrigs.
Southern Ocean Maritime Patrol and Response
The2004–05Budgetincluded$89.2movertwoyearstoenableCustomstosetupaprogramofregulararmedpatrolstoprotectAustralia’ssovereigninterestsandvaluablefishresourcesintheSouthernOcean.Thisfundingincluded$5mtotheAustralianFisheriesManagementAuthoritytocoverpost-apprehensioncostsforanyinvestigationsandprosecutionsofsuspectedbreachesoffisherieslaws.
Achievements
FivearmedCustoms/FisheriespatrolswereconductedintheAustralianFishingZonesurroundingtheremoteHeardIslandandMcDonaldIslands.TheaimistoapprehendanyillegalfishingvesseltryingtocatchtheincreasinglyscarcePatagoniantoothfishorcommittingotheroffencesagainstAustralianlaw.
NovesselswereinterceptedfishingillegallyinsidetheAEEZin2004–05.EvidencewasgatheredonbehalfofAustralianFisheriesauthoritiesonseveralvesselsthatwerefishinginConventionfortheConservationofAntarcticMarineLivingResourcesmanagedareas,whennotlicensedtodoso.
On17November2004,followingacompetitivetenderprocess,along-termcontractforaNorwegianvessel,Oceanic Viking,wasfinalisedbetweenCustomsandP&OMaritimeServicesPtyLtd.ThisprovidedtheSouthernOceanMaritimePatrolandResponseprogramwithdedicatedcapabilityutilising:
• a105metrevesselwithafullcomplementofciviliancrewand‘Steamingparty’(additionalsailorscapableofcrewinganapprehendedvessel)
• afullyequippedmedicalfacility
• deck-mounted0.50calibremachineguns
• ateamofspecialisttrainedandarmedCustomsboardingpartyofficersabletoconductyear-roundpatrolsinvirtuallyanyweatherconditions.
WhennotundertakingspecificpatrolsintheSouthernOcean,theOceanic Vikingisavailableforothertaskings.
AustraliaisstrengtheningitslevelofcooperationwithFranceastheeconomiczonearoundtheFrenchterritoryofKerguelenIslandadjoinstheHeardandMcDonaldIslandExclusiveEconomicZone.
SincetheMaritimeCooperationTreatyonSurveillanceintheSouthernOceanenteredintoforceon1February2005,CustomsandFisheriesofficialsfromthetwocountrieshavebeennegotiatingoperational-levelarrangements.JointoperationsintheSouthernOcean,exchangingofficersonpatrolsandcoordinatingsailingplanswillmaximisecoverageforbothFranceandAustralia.
Theywillalsosupportinternationalinitiativestocombatillegalfishinginthisecologicallysensitiveenvironment.OthernationswhoarecommittedtoprotectingSouthernOceanfisheriesincludeSouthAfrica,theUnitedKingdomandNewZealand.
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Output3 �1
From top left clockwise: Ed Harris, Mark Whitby,
Rhys Howcroft and Rod Brett during the medical emergency.
Customs teams – Oceanic Viking crew respond to a medical emergency
On 1� December �00�, an Australian Customs and Fisheries vessel engaged in a race against time to save the life of a Portuguese sailor who fell critically ill on board a fishing ship in the Southern Ocean.
TheOceanic Viking respondedtoamedicalemergencyonboardalicensedSpanishfishingvesseloperatinglegallyininternationalwaters,approximately200nauticalmilessouthoftheAustralianfishingzone.AcriticallyillPortuguesefishermanwasrescuedandtransportedtoRoyalPerthHospitalwherehesubsequentlyrecovered.ThisactionwascarriedoutinaccordancewithAustralia’sinternationalobligationsundertheUnitedNationsSafetyofLifeatSeaconvention.ThefishermanreturnedtoPortugalunderthecareofadoctoron4February2005.
Customs officer Simon Peirce, Southern Ocean Maritime
Patrol and Response program.
�� AustralianCustomsServiceAnnualReport2004–05
FutureSouthernOceanpatrols
The2005–06BudgetprovidedfundingtoextendsurveillanceandthearmedpatrolprogramintheSouthernOceanagainstillegal,unreportedandunregulatedfishinguntilatleastJune2010.Intotal,theGovernmentwillprovidetotalfundingof$201.4mforthisprogramfortheyears2005–06to2009–10.NegotiationsareunderwaytoextendthecontractforthesupplyoftheOceanic Viking.Modificationstothevesselarealsoplannedtoimprovesafetyandoperationalefficiency.
Planning for the future
ThenexttwoyearswillposemajorchallengestoCoastwatchandtheNationalMarineUnit.Duringthisperiod,Coastwatchwill:
• furtherrefinetheoperationalandorganisationalarrangementsfortheJointOffshoreProtectionCommandandaugmentedsecuritypatrols
• buildthelinkagesandinfrastructurethatwillunderpintheAustralianMaritimeIdentificationSystem
• undertakethesubstantialtaskoftransitioningtothenewsurveillancecontracts
• continuetoassesstheviabilityofuseofemergingtechnologysuchasunmannedaerialvehicles
• respondtothechallengespresentedbyincreasingandmoresophisticatedforeignfishingincursions,particularlyinAustralia’snorthernwaters.
TheNationalMarineUnitwill:
• fitdeck-mountedweaponsonallACVsandrecruitandtrainadditionalcrewtooperatethisequipmentbytheendof2005
• fitsecurevoiceandemailcommunicationsystemsonallACVs.
AspartoftheSouthernOceanMaritimeSurveillanceandResponseprogram,Customswill:
• renegotiatewithP&OMaritimeServicesPtyLtdalong-termcontractfortheOceanic VikingtocovertheperioduntilJune2010
• extendthecapabilityforundertakingoperationsinnorthernwaters
• coordinatealong-termsailingplanwiththeFrenchgovernmenttoensuremaximumpatrolcoverage
• explorecooperativearrangementswithotherinterestedcountries.
Customs and Australian Fisheries Management Authority officers undertaking boarding training.
Output4 ��
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Output �
Administration of Customs duty and indirect taxes, other border-related revenue collections, and import/export statistics
Output4pricingisshowninthefinancialstatementsonpage210.
ToadministerCustomsdutyandindirecttaxes,thisOutputcoversprocessingof:
• allimportedandexportedcargoincludingpostalitems
• itemsenteringandleavingAustraliawithpassengersandcrew.
RelatedactivitycoveredunderthisOutputincludes:
• tariffclassification,originandvaluationservices
• licensing
• realtimeandposttransactioncomplianceactivityrelatedtorevenueprotectionandcollection
• theinvestigationofindustryreferrals
• theadministrationofdrawback,refundandconcessionalarrangementsforimportersandexporters
• investigationsandprosecutionsrelatedtoimportfraudandCustomsdutyevasion.
TheOutputalsoincludes:
• Customs-relatedrevenuecollectionsassociatedwithcraftmovementsandcollectionofthePassengerMovementCharge
• processingandcomplianceactivityrelatedtoimportedandexportedgoodstocollectandvalidateimportandexportstatistics
• theassessmentandcollectionofgoodsandservicestax(GST),luxurycartax(LCT)andwineequalizationtax(WET)andcomplianceactivityassociatedwiththesetaxes
• administrationoftheTouristRefundScheme(TRS).
Keyoperationalobjectivesin2004–05were:
• implementationoftheCargoManagementReengineeringproject
• FreeTradeAgreementnegotiations,legislationandadministrativearrangements
• developmentandimplementationoftheComplianceAssuranceStrategy
• deliveringaneffectiveinvestigationcapability
• redevelopmentoftheTariffConcessions(TARCON)andtheTariffandPrecedentInformationNetwork(TAPIN)computersystems
• legislationandadministrativearrangementstoremovethethreepercentCustomsdutyunderaTariffConcessionOrder
• implementingthenewpassengerandcrewdutyfreeconcessions.
Keyachievementswere:
• delivery,implementationandmanagementofthetransitiontotheexportscomponentoftheIntegratedCargoSystemandpreparationforthetransitiontotheimportscomponent
• Thailand–AustraliaFreeTradeAgreementandtheAustralia–UnitedStatesFreeTradeAgreemententeredintoforce
• redevelopmentofTARCONandTAPINcomputersystems
• removalofthethreepercentCustomsdutyunderaTariffConcessionOrder
• implementationofthenewregimeforpassengerandcrewdutyfreeconcessions.
�� AustralianCustomsServiceAnnualReport2004–05
Figure ��: Performance against targets set in the �00�–0� Portfolio Budget Statement–Output �
Quality/quantity performance measures Target* Actual
Collection of revenue
Quality
ElectronicsystemsavailabilitytoCustomsclients 99% COMPILE100.0%(availabilityasaproportionofprimetime) EDIFICE99.9%
EXIT^100.0%ICSEXPORTS#98.7%
TAPIN100.0%
Numberofexternalappealsagainstdecisions:
GrantingofTariffConcessionOrder 10–15 2
Eligibilityfor4thScheduleBy-Law 1–5 1
Quantity
Significantrevenuescollected(includingCustomsduty,GSTcollectedandPassengerMovementCharge)
$7878m(netofGSTdeferred)
$7892m
Numberofcustomsimportentrieslodged Electronic3400000 3473385
Manual22000 23451
Numberofdrawbackapplications 10500–11500 9136
Numberofrefundapplications 23000 31467
Numberofaircargoscreenedfreeconsignments 2250000 2423320
MajordutyconcessionsadministeredbyCustoms
TariffConcessionSystem $440–$480m $548.37m
CheeseandCurdQuota $9–$11m $12.52m
Revenue compliance verification
Quality
Revenueandcomplianceassuranceactivity:
Imports–TotalCustomsvaluesubjecttocomplianceactivityasaproportionoftotalCustomsvaluereported
10% 15%
Exports–TotalFOBsubjecttocomplianceactivityasaproportionoftotalFOBreported
10% 21%
Proportionofdrawbackandrefundsdeliveredin Drawbacks90% 96.4%
accordancewithstandards Refunds100% 99.9%
Proportionofconcessionalarrangementsforimportersandexportersdeliveredinaccordancewithstandards
100% 100%
Numberoffraud/evasioncasesadoptedforprosecution 18–25 17
Quantity
Revenueadjustments
Recoveries ** $7.15m~
Refunds ** $0.17m~
Numberoffraud/evasioncasesadoptedforinvestigation 55–75 72
Price $1�0.���m $1��.��0m
* Targetsmaybeperformancetargets,serviceleveltargetsorestimates.
**Performancetargetscannotbeestimatedthroughanyreliablestatisticalorothermethod.
^Customsinformationsystemforprocessingexportentriesandmanifests,EXIT,wasreplacedbyICSExportsinOctober2004.
#ICSExportsistheexportcomponentoftheICSintroducedinOctober2004toreplaceEXIT.
~ ThevalueofCustomsdutyidentifiedfromcomplianceactivity.
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Figure30excludestherevenueimpactfromcomplianceactivitywhichpreventedillegalproductsfromenteringthemarket.ThedetectionandseizureanddestructionofillegaltobaccoreportedunderOutput1preventedtheevasionof$40.1minrevenue.
Cargo Management Reengineering
Trade modernisation legislation
Thetrademodernisationlegislation,whichsupportsthepolicyandtechnicalinitiativesforCargoManagementReengineering(CMR),comprisesthreeActs:
• Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001
• Import Processing Charges Act 2001
• Customs Depot Licensing Charges Amendment Act 2001.
InJuly2004,areportontheimplementationofthetrademodernisationlegislationwassubmittedtotheSenateLegalandConstitutionalLegislationCommittee.
ImportProcessingCharges
ImportprocessingchargeshavebeenupdatedtoreflecttheintroductionoftheimportscomponentoftheCMRproject.Therevised
costrecoveryregimeisdesignedtoprovidegreatertransparencyandcertaintyofcosts.Thechargeshavebeenrestructuredtorecognisethecostdifferencesbetweeneachmodeofimportationandwillalsoincorporatetheprocessingcostsoflowvaluegoodsnotrequiringanentry.
TheamendmentsarecontainedintheImport Processing Charges Amendment Act 2005andtheCustoms Legislation Amendment (Import Processing Charges) Act 2005.
Accredited Client Program
CustomsundertookfurtherconsultationwithindustryontheproposedAccreditedClientProgram.
InMay2005,theGovernmentannouncedthattheAccreditedClientProgramwouldcommenceduring2005–06.Thisprogramisopentohighlycompliantcompaniesandwillallowthemtoreporttheirimportsandexportsmonthlyratherthanreportingeachandeveryconsignment.
TheprogramprovidesanumberofbenefitstoparticipatingcompaniesinreturnforademonstratedcommitmenttoachievehighlevelsofcompliancewithCustomsrequirements.
Figure �0: Revenue collected on behalf of other agencies ($m)*
�00�–0� �00�–0� �00�–0�
Indirecttaxescollectedfromimporters^
GSTcollections# 1991.87 2051.33 2361.62
LCT 1.08 1.25 1.21
WET 3.34 4.78 5.40
Total indirect taxes 1 ���.�� � 0��.�� � ���.��
Passengermovementcharge(PMC) 290.58 329.79 363.84
Marinenavigationlevy 45.09 44.04 41.67
Protectionofthesealevy 3.90 4.32 4.68
AQISfees+ 44.71 55.03 56.83
AQISfines~ 1.68 1.10 0.99
Woodlevy 0.80 0.89 0.92
Total � ���.0� � ���.�� � ���.1�
* Figuresonanaccrualbasis.
^IndirecttaxescollecteddonotincludethevalueofGSTandWETrefundedonbehalfoftheTouristRefundScheme.
# ExcludestheGSTliabilityraisedonimportswhichisdeferredratherthanimmediatelycollected.TheAustralianTaxationOfficeacquitstheseliabilitiesinsubsequentBASstatementsfromimporters.In2004–05GSTdeferredwas$13.6billion.
+ FeescollectedonbehalfofAQIS.Theseincludefeesforentryscreening,HVLVandprocessingfeesplusEFTJEMScollections.Previousfinancialyearshowedquarantineentryfee(EFTJEMS)only.
~ OnthespotfinescollectedonbehalfofAQISincludingthecollectionsofQuarantineInfringementNoticesissued.
�� AustralianCustomsServiceAnnualReport2004–05
Benefitsinclude:
• monthlydeclarationreportingarrangements
• improvedsupplychainsecurity
• reducedlevelsofCustomsintervention
• eligibilityforaccount-basedprocesses(asopposedtotraditionaltransaction-basedprocesses)
• improvementsinCustomsriskassessmentanalysisbecauseofmoretimelyandhigher-qualityinformation.
TheAccreditedClientProgramwillallowparticipatingcompaniestomakeamid-monthpaymentofdutybasedonanestimateofimports,withareconciliationpaymentinthemiddleofthefollowingmonth.
Theprogramwillberolledoutinthefirsthalfof2006,butsomesystemchangesmayberequiredafterCMRismoreestablished.
Cargo Management Reengineering – Integrated Cargo System (ICS)
TheCMRprojectteamhasachievedmajormilestonesthisyear.TheprojectinvolvesthedevelopmentofanICS,combiningintoonecoherentandtechnologicallymodernsystem,thenumerouscargosystemsthathavebeendevelopedoverthepast30years.
TheintroductionofICSwillenhancecontrolsoverimports(asithasforexports)inmanyareasincluding:
• mandatoryelectronicvessel/aircraft/cargoreportingwithinprescribedtimeframes
• intransitreporting
• anewrequirementfordeclarationoflow-valueimportstoCustoms.
ThesechangesalsosupporttheGovernment’senhancedsecuritymeasuresforimportandexportcargo.
ThenewsystemwillincreasetheabilityofCustomstoassesstherisksofindividualcargoconsignments,toquicklydeliverlowriskconsignments,andtoidentifyandexaminesuspectcargo.
ExtensiveconsultationwithindustryandwithCustomsstafffortheICSsystemincludeda
comprehensivecommunicationscampaign.PracticalinformationwasprovidedonkeyaspectsofCMR,suchastheICStestplans,datesfordifferentphasesoftheICS,informationonsoftwarerequirementsandavailabletraining.Informationproductssuchasfrequentlyaskedquestions,factsheets,websites,referencemanualsandquickreferenceguidesweredeveloped.
AnimportantaspectofthesuccessfulcollaborationwithindustryhasbeenaprogramofregularmeetingswithstakeholdersthathelpedtogaugeindustryreactiontotheICSandtoresolveissues.KeyforumsincludetheSoftwareDevelopersForumwithindustryandtheirsystemsdevelopers,andtheMinisterforJusticeandCustomsRoundTablemeetingswithindustryrepresentativesandseniorCustomsstaff.
TheCMRprojectrepresentsoneofAustralia’slargestpublicsectore-businessprojects.ThismeansthatCustomsisattheforefrontofthedesign,developmentandimplementationofasystemofthismagnitude.Consequently,achievingoperationalcapabilityinthisfastchangingenvironmenthasbeencomplex,time-consuminganddifficult.Thistranslatesintoadditionalcostsandtimescalefortheproject.
ByJune2005,Customshadspentcloseto$190monthedevelopmentandimplementationoftheCMRproject.
ICSExportsrelease
Thehighlightin2004–05wastheimplementationoftheCMRexportscomponent.Theexportscomponentwasinitiallymadeavailableon1August2004forentryofclientinformationandthenon22Septemberforexportmessagesrelatingtocargobeingexportedafter2am(AEST)on6October.TheCustomsConnectFacilityasthesecuregatewayforelectronicallyinteractingwithCustomsapplicationswasimplementedatthesametime.
Consultationincluded:
• around12monthsofindustrytestavailabilitytotesttheintegrationofthesoftwarecomponentsrequiredforthecargosupplychain
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• informationsupportproductsincludingfactsheets,referenceguides,booklets,websites,CDROMs,informationsessionsandinternetupdates
• facilitationofbusinessreadinesssimulations.
OverthreemilliontransactionswereprocessedthroughtheICSexportssystemintheninemonthsto30June2005.
Figure31showsthate-business(EDI)isthemostusedmethodoftransactingbusinesswith
Customsfororganisationswithaneedtoprocesslargevolumesoftransactions.However,theonlinefacility,CustomsInteractive,isconsistentlyusedforservicinglowervolumeusersovertheInternet.
Figure32showsthatthelargestproportionofexporttransactionssuccessfullysubmittedareExportDeclarationsat43.9percent,andCTO(CargoTerminalOperator—air,orContainerTerminalOperator—sea)ReceivalNoticesat40.8percent.
Figure �1: Number of successful EDI and Customs Interactive export transactions processed (1 October �00� to �0 June �00�)
*CTO:CargoTerminalOperator—air,orContainerTerminalOperator–sea
Figure ��: Export transactions successfully processed by type (1 October �00� to �0 June �00�)
Output4 ��
�� AustralianCustomsServiceAnnualReport2004–05
Customs teams – Cargo Management Reengineering
Development and implementation of the Cargo Management Reengineering (CMR) project involved Customs teams across Australia throughout its development.
Thecutoverfromthelegacyexportssystem,EXIT,totheIntegratedCargoSystem(ICS)occurredinOctober2004.TheWesternAustraliaregionformedateamtobeavailablewherenewsystemusers,internalandindustry,wereimplementingICSforexports.StafffromComplianceandCMRwerebasedatCargoTerminalOperators,seaContainerTerminalOperatorsandwithinthePerthInternationalAirTerminaltoprovideadvice.Withonlyafewminorglitches,asuccessfultransitionwasmadefromoldtonew.
WithinVictoria,aCMRtaskforcewithrepresentativesfromeachkeybranchwasestablishedtoassistinternalimplementation.Thetaskforce’sworkwasrecognisedbywinningtheprestigiousAustralianPublicServiceCommissionExecutiveLeadershipGroupVictoriaannualawardfor2004.
TwoexecutivemanagementteamsbasedinCanberrahelpedtosteerchangesatstrategic,operationalandtacticallevels.Theirworkincludedanalysis,development,testing,implementationandcommunicationoflegislative,policyandtechnicalchanges.
TheCMRSeniorExecutiveService/DirectorsTransitionGroupmanagedthebusinesschangesandtheCMRExecutiveGroupmanagedtheICSchanges.
�� AustralianCustomsServiceAnnualReport2004–05
Western Australia Compliance and CMR team members,
left to right, back row: Paul Grant, Alana Carson,
Lindsay Turnor. Middle row: Lara Boon, Karen Jardine.
Front row: Marie Alexander, Alison Murray and Juliet Pomfret.
Victoria Cargo Management Reengineering Taskforce
members: back row, left to right: George Binos, Vic Walker,
Stephen Pearce, Peter O’Keefe, Greg McCarthy, Viktoria
Rother, Front row: Bernadette Tan, Claudia Salustro,
Christopher Castelino, Daryl Snibson, Sue Klee,
Jennifer Pearce, Judith Anders.
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Output4 ��
The CMR Senior Executive Service/Directors Transition team, from back left to right: Ben Evans, Rod Vaughan, Robert Fraser,
Peter Stankiewicz, Stephen Pearce, Myron Bosak. Next row: Andrew Hudson, John Roe, Mike Soding, Henk Smelter,
Jim Stewart, Jane Bailey. Next row: Geoff Johannes, Poh-Ling Lee, Jan Hill, Lyn Foster, Ray Carter, Richard Hunt, Malcolm
Buchanan. Next row: Mark Debeljakovic, Grant McGavin, Alison Neil, Peter Thomson, Tania Barrow, Eloise Saile.
Next row: Michelle Kinnane, Philomena Carnell, Phil Burns, Matthew Corkhill, Murray Harrison, Michelle Brunacci.
Next row: Craig Langford, Kim McGavin, Paris Lai, Ross Viles, Nicole Cottrell, Glenn Thornton. Absent: Jeff Buckpitt,
David Calligaro, Dane Cupit, Shane Davie, Keith Goodall, Randip Jassal, Jo Kennedy, Jenny Milward-Bason, Peter Naylor,
Sharon Nyakuengama, Christine Pruckner, Larry Roux, Craig Sommerville, Daryl Snibson, Scott Wood.
The CMR Executive team, from back left to right: John Mostovoy, Poh-Ling Lee, Ben Evans. Next row: David Calligaro,
Robert Van Rensburg, Michelle Kinnane, Jim Stewart, Andrew Hudson. Next row: Michael Blyton, Naa Opoku, Murray Harrison,
Malcolm Buchanan, Mark Debeljakovic. Next row: Matthew Corkhill, Leigh Edwards, Clare Cable. Next row: Brian Hughes,
Darrell Shepherd, Craig Langford, Ray Carter, Glenn Thornton. Absent: Murray Alston, Michelle Brunacci, Phil Burns,
Philomena Carnell, Dane Cupit, Craig Howden, Randip Jassal, Tony Kummer, Steve Moore, Chris Simpson.
�0 AustralianCustomsServiceAnnualReport2004–05
ICSImportsrelease
DevelopmentoftheimportscomponentoftheCMRapplicationsuitewascompletedinthelatterpartof2004.Functionalitywasmadeavailabletoindustryandsoftwaredevelopersfrom1November2004.ThisenabledthetestingofbothCustomsandindustrysystemsandbusinessprocesses.Customsworkedcloselywiththeindustrysoftwaredevelopersandmajorstakeholdersintheimportchainincludingimporters,cargocarriers,depots,Customsbrokersandfreightforwarders.
Sincethecommencementofindustrytesting,activityhasgraduallyincreased.Theconsultativeandsupportprocessesadoptedforthereleaseoftheexportssystemandthelessonslearnedwereusefultothisphase.Additionalinformationsessionswereheldandproductswereproduced,incidentresolutionprocesseswereimplementedandregularconsultativeforumswereheldwithkeystakeholders.
Finetuningofthesoftwareandupgradingtheinformationtechnologyhardwaretosupportthetransactionloadsforimportscontinuedthroughouttheyear.Thisresultedinsignificantperformanceimprovementsthatwillaccommodatetheanticipatedmessagevolumeandimportactivity.Furthersystemtuningandhardwareupgradeswillbeundertakeninearly2005–06.
Buildingonthesuccessofthecollaborativeexportsbusinesssimulations,theimportsbusinessreadinesssimulationprogramcommencedinJune2005.ThisprogramassistssoftwaredevelopersandindustrytointeractwitheachotherandCustoms.Itsimulatestheworkingsofthesoftware,businessprocessesforcargomovement,andcompliancewiththeprovisionsofthetrademodernisationlegislation.Thesimulationsfocusoninterfacesandfunctionsthatinvolve:
• reportingofcargobyindustry
• clearancebyCustomsofcargoinwardsandoutwards
• revenuecollection
• quarantineandcommunityprotection.
Customsisusingthismethodofbusinesssimulationtotrainitsownstafftousethesystem.
BytheendofJune,thetestinghadprovidedsoftwaredeveloperswithsufficientconfidencetoproceedtothenextstageofimplementation.
Theprogramwillcontinueuptothecutoverdatewithmorecomplexsimulationsforseaandairbusinessscenarios.
Customsmadesignificantprogressonsolutionstotheincidentsfoundduringsoftwaretestingandsimulations.Thisassistsindustrytoparticipateinthebusinessreadinesssimulations.
Customsadoptedastrategytobettermanagethepriorityofincidentsinconjunctionwithindustryandgovernmentagencystakeholders.Thepriorityreflectedtheimportanceforthebusinessreadinesssimulationprogram,thefirstproductiontransactionsneartothecutoverdateandincidentsnotrequireduntilafterthecutoverdate.
Aswithexports,therearekeystakeholdersrangingfromothergovernmentagenciestoindividualmembersoftheexportsandimportscommunities.Havinglaidthefoundations,Customsisbuildingontherelationshipswiththeseagenciesandtheircontributiontotheexportssystemforthedevelopmentandimplementationoftheimportssystem.
ThesystemprovidesamoreintegratedapproachtomanagingtherisksforbothCustomsandtheAustralianQuarantineandInspectionService(AQIS).Thesystemallowsearlydeterminationofhigh-riskcargorequiringfurtherinspectionandspeedymovementoflowriskcargo.ThesystemwillbeintegratedwithAQISentrymanagementsystemswhichhavebeenupgradedordevelopedinlinewithICSfunctions
Manyothergovernmentagenciesalsoprovideinformationforthesystem.TheDepartmentofIndustry,TourismandResourcesprovidestariffconcessioninformation.Informationaboutexports,importsandrevenuecollectionisprovidedtoothergovernmentagenciessuchastheAustralianBureauofStatisticsandtheAustralianTaxationOffice.
Output4 �1
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Thechallengefor2005–06willbethesuccessfuldeploymentoftheICSimportscargosysteminlate2005andbeddinginofrelatedbusinessprocesses.
Supply Chain Security
Supplychainsecurityisamajorinternationalissue.TheWorldCustomsOrganization(WCO)isdevelopingaframeworkofstandardsforthesecurityandfacilitationofglobaltrade,designedtobeadoptedvoluntarilybyCustomsadministrationsthroughouttheworldtoimprove‘end-to-end’securityoverthemovementofshippingcontainersandinternationalcargo.
TheWCOframeworkisunderpinnedbyfourcoreelements:
• advanceelectronicreportingofcargo
• applicationofriskmanagementtoidentifyhigh-riskcargo
• non-intrusiveexaminationofoutboundcargo,onrequest
• benefitstothoseprivatesectorfirmsthatmeetminimalsupplychainsecuritystandards.
AustralianCustomsisheavilyinvolvedinthedevelopmentoftheunderpinningelementsandstandardsthatsupporttheframework.Customshasalreadyimplementedseveralofthecoreelementshavingwellestablishedadvancedelectronicreportingofcargo,riskmanagementintheassessmentofallcargo,andextensivex-raytechnology.
Customswilldevelopfurtherinitiativestoenhancesecurityoverinternationalcargo.
InMay2005,CustomsengagedtwosupplychainspecialiststofacilitateaseriesofworkshopsaimedatproducingastrategicdirectionforCustomsindesigningandimplementingasupplychainsecuritymodel.AsanumberofsupplychainissuesarebeyondtheresponsibilitiesofCustoms,representativesfromtheOfficeofTransportSecurityintheDepartmentofTransportandRegionalServiceswereinvitedtoparticipateintheworkshops.
Thesupplychainspecialistshadextensiveexperienceinthisfield,havingbeenpreviouslyengagedbytheUSGovernmentassystemsintegratorforOperationSafeCommerce.
Theinitiativeaimedattestingandevaluatingvariouscargosecuritybusinessandtechnologicalprocessesonanumberofinternationaltradelanesusingreal-timecargoconsignments.
ThepathwaydevelopedbyCustomsallowedforsettingprioritiesforAustraliansupplychainsecurityinitiativesbasedoncost,relativesecurityvalueandtimeframetoimplement.TheoutcomewillenableCustomstodesign,buildandimplementasupplychainsecuritymodelthatisconsistentwithinternationalbestpracticeandmeetstheWCOFrameworkofStandardstosecureandfacilitateglobaltrade.InJune2005,thisframeworkreceivedendorsementfromthe166membersoftheWCO.Theframeworkhasemergedasanacceptedglobalstandardforthedevelopmentofapproachestoenhancesecurityoverthemovementofinternationalcargo.
Compliance
TheCustomsComplianceAssuranceStrategyisanintelligence-drivenprogramdevelopedbyCustomstodeliveraninternationaltradingenvironmentthatreflectshighlevelsofself-regulatedcompliance.
Thestrategyoperatesonseverallevelsthroughassessmentandanalysisofthelevelandnatureofindustrycompliancewithstatutoryrequirements.Wherenon-complianceisidentified,arangeofcomplianceimprovementandenforcementactivitiesareundertaken.Customscomplianceprogramsfocusonassistingclientswhoarewillingandcapableofcomplyingwithrelevantlegislation,butthereisalsoscopetoimposesanctionsfornon-compliance.
CustomsworkscloselywithothergovernmentagenciessuchastheAustralianTaxationOfficeandtheDepartmentofIndustry,TourismandResources,toassurecompliancewithGSTcollectionandindustrysupportprograms.
�� AustralianCustomsServiceAnnualReport2004–05
Allocation of additional compliance resources
Inthe2005–06Budget,Customsreceived$28.4moverfouryearstoincreasecomplianceassuranceresourcesby60full-timestaff.Theadditionalresourceswillconcentrateontheauditofhighdutycommodities,warehouses,dutyfreestores,industrysupportschemesandGSTexemptions.
Compliance activities (benchmark and focused audits)
BenchmarkauditsuseastatisticallyvalidsampleoftheimportingandexportingcommunitytoprovideanindicationofthelevelofcompliancewithCustomslaw.Companiesthatexhibithighlevelsofnon-complianceinabenchmarkauditaresubjecttofurthercomplianceactivitysuchas‘focusedaudits’.
Inadditiontobenchmarkaudits,Customsconductsothercomplianceactivitiesbothatthetimeof,andafter,transactionsareprocessed.Realtimeactivitiesincludeprofilingandredlineimportdeclarationchecks,cargoexaminationsandwarehouseanddepotchecks.Post-transactionauditactivityincludesdeskaudits(adocumentaryauditundertakenintheofficeratherthanavisittothepremises),focusedauditsandleverageexercises.Theseactivitiesareconductedinresponsetoidentifiedrisks.
Benchmarkauditresultsfor2004–05onceagainconfirmedthatrevenueleakageintheimportsectorsauditedisnotofamateriallevel.
Thefiguresbelowshowthenumberofbenchmarkandfocusedauditscarriedoutin2004–05.
Revenue coverage
Customsconductedposttransactioncomplianceactivityacrossarangeofcompanies.Thecustomsvalueofthegoodsimportedbythesecompanies,$15910m,was10percentofatotalvalueofimports($149520m).
Realtimeimportcomplianceactivitiescoveredafurtherfivepercentofthevalueofimports.Theseactivitiesincludedleverageexercises,industryreferralsandactionresultingfromprofilematches.
Forexports,thefreeonboard(FOB)2valueofgoodsexportedsubjectedtocomplianceactivitywas$27376mrepresenting21percentofatotalvalueofmerchandiseexportsof$126720m.
Figure ��: �00�–0� Benchmark and focused audit program
Regions Benchmark audits completed
Focused audits completed
Regional total
NewSouthWales 41 22 63
Victoria 32 40 72
Queensland 25 19 44
SouthAustralia 16 13 29
WesternAustralia 24 5 29
Tasmania 3 1 4
NorthernTerritory 1 1 2
Total 1�� 101 ���
Figure ��: Percentage of total value of customs imports and exports in �00�-0� subject to compliance activity
Imports (CVAL) Percentage Exports(FOB) Percentage
Posttransactionactivity 10 Posttransactionactivity 8
Realtimeactivity 5 Realtimeactivity 13
Total 1� Total �1
2Thetermdefinesthecostofthegoodsincludinganycartagecosts,incurredinplacinggoodsonboardavesselattheplaceofexport.
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Declaration validation examinations
DeclarationvalidationexaminationsareanewactivityconductedattheContainerExaminationFacilitiestoverifythatinformationdeclaredtoCustomsiscorrect.TheseexaminationsareconductedwhenacontainerisselectedforunpackingandaCustomsDeclarationfortheconsignmentislodged.Theconsignmentisexaminedtoensurethatthegoodsenteredaredescribedcorrectlyandcomplywiththelaw.
Export compliance strategy
CustomsadministerscontrolsonbehalfofpermitissuingagenciesontheexportofrestrictedgoodsandpassesexporttransactioninformationtotheAustralianBureauofStatisticsforitscompilationofinternationaltradestatistics.
Exportsweresubjecttocomplianceattention.ThiswaspossibleundernewexportrelatedprovisionsintheCustoms Legislation Amendment and Repeal (International Trade Modernisation) Act 2001commencingandcoincidedwiththecommencementoftheexportsreleaseoftheICS.
Developing capability within compliance assurance
InternalcompliancecapabilityisbeingbuiltthroughthedevelopmentoflearningproductsforusebyregionalComplianceAssuranceteams.In2004–05,fourmajorlearningprojectsweredeliveredwithinbudgetandtimeframe.
Themajorprojectscompletedwere:
• anupgradetotheInfringementNoticeSchemetrainingonlineforCustomsstaff
• basicCustomstraining(investigationskills)
• assurancetechniquestraining(level1)
• acompliancetrainingpackageforuseatContainerExaminationFacilities.
AnewCustomscompliancemanualwascompletedtoreflectlegislativechangesandthereengineeredcompliancerole.ThisworkwasundertakenacrossCustomssothattheproductsareownedanddesignedbybothpolicyownersandendusersacrossAustralia.
Infringement Notice Scheme
CustomsadministersanInfringementNoticeSchemethatallowsminorpenaltiestobeimposedforabroadrangeofstrictliabilityoffences.
WiththereleaseoftheexportscomponentoftheICS,14export-relatedstrictliabilityoffencesbecameenforceableundertheInfringementNoticeScheme.However,anadministrativemoratoriumofsixmonthsendingon6April2005,prevailedwhileindustryadjustedtothenewreportingrequirements.
TheCEO’sGuidelinesforissuinginfringementnoticeswereupdatedtoincorporateamendmentsmadetoanumberoftheoffencessincethecommencementofthescheme.TheseguidelinesweretabledinParliamenton16November2004.
Onehundredandtwenty-twoinfringementnoticeswereissuedwith98noticespaidandthreenoticeswithdrawn.Noprosecutionswereinitiatedfornon-paymentofaninfringementnotice.ThetotalamountpaidasaresultofInfringementNoticesissuedwas$108359.
Australian Law Reform Commission report on Federal civil and administrative penalties
The2003–04AnnualReportreportedthatCustomswasdevelopingaresponsetoCustomsspecificrecommendationsbytheAustralianLawReformCommissiononFederalcivilandadministrativepenalties.
Customshasdevelopedcriteriaforclassifyingoffencesascivilorcriminal.AninternalconsultationphasehascommencedtodevelopproposalsforthelegislativerevisionoftherelevantpartsoftheCustomsAct.
Duty recovery
CustomsreceivedanumberofcomplaintsconcerningitsapproachtotherecoveryofdutyfollowingadecisionoftheHighCourtinMalika Holdings Pty v Stretton(Malika).Complainantshavearguedthatrecoveryactionshouldbelimitedto12months.Customsapproach,supportedbyindependentadviceandlegalcouncil,istorecoverdutyforperiodsofuptofouryears.
�� AustralianCustomsServiceAnnualReport2004–05
AdecisionoftheFullFederalCourt(Parks Holdings trading as Gladstone v CEO of Customs,1December2004)supportedCustomsapproach(seepage142).
Investigations of fraud
Customsinvestigatesseriousoffencessuchasrevenuefraud.CustomsalsoconductsfinancialinvestigationsinaccordancewiththeProceeds of Crime Act 2002torecoverassetsassociatedwithcriminaloffences.
TheCommonwealth Fraud Control GuidelinesandtheAustralian Government Investigation StandardsunderpinCustomsfraudcontrolmethodstominimiserevenueleakage.Customspayscloseattentiontoappropriateinvestigationstandards.
Figure ��: Summary of investigation activity – frauds on the revenue
�00�–0� �00�–0� �00�–0�
Received 110 102 129
Casesadopted 72 61 72
Casescompleted^
withprosecution(throughcourts) 22 34 26withoutprosecution 58 71 41
Caseswhereprosecutionbriefscompleted^ 28+ 23 20
^ Includescasesadoptedinpreviousyears.
+ Doesnotincludesixrecoverybriefs.
Customssuccessfullyprosecuted26fraudcasesthisyear.Thepenaltiesrangedfromafinetofourseparateprisonterms.Thesecasescoveredvariousgoodswithoveraquarterofthecasesinvolvingtobacco/cigarettes.
Therewasanotableincreaseinthedetectionrateofillicittobaccoimportations.Thismaybeattributedtotheenhanceddetectioncapabilitiesattheborder.
Duringthefinancialyears2003–04and2004–05,Customsgraduallyincreasedthelevelofattentionpaidtotheidentificationandrecoveryofcriminalassetsassociatedwithrevenuefraud.SeventeencaseswereinvestigatedbyCustomsduringthisperiod,whichresultedintherestraintofassetshavinganestimatedvalueofmorethan$21mbytheCommonwealthDirectorofPublicProsecution.
Over a quarter of fraud cases in 2004–05 involved
tobacco/cigarettes
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Trade
Valuation and origin
Rulesoforigin
CustomsimplementedtherulesoforiginfortheAustralia–UnitedStatesFreeTradeAgreement(AUSFTA)andfortheThailand–AustraliaFreeTradeAgreement(TAFTA).
BothAUSFTAandTAFTAcommencedon1January2005.TherulesoforiginfortheFreeTradeAgreements(FTAs)arespecifiedin:
• US Free Trade Agreement Implementation Act 2004
• Customs (Australia–US Free Trade Agreement) Regulations 2004
• Customs Amendment (Thailand–Australia Free Trade Agreement Implementation) Act 2004
• Customs (Thailand–Australia Free Trade Agreement) Regulations 2004.
InformationsessionsforCustomsbrokersandtrainingcoursesforCustomsstaffwereconductedinallStatesandintheNorthernTerritory.CustomsalsoredevelopedtheInternetsitedevotedtopreferentialrulesoforiginandproducedanewCustomsmanualforeachoftheFTAs.
WiththeimplementationoftheAUSFTAandTAFTA,Customsalsointroducedaformaloriginadviceservicetoclients.Todate,Customshasissued37bindingoriginadvicesinrelationtotheFTAs.
UndertheTAFTA,specialsafeguardsapplytocertainsensitiveagriculturalgoods.ForAustralia,specialsafeguardsareclaimedforcertaintunaproducts(includingcannedtuna),pineappleproductsandpineapplejuicefortheperiodfromthecommencementoftheFTAuntil31December2008.
Wherethevolumeofsafeguardgoodsimportedinaparticularcalendaryearexceedsaspecifiedvolume,safeguardsmaybeimposed.Ifspecialsafeguardsareimposed,thedutyrateforsafeguardgoodswillreturntothegeneralratefortheremainderofthecalendaryear.
CustomswillmonitorimportsofthespecialsafeguardgoodsandadvisetheDepartmentofAgriculture,FisheriesandForestryiftheannualvolumeforanyofthosegoodsisreached.
InDecember2004,AustraliaandNewZealandannouncedthattherulesoforiginundertheAustraliaNewZealandCloserEconomicRelationsTradeAgreement(ANZCERTA)wouldbereformedandthattheChangeinTariffClassificationapproachwouldbeadopted.CustomsissupportingtheDepartmentofForeignAffairsandTradeandtheDepartmentofIndustry,TourismandResourcesontheredraftingoftherulesoforiginfortheANZCERTA.
Theprocessofidentifyingchangesfortheexistingrulesoforigin,basedontheChangeinTariffClassificationapproachhascommenced.ThisistoreflecttheWorldCustomsOrganizationHarmonizedCommodityDescriptionandCodingSystem(knownastheHarmonizedTariff ).ThelatestchangestotheHarmonizedTariffareduetocommenceon1January2007.
CustomsisassistingothergovernmentagenciesinthenegotiationofrulesoforiginforpossibleFTAswithChina,theAssociationofSoutheastAsianNations(ASEAN),theUnitedArabEmiratesandMalaysia.
Valuation
DeterminingthecorrectcustomsvalueofimportedgoodsisessentialtocollectCustomsduty,indirecttaxesandtradestatistics.Toassistimporters,Customsprovidesavaluationadviceservice.
Customsissued94bindingvaluationadvicesin2004–05.Twovaluationadvicesweresubjecttointernalreviewandbothdecisionswereaffirmed.FordetailsofexternalreviewsconductedbytheAdministrativeAppealsTribunalandtheFederalCourt,refertoAppendixD.
CustomsmetwiththeAustralianTaxationOfficetodiscussthepossibleharmonisationtothetreatmentofcross-borderdealingsbetweenrelatedparties.Thecustomsvalueofimportedgoodsmaybeabletobedeterminedonthe
basisofinformationcontainedinanAdvancedPricingArrangementwiththeAustralianTaxationOffice.AnAdvancedPricingArrangementestablishesatransferpricingmethodologytobeusedtodeterminearm’s-lengthpricesforfuturetransactions.CustomsandtheAustralianTaxationOfficewillexplorefurtheroptionsforharmonisation.
Tariff concessions
CustomsdirectlyadministersorassistsintheadministrationofanumberofconcessionalitemsunderSchedule4ofthe Customs Tariff Act 1995(theTariff ).Theconcessionalitemscoverarangeofgoodsandpeopleeligibletoaccessconcessionalarrangements.TheseareinlinewithinternationalagreementsonindustryschemesofferedbygovernmentagenciesincludingtheDepartmentofIndustry,TourismandResourcesandtheDepartmentofAgriculture,FisheriesandForestry.
Figure36showstheCustomsdutyforgoneasaresultoftheconcessionalarrangementsavailableunderSchedule4oftheTariff.
Figure37showsthenumberofapplicationsandrevocationsundertheTariffConcessionScheme.Thenumberofapplicationsincreasedfrom506in2003–04to562in2004–05.
Eleveninternalreviewsofdecisionsontariffconcessionapplicationsandrevocationrequestswerefinalised,comparedwitheightin2003–04.Allreviewswerecompletedwithinlegislatedtimelimits,withanaveragetimeof37daysfromreceipt.Thereweretwoexternalreviewsoftariffconcessionapplications.
Tariff classification
Customsprovidestariffclassificationadviceservicestoassistimportersandexportersofgoods.TariffclassificationisimportantasitisusedtodeterminetherateofCustomsdutyforimportedgoodsandfacilitatesthecollectionoftradestatisticsbytheAustralianBureauofStatistics.
Theserviceincludesaninternaladministrativereviewprocess,todealwithappealslodgedbyclientswheretheydisagreewiththetariffadvice.TheroleofinternalreviewhasbeencentralisedinCanberrasinceJuly2002.
CustomsCentralOfficestaffundertookaseriesoftrainingsessionsforregionalofficers.
Figure38showsthetotalnumberoftariffadvicesissuedandabreakdownofthereviewsundertakensincetherolewascentralisedin2002.
Figure ��: Duty forgone through concessional arrangements ($m)
Industry assistance measureConcession
Item �00�–0� �00�–0� �00�–0�
TariffConcessionScheme 50 489.1 479.0 548.4
Textileclothingandfootwearpolicyby-law 40A 38.5 26.8 20.4
TRADEX* 21A 138.7 129.3 93.4
Projectby-lawschemez 45,46,56 7.1 .. ..
Enhancedprojectby-laws 71 20.5 47.0 43.0
Cheeseandcurdquotascheme 62 10.7 11.8 12.5
Textileclothingandfootwearoverseasassemblyprovisions 61 5.6 5.4 4.8
AutomotiveCompetitivenessInvestmentScheme(ACIS) 41E,41G 555.6 586.9 531.1
OtherConcessions 101.8 105.0 112.8
Total 1 ���.� 1 ��1.1 1 ���.�
* TheTRADEXschemereplacedtheTariffExportConcessionScheme(TEXCO)inJuly2000whentheDepartmentofIndustry,ScienceandResourcesassumedresponsibilityundertheTRADEX Scheme Act 1999.Underitem21AofSchedule4totheCustoms Tariff Act 1995,Customsfacilitatestheentryofgoodsimportedunderthescheme.
# Projectby-lawschemewasreplacedwithEnhancedProjectBy-LawsinJuly2002.
�� AustralianCustomsServiceAnnualReport2004–05
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Figure ��: Item �0 in Schedule � of the Tariff —Tariff Concession Scheme
�00�–0� �00�–0� �00�–0�
Applications
Received 526 506 562
Approved 446 407 455
Notapproved 107 82 62
Revocations
Received 20 25 8
Approved 16 22 9
Notapproved 2 2 2
Customsinitiated 542 753 462
Figure ��: Tariff advices and reviews
�00�–0� �00�–0� �00�–0�
Tariffadvicesissued 4232 3602 3254
Reviews
Customsdecisionoverturned 59 38 21
Customsdecisionaffirmed 42 47 36
Reviewdecisionsubstituted 20 5 4
Reviewswithdrawn 4 1 4
Reviewsyettobefinalised - 3 3
Total reviews undertaken 1�� �� ��
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Tariff legislation
SeveralBillsinvolvingchangestotheCustoms Tariff Act 1995wereintroducedintoorpassedbyParliament.Duetothespecialistnatureofthelegislation,draftingwasprimarilyundertakenwithinCustomspriortothefinalBillsbeingproducedbytheOfficeofParliamentaryCounsel.ThecreationofthoseBillsinvolvedliaisonwithanumberofgovernmentdepartmentsincludingtheDepartmentofForeignAffairsandTrade,theDepartmentoftheTreasuryandtheDepartmentofIndustry,TourismandResources.
Trade and tax liaison
CooperationwiththeAustralianTaxationOffice
IndirecttaxesthatapplytogoodsproducedorsuppliedinAustralia(i.e.GST,exciseduty,wineequalisationtaxandluxurycartax)alsoapplytoimportedgoods.CustomsassessesandcollectstheindirecttaxpayableonimportedgoodsonbehalfoftheAustralianTaxationOffice.Thetwoorganisationsalsocooperateontheadministrationoftaxconcessionsthatarebasedontheexportofgoods.
CustomsreceivesfundingforadministrationofGSTforimportedandexportedgoodsaspartoftheCommonwealth-StatearrangementsonGSTadministration.Customsreceived$47min2004–05tocarryoutGST-relatedactivitiessuchasimportandexportprocessing,complianceactivitiesandadministrationoftheTouristRefundScheme.
Aninteragencyliaisoncommitteemeetseverytwomonthstooverseeindirecttaxadministrationattheborderandtoactuatecoordination.Thecommitteedealtwithissuesincludingdatatransfer,exportcargoexaminationproceduresandtransitiontotheICS.Sub-committeescontinuedtofocusonspecificissuessuchascomplianceandadministrativepenalties.
GSTAdministrationSubcommittee
Customsprovideshalf-yearlyperformanceandcostreportsonGSTadministrationaspartofreportingrequirementsundertheIntergovernmentalAgreement.ThisAgreementcoversthedistributionofGSTrevenueaftercostsarededucted.
�� AustralianCustomsServiceAnnualReport2004–05
Customs teams – Tariff Concession Scheme: removal of duty on business imports
When governments announce budget decisions, a range of government machinery is required behind the scenes to implement the change. An example is the government decision in the �00� Budget to remove the three per cent tariff on business inputs under a Tariff Concessions Order (TCO).
TheGovernmentannouncedthechangetoreducebusinessinputcosts,increasetheinternationalcompetitivenessofAustralianbusiness,andencourageinvestmentinefficientandsustainableindustries.
ThechangeinthedutyratepromptedanincreaseinrequestsforbothapplicationsandrevocationsofTCOsusingtheTariffConcessionScheme.
The Tariff Concession section, left to right: Glen Beatty, Steve Adams, Bob Crawford, Keith Vanderslacht, Debbie Hayer,
John Potter and Paul Mercer.
ThechangeswereimplementedbythespecialistTariffConcessionsectioninCentralOfficethatprovidesadviceandassistancetoallareasofCustoms,governmentagenciesandindustryoncomplexissuesrelatingtotheinterpretationandadministrationofcertaintariffconcessionitems.
Thesection’sworkrelatestoadministrationofItem50ofSchedule4oftheCustoms Tariff Act 1995,alsoknownastheTariffConcessionScheme.Theteamismadeupoftechnicalexpertswithbroadindustryknowledgeandanabilitytoresearch,interpretandanalysecomplexinformation.Theseskills,combinedwithastrongclientfocus,allowstheteamtomaintainavalue-addingapproachwhilemeetingitslegislativedeadlinestoassessandimplementapplicationsorrevocationsforaTCO.
�� AustralianCustomsServiceAnnualReport2004–05
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InternationalcooperationwithMalaysia
InMarch2005,adelegationofMalaysianCustomsofficersvisitedAustraliatostudyGSTadministration.CustomsfacilitatedmeetingsbetweentheDepartmentoftheTreasuryandtheAustralianTaxationOfficetoprovideabroadunderstandingofAustralia’sGSTsystemandalsoprovideddetailsofCustomsadministrationofGSTonimportedgoods.
InternationalcooperationwithUnitedArabEmirates
InMarch2005,CustomsprovidedinformationaboutAustralia’sadministrationofGSTonimportedgoodstoarepresentativeoftheUnitedArabEmiratesCustomsService.ThesediscussionswereinconjunctionwithaUnitedArabEmiratesdelegationinAustraliatodiscussaFreeTradeAgreement.
Harmonized System Committee
AustraliaisamemberoftheWCOandisacontractingpartytotheHarmonisedSystemConvention.CustomsrepresentsAustraliaattheWCO,andattendsmeetingsoftheHarmonizedSystemCommitteeandtheReviewSub-Committee.ChangesforthenewHarmonizedSystemnomenclature(2007)havebeenapprovedandconfirmedbytheWCOCouncil.WorkisunderwaytoimplementthesechangesintotheAustralianTarifffor2007.FurtherworkisprogressingintoimplementingchangesapprovedbytheWCOonstreamliningHarmonizedSystemprocedures.
Passengers
Passenger and crew duty free concessions
Anewarrangementforpassengerandcrewdutyfreeconcessionswasimplementedon1February2005.Aninterdepartmentalcommitteereviewconsideredincreasestopassengerconcessionsasabalancebetweentourism,facilitation,industryandrevenueinterests.Thenewconcessionsprovidehigher
limitsfordutyandtax-freegoodsfortravellers.Travellerswhoimportgoodsinexcessofthelimitslosetheentitlementtoconcessions.
ImplementationoccurredsoonaftertheCommonwealthandStateGovernmentsendorsedthechangesasbothtravellersanddutyfreeoperatorsshowedstronginterestforearlyimplementation.
Theagreementtointroducenewconcessionlimitsrecognisestherehadbeenlittlechangetodutylimitssince1987.Priortoimplementation,Customswrotetorepresentativesofleadingtourismindustrybodiesexplainingthechangesindetail.Sometwomillionleafletswerepublishedandmadeavailableatinternationalairportstooutgoingpassengersfrom15December2004.Nationalnewspapersalsofeaturedarticlesaboutthenewconcessions,someincludingdetailedarticlesintheirtravelsectionsaswellasmoregeneralreportinginDecemberandJanuary.
Thechangesbroughtaboutasharpriseinthenumberofpassengercomplaintsfromtravellerswhohadexceededlimitsandwerethenrequiredtopaydutyandtax.Thisisexpectedtodiminishastravellerawarenessincreases.Therateofcomplaintsreducedgraduallyafterimplementation.
DetailsoftheconcessionslimitsareontheCustomsInternetsite.
Passenger Movement Charge
ThePassengerMovementChargeisadministeredbyCustomsunderthePassenger Movement Charge Collection Act 1995.AtitsinceptionitwasintendedasanotionalcostrecoverymeasuretorecoupthecostsofCustoms,DIMIAandAQISprocessingofinwardandoutwardpassengersatAustralia’sbordersandthecostofissuingshort-termvisitorvisas.MoniesarepaiddirectlytotheConsolidatedRevenueFund.
PassengerMovementChargecollectionsamountedto$363.8mfor2004–05.
Figure ��: Costs incurred in �00�–0� by agencies providing passenger processing service
Customs DIMIA AQIS
$177.458m * $71.999m
* FullcostsforDIMIAwerenotavailableatthetimeofpublication.Thefigurefor2003-04was$68.876m.
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�0 AustralianCustomsServiceAnnualReport2004–05
The Tourist Refund Scheme
TheTouristRefundSchemeallowsAustralianandoverseasvisitorsarefundofGSTandWETpaidongoodsboughtinAustraliawhicharesubsequentlyexportedbyvisitors.
SincetheschemebeganinJuly2000,1.73millionclaimshavebeenmade,resultingin$212mofGSTandWETbeingrefunded.Thisequatestoover$2.3bworthoftouristretailsalesinAustralia.
Planning for the future
ThecutoverdatefortheimportscomponentoftheICShasbeendeterminedinconsultationwithindustry.Legislationwasrequiredtoimplementthesechangedarrangementssuchthatindustrywillhavethreemonthstofinalisetestinganddocumentation,installandtraintheusersoftheirsystemspriortothecutoverdate.
TheimportscomponentoftheICSwasavailableforusebyindustryfrom19July2005inaccordancewiththeCustoms Legislation Amendment and Repeal (International Trade Modernisation) Act 2001.
Nextyear,Customswill:
• developaCustoms-to-businesspartnershipprogramtoincreasecargosecurity
• prepareforthecommencementoftheAccreditedClientProgram
• applyadditionalposttransactionalauditactivityasaresultoftheappointmentof60additionalstaff
• provideinputtoFreeTradeAgreementnegotiationswithcountriesincludingtheUnitedArabEmirates,China,MalaysiaandASEAN/ANZ
• continuetheintegrationoftheredevelopedTARCONandTAPINcomputersystemswithintheICS
• implementlegislativeandadministrativechangesresultingfromtheupdateofthe2007HarmonisedSystembytheWCO
• implementmajorchangestotherulesoforiginfortheANZCERTA
• conductandfinalisearequestfortenderfortheprovisionofpaymentservicesfortheTouristRefundScheme
• contributetothereviewsofthePassengerMovementChargeandtouristshopping.
Figure �0: Summary of Tourist Refund Scheme claims
�00�–0� �00�–0� �00�–0�
Numberofclaimsmade 359694 389266 433214
Percentageofclaimsapprovedforpayment 97.4% 96.6% 96.5%
AmountofGST/WETrefunded $45.3m $46.9m $49.8m
Mailbackclaimsprocessedwithin30days*(to4October2002)
99%# # #
CreditcardandAustralianbankaccountrefundsprocessedwithinfivebusinessdays(from18Nov2002)
84.4% 99.0% 99.4%
Chequerefundspostedwithin15businessdays(from18Nov2002)
98.7% 97.6% 98.4%
Australianretailerparticipation 20500 18300 19230
Numberofcomplaintsreceivedandprocessed 294 149 202
* DuetothebusinesschangesdeliveredwiththenewTouristRefundSchemeITsysteminNov2002,themailbackprocesswasreplacedwithfullelectronicprocessingforallrefunds.
# AsaresultofthetransitiontothenewTouristRefundSchemeITsystem,abacklogofclaimsfortheperiod4October2002to17November2003wereprocessedretrospectivelyinthenewsystem.Themajorityofclaimswithinthisperioddidnotmeetthe30-dayservicestandard.
Output5 �1
Output �
Anti-dumping and countervailing administration
Output5pricingisshowninthefinancialstatementsonpage210.
ThisOutputcoverstheinvestigationofdumpingandcountervailingcomplaintsandthedetermination,implementationandreviewofassociatedmeasures.Italsocovers:
• provisionofadvicetoindustryandforeigngovernments
• maintenanceofAustralia’spolicyandlegislativeframeworkforanti-dumpingandcountervailingadministration
• advicetogovernmentandrepresentationofAustralia’sinterestsintheWorldTrade
Organisation(WTO)foranti-dumpingrulesandpractice
• expertparticipation(asresourcespermit)onWTOdisputepanels.
Trademeasuresprogramsenable,whereappropriate,AustralianindustrytobenefitfromAustralia’smembershipoftheWTOagreementsonanti-dumpingandsubsidiesandcountervailingmeasures.
Keyobjectivesin2004–05wereto:
• assessand,ifappropriate,investigateandreportonallegationsofdumping,subsidy,injuryandcausallink
• implementmeasuresresultingfrominvestigationsandmonitorcompliance
• advisestakeholdersoftheservicesavailableandtheassociatedpolicyandprocedures
Figure �1: Performance against targets set in the �00�–0� Portfolio Budget Statement–Output �
Quality/quantity performance measures Target* Actual
Quality
Proportionofanti-dumping/countervailingcasesandreviewscompletedwithin155days
Cases 100% 56.0%^
Reviews 100% 0.0%^
Quantity
Numberofanti-dumping/countervailingcases **
Carriedforwardfrom2003–04 4
Lodged 16
Rejected 7
Withdrawn/Terminated 8
Concluded(approvedbyMinister) 2
Carriedforwardto2005–06 3
Numberofanti-dumping/countervailingreviews**
Carriedforwardfrom2004–05 2
Initiated 15
Rejected 2
Withdrawn/Terminated 0
Concluded(approvedbyMinister) 2
Carriedforwardto2005–06 13
AppealstotheFederalCourt ** 3
Price $�.���m $�.�1�m
* Targetsmaybeperformancetargets,serviceleveltargetsorestimates.
**Workloadsagainstthesemeasurescannotbeanticipatedastheyaredependentoninternationaltrends/economiccircumstancesbeyondCustomscontrol.
^TheMinistercanapproveanextensiontothetimeinwhichaninvestigationmustbecompleted.Takingintoaccountapprovedextensionsoftime,allinvestigationswerecompletedwithinthestatutorytimeframes.
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�� AustralianCustomsServiceAnnualReport2004–05
• contributetothedevelopmentofinternationalpracticeandprocedureonanti-dumpingandcountervailingadministration.
Keyachievementswere:
• successfulconsultationon,andimplementationof,theGovernment’sdecisiontorecogniseChinaasamarketeconomy,ensuringthatindustrycontinuestohaveaccesstoaneffectiveanti-dumpingregime
• contributionstoWTOmultilateraltradenegotiationsandWTOtechnicalimplementationcommittee
• effectiveandconstructivedialoguewithanti-dumpingstakeholders.
Policy
World Trade Organization participation
CustomsplayedanactiveroleintheformulationandpresentationofAustralia’sresponsestoissuesarisingintheWTODoharoundnegotiationsandcontributedtodebateandpolicyformulationonanti-dumpingissues.TheinvolvementofCustomsofficersintheWTOprocessenablesAustralia’scontributiontobesupportedbyexpertadvicefrompractitioners.
International cooperation
SeveraldelegationsofChineseGovernmentofficialsvisitedAustraliatodiscussAustralia’santi-dumpingadministration.Thesediscussionswereusefulinbuildingunderstandingbetweenthetwoadministrations.
CustomswasrepresentedatthefourthAustralia-KoreaMinisterialJointTradeandEconomicCommissionSeniorOfficials’meetinginMay2005.Thesemeetingscontinuetopromoteunderstandinganddialogueonanti-dumpingadministration.
CustomsdeliveredapresentationonAustraliananti-dumpingpracticeandprocedureinrelationtocontinuationinquiriesatthe2005SeoulInternationalTradeSeminar.
Inaddition,CustomsworkedcloselywiththeDepartmentofForeignAffairsandTradeinfurtherbilateraltradediscussionswithKoreaandIndonesia.
Anti-dumping response to recognition of China’s market economy status
TheGovernment’sdecisiontotreatChinaasamarketeconomywasasignificantfocusforAustralia’santi-dumpingadministrationin2004–05.
Followingextensiveconsultationwithindustryandotherstakeholders,Customsintroducedregulatoryandoperationalamendments.ChinawillbetreatedthesameasotherWTOmembersforthepurposeofanti-dumpinginlinewithAustralia’santi-dumpingregime.Asaresult,Australianindustryhasthesamelevelofprotectionasitdidpriortothechangedarrangements.Thisoutcomewasgenerallysupportedbyindustry.
Consultation with stakeholders
Customsactivelyengagedwithitsstakeholdersbyparticipatinginnumerousdiscussionsonpolicyandpracticeissues.
CustomsandtheAustralianCompetitionandConsumerCommission(ACCC)metthisyeartodiscussissuesofmutualinterest.Inparticular,theydiscussedarrangementsforexchangeofinformationoninvestigations,andsubmissionsthatmaybemadebytheACCCtoCustomsinvestigations.
GiventheimportantroleperformedbytheTradeMeasuresReviewOfficer(TMRO)inAustralia’santi-dumpingadministration,regularmeetingswereheldbetweenCustomsandtheTMROtodiscusssignificantpolicyandadministrativeissues.
CustomsattendedindustrygroupmeetingstoinformstakeholdersofCustomsroleinAustralia’santi-dumpingadministration.
Cooperation with stakeholders – steel import monitoring
In2002,inresponsetoindustryconcernsaboutpotentialimpactsofUSsteelsafeguards,theGovernmentestablishedaCommitteetomonitorsteelimporttrends.CustomscontinuedtoprovidetheSteelImportMonitoringCommitteememberswithweeklygradedalertsaboutchangesinsteelimportvolumesandprices.TheCommitteesupplementsthis
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informationwithmoredetailedmonthlyinformationpublishedbytheAustralianBureauofStatistics.
Practice
Meeting statutory timeframes
ExtensionsoftimetoplacestatementsofessentialfactsonthepublicfilegrantedbytheMinisterin2004–05aredetailedinFigure42below.
Investigations for new measures
Customsinitiatednineinvestigationsinresponsetoindustryapplications:
• fourinvestigationswereforgoodsinthesteelindustry(certainhollow-steelsectionexportedfromChina,Korea,MalaysiaandThailandlaterterminated)
• oneforthefoodstuffscategory(preservedmushroomsexportedfromChina)
• onefromthechemicalssector(sodiumhydrogencarbonatefromChina)
• onefromtheelectricalappliancessector(domesticrefrigeratorsfromKorealaterterminated)
• onefromthepapersector(greybackcartonboardfromKorea)
• onefromtheplasticssector(LLDPEfromCanadalaterterminated).
ThemajorityofinvestigationsinvolvedgoodsexportedfromAsia(threeeachfromChinaandKoreaandoneeachfromMalaysiaandThailand).OneinvestigationrelatedtogoodsfromCanada(seeaboveinrelationtoLLDPE).
Thenumberofapplicationsfornewmeasuresdecreasedin2004–05.ChinaandKoreawereagainthesourcecountriesofgreatestinterest.
TheinvestigationofcertainelectricresistanceweldedcircularhollowsectionsexportedfromKorea,startedin2003–04,wasterminated.
Threeinvestigationswerecurrentat30June2005(greybackcartonboardfromKorea,sodiumhydrogencarbonatefromChinaandpreservedmushroomsfromChina).
Thenumberofdumpinginvestigationsinitiatedworldwidehasdeclinedinrecentyears.Thefocusforsourcecountriesappearstoalsohaveshifted.Inthe2003calendaryear,Indiawastheworld’slargestuserofanti-dumpingsystems.In2004,theEuropeanUnionwastheworld’slargestuser,followedbyChinaandtheUS.
Australiawastheeighthlargestuseroftheanti-dumpingsystemin2004,althoughthenumberofinvestigationshasalsoreducedoverrecentyears.
Figure ��: Extension to statutory timeframes
Goods Export county Additional time Comment
domesticrefrigerators
Korea 60days toobtainandverifyinformationoninjury,exportpricesandnormalvalues
linearlowdensitypolyethylene(LLDPE)
IndonesiaKoreaThailand
42days largevolumeofdatacollectedandthecomplexityinverifyingthatdata
highdensitypolyethylene(HDPE)
KoreaMalaysiaSingaporeSweden
42days largevolumeofdatacollectedandthecomplexityinverifyingthatdata
LLDPE Canada 43days largevolumeofdatacollectedandthecomplexityinverifyingthatdata
certainsilicon China 30days additionaltimeforpartiestoprovideinformationandaccesstoon-siteverificationofdataonexportpricesandnormalvalues
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Measures imposed (includes price undertakings accepted)
TheMinisterimposednewanti-dumpingmeasuresoncertainsiliconexportedfromChina.
Informationaboutcurrentinvestigations,goodssubjecttomeasuresandcountriesinvestigatedispubliclyavailableinthemonthlystatusreportpublishedontheCustomsInternetsite(anti-dumping).
Reviews of existing measures
Anyaffectedpartymayapplyforareviewofthevariablefactorsrelevanttotheexistingmeasures.Investigationsmaybeinitiatedonreceiptofaproperlydocumentedapplication.
Customsinitiatedreviewsofexistingmeasuresinthefollowingmatters:
• LLDPEfromIndonesia,KoreaandThailand
• HDPEfromKorea,Malaysia,SingaporeandSweden
• certainhotdipgalvanisedcircularhollowsectionsfromThailand
• certainwashingmachinesfromKorea(Ministerinitiated)
• Polyvinylchloride(PVC)fromHungary,Israel,Japan,Korea,ThailandandUSA.
Twoinvestigationscarriedforwardfrom2003–04werecompleted:
• certainhotrolledstructuralsteelsectionsfromKorea
• certaincoppertubefromKorea.
CustomsreportedtotheMinisteron:
• LLDPEfromIndonesia,KoreaandThailand
• HDPEfromKorea,Malaysia,SingaporeandSweden
• washingmachinesfromKorea.
TheMinisterchangedthevariablefactorsasthebasisforthetakingofthemeasuresforhotrolledstructuralsectionsexportedbyKoreabyoneexporterandcoppertubeexportedfromKorea.
ReviewsonPVCexportedfromsixcountriesandcertainhotdippedgalvanisedsteelpipeexportedfromThailandareunderway.
Measures continued
Measuresremaininplaceforfiveyearsunlessrevokedearlier.Customsinvitesapplicationsforacontinuanceofthemeasuresatleasttenmonthsbeforetheexpirydate.AustralianindustrymayapplytohaveCustomsconductaninquiryfortheMinisterforJusticeandCustomsonwhethermeasuresshouldbecontinuedbeyondthefive-yearperiod.
ContinuationinquiriesareonlyinitiatedonthereceiptofaproperlydocumentedapplicationfromAustralianindustry.
Fiveanti-dumpingmeasureswereduetoexpirein2004–05andCustomsinitiatedfournewcontinuationinquiries.
InthecasesofcertaingalvanisedsteelpipeexportedfromThailandandPVChomopolymerresinexportedfromHungaryandKorea,theMinisterdecidedtocontinuemeasures.
TheMinisterdecidednottocontinuetheanti-dumpingmeasuresapplyingtobulkbrandyexportedfromFrance.
InthecaseofPVCbottlecompoundexportedfromSingapore,themeasuresexpiredfollowingrejectionofanapplicationforcontinuationofthemeasures.
InthecaseofLLDPEfromIndonesia,althoughacontinuationinquirywasinitiated,anti-dumpingmeasureswerenotduetoexpireuntil2005–06.
Appeals
Appeals to the Trade Measures Review Officer AnaffectedpartymayappealcertaindecisionsmadebyCustomsandtheMinisterforJusticeandCustomstotheTradeMeasuresReviewOfficer(TMRO).In2004–05,thefollowingmatterswerereferredand/orfinalisedfor:
• coppertubeexportedfromKorea,theTMROaffirmedCustomsdecisiontorejectanapplicationfordutyassessment.CustomsdecisiontorejectafurtherapplicationfordutyforthegoodsiscurrentlybeforetheTMRO
• electricweldedcircularhollowsectionsexportedfromKorea,theTMROaffirmed
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Customsdecisiontoterminateaninvestigation
• galvanisedsteelpipeexportedfromThailand,theTMROaffirmedCustomsdecisiontorejectanapplicationfordutyassessment
• oliveoilexportedfromGreece,ItalyandSpain,theTMROaffirmedCustomsdecisiontoterminateaninvestigationintotheallegedsubsidisationofthosegoods
• hollowsteelsectionsexportedfromChina,Korea,MalaysiaandThailand,theTMROreversedCustomsdecisiontorejectananti-dumpingapplication.Accordingly,Customsinitiatedaninvestigation,whichitsubsequentlyterminated.AfurtherapplicationwasmadetotheTMROinresponsetothisdecision.Aresultisexpectedin2005–06
• certainhot-rolled-platesteelexportedfromChina,Indonesia,JapanandKorea,theTMROrecommendedthattheMinisteraffirmhisoriginaldecision(andtheMinisteragreed)
• amatterofcertainsiliconfromChinawasunderreviewat30June2005.
Applications to the Federal CourtOneoutstandingmatterat30June2004wasresolvedduringtheyear.InApril2003,AmcorPackaging(Australia)PtyLimited(Amcor)filedanapplicationforreviewoftheCEO’sdecisionaboutadutyassessmentontinplateexportedfromTaiwan.InDecember2003,AmcorfiledanamendedapplicationseekingtosetasidetheMinister’sdecisiononthedutyassessment.ThematterwasheardbytheCourton6December2004andsettledsubsequenttothehearing
ThreenewmatterswerereferredtotheCourtin2004–05:
• InOctober2004,LGElectronicsIncorporated(LGE)andLGElectronicsAustraliaPtyLtd(LGEAP)lodgedanapplicationseekingtosetasidethedecisionsoftheMinister,theCEOanddelegatesoftheCEO,fortheimpositionofinterimdumpingdutiesonexportsofwashingmachinesexportedfromtheRepublicofKorea(Korea).TheFederalCourtfoundinfavouroftheMinister,theCEOanddelegatesoftheCEO.LGEandLGEAP’sappealtotheFullCourtisexpectedtobeheardinAugust2005
• InSeptember2004,InglewoodOliveProcessorsLimited(Inglewood)askedtheCourttosetasidethedecisionsoftheCEOandtheTMROtoterminatetheinvestigationintotheallegedsubsidisationofcertainoliveoilexportedfromGreece,ItalyandSpain.TheCourtfoundinfavouroftheCEOandtheTMRO.InglewoodappealedtotheFullCourtinJanuary2005.Theappealwasheardon9May2005.TheFullCourthandeddownitsdecisionon31May2005infavouroftheCEOandtheTMRO
• InNovember2004,AustralianVinylsCorporationLimited(AVC)soughtareviewoftheCEO’sdecisiontorejectanapplicationforcontinuationofanti-dumpingmeasuresforPVCexportedtoAustraliafromHungaryandKorea.InDecember2004,Customsagreedtoconsentorderssettingasidethedecisionandremittingthematterforreconsideration.
Planning for the future
ToachieveCustomsobjectivesforthisOutput,Customsstaffwillcontinuetoimprovebusinesspracticesandpromoteconsistencyindecisionmaking.Customswillalsoparticipatein:
• theWTOreviewofanti-dumpingandsubsidiespractices
• anygovernmentinitiatedreviewsoftheanti-dumpingadministration.
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Section �EnablingOutputs
Photo:MarkBentley,withacrewmember,checkingthevisitorslogonboardavessel.
�� AustralianCustomsServiceAnnualReport2004–05
Corporate governance
Customscorporategovernancearrangementsseekto:
• maximiseorganisationalperformance
• complywiththelaw,regulations,publishedstandardsandcommunityexpectationsforprobity,accountabilityandtransparency
• supportstaffincarryingouttheirresponsibilities.
Governancearrangementsarebasedontheseprinciples:
• clearlinesofdecision-makingandauthoritythroughmanagementrules
• strongleadershipprovidedthroughtheExecutiveGroupandotherinternalcommittees
• strongrelationshipsandconsultationprocesseswithexternalstakeholders,includingconsultativebodiessuchastheCustomsNationalConsultativeCommitteeandtheNationalPassengerProcessingCommittee
• well-definedcorporateplanningandperformancereportingprocesses
• benchmarkedhumanresourcepoliciesandstrategies
• personalresponsibility,withAustralianPublicServicevaluesandcodeofconductclearlyidentifiedandreinforcedandagoodstaffawarenessofprobityissues
• disciplinedbudgetprocessesandfinancialmanagement
• riskmanagementpoliciesandapplication
• regularreportingtotheexecutive
• internalreviewsandlearningfrompastexperience
• aservicedeliverycharterandmonitoringofperformance
• sustainabilityofpoliciesandpractices.
Policiesondelegationsandbusinesscontinuitywereupdatedaswerethemanagementrules.AnewprocessonBusinessPracticeNetworkswasfinalisedtoprovideaforumforsharingexperience,promotingconsistencyandgoodpractice.
TheBusinessPracticeNetworksprocessisnowincludedintheManagementRules.
Organisational structure
Customsorganisationalarrangementswerealteredin2004–05.TheOfficeofBusinessSystems,thedivisiontaskedwiththeintroductionofCargoManagement.Reengineering(CMR),wasphasedoutfollowingtheimplementationoftheexportcomponentoftheIntegratedCargoSystem(ICS).
ResponsibilitiesforCMRdevelopmentandimplementationweresplitbetweentheCargoandTradeDivisionandtheInformationandOfficeTechnologyDivision.Customsisnoworganisedintosixnationaldivisions:
• CargoandTrade
• BorderIntelligenceandPassengers
• BorderComplianceandEnforcement
• Coastwatch
• InformationandOfficeTechnology
• FinancialServices.
Divisionsaresupportedbyfournon-alignedBranchesorunits:
• PlanningandInternational
• Staffing
• CustomsLegalUnit
• InternalAffairsUnit
CustomsoperatesamatrixmanagementsysteminwhichregionalstructuresdeliverservicesinStatesandTerritories.
Customsalsousescompetitivetenderingandcontractingarrangementstosupplementthecorebusinessskills.MajoroutsourcedfunctionsincludeITsupport,legalservices,logisticsarrangementsforcontainerexaminationfacilities,andinternalaudit.Customsalsocontractssomerecruitmentandselectionservices.MoreinformationcanbefoundintheCorporateResourceManagementsectiononpage122.
InternationalsupportisprovidedthroughpermanentrepresentationatoverseaspostsinBangkok,Beijing,Brussels,Jakarta,TokyoandWashington.ThelocationsofofficesinAustraliaisillustratedinFigure43.
Corporategovernance ��
Chief Executive OfficerLionelWoodward
Deputy Chief Executive OfficerJohnJeffery
Deputy Chief Executive OfficerJohnDrury
Senior Government SolicitorCustoms Legal UnitKirstenWhitehouse
ManagerInternal AffairsGeoffLanham
Risk Identification and Intelligence NationalManager PeterThomson Law Enforcement and Intelligence NationalManager JohnValastro Passengers NationalManager TimChapman
Compliance NationalManager JeffBuckpitt Enforcement Operations NatioanalManager BrianHurrell Research and Development NationalManager RoxanneKelley Investigations NationalManager RichardJaneczko
Coastwatch DeputyDirector-General TomMarshall
Information Management NationalManager PeterNaylor Information Technology NationalManager JamieMacgregor IT Applications NationalManager MichelleKinnane IT Market Testing NationalManager JoHein
National Director Border Intelligence and Passengers
GailBatman
National Director Cargo and Trade
PhilBurns
National Director Border Compliance and Enforcement
MarionGrant
Director-General CoastwatchRear-AdmiralRussCrane
Chief Information Officer Information
and Office TechnologyMurrayHarrison
Cargo NationalManager PhilomenaCarnell Trade NationalManager AndrewRice Trade Measures NationalManager SuePitman Cargo Systems NationalManager MatthewCorkhill
Chief Financial OfficerFinancial Services Division
JonBrocklehurst
National ManagerStaffing
AnnwynGodwin
National ManagerPlanning and InternationalChristineMarsden-Smedley
Governance G
roup
New South Wales Regional DirectorDavidCollins
Regional Managers Gayle Brown Jane Bailey Graeme Charlwood
Victoria Regional DirectorJaclyneFisher(A/g)
Regional Managers Graham Krisohos (A/g) Geoff Johannes
Queensland Regional DirectorJennyEutick
Western Australia Regional DirectorPaulO’Connor
South Australia Regional DirectorVirginiaLynch
Northern Territory Regional DirectorJohnMarks
Tasmania Regional DirectorJohnEldridge
Regions
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Darwin
Christmas Island
Thursday Island
TownsvilleCairns
Mackay
Bundaberg
Coffs Harbour
Lord Howe Island
Newcastle
SydneyWollongong
Eden
Melbourne
Launceston
Hobart
Burnie
Adelaide
Port Lincoln
EsperenceAlbury
Bunbury
Fremantle
Port HeadlandDampier
Broome
Brisbane
Coolangatta
Gladstone
Geraldton
Carnarvon
Gove
Weipa
Portland
Port Pine
Canberra
Richmond
Figure ��: Locations of Customs offices in Australia
Senior executive and their responsibilities
Figure ��: Organisational chart (June �00�)
100 AustralianCustomsServiceAnnualReport2004–05
Senior management committees and their roles
Committeesplayanimportantroleinconsultationandinformeddecisionmaking.ThekeymanagementcommitteesinCustomsaretheExecutiveGroup,theAuditCommitteeandtheSeniorExecutiveServiceConference.OtherkeycommitteesinCustomsinclude:
• BusinessContinuityPlanningSteeringCommittee
• CustomsSecurityCommittee
• FlexibleDeliverySteeringCommittee(training)
• InformationManagementProjectCommittee
• InformationManagementStrategyCommittee
• IntegratedCargoSteeringCommittee
• NationalPrioritiesCommittee.
Regionalcommitteesareestablishedwhennecessary.
Thekeymethodsofinternalcommunicationwithstaffincludemanagementbriefs,‘allstaff’messagescirculatedbyemail,weeklysectionmeetings,theCustomsintranetforcorporateinformationsuchaslegislation,policies,procedures,guidelinesandadvices,aweeklybulletinandastaffnewspaper,Customs News.
ExecutiveGroup
TheExecutiveGroupisacorporateforumthatmeetsweeklytodiscussmajorpolicyandmanagementissues.ThisgroupcomprisestheCEO,DeputyCEOs,theChiefInformationOfficer,theChiefFinancialOfficer,NationalDirectors,RegionalDirectorsNewSouthWalesandVictoriaandNationalManagerPlanningandInternational.
OnceamonththemeetingisattendedbyallSeniorExecutiveServiceandRegionalDirectors,thelatterattendingbyvideoconferencelink.
AuditCommittee
TheAuditCommitteeadvisestheCEOonaudit,evaluation,fraudandrisk-managementissues.ThecommitteecomprisestheDeputyCEOswhochairtheCommitteeonrotation,twoNationalDirectors,aRegionalDirectorwiththeChiefFinancialOfficerasanobserver,NationalManagerPlanningandInternationalandan
externalmemberoncontract.PartnersofCustomsauditprocessalsoattendwiththeAustralianNationalAuditOffice(ANAO).
InFebruary2005,theANAOpublishedaBetterPracticeGuideonPublic Sector Audit Committees.ThisguidewaspresentedtotheAuditCommittee,withasummaryofrelevantpoints.TheAuditCommitteeexaminedthesedocumentsandincorporatedchanges.
SeniorExecutiveService/RegionalDirectorsConference(SES/RDs)
CustomsSeniorExecutivesfromallbranchesandregionsmeetface-to-facebiannuallytodiscussstrategicmanagementissuesandfuturedirections.SES/RDsConferenceswereheldinNovember2004andMay2005.Itemsdiscussedincludedthemanagementrules,strengtheningtheplanningandperformanceframework,formationofarecruitmenttaskforcetoexamineresourceissuesandstandingitemsofbudget,humanresourcesandinformationtechnology.
External consultative mechanisms
CustomsNationalConsultativeCommittee(CNCC)
TheCNCCmeetsquarterly.ItprovidesaforumforthediscussionofCustomspolicyandproceduralissuesrelevanttotheinternationaltradingcommunity,businessandCustomsspecialists.MembershipoftheCommitteeisdrawnfromCustomsagentassociations,theCustomsBrokersandFowardersCouncilofAustralia,theAustralianFederationofInternationalFowarders,theLawCouncil,Customsconsultantsandimporterrepresentatives.DiscussionincludedCMR,ContainerExaminationFacilitiesandSupplyChainSecurity.MinutesfromCNCCmeetingsarepostedontheCustomsInternetsite.
Customs,Immigration,QuarantineandTransportCommittee(CIQT)
TheCIQTCommitteeensurescoordinatedprogressofbordermanagementpolicyandrelatedissuesacrossthesekeyagencies.MembershipcomprisesagencyheadsfromCustoms,theDepartmentofImmigrationandMulticulturalandIndigenousAffairs,theDepartmentofAgriculture,FisheriesandForestry
Australia,theDepartmentofTransportandRegionalServicesandaDeputyfromeachdepartmentoragency.
HeadsofCommonwealthOperationalLawEnforcementAgencies(HOCOLEA)
HOCOLEAisthebroadconsultativemechanismforCommonwealthlawenforcementpolicy.HOCOLEAisaforumforagencyheadsfrom11Commonwealthlawenforcementandregulatorydepartmentsandagencies.Customsprovidessecretariatsupport.
CustomsparticipatesinseveralHOCOLEAworkinggroups,includingtheWorkingGrouponCorruptionwhichischairedbyCustoms.ThisWorkingGroupwasestablishedinlate2004toenhanceanti-corruptionprograms.
WorkingGroupmembersshareinformationontrainingregimes,andarecurrentlyexploringtheproductionofabetterpracticeguide.
AustralianCrimeCommissionBoard
TheCEOofCustomscontributestothedevelopmentofnationalcriminalintelligenceprioritiesandthestrategicdirectionoftheAustralianCrimeCommissionthroughmembershipoftheAustralianCrimeCommissionBoard.
TheBoardmembershipenablesCustomsstrategicissuestobeincorporatedintothebroaderlawenforcementagenda.Inreturn,CustomsisabletocontributeresourcesandideastoenabletheobjectivemanagementoftheAustralianCrimeCommission’sagenda.
Corporategovernance 101
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Julie Drew (Australian Federal Police), Michael Monaghan (Australian Taxation Office), John Drury (Customs) and Alan Turton
(Australian Securities and Investment Commission) at the signing of the Memorandum of Understanding for the HOCOLEA
Capability Project
10� AustralianCustomsServiceAnnualReport2004–05
Enhancing coordination, communication and cooperation with key international stakeholders
Customs,byitsnature,hasalargeinternationalagenda.BilateralintelligencecooperationwithothercustomsadministrationsismanagedlargelythroughMemorandaofUnderstandingortheWorldCustomsOrganization(WCO)RegionalprocessesandtheLiaisonOfficehostedbyChina.
Customsalsoexchangesregionalintelligence,operationalinformationandotherorganisationalinformation.TwonewMemorandaweresigned,onewithPapuaNewGuineaandtheotherwithFiji.TheAsia-PacificregionisanimportantoneforCustomsandmostcapacitybuildingeffortisdirectedtotheregion.SuchcooperationassistsCustomsadministrationstoimprovesecurityandfacilitation.
Notableachievementsininternationalcooperationin2004–05include:
• establishmentofnewpostsinBeijingandJakarta
• formalbilateraltalkswiththecustomsadministrationsofHongKong,China(November2004),PapuaNewGuinea(April2005),Malaysia(May2005)andIndonesia(May2005)
• CustomsreformandmodernisationcapacitybuildingactivitiesinPapuaNewGuinea,IndonesiaandSolomonIslands
• hostingseveralseniordelegationsincludingSouthAfrica(October2004),China(AugustandDecember2004),Fiji(February2005)NewZealand(February2005),UnitedArabEmirates(May2005)andZambia(May2005).
Customsisactiveinanumberofinternationalforums,includingtheAsiaPacificEconomicCooperation(APEC),theWCO,theOceaniaCustomsOrganisation(OCO)andASEAN.WiththeparticipationoftheCEOforthefirsttimeattheCustomsHeadsmeeting,CustomscommencedcloserdialoguewithASEAN.
AsamemberoftheWCOPolicyCommissionfor2004–05,Australiacontributedtodebateonstrategicdirectionsforinternationalcustomspracticesincludingthesupplychainsecurityagenda,tradefacilitation,improvedgovernanceandcapacitybuilding.
CustomsparticipatedactivelyintheAPECSub-committeeonCustomsProceduresin2004–05includingchairingtheTradeFacilitationWorkingGroupandsupportingtheSub-committee’sactivitytopromoteintegritymeasuresinmemberadministrations.
InSeptember2004,AustraliaaschairoftheWCOdatamodelworkinggroup,encouragedtheSub-CommitteeonCustomsProcedurestoacceptdataharmonisationandmakefurtherprogresstowardsasinglewindowofe-commerce.
Washington post staff, left to right: Lee-Ann Ticktin,
Dean Hogarth and Teresa Conolan in Washington.
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Customs teams – working for Australia in Beijing and Jakarta
Customs has opened liaison offices in Beijing and Jakarta, reflecting the priority that the Australian Government places on strengthening the relationships with these neighbours.
Bothoffices,openedthisyearbytheMinisterforJusticeandCustoms,SenatortheHonChrisEllison,enableCustomstoengagedirectlywithcounterpartsonimportantareasofmutualinterest.
WithChinabeingthethird-largesttradingpartnerofAustralia,establishmentoftheBeijingofficeisalandmarkstepthatrecognisestheimportanceofthisrelationshiptogovernment,tradingenterprisesandpeopleofbothcountries.ChinaandAustraliaarefinalisingajointstudyonthefeasibilityofabilateralfreetradeagreement.
TheCustomsteaminBeijingisexpectedtoworkonissuessuchastradefacilitation,traderemediesmatters,andinvestigationsintoallegedbreachesofrespectiveCustomslegislation.Inaddition,bothadministrationshavereachedanagreementfor2005–06toprovidetechnicalcooperationondrugdetectordogs.
Corporategovernance 10�
EstablishmentoftheCustomsofficeinJakartaisalandmarkstepthatfollowsinthespiritoftheJointDeclarationonComprehensivePartnershipbetweenAustraliaandIndonesiaannouncedbythePrimeMinisterJohnHowardandIndonesianPresidentDrSusiloBambangYudhoyonoon4April2005.
TheJakartapostwillprimarilyaddressbordersecurityandtransnationalcrimeissuesthataffectbothcountries.Theseissuesincludeillicitdrugs,peoplesmugglingandterrorism,whereriskstoAustraliamighthaveoriginatedinorpassedthroughIndonesia.BothadministrationsareworkingtogethertoimprovesecurityatkeyIndonesianportsincompliancewithInternationalMaritimeOrganisationsecuritystandards.
ThenewofficesaddtoexistingliaisonofficesinBangkok,Brussels,TokyoandWashington.
Mr Zhang Qing Hai, Deputy Director General,
Anti Smuggling Bureau, General Administration of
China Customs, and Mr Tom Anderson, Australian Customs
Representative China, are pictured at the signing of the
Co-operation Arrangement between the General
Administration of China Customs and the Australian
Customs Service on drug detector dogs for 2005–06.
Senior Australian Customs Representitive Jakarta with
members of the ship search training team
10� AustralianCustomsServiceAnnualReport2004–05
OtherkeyAPECinitiativesCustomssupportedwere:
• theFrameworkofStandardsforsecuringthesupplychainandfacilitatingtradeasanewagendaitem
• furthertimereleasesurveysfortradeprocedures.
TheOCOrevieweditscharterthroughanAustralia/NewZealand/OCOsecretariatworkinggroup.TheOCOworkprogramexpandedconsiderablyandanewsetofgovernancearrangementswereagreedattheGuamAnnualConferenceinMarch2005.Thefuturelocationofthesecretariatwasdiscussedandtheperiodforfindinganewlocationwasagreed.Australiawillbethefacilitatorforacapacitybuildingworkinggroup.
AsignificantprogramofcapacitybuildingactivitywasprogressedinPapuaNewGuinea,IndonesiaandSolomonIslands.AnothercapacitybuildingprogramwillcommenceinAugust2005inTonga.
AwiderangingandcomprehensivediagnosticofPapuaNewGuineaCustomswasundertaken.AworkprogramhasbeendevisedandfourofficersassignedtopositionsinPapuaNewGuineaCustomstodeliverthereformandmodernisationprogram.FundinghasbeenprovidedundertheAusAIDEnhancedCooperationPackage.
ThefirstplacementscoverpassengerprocessingatJacksonsAirfield,intelligencedevelopment,cargopolicyandpractiqueandborderenforcement.
CooperationbetweenofficialsfromCustoms,theDepartmentofImmigrationandMulticulturalandIndigenousAffairsandtheDepartmentofTransportandRegionalServicesworkinginPapuaNewGuineaisimprovingbordersecurity,particularlyatPapuaNewGuinea’smaininternationalairportandatseaports.
ApackageofsupportisbeingprovidedtoIndonesianCustomsundertheSpecialTravelSecurityFundaimedatenhancingbordersecurity.Projectplanningwasundertakenandahighlysuccessfulshipsearchtrainingprogram
organised.Intelligenceanalysttrainingandtechnologicalsupportinitiativesaretobeprogressedin2005–06.
TheSolomonIslandsDivisionofCustomsandExcisereceivedtwoCustomsofficerstoreviewanddeliveraprogramofsupportincargomanagement.AusAIDprovidedfundingunderaPacificGovernanceprogram.
Indeliveringthesecapacitybuildingprograms,CustomsworkscloselywiththeDepartmentofForeignAffairsandTrade,theAustralianAgencyforInternationalDevelopment(AusAID)andotherparticipatingagencies.
Customshostedthe16thCustomsInternationalExecutiveManagementProgramduringSeptemberandOctober2004.Theprogramdevelopsmanagementskillsandpromotesinternationalcustomscooperation.ItalsoprovidesagreatopportunityfornetworkingwithintheAsia-Pacificregion.NineteenparticipantsfromdifferentcustomsadministrationsattendedforsixweeksofintensiveCustomsmanagementtraining.Manyalumnihavegoneontoveryseniorrolesintheirorganisations.
Corporate planning
ThePlanningandPerformanceFrameworkwasstrengthenedwiththeintroductionofmid-cycleandend-of-cyclereportingagainstNationalBusinessPlansandWorkAreaPlans.ThesereportsindicatelevelsofworkareacomplianceagainstcorporateandCommonwealthpoliciesandguidelines.
CorporatePrioritiesfor2005–06weredevelopedafteranassessmentofstrategicrisks.Workareasimplementrelevantprioritiesthroughtheirbusinessplansandworkareaplans.
CustomsdevelopedarevisedOutcomeandOutputsstructureforthe2005–06PortfolioBudgetStatement.TheOutputsreflecttheorganisationalstructure,providebettertransparencyfortheallocationoffinancialresourcesandsupportrevisedperformancemeasures.DevelopmentofanewCorporatePlanwasheldoverpendingfinalisationoftheOutcomeandOutputsstructure.
Corporategovernance 10�
AsaresultofrecommendationsbytheAustralianNationalAuditOffice,CustomshasagreedtoreflectservicesprovidedtoandfromCommonwealthandStateagencies.RecognitionofkeyagencieshasbeenidentifiedinthisreportunderOutcomeperformancereporting.
Risk management
Customsintegratesriskmanagementintobusinessplanningandprojectimplementationto:
• improvedecisionmaking
• minimiseimpactofriskeventsonoperationalactivities
• directresourcesintoareasofgreatestrisk.
Forbusinessplanning,Customsdevelopedastrategicriskassessmentwhichunderpinsdevelopmentofannualcorporatepriorities.
RiskmanagementpolicyisdescribedintheChiefExecutiveInstruction,acorporatepolicyandguidancefromtherevisedAustralianStandardforRiskManagementAS4360:2004.
Customswasassessedatfourstarsoutoffiveinanannualrisk-managementbenchmarkingsurveyconductedbyComCover.Oneareaofweaknesswastrainingandawareness.Aprojecthasbeensetuptomakeimprovementsinthisareainthecomingyear.
Internalaudit
CustomsInternalAuditUnitfacilitatesastrongcontrolenvironmentthroughreviewsofhigh-riskareas,aswellasregularauditsofCustomsfunctions.InternalAuditreportsprovideassurancetoseniormanagementonthequalityofinternalcontrolsandprocedures.Italsohelpstoimprovebusinesspracticesbyprovidingrecommendationstotheareasaudited.
Theauditplanisdevelopedandupdatedannually.Itisarisk-basedprogram,inlinewitheachbranchesbusinessplan.Thisistoensurethatthebranchescoreprioritiesandrisksareaddressed,andthesearethenmappedagainstcorporateprioritiesandstrategicrisks.TheplanisendorsedannuallybytheExecutiveandtheAuditCommittee.
InternalAuditreviewsincludedCargoManagementReengineeringfinancialmanagement,andmanagementofinformationandinformationtechnology.
Atotalof26internalauditsandreviewswerescheduledandcompletedduring2004–05,onemorethanin2003–04.Eighty-fivepercentofauditswereacombinationofperformance,compliance,financialandITauditswiththeremaining15percentbeingsystem-under-developmentreviews.
Business continuity
Anewframeworkwasdevelopedcoveringprinciples,roles,responsibilitiesandtestingrequirementsforinternalbusinessowners.ItallowsCustomstoassignapriorityordertotherecoveryofcriticalbusinessfunctionsinemergencyevents.TheframeworkrecognisesthatcontinuityofCustomsactivitiesareessentialfortheeconomicandsocialwell-beingofAustralia.
Certification of fraud measures
Customsfraudriskassessmentandfraudcontrolplanwasupdatedon14June2005andCustomscomplieswiththeCommonwealth Fraud Control Guidelines.Thenewfraudcontrolplanencompassesasummaryofrisksidentifiedinfraudriskassessmentanddetailsofstrategiestoaddressrisk.Appropriatefraudprevention,detection,investigationandreportingproceduresandprocessesareinplaceanddatacollectedandreportedcomplieswith the Commonwealth Fraud Control Guidelines.
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10� AustralianCustomsServiceAnnualReport2004–05
Management of human resources
FinancialpressurescreatedachallengingyearforCustomsstaffing.
IncreasedgovernmentcommitmentstoborderprotectionproducedsignificantoperationalpressuresasCustomssoughttorespondmorequicklytochangedworkloaddemands.
AdditionalstaffwererequiredforactivitiesincludingSouthernOceanMaritimePatrolandResponse,ContainerExaminationFacilities,firstportboardingofvesselsenteringAustralia,NationalMarineUnitpatrolsandinternationalcapacitybuilding.
Customsredeployedstaff,recruitedadditionalstaff,andconsideredmoreflexibleemploymenttomeetoperationalrequirements.Thedelayscausedbyastructuredrecruitmentprocess,exhaustivesecurityclearanceprocessesandtherequirementtofullytrainstaffbeforeoperationaldeploymentputpressureonoperationalareas.
Taskforcesonhumanresourcedevelopmentandrecruitmentwereestablishedtoconsidervariationsintrainingandrecruitmentstrategiestodeliveraflexibleworkforcethatcanrespondquicklytochangedworkloaddemandsandmeetgovernmentexpectations.Immediateoutcomesare:
• thetrialemploymentof40officersonanirregularandintermittentbasis,
• aprojecttoexaminefitnessstandardsrequiredforachangingworkenvironment
• developmentofnationalonlineentryandexitsurveys.
AnOrganisationalHealthProjectwasestablishedtolookatcreatingandsustainingahigh-performingworkforce,andconsiderthemanagementpracticesthatsupportandpromoteahealthyenvironment.Itwillalsofocusonearlyinterventionstrategiesandimprovedrehabilitationandreturn-to-workstrategies.
Workforce planning
Keypolicies,guidelinesandtoolkitsweredevelopedorrevisedtopromoteworkforcepolicies.Theseincludedassignmentandcareermanagementpolicy,managingunderperformance,managingchange,leadingteams,induction,attendancemanagement,conditionsofengagementandprobation.
CustomsreviewedtheNationalStrategicWorkforcePlanandtheoutcomewasthathumanresourcestrategiesweremorecloselyalignedwiththeCustomscorporatepriorities.Theplanprovidesanalysisofworkforceprofiledetailingdemographics,trendsandprogressagainststrategies.
Customscontinuedtodevelopstrategiestoreduceunscheduledabsencesfromtheworkplace,includingprovisioninthenewCertifiedAgreementofabonusof$150toallstaffifabsenteeismisreducedbyoneormoredaysoveracomparativeyear.
Staff turnover and retention
TherateofongoingstaffseparatingfromCustomsaveraged5.86percentin2002–03,6.36percentin2003–04and6.62percentin2004–05.Whileseparationrateshaveincreased,theyarewithinacceptablebenchmarklimits.
Analysisrevealedsignificantnumbersofseparationsatspecificlevelsinspecificregions,especiallytheAustralianCapitalTerritory,NewSouthWalesandtheNorthernTerritory.Theseincludedhigherthannormalage-basedretirements(CustomsLevel4),andresignations(CustomsLevel1).
Staffing profile
Customsplannedforanestimatedaveragestaffinglevel3of4630stafftoenablethedeliveryofCustomsOutcome.Theaveragestaffinglevelin2004–05was4686.
Customstotalworkforce4at30June2005was5055.Thiscomparesto4806staffat30June2004.
3ASListheaverageoftheendofmonthFull-timeEquivalent(FTE)staffaspaidbytheorganisation.
4Actualheadcount.
AreaswhereadditionalstaffwererequiredincludedSouthernOceanMaritimePatrolandResponse,ContainerExaminationFacilities(CEF)andanadditional19stafftoundertakefirstportboardingofvesselsinAustralia.RecruitmentforCEFoperationsandfirstportboardingwasintegratedwiththeCustomsTraineerecruitmentprogram.
Customsrecruited636staff,including328Customstrainees,toaddressstaffshortagesbroughtaboutbytheredeploymentofstaff.ThereweredifficultiesinattractingsufficientsuitableapplicantsforparttimepositionsinNewSouthWales.Thisaddedtothepressuresbeingexperiencedattheairportduetoincreasedpassengernumbers.
Customsrecruitedeightgraduatetraineesin2004and12graduatetraineesin2005.
At30June2005,CustomshadstaffinallStatesandTerritoriesofAustraliaasshowninFigure45.
CustomsstaffalsoholdpostsinBangkok(1),Beijing(1),Brussels(1),Jakarta(1),Tokyo(1),andWashington(2).SomestaffaretemporarilyassignedtocapacitybuildingprojectsinPapuaNewGuinea(4)andSolomonIslands(1).
Figure ��: Staff employment category by location at �0 June �00�*
ACT# NSW VIC QLD SA WA TAS NT Total
Full-Time
Ongoingemployee 1025 1138 760 630 153 434 31 109 � ��0
Non-ongoing 102 8 4 8 - 2 - - 1��
Full-time total 1 1�� 1 1�� ��� ��� 1�� ��� �1 10� � �0�
Part-Time
Ongoingemployee 43 233 153 106 26 58 1 5 ���
Non-ongoing 12 6 - 3 - 2 - - ��
Part Time total �� ��� 1�� 10� �� �0 1 � ���
Casual
Non-ongoing 1 1 - - - - 1 - �
Total 1 1�� 1 ��� �1� ��� 1�� ��� �� 11� � 0��
Males 750 832 564 446 97 304 20 57 � 0�0
Females 433 554 353 301 82 192 13 57 1 ���
Total 1 1�� 1 ��� �1� ��� 1�� ��� �� 11� � 0��
* IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystem).Financialstatementsreportonstaffnumbersbyfull-timeequivalent(FTE).
# ACTfiguresincludeNationalMarineUnit.
Managementofhumanresources 10�
Customs officer Mary Griess at Sydney airport.
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10� AustralianCustomsServiceAnnualReport2004–05
Figure ��: Staff numbers by classification at �0 June �00�*
*IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystem).Financialstatementsreportonstaffnumbersbyfull-timeequivalent(FTE).
^IndigenousCadetsarefundedbyAustralianCapitalTerritory(CentralOffice)forthetermoftheircadetshipandlocatedinregions,oneeachinAustralianCapitalTerritory,WesternAustraliaandNewSouthWalesandthreeinQueensland.
+ SeniorExecutiveServiceincludesongoingSESemployedunderthePublic Service Act 1999,includingthreenon-SESstaffonhigherduties.ItdoesnotincludetheChiefExecutiveOfficerwhoisthestatutoryofficeholder.
Figure ��: Staff classification and location at �0 June �00�*
ACT# NSW VIC QLD SA WA TAS NT Total
IndigenousCadet^ 1 1 - 3 - 1 - - �
Graduate 12 - - - - - - - 1�
Trainee - 46 39 21 22 14 - 16 1��
CustomsLevel1 237 717 446 449 68 267 13 46 � ���
CustomsLevel2 230 376 248 170 51 122 13 30 1 ��0
CustomsLevel3 358 181 137 77 31 71 6 15 ���
CustomsLevel4 221 48 33 20 6 18 - 6 ���
CustomsLevel5 96 13 11 6 1 2 1 1 1�1
SeniorExecutiveService+ 28 4 3 1 - 1 - - ��
Total 1 1�� 1 ��� �1� ��� 1�� ��� �� 11� � 0��
*IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystems).Financialstatementsreportonstaffnumbersbyfull-timeequivalent(FTE).
# ACTfiguresincludeNationalMarineUnit.
^IndigenousCadetsarefundedbyAustralianCapitalTerritory(CentralOffice)forthetermoftheircadetshipandlocatedinregions,oneeachinAustralianCapitalTerritory,WesternAustraliaandNewSouthWalesandthreeinQueensland.
+ SeniorExecutiveServiceincludesongoingSESemployedunderthePublic Service Act 1999,includingthreenon-SESstaffonhigherduties.ItdoesnotincludetheChiefExecutiveOfficerwhoisthestatutoryofficeholder.
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Customs teams – Customs in Tasmania: ‘small but significant’
Customs staff in Tasmania perform a vital role in the national Customs effort.
BasedinBurnie,LauncestonandHobart,thestaffundertakethesamecoreborderprotectionrolesasmainlandstaff.Theseincludeoverseasvesselclearance,crewmusters,vesselsearches,wharfpatrols,intelligence,operations,audit,cargomovementandcorporateresponsibilities.
CustomsworkscloselywithotherCommonwealthagenciesincludingDIMIA,AQISandDOTARStoundertakeavarietyoftasks.ItalsoworkscloselywiththeTasmaniaPolicewhereastrongrelationshiphasdevelopedtoshareresourceswhenrequired,suchasdetectordogs,ionscan,x-rayandintelligence.
Managementofhumanresources 10�
ButlikeeveryCustomsregion,Tasmaniahasanumberoftasksinwhichtheyspecialise.Stafffromsixworkareascombinetofacilitatethemovementofupto3000passengersand1200crewfromarrivingcruiseshipsinthepeaksummerperiod.Thisfacilitationisundertakeninafour-hourperiodinmakeshiftfacilitiesanddemonstratestheversatilityoftheseofficers.Increasedworkloadisalsocarriedoutinthefacilitationofexpeditioners,crewandcargofortheAustralianAntarcticProgram.
TheTasmanianteampridesitselfonproducinghighqualityoutputsthroughexpertisebuiltondiversityandmultiskilling.ThisexpertisewasindicatedbytheselectionoftwoTasmanianstafflastyearforplacementinPapuaNewGuineaaspartoftheAustralianGovernment’sEnhancedCooperationProgram.
Mark-Alan Lim (left) and Paul Griggs (right) in Customs in Tasmania, conducting an inspection of a consignment of
unaccompanied personal effects.
110 AustralianCustomsServiceAnnualReport2004–05
Workplace diversity
CustomsimplementedanewWorkplaceDiversityPolicyandWorkplaceHarassmentPolicybypromotingawarenessofthepolicies,rolesandresponsibilitiesofallemployees.
TheNationalWorkplaceDiversityCoordinatorsandRegionalEquityContactOfficersnetworkswererevitalised.Culturalawarenesssessionswereconductedandcalendarofeventsofsignificancewereproduced.SpecificeventssuchastheInternationalDayofPeoplewithaDisabilityandNationalAboriginalandIslanderDayObservanceCommittee(NAIDOC)activitieswereincludedinthecalendar.Customsimplementedanationalworkplaceharassmentreportingprocesssothatallemployeescanreportincidentsofharassmentinasafeandconfidentialmannerandthesecanbereviewedandanalysedcentrally.
CustomsappointedthreeIndigenousentry-leveltraineesinOctober2004.Thesetraineesaresupportedthroughanaccreditedtrainingqualification.CustomsassistedtencadetsintheNationalIndigenousCadetshipProject,twoofwhomwereengagedoncompletionoftheirstudies.
Figure48showstherepresentationofequityanddiversitygroupsinCustoms.Therewasaslightriseintheproportionoffemaleemployeesbutslightproportionaldecreasesinallothergroupscomparedwithstaffingfiguresasat30June2004.Thesefiguresrelyonvoluntaryself-identificationandcompliancelevelsvaryfromyeartoyear.
Training and development
Customsdevelopednewinitiativesfortraininganddevelopmenttomeetchangingworkloads.
TheAustralianNationalTrainingAuthorityendorsedapublicsectortrainingpackageonborderprotectiondevelopedbyCustoms.Customsreceivedaccreditationtoissuetwonewqualifications,aCertificateIIIandCertificateIVinGovernment(BorderProtection).
ArangeofcurrentlearninganddevelopmentpoliciesandprogramswasintegratedandlaunchedasCustomsFrameworkforLearningandDevelopment2005–07.
Figure ��: Representation of equity and diversity groups by staff classification at �0 June �00�*
Female Born Overseas~ People with disabilities Indigenous
Number % Number % Number % Number %
IndigenousCadet^ 6 100.0 - - - - 6 100.0
CustomsGraduateTrainee 9 75.0 3 25.0 - - - -
CustomsTrainee 67 42.4 27 17.1 - - 1 0.6
CustomsLevel1 989 44.2 326 14.5 41 1.8 48 2.1
CustomsLevel2 481 38.8 140 11.3 34 2.7 16 1.3
CustomsLevel3 284 32.4 93 10.6 23 2.6 5 0.6
CustomsLevel4 102 29.0 43 12.2 5 1.4 1 0.3
CustomsLevel5 32 24.4 18 13.7 3 2.3 - -
SeniorExecutiveService 15 40.5 5 13.5 3 8.1 - -
Total 1��� ��.� ��� 1�.0 10� �.� �� 1.�
*IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors,consultingorActingOfficersofCustoms.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystem).
~NumberofstaffbornoutsideAustralia.
^IndigenousCadetsarefundedbyAustralianCapitalTerritory(CentralOffice)forthetermoftheircadetshipandlocatedinregions,oneeachinAustralianCapitalTerritory,WesternAustraliaandNewSouthWalesandthreeinQueensland.
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Athree-stepassessmentanddevelopmentmethodologywasdevelopedtoaligntrainingcoursesagainstcompetencies.
Anationalcompetencydatabaseisbeingdevelopedtorecordindividualcompetencies,andsupportcareerandsuccessionmanagementwithinCustoms.
Certified Agreement
CustomsnegotiatedanewCertifiedAgreementforpayandconditionsfor2004–2007.Thepayincreasesandotherconditionenhancementswillbefundedfromproductivitygains.
Followinglengthynegotiationswithstaff,theAustralianIndustrialRelationsCommissioncertifiedtheagreementon23December2004.DuringthenegotiationstherewasanationalstrikecalledbytheCommunityandPublicSectorUnion.Around25percentofstaffparticipatedinthestrike,buteffectivecontingencyplanningbyoperationalareasresultedinnosignificantadverseimpactonoperations.
Customs teams – an individual’s support for a team initiative in diversity and cross-cultural awareness
The Customs workforce comprises staff from diverse backgrounds who interact with clients from equally varied cultural backgrounds to regulate international trade and travel. Customs supports training in diversity, cultural awareness and cross-cultural communication for its staff.
AfterattendingacounterterrorismtrainingsessiongiventostaffatSydneyInternationalAirport,MsAdas,suggestedthatfellowofficerswouldbenefitfromanunderstandingofthegeneraltenetsofIslam.GivenherknowledgeofIslam,MsAdasdevelopedanddeliveredanIslamicinformationsessiontosupplementthecounterterrorismtrainingtoofficersinSydneyandBrisbane.Thetrainingreceivedveryfavourablefeedback.
Shealsohelpedassessandreviseapassengerassessmenttrainingmoduleindiversityandcross-culturalcommunicationfornationalrelease.ThisworkoccurredinconjunctionwithtrainersinSydney,theNSWWorkplaceDiversityCoordinatorandtheNationalTrainingCoordinator.
MsAdasiscurrentlyworkingintheHumanResourcesStaffingteam,havingpreviouslyworkedinPassengersEnforcementatSydneyInternationalAirport.Sherecentlycompletedamasterofartsinpeaceandconflictstudies.Trainingindiversityandculturalawarenessenablesofficerstocommunicateeffectively,tochallengeperceptionsandtomakeinformedandsoundriskassessments,whichultimatelyreflectswellonCustomsasaprofessionalorganisation.
Managementofhumanresources 111
Customs officer Wissam Adas.
11� AustralianCustomsServiceAnnualReport2004–05
Australian Workplace Agreements
SeniorExecutiveService
AllongoingSeniorExecutiveServiceemployeeshaveremunerationarrangementsagreedthroughindividualAustralianWorkplaceAgreements(AWAs).SalariesaredeterminedbytheCEOandarebroadlywithinthreebandsrepresentingthethreeclassificationlevels.
PerformancepayisavailabletoSeniorExecutiveServicestaffandmaytaketheformofanannualbonus,bonuspaymentsduringthecycletorecogniseoutstandingcontributiontoparticularworkoutcomes,ormovementtoahighersalary.Theperformancepaygenerallyaccordswithcertifiedagreementemployeeperformanceassessmentandfeedbackoutcomes.
Duringthepastyear,threequartersofCustomsSeniorExecutivestaffreceivedperformancepay.TheaggregateamountofperformancepayforSeniorExecutiveswas$208000.
Non-SeniorExecutiveService
At30June2005therewere131non-SeniorExecutivestaffonAWAs.ThemajorityofthesewereCustomsDirectors(CustomsLevel5).TheconditionsofemploymentforstaffwhoarenotonindividualagreementsweregovernedbytheprovisionsoftherelevantAustralianCustomsServiceCertifiedAgreement.
Performance management
CustomsimplementedaPerformanceManagementFrameworkthatidentifieshowindividualcomponentsofperformancemanagementinteractacrossaperformancespectrumrangingfrompositivereinforcementthroughrewardsandrecognitiontothemorenegativeaspectsofmanagingunderperformance.Akeytoolforassessingtheappropriateinterventionisthroughtheperformanceassessmentandfeedback(PAF)approach.
PAFprovidesastructuredapproachtodiscussing,recordingandmeasuring
Figure �0: Senior Executive Service (SES) classification and gender at �0 June �00�*
SES 1 SES � SES � Total $�� 000 – $1�0 �00 $11� �00 – $1�� �00 $1�� 100 – $1�� �00
Females 11 2 0 1�
Males 14 4 2 �0
Total �� � � ��
*Theamountshownforeachbandrepresentssalarylevels.TheSESstaffwhoreceivedorwereduetoreceivetotalremunerationof$100000ormore(includingsuperannuationandothernon-salarybenefits)arelistedunderNote15ofthefinancialstatements,ExecutiveRemuneration.StaffshownaboverepresentsubstantiveongoingSESat30June2005.ItdoesnotincludestaffnotemployedbyCustomsornon-ongoingstaff.ThefiguresalsoexcludetheCEO,whoisastatutoryofficeholder.
Figure ��: Staff classification, Australian Public Service equivalent level and salary range at �0 June �00�*
Customs Classification APS Level Salary Range ($)
IndigenousCadet APSLevel1 19091–35872
CustomsTrainee APSLevel1 19091–35872
CustomsGraduateTrainee APSLevel2 35169–39930
CustomsLevel1CustomsOfficer APSLevel2–3 29807–46002
CustomsLevel2SeniorCustomsOfficer APSLevel4–5 46002–54045
CustomsLevel3CustomsSupervisor APSLevel5–6 54045–64525
CustomsLevel4CustomsManager EL1 69794–80789
CustomsLevel5CustomsDirector EL2 80789–97310
*SalaryrangeincludesminimumandmaximumsalariesavailableundertheCustomsCertifiedAgreement2004–2007;AustralianWorkplaceAgreement(AWA)salariesarenotincluded.
Managementofhumanresources 11�
expectations.AlinkbetweenindividualperformanceandbusinessOutputsispartoftheprocessaswellasindividualdevelopmentneeds.Thisensuresthatstaffhavetheskillstheyrequiretodotheirjob.
The2004–05PAFcyclewasthefirstcompleteperformancecycleinwhichallagreementswereestablishedandmanagedonline.
Arangeofcommunicationandsupportmaterialsweredevelopedtofacilitatetheonlineprocess,includingquickreferenceguides,tutorials,frequentlyaskedquestionsandahelpdesk.Theonlinesystemhasgreatlyincreasedstaffcompliance.
Performancepay
Performanceismanagedthroughtheperformanceassessmentandfeedbackprocess.Ratingsgiventhroughthisprocesscanresultinnosalaryincreaseatallorincreasesofone,threeorfivepercentuptothetopofthesalaryrange.CustomsLevel4staffwhoreceivedthemaximumsalarypayablefortheirclassificationwereeligibleforasalaryincrease
oftwopercent,subjecttoasatisfactoryperformancerating.Thiscameaboutthroughanadjustmenttothesalarybandsinthe2004–2007CustomsCertifiedAgreement.
Allstaffatthetopofthesalaryrangewhoareratedasperformingaboveagreedrequirementsareeligibleforabonuspaymentequivalenttofivepercentofsalary.
Therewere4467employeeseligibleforperformancepayattheendofthe2004–05period.Twohundredandninetyemployeesreceivedaratingofperformedaboveagreedrequirements.Thisrepresents6.5percentofparticipatingemployeesanda1.7percentincreaseon2003–04results.
Code of Conduct
CustomsincreasedattentionpaidtointegrityandethicsthroughCustomstraineecoursesandtheCustomsgraduatetraineeInduction.Inaddition,newsitemsandthereleaseofonlinelearningassistedinbetterawarenessoftheAPSvaluesandcodeofconduct.
Figure �1: �00�–0� Performance Assessment and Feedback Scheme ratings – performed above agreed requirements
CL1 CL� CL� CL� CL� Total
Numberofstaffratedperformedaboveagreedrequirements
No 59 68 93 53 17 ��0
*Notallstaffperformedaboverequirementsreceivedaperformancebonus.Somereceivedanadjustmentinsalary
Figure ��: �00�–0� performance pay outcomes (Certified Agreement)
CL1 CL� CL� CL� CL� Total
Numberofstaffreceivingbonus No 30 36 34 14 3 11�
Totalamountpaid $ 36304 49037 59489 31066 7128 1�0 0��
Bonusamountaverage $ 1210 1362 1750 2219 2376 1 ���
Minimumbonuspaid $ 424 50 526 2219 2376 �0
Maximumbonuspaid $ 1289 1573 1807 2219 2376 � ���
Figure ��: �00�–0� performance pay outcomes (Customs Director AWA holders)
Numberofstaffreceivingbonus No 5
Totalamountpaid $ 3471
Bonusamountaverage $ 694
Minimumbonuspaid $ 36
Maximumbonuspaid $ 871
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Customsconducted54investigationsonsuspectedbreachesoftheCodeofConductunderSection15(3)ofthePublic Service Act 1999.(13werecarriedoverfromthepreviousfinancialyear).Attheendoftheyear,29investigationshadbeenfinalisedand25werecontinuing.Ofthe29finalisedinvestigations,breacheswerefoundin25cases.
Inthemajorityofcases,theallegedbreachesinvolvedmorethanoneelementoftheAPSCodeofConduct(seeFigure54).
Sanctionstookintoaccountthecircumstancesandseriousnessofeachbreach(seeFigure55).
Inadditiontherewerefourcaseswherebreacheswerefoundbutaformalsanctionwasnotimposed.Ofthesematters,threeinvolvedformalcounsellingandoneinvolvedtheemployeebeingplacedonadevelopmentcourse.
Investigations of employee misconduct
CustomsInternalAffairsUnitisresponsiblefortheinvestigationofallcomplaintsofseriousmisconductandsuspectedcriminalityagainstCustomsemployees.TheInternalAffairsUnitprovideslecturesonintegrityissuesandinternalfraudcontroltoallCustomsnewmembersandtoallemployeesattendingtraining/developmentcourses.TheUnitaddressesworkgroupsthroughouttheorganisationtoremindstaffoftheirreportingobligations.
TheUnitinvestigated72complaintsofseriousmisconductand/orcriminalityagainstCustomsemployeesandalso154miscellaneousmatters(seeFigure56).Thisrepresentsadecreaseonpreviousfigures,whichmaybeattributedto:
• improvedunderstandingofregulationsontheuseofcomputers
Figure ��: Breaches of the APS Code of Conduct found in �00�–0�
Breach Number of cases*
Failuretobehavehonestlyandwithintegrity 3
FailuretoactwithcareanddiligenceinthecourseofAustralianPublicServiceemployment 3
Failuretotreateveryonewithrespectandcourtesyandwithoutharassment 3
FailuretocomplywithallapplicableAustralianlaws 1
Failuretocomplywithanylawfulandreasonabledirection 14
FailuretouseCommonwealthresourcesinapropermanner 14
Provisionoffalseormisleadinginformationinresponsetoarequestforinformationthatismadeforofficialpurposesinconnectionwiththeemployee’sAPSemployment
2
FailuretobehaveinawaythatupholdstheAPSValuesandtheintegrityandgoodreputationoftheAPS
17
*Insomeinstancesmorethanonebreachwasrecordedforthesamecase.
Figure ��: Sanctions imposed for breaches of the APS Code of Conduct in �00�–0�
Sanction Number of cases*
Terminationofemployment 3
Reductioninclassification 0
Reassignmentofduties 2
Reductioninsalary 3
Salarydeductionsbywayofafine 12
Reprimand 8
*Insomeinstancesmorethanonesanctionwasimposedforthesamecase.
Managementofhumanresources 11�
• InternalAffairsUnit’sincreasedvisibilitythroughouttheorganisation
• continuationoftheintegrityeducationprogram.
Ofthe72complaintsreceived,17weresubstantiated,33werenotsubstantiated,19areopeninvestigationandthreewerereferredtoanotherdepartment.Disciplinaryactiontakenonthe17substantiatedmattersrangedfromcounsellingtoareductioninsalary(seeFigure57).
Ofthe72complaintsreceived,40weredeemedtoinvolvefraudasdefinedbytheCommonwealth Fraud Control Guidelines.Ofthese,13weresubstantiated,14werenotsubstantiatedand13arebeinginvestigated.Substantiatedfraudrelatedtomisuseofcorporatefuelcard(onecase),misuseofcorporatecomputers(ninecases),theftofdetainedDVDs(onecase),attempttoavoidthepaymentofduty(onecase)andabuseofposition(onecase).
Security
Customsgranted1000securityclearancestoCustomsongoingandnon-ongoingemployees.Thesewerecomprisedof557forcontractors
andconsultants(760thepreviousyear)and443forongoingandnon-ongoingemployees(508thepreviousyear).
Vettingserviceproviderswereusedtoassistprocessingsecurityclearancesduringpeakperiods,suchasSouthernOceanMaritimePatrolandResponserecruitmentprocesses.
CITSolutionswasengagedtoprovideaprotectivesecuritycoursespecificallytailoredtoCustomsoperationalenvironment.Anonlinesecurityawarenesstrainingpackagewasalsodeveloped.Customsstaffwillcompletesecurityawarenesstrainingannuallyandthiswillbelinkedtotheonlineperformanceassessmentandfeedbackprocess.
CustomscommencedaSecurityEnhancementProjecttocomplywiththephysicalsecuritystandardssetoutintheProtective Security ManualandAustralian Communication and Information Security Instructions(ACSI33).Customsenhancedsecuritybyredevelopingserver/communicationsroomsandaccesscontrolarrangementsnationally.Theprojectimprovedsignalstrength,integratedclosedcircuittelevisionandimprovedserverroomhardening.
Figure ��: Trends in internal investigations, security checks and lectures
�00�–0� �00�–0� �00�–0�
Investigationsundertaken 90 122 72
Investigationsfinalised 78 97 51
Miscellaneousinquiriesundertaken 128 159 154
Miscellaneousinquiriesfinalised 128 159 154
Securitychecksundertaken 537 466 480
Lecturesgiven(participants) 436 448 585
Figure ��: Action taken on substantiated complaints of serious misconduct and/or criminality �00�–0�
Action Number of cases
Awaitingoutcomeofadministrativeaction 5
Salaryreductionandreprimand 1
Offendernotidentified 2
Informationmaintainedforintelligence 1
Fined 1
Finedandreprimanded 6
Counselled 1
Total 1�
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11� AustralianCustomsServiceAnnualReport2004–05
TheprojectalsodeliveredmajorsecurityimprovementstofacilitiesinQueensland,theAustralianCapitalTerritory,VictoriaandSouthAustralia.FurtherworksarescheduledinNewSouthWales,WesternAustraliaandTasmaniain2005–06.
Occupational health and safety performance
Detailsofcompliancewithsection74oftheOccupational Health and Safety (Commonwealth Employment) Act 1991areatAppendixA.
Comcareconductedawhole-of-agencyinvestigationintoCustomsoccupationalhealthandsafetypoliciesandpracticesbetweenAugust2004andMarch2005.Theconclusionwasthat:
• occupationalhealthandsafetyattheworkplacelevelisgenerallywellmanaged
• Customsoccupationalhealthandsafetymanagementsystemsarelargelyeffective.
ThereporthighlightedthatCustomsperformedwellindocumentingstrategy,purchasingandcontrolofproduct,managingworkprocess,managingmovementandmaterial,andcollectingandusingdata.Severalrecommendationsweremadesuchasincreasingtheawarenessofmanagersandsupervisorsoftheirrolesandresponsibilities
forOH&Sperformanceandenhancingtheiraccountabilityinperformingtheseroles.Thesewillbeaddressedinthedevelopmentoffuturestrategies.
CustomspaysapremiumtoComcareforworkerscompensationinsurance.Revisionofthe2004–05premiumratefrom2.18percentto2.34percentcreateda$437899penaltyamountinthe2005–06premium.Thiswasduetotheadverseperformanceofclaimdevelopmentgenerallyandthelateacceptanceofonehigh-costclaimincurredin2001.
Theforecastpremiumfigurefor2005–06is2.49percentpercent,whichisariseof6.4percent,slightlyabovethesixpercentincreaseoftheoverallpremiumrateforallFederalagencies.Thisrisereflectsanincreaseinclaimsforpsychologicalinjury,increasednumbersofclaimsandincreasesintimeoffworkforinjuredworkersacrossthePublicService.ForCustomstherisereflectsanincreaseinthecostsofclaimsduetoincreasedtimeoffworkandhighermedicalbillsratherthananincreaseinthenumberofclaims.
Customsalsoexperiencedfeweracceptedpsychologicalinjuryclaimsin2004–05thanin2003–04.
Figure ��: Occupational Health and Safety Performance
Performance measure �00�–0�* �00�–0�* �00�–0�
Acceptedcompensationincidentclaims 243 215 173
Claimsper100staff(headcount) 4.83 4.47 3.42
Acceptedcompensationincidentclaimswithtimeoffwork 134 115 98
Acceptedcompensationincidentclaimsresultingin5ormoredaysincapacity
71 55 64
Claimsof5ormoredaysincapacityper100staff(headcount)
1.41 1.14 1.27
Qualityofreturntoworkoutcomes^ 87% 91% 88%
Annualabsenteeism# .. .. 12.17%
* Asat31Julyofthatyear.
^ Numberofstaffwhosuccessfullyreturnedtoemploymentfollowingtheimplementationofareturntoworkplan.
# AnnualabsenteeismratesarecalculatedattheendoftheMarchquarter.
Corporateresourcemanagement 11�
Corporate resource management
Managing our finances
Customshasanumberofinternalandexternalprocessesdesignedtoensurecompliancewithfinancialmanagementresponsibilities.TheseprocessesincludetheannualNationalResourceAssessmentprocess,whichisthefoundationforinternalbudgetallocations.TheNationalResourceAssessmentprocessseekstoallocateappropriationfundingandotherfundingtotheoperationalunitsofCustoms.Theagencyhasamid-yearreviewofallocationstoadjustfundingallocatedaftertheNationalResourceAssessmentprocessandre-aligninternalbudgetsbasedonyear-to-dateperformance.
Customsproducesseveralfinancialreportsonamonthlybasistoreportactualresultsagainstbudget.TheExecutive Monthly Management Reportcomprisesareportoffinancialperformanceagainstinternalandexternalbudgetsandasectiononotherperformancereporting.ThroughtheCorporateBusinessIntelligencesystem,amonthlyreportcoverscomprehensivefinancialandstaffingdataelectronicallydistributedtoCustomsmanagers.Inaddition,CustomsreportsonamonthlybasistoGovernmentthroughthereportingsystemsadministeredbytheDepartmentofFinanceandAdministration.
AmonthlyreportisalsoprovidedtotheDepartmentofthePrimeMinisterandCabinetonCMRandaquarterlyfinancialreportresultingfromthereviewofCustomsfinancialhealthisalsoprovidedtotheMinisterforJusticeandCustomsandtheMinisterforFinance.
InresponsetotherevisedCommonwealthProcurementGuidelinesof1January2005,CustomsNationalProcurementandContractingsectionhasrevisedinternaldocumentationandbusinessprocesses.AnannualprocurementplanwaspublishedontheAustenderwebsiteinaccordancewiththerequirementsoftheCommonwealthProcurementGuidelines.
TheFinancialServicesDivisionimplementedanumberofprocessimprovementprojectsthroughout2004–05.Theseinclude:
• anupdatednationaluniformorderingsystemtoimproveinternalprocessesfororderingnewuniformsandtoenablebetterstockmanagement
• changestothetravelmanagementsystemtoimprovefunctionalityforusersandalsotoenableabetterinterfacewiththegeneralledger.
WhentheimportsversionoftheIntegratedCargoSystem(ICS)isimplementedfinancialtransactionsfromICSwillinterfacedirectlyintoCustomsfinancialmanagementsystem,QSP.Thiswillenablebetterreportingandanalysisofmajorrevenuecollectionsandfacilitateimproveddebtmanagementprocesses.
Purchasing
CustomssuccessfullyimplementedthenewCommonwealthProcurementGuidelinesflowingfromtheAustralia-UnitedStatesFreeTradeAgreement.Customscompetitivetenderingandcontractingoperationscontinuetoreflectbestvalueformoneytoencouragecompetitionandproduceoptimalresultsfortheagency.Corepurchasingpoliciesincludingthe30DayPaymentPolicy,theOccupationalHealthandSafetyPolicy,andconstructioncodepolicy(National Code of Practice for the Construction Industry)aremonitored.
ProcurementoperationsaredevolvedthroughoutCustoms.TheNationalProcurementandContractingsectioninCentralOfficeprovidesadviceandassistancetothebusinessareasoftheagency.Thesectionisresponsibleforassuringimplementationofgovernmentpurchasingpolicyandprinciples.
Information and communication technology management
Apartfromtheday-to-daysupervisionandcontractmanagementofseverallargeoutsourcedarrangements,theInformationandOfficeTechnologyDivisionhasanumberofcriticalprojectsunderway.
ITcontracts
TheInformationServicesAgreementbetweenCustomsandEDSAustraliawasextendedtwice
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Customs teams – better information for managers
The Customs Corporate Support teams are constantly looking for innovative ways to distribute timely, accurate information to users and managers.
OneoftheseprojectswasrecognisedinJanuary2005withtheCEO’sAustraliaDayAward.Theprojectrevolvedaroundsupplyofastandardsetofmonthlymanagementinformation,incorporatinghumanresourceandfinancialexpenditure,tomanagersandbusinesssupportareas.ThecombinationofmultidimensionalreportingcubesandstandardsreportsallowsCustomsmanagementandsupportstafftoanalyseandviewfinancialandhumanresourceinformation.Thereportingsolutionwasdevelopedinhouseinlessthanthreemonthswithateamoffivestaff.
11� AustralianCustomsServiceAnnualReport2004–05
Morethan300managersandstaffnowusethereportingsolution.Sincetheinitialrolloutanumberofenhancementshavebeenidentifiedandwillbedeliveredinthe2005–06financialyear.Theseinclude:
• moredrillthroughcapabilityintotransactions
• additionalstandardreportstomanagers
• additionalexceptionreports
• thecompletionofthedatawarehouse.
Thereportingproductsetthefoundationforincorporatingfinancialandnon-financialinformationandhasbeenusedasthemainreportingtoolforallFinanceandHRsystems.TheInformationTechnologyBranchisusingtheproducttoanalysethedetailedinformationreceivedfromITsuppliers.
The Corporate Support team, from back left to right: Jo Corcoran, Samual Roberts, Jon Brocklehurst, Mark McDonald and
Matthew Wilson. Front left to right: Peter Glanville and Danielle Yannopoulos.
andisinitseighthyear.Theoriginalfive-yearcontractcameintoeffectinMarch1998andallowedfortwotwo-yearextensions.Customsexercisedthefirsttwo-yearextensioninJune2002andextendedthecontracttoMarch2005.Thesecondtwo–yearextensionwassignedon13August2004andtheAgreementisduetoexpireon30June2007.EvaluationsandbenchmarkingsupportedthedecisionstoextendthecontractsasEDSprovidedvalueformoneyandservicestandardshadimprovedovertime.
TheTelecommunicationsServicesAgreementwithTelstraofSeptember2003providesgreaterbandwidthandcheapercostseventhoughtheoverallneedshaveincreased.Asaconsequencethecontractvaluehasincreased.
Improvedservicestousersandreducedcallcostshasresultedfromwideareanetworkandfundamentaltelecommunicationsservices,andvoiceservicesusingnewMitelequipment.
ITstrategicplanning
CustomsITStrategicPlan2005–2010wasdevelopedthisyearwithadraftsubmittedtotheInformationManagementStrategyCommitteeforreview.Theplanspansthefullfive-yearspectrumtoprovideaflexiblebasisforCustomsITalignmentwithCustomscurrentandfuturebusinessneeds.TheplanaddressesITgovernance,informationsystems(applications),informationmanagement,informationtechnology,ITsecurity,people,andITbudget.Finalendorsementisexpectedin2005–06.
SmallSystemsDevelopmentUnit
CustomshascreatedaSmallSystemsDevelopmentUnitinordertodevelopandmaintainapplicationsthatareconsideredtoosmalltooutsource.Customshashadanumberofsuccessesoverthepastyearindevelopingabroadrangeofapplicationssuchas:CustomsVettingRegister,DogTaskingSystem,PenaltiesTrackingandRecordingSystemandthePassengerAnalysisUnitFlightSchedulingApplication.TheSmallSystemsDevelopmentUnitalsoprovidesacompletehostingservicefortheseapplications.ThishasproveneffectiveformanyusersinCustomswhoreceivedabetterandmoreresponsiveservice.
Therefreshofdesktopsandthereplacementofprintingandphotocopyingdeviceswereprogrammedforthisyear.Thedesktoprefreshwasputbackuntilthe2005–06financialyear,butwiththerolloutofCMR,newscreensarebeingintroduced.Aprintingandphotocopyingsolutionisbeingexploredtoreplacethesedeviceswithmulti-functiondevices.Apilotwasrunandcostingsexplored.Furtherexaminationisbeingconsideredpriortoafinaldecisionbeingmade.
ITsecurity
ITsecurityisessentialtothemanagementoftheCustomsITinfrastructure.InadditiontoensuringthattheCustomsITenvironmentcomplieswithGovernmentlegislationandguidelines,aconsultanthasbeenemployedtoassistindeveloping,implementingandfullytestinganITdisasterrecoveryplan.ArevisedversionoftheCustomsITSecurityPolicywascompleted.
Authenticationtechnologies
CustomsformedpartofamultiagencyreviewassessingtheeffectivenessoftheGovernment’sGatekeeperStrategy.Thisreview,chairedbytheDepartmentofFinanceandAdministration,reporteditsfindingstotheManagementAdvisoryBoard’sInformationManagementStrategyCommitteeinFebruary2005.CustomsalsoplayedanactiveroleinthelaunchoftheAustralianGovernmentAuthenticationFrameworkthroughapresentationon28April2005ofCustomsexperience.ThroughaMemorandumofUnderstandingwiththeAustralianTaxationOffice,CustomsdeployedenhancedsecuritysoftwareintotheCustomsConnectFacility,thesecureclientgatewaytotheIntegratedCargoSystem.
Informationstandardsandharmonisation
AustralianCustomschairedtheWorldCustomsOrganizationdatamodellingsub-committeeforthepastthreeyears.Thecommitteecontributestothedevelopmentofinternationaldatastandardsandassociatedproof-of-conceptprojects.Theseprojectsplayanimportantroleinthebettermanagementofinternationalsupplychains.
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1�0 AustralianCustomsServiceAnnualReport2004–05
PrincipaloutputshavebeenthefinaldraftingoftheAustralia/TaiwanpaperlesstradingprojectdefinitionandinputtoinformationissuesattheWorldCustomsOrganization,UnitedNationalsCentreforTradeFacilitationandElectronicBusiness,AsiaPacificEconomicCooperationandinassociationwithFreeTradeAgreements.
CorporateStatistics
CustomsCorporateStatisticssectionparticipatedaspartofaworkinggrouptoreviewperformancemeasuresfortherevisedPortfolioBudgetStatements.Severalnewmeasureshavebeenintroduced.Aninternalquarterlypublication,called Customs Figures,providesimportantinformationforstrategicandoperationalplanningandprocessmonitoring.
CorporateResearchEnvironment
CustomsCorporateResearchEnvironmentinvolvesenterprisewidedatawarehousing,andresearchandreportingcapabilityforCustomsapplications.SignificantsupportwasprovidedforCMRandothernewapplications.
DataManagement
TheCustomsDataManagementteamsupportedCMRdevelopment,datagovernanceandimplementationoftherecommendationsoftheInternalAudit‘ManagingData’Review.Thisensurestheeffectivedeliveryofalloutputsthroughtheprovisionofdatastandardsandservices.
Informationpolicy
ProjectplanningandthebusinesscasewererefinedfortheRecordsandInformationManagementSystemproject.Fundingfor2005–06wasapprovedinJune2005andworkcommencedinpreparationforreleaseofarequestfortenderinlate2005.Inaddition,threerecordkeepingadviceshavebeenissuedtoCustomsstafftoassistincompliancewithlegislativerequirements.
CorporateCommunication
CorporateCommunicationplayedakeyroleinenablingCustomstoachievekeyoutputsduring2004–05.Examplesincluded:
• IncreasedcommunityawarenessofCustomsanditsvariedborderprotectionrolesthroughparticipationinthehighlysuccessfulSevenNetworkBorder Security televisionseries
• Heightenedawarenessofbordercompliancethroughthepublicisingofmajordetectionsofnarcotics,dutyevasion,trademarkandcopyrightinfringements,illegalfishingapprehensions,andwildlifesmugglingattempts
• Promotionofthe24hourCustomsHotlineacrossnorthernAustraliaencouragingremoteandregionalcommunitiestoactasCustoms‘eyesandears’forsuspiciousactivity
• SupportforthesuccessfulintroductionofICSExportsthroughtheprovisionofcommunicationservicesandstrategiestopromoteindustryreadinessforthenewsystem.
IntegratedSolutions(ClientDataManagementStrategy)
ThroughtheClientDataManagementStrategy,Customstakesastrategicapproachtomanagingclientinformationaswellasallowingformoreefficientandeffectivebusinessadministrationprocessesandriskassessment.From2001,projectshaveconsolidatedclientinformationacrossmultipleCustomsbusinesssystems.Sofar,thestrategyhasdelivered:
• tworeleasesoftheexaminationsmodule(Exams1Aand1B)tosupporttherecordingofallexaminationsandsearchesintheseacargoandaircargoenvironment
• anadditionalrelease(Exams2)toextendrecordingtopostalandmassscreeningfacilitiesandinterfacewiththeICS
• theLicensingmoduletorecorddetailsofallLicensedandAppointedCustomsPlacesandlicensedCustomsbrokers.
Consultants
Thirtyfivenewconsultancycontractswereenteredintoinvolvingtotalactualexpenditureofapproximately$4.1m.Inaddition,13ongoingconsultancycontractswereactiveduringthe2004–05yearinvolvingtotalactualexpenditureofapproximately$0.43m.
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Selectionandengagementofconsultants
Consultantsareselectedbyopentender,selecttender,directsourcingorthroughapre-existingpanelarrangement.Thetypeofselectionprocedurewilldependonthelevelofcompetitioninthemarketandonthevalueoftheproposedcontract.Customsgenerallycommissionsconsultantsto:
• investigateordiagnoseadefinedissueor
problem
• carryoutdefinedresearch,reviewsandevaluations
• provideindependentadvice,informationorcreativesolutions
• providespecialisedservices,includingassistancewiththedevelopmentand/orimplementationofpurpose-builtITsystemsandlegaladvice.
AllselectionprocedureswerecompliantwithCommonwealthpolicyandprinciples.
Customs teams – TV audience given insight into work on Australia’s frontline
Customs officers across Australia have been playing key roles in the Network � TV series, Border Security, which was broadcast nationally over the past 1� months.
FromAustralia’snortherncoasttoitsinternationalairandseaports,theseriescoveredtheexposurebyCustomsandotherborderagenciesofcriminalactivityastheygo
Corporateresourcemanagement 1�1
abouttheirdailywork.Itprovedtobecompellingtelevisionwithaudiencefiguresachievingveryhighratings.MuchofthefilmingtookplaceatmajorairportswiththeproductioncrewscoveringthemomentwhenCustomsofficersmakeadrugdetectiontotheresolutionofthecaseincourt.
Customsofficerswhovolunteeredtoparticipateintheseriesfoundthetaskchallengingbutrewarding.AsMichaelJackson,anofficerbasedatSydneyAirport,explained,oneofthemainchallengesinfrontofthecamerawastoactnaturallyandperformthenormalfunctions.
However,hehasnodoubtsaboutthebenefitoftheseriestoCustoms.“ItgivesthepublicaninsightintowhattheactualfunctionsofaCustomsofficerreallyare.MostmembersofthetravellingpublicwouldpassthroughtheairportandseeCustomsofficersperformingthefacilitationsideofthingsandrarelyencountertheenforcementsideofourwork.Thisshowgivestheaudienceachancetounderstandhowdifficultourjobisandtheobstacleswefaceonadailybasisintryingtosortthegoodfromthebad,sotospeak.”
Accordingtotheprogrammakers,Border Security provedtobeasuccessbecauseitshowsrealpeople,carryingoutadifficultjob,insometimesarduouscircumstances,toprotectAustralia’sfrontline.
Customs officers Michael Jackson and Clarinda Oliveira,
among the many officers who have featured in the TV series,
Border Security.
1�� AustralianCustomsServiceAnnualReport2004–05
Themainpurposesforwhichconsultantswereengagedinclude:
• humanresourceandoccupationalhealthandsafetyadviceandanalysis
• securityriskreviewandanalysisservices
• procurementandcompetitivetenderingadviceandassistance
• architecturalandconstructionadvice.
Foralistofconsultancycontractsletin2004–05refertotheCustomsInternetsite.
Competitive tendering and contracting, contract management and corporate outsourced arrangements
CustomshasoutsourcedarrangementsforITsupport,legalservices,internalauditservicesandsomerecruitmentservices.
ThemajorityofCustomsITsupportisoutsourcedtoEDS.CustomsITServicesAgreementwithEDS(Australia)wasextendedthisyeartoJune2007.
AconsortiumheadedbyComputerAssociatesprovidedthedevelopmentandsupportfortheIntegratedCargoSystemandassociatedsystems.Inaddition,specialisedITservicesaresourcedfromanumberofotherITprovidersincludingIBMandCPTGlobal.
TheCustomsTelecommunicationsServicesAgreement(CTSA)betweenCustomsandTelstraCorporationisinitssecondyearofoperation.Thethree-yearcontractcameintoeffectinSeptember2003andallowsfortwotwo-yearextensions.
TelstraiscontractedtoprovidetheWideAreaNetwork(WAN),whichincludesdatatransmission,networkredundancyandoperationalinfrastructureformanagedtelecommunicationsservicessuchasroutedandnon-routeddataandISDNswitcheddataservices.AswellastheprovisionofWAN,Telstraalsoprovidesvoiceservicessuchasmobiletelephony,satellite,paging,domesticinboundvoice,audioconferencingandtelephonecallingcards.
CustomsLegalServicesareoutsourcedtotheAustralianGovernmentSolicitor.ThesewererenegotiatedinDecember2004.ACustoms
LegalPanelsupplementsthecoreoutsourcedlegalunit.
Customsinternalauditfunctionisco-sourcedtoPricewaterhouseCoopers,supportedbyoneortwoCustomsofficers.
RecruitmentintotheCustomsTraineeorCustomsGraduateTraineeclassificationsishandledunderasoleprovidercontractarrangementwithDFPRecruitment.Thecontractincludeslodgingadvertisements,receivingapplicationsandconductingassessmentcentres.Customsinterviewscandidatesthatareshortlistedfromtheprocessandmakesthefinalselectiondecision.
CustomshadnocontractsexemptfromtheGazettalrequirements.
Advertising and market research
ExpenditureonadvertisingandmarketresearchisdetailedinAppendixCon218.
Assets management
AstocktakeofCustomsassetswasconductedandassetmanagementpoliciesandproceduresarecontinuallyupdated.
Discretionary grants
Customsdidnotprovideorreceiveanydiscretionarygrantsin2004–05.
Events that will significantly affect operations or financial results
Adoptionofinternationalstandards
InDecember2002,theFinancialReportingCouncilannouncedthatAustraliawilladoptinternationalfinancialreportingstandardsissuedbytheInternationalAccountingStandardsBoardby1January2005,includingGovernment.ThemainreasonforthisistoprovidesomeuniformityinaccountingstandardsforAustraliancompaniesoperatingoverseas.
Further,theAustralianAccountingStandardsBoardisalsoconsideringtheharmonisationofgenerallyacceptedaccountingprincipleswithGovernmentfinancialstatistics.
TheAustralianAccountingStandardsBoardsissuedreplacementAustralianAccounting
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Customs teams – establishing a new Customs HouseThe new Sydney Customs House breaks with tradition with its location beside an airport rather the waterfront or Central Business District.
ThedecisiontoestablishanadministrativeheadquartersatSydneyAirportreflectstheincreasingroleofpassengermovementinCustomsoperations.Lastyear,atotalof9868363passengersandcrewenteredand/ordepartedAustraliaviaSydney.
ThenewSydneyCustomsHouseisnexttotheinternationalterminalcarparkatSydneyandisleasedbyCustomsfromSydneyAirportCorporation.Customsoccupiesmostofthetenfloors.
ThetaskofconsolidatingcustomsoperationspreviouslylocatedinSydneyCentral,
Corporateresourcemanagement 1��
LinkRoadneartheairport,andMarrickvillewasundertakenbyaprojectteamworkingwiththebuildingowner,contractorsandstaffovertwoyearstoensurethebuildingmetcustomsrequirements.
Internalfitout,developedafterstaffconsultation,beganinAugust2004withemployeesprogressivelymovingintothebuildingbetweenDecember2004andFebruary2005.Relocationsoccurredwithnodisruptiontooperationalwork.
CustomsHousehasapubliccounterforgeneralpublicandindustryenquiries.Itfeatureshighlevelsofsecurity.
CustomsHouseislocatedatSydneyAirport,butitslinkswiththewaterfrontremainasthebuildingisclosetoPortBotanywheremostairandsealogisticscompaniesarebased.
The Sydney accommodation project team, Karen Williams
and Neil Koos, who were awarded a Customs National
Australia Day award for their management of the move
to the new Customs House.
The new Customs House in Sydney.
Standardstoapplyfrom2005–06.ThenewstandardsaretheAustralianAccountingStandardsBoardequivalentstointernationalfinancialreportingstandardsissuedbytheInternationalAccountingStandardsBoard.
TheadoptionofAustralianAccountingStandardsBoardequivalentshadamajorimpactonallgovernmentagencies.ForCustoms,thisincludedensuringcurrentsystemsmetthenewrequirements.
Customsdevelopedaprojectplanthataddressedthechangesinsystems,majoraccountingpolicies,impactonCustoms,risksandkeytimelines.InformationontheimpactsonCustomsfinancialstatementsfromtheimplementationofInternationalFinancialReportingStandardsisincludedinthefinancialstatementssectionofthisreport.
1�� AustralianCustomsServiceAnnualReport2004–05
Accountability to clients
Client service TheClientServiceCharteroutlinesCustomsserviceprinciples,andkeyservicestandards.Thecharterrecognisesthatqualityofservicetoclientsisimportanttothecommunity’sconfidenceinCustoms.
ThecharterisavailableinCustomsoffices,ontheCustomsInternetsite,andisdistributedatairports,exhibitions,forumsandclientmeetings.Itadvisesclientsthat,atanytime,theymaytaketheircomplainttotheCommonwealthOmbudsman,theirFederalMemberofParliamentortheFederalMinisterresponsibleforCustoms.
Social justice and equityTherangeofCustomsactivitiesaffectspeoplefromawidevarietyofculturalandsocial-economicbackgrounds.Tobeaneffectiveagency,Customsmustbeawareofhowitsoperationsandservicesimpactpeopleinthecommunityandoverseas.Customsensuresthataccesstoinformationandservicesisequitable.
SocialjusticeandequityimpactsandstrategiesareincorporatedintheSocialimpactsectionofSustainabilityonpage129.
Informationonworkplacediversityisonpage110andreportingontheCommonwealthDisabilityStrategyisonpage221.
Improving service to our clients through the Customs Information and Support CentreInJune2005,theCustomsInformationandSupportCentre(CI&SC)completeditssecondfullyearofcentralisedoperationinSydney.TheCI&SChandlesinquiriesoncargosystemsandprovidesgeneralinformationonCustomsservicesandprocedures.
TheCI&SChandledmorethan550000cargosystemsandgeneralinformationinquiriesfromacrossAustralia,anincreaseofnearly19percentfrom2003–04.Contactsincluded:
• 439000telephonecalls
• 89000emails
• 23000inquiriesbyfacsimile
• 1900inquiriesbyletter/counter/meetings.
TheCI&SCplayedakeysupportingrolewhen
theexportscomponentofIntegratedCargoSystem(ICS)becameavailabletoindustryinSeptember2004.ItwillplayasimilarroleforthereleaseoftheimportscomponentofICSinthesecondhalfof2005.
ThenumberofcallsincreaseddramaticallyafterthereleaseoftheexportscomponentoftheICS.InonepeakperiodinOctober2004,Customsreceivedover2500callsadayresultinginsomecallerswaitinglongerthanexpected.Nearly54percent(1336)ofthesecallswereforICSsupport.
Customshasimprovedthecargosystemsupportfunction,particularlythroughtheprovisionofa24-hourseven-dayaweeksupportservice.Anewusersupportframeworkcameintooperationon4April2005,implementingamulti-tieredstructure,withfirstlevelsupportinSydneyandsecondandthirdlevelsupportinCanberra.
TheCI&SCrelocatedinDecember2004fromitsSydneycitylocationtothenewCustomsHouseatSydneyInternationalAirport.ThisrelocationenabledtheCI&SCtoupgradeitstelephonyandimproveclientservicedelivery.
StrategiestofurtherimproveservicetoclientsincludedinstallingacallcentremanagementsysteminlateFebruary2005forrealtimemonitoringandmanagementofcalls.Thecentrealsorecruitedandtrainedanadditional16staff.Theseimprovementsareexpectedtoreducecallwaitingtimes.
Complaints and complimentsTheComplaintsandComplimentsManagementSysteminvitesthepublictocommentonCustomsservices:
• email(comments@customs.gov.au)
• theCustomsInternetsite(www.customs.gov.au)
• freecall(1800228227).
QuarterlyreportsarepublishedontheCustomsInternetsite.
Customsinvestigatesallformalcomplaintsandaimstorespondtoclientswithin15workingdays.Thisstandardwasachievedin97percentofcases.Complainttrendsareregularlymonitoredtoidentifypossibleserviceimprovements.
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onecomplaintforevery600twenty-footequivalentunits(TEU)x-rayed.Themajorityofthesecomplaintsrelatedtodelayscausedbytheinspectionprocess.AdditionalContainerExaminationFacilitiesshiftsandcreditcardfacilitiesforpaymentofdutywereintroducedtoaddressthesecomplaints.
Complimentsrelatedprimarilytoofficersofferingassistanceandbeinghelpful,professionalorinformative.Customsstaffmembersareadvisedofpersonalcompliments.
Environmental accountability Customsreportsannuallyonitsperformanceonecologicallysustainabledevelopmentandenvironmentalmattersundersection516AoftheEnvironmental Protection and Biodiversity Conservation Act 1999.
ReportingrequirementsareincludedintheSustainabilitysectiontofollow.
Customs teams – protecting a unique borderThe 1��� Torres Strait Treaty allows free movement of traditional people and goods of both countries for traditional activities. The treaty recognises that the Islanders of the Torres Strait and people of the adjacent coastal area of Papua New Guinea have traditionally mixed and traded with each other. These movements, without need for passports or visa, number some �0 000 annually.
TheTorresStraitcomprisesover100islands,sandcays,reefsandrockyoutcropsofwhich14areinhabited.TheadministrativecentreisatThursdayIsland,whileHornIslandistheinternationalairportclearingapproximately500internationalflightsperyear.
CustomsmaintainsregulardiscussionswithPapuaNewGuineaincludingtalkswithPapuaNewGuineaCustoms(InternalRevenueCommission)andtheRoyalPapuaNewGuineaConstabularytoshareintelligenceandinformation.ThiscombinedenforcementeffortaddressestransnationalcrimethataffectsbothcountriesandbringstogetherofficerswhoworkintheTorresStraitandDaru(theadministrativecentreforthewesternprovincesof
Customsreceived2319complaintsand789complimentsin2004–05.Ofthese,267complaintsand10complimentsrelatedtootheragenciesandorganisationsandwereforwardedforaction.
Customsprocessedapproximately10millionincominginternationalpassengersandreceived1121complaintsand262complimentsrelatedtopassengerprocessing,aboutonecomplaintforeach40000passengersenteringAustralia.Atotalof245(22percent)ofthesecomplaintsrelatedtorevisedpassengerdutyfreeconcessionsfromFebruary.
Atotalof263complaintswerereceivedaboutthe(CI&SC),principallyaboutwaitingtimes.WiththeimprovementstotheCI&SC,thenumberofcomplaintsreduced.Atotalof100complimentswerereceivedabouttheCI&SC.
ComplaintsaboutContainerExaminationFacilitiesoperationandtargetingfellfrom295in2003–04to219thisfinancialyear,about
Accountabilitytoclients 1��
PapuaNewGuinea).CustomsalsoparticipatesintheannualTreatyLiaisonMeetingtodiscussrelevanttreatyissues.
Customshastenstaff,includingtwoCoastwatchofficers,basedonThursdayIsland.ItalsohasfiveTorresStraitCustomsofficers,oneeachbasedonThursdayIsland,SaibaiIsland,MabuiagIsland,CoconutIslandandDarnleyIsland.CoastwatchoperatestwohelicoptersfromHornIsland.TheseassetsarevitalinsupportingoperationalresponseactivitythroughouttheTorresStrait.
Steve Jeffs, Customs Manager Torres Strait with the Daru
manager of the Papua New Guinea Internal Revenue Commission
Les Ture and Pajaro Agia.
1�� AustralianCustomsServiceAnnualReport2004–05
Sustainability
Inrecognitionofincreasedgovernmentfocusonsustainability,thisreportprovidesadditionalinformationontheenvironmental,socialandeconomicimpactofitsactivities.CustomshaschosenindicatorsfromtheGlobalReportingInitiativethatarerelevanttoCustomsandforwhichdataisavailable.Intheyearahead,Customswillseektoimproveitsfocusonsustainabilitytobetterreflectthesocial,economicandenvironmentalimpactofouractivities.
ThissectionincorporatesmandatoryreportingrequirementsundertheEnvironment Protection and Biodiversity Conservation Act 1999andvoluntaryreportingonsocialjusticeandequity.
Customshasalwaysendeavouredtomeetprinciplesofecologicallysustainabledevelopmentandsocialjusticeandequityinpolicydevelopmentandoperationalactivity.Riskmanagementisappliedatplanningandprojectlevelsandincludesassessmentofenvironmental,geographic,social,commercialandtradingrelationshipsthatmayimpactoncorporateperformance.Establishedreportingandreviewprocessesensurethattherisksareassessedregularly,andthatsystemsandprocessessupportcontinuousimprovement.
CustomsCorporatePlancommitstheorganisationtobeingresponsiveandaccountabletoParliament,communityandindustry.Thisyear,CustomsCorporatePriorities(seepage9)includeafocusonprotectingAustralia’shealthandsafetybyworkingcooperativelywithpartneragenciesinvolvedinissuesassociatedwith:
• immigration
• quarantine
• fisheries
• police
• aviation
• industry
• foreignaffairsandtrade
• revenuecollection
• health
• theenvironment.
TheseprioritiesalsoincludeinternationalcapacitybuildinginitiativesthatsupportAustralia’sinterests,andtheneedtocontributetonationalandinternationaleffortstoachievesecuretrade.
Environmental impact
CustomsEnvironmentalPolicyStatementcommitstocontinuouslyimprovingenvironmentalperformanceinitsactivities.Customsmonitorsactivities,includingthemanagementofenergy,waterandwasteproducts,thevehiclefleetandpurchasing.
CustomsEnvironmentalManagementSystemprovidesaframeworkforconsideringandminimisingenvironmentalimpactsintheworkplace.
Customsreducedenergyconsumptioninitsofficesbyalmostthreepercentin2002–03to2003–045.Electricityandgasconsumptionforservicescommontoalltenantsinofficebuildingssuchasairconditioning,lifts,securitylights,lobbylightsanddomestichotwaterwerealsoreduced(SeeindicatorEN3onpage132).
Directenergyuseinnon-officelocationsincreasedby36percent.ThisreflectstheestablishmentofadditionalContainerExaminationFacilitiesintheyear,withsignificantincreasesinthevolumeofcontainersscanned.
Between1997–98to2003–045,Customsreduceditsenergyusageinofficeaccommodationby16percent.
Postersandcardsaredisplayedtoremindstaffoftheimportanceofrecycling,energyefficiency,computermonitorswitchoffprograms,andreducedpaperuseintheoffice.
Otherinitiativesare:
• recycledpaperisusedformostpurposesinCentralOffice
• usedfluorescenttubes,usedprinterandphotocopiercartridgesarecollectedforrecycling
• providingbinsfortherecyclingofpaper,glass,cansandplastic
• negotiationorvariationofservicecontracts.
52004–05figureswerenotavailableatthetimeofpublication
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Customs teams – making a difference in remote areas
While Customs work in protecting borders at international air and seaports is well known, a significant amount of lesser known work is undertaken by Customs district offices in remote areas of Australia.
AnexampleisthepatrolsundertakenfromdistrictofficesinWesternAustraliawhereCustomsofficersgatherinformationandinformthepubliconhowtodetectandreportillegalactivity.Therangeofthreatsintheseisolatedareasincludessmugglingofnativefloraandfauna,narcoticssmugglingandillegalentrants.Toensureexchangeofinformationwithawiderangeofgroups,Customsregularlyvisitslocal
businesses,remotecommunities,parkrangers,schoolsandstateandfederalgovernmentagencies.Itasksthemtoprovideinformationonunusualactivityintheirarea—suchassuspiciousaircraftorseacraftactivity,hiddencampsitesorfueldumps,unusualobjectsatseaorashoreorevidenceofinterferencewithfloraandfauna—thatmayindicateillegalactivity.
Althoughtheprimarypurposeofthepatrolsistodetectanddeterillegalactivity,Customsrecognisesthatinvisitingremoteareastheycanassistcommunitiesbybringingfreshprovisions,reportingdamagedfencesandinjuredstocktopropertyowners.Sometimestheyassistatthesceneofmotoraccidentsandbreakdownsorhelpwithrescueswherepeoplehavebecomelost,illorinjuredinremotelocations.CustomsofficersprovideinformationtoremotecommunitiesonemploymentwithCustomsandotherCustomsrelatedmatters.
Manypatrolsareundertakeninecologicallysensitiveareas,andCustomstakesprecautionstoensurethatanynegativeenvironmentalimpactsareminimised.Wherepossible,teamsstayonexistingtracks,avoidfragileduneareas,avoiddamagetoplantsandwildlifehabitats,observefirerestrictionsandremovetheirwasteandrubbish.Contactismaintainedwithconservationagenciestoensurethatquarantineandrestrictedareasareavoided.
Sustainability 1��
Customs officers on remote area patrol in the Pilbara.
1�� AustralianCustomsServiceAnnualReport2004–05
Initiativestodecreasewaterconsumptionorincreasewaterreuseinclude:
• effectivemaintenanceincludingchangingwashers
• installingwaterefficientshowerheadsandchilledwaterdispensersduringrefurbishments
• waterefficientwindowwashingusingbucketsinplaceofhighpressurewater
• education–remindingstaffandvisitorstobecarefulwithwaterusage.
Customsdidnotconductanyenergyauditsinthepastyearbutcontinuedtoimplementcosteffectiveenergyauditrecommendationsfromthepreviousyear.
CustomsworkedcooperativelywithotheragenciestoprotecttheAustralianenvironment.Someactivitiesandachievementsthisyearinclude:
• detectionof51livetropicalfishconcealedonanincomingfemaleairlinepassenger.Thesefishcouldhaveposedapotentiallyseriousquarantine,environmentalandhealthrisk
• chargeslaidoveranallegedattempttosmuggle24turtlesandashinglebacklizardoutofAustraliainthepost.Customs,AustraliaPostandConservationandLandManagement(WesternAustralia)workedtogethertohalttheexportoftheturtles,whichareprotectedfauna
• detectionoffourliveturtles(suspectedNorthAmericanLoggerheadMuskturtles)concealedinanarrivingpassenger’sbaggage.Theseturtlescouldhavecarrieddiseasesthat,ifintroducedtoAustralia,couldhaveseriousenvironmentalconsequences.TheturtleswerehandedovertoAustralianQuarantineandInspectionService
• detectionof26livespidersinaninternationalmailparcel
• patrolsinAustralia’sterritorialwaterssurroundingHeardandMcDonaldIslandstopreventillegalfishinginthissensitiveenvironment
• NationalMarineUnitvesselsprovidedmarinetransporttoConservationandLandManagement(WesternAustralia)officers,researchersandvolunteersto:
– MontebelloIslandsformonitoringofarateradicationprogramtohelppreventre-infestationandconfirmabsenceofpossibleremnantrodents
− KimberleyIslandstoconductacensusofbreeding,shelteruseandpopulationofred-tailtropicalbirds;examinetheeffectsofthe2004tsunamionintertidalcoralcommunities;andexamineturtlenestingactivityandcollectDNAsamples
− BernierandDorreIslandNatureReservestostudyandDNAtestpopulationsoftheBoodie(BettongiaLesueur),whichisoneofthemostendangeredAustralianmammalspecies.
• NationalMarineUnitprovidedtransporttoDepartmentofEnvironmentandHeritageresearchersandvolunteerstoAshmoreIslandsNatureReservetomonitorseabirdandshorebirdpopulations,researchgingerantsandassesstheirimpactonbirdandturtlepopulationsandtomonitorterrestrialplantspecies
• participationinOperationClearwateraimedatdetectinganddeterringforeignfishingvesselsintheGulfofCarpentariaandinthewaterstothenorthofArnhemLand.Duringtheoperation,29illegalfishingboatsand258crewwereapprehended.Officersseized12927kgoffishproductsincludingReefFishandRedFishand295kgofsharkfin(seepage66).
InFebruary2005,approximately300to400litresofdieselfuelwasaccidentallydischargedintotheharbouratThursdayIslandwhilerefuellingaNationalMarineUnitvessel.TheincidentwasreportedtoStateandFederalauthorities,andinvestigationsarecontinuing.Measureshavebeenimplementedtopreventarepeatoftheincident.
Customsworkinassistingenvironmentalprotectioninpreviousyearsresultedinthefollowingsuccessfulprosecutionthisyear:
Sustainability 1��
• CoastwatchandtheNationalMarineUnitworkedwithStateandFederalagenciesingatheringevidenceforprosecutionofacaserelatedtothedischargeof9300litresofoilmixtureintheGreatBarrierReefMarineParkbyacargoship.Theshipownerwasfined$180000andhadalreadypaid$34277incleanupcosts.ThefinewasthelargestimposedonacompanyundertheProtection of the Sea (Prevention of Pollution from Ships) Act 1983.
Social impact
CustomsmeetsarangeofCommonwealthrequirementsledbyAPSValuesandtheAPSCodeofConducttoensureitsactionsarelawfulandmeetcommunityexpectations.
Customs,with63otherCommonwealthagencies,wasassessedin2004asmeetingtheperformanceindicatorsforimplementationoftheCharter of Public Service in a Culturally Diverse Society.Customsiscommittedtotheprinciplesofsocialjusticeandequityandendeavourstoensurethatinformationandservicesareavailabletopeoplefromarangeofculturalandlinguisticbackgrounds.InthepastyearCustoms:
• deliveredcross-culturalawarenesstrainingtoenforcementstaffasrequiredandprovidedaccesstocross-culturaltrainingforallstaffthroughanonlinelearningpackage
• providedclientsfromnon-EnglishspeakingbackgroundswithaccesstointerpreterservicesthroughstaffortheTranslatingandInterpretingService
• producedselectedpublicationsindifferentlanguagesandinvariousformats
• maintainedaregisterofstaffwithlanguageskillsandutilisedtheseincommunicationswithclientsasrequired
• ensuredthatarrestedpersonswereprovidedwiththecautioninalanguageorformunderstoodbythem.
CustomspromotesequityanddiversityintheworkforcethroughtheWorkplaceDiversityPolicyandAPSValuesandCodeofConduct.Examplesofworkplacediversityinitiativesinthepastyearinclude:
• anentry-levelrecruitmentprogramspecificallyforpeopleintheTorresStraittojointheNationalMarineUnitfor12monthsassea-goingcrew.Traineesattendcoursestoobtainqualificationsandafellowcrewmemberactsasamentorandadviser
• recruitmentofcadetsundertheNationalIndigenousCadetshipProgram,ajointexercisebetweentheDepartmentofEmploymentandWorkplaceRelationsandparticipatingagencies,includingCustoms.Successfulapplicantsaresponsoredwhiletheystudyatuniversityandundertakeworkplacementsduringholidayperiods.
CustomscomplieswiththeCommonwealthDisabilityStrategytoensurethatservices,informationandpoliciesareaccessibleby,anddonotdiscriminateagainst,peoplewithadisability(seeAppendixE).
Customsiscommittedtoprovidingasafeandhealthyworkplaceforthewelfareofstaff,contractors,clientsandvisitorsthroughimplementationofanoccupationalhealthandsafetymanagementsystem(seeAppendixA).
CustomscarriedoutasignificantroleincommunityprotectionthroughitsresponsibilityindeterringanddetectingunlawfulmovementofgoodsandpeopleacrosstheAustralianborder.Prohibitedandrestrictedgoodscancauseenvironmental,socialoreconomicharm.Theseinclude:
• illicitdrugs
• objectionablematerial
• wildlife
• culturalandheritageitems
• hazardouswaste
• chemicals
• PharmaceuticalBenefitSchememedicines
• un-manufacturedtobacco
• intellectualproperty
• weaponsandunsafeproducts.
CustomscontinuestosupportGovernmentprioritiesrelatingtocounter-terrorism,securityarrangementsandprotectingourborders.Customsdevelopedabusinesscontinuitypolicytoplanforcriticalbusinessfunctionsto
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beopenforbusinessduringorafteranincident,evenifatareducedlevelofservice,untilnormaloperationscanresume.
Customsparticipatedinresearch,reportingandprojectsinrelationtocriminalactivity,includingillicitdrugmarketsandtheirdynamics,incollaborationwithresearchbodiesandlawenforcementagencies.
Whererequested,Customsundertakessearchandrescueoperations.Rescuescarriedoutthisfinancialyearincluded:
• ninesearchandrescueoperationsintheTorresStraightsuccessfullyreturningvesselsandpeopletoland.CustomsutilisesReadyResponseVesselsbasedonThursdayIslandandfourouterislands(Darnley,Saibai,MabuiagandCoconut)andreliesonTorresStraitCustomsofficers’localknowledgetosafelyattendtovesselsindistressandprovidethenecessaryassistancetobringthemtosafehaven
• fiveIndonesianfishersfoundstrandedanddehydratedonAshmoreIslandsinNovember2004.Thefishershadbeenseparatedfromtheirvesselandwashedashore.Theyweregivenmedicalattentionandfreshsuppliesoffoodandwaterbeforebeingreturnedtotheirvessel
• aPortuguesesailorwhobecamecriticallyillonboardafishingshipintheSouthernOceaninDecember2004.TheCustomsandFisheriespatrolvesselOceanic Vikingwasdivertedfromitspatroltorespondtothemedicalemergency.ThesailorwastakentoFremantlewherehisconditionwasstabilisedpriortohisreturnhome
• amaxiyachtwhichhadbeendisabledinstrongwindsandwasdraggingitsanchortowardsrocksonthewesternsideofDentIslandinQueensland.ACustomsvesseltowedtheyachtwithits14passengersandthreecrew,toasafeanchorageintheleeofHamiltonIsland.
CustomsworkedwithAustraliangovernmentagenciestoundertakecapacitybuildingactivitiesinIndonesia,PapuaNewGuineaandSolomonIslands.Theseactivitiesaimto
improvetheabilityofAustralia’snearestneighbourstoeffectivelymanagetheirbordersandreformandmoderniseCustoms.
Economic impact
CustomsundertakesavarietyofactivitiesonbehalfofgovernmentthatcontributetotheeconomicperformanceofAustralia.Theseinclude:
• revenuecollectionthroughtheadministrationofduty,indirecttaxesandotherborder-relatedrevenue
• revenueprotectionthroughcomplianceactivity,whichpreventsillegalproductsfromenteringthemarket
• protectionofAustralia’soffshoreoilandgasfacilities
• anti-dumpingandcountervailingadministrationwhichsupportstheGovernment’sobjectiveofcreatingcompetitiveAustralianindustriesandstrongsustainableeconomicgrowth.Itprovides,whereappropriate,Australianmanufacturersandproducerswitharemedyagainstinjuriousdumpingbyoverseasindustries,orinjurioussubsidisationbyforeigngovernments,ofgoodsexportedtoAustralia
• administrationoftheTariffConcessionSystemwhich:
– assistsAustralianindustrytobecomemoreinternationallycompetitive
– encouragesinvestmentinefficientandsustainableindustries
– reducescoststothegeneralcommunitythroughtheremovalofimportdutieswherethereisnolocalmanufacturerofsubstitutablegoods
• contributiontoAustralia'stradefacilitationagendathroughparticipationinfreetradeagreementandWorldTradeOrganizationnegotiations,theAsiaPacificEconomicCooperationworkprogramandbilateralcustomscooperationinitiatives.TheseeffortsresultinreducedtransactioncostsforgoodsflowingbetweenAustraliaanditstradingpartners
• contributionbyCustomsoverseasposts
Sustainability 1�1
tothedevelopmentoftradebyworkingwithothercustomsadministrationsandorganisationstoestablishandimplementmeasurestosupportbordermanagementandtradefacilitation
• contributiontointernationalsupplychainsecurityinitiatives.
Global Reporting Initiative environmental indicators
TheGlobalReportingInitiativehasmorethan100optionalperformanceindicatorsforsustainability.Customshaschosentoreportagainst24whicharerelevantandforwhichdataisavailable.Thosenotreportedagainstarelistedattheendofthissection.
EM1:EnvironmentalManagementSystem(EMS)Conformance
CustomsconformswithitsEnvironmentalManagementPolicyby:
• recyclingtonercartridgesandlighttubes
• usingrecyclingbinsforpaper,aluminiumandplastic
• educatingstaffthroughsignsintoilets,kitchensandatphotocopierstoreinforceenvironmentalfriendlypractices
• addingclausestocleaningandrecyclingcontractstorequirerecycling
• usingrecycledpaperthroughoutCentralOffice.Customsisnowtriallinghigherpercentagerecycledcontentpaper.
EM2:Environmentalperformanceimprovementprocess
Customsmeasuresperformanceagainstenergytargetsandenergyauditrequirementsasrequiredbythegovernment.
TheCEOcommittedCustomstoboththeGreenhouseChallengeandtheEnvironmentalManagementPolicy.
EM3:Integrationofenvironmentwithotherbusinessmanagementsystems
Customsincorporatesenvironmentalfactorsintoitshighest-levelplanningdocuments,theCorporatePrioritiesandCorporateStrategicRiskProfile.Thesedocumentsareintegralintheplanningandperformanceframework,andformthebasisofplanningatallotherlevels.
Buildingspecificationsandleasesintegratesomeenvironmentalaspects.Customsisrequestingfivepercentnewgreen(renewable)energyinallnewmajorcontractswheretheheadleaseisheldbyCustoms.Lifecyclecostingisincorporatedintoprocurementprocesses.
EM5:Environmentalliabilities
Customsidentifiedsitesthathaveasbestosandotherhazardousmaterial.Occupationalhealthandsafetyguidelinesareinplaceforhazardoussubstancesandmanagingtheidentifiedrisks.
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EN3:Directenergyuse(transport)*
�00�–0� �00�–0� �00�–0�^
Passenger Vehicles
LPG(L) 2256 838 ..
AutomotiveDiesel(L) 37135 35607 ..
Petrol(L) 612233 595335 ..
TotalGJ 22430 21756 ..
DistanceTravelled(km) 6217853 5547908 ..
MJ/DistanceTravelled(km)/annum 3.61 3.92 ..
Other Transport
AutomotiveDiesel(L) 2795958 3660243 ..
TotalGJ 107924 141285 ..
EntityTotals
Total GJ 1�� ��� ��� �0� ..
* Thesefigurescoverleasedvehiclesonly.Ownedvehicles,vesselsandleasedaircraftarenotincluded.
^ Figureswerenotavailableatthetimeofpublication.
EN3:Directenergyuse(tenantlightandpower)
�00�–0� �00�–0� �00�–0�^
Office – Tenant Light and Power
Electricity(kWh) 10304748 10020562 ..
TotalGJ 37097 36074 ..
Occupancy(People) 3164 2948 ..
Area(m2) 78534 76801 ..
MJ/Occupancy(People)/annum 11725 12237 ..
MJ/Area(m2)/annum 472 470 ..
m2/person 24.82 26.05 ..
Office – Central Services
Electricity(kWh) 1856427 1849212 ..
NaturalGas(MJ) 9138475 8886073 ..
TotalGJ 15822 15543 ..
Area(m2) 20009 22117 ..
MJ/Area(m2)/annum 791 703 ..
Other Buildings*
Electricity(kWh) 3995800 5429769 ..
TotalGJ 14385 19547 ..
Area(m2) 66797 81198 ..
MJ/Area(m2)/annum 215 241 ..
* ThisincreaseisduetotheCustomsContainerExaminationFacilitiesinSydney,Melbourne,BrisbaneandFremantlebecomingfullyoperational.
^ Figureswerenotavailableatthetimeofpublication.
Sustainability 1��
EN8:Greenhousegasemissions
�00�–0� �00�–0� �00�–0�^
Office–TenantLightAndPower
CO2/person/annum(tonnes) 4.70 4.90 ..
CO2/m2/annum(tonnes) 0.19 0.18 ..
TotalCO2/annum(tonnes) 14 14469.70 ..
Office–CentralServices
CO2/person/annum(tonnes) 880.05 0.91 ..
CO2/m2/annum(tonnes) 0.85 0.12 ..
TotalCO2/annum(tonnes) 0.13 2670.26 ..
OtherBuildings
CO2/m2/annum(tonnes) 0.08 0.09 ..
TotalCO2/annum(tonnes) 5769.93 7840.58 ..
PassengerVehicles*
TotalCO2/annum(tonnes)—LPG 3.60 1.47 ..
TotalCO2/annum(tonnes)—Diesel 112.09 107.48 ..
TotalCO2/annum(tonnes)—Petrol 1700.17 1653.27 ..
* Thesefigurescoverleasedvehiclesonly.Ownedvehicles,vesselsandleasedaircraftarenotincluded.
^ Figureswerenotavailableatthetimeofpublication.
EN17:Initiativestouserenewableenergysourcesandincreaseenergyefficiency
• renewableenergysourcedwithinelectricitycontracts
• replace/modifylightingarrangements/fittings
• introductionofflatscreenswillsaveathirdofthecurrentmonitorenergycosts
• introductionofmulti-functiondevicesthatcombineprinter,photocopierandfacsimilefunctionsintooneunitresultinginenergysavings.
Global Reporting Initiative social indicators
HR12:Descriptionofpolicies,guidelinesandprocedurestoaddresstheneedsofindigenouspeople.Thisincludesindigenouspeopleintheworkforceandcommunitieswheretheorganisationoperatesorintendstooperate
CustomsworksinpartnershipwiththeAustralianPublicServiceCommissionandseveralotherFederalagenciestopilottheIndigenousEntryLevelRecruitmentInitiative.ThisinitiativeseekstoincreasethenumberofindigenousAustraliansandTorresStraitIslandersintheCommonwealthpublicsector.
CustomsparticipatesintheNationalIndigenousCadetshipProject.TheNationalIndigenousCadetshipProjectisaimedatimprovingtheprofessionalemploymentprospectsofAustralianindigenousandTorresStraitIslandpeoples.
Customsparticipatesinawhole-of-governmentIndigenousGraduateRecruitmentstrategyaimingtorecruitindigenousgraduatesforthe2006CustomsGraduateTraineeprogram.
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LA1:Breakdownofworkforce,wherepossible,byregion/country,status(employee/nonemployee),employmenttype(fulltime/parttime),andbyemploymentcontract(indefiniteorpermanent/fixedtermortemporary).Alsoidentifyworkforceretainedinconjunctionwithotheremployees(temporaryagencyworkersorworkersinco-employmentrelationships)segmentedbyregion/country
ACT# NSW VIC QLD SA WA TAS NT Total
Full-Time
Ongoingemployee 1025 1138 760 630 153 434 31 109 � ��0
Non-ongoing 102 8 4 8 - 2 - - 1��
Full-time total 1 1�� 1 1�� ��� ��� 1�� ��� �1 10� � �0�
Part-Time
Ongoingemployee 43 233 153 106 26 58 1 5 ���
Non-ongoing 12 6 - 3 - 2 - - ��
Part Time total �� ��� 1�� 10� �� �0 1 � ���
Casual
Non-ongoing 1 1 - - - - 1 - �
Total 1 1�� 1 ��� �1� ��� 1�� ��� �� 11� � 0��
Males 750 832 564 446 97 304 20 57 � 0�0
Females 433 554 353 301 82 192 13 57 1 ���
Total 1 1�� 1 ��� �1� ��� 1�� ��� �� 11� �0��
*IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystems).Financialstatementsreportonstaffnumbersbyfull-timeequivalent(FTE).
# ACTfiguresincludeNationalMarineUnit.
LA2:Employmentnetcreationandaverageturnover
In2004–05Customsstaffturnoverratewas6.62percent.6ThetotalnumberofpeoplerecruitedfromexternalsourcesintoCustomsfor2004–05was636.
LA4:Policyandproceduresinvolvinginformation,consultationandnegotiationwithemployeesoverchangesinthereportingorganisation’soperations(egrestructuring)
CustomsemployeeparticipationstrategymeetstheGovernment’sobjectiveforemployerstomoredirectlyengagetheiremployeesonmattersaffectingtherelationshipbetweenemployeesandemployers.CustomshasestablishedaStaffCouncilcomprisingofmanagement,staffandunionrepresentatives.StaffCouncilconsidersanddiscusseslonger-termstrategicdirectionsandemergingissuesimpactingorpotentiallyimpactingCustomsemployees.
LA6:Descriptionofformaljointhealthandsafetycommitteescomprisingmanagementandworkerrepresentativesandproportionofworkforcecoveredbyanysuchcommittees
CustomsOccupationalHealthandSafety(OH&S)PolicyoutlinestheformalworkplacearrangementstopromoteeffectivecommunicationandconsultationonOH&Smatters.AnOH&SAgreementisinplacewiththekeyunioncoveringCustomsstaffonformalconsultationarrangements.CustomsOH&SCommitteesprovideaforumforconsultationandcommunicationforallstaff.TheNationalOH&SCommitteeoverseestheeffectivenessofthenationalpolicyframeworkwhileregionalOH&ScommitteesensureCustomsOH&Smanagementsystems
6Onlyongoingstaffareincludedintheseparationrate.
Sustainability 1��
areworkingeffectivelyineachregion.DesignatedworkgroupspromoteconsultationonOH&Sissues.Healthandsafetyrepresentativesareelectedineachdesignatedworkgrouptorepresentthehealthandsafetyinterestsofallemployeeswithinthedesignatedworkgroup.
LA7:Standardinjury,lostdayandabsenteeratesandthenumberofworkrelatedfatalities(includingcontractedworkers)
OH&S Performance Indicators*
Performance measure �00�–0�* �00�–0�* �00�–0�*
Acceptedcompensationincidentclaims 243 215 173
Claimsper100Staff(headcount) 4.83 4.47 3.42
Acceptedcompensationincidentclaimswithtimeoffwork
134 115 98
Acceptedcompensationincidentclaimsresultingin5ormoredaysincapacity
71 55 64
Claimsof5or5ormoredaysincapacityper100Staff(headcount)
1.41 1.14 1.27
QualityofReturntoWorkOutcomes 87% 91% 88%
Annualabsenteeism** .. .. 12.17%
* asat31Julyofthatyear
**AnnualabsenteeismratesarecalculatedattheendoftheMarchquarter
LA10:Descriptionofequalopportunitypoliciesorprograms,aswellasmonitoringsystemstoensurecompliance
TheCustomsWorkplaceDiversityPolicydefinesworkplacediversitywithintheCustomsandAustralianPublicServicecontext.ItoutlinesCustomslegislativeobligationsinrelationtoworkplacediversityandsupportsadherencetotheseobligations.Itpromotesworkplacediversityandguidingprinciples,definesworkplacediversityrolesandresponsibilitiesforallemployees.Thepolicyisembeddedintonationalbusinessplans.
TheWorkplaceHarassmentPolicyincludesinformationonformalandinformalapproachestoresolvingcasesofharassmentandreinforcestheroleoftheAPSValuesandCodeofConduct.Itclarifiesrolesandresponsibilitiesforstaff.
Thisyear’sfocushasbeenonpromotingawarenessofthesepoliciesthroughthedeliveryoftrainingandinductionandsupportingthiswithpromotionalandsupportmaterialsandactivities.OnlinetrainingmodulescoveringAPSValuesandAPSCodeofConduct,workplacediversity,andcross-culturalawarenessaredevelopedandimplemented.Customsworkplaceharassmentreportingprocessisdeveloped,providingasafeandconfidentialmeansofreportingharassment.
LA11:Compositionofseniormanagementandcorporategovernancebodies,includingmale/femaleratioandotherindicatorsofdiversityasculturallyappropriate
Female Born Overseas* Indigenous
Number % Number % Number %
SeniorExecutiveService 15 40.5 5 13.5 - -
*NumberofstaffbornoutsideAustralia
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LA12Employeebenefitsbeyondthoselegallymandated
Customsiscommittedtoprovidingarangeofflexibleworkpracticestoassistemployeestobalancepersonalresponsibilitiesandlifestylepreferenceswithorganisationalrequirements.Benefitsthatcouldapplydependingonindividuals’employmentconditionsinclude:
Flexibleworkinghoursincludingflextime;parttimework;shiftwork;rostereddaysoff;employeefundedextraleave;maternityleave;supportingpartnerleavefornewparents;eventleave(includingspecialleave,bereavementleaveandleavewithoutpay);personal/carer’sleave;adoptionleave;externaldevelopment;studyleave;jobsharing;compassionatetransfers;accesstoanemployeeassistanceprogram;accesstofamilyroomsandgymnasiums;domesticcaresupportscheme;andhomebasedwork.
LA16:Descriptionofprogramstosupportthecontinuedemployabilityofemployeesandtomanagecareerendings
TheCustomsFrameworkforLearningandDevelopment2005-2007integratesarangeofcurrentlearninganddevelopmentpoliciesandprogramstoprovidestaffwithopportunitiestodevelop,fromtheirentryintoCustomsandthroughouttheircareer.
ThemostsignificantaspectoftheFrameworkforLearningwithinCustomsistheCustomsDevelopmentProgram.TheCustomsDevelopmentProgramidentifiesthecoreskillsrequiredofallstaffandspecialistskillsthatvarydependingonassignment.TheProgramenablesstaffandsupervisorstosatisfyindividualaswellasorganisationalneeds.Variousdevelopmentoptionsareavailable,includingformalmodulesthroughtertiaryinstitutions.Staffwhoattaintherequirednumberofcompetenciesareeligibletoreceiveanationallyrecognisedqualification.Thisassistsinentrytoothertertiarycourses.
Customshasawell-establishedapproachtoworkforceplanning,successionmanagementandcareerreassignment.In2005,asuccessionmanagementandcareerreassignmentpolicyandtoolkitwasdevelopedtoimprovetheseprocesseswithinCustoms.
SO1:Descriptionofpoliciestomanageimpactsoncommunitiesinareasaffectedbyactivities,aswellasdescriptionofprocedures/programstoaddressthisissue,includingmonitoringsystemsandresultsofmonitoring.Includeexplanationofproceduresforidentifyingandengagingindialoguewithcommunitystakeholders
CustomsRegulatoryPhilosophyensuresthatCustomsinterventionactivityistargetedandthatimpactonlegitimatetradersortravellersisminimised.Customsfostersanenvironmentofco-operationwithclientstoachieveclientcompliancewiththelawsandregulationsadministeredbyCustoms.
TheCustomsNationalConsultativeCommittee(CNCC)isanationalforumforcommunicatingpolicies,practicesandproceduresrelevanttothetradingcommunity.TheCNCCworksinpartnershipwiththetradingcommunitytoresolveperceiveddifficultiesandisthemajorforumforregularconsultationonawiderangeofmatters.
CustomsComplaintsandComplimentsManagementSystemprovidesclientswithanopportunitytoprovidefeedbackonanyaspectoftheirdealingswithus.Feedbackisusedinassessingwaysthattheservicecanbeimproved.
FrontlineisacooperativeprogrambetweenCustomsandindustrygroupsinvolvedininternationaltradeandtransport.FrontlinemembersdrawontheircommercialexpertisetoidentifysuspiciousbehaviourandassistCustoms.
Sustainability 1��
TheCustomsHotlineisacommunityparticipationprogramthatdrawsontheknowledgeandexpertiseofpeoplelivingandtravellingthroughoutAustraliatoreportpotentialoractualillegalactivities.
Customsincreaseduseoftechnologyminimisestheintrusivenatureofinspectionandexpeditestheprocesswhereinterventionisnecessary.Forexample,x-rayofcargoandbaggagecan,attimes,eliminatetheneedforphysicalexamination.
InFebruary2004,DefenceMinisterSenatorHillandJusticeandCustomsMinisterSenatorEllisonsignedIndigenousLandUseAgreementswiththepeopleofDauanandBaduIslandsintheTorresStraittoinstallHighFrequencySurfaceWaveRadarfacilities.Localcommunitieswereprovidedemploymentopportunitiesduringpreparationofthesiteandconstructionandtherewillbeongoingemploymentduringthetrialforresidentsundertakingtheroleofcaretakers.
Global Reporting Initiative economic indicators
EC3:Costofallgoods,materials,andservicespurchased
$537.345m*(thisincludesresourcesreceivedfreeofcharge$145.832m)
*thesefiguresrelatetooperatingexpenditureonlyandexcludeanycapitalacquisitions
EC5:Totalpayrollandbenefits(includingwages,pension,otherbenefits,andredundancypayments)brokendownbycountryorregionfor2004–05($m)
NewSouthWales 92.129
Victoria 57.607
Queensland 49.882
WesternAustralia 33.238
SouthAustralia 10.288
Tasmania 1.918
NorthernTerritory 7.716
Corporate,includingtheAustralianCapitalTerritory 102.756
Total ���.���m
PA11:Describeprocurementpolicyofthepublicagencyasrelatestosustainabledevelopment
Customscomplieswithrelevantgovernmentpolicycontributingtosustainabledevelopment.ThesepoliciesincludeenvironmentalpoliciesasoutlinedintheDepartmentofFinanceandAdministration,FinancialManagementGuidanceNo.10Guidance on Complying with Legislation and Government Policy in Procurement—January 2005.Customscomplieswiththesepoliciesthroughincludingmodelenvironmentalclausesinrequestfortenderdocumentationandconsidering(andpossiblyexcluding)tenderresponsesthatidentifynon-compliancewithgovernmentpolicies.
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PA12:Describeeconomic,environmental,andsocialcriteriathatapplytoexpendituresandfinancialcommitments
Customsapplieseconomic,environmentalandsocialcriteriainitsprocurementoperationsthatareoutlinedintheDepartmentofFinanceandAdministration,FinancialManagementGuidanceNo.10Guidance on Complying with Legislation and Government Policy in Procurement—
January 2005.Customscomplieswiththesepoliciesthroughevaluationcriteriainprocurementdocumentsthatconsidereconomic,environmentalandsocialcriteriasuchasoccupationalhealthandsafety,whole-of-lifecostingandozone-pollutingsubstances.
Purchasingrequirementsconsiderawiderangeofpoliciesthatmeetgovernmentrequirementsforeffectivepurchasing.Examplesinclude:
APSValues,EthicsandStandardsofConduct,ChiefExecutiveInstructions,OccupationalHealthandSafetyPolicy,FreedomofInformationActandPrivacyAct.
PA14:Percentageofthetotalvalueofgoodspurchasedthatwereregisteredwithvoluntaryenvironmentalorsociallabelsand/orcertificationprograms,brokendownbytype
Customsrequeststendererstoprovidedetailsofanycertificationstheymighthaveaspartofthetenderprocess.Aqualityaccreditationmayprovidetendererswithhighertenderscores.
Customsdoesnotreportagainstthefollowingglobalreportinginitiativeindicatorseitherbecausedataisnotavailable,ortheindicatorisnotrelevanttothesustainableperformanceofCustoms:
Environmental
EM4,EN1,EN2,EN4,EN5,EN6,EN7,EN9,EN10,EN11,EN12,EN13,EN14,EN15,EN16,EN18,EN19,EN20,EN21,EN22,EN23,EN24,EN25,EN26,EN27,EN28,EN29,EN30,EN31,EN32,EN33,EN34,EN35
Social
HR1,HR2,HR3,HR4,HR5,HR6,HR7,HR8,HR9,HR10,HR11,HR13,HR14,LA3,LA5,LA8,LA9,LA13,LA14,LA15,LA17,PR1,PR2,PR3,PR4,PR5,PR6,PR7,PR8,PR9,PR10,PR11,SO2,SO3,SO4,SO5,SO6,SO7
Economic
EC1,EC2,EC4,EC6,EC7,EC8,EC9,EC10,EC11,EC12,EC13,PA8,PA9,PA10,PA13
External scrutiny
Freedom of information
In2004–05,40requestsweremadetoCustomsundersection15oftheFreedom of Information Act 1982(FOIAct).
ThecosttoCustomsofadministeringrequestsishighandapplicablefeesandcharges,unchangedsince1982,donotrecoveractualcosts.Thesizeofrequestsincreasedsignificantly.Largerequestsplacesignificantpressureontheorganisationandcanresultinprocessingofapplicationsbeingdelayed.
Section8oftheFOIActrequiresCustomstopublishdetailsaboutcertainagencyfunctionsanddocuments.Thisincludesdetailsaboutthewaytheagencyisorganised,functions,decision-makingpowers,arrangementsforpublicinvolvementintheworkoftheagency,documentsheldbytheagencyandthewayinwhichmembersofthepublicmayobtainaccesstothesedocuments.ThisinformationisatAppendixB.
Figure ��: Requests made under the FOI Act
�00�–0� �00�–0� �00�–0�
Requests received*
Section15 41** 42** 40**
Section54(internalreview) 4 4 7
Section55(AATreview) 1 2 3
Total 46 48 50
Decisions on section 1� requests
Accessgrantedinfull 15 12 9
Accessgrantedinpart 22 15 14
Accessrefused 4 3 6
Requeststransferred 1 0 0
Requestswithdrawn 5 8 6
Time taken to process section 1� requests
0–30days 26 19 13
31–60days 11 10 6
61–90days 3 1 6
90plusdays 1 0 3
Fees and charges ($) collected for section 1� and section �� requests
Totalapplicationfeescollected 1290 1071 1390
Totalchargesnotified 7531 2046 4341
Totalchargescollected 3405 1066 3177
Outstandingchargesat30June 4126 980 424
* Asection15requestisarequestforaccesstoinformation.Asection54requestisarequestforadecisionaboutasection15requesttobereviewedbyCustoms(internalreview).Asection55requestisarequestforadecisionaboutasection15requesttobereviewedbytheAAT(externalreview).FurtherinformationontheserequestsisavailableintheFreedom of Information Act 1982.
** Includesrequestscarriedoverfromthepreviousfinancialyearandrequestsstillbeingprocessedattheendofthefinancialyear.
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Ministerial representations
TheMinisterforJusticeandCustomsreceived1915itemsofCustomsrelatedcorrespondence.CustomsprovidedtheMinisterwithadviceandrecommendationsonthe1557itemsthatrequiredaresponse.Majorissueswere:
• applicationsforpermitstoimportgoods
• informationonimportrequirements
• thepaymentofCustomsdutyandgoodsandservicestaxonimportedgoods
• anti-dumpinginvestigations
• processingofpassengersatairports
• changestopassengerconcessions
• coastalsurveillancematters
• changestolegislationandregulationsadministeredbyCustoms.
CustomsalsoprovidedtheMinisterwith455briefingsonissuesincluding:
• initiatinganti-dumpinginvestigations
• significantseizuresofprohibitedimportssuchasillicitdrugs
• proposedchangestolegislationandregulationsadministeredbyCustoms
• othersignificantpolicyandproceduralmatters.
Privacy matters
TherewasonecomplainttothePrivacyCommissioneragainstCustomsin2004–05.TheissuewasCustomsfailuretoprovideaccesstopersonalinformationheldaboutanindividual.Thecomplaintwasclosedundersection41(1)(f)ofthePrivacy Act 1988onthegroundsthattheFreedomofInformationActwasamoreappropriatemannerfortheindividualtoaccesstheinformationCustomsheld.
ThePrivacyCommissioneralsoconductedtwoauditsofCustoms.ThefirstauditrelatedtothecollectionandmanagementofPassengerNameRecordsbythePassengerAnalysisUnitatCustoms.ThesecondauditwasajointauditofCustomsandtheDepartmentofForeignAffairsandTrade.TheaudittestedtheinformationflowsbetweentheDepartmentofForeignAffairsandTrade’sbiometricpassporttrialandCustomsuseoftheprototypebiometricpassportsintheSmartGatefacial-recognitiontrial.
Whilebothreportsmaderecommendationstolimitprivacyrisk,nobreachesofthePrivacyActwerefound.
Commonwealth Ombudsman matters
Figure61outlinescomplaintsandissuesdealtwithbytheCommonwealthOmbudsmanin2004–05.Customswasfoundtobeatfaultinonecase.
Figure �0: Ministerial correspondence and briefings
�00�–0� �00�–0� �00�–0�
MinisterialcorrespondencereceivedonCustomsissues 1413 1669 1915
MinisterialbriefingsprovidedbyCustoms 397 510 455
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Figure �1: Complaints and issues raised with the Commonwealth Ombudsman
�00�–0� �00�–0� �00�–0�
Complaintsraised 70 73 84
Complaintsfinalised 76 73 85
Issuesinvestigated
Agencydefect 2 3 1
Noagencydefect 10 6 9
Issueswithdrawnorlapsed 2 4 1
Ombudsmanexerciseddiscretionnottoinvestigate 62 70 65
Issuesfinalised 82 83 92
Note:Morethanoneissuemightberaisedinacomplaint.Someissuesarenotcompletedwithintheyearduringwhichtheyareraised.
The Ministerial and Parliamentary team, from back row, left to right: Brad Dornan, Liz White, Susan Hyde, John Stephenson,
Jason Fedderson, Amanda Peters, Kerry Uttley, Nina Brinckley and Bill Eversham.
Customs teams – preparing for a new government
When a federal election is called, small teams of public servants are formed in Commonwealth agencies to work behind the scenes on little known but critical work for continuity of Australia’s government.
Whenlastyear’sfederalelectionwascalled,theMinisterialandParliamentarysectionwithinCustomsformedaprojectteamtoundertakearangeofduties,includingsomerequiredbytheDepartmentofthePrimeMinisterandCabinet.
TheElectionProjectteamprovidedadvicetoCustomsstaffonthelong-establishedcaretakerconvention,thespecialcontinuityofgovernmentarrangementsthatapplywhenan
electioniscalleduntilanewgovernmentisformed.Theteamreviewedandmaintainedaregisterofallelectioncommitmentsandpoliciesrelatingtotheagency.Italsoco-ordinatedabriefingdocumentfortheincominggovernmentandprepareddetailedbriefingsfortheincomingMinisterandOppositionShadowMinister.
TheteamhelpedtoensurethatCustomsstaffwereawarethattheapoliticalnatureofthePublicServiceneededtobemaintainedduringtheelectioncampaign.TheteamensuredthatadetailedbriefingonCustomsoperationswasavailabletotheincominggovernment—nomatterwhichpoliticalpartyformedthatgovernment.
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Judicial decisions and decisions of administrative tribunals
ParksHoldingstradingasGladstoneChemicals(FullFederalCourt)
ThiscasewasanappealbyParksHoldingsthatimportedpetroleumproductdescribedas‘gasoil’wasclassifiableasdieselfuelintheCustoms Tariff Act 1995ascontendedbyCustoms.
AkeyissuewaswhetherthedemandfordutypayablewasvalidinviewoftheCustomsofficerissuingthosedemandsnothavingadelegationtomakethemunders165oftheCustomsAct.Rather,hehadadelegationunders165ofthe Excise Act 1901.
TheCourtatfirstheldthatitcouldnotremedythewrittendelegationwhichcontainedaclericalerror.However,asParksHoldingshadactedfraudulently(bywhiting-outthedescriptionof‘gasoil’fromitssupplier’sinvoice)thedemandsfordutydidnothavetocomplywiths165oftheCustomsAct.InsteadtheCourtheldthatthedemandswerevalidbecausetheCustomsofficerwasaCollectorwithinthemeaningofthatActandwasthereforeentitledtomakesuchdemandsunders153.ParksHoldingsappealedonlythataspectoftheCourt’sdecisiontotheFullBenchoftheFederalCourt.
TheFullCourtupheldthevalidityofthedemandasprovidedforunders167oftheCustomsActand,therefore,theTribunal’sjurisdictionunders273GA(2).Theword‘demanded’ins167(1)doesnotrefertoademandexpresslyauthorisedbyaparticularsectionoftheCustomsAct.Further,ifanadministrativedecisionmakerpurportstoactunderoneheadofpowerwhichdoesnotexist,butthereisanotherheadofpoweravailablewhichcanbesatisfied,thedecisionisvaliddespitepurportedrelianceontheunavailableheadofpower.
TheFullCourtaffirmedtheHighCourt’sobservationinMalika Holdings Pty Ltdv Stretton(2001)204CLR290thats165oftheCustomsActauthorisesCustomstomakeademandforduty
shortleviedasaresultofitsmistakeasopposedtobeingmisinformedbytheownerastotheproperdutypayable.
Inglewood(FullFederalCourt)
ThiscaseconcernedthedecisionsmadebytheCEOofCustomsandtheTradeMeasuresReviewOfficer(TMRO)toterminateaninvestigationintotheallegedsubsidisationofoliveoilexportedtoAustraliafromGreece,ItalyandSpain.CustomshadconductedtheinvestigationinresponsetoanapplicationlodgedbyInglewood.TheCEOterminatedtheinvestigations,afterapproximatelyfivemonths,intotheallegedsubsidisationanddumpingoftheoliveoil.TheTMROaffirmedthatdecision.InglewoodthenappealedthedecisiontotheFederalCourtandsubsequentlytheFullBenchoftheFederalCourt.
TheFederalCourtheldthats269TDA(2)(b)(i)oftheCustomsActpermittedtheCEOtoterminatetheinvestigationifsatisfiedthattherewasnocountervailablesubsidisationofthegoods.TheCEOwasnotrequiredtoreferanypreliminaryissuetotheMinistertoreachthatstateofsatisfaction.
TheFederalCourtalsoheldthattheCEOerredinexpressingthetestofs269TDA(2)(b)(i)inthenegative—thathewasnotsatisfiedthatacountervailablesubsidyhadbeenreceivedinrespectofthegoods—ratherthanintheaffirmative—thathewassatisfiedthatacountervailablesubsidyhadnotbeenreceivedinrespectofthosegoods.However,theTMROdidnotreplicatetheerror.TheFullCourtaffirmedthis.
TheFederalCourtalsoaffirmedtheCEOandTMRO’sfindingthatasubsidywasnotreceived.However,theFullCourtheld,morefirmlythantheFederalCourt,thattheCEOerredinaddressingthetestofsubsidiespaidtotheolivegrowersasonewhichconferredabenefitontheexporter—ratherthaninrelationtotheexportedgoods.BothCourtsfoundthattheTMRO,whosedecisionsupersedestheCEO’sdecision,didnotmakethesameerror.TheFullCourtdismissedInglewood’sappeal.
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Holden(FullFederalCourt)
ThiscasewasanappealtotheFederalCourtbyHoldenfromadecisionoftheAdministrativeAppealsTribunalthatHoldenwasnoteligibletoclaimdrawbackofcreditsissuedtoitunderthenowdefunctExportFacilitationScheme(EFS).ThecreditshadbeenusedtooffsetCustomsdutyliabilityonimportedmotorvehiclesandcomponentsthatweresubsequentlyexported.
TheEFSwasanadministrativearrangementwhichhadsomestatutoryrecognitioninItem41AofSchedule4tothe Customs Tariff Act 1995.TheissuefortheCourtwaswhetherEFScreditscouldbetreatedasdutyforthepurposesofclaimingdrawback.
TheCourtheldthattheuseofEFScreditsdidnotamounttoapaymentofduty.TheCourtagreedwiththeTribunal’sreadingofItem41A.ThedutypayablewhenEFScreditsareemployedistheamountremainingaftertheEFScreditsareusedtoreducetheamountofdutyratherthantheamountbeforethereduction.Regulation136Bofthe Customs Regulations 1926preventsanimporterfromclaimingdrawbackofimportdutytotheextentthatany‘rebate’wasallowedonthatduty.
TheEFShasnowbeenreplacedbytheAutomotiveCompetitivenessandInvestmentScheme.Creditsissuedunderthelatterschemecanbecountedasdutyfordrawbackpurposes(sees168(2)oftheCustomsAct).
Eberle(FederalCourt)
ThiscasewasanappealtotheFederalCourtbyMrEberlefromadecisionoftheAdministrativeAppealsTribunalthatthetransactionvaluationmethod(orpurchasepriceattimeofcontractofsale)insteadofthefall-backvaluationmethod(orvehicle’svalueinAustraliaattimeofimportation)appliedindeterminingthecustomsvalueofanimportedusedmotorvehicle.ThatvehiclehadbeenremotelypurchasedfromtheUnitedStates,storedandnotusedpriortoitsimportationintoAustraliasomethreeyearslater.
Theapplicationofthetransactionvaluemethoddependedonwhetherthecircumstancesofthepurchaseofthevehiclecamewithinthedefinitionof‘importsalestransaction’unders154(1)oftheCustomsAct.
TheCourtfoundthatthepurchaseofthevehiclewasnotanimportsalestransaction.Forsuchatransactiontoexist,thecontractofsalefromitstermsorsurroundingcircumstancesmustbeacontractforboththeimportationintoAustraliaandexportationfromtheUnitedStatesofthevehicle.MrEberle’spurchaseofthevehiclewasandremainedadomesticsale,irrespectiveofhisintentiontoultimatelyimportthevehicle.
Auditor General’s reports
TheAustralianNationalAuditOffice(ANAO)auditedthefinancialstatementsofCustomsinaccordancewithitsannualfinancialstatementsreviewofCommonwealthentities.
TheANAOconductedtwoperformanceauditsspecifictoCustoms:
• ANAO Report No.16 2004–05—Container Examination Facilities
• ANAO Report No.41 2004–05—Administration of Security Incidents, including the Conduct of Security Investigations
TheANAOispreparingfinalreportsforthefollowingreviewsthatinvolvedCustoms:
• AdvancePassengerProcessing
• InternetSecurity—Follow-up
• SenateOrderforDepartmentalandAgencyContracts(2004CalendarYear)
• CounterterrorismCoordinationArrangements
• CustomsComplianceAssuranceStrategyforInternationalCargo
• ManagementofNetAppropriationAgreements.
OtherreportsrelevanttoCustomsreleasedin2004–05included:
• ANAO Report No.3 2004–05—Management of Internal Audit in Commonwealth Organisations
• ANAO Report No.4 2004–05—Management of Customer Debt
• ANAO Report No.6 2004–05—Performance Management in the Australian Public Service
• ANAO Report No. 10 2004–05—The Senate Order for Departmental and Agency Contracts (Calendar Year 2003 Compliance)
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• ANAO Report No. 12 2004–05—Research Project Management Follow-Up Audit
• ANAOReportNo.132004–05—SuperannuationPaymentsforIndependentContractorsworkingfortheAustralianGovernment
• ANAO Report No. 15 2004–05—Financial Management of Special Appropriations
• ANAO Report No. 21 2004–05—Audits of the Financial Statements of Australian Government Entities for the Period Ending 30 June 2004
• ANAO Report No. 22 2004–05—Investment in Public Funds
• ANAO Report No. 26 2004–05—Measuring the Efficiency and Effectiveness of E-Government
• ANAO Report No. 37 2004–05—Management of Business Support Service Contracts
• ANAO Report No. 40 2004–05—The Edge Project
• ANAO Report No. 44 2004–05—Defence’s Management of Long-term Property Leases
• ANAO Report No. 46 2004–05—Management of Trust Monies in CAC Act entities
• ANAO Report No. 49 2004–05—Administration of Fringe Benefits Tax
• ANAO Report No. 52 2004–05—Legal Service Arrangements in the Australian Public Service
• ANAO Report No. 55 2004–05—Workforce Planning
• ANAO Report No. 56 2004–05—Interim Phase of the Audit of Financial Statements of General Government Sector Entities for the Year ending 30 June 2005
• ANAOReportNo.572004–05—PurchasingProceduresandPractices
TheCustomsAuditCommitteemonitoredtheimplementationoftherecommendationsarisingfromtheCustomsaudits.ThecommitteealsosoughtcommentsfromlineareasonrecommendationsthatmighthaverelevancetoCustoms.TheseresponseswerecirculatedtotheCustomsExecutive.
TheANAOalsoissuedBetterPracticeGuidesfor Fraud Control in Australian Government Agencies,andPublic Sector Audit Committees.CustomsaddressedsomeofthesuggestionsandinformationintheseguidesandincorporatedthemintotheFraudControlPlan,andtheoperationsoftheAuditCommittee.
FurtherinformationonANAOreportsisavailableontheANAOInternetsiteatwww.anao.gov.au.
Parliamentary Committee reports
JointCommitteeofPublicAccountsandAudit
Customsprovidedsubmissionstothe:
• ReviewofAuditorGeneral’sReport(Audit Report No 16 (2004–05) – Container Examination Facilities)
• InquiryintodevelopmentsinaviationsecuritysincetheCommittee’sJune2004Report 400: Review of Aviation Security in Australia.
JointStandingCommitteeonForeignAffairs,DefenceandTrade
CustomsprovidedasubmissiontotheCommittee’sinquiryintoAustralia’srelationshipwiththeRepublicofKorea,andthedevelopmentsontheKoreanPeninsula.
SenateEconomicsLegislationCommittee
TheCommitteeinquiredintoCustoms Tariff Amendment (Textile, Clothing and Footwear Post 2005 Arrangements) Bill 2004.TheCommitteereportedtotheSenateon30August2004.
SenateForeignAffairs,DefenceandTradeCommittee
CustomsprovidedasubmissiontotheCommittee’sinquiryintoAustralia’srelationshipwithChina.TheCommitteeisduetoreporttotheSenateby15September2005.
SenateStandingCommitteefortheScrutinyofBills
CustomsprovidedasubmissionandappearedattheCommittee’sinquiryintoentry,searchandseizureprovisionsinCommonwealthlegislation.TheCommitteeisinquiringintotheGovernment’s
Externalscrutiny 1��
responsetoitspreviousreportonentryandsearchprovisions,tabledin2000,andprovisionsmadesincethereportwastabled.
SenateLegalandConstitutionalCommittee
CustomsappearedbeforetwoSenateLegalandConstitutionalLegislationCommitteeEstimateshearings:
• AdditionalEstimatesHearings,14February2005
• BudgetEstimatesHearings,24May2005.
Customsansweredatotalof111QuestionsonNoticefromthesehearings,(68fromFebruary2005and43fromMay2005).Customsalsoanswered154QuestiononNoticereceivedinplaceoftheNovember2004SupplementaryBudgetEstimateshearings,whichincludes20responsestoportfolioQuestionsonNotice.
HouseofRepresentativesStandingCommitteeonLegalandConstitutionalAffairs—Avermentprovisions
On2April2003,theCommitteeannouncedaninquiryintoavermentprovisionsinAustralianCustomslegislation.The2002–03CustomsAnnualReport(seepages32and119)andthe2003–04CustomsAnnualReport(seepages116and117)containinformationconcerningthisinquiry.
TheHouseofRepresentativesStandingCommitteeonLegalandConstitutionalAffairsCommitteetableditsreportinParliamenton31May2004,Modern-day usage of averments in Customs prosecutions.Thereportcontainedsixrecommendations.
TheCommittee’srecommendationsconcerningamendmentstoCustomslegislationaresimilartocommentsbytheAustralianLawReformCommissioninitsreportNo.95Principled Regulation: Federal Civil and Administrative Penalties in Australiatabled19March2003.Recommendations13-1,13-2and13-3inthisreportaddressissuesspecifictoCustomslegislation,includingrecommendationsonavermentsandcharacterisationofCustomsprosecutionsandarereferredtounderAustralianLawReformCommissionreportonFederalcivilandadministrativepenaltiesonpage83.TheGovernmentresponseispending.
FurtherinformationisontheParliamentHousewebsiteathttp://www.aph.gov.au/house/committee/laca/averment/report.htm.
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Section �Financialstatements
Photo:CentralOffice,Canberra.
1�� AustralianCustomsServiceAnnualReport2004–05
Overview of financial statements
Audited financial statements
ThefinancialstatementsincorporatetheagencyfinancialstatementsforCustomsandtheschedulesofadministereditemsrelatingtoitemsadministeredbyCustoms.
AcomprehensivesetofnotestothefinancialstatementsisprovidedasrequiredbytheFinanceMinister’sOrdersincludingnote1,thesummaryofthesignificantaccountingpoliciesonwhichthefinancialstatementshavebeenprepared.Note2tothefinancialstatementsprovidesinformationontheadoptionofAustralianequivalentstointernationalfinancialreportingstandardswhichapplyfromthe2005–06financialyear.
ThefinancialstatementsincludeastatementbytheCEOandChiefFinancialOfficerthatfinancialrecordshavebeenproperlymaintainedandthattheygiveatrueandfairviewofthemattersrequiredbytheFinanceMinister’sOrders.TheindependentauditreportoftheAuditorGeneralonthefinancialstatementshasbeenincludedwithinthefinancialstatements.
Agency statements
In2004–05,Customsreportedanetoperatingsurplusof$37.1mascomparedwithanetoperatingsurplusof$6.1min2003–04.
Totalrevenuefor2004–05was$962.2m(upfrom$806.7min2003–04).ThisincreaseisprimarilyduetoadditionalfundingprovidedfornewmeasuresandtheoutcomesoftheReviewofCustomsFinancialHealthasannouncedinthe2004–05BudgetandthePortfolioAdditionalEstimatesStatements.
Totalcostsfor2004–05were$925.1m($800.6min2003–04).ThisincreaseisprimarilyduetoincreasesinemployeecostsrelatedtoincreasesundertheCertifiedAgreementandadditionalexpenditureassociatedwithnewmeasures.
TheagencystatementoffinancialpositionrepresentsthefinancialpositionofCustomsasat30June2005andtakesintoaccountmovementsinassets,liabilitiesandequity.
Totalequityhasincreasedto$276.6mcomparedwith$198.1min2004.Thisincreaserelatesprincipallytothereportedsurplusfortheyear,thecarryforwardofexpenditureassociatedwiththeCargoManagementReengineeringprojectandcapitalinjectionsassociatedwithnewinitiativesfundedbytheGovernment.
Administered schedule
Ascheduleofadministereditemsispresentedwithinthefinancialstatementsdisclosingallrevenues,expenses,assets,liabilities,cashflow,commitments,contingentassetsandliabilities.
Customsdutycollectionsin2004–05totalled$5.6b($5.6bin2003–04).TheimpactoftheimplementationofgeneraltariffreductionsandthecommencementoftheUnitedStatesandThaiFreeTradeAgreementsfrom1January2005wasoffsetbythecontinuationofastrongeconomyandlowinterestrateenvironment.
Othertaxes,feesandfinesarepredominantlymadeupofPassengerMovementChargecollectionsof$363.8m($329.8min2003–04)andimportprocessingchargesof$128.6m($119.7min2003–04).ThesignificantincreaseinthePassengerMovementChargereflectsa12percentincreaseinpassengermovementintoandoutofAustraliaduringtheyear.Similarlytheincreaseintheimportprocessingchargerevenuereflectsacontinuationofstrongeconomicconditions.
Totaladministeredexpenses$535.7m($609.9min2003–04)reducedduetothereductionofdutyoffsetsassociatedwiththeAutomatedCompetitivenessandInvestmentSchemeduringtheyearandalsoasadditionalprovisioningforcollectablessuchaspenalties,finesandfeeshadbeenmadeinthe2003–04financialyear.
Totalnetadministeredfinancialassetsof$65.1m($54.6min2003–04)principallyconsistsofrevenuesreceivableandliabilitiesassociatedwithfundsheldinspecialaccounts.
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FinancialStatements 1�1
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AUSTRALIANCUSTOMSSERVICE–STATEMENTBYTHECHIEFEXECUTIVEANDCHIEFFINANCEOFFICER
1�� AustralianCustomsServiceAnnualReport2004–05
AUSTRALIANCUSTOMSSERVICE–STATEMENTOFFINANCIALPERFORMANCE fortheyearended30June2005
�00� 2004
Notes $’000 $’000
Revenues from ordinary activities
RevenuesfromGovernment 4A ���,��� 591,554
Goodsandservices 4B ��,1�� 77,351
Interest 4C 1 -
Revenuefromsaleofassets 4D ��� 264
Otherrevenues 4E 1��,��� 137,572
Revenues from ordinary activities ���,�1� 806,741
Expenses from ordinary activities (excluding borrowing costs expense)
Employees 5A ���,��� 320,524
Suppliers 5B ���,��� 447,106
Depreciationandamortisation 5C ��,��0 28,198
Write-downandimpairmentofassets 5D ��� 2,919
Valueofassetssold 4D ��� 314
Otherexpenses 5E ��1 988
Expenses from ordinary activities (excluding borrowing cost expense)
���,��� 800,049
Borrowing costs expense 6 ��� 557
Net surplus/(deficit) from ordinary activities ��,0�� 6,135
Netcredit/(debit)toassetrevaluationreserve 12 �1 (2,148)
DecreaseinaccumulatedresultsoninitialapplicationoffairvalueunderAASB1041Revaluation of Non-current Assets 12 - (139)
Total Revenues, Expenses and Valuation Adjustments Attributable to Member of the Parent Entity and Recognised Directly in Equity �1 (2,287)
Total Changes in Equity other than those resulting from transactions with the Australian Government as Owner ��,11� 3,848
Note:DuetospecificdisclosurerequirementsregardingResourcesReceivedFreeofCharge(RRFOC)fromrelatedentities,RRFOCreceivedfromDefencehasbeenclassifiedas‘Otherrevenues’.Previously,thiswasclassifiedunder‘RevenuesfromGovernment’.Figuresin2003–04(designatedinItalics)havebeenre-classifiedforamoremeaningfulcomparisonwithfiguresin2004–05.
Theabovestatementshouldbereadinconjunctionwiththeaccompanyingnotes.
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AUSTRALIANCUSTOMSSERVICE–STATEMENTOFFINANCIALPOSITIONasat30June2005
�00� 2004
ASSETS Notes $’000 $’000
Financial Assets
Cash 7A 1�,0�� 24,097
Receivables 7B ��,0�1 23,176
Total Financial Assets 111,0�� 47,273
Non-Financial Assets
Landandbuildings 8A,C ��,��0 40,881
Infrastructure,plantandequipment 8B,C �0,��� 81,692
Intangibles 8D 1��,��1 163,156
Inventories 8E 1,0�0 1,205
Othernon-financialassets 8F �,1�� 10,624
Total Non-Financial Assets ���,��� 297,558
Total Assets ���,�0� 344,831
LIABILITIES
Interest Bearing Liabilities
Leases 9A �,��� 7,928
Total Interest Bearing Liabilities �,��� 7,928
Provisions
Employees 10 10�,��0 109,262
Total Provisions 10�,��0 109,262
Payables
Suppliers 11A ��,��� 25,347
OtherPayables 11B �,0�� 4,182
Total Payables ��,��� 29,529
Total Liabilities 1��,�0� 146,719
NET ASSETS ���,�0� 198,112
EQUITY
Contributedequity 12 �00,�0� 159,525
Reserves 12 1�,��0 15,399
Retainedsurplusesoraccumulateddeficits 12 �0,��0 23,188
TOTAL EQUITY ���,�0� 198,112
Current Assets 11�,��0 57,897
Non-current Assets �1�,0�� 286,934
Current Liabilities ��,1�� 75,606
Non-current Liabilities ��,��� 71,113
Theabovestatementshouldbereadinconjunctionwiththeaccompanyingnotes.
1�� AustralianCustomsServiceAnnualReport2004–05
AUSTRALIANCUSTOMSSERVICE–STATEMENTOFCASHFLOWSfortheyearended30June2005
�00� 2004
Notes $’000 $’000
OPERATING ACTIVITIES
Cash Received
Goodsandservices �1,��1 79,961
Appropriations �1�,��� 596,554
Interest 1 -
NetGSTreceivedfromATO ��,��� 33,887
Other 1�� 25
Total Cash Received �1�,��� 710,427
Cash Used
Employees ���,��� 312,010
Suppliers �0�,1�� 342,211
Borrowingcosts ��� 557
Other ��1 40
Total Cash Used ���,1�� 654,818
Net Cash From or (Used by) Operating Activities 13 ��,1�� 55,609
INVESTING ACTIVITIES
Cash Received
Proceedsfromsalesofproperty,plantandequipment ��� 264
Total Cash Received ��� 264
Cash Used
Purchaseofproperty,plantandequipment �0,��� 23,519
Purchaseofintangibles ��,�0� 67,635
Total Cash Used ��,��� 91,154
Net Cash From or (Used by) Investing Activities (��,���) (90,890)
FINANCING ACTIVITIES
Cash Received
Appropriations–Contributedequity 1�,�1� 52,436
Total Cash Received 1�,�1� 52,436
Cash Used
Repaymentofdebt �,1�� 4,842
Total Cash Used �,1�� 4,842
Net Cash From or (Used by) Financing Activities 1�,��1 47,594
NetIncreaseor(Decrease)inCashHeld (�,0��) 12,313
Cashatthebeginningofthereportingperiod ��,0�� 11,784
Cash at the End of the Reporting Period 7A 1�,0�� 24,097
Theabovestatementshouldbereadinconjunctionwiththeaccompanyingnotes.
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AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFCOMMITMENTSasat30June2005
�00� 2004
$’000 $’000
BY TYPE
Capital Commitments
Infrastructure,plantandequipment1 10,��� 21,388
Total Capital Commitments 10,��� 21,388
Other Commitments
Operatingleases2 ���,1�� 503,957
OtherServices ��,��� 37,598
Total Other Commitments ���,��0 541,555
Commitments Receivable (11�,�10) (91,106)
Net Commitments by Type ���,�0� 471,837
BY MATURITY
Capital Commitments
Oneyearorless �,��1 16,629
Fromonetofiveyears �,0�� 4,759
Overfiveyears - -
Total Capital Commitments 10,��� 21,388
Operating Lease Commitments
Oneyearorless ���,��0 198,329
Fromonetofiveyears ���,1�� 263,440
Overfiveyears �0,�0� 42,188
Total Operating Lease Commitments ���,1�� 503,957
Other Services Commitments
Oneyearorless ��,��� 29,608
Fromonetofiveyears �,�1� 7,990
Overfiveyears - -
Total Other Servcies Commitments ��,��� 37,598
Commitments Receivable (11�,�10) (91,106)
Net Commitments by Maturity ���,�0� 471,837
1�� AustralianCustomsServiceAnnualReport2004–05
AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFCOMMITMENTSasat30June2005
NB:CommitmentsareGSTinclusivewhererelevant.
1 Plant&equipmentcommitmentsareprimarilycontractsforinfrastructure,plantandequipment,intangiblesandassetsunderconstruction.
2 Operatingleaseandothercontractsincludedareeffectivelynon-cancellableandcomprise:
Nature of Lease General description of leasing or contract arrangement
Leaseforofficeaccommodation
Most,butnotall,leasepaymentsaresubjecttobiannualadjustmentstocurrentmarketvalues.SomeleasepaymentsaresubjecttoupwardmovementsinlinewiththeConsumerPriceIndex.Theinitialperiodsofofficeaccommodationleasesarestillcurrentandeachmayberenewedforupto5yearsattheagency’soption.
Other MostContractorsorContractsaresubjecttoannualCPIadjustments.ThisclassofCommitmentsincludes,amongothers,CEFlogisticalcosts,ITrelatedleasessuchasserversanddesktopcomputers,coastalsurveillancerelatedleasessuchasaircraftandvessels,vehicleandothertransportrelatedleases.
Theabovescheduleshouldbereadinconjunctionwiththeaccompanyingnotes.
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AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFCONTINGENCIESasat30June2005
Contingent liabilities
Guarantees Claims for
damages/costs Total
�00� �00� �00� �00� �00� �00�
$’000 $’000 $’000 $’000 $’000 $’000
Balancefrompreviousperiod - - 514 - �1� -
New - - 10 - 10 -
Re-measurement - - - 514 - 514
Liabilitiescrystallised - - - - - -
Obligationsexpired - - (500) - (�00) -
Total Contingent Liabilities - - 24 514 �� 514
Detailsofeachclassofcontingentliabilitiesandassets,includingthosenotincludedabovebecausetheycannotbequantifiedorareconsideredremote,aredisclosedinNote 1�: Contingent Liabilities and Assets
Theabovescheduleshouldbereadinconjunctionwiththeaccompanyingnotes.
1�� AustralianCustomsServiceAnnualReport2004–05
AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFADMINISTEREDITEMS
�00� 2004
Notes $’000 $’000
Revenues Administered on Behalf of Government
for the year ended 30 June 2005
Taxation revenue
Customsduty 19 �,��0,�0� 5,654,751
Othertaxes 19 ���,�01 449,486
Total taxation revenue �,0��,�0� 6,104,237
Non-taxation revenue
Interest 19 �1� 39
Othersourcesofnon-taxationrevenue 19 11,0�� 7,511
Total non-taxation revenue 11,��1 7,550
Total Revenues Administered on Behalf of Government �,0��,��� 6,111,787
Expenses Administered on Behalf of Government
for the year ended 30 June 2005
Doubtfulandbaddebts20 �,��� 22,875
ACIScreditsappliedonduty 20 ��1,0�� 586,861
Otherexpenses 20 ��� 248
Total Expenses Administered on Behalf of Government ���,��� 609,984
Thisscheduleshouldbereadinconjunctionwiththeaccompanyingnotes.
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AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFADMINISTEREDITEMS(continued)
�00� 2004
Notes $’000 $’000
Assets Administered on Behalf of Government
as at 30 June 2005
Financial assets
Cash 21 �,��1 3,074
Receivables 21 ��,��� 71,321
Total financial assets �0,��� 74,395
Non-financial assets
Inventories 21 �� 163
Total non-financial assets �� 163
Total Assets Administered on Behalf of Government �0,��� 74,558
Liabilities Administered on Behalf of Government
as at 30 June 2005
Liabilities
Otherinterestbearingliabilities 22 �,��� 2,785
Payables 22 �,��� 4,454
SpecialAccounts 22 �,�1� 12,683
Total Liabilities Administered on Behalf of Government 1�,��� 19,922
Net Assets Administered on Behalf of Government ��,1�0 54,636
Current Assets �0,��� 74,558
Non-current Assets - -
Current Liabilities 1�,��� 19,922
Non-current Liabilities - -
Thisscheduleshouldbereadinconjunctionwiththeaccompanyingnotes.
1�0 AustralianCustomsServiceAnnualReport2004–05
AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFADMINISTEREDITEMS(continued)
�00� 2004
Notes $’000 $’000
Administered Cash Flows
for the year ended 30 June 2005
OPERATING ACTIVITIES
Cash Received
Customsduty �,���,�1� 5,306,258
Othertaxes ���,��� 433,972
Interest �1� 39
ReturnofTouristRefundSchemeDrawings* ��� 753
Othernon-taxrevenue 1,��� 2,282
Total Cash Received �,���,��� 5,743,304
Cash Used
Suppliers ��� 248
Refundsofdutyandothertaxes �0�,��� 235,902
RefundsofGST(onimports),WET,LCT&SalesTax* �,��� 9,677
TouristRefundScheme* �0,��� 47,236
SpecialAccounts** �,�0� 561
Total Cash Used ���,��� 293,624
Net Cash from or (Used in) Operating Activities �,���,10� 5,449,680
Net Increase or (Decrease) in Cash Held �,���,10� 5,449,680
Cashatthebeginningofthereportingperiod �,0�� 2,697
CashfromOfficialPublicAccountfor:
Appropriations ��1,��� 280,111
RefundsofGST(onimports),WET,LCT&SalesTax* �,��� 9,677
TouristRefundScheme* �0,��� 47,236
SpecialAccounts ��,��� 27,066
ReclassificationofSpecialAccounts** (��) 12,095
��0,��� 376,185
CashtoOfficialPublicAccountfor:
AdministeredReceipts (�,���,���) (5,786,170)
ReturnofTouristRefundSchemeDrawings* (���) (753)
SpecialAccounts (��,���) (38,565)
(�,���,���) (5,825,488)
Cash at End of Reporting Period 21 �,��1 3,074
*TheAustralianTaxationOfficeistheresponsibleentityfortheseappropriationsandthesubsequentreturns.Asanewclassificationonthisschedule,figuresin2003–04(designatedinitalics)havebeenclassifiedforamoremeaningfulcomparison.
**CustomshasreclassifiedSpecialAccountsasAdministeredSpecialAccountswithasubsequentfirsttimeeffectonadministeredcashusedinthe2004–05financialyear.The2003–04figureshavebeenupdated(designatedinItalics)toprovideameaningfulcomparative.
Thisscheduleshouldbereadinconjunctionwiththeaccompanyingnotes.
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AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFADMINISTEREDITEMS(continued)
Administered Contingencies
as at 30 June 2005
Administered Contingent Assets
Guarantees Claims for
damages/costs Total
�00� 2004 �00� 2004 �00� 2004
$’000 $’000 $’000 $’000 $’000 $’000
Balancefrompreviousperiod - - 44,476 - ��,��� -
New - - 2 - � -
Re-measurement - - 4,556 44,476 �,��� 44,476
Liabilitiescrystallised - - - - - -
Obligationsexpired - - - - - -
Total Administered Contingent Assets - - ��,0�� 44,476 ��,0�� 44,476
UnquantifiableandremotebutmaterialcontingenciesaredisclosedinNote ��: Administered Contingent Liabilities and Assets
Statement of Activities Administered on Behalf of Government
ThemajoradministeredactivitiesoftheAustralianCustomsServicearedirectedtowardsachievingeffectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementsacrosstheborder,raisesrevenueandprovidestradestatistics.Themajoradministeredfinancialactivitiesadministeredarethecollectionofduty,thepassengermovementchargeandimportprocessingcharges.DetailsofplannedactivitiesfortheyearcanbefoundintheAgencyPortfolioBudgetandPortfolioAdditionalEstimatesStatementforthe2004–05financialyearwhichhavebeentabledintheParliament.
Theabovescheduleshouldbereadinconjunctionwiththeaccompanyingnotes.
1�� AustralianCustomsServiceAnnualReport2004–05
AUSTRALIANCUSTOMSSERVICE–NotestoandformingpartoftheFinancialStatementsfortheyearended30June2005
Note1: SummaryofSignificantAccountingPolicies
Note2: AdoptionofAASBEquivalentstoInternationalFinancialReportingStandardsfrom2005–2006
Note3: EventsOccurringafterReportingDate
Note4: OperatingRevenues
Note5: OperatingExpenses
Note6: BorrowingCostExpense
Note7: FinancialAssets
Note8: Non-FinancialAssets
Note9: InterestBearingLiabilities
Note10: Provisions
Note11: Payables
Note12: Equity
Note13: CashFlowReconciliation
Note14: ContingentLiabilitiesandAssets
Note15: ExecutiveRemuneration
Note16: RemunerationofAuditors
Note17: AverageStaffingLevels
Note18: FinancialInstruments
Note19: RevenuesAdministeredonBehalfofGovernment
Note20: ExpensesAdministeredonBehalfofGovernment
Note21: AssetsAdministeredonBehalfofGovernment
Note22: LiabilitiesAdministeredonBehalfofGovernment
Note23: AdministeredReconciliationTable
Note24: AdministeredContingentLiabilitiesandAssets
Note25: AdministeredFinancialInstruments
Note26: Appropriations
Note27: SpecificPaymentDisclosures
Note28: ReportingofOutcomes
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Note 1: Summary of Significant Accounting Policies
1.1 Objectives of Australian Customs Service
TheobjectiveofAustralianCustomsService(Customs)istobeaworldleaderincustomsadministration,deliveringhighqualityservicetothecommunity,industryandcommerce.
CustomsisanagencywithintheAttorneyGeneral’sportfolio.
Customsisstructuredtomeetoneoutcome:Effectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementacrosstheborder,raisesrevenueandprovidestradestatistics.
Customsactivitiescontributingtowardthisoutcomeareclassifiedaseitherdepartmentaloradministered.Departmentalactivitiesinvolvetheuseofassets,liabilities,revenuesandexpensescontrolledorincurredbyCustomsinitsownright.AdministeredactivitiesinvolvethemanagementoroversightbyCustoms,onbehalfoftheGovernment,ofitemscontrolledorincurredbytheGovernment.
Departmentalactivitiesareidentifiedunderfiveoutputsbeing:Output1.Facilitationofthelegitimatemovementofgoodsacrosstheborder,whileinterceptingprohibitedandrestrictedimportsandexports,Output2.Facilitationofthelegitimatemovementofpeopleacrosstheborder,whileidentifyingillegalmovements,Output3.Civilmaritimesurveillanceandresponse,Output4.AdministrationofCustomsdutyandindirecttaxes,otherborder-relatedrevenuecollections,andimport/exportstatisticsandOutput5.Anti-dumpingandcountervailingadministration.
ThecontinuedexistenceofCustomsinitspresentform,andwithitspresentprograms,isdependentonGovernmentpolicyandoncontinuingappropriationsbyParliamentforitsadministrationandprograms.
1.� Basis of Accounting
Thefinancialstatementsarerequiredbysection49oftheFinancial Management and Accountability Act 1997andareageneralpurposefinancialreport.
Thestatementshavebeenpreparedinaccordancewith:
* FinanceMinister’sOrders(orFMOs,beingtheFinancialManagementandAccountabilityAct(FinancialStatementsforreportingperiodsendingonorafter30June2005));
* AustralianAccountingStandardsandAccountingInterpretationsissuedbytheAustralianAccountingStandardsBoard;
* ConsensusViewsoftheUrgentIssuesGroup.
TheStatementsofFinancialPerformanceandFinancialPositionhavebeenpreparedonanaccrualbasisandareinaccordancewithhistoricalcostconvention,exceptforcertainassets,which,asnoted,areatvaluation.Exceptwherestated,noallowanceismadefortheeffectofchangingpricesontheresultsorthefinancialposition.
AssetsandliabilitiesarerecognisedintheStatementofFinancialPositionwhenandonlywhenitisprobablethatfutureeconomicbenefitswillflowandtheamountsoftheassetsorliabilitiescanbereliablymeasured.However,assetsandliabilitiesarisingunderagreementsequallyproportionatelyunperformedarenotrecognisedunlessrequiredbyanAccountingStandard.LiabilitiesandassetsthatareunrecognisedarereportedintheScheduleofCommitmentsandtheScheduleofContingencies(otherthanunquantifiableorremotecontingencies,whicharereportedatNote14).
RevenuesandexpensesarerecognisedintheStatementofFinancialPerformancewhenandonlywhenthefloworconsumptionorlossofeconomicbenefitshasoccurredandcanbereliablymeasured.
Administeredrevenues,expenses,assets,liabilitiesandcashflowsreportedintheScheduleofAdministeredItemsandrelatednotesareaccountedforonthesamebasisandusingthesamepoliciesasforAgencyitems,exceptwhereotherwisestatedatNote1.16.
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
1.� Revenue
Revenues from Government
AmountsappropriatedforDepartmentaloutputsfortheyear(adjustedforanyformaladditionsandreductions)arerecognisedasrevenue,exceptforcertainamountswhichrelatetoactivitiesthatarereciprocalinnature,inwhichcaserevenueisrecognisedonlywhenithasbeenearned.
Appropriationsreceivablearerecognisedattheirnominalamounts.
Resources Received Free of Charge
Servicesreceivedfreeofchargearerecognisedasrevenuewhenandonlywhenafairvaluecanbereliablydeterminedandtheserviceswouldhavebeenpurchasediftheyhadnotbeendonated.Useofthoseresourcesisrecognisedasanexpense.
Defence’scommitmenttothecivilmaritimesurveillanceprogram(250RAAFP3COrionhoursand1,800FREMANTLEClassPatrolBoatdays)hasbeendeliveredthroughresponsetoCustomsspecifictaskingandmulti-taskedactivityassociatedwithOperationRELEXII.
Contributionsofassetsatnocostofacquisitionorfornominalconsiderationarerecognisedasrevenueattheirfairvaluewhentheassetqualifiesforrecognition,unlessreceivedfromanothergovernmentagencyasaconsequenceofarestructuringofadministrativearrangements(RefertoNote1.4).
Other Revenue
Revenuefromthesaleofgoodsisrecogniseduponthedeliveryofgoodstocustomers.
Revenuefromrenderingofservicesisrecognisedbyreferencetothestageofcompletionofcontractsorotheragreementstoprovideservices.Thestageofcompletionisdeterminedaccordingtotheproportionthatcostsincurredtodatebeartotheestimatedtotalcostsofthetransaction.
Receivablesforgoodsandservicesarerecognisedatthenominalamountsduelessanyprovisionforbadanddoubtfuldebts.Collectabilityofdebtsisreviewedatbalancedate.Provisionsaremadewhencollectabilityofthedebtisjudgedtobelessratherthanmorelikely.
Revenuefromdisposalofnon-currentassetsisrecognisedwhenthecontroloftheassethaspassedtothebuyer.
1.� Transaction with the Government as Owner
Equity injections
Amountsappropriatedwhicharedesignatedas‘equityinjections’forayear(lessanysavingsofferedupinPortfolioAdditionalEstimatesStatements)arerecogniseddirectlyinContributedEquityinthatyear.
Restructuring of Administrative Arrangements
NetassetsreceivedfromorrelinquishedtoanotherCommonwealthagencyorauthorityunderarestructuringofadministrativearrangementsareadjustedattheirbookvaluedirectlyagainstContributedEquity.
Other distributions to owners
TheFMOsrequirethatdistributionstoownersbedebitedtocontributedequityunlessinthenatureofadividend.
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1.� Employee Benefits
Liabilitiesforservicesrenderedbyemployeesarerecognisedatthereportingdatetotheextentthattheyhavenotbeensettled.
Liabilitiesforwagesandsalaries(includingnon-monetarybenefits)andannualleavearemeasuredattheirnominalamounts.Otheremployeebenefitsexpectedtobesettledwithin12monthsofthereportingdatearealsomeasuredattheirnominalamounts.
Thenominalamountiscalculatedwithregardtotheratesexpectedtobepaidonsettlementoftheliability.
Allotheremployeebenefitliabilitiesaremeasuredasthepresentvalueoftheestimatedfuturecashoutflowstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdate.
Leave
Theliabilityforemployeeentitlementsincludesprovisionforannualleaveandlongserviceleave.Noprovisionhasbeenmadeforsickleaveasallsickleaveisnon-vestingandtheaveragesickleavetakeninfutureyearsbyemployeesofCustomsisestimatedtobelessthantheannualentitlementforsickleave.
Theleaveliabilitiesarecalculatedonthebasisofemployees’remuneration,includingCustomsemployersuperannuationcontributionratestotheextentthattheleaveislikelytobetakenduringserviceratherthanpaidoutontermination.
Theliabilityforlongserviceleavehasbeendeterminedbyreferencetotheworkofanactuaryasat30June2003.Theestimateofthepresentvalueoftheliabilitytakesintoaccountattritionratesandpayincreasesthroughpromotionandinflation.
Separation and Redundancy
ProvisionismadeforseparationandredundancypaymentsincircumstanceswhereCustomshasformallyidentifiedpositionsasexcesstorequirementsandareliableestimateoftheamountofthepaymentscanbedetermined.Asatreportingdate,nosuchcircumstancesexist.
Superannuation
StaffofCustomsaremembersoftheCommonwealthSuperannuationSchemeandthePublicSectorSuperannuationScheme.TheliabilityfortheirsuperannuationbenefitsisrecognisedinthefinancialstatementsoftheAustralianGovernmentandissettledbytheAustralianGovernmentinduecourse.
CustomsmakesemployercontributionstotheAustralianGovernmentatratesdeterminedbyanactuarytobesufficienttomeetthecosttotheGovernmentofthesuperannuationentitlementsofCustom’semployees.
Theliabilityforsuperannuationrecognisedasat30June2005representsoutstandingcontributionsforthefinalfortnightoftheyear.
1.� Leases
Adistinctionismadebetweenfinanceleasesandoperatingleases.Financeleaseseffectivelytransferfromthelessortothelesseesubstantiallyalltherisksandbenefitsincidentaltoownershipofleasednon-currentassets.Inoperatingleases,thelessoreffectivelyretainssubstantiallyallsuchrisksandbenefits.
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
Whereanon-currentassetisacquiredbymeansofafinancelease,theassetiscapitalisedatthepresentvalueofminimumleasepaymentsatthebeginningoftheleaseandaliabilityrecognisedatthesametimeforthesameamount.Thediscountrateusedistheinterestrateimplicitinthelease.Leasedassetsareamortisedovertheperiodofthelease.Leasepaymentsareallocatedbetweentheprincipalcomponentandtheinterestexpense.
Operatingleasepaymentsareexpensedonabasis,whichisrepresentativeofthepatternofbenefitsderivedfromtheleasedassets.Thenetpresentvalueoffuturenetoutlaysinrespectofsurplusspaceundernon-cancellableleaseagreementsisexpensedintheperiodinwhichthespacebecomessurplus.
Leaseincentivestakingtheformof‘free’leaseholdimprovementsandrentholidaysarerecognisedasliabilities.Theseliabilitiesarereducedbyallocatingleasepaymentsbetweenrentalexpenseandreductionoftheliability.
1.� Borrowing Costs
Allborrowingcostsareexpensedasincurredexcepttotheextentthattheyaredirectlyattributabletoqualifyingassets,inwhichcasetheyarecapitalised.Theamountcapitalisedinareportingperioddoesnotexceedtheamountofcostsincurredinthatperiod.
TheborrowingcostrecognisedbyCustomsrelatestoleasedvesselsandwasborrowedin1998.
1.� Cash
Cashmeansnotesandcoinsheldandanydepositsheldatcallwithabankorfinancialinstitution.Cashisrecognisedatitsnominalamount.
1.� Other Financial Instruments
Governmentloansarecarriedatthebalanceyettoberepaid.Interestisexpensedasitaccruesunlessitisdirectlyattributabletoaqualifyingasset.
Trade Creditors
Tradecreditorsandaccrualsarerecognisedattheirnominalamounts,beingtheamountsatwhichtheliabilitieswillbesettled.Liabilitiesarerecognisedtotheextentthatthegoodsandserviceshavebeenreceived(andirrespectiveofhavingbeeninvoiced).
Contingent Liabilities and Contingent Assets
Contingentliabilities(assets)arenotrecognisedintheStatementofFinancialPositionbutarediscussedintherelevantschedulesandnotes.Theymayarisefromuncertaintyastotheexistenceofaliability(asset),orrepresentanexistingliability(asset)inrespectofwhichsettlementisnotprobableortheamountcannotbereliablymeasured.Remotecontingenciesarepartofthisdisclosure.Wheresettlementbecomesprobable,aliability(asset)isrecognised.Aliability(asset)isrecognisedwhenitsexistenceisconfirmedbyafutureevent,settlementbecomesprobableandreliablemeasurementbecomespossible.
1.10 Acquisition of Assets
Assetsarerecordedatcostonacquisitionexceptasstatedbelow.Thecostofacquisitionincludesthefairvalueofassetstransferredinexchangeandliabilitiesundertaken.
Assetsacquiredatnocost,orfornominalconsideration,areinitiallyrecognisedasassetsandrevenuesattheirfairvalueatthedateofacquisition,unlessacquiredasaconsequenceofrestructuringadministrativearrangements.Inthelattercase,assetsareinitiallyrecognisedascontributionsbyownersattheamountsatwhichtheywererecognisedinthetransferoragency’saccountsimmediatelypriortotherestructuring.
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1.11 Property (Land, Buildings and Infrastructure), Plant and Equipment
Asset Recognition Threshold
Purchasesofproperty,plantandequipmentarerecognisedinitiallyatcostintheStatementofFinancialPosition,exceptforpurchasescostinglessthanthethresholdspecifiedbelow,whichareexpensedintheyearofacquisition(otherthanwheretheyformpartofagroupofsimilaritemswhicharesignificantintotal).
�00� 2004
Buildingsandleaseholdimprovements �0,000 50,000
Infrastructure,plantandequipment �,000 3,000
Revaluations
Basis
Land,buildings,plantandequipmentarecarriedatvaluation,beingrevaluedprogressivelywithsufficientfrequencysuchthatthecarryingamountofeachassetclassisnotmateriallydifferent,atreportingdate,fromitsfairvalue.
Fairvaluesforeachclassofassetaredeterminedasshownbelow.
Asset class Fair value measured at:
Land Marketsellingprice
Buildings Marketsellingprice
Leaseholdimprovements Depreciatedreplacementcost
Plant&equipment Marketsellingprice
Frequency
Land,buildings,andleaseholdimprovementsassetsaresubjecttoaformalvaluationeverythreeyears.Plantandequipmentassetsarereviewedannually.
Conduct
Allformalvaluationsareconductedbyanindependentqualifiedvaluer.
Depreciation
Depreciableproperty,plantandequipmentassetsarewritten-offtotheirestimatedresidualvaluesovertheirestimatedusefullivestoCustomsusing,inallcases,thestraightlinemethodofdepreciation.Leaseholdimprovementsareamortisedonastraight-linebasisoverthelesseroftheestimatedusefullifeoftheimprovementsortheunexpiredperiodofthelease.
Depreciation/amortisationrates(usefullives)andmethodsarereviewedateachbalancedateandnecessaryadjustmentsarerecognisedinthecurrent,orcurrentandfuturereportingperiods,asappropriate.Residualvaluesarere-estimatedforachangeinpriceonlywhenassetsarerevalued.
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
Depreciationandamortisationratesapplyingtoeachclassofdepreciableassetarebasedonthefollowingusefullives(*):
�00� �00�
Buildingsonfreeholdland �0 years 40years
Leaseholdimprovements Varies (**) Varies(**)
Plantandequipment � to � years 3to7years
Intangibles � to 10 years 3to5years
Customsvessels(leasedandother) 1� to 1� years 12to15years
Operationequipment � years 5years
X-Rayequipment � years 7years
Historicalandantiqueitems �0 years 50years
(*) Theselivesareaguideonly.
Insomecircumstancestheyearsmaybemoreorlessduetofactorssuchasobsolescence,technological,legal,orothermatters.
(**) Lesserofestimatedusefullifeorleasedterm.
TheaggregateamountofdepreciationallocatedforeachclassofassetduringthereportingperiodisdisclosedinNote5C.
1.1� Impairment of Non-Current Assets
Non-currentassetscarriedatuptodatefairvalueatthereportingdatearenotsubjecttoimpairmenttesting.
Thenon-currentassetscarriedatcost,whicharenotheldtogeneratenetcashinflows,havebeenassessedforindicationsofimpairment.Whereindicationsofimpairmentexist,theassetiswrittendowntothehigherofitsnetsellingpriceand,iftheentitywouldreplacetheasset’sservicepotential,itsdepreciatedreplacementcost.Nonewerefoundtobeimpaired.
1.1� Intangibles
Customsintangiblescompriseinternallydevelopedsoftwareforinternaluseandpurchasedsoftware.Theseassetsarecarriedatcost.PurchasesofintangiblesarerecognisedinitiallyatcostintheStatementofFinancialPosition,exceptforpurchasescostinglessthanthethresholdspecifiedbelow,whichareexpensedintheyearofacquisition(otherthanwhentheyformpartofagroupofsimilaritemswhicharesignificantintotal).
Softwareisamortisedonastraight-linebasisoveritsanticipatedusefullifeusingthethresholdspecifiedbelow.
�00� �00�
Internallydevelopedsoftware 100,000 100,000
Purchasedsoftware �,000 3,000
1.1� Inventories
Inventoriesofseizedandsurrenderedgoodsheldforsalearebroughttoaccountatnetrealisablevalue.Inventoriesnotheldforresalearevaluedatcost,unlesstheyarenolongerrequired,inwhichcasetheyarevaluedatnetrealisablevalue.
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1.1� Taxation
Customsisexemptfromallformsoftaxationexceptfringebenefitstaxandthegoodsandservicestax(GST).
Revenues,expensesandassetsarerecognisednetofGST:
* exceptwheretheamountofGSTincurredisnotrecoverablefromtheAustralianTaxationOffice;and
* exceptforreceivablesandpayables.
1.1� Reporting of Administered Activities
Administeredrevenues,expenses,assets,liabilitiesandcashflowsaredisclosedintheScheduleofAdministeredItemsandrelatedNotes.
Exceptwhereotherwisestatedbelow,administereditemsareaccountedforonthesamebasisandusingthesamepoliciesasforAgencyitems,includingtheapplicationofAccountingStandards,AccountingInterpretationsandUIGAbstracts.
Administered Cash Transfers to and from Official Public Account
RevenuecollectedbyCustomsforusebythegovernmentratherthantheAgencyisAdministeredRevenue.CollectionsaretransferredtotheOfficialPublicAccount(OPA)maintainedbytheDepartmentofFinance.Conversely,cashisdrawnfromtheOPAtomakepaymentsunderParliamentaryappropriationonbehalfofGovernment.ThesetransferstoandfromtheOPAareadjustmentstotheadministeredcashheldbytheAgencyonbehalfoftheGovernmentandreportedassuchintheStatementofCashFlowsintheScheduleofAdministeredItemsandintheAdministeredReconciliationTableinNote23.ThustheScheduleofAdministeredItemslargelyreflectstheGovernment’stransactions,throughtheAgency,withpartiesoutsidetheGovernment.
Revenue
Alladministeredrevenuesarerevenuesrelatingtothecore-operatingactivitiesperformedbyCustomsonbehalfoftheCommonwealth.
FeesarechargedtoindividualsleavingAustralia,andareintendedtocoverthecostsofgovernmentservicesprovidedatinternationalairportsandseaports.Administeredfeerevenueisrecognisedintheperiodthechargeisincurred.Itisrecognisedatitsnominalamountduelessanyprovisionforbadordoubtfuldebts.Collectabilityofdebtsisreviewedatbalancedate.Provisionsaremadewhencollectionofthedebtisjudgedtobelessratherthanmorelikely.
DutiesaredebtsoftheCrownaccordingtosection153oftheCustoms Act 1901andarepayablebytheownerofthegoodsandrecoverableatanytimeinanycourtofcompetentjurisdiction.Revenuerelatedtoimportsisrecognizedinaccordancewiths132AAoftheCustoms Act 1901.
Customsundertakescheckstoverifycomplianceinanenvironmentthatislargelyself-regulated,byinterveningintransactionsproportionatelytotheperceivedlevelsofriskinagivensituation.Recentsurveysindicatethatriskstotheborderandvaryingdegreesofnon-compliancebyclientsremainanissueforCustomstodealwithinmanagingthatenvironment.
CustomsComplianceAssuranceStrategy(CCAS)isanintelligencedrivenprogramdevelopedbyCustomstodeliveraninternationaltradingenvironmentthatistypifiedbyhighlevelsofself-regulatedcompliancewithgovernmentrequirements.
1�0 AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
Specifically,CCASaimstogiveGovernmentandthecommunityconfidencethat:
* ReportingofallcargoandvesselsenteringorleavingAustraliaisaccurateandtimelyallowingCustomstofulfilitsregulatoryrole.
* Licenceandpermitrequirements,prohibitionsandrestrictionsinrelationtoimportedandexportedgoodsarecompliedwith.
* Thecorrectamountofrevenueispaidoridentifiedforcollectionorconsideration.
* Communityprotectionprogramsrelatedtoimportedandexportedgoodsareeffectivelyimplemented.
* AccurateandreliabledataontradestatisticsisprovidedtoCustoms
CCAScomprisesthreelevelsofactivitydeliveredviaintegratedandnationallymanagedandplannedprogramsutilisingbusinessprocessesthatallowCustomstotestboththegeneralityandspecificsoftheenvironment.Thesecanbroadlyberegardedasmonitoring,responseandenforcementactivities.
Other Revenue
Administeredfinesarerecognisedintheperiodinwhichthebreachoccurs.
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Note �: Adoption of Australian Equivalents to International Financial Reporting Standards from �00�–�00�
TheAustralianAccountingStandardsBoardhasissuedreplacementAustralianAccountingStandardstoapplyfrom2005-06.ThenewstandardsaretheAustralianEquivalentstoInternationalFinancialReportingStandards(AEIFRS).TheInternationalFinancialReportingStandardsareissuedbytheInternationalAccountingStandardsBoard.Thenewstandardscannotbeadoptedearly.Thestandardsbeingreplacedaretobewithdrawnwitheffectfrom2005-06,butcontinuetoapplyinthemeantime,includingreportingperiodsendingon30June2005.
ThepurposeofissuingAEIFRSistoenableAustralianreportingentitiesreportingundertheCorporationsAct2001tobeabletomorereadilyaccessoverseascapitalmarketsbypreparingtheirfinancialreportsaccordingtoaccountingstandardsmorewidelyusedoverseas.
For-profitentitiescomplyingwithAEIFRSwillbeabletomakeanexplicitandunreservedstatementofcompliancewithInternationalFinancialReportingStandards(IFRS)aswellasastatementthatthefinancialreporthasbeenpreparedinaccordancewithAustralianAccountingStandards.
AEIFRScontaincertainadditionalprovisionsthatwillapplytonot-for-profitentities,includingAustralianGovernmentagencies.SomeoftheseprovisionsareinconflictwithIFRS,andthereforeCustomswillonlybeabletoassertthatthefinancialreporthasbeenpreparedinaccordancewithAustralianAccountingStandards.
AAS29FinancialReportingbyGovernmentDepartmentswillcontinuetoapplyunderAEIFRS.
AccountingStandardAASB1047DisclosingtheImpactsofAdoptingAustralianEquivalentstoInternationalFinancialReportingStandardsrequiresthatthefinancialstatementsfor2004–05disclose:
* anexplanationofhowthetransitiontoAEIFRSisbeingmanaged;
* narrativeexplanationsofthekeypolicydifferencesarisingfromtheadoptionofAEIFRS;
* anyknownorreliablyestimableinformationabouttheimpactsonthefinancialreporthaditbeenpreparedusingAEIFRS;and
* iftheimpactsoftheabovearenotknownorreliablyestimable,astatementtothateffect.
Whereanentityisnotabletomakeareliableestimate,orwherequantitativeinformationisnotknown,theentityshouldupdatethenarrativedisclosuresofthekeydifferencesinaccountingpoliciesthatareexpectedtoarisefromtheadoptionofAEIFRS.
ThepurposeofthisNoteistomakethesedisclosures.
Management of the transition to AEIFRS
CustomshastakenthefollowingstepsforthepreparationtowardstheimplementationofAASBEquivalents:
* TheAgency’sAuditCommitteeistaskedwithoversightofthetransitiontoandimplementationoftheAASBEquivalentstoIFRSs.TheChiefFinanceOfficerisformallyresponsiblefortheprojectandreportsregularlytotheAuditCommitteeonprogressagainstCustomsIFRSimplementationplan.Theplanrequiresthefollowingkeystepstobeundertakenandsetsdeadlinesfortheirachievement:
* AllmajoraccountingpolicydifferencesbetweencurrentAASBstandardsandAEIFRSwereidentifiedby30June2004.
* SystemchangesnecessarytobeabletoreportundertheAEIFRS,includingthosenecessarytocapturedataunderbothsetsofrulesfor2004-05werecompletedon18August2004.Thisincludedthetestingandimplementationofthosechanges.
* Atransitionalbalancesheetasat1July2004,underAEIFRSwascompletedandpresentedtotheAuditCommitteeon15March2005.
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
* AnAEIFRScompliantbalancesheetasat30June2005wasalsopreparedduringthepreparationofthe2004–05statutoryfinancialreports.
* The2004–05BalanceSheetunderAEIFRSwillbereportedtotheDepartmentofFinanceandAdministrationinlinewiththeirreportingdeadlines.
* Theplanalsoaddressestheriskstosuccessfulachievementoftheaboveobjectivesandincludesstrategiestokeepimplementationontracktomeetdeadlines.
Major Changes in accounting policy
CustomsbelievesthatthefirstfinancialreportpreparedunderAEIFRSi.e.at30June2006,willbepreparedonthebasisthatCustomswillbeafirsttimeadopterunderAASB1First-timeAdoptionofAustralianEquivalentstoInternationalFinancialReportingStandards.ChangesinaccountingpoliciesunderAEIFRSareappliedretrospectivelyi.e.asifthenewpolicyhadalwaysappliedexceptinrelationtotheexemptionsavailableandprohibitionsunderAASB1.ThismeansthatanAEIFRScompliantbalancesheethastobepreparedasat1July2004.Thiswillenablethe2005-06financialstatementstoreportcomparativesunderAEIFRS.
AfirsttimeadopterofAEIFRSmayelecttouseexemptionsunderparagraphs13to25E.Whendevelopingtheaccountingpoliciesapplicabletothepreparationofthe1Julyopeningbalancesheet,noexemptionswereappliedbyCustoms.
Changestomajoraccountingpoliciesarediscussedinthefollowingparagraphs.
Management’sreviewofthequantitativeimpactsofAEIFRSrepresentsthebestestimatesoftheimpactsofthechangesasatreportingdate.TheactualeffectsoftheimpactsofAEIFRSmaydifferfromtheseestimatesdueto:
* continuingreviewoftheimpactsofAEIFRSonagencyoperations;
* potentialamendmentstotheAEIFRSandAEIFRSInterpretations;and
* emerginginterpretationastotheacceptedpracticeintheapplicationofAEIFRSandtheAEIFRSInterpretations.
Property Plant and Equipment
Itisexpectedthatthe2005–06FinanceMinister’sOrders(FMOs)willcontinuetorequirepropertyplantandequipmentassetstobevaluedatfairvaluein2005–06.
Borrowing Costs
ItisexpectedthattheFMOsfor2005–06willelecttoexpenseallborrowingcostsunderAEIFRS.Customsborrowingcostsarecurrentlyexpensed.Accordingly,therearenoadjustmentsrequiredduetothetransitiontoAEIFRS.Theimpactofbringingtoaccountthedecommissioning,restorationandmake-goodprovisionbelowmayhaveanimpactonborrowingcosts,howeverthisimpactisstillbeingassessed.
Intangible Assets
Customsintangiblescompriseinternallydevelopedsoftwareforinternaluseandpurchasedsoftware.Theseassetsarecarriedatcost.PurchasesofintangiblesarerecognisedinitiallyatcostintheBalanceSheet,exceptforpurchasescostinglessthanthethresholdspecifiedbelow,whichareexpensedintheyearofacquisition(otherthanwhentheyformpartofagroupofsimilaritemswhicharesignificantintotal).
Customsexistingcapitalisationpolicyrecognisesresearchexpenditureandtrainingasanexpenseasitisincurred.Costsassociatedwiththedevelopmentoftheprojectssuchasdesignandtestingarerecognisedasintangibleassetswhenitisprobablethattheprojectwillbeasuccess,consideringitscommercialandtechnologicalfeasibility,andcostscanbemeasuredreliably.Softwareisamortisedonastraight-linebasisoveritsanticipatedusefullife.
FinancialStatements 1��
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Impairment of Intangibles and Property, Plant and Equipment
UnderAEIFRStheseassetswillbesubjecttoassessmentforimpairmentand,ifthereareindicationsofimpairment,anassessmentofthedegreeofimpairment.(Impairmentmeasurementmustalsobecompleted,irrespectiveofanyindicationsofimpairment,forintangibleassetsnotyetavailableforuse).
Theimpairmenttestisthatthecarryingamountofanassetmustnotexceedthegreaterof(a)itsfairvaluelesscoststoselland(b)itsvalueinuse.‘Valueinuse’isthenetpresentvalueofnetcashinflowsforcashgeneratingunitsoftheAgencyanddepreciatedreplacementcostforotherassetswhichwouldbereplacedifCustomsweredeprivedofthem.
AnimpairmentassessmentofCustom’sassetsindicatedthatnoadjustmentswillberequired.
Decommissioning, Restoration and Make-good
Whenassessingtheaccommodationleasesforthepreparationoftheopeningbalancesheet,Customshaddeterminedthatanadjustmentwouldberequiredtoaccountforthemake-goodatyearend.Asatreportingdate,Customshasmadeaninitialassessmentofanobligationfordecommissioning,restorationormake-goodfortheperiodended30June2005.Althoughtheestimatedimpacthasinitiallybeenassessedasa$1.7mdecreaseagainstretainedearnings,thisamountisstillsubjecttofurtherreviewandmaydiffertothefinalamountexpectedtobereportedtotheDepartmentofFinanceandAdministrationinlinewiththeirreportingdeadlines.
Inventories
Inventoriesofseizedandsurrenderedgoodsarebroughttoaccountatnetrealisablevalue.ThenewAustralianEquivalentstandardwillrequireinventoryheldfordistributionfornoconsiderationoratanominalamounttobecarriedatthelowerofcostorcurrentreplacementcost.
Anassessmentwasmadeanditwasfoundthatinallinstancesthecurrentreplacementcostofinventorywasequalorgreaterthantheoriginalcost.Thereforenoadjustmentisrequired.
Employee Benefits
Theprovisionforlongserviceleaveismeasuredatthepresentvalueofestimatedfuturecashoutflowsusingmarketyieldsasatthereportingdateonnationalgovernmentbonds.
The2003-04FinancialReportnotedthattheAEIFRSstandardsmayrequirethemarketyieldoncorporatebondstobeused.TheAASBhasdecidedthatadeepmarketinhighqualitycorporatebondsdoesnotexistandthereforenationalgovernmentbondswillbereferenced.
AEIFRSrequirethatannualleavethatisnotexpectedtobetakenwithin12monthsofbalancedateistobediscounted.Consequently,therewillbeanadjustmentforthenon-currentannualleave.Asatreportingdate,Customshasmadeaninitialassessmentofanobligationforemployeebenefitsfortheperiodended30June2005.Althoughtheestimatedimpacthasinitiallybeenassessedasa$0.1mincreaseagainstretainedearnings,thisamountisstillsubjecttofurtherreviewandmaydiffertothefinalamountexpectedtobereportedtotheDepartmentofFinanceandAdministrationinlinewiththeirreportingdeadlines.
Administered Items
AssessmentoftheadministeredassetsandliabilitiesofCustomsindicatethattherearenoadjustmentsduetothetransitiontoAEIFRS.
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
Financial Instruments
AEIFRSincludesanoptionforentitiesnottorestatecomparativeinformationinrespectoffinancialinstrumentsinthefirstAEIFRSreport.ItisexpectedthattheFinanceMinistersOrderswillrequireentitiestousethisoption.Therefore,theamountforfinancialinstrumentspresentedintheCustoms2004–05primaryfinancialstatementarenotexpectedtochangeasaresultoftheadoptionofAEIFRS
CustomswillberequiredbyAEIFRStoreviewthecarryingamountsoffinancialinstrumentsat1July2005toensuretheyalignwiththeaccountingpoliciesrequiredbyAEIFRS.ItisexpectedthatthecarryingamountsoffinancialinstrumentsheldbyCustomswillnotmateriallychangeasaresultofthisprocess.
Reconciliation of Impacts – AGAAP to AEIFRS
�0 June �00�* 30June2004
$’000 $’000
Reconciliation of Departmental Equity
TotalDepartmentalEquityunderAGAAP ���,�0� 198,112
Adjustmentstoaccumulatedresults (1,���) (12)
���,0�0 198,100
Reconciliation of Departmental Accumulated Results
TotalDepartmentalAccumulatedResultsunderAGAAP �0,��0 23,189
Adjustments:
Leaseholdimprovementsasset - 6,132
Leaseholdimprovementsdeferredexpense (1,���) (2,625)
Deferredexpense(makegoodprovision) - (3,507)
Annualleavecurrentandnoncurrentsplit 111 (12)
Total Accumulated Results under AEIFRS ��,��� 23,177
Reconciliation of Departmental Reserves
TotalDepartmentalReservesunderAGAAP 1�,��0 15,398
Total Departmental Reserves under AEIFRS 1�,��0 15,398
Reconciliation of Departmental Contributed Equity
TotalDepartmentalContributedEquityunderAGAAP �00,�0� 159,525
Total Contributed Equity under AEIFRS �00,�0� 159,525
*30June2005totalrepresentstheaccumulatedimpactsofAEIFRSfromthedateoftransition.
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Note �: Events Occurring After Reporting Date
Noeventsoccurredafterthebalancedate.
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
�00� 2004
$’000 $’000
Note �: Operating Revenues
Note 4A: Revenues from Government
Appropriationsforoutputs ���,��� 591,554
Note 4B: Goods and Services
Goods ��� 238
Services ��,��� 77,113
Total sales of goods and services ��,1�� 77,351
Provisionofgoodsto:
Relatedentities 1 -
Externalentities ��� 238
Total sales of goods ��� 238
Renderingofservicesto:
Relatedentities ��,��0 72,317
Externalentities �,0�� 4,796
Total rendering of services ��,��� 77,113
Costofsalesofgoods ��� 238
Note 4C: Interest Revenue
Interest 1 -
Note 4D: Net Gains from Sale of Assets
Landandbuildings
Proceedsfromdisposal ��� 250
Netbookvalueofassetsdisposed (��1) (261)
Net gain/(loss) from disposal of land and buildings 1�1 (11)
Infrastructure,plantandequipment
Proceedsfromdisposal �� 14
Netbookvalueofassetsdisposed (�1) (53)
Net gain/(loss) from disposal of infrastructure, plant and equipment � (39)
Totalproceedsfromdisposals ��� 264
Totalvalueofassetsdisposed (���) (314)
Total net gain/(loss) from disposal of assets 1�� (50)
Note 4E: Other Revenues
Resourcesreceivedfreeofcharge(Government) 1��,�1� 130,010
Resourcesreceivedfreeofcharge(otherthanGovernment) �,�1� 7,537
Othernontaxrevenue 1�� 25
Total other revenues 1��,��� 137,572
Note:DuetospecificdisclosurerequirementsregardingResourcesReceivedFreeofCharge(RRFOC)fromrelatedentities,RRFOCreceivedfromDefencehasbeenclassifiedas‘Otherrevenues’.Previously,thiswasclassifiedunder‘RevenuesfromGovernment’.Figuresin2003–04(designatedinItalics)havebeenre-classifiedforamoremeaningfulcomparisonwithfiguresin2004–05.
FinancialStatements 1��
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�00� 2004
$’000 $’000
Note �: Operating Expenses
Note 5A: Employee Expenses
Salaries&Wages �0�,��1 195,776
Superannuation ��,0�1 44,717
Leaveandotherentitlements ��,��� 70,191
Separationandredundancies ��� 409
Otheremployeeexpenses �,�1� 6,148
Total employee benefits expense ���,��� 317,241
Workerscompensationpremiums �,��� 3,283
Total employee expenses ���,��� 320,524
Note 5B: Suppliers Expenses
Goodsfromrelatedentities 11� 469
Goodsfromexternalentities ��,0�� 17,548
Servicesfromrelatedentities 1�,0�� 140,102
Servicesfromexternalentities �00,��� 154,483
Operatingleaserentals1 1��,��� 134,504
Total supplier expenses ���,��� 447,106
1Thesecompriseminimumleasepaymentsonly.
Note 5C: Depreciation and Amortisation
(i) Depreciation
Otherinfrastructure,plantandequipment 11,��� 12,314
Buildings&leaseholdimprovements �,��� 7,153
Total Depreciation 1�,��� 19,467
(ii) Amortisation
Leasedassets �,��0 4,224
Intangibles–computersoftware �,��� 4,507
Total Amortisation 1�,��� 8,731
Total depreciation and amortisation ��,��0 28,198
Theaggregateamountsofdepreciationoramortisationexpensedduringthereportingperiodforeachclassofdepreciableassetsareasfollows:
Buildings ��� 565
Leaseholdimprovements �,�1� 6,588
Plantandequipment 1�,��� 16,538
Software �,��� 4,507
Total depreciation and amortisation ��,��0 28,198
Nodepreciationoramortisationwasallocatedtothecarryingamountsofotherassets.
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
�00� 2004
$’000 $’000
Note5D:WriteDownofAssets
Non-financial assets
Otherintangibles–write-off 0 2,683
Land,buildingsandleaseholdimprovements–write-offs ��� 152
Plantandequipment–write-offs �� 84
Total write-down of assets ��� 2,919
Note5E:OtherExpenses
Otherexpenses ��� 231
Provisionfordoubtfuldebts ��� 757
Total other expenses ��1 988
Note �: Borrowing Costs ExpenseLeases ��� 557
FinancialStatements 1��
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�00� 2004
$’000 $’000
Note �: Financial AssetsNote7A:Cash
Departmental(otherthanspecialaccounts) 1�,0�� 24,097
Note7B:Receivables
Goodsandservices �,��� 4,876
Less:Provisionfordoubtfuldebts (1,���) (932)
�,�01 3,944
GSTreceivablefromtheAustralianTaxationOffice �,��� 7,513
Appropriationsreceivable
–foradditionaloutputs&equity ��,��� 10,530
–undrawns31 �,��1 1,189
Total receivables (net) ��,0�1 23,176
Allreceivables(net)arecurrentassets. ��,0�1 23,176
AppropriationsreceivableundrawnareappropriationscontrolledbyCustomsbutheldintheOfficialPublicAccountundertheGovernment’sjust-in-timedrawdownarrangements.
Receivables(gross)areagedasfollows:
Current ��,��� 23,103
Overdueby:
Lessthan30days 10� 47
30to60days �� 16
61to90days �� 10
Morethan90days 1,��� 932
1,�0� 1,005
Total receivables (gross) ��,��� 24,108
Theprovisionfordoubtfuldebtsisagedasfollows:
Current - -
Overdueby:
Morethan90days 1,��� 932
Total provision for doubtful debts 1,��� 932
1�0 AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
�00� 2004
$’000 $’000
Note �: Non-Financial Assets
Note8A:LandandBuildings
Freehold Land
–atfairvalue �� 52
–at2003–04valuation(fairvalue) �,��� 4,613
Total freehold land �,��� 4,665
Buildings on freehold land –atfairvalue ��� 623
–accumulateddepreciation (��) (8)
�1� 615
–at2003–04valuation(fairvalue) �,��� 10,348
–accumulateddepreciation (���) (556)
�,��� 9,792
Total buildings on freehold land �,��� 10,407
Leasehold improvements –atfairvalue 1�,��0 1,056
–accumulateddepreciation (1,���) (12)
1�,��1 1,044
–at2003–04valuation(fairvalue) 1�,0�� 13,058
–accumulateddepreciation (�,���) (6,615)
�,��� 6,443
–underconstructionatCost 1�,�0� 18,322
Total leasehold improvements ��,��1 25,809
Total Land and Buildings (non-current) ��,��0 40,881
Note8B:Infrastructure,PlantandEquipment
Plant and equipment
–atfairvalue �1,��� 14,068
–accumulateddepreciation (�,���) (1,029)
1�,�0� 13,039
–at2003–04valuation(fairvalue) �0,01� 79,870
–accumulateddepreciation (��,���) (16,770)
�0,��1 63,100
–underconstructionatcost �,��� 5,553
Total Infrastructure, Plant and Equipment (non-current) �0,��� 81,692
FinancialStatements 1�1
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Note8C:AnalysisofProperty,PlantandEquipment
TABLE A – Reconciliation of the opening and closing balances of property, plant and equipment.
Item Land Buildings on
Freehold Land
Buildings –
Leasehold Improvem’t
Buildings – Total
Land and Buildings
Total
Other IP&E
$’000 $’000 $’000 $’000 $’000
Asat1July2004
Grossbookvalue 4,665 10,972 32,436 43,408 48,073 99,491
Accumulateddepreciation/amortisation - (564) (6,627) (7,191) (7,191) (17,799)
OpeningNetBookValue 4,665 10,408 25,809 36,217 40,882 81,692
Additions:
bypurchase - 326 15,034 15,360 15,360 5,362
byfinancelease - - - - - -
fromacquisitionofentitiesoroperations - - - - - -
Netrevaluationincrement/(decrement) 20 104 (93) 11 31 -
Reclassifications - - - - - -
Depreciation/amortisationexpense - (543) (4,716) (5,259) (5,259) (16,255)
Recoverableamountwrite-downs (100) (288) (205) (493) (593) (82)
Othermovements - 18 (8) 10 10 (38)
Disposals:
Fromdisposalofentitiesoroperations - - - - - -
Otherdisposals (200) (371) - (371) (571) (21)
As at �0 June �00�
Grossbookvalue 4,385 10,632 46,266 56,898 61,283 104,130
Accumulateddepreciation/amortisation - (978) (10,445) (11,423) (11,423) (33,472)
Closing Net Book Value �,��� �,��� ��,��1 ��,��� ��,��0 �0,���
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
TABLE B — Assets at valuation.
Item Land Buildings on
Freehold land
Buildings –
Leasehold Improvem’t
Buildings – Total
Land & Buildings
–Total
Other IP&E
$’000 $’000 $’000 $’000 $’000 $’000
As at �0 June �00�
Grossvalue 4,333 9,683 12,089 21,772 26,105 80,015
Accumulateddepreciation/amortisation (945) (8,466) (9,411) (9,411) (29,724)
Closing Net book value �,��� �,��� �,��� 1�,��1 1�,��� �0,��1
Asat30June2004
Grossvalue 4,613 10,348 13,058 23,406 28,019 79,870
Accumulateddepreciation/amortisation - (556) (6,615) (7,171) (7,171) (16,770)
Closing Net book value 4,613 9,792 6,443 16,235 20,848 63,100
TABLE C – Property, Plant and Equipment, and Intangibles held under Finance Lease.
Item Land Buildings on
Freehold land
Buildings - Leasehold Improvem’t
Buildings - Total
Land & Buildings - Total
Other IP&E
$’000 $’000 $’000 $’000 $’000 $’000
As at �0 June �00�
Grossvalue - - - - - 27,750
Accumulateddepreciation/amortisation - - - - - (8,484)
Closing Net book value - - - - - 1�,���
Asat30June2004
Grossvalue - - - - - 27,750
Accumulateddepreciation/amortisation - - - - - (4,224)
Closing Net book value - - - - - 23,526
TABLE D – Property, Plant and Equipment, and Intangibles under Construction.
Item Buildings on
Freehold land
Buildings - Leasehold Improvem’t
Buildings - Total
Other IP&E
$’000 $’000 $’000 $’000
As at �0 June �00� - 18,707 18,707 2,559
Grossvalueat30June2004 - 18,322 18,322 5,553
FinancialStatements 1��
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�00� 2004
$’000 $’000
Note8D:Intangibles
Computersoftware:
Internallydeveloped–inprogress(non-current) 11�,�1� 158,008
11�,�1� 158,008
Internallydeveloped–inuse(non-current) 110,��0 22,675
Accumulatedamortisation (��,1��) (18,014)
��,1�� 4,661
Externallyacquired–atcost(non-current) 1,�1� 1,005
Accumulatedamortisation (���) (518)
��� 487
Total intangibles 1��,��1 163,156
TABLE A – Reconciliation of the opening and closing balances of intangibles
Item Computer Software $’000
Asat1July2004
Grossbookvalue 181,688
Accumulateddepreciation/amortisation (18,532)
Netbookvalue 163,156
Additions:
Bypurchase 42,731
Depreciation/amortisationexpense (8,366)
Writeoffs:
Grossvalue (117)
Accumulateddepreciation/amortisation 117
As at �0 June �00�
Grossbookvalue 224,302
Accumulateddepreciation/amortisation (26,781)
Net book value 1��,��1
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
�00� 2004
$’000 $’000
Note8E:Inventories
Inventoriesnotheldforsale(cost) 1,0�0 1,205
Total inventories 1,0�0 1,205
Alldepartmentalinventoriesarecurrentassets.
Note8F:OtherNon-FinancialAssets
Prepayments �,1�� 10,624
Total other non-financial assets �,1�� 10,624
Allothernon-financialassetsarecurrentassets.
FinancialStatements 1��
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�00� 2004
$’000 $’000
Note �: Interest Bearing Liabilities
Note9A:Leases
Financeleasecommitments
Payable:
Withinoneyear �,�1� 5,399
Inonetofiveyears - 2,816
Minimumleasepayments �,�1� 8,215
Deduct:futurefinancecharges (�1) (287)
Net lease liability �,��� 7,928
Leaseliabilityisrepresentedby:
Current �,��� 5,153
Non-current - 2,775
Net lease liability �,��� 7,928
Afinanceleaseexistsinrelationtovessels.Theleaseisnon-cancellableandforafixedtermof6yearsand4months.Customsguaranteestheresidualofallassetsleased.Therearenocontingentrentals.
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�00� 2004
$’000 $’000
Note 10: ProvisionsSalariesandWages 1,��� 12,189
Leave 10�,��� 93,677
Superannuation 1�� 1,104
Aggregate employee entitlement liability 10�,��� 106,970
Other 1,0�� 2,276
Workerscompensation � 16
Aggregate employee entitlement liability and related on-costs 10�,��0 109,262
Current ��,��� 40,924
Non-current ��,��� 68,338
10�,��0 109,262
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
�00� 2004
$’000 $’000
Note 11: Payables
Note11A:SuppliersPayable
Tradecreditors ��,��� 25,347
Total supplier payables ��,��� 25,347
Allsupplierpayablesarecurrentliabilities.
Settlementisusuallymadenet30days.
Note11B:OtherPayables
Revenuereceivedinadvance ��� 3,417
Fringebenefitstax ��� 435
Otherpayables �,1�1 330
Total other payables �,0�� 4,182
Allotherpayablesarecurrentliabilities.
FinancialStatements 1��
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1�� AustralianCustomsServiceAnnualReport2004–05
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FinancialStatements 1��
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�00� 2004
$’000 $’000
Note 1�: Cash Flow Reconciliation
Reconciliation of Cash per Statement of Financial
Position to Statement of Cash Flows
CashatyearendperStatementofCashFlows 1�,0�� 24,097
StatementofFinancialPositionitemscomprisingabovecash:
‘FinancialAsset–Cash’ 1�,0�� 24,097
Reconciliation of net surplus to net cash from operating activities:
Netsurplus/(deficit) ��,0�� 6,135
Depreciation/amortisation ��,��0 28,198
Netwritedownofnon-financialassets ��� 2,919
(Gain)/lossondisposalofassets (1��) 50
(Increase)/decreaseinnetreceivables (��,1��) 4,855
(Increase)/decreaseinotherassets–financial �� (145)
(Increase)/decreaseininventories 1�� 191
(Increase)/decreaseinotherassets–nonfinancial �,��� 8,425
Increase/(decrease)insupplierpayables ��,��� (3,753)
Increase/(decrease)inemployeeprovisions (�,�0�) 8,514
Increase/(decrease)inunearnedrevenue (�,���) 292
Increase/(decrease)inotherliabilities (�) (72)
Net cash from / (used by) operating activities ��,1�� 55,609
1�0 AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
Note 1�: Contingent Liabilities and Assets
Quantifiable Contingencies
TheScheduleofContingenciesreportscontingentliabilitiesinrespectofclaimsanddamages/costsof$24,000.(2004:$514,000).TheamountrepresentsanestimateoftheAgency’sliabilitybasedonprecedentcases.TheAgencyisdefendingtheclaims.
Unquantifiable Contingencies
Asat30June2005,Customshadanumberoflegalclaimslodgedagainstitfordamagesandcosts.Customshasdeniedliabilityandisdefendingtheclaims.Inaddition,Customshaslodgedanumberofclaimstorecoverdamagescostswhicharealsobeingdefended.Itisnotpossibletoestimatetheamountofanyeventualpaymentsorreceiptsinrelationtotheseclaims.
Further,CustomshasanobligationtoacquireequipmentfromEDSonterminationorexpiryoftheIToutsourcinglease.Itisnotpossibletoestimatetheamountofanyeventualpaymentorreceiptinrelationtothisobligationduetotheuncertaintyofthefuturemarketvalueoftheleasedequipmentonhand.
TheAustralianGovernmenthasenteredintonewcontractualarrangementswithP&OMaritimeServicesfortheprovisionofmaritimecharterservicesuntilJune2006tofacilitatetheAustralianCustomsServiceandtheDepartmentofAgriculture,FisheriesandForestryarmedpatrolsofAustralia’sexclusiveeconomiczoneintheSouthernOcean.
Inrelationtothesepatrols,theAustralianGovernmentwillindemnifyP&OMaritimeServicesagainstcertainclaimsarisingfromthedischargeoffirearmsormunitions,orwhereasteamingpartyisdeployedtocrewaseizedvesselbacktoanAustralianport.
FinancialStatements 1�1
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Note 1�: Executive Remuneration
�00� 2004
Thenumberofexecutiveswhoreceivedorwereduetoreceivetotalremunerationof$100,000ormore:
$100000to$1099991 3
$110000to$119999 1 2
$120000to$129999 � 3
$140000to$149999 � 7
$150000to$159999 1 7
$160000to$169999 � 6
$170000to$179999 � -
$180000to$189999 � 1
$190000to$199999 1 3
$200000to$209999 1 3
$210000to$219999 � 1
$220000to$229999 1 -
$240000to$249999 - 1
$250000to$259999 1 -
$260000to$269999 1 1
$400000to$409999 - 1
$440000to$449999 1 -
$ $
Theaggregateamountoftotalremunerationofexecutivesshownabove. �,���,��� 6,536,379
Theaggregateamountofseparationandredundancy/terminationbenefitpaymentsduringtheyeartoexecutivesshownabove. �1�,0�� 273,155
Note 1�: Remuneration of Auditors�00� 2004
$ $
Financialstatementauditservicesareprovidedfreeofchargetotheagency.Thefairvalueoftheservicesprovidedwas: ��0,000 520,000
Duringtheyearended30June2005,theANAOperformedareviewofthe2004–05openingbalancesasaresultoftheimplementationoftheAustralianEquivalentstoInternationalFinancialReportingStandards(AEIFRS).Asatreportingdate,theconversionofthe30June2005resultstoAEIFRScompliantstatementswasstillinprogress.Thevalueof$580,000aboveincludesservicestobeprovidedbytheANAOonthereviewoftheAEIFRS30June2005compliantstatements.
NootherserviceswereprovidedbytheAuditor-General.
Note 1�: Average Staffing Levels�00� 2004
TheaveragestaffinglevelsforthebusinessoperationandtheAgencyduringtheyearwere: �,��� 4,690
1�� AustralianCustomsServiceAnnualReport2004–05
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Note18B:NetFairValuesofFinancialAssetsandLiabilities
�00� 2004
Total Carrying Amount
Aggregate Net Fair Value
TotalCarryingAmount
AggregateNetFairValue
Notes $’000 $’000 $’000 $’000
Departmental
Financial Assets
Cashatbank 7A 1�,0�� 1�,0�� 24,097 24,097
Receivablesforgoodsandservices(net) 7B �,�01 �,�01 3,944 3,944
GoodsandServicesTaxreceivable 7B �,��� �,��� 7,513 7,513
Appropriationsreceivable 7B ��,1�� ��,1�� 11,719 11,719
Total Financial Assets 111,0�� 111,0�� 47,273 47,273
Financial Liabilities (Recognised)
Financeleaseliabilities 9A �,��� �,��� 7,928 7,928
Tradecreditorsandaccruedexpenses 11A ��,��� ��,��� 25,347 25,347
Total Financial Liabilities (Recognised) ��,��� ��,��� 33,275 33,275
Financial assets
Thenetfairvaluesofcashandnon-interest-bearingmonetaryfinancialassetsapproximatetheircarryingamounts.
Financial liabilities
Thenetfairvaluesfortradecreditorsandaccruedexpensesareapproximatedbytheircarryingamounts.
Thenetfairvaluesoffinanceleasesarebasedupondiscountedcashflowsusingtheinterestrateimplicitinthelease.
Note18C:CreditRiskExposures
CustomsmaximumexposurestocreditriskatreportingdateinrelationtoeachclassofrecognisedfinancialassetsisthecarryingamountofthoseassetsasindicatedintheStatementofFinancialPosition.
Customshasnosignificantexposurestoanyconcentrationsofcreditrisk.
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
�00� 2004
$’000 $’000
Note 1�: Revenues Administered on Behalf of Government
Taxation Revenue
Customsduty �,��0,�0� 5,654,751
Othertaxes
PassengerMovementCharge ���,��1 329,786
Importprocessinganddepotcharges 1��,��0 119,700
Total Taxation Revenue �,0��,�0� 6,104,237
Non-Taxation Revenue
Interest
Deposits �1� 39
Other Revenues
Othernon-taxationrevenue 11,0�� 7,511
Total non-taxation revenue 11,��1 7,550
Total Revenues Administered on Behalf of Government �,0��,��� 6,111,787
Somefiguresin2003–04(designatedin Italics)havebeenre-classifiedforamoremeaningfulcomparisonwithfiguresin2004–05.
FinancialStatements 1��
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�00� 2004
$’000 $’000
Note �0: Expenses Administered on Behalf of Government
Receivables – Provision for Doubtful Debts
Doubtfuldebts 1,��� 17,406
Bad Debts Written-off
Debtswritten-off �,�11 5,469
Import Credits
ACIScreditsappliedonduty ��1,0�� 586,861
Other Expenses
Otherexpenses ��� 248
Total Expenses Administered on Behalf of Government ���,��� 609,984
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
�00� 2004
$’000 $’000
Note �1: Assets Administered on Behalf of Government
Financial Assets
Cash
Cashonhand ��� 289
Cashatbank 1�� -
Specialaccounts �,��� 2,785
Total cash �,��1 3,074
Receivables
Goodsandservices ��,��� 37,244
Othertaxes ��,��1 50,840
Othernontaxationrevenue 1�,��� 12,069
Less:Provisionfordoubtfuldebts (�0,���) (28,832)
Total receivables (net) ��,��� 71,321
Receivables(gross)areagedasfollows:
Notoverdue ��,��� 65,228
Overdueby:
Lessthan30days 1,1�� 4,046
30to60days 1,��� 529
60to90days 1�� 214
Morethan90days �0,��� 30,136
Total receivables (gross) 10�,�1� 100,153
Theprovisionfordoubtfuldebtsisagedasfollows:
Notoverdue - -
Overdueby:
Morethan90days �0,��� 28,832
Total provision for doubtful debts �0,��� 28,832
Inventories
Inventoriesheldforsale �� 163
Total Inventories �� 163
Total Assets Administered on Behalf of Government �0,��� 74,558
FinancialStatements 1��
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�00� 2004
$’000 $’000
Note ��: Liabilities Administered on Behalf of Government
Other Interest Bearing Liabilities
Otherdebt �,��� 2,785
Payables
Othertaxes �,��� 4,454
Special Accounts
Securitiesandotherspecialaccountbalances �,�1� 12,683
Total Liabilities Administered on Behalf of Government 1�,��� 19,922
Allliabilitiesareexpectedtobesettledwithin12monthsofbalancedate.
1�� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
�00� 2004
$’000 $’000
Note ��: Administered Reconciliation Table
Opening administered assets less administered liabilities as at 1 July ��,��� 58,423
Adjustmentstoretainedearningsduetorecognitionofspecialaccounts (��) 12,075
Revised Total ��,��0 70,498
Plus:AdministeredRevenues �,0��,��� 6,111,787
Less:AdministeredExpenses (���,���) (609,984)
Administeredtransfersto/fromAustralianGovernment
AppropriationtransfersfromOPA ��0,�1� 307,049
TransferstoOPA (�,���,0��) (5,824,714)
NetDrawingsfromOPAonbehalfoftheATO* �0,1�� 56,913
NetPaymentsonbehalfoftheATOoutofSpecialAppropriations* (�0,1��) (56,913)
Closing administered assets less administered liabilities as at �0 June �00� ��,1�0 54,636
*TheAustralianTaxationOfficeistheresponsibleentityfortheseappropriationsandthesubsequentreturns.Asanewclassificationonthisschedule,figuresin2003–04(designatedin italics)havebeenclassifiedforamoremeaningfulcomparison.
Note ��: Administered Contingent Liabilities and Assets
Quantifiable Administered ContingenciesQuantifiableAdministeredContingenciesthatarenotremotearedisclosedintheScheduleofAdministeredItemsasQuantifiableAdministeredContingencies.
Unquantifiable Administered ContingenciesAsat30June2005,Customshadanumberoflegalclaimslodgedagainstitfordamagesandcosts.Customshasdeniedliabilityandisdefendingtheclaims.Inaddition,Customshaslodgedanumberofclaimstorecoverdamagesandcostswhicharealsobeingdefended.Itisnotpossibletoestimatetheamountsofanyeventualpaymentsorreceiptsinrelationtotheseclaims.
Remote Administered ContingenciesAsat30June2005,Customshadanumberoflegalclaimsfordamagesthatmayresultinagainof$895,413(2004:$1,354,218).
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�00 AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
Note25B:NetFairValuesofFinancialAssetsandLiabilities
�00� 2004
Total carrying amount
Aggregate Net Fair Value
TotalCarryingAmount
AggregateNetFairValue
Notes $’000 $’000 $’000 $’000
Administered
Financial Assets
Cashatbank 21 �,��1 �,��1 3,074 3,074
Receivablesforcustomsduty&other(net) 21 ��,��� ��,��� 71,321 71,321
Total Financial Assets �0,��� �0,��� 74,395 74,395
Financial Liabilities (Recognised)
Customsdutyrefundavailable 22 �,��� �,��� 4,454 4,454
Securities&otherspecialaccountbalances 22 �,�1� �,�1� 12,683 12,683
Otherinterestbearingliabilities 22 �,��� �,��� 2,785 2,785
Total Financial Liabilities (Recognised) 1�,��� 1�,��� 19,922 19,922
Financial assets
Thenetfairvaluesofcashandnon-interest-bearingmonetaryfinancialassetsapproximatetheircarryingamounts.
Financial liabilities
Thenetfairvaluesofliabilitiesareapproximatedbytheircarryingamounts.
Note25C:CreditRiskExposures
TheGovernment’smaximumexposurestocreditriskatreportingdateinrelationtoeachclassofrecognisedadministeredfinancialassetsisthecarryingamountofthoseassetsasindicatedintheScheduleofAdministeredItems.
TheGovernmenthasnosignificantexposurestoanyconcentrationsofcreditrisk.
Allfiguresforcreditriskreferredtodonottakeintoaccountthevalueofcollateralorothersecurity.
FinancialStatements �01
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Note ��: Appropriations
Note26A:AcquittalofAuthoritytoDrawCashfromtheConsolidatedRevenueFund(CRF)forOrdinaryAnnualServicesAppropriations
Particulars Administered Expenses
Departmental Total
Outputs
Outcome 1
Year ended �0 June �00� $ $ $
Balancecarriedfrompreviousyear ��,000 ��,���,�1� ��,���,�1�
Adjustments to opening balance - (10,��1,000) (10,��1,000)Reductionsofappropriations(prioryear)2003–04 (��,000) - (��,000)
AdjustedBalancecarriedforpreviousperiod - 1�,1��,�1� 1�,1��,�1�
AppropriationAct(No.1)2004–2005 ��0,000 �0�,�1�,000 �0�,���,000
AppropriationAct(No.3)2004–2005 - ��,���,000 ��,���,000
Refundscredited(FMAAs30) - ���,��� ���,���
Sub-total2004–05AnnualAppropriations ��0,000 ���,���,��� ���,0��,���
AppropriationstotakeaccountofrecoverableGST(FMAAs30A) - ��,��1,��� ��,��1,���
Annotationsto‘netappropriations’(FMAAs31) - ��,��0,0�� ��,��0,0��
Appropriationlapsedorreduced (��,110) - (��,110)
TotalAppropriationsavailableforpayments ���,��0 ���,��1,��� ���,�0�,���
Cashpaymentsmadeduringyear(GSTinclusive) (���,��0) (�0�,���,0��) (�0�,1��,���)
Balance of Authority to Draw Cash from the CRF for Ordinary Annual Services Appropriations - ��,0��,��� ��,0��,���
Represented by:
Cashatbankandonhand - �,0��,��� �,0��,���
Receivable–departmentalappropriations - ��,���,000 ��,���,000
Receivables–GSTreceivablefromcustomers - - -
Receivables–GSTreceivablefromATO - �,���,��� �,���,���
Total - ��,0��,��� ��,0��,���
Reconciliation for Appropriation Acts (No.1 and 3)
PaidtotheentityfromtheOPA ���,��0 �1�,���,000 �1�,11�,��0
NotdrawnfromtheOPA ��,110 ��,���,000 ��,���,110
Total Appropriation Acts ��0,000 ���,���,000 ���,���,000
�0� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatementsfor the year ended 30 June 2005
Particulars Administered Expenses
Departmental Total
Outputs
Outcome 1
Year ended �0 June �00� (comparative period) $ $ $
Balancecarriedfrompreviousyear 34,686 20,108,972 20,143,658
Less:estimatedadministeredappropriationlapsed02–03 (34,686) - (34,686)
Adjusted Balance carried for previous period - 20,108,972 20,108,972
AppropriationAct(No.1)2003–2004 280,000 586,836,000 587,116,000
AppropriationAct(No.3)2003–2004 - 4,718,000 4,718,000
AppropriationstotakeaccountofrecoverableGST(FMAAs30A) - 33,887,000 33,887,000
Annotationsto‘netappropriations’(FMAAs31) - 80,250,135 80,250,135
Totalappropriationsavailableforpayments 280,000 725,800,107 726,080,107
Paymentsmadeduringtheyear(GSTinclusive) (248,000) (696,904,794) (697,152,794)
AppropriationscreditedtoSpecialAccounts - - -
Balance carried to the next year 32,000 28,895,313 28,927,313
FinancialStatements �0�
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-
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Appr
opria
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(No.
2)2
004–
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-
-
19,
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-
-
-
19,
471,
000
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opria
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(No.
4)2
004–
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-
-
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-
-
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672,
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opria
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duce
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nce
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tyLo
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esen
ted
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at
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-
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l-
-
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-
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�0� AustralianCustomsServiceAnnualReport2004–05
Partic
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sAd
min
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com
e 1
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-ope
ratin
gTo
tal
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) $
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ance
car
ried
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,000
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,000
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opria
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(No.
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2003
–200
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opria
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(No.
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–200
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stm
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opria
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opria
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opria
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edited
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ialA
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nanc
ialSt
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ar e
nded
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200
5
-
FinancialStatements �0�
Fina
ncia
l st
atem
ents
NotestoandformingpartoftheFinancialStatements
Note26C:AcquittalofAuthoritytoDrawCashfromtheConsolidatedRevenueFund–SpecialAppropriations(UnlimitedAmount)
Investment of Public Money: �00� $
2004$Special Appropriations under section �� of the FMA Act (Administered)
Amountinvestedcarriedfrompreviousperiod �,���,��� 2,677,137
Prioryearinvestmentsredeemedincurrentyear - -
Investmentsmadeduringtheyear 1�1,10� 128,166
Redemptionsofcurrentyearinvestments (�1�) (20,519)
Amountinvestedcarriedtothenextperiod(sumoftheabove) �,���,��0 2,784,784
Budget estimate 110,000 354,000
Financial Management and Accountability Act 1��� – Section �� (Repayments Required or Permitted by Law) (Administered)
�00� $
2004$
Cashpaymentsmadeduringtheyear* �1�,��1,��� 245,561,624
AppropriationscreditedtoSpecialAccounts - -
Refundscredited(net)(FMAs30) - -
Totalchargedtospecialappropriation �1�,��1,��� 245,561,624
Budget estimate (FMA s28) �0�,100,000 301,245,000
*TheAustralianTaxationOfficeisresponsiblefor$9,845,716ofthisappropriationrelatingtoGST(onimports),WET,LCTandSalesTax.
Australian Customs Act 1�01 – Section �AB – Reasonable amount of compensation for acquisition of property (Administered)
�00� $
2004$
Cashpaymentsmadeduringtheyear - -
AppropriationscreditedtoSpecialAccounts - -
Refundscredited(net)(FMAs30) - -
Totalchargedtospecialappropriation - -
Budget estimate - -
Taxation Administration Act 1��� – Section 1� – Refunds of receipts to individuals under the Tourist Refund Scheme (Administered). TheAustralianTaxationOfficeistheresponsibleentityforthisappropriation.
�00� $
2004$
Cashpaymentsmadeduringtheyear �0,���,1�� 45,729,398
AppropriationscreditedtoSpecialAccounts - -
Refundscredited(net)(FMAs30) - -
Totalchargedtospecialappropriation �0,���,1�� 45,729,398
Budget estimate (as this is a new disclosure requirement, there is currently no budget estimate available for this). N/A N/A
Somefiguresin2003–04(designatedin Italics)havebeenre-classifiedforamoremeaningfulcomparisonwithfiguresin2004–05.
�0� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
Note26D:SpecialAccounts
�00� 2004
$ $
Other Trust Reserve (Administered)
Legal Authority: Financial Management & Accountability Act 1997: s20
Purpose: For the receipt of moneys temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth
Balancecarriedfrompreviousyear �,���,��� 5,940,780
Otherreceipts ���,01� 1,216,440
Adjustmenttoopeningbalance - -
Availableforpayments �,�00,��� 7,157,220
Paymentsmadetosuppliers (�,���,���) (1,223,771)
Balance carried to next year �,0��,��� 5,933,449
Represented by:
CashoncallheldintheOPA �,0��,��� 5,933,449
Total �,0��,��� 5,933,449
Tradegate Fees (Administered)
Legal Authority: Financial Management & Accountability Act 1997: s20
Purpose: For expenditure on payments to Tradegate Australia Ltd of fees collected by Customs for users of the Tradegate Network
Balancecarriedfrompreviousyear ���,��� 282,562
Receiptsfromothersources(Tradegate) 1�,�0�,��1 12,461,725
ReceiptsfromTradegateGST 1,���,��� 1,232,172
Availableforpayments 1�,���,0�� 13,976,459
Paymentsmadetosuppliers (1�,���,���) (13,589,131)
Balance carried to next year 1��,�0� 387,328
Represented by:
CashoncallheldintheOPA 1��,�0� 387,328
Total 1��,�0� 387,328
Security Deposits Reserve (Administered)
Legal Authority: Financial Management & Accountability Act 1997: s20
Purpose: For expenditure dealing with moneys required to be lodged under Section 42 and 162 of the Customs Act 1901
Balancecarriedfrompreviousyear �,��1,��0 7,640,227
Otherreceipts–securitydeposits �,��0,��0 7,283,359
Adjustmentstoopeningbalance - -
Availableforpayments 1�,���,�00 14,923,586
Paymentsmadetosuppliers (�,���,�1�) (8,561,656)
Balance carried to next year �,�0�,��� 6,361,930
Represented by:
CashoncallheldintheOPA �,�0�,��� 6,361,930
Total �,�0�,��� 6,361,930
FinancialStatements �0�
Fina
ncia
l st
atem
ents
�00� 2004
$ $
Industry Related Systems Development Fund (Administered)
Legal Authority: Financial Management & Accountability Act 1997: s20
Purpose: For expenditure on industry related development of Customs Service
Balancecarriedfrompreviousyear �,���,��� 2,677,137
Receiptsfromotherservices 1�1,10� 128,166
Availableforpayments �,���,��� 2,805,303
Paymentsmadetosuppliers (�1�) (20,519)
Balance carried to next year �,���,��0 2,784,784
Represented by:
CashoncallheldintheOPA �,���,��0 2,784,784
Total �,���,��0 2,784,784
Services for Other Government and Non-Government Bodies Reserve (Administered)
Legal Authority: Financial Management & Accountability Act 1997: s20
Purpose: For expenditure in connection with services performed on behalf of other Governments and bodies that are not FMA agencies
Balancecarriedfrompreviousyear - -
Receiptsfromotherservices - -
Availableforpayments - -
Paymentsmadetosuppliers - -
Balance carried to next year - -
Represented by:
CashoncallheldintheOPA - -
Total - -
NotestoandformingpartoftheFinancialStatements
�0� AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
�00� 2004
$’000 $’000
Note ��: Specific Payment Disclosures
No‘ActofGrace’expenseswereincurredduringthereportingperiod.(2004:Noexpenses) Nil Nil
NowaiverofamountsowingtotheCommonwealthweremadepursuanttosubsection34(1)oftheFinancial Management and Accountability Act 1997 (2004:Nowaivers) Nil Nil
Noex-gratiapaymentswereprovidedforduringthereportingperiod(2004:Nopaymentsmade) Nil Nil
Nopaymentsweremadeunderthe‘DefectiveAdministrationScheme’duringthereportingperiod.(2004:Nopaymentsmade) Nil Nil
Nopaymentsweremadeunders73ofthePublic Service Act 1999duringthereportingperiod.(2004:Nopaymentsmade) Nil Nil
FinancialStatements �0�
Fina
ncia
l st
atem
ents
NotestoandformingpartoftheFinancialStatements
Note ��: Reporting of Outcomes
Note28A:NetCostofOutcomeDelivery
Outcome 1 Total
�00� 2004 �00� 2004
$’000 $’000 $’000 $’000
Administeredexpenses ���,��� 609,984 ���,��� 609,984
Departmentalexpenses ���,1�� 800,606 ���,1�� 800,606
Total expenses 1,��0,��� 1,410,590 1,��0,��� 1,410,590
Costs recovered from provision of goods and services to the non government sector
Administered ���,�01 449,486 ���,�01 449,486
Departmental 11,�1� 12,596 11,�1� 12,596
Total costs recovered �0�,�1� 462,082 �0�,�1� 462,082
Other external revenues
Administered
Duty �,���,��0 5,652,564 �,���,��0 5,652,564
Duty(inter-government) �,��� 2,187 �,��� 2,187
Interestonloans �1� 39 �1� 39
Other 11,0�� 7,511 11,0�� 7,511
Total Administered �,���,0�� 5,662,301 �,���,0�� 5,662,301
Departmental
Goodsandservicesrevenuefromrelatedentities ��,��1 72,317 ��,��1 72,317
Interestoncashdeposits 1 - 1 -
Revenuefromdisposalofassets ��� 264 ��� 264
Total Departmental ��,��� 72,581 ��,��� 72,581
Total other external revenues �,���,��1 5,734,882 �,���,��1 5,734,882
Net cost/(contribution) of outcome (�,���,���) (4,786,374) (�,���,���) (4,786,374)
Fina
ncia
l st
atem
ents
�10 AustralianCustomsServiceAnnualReport2004–05
NotestoandformingpartoftheFinancialStatements
Note28B:MajorClassesofDepartmentalRevenuesandExpensesbyOutputGroupsandOutputs
Outcome 1 Output 1 Output � Output �
�00� 2004 �00� 2004 �00� 2004
$’000 $’000 $’000 $’000 $’000 $’000
Departmental expenses
Employees 1��,1�� 148,490 ��,��0 64,735 ��,��0 22,768
Suppliers 1��,�11 114,444 �1,01� 34,406 ���,��� 229,472
Depreciationandamortisation 1�,�1� 15,304 �,��0 4,215 �,��� 4,553
Otherexpenses 1,10� 2,548 1�� 1,079 ��1 360
Total departmental expenses ���,��� 280,786 11�,��� 104,435 �0�,��� 257,153
Funded by:
Revenuesfromgovernment ���,��� 273,139 1��,�1� 101,592 1��,��� 98,895
RRFOCforCoastwatch - - - - 1��,�1� 129,490
Saleofgoodsandservices - 6,626 - 2,465 ��0 28,399
Othernon-taxationrevenues �,11� 3,732 1,��1 1,388 �,10� 1,615
Total departmental revenues ���,�10 283,497 1��,��� 105,445 �1�,��0 258,399
Outcome 1 Output � Output � Outcome Total
�00� 2004 �00� 2004 �00� 2004
$’000 $’000 $’000 $’000 $’000 $’000
Departmental expenses
Employees ��,�1� 80,763 �,��� 3,768 ���,��� 320,524
Suppliers ��,�1� 66,825 �,�1� 1,959 ���,��� 447,106
Depreciationandamortisation �,��� 4,016 10� 110 ��,��0 28,198
Otherexpenses ��� 736 (���) 54 �,��� 4,777
Total departmental expenses 1��,��0 152,340 �,�1� 5,891 ���,1�� 800,605
Funded by:
Revenuesfromgovernment 110,0�� 112,198 �,11� 5,730 ���,��� 591,554
RRFOCforCoastwatch - - - - 1��,�1� 129,490
Saleofgoodsandservices ��,��� 39,722 - 139 ��,1�� 77,351
Othernon-taxationrevenues 1,��� 1,533 �� 78 �,11� 8,346
Total departmental revenues 1��,1�� 153,453 �,�1� 5,947 ���,�1� 806,741
Outputdepartmentalexpenseshavebeencalculatedusinganactivitybasedcostingmethodology.
FinancialStatements �11
NotestoandformingpartoftheFinancialStatements
Note28C:MajorClassesofAdministeredRevenuesandExpensesbyOutcome
Outcome 1 Total
�00� 2004 �00� 2004
$’000 $’000 $’000 $’000
Administered Revenues
CustomsDuty �,��0,�0� 5,654,751 �,��0,�0� 5,654,751
Othertaxes ���,�01 449,486 ���,�01 449,486
Othernon-taxationrevenues 11,��1 7,550 11,��1 7,550
Total Administered Revenues �,0��,��� 6,111,787 �,0��,��� 6,111,787
Administered Expenses
Importcredits ��1,0�� 586,861 ��1,0�� 586,861
Otherexpenses �,�1� 23,123 �,�1� 23,123
Total Administered Expenses ���,��� 609,984 ���,��� 609,984
Fina
ncia
l st
atem
ents
�1� AustralianCustomsServiceAnnualReport2004–05
Section �Appendixes
Photo:DenisCleverlyandTroyParker,DampierOffice,onpatroltoprotectAustralia’scommunityandwildlife.
Appendix A – Occupational Health and Safety (OH&S)
ThefollowinginformationprovidesdetailsofCustomsresponsestoitslegalobligationsundersection74oftheOccupational Health and Safety (Commonwealth Employment) Act 1991(OH&SAct).
Section ��(1)(C) Customs occupational health and safety policy
CustomsintroducedanOH&SPolicyandOH&SManualinJune2004toreinforceOH&Sriskmanagementandtherolesandresponsibilitiesforallstaff.ActivitiestoimplementtheOH&SPolicyandManualincluded:
• awarenesssessionsofferedtostaffandmanagersintheRegionsonthenewpolicyframeworkandtheirnewrolesandresponsibilities
• developmentofabrochure,Hazard Identification and Risk Management,distributedtoallemployees
• developmentandpromotionofanOH&Sonlinelearningmodule
• allstaffmessagesalertingstafftothenewPolicywithlinkstoanIntranetsite.
TheNationalOH&SCommitteeendorsedanewOH&SNationalPlanandOH&SAgreementduringtheyear.RegionalOH&SCommitteesreviewedhealthandsafetyrepresentativenumbersinlinewiththeintroductionofanewvolunteerallowanceintheCertifiedAgreement.Therewerenochangestothecommitteestructureorfunctions,ortheselectionofhealthandsafetyrepresentatives.
Section ��(1)(D) Measures taken during the year to ensure the health, safety and welfare at work of employees and contractors of the department or authority
Customsundertookthefollowingmeasurestoensurethehealth,safetyandwelfareofemployeesandcontractorsthisyear:
• introducedanewOrganisationalHealthProjecttoimproveorganisationalperformance
�1� AustralianCustomsServiceAnnualReport2004–05
• participatedinapilotearlyinterventionprogramwithComcaretoenhanceCustomsabilitytoprovidetimelyassistancetoemployeeswhoareinjuredorill,orhavethepotentialtobecomeinjuredorill.Theoutcomesfromthepilotwillbeusedtodevelopanewabsencemanagementpolicy
• developedseveraltoolkitstoassistmanagersandstafftobetterdealwithpeoplemanagementissuesandtominimiseworkplacestress.Topicsdevelopedincluded: Leading Teams; Managing Change and Managing Work-related Stress and Psychological Injury
• providedasix-monthlyreportonOH&SperformancetotheExecutiveandenhancedthereport’sperformanceindicatorsandformat.KeyoutcomesfromthereportswerealsoprovidedtoallmanagerstohelpraisetheirawarenessofOH&Sperformanceandemergingissues
• developedandimplementedanonlineOH&Sincidentreportingsystem.ThesystemwaslaunchedinApril2005andisdesignedtoefficientlycapturedetailsofallOH&Sincidentsandtosupporteffectivemonitoring,reportingandinvestigationofthoseincidents
• undertookanorganisationalriskassessmentoffirstaidarrangementsandreviewedHealthandSafetyRepresentativearrangements.AVolunteerAllowancewasintroducedinthe2004–2007CertifiedAgreementtorewardthoseemployeesappointedasHealthandSafetyRepresentatives
• implementedarangeofstrategiestopromotehealthandwellbeingsuchashealthseminars,healthandfitnesstestingandfluvaccinations.
Section ��(1)(E) Notifications under section �� of the OH&S Act
Therewere13notificationstoComcareofaccidentsordangerousoccurrencesin2004–05undersection68oftheOH&SAct.Detailedinvestigationswereundertakenintowhatoccurredandwhyandappropriatechangeswereimplementedtopreventrecurrence.
Section ��(1)(F) Directions under section �� of the OH&S Act
Therewerenodirectionsornotificationsthattheworkplacenotbedisturbedundersection45oftheOH&SAct.
Section ��(1)(F) Notifications under sections ��, �� and �� of the OH&S Act
TherewerenonotificationsmadeunderthesesectionsoftheOH&SActin2004–05.NoProvisionalImprovementNoticeswereposted.
Appe
ndix
A
OH&
S
AppendixA–Occupationalhealthandsafety �1�
�1� AustralianCustomsServiceAnnualReport2004–05
Appendix B – Freedom of Information
Thisappendixprovidesinformationrequiredundersection8oftheFreedom of Information Act 1982(FOIAct),whichstipulatesthatagenciesmustreportannuallyon:
• theorganisation,functionsanddecisionmakingpowersoftheagency
• arrangementsforpublicinvolvementintheworkoftheagency
• typesofdocumentsheldbytheagency
• whereandhowthepubliccangainaccesstothesedocuments.
Functionsandpowers
CustomsispartoftheAttorney-General’sportfolio.
Customsprovideseffectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementacrosstheborder,raisesrevenueandprovidestradestatistics.
ResponsibilityforadministeringarangeoftaxandenforcementlegislationisvestedbyParliamentintheCEO.TheCEO’sauthoritytoadministerCustomsiswrittenintotherelevantlaw,asaretheCEO’sgeneralresponsibilities,discretionarypowersandrights.
FurtherinformationontheorganisationandfunctionsofCustoms,andalistofCommonwealthlegislationunderwhichCustomshaspowers,canbefoundintheOverviewofCustomsfrompage6.
Arrangementsforparticipation
CustomshasformalandinformalconsultativemechanismsinplacetoalloworganisationsandpeopleoutsidetheFederalGovernmenttoparticipateintheformulationandadministrationofpolicybyCustoms.MembersofthepubliccanvoicetheiropinionsinletterstotheMinisterforJusticeandCustoms,SenatortheHonChrisEllison,ParliamentHouse,Canberra,ACT2600.
TheCustomsNationalConsultativeCommitteeisthemajorforumforregularconsultationwithindustrybodies.Furtherinformationisonpage100.
InformalfeedbackfromclientsandotherinterestedpartiesaboutthedecisionsandactionsofCustomsisencouragedintheformoftheComplaintsandComplimentsSystem.Furtherinformationisonpage124.
Customsalsofollowsapracticeofinvitingcommentonsignificantpolicyissuesbeforedecisionsaremade.Thisincludesconsultingwithrelevantindustrygroupsandwelcomingfeedbackfromotherinterestedparties.
Types of documents
Customsholdsdocumentsonawiderangeoftopics,whicharebroadlycategorisedas:
• agendas,minutes,generalcorrespondenceandpapers
• internaladministrationpapers(includingresearchandprojectreports,accountingandfinancialrecords,legalrecords,andstaffandstaffingrecords)
• manualsandtrainingmaterials(includingvideotapes,guidelines,directionsandadministrativeinstructionsrelatingtoCustomsoperationsandlegislativeprocedures.Thisalsoincludessomepublicationspreparedfortheguidanceofstaffandthebusinesscommunitytoassistindecision-making)
• briefingpapers(includingbriefs,submissionsandreportstotheCustomsExecutiveandtheMinisterforJusticeandCustoms.Thesegenerallyrelatetopolicydevelopmentandbackgroundtoparticularadministrativedecisions)
• databaserecords(includingcomputerfiles,printouts,pre-printedformsandstatisticaltabulations).
Availability of documents to members of the public
SomedocumentsaregenerallyavailablewhileothersareavailableundertheFOIAct.
ManyofthedocumentsheldbyCustomsareavailableforfreeonrequest,including:
• annualreports
• corporateplansandotherassociatedplanningdocuments
• arangeoffactsheets,brochuresandbookletsincludinginformationonimportingandexportinggoods,informationforpeopletravellingoverseasanddetailsonindustryassistanceschemes
• AustralianCustomsNotices
• AustralianCustomsDumpingNotices.
Toensureatransparentprocessinwhichallinterestedpartieshavethemaximumopportunitytodefendtheirinterests,Customsalsomaintainsapublicfileforallanti-dumpingandcountervailinginvestigationsandreviews.
SomedocumentsheldbyCustomsareavailableforpurchase,including:
• DumpingCommoditiesRegister
• AustralianCustomsTariffGuide
• ScheduleofCommercialTariffConcessionOrders
• CombinedAustralianCustomsTariffNomenclatureStatisticalClassification.
Alistofdocumentsavailabletothepublicforinspectionorpurchaseundersection9oftheFOIActcanbefoundontheCustomsInternetsite.
DocumentsavailabletothepublicaregenerallyavailableontheCustomsInternetsiteorbycallingtheCustomsInformationandSupportCentreon1300363263duringbusinesshours.
Applicationsforaccesstodocuments,includingthosenotgenerallyavailabletothepublic,canbemadeundertheFOIAct.
Freedom of information inquiries
InquiriesregardingFreedomofInformationcanbemadebycontactingtheFreedomofInformationCoordinatorbytelephoning(02)62756666orbywritingto:
CentralOfficeFreedomofInformationCoordinatorCustomsHouse5ConstitutionAvenueCanberraACT2600foicoordinator@customs.gov.au
NewSouthWalesFreedomofInformationCoordinatorCustomsHouse10CooksRiverDriveSydneyInternationalAirportSydneyNSW2020
VictoriaFreedomofInformationCoordinatorCustomsHouse414LaTrobeStreetMelbourneVIC3000
QueenslandFreedomofInformationCoordinatorTerricaPlace140CreekStreetBrisbaneQLD4000
SouthAustraliaFreedomofInformationCoordinatorCustomsHouse220CommercialRoadPortAdelaideSA5015
WesternAustraliaFreedomofInformationCoordinatorCustomsHouse2HenryStreetFremantleWA6959
NorthernTerritoryFreedomofInformationCoordinatorCustomsHouse21LindsayStreetDarwinNT0800
TasmaniaFreedomofInformationCoordinatorFirstFloorMBFBuilding25ArgyleStreetHobartTAS7000
Inquiriescanbemadebyletter,telephoneorinperson.Emailinquiriesmaybesenttofoicoordinator@customs.gov.au.FreedomofInformationrequestsmustbemadeinwritingandshouldincludetelephonecontactnumbersandareturnAustralianaddress.A$30applicationfeeoraremissionrequestmustaccompanyeachrequest.
Appe
ndix
B
Free
dom
ofin
form
atio
n
AppendixB–FreedomofInformation �1�
Appendix C – Advertising and market research
Expenditureonadvertisingandmarketresearch,asoutlinedinsection311AoftheCommonwealth Electoral Act 1918,isshownbelow.
• HMABlazeistheCommonwealth'scontractedAdvertisingAgencyandusedbyCustomsforadvertisingoftheCustomsHotline,staffing,publicnoticesandCMR.
(a)$902229.48(HMABlaze2003–04)
(b)$872342.04(HMABlaze2004–05)
• CustomscommissionedACNielsentoconductasurveyofSmartGateusersinMelbourneandSydney.TheuserswereQantasaircrewandPlatinumandChairman'sClubfrequentflyerswhovolunteeredtoenrolinthetrial.Thesurveycost$63140(incGST)andwaspaidinMarch2005.
�1� AustralianCustomsServiceAnnualReport2004–05
Appendix D – Administrative Appeals Tribunal and Administrative Decisions (Judicial Review) Act 1977
Figure ��: Administrative Appeals Tribunal applications for review (s��)
�00�–0� �00�–0� �00�–0�
TariffClassification 17 131^ 14#
Valuation(nowincludesOrigin) 13* - 6
TariffConcessions 6 1 2
Refunds - 1 -
AdministrativePenalties 3 2 -
FreedomofInformation 1 2 4
Other 4 7 4
Total �� 1�� �0
* 11oftheseapplicationsrelatetooneissue
^122oftheseapplicationsrelatetooneissue
# 8oftheseapplicationsrelatetooneissue
Figure ��: Administrative Appeals Tribunal requests for reasons (s��)
�00�–0� �00�–0� �00�–0�
TariffClassification - - -
Valuation/Origin - - -
TariffConcessions 1 - -
Refunds - - -
AdministrativePenalties - - -
FreedomofInformation - - -
Other - - -
Total 1 - -
Figure ��: Administrative Appeals Tribunal decisions handed down
�00�–0� �00�–0� �00�–0�
Customsdecisionsaffirmed 3 6 4
Customsdecisionssetaside 2 5 1
TariffClassification 1 5 1
Valuation/Origin - - -
TariffConcessions - - -
Refunds - - -
AdministrativePenalties - - -
FreedomofInformation - - -
Other 1 - -
Total � 11 �
AppendixD–AdministrativeAppealsTribunalandadministrativedecisions �1�
Appe
ndix
DAAT
&a
dmin
istr
ativ
ede
cisi
ons
Figure ��: Matters resolved before being heard by the Administrative Appeals Tribunal
�00�–0� �00�–0� �00�–0�
Mattersdismissed(s42A) 17 8 12
Matterssettledbyconsent(s42C) 54 21 15
TariffClassification 3 1 12#
Valuation/Origin 48* 10^ -
TariffConcessions 1 3 1
Refunds - - -
AdministrativePenalties 1 2 -
FreedomofInformation - - 1
Other 1 5 1
Total �1 �� ��
* 43oftheseapplicationsrelatetooneissue
^9oftheseapplicationsrelatetooneissue
# 8oftheseapplicationsrelatetooneissue
Figure ��: Federal Court appeals from decisions of the Administrative Appeals Tribunal
�00�–0� �00�–0� �00�–0�
AppealsresolvedinfavourofCustoms 1 2 3
AppealsresolvedagainstCustoms - 1 2
TariffClassification - - -
Valuation/Origin - - 1
Other - 1 1
Total 1 � �
Figure ��: Administrative Decisions (Judicial Review) Act 1��� applications/requests for reasons
�00�–0� �00�–0� �00�–0�
FederalCourtapplicationsforReview 4 4 3
RequestsforStatementofReasons 9 2 3
Total 1� � �
Matterssettledduringtheyear 1 2 4
Matterspending 5 3 2
Figure ��: Federal Court Decisions in Administrative Decisions (Judicial Review) Act 1��� matters
�00�–0� �00�–0� �00�–0�
MattersresolvedinfavourofCustoms 4 1 1
MattersresolvedagainstCustoms 1 2 -
Total � � 1
��0 AustralianCustomsServiceAnnualReport2004–05
Figure ��: Commonwealth Disability Strategy – Regulator role
Indicator Measure Performance
Publiclyavailableinformationonregulationsandquasi-regulationsisavailableinaccessibleformatsforpeoplewithdisabilities.
Percentageofpubliclyavailableinformationonregulationsandquasi-regulationsrequestedandprovidedin:
• accessibleelectronicformats
• accessibleformatsotherthanelectronic.
Averagetimetakentoprovideaccessiblematerialin:
• electronicformat
• formatsotherthanelectronic.
• Allclient-relatedinformationisavailableinhardcopyandontheCustomsInternetsite.DocumentsinhtmlformatorpdffilesproducedinAdobeversion5orlaterarereadablebyJAWSsoftwareforthevisuallyimpaired.
• TheCustomsInformationandSupportCentreprovidedprintedinformation(postedwithinonedayofrequest)andverbaltelephoneadvice(givenimmediately).
• WritteninformationispresentedininclusiveandpositivelanguageandplainEnglishisalwaysused.
• Electronicinformationisavailable24hoursaday7daysaweekviatheCustomsInternetsite.
• Internationallyaccepteddirectionalsignsareusedatairports.
• TTYfacilitiesareavailableasrequired.
• Assistanceisavailableforpeoplewithdisabilitieswhohavedifficultycompletingforms.
• Investigatingofficersdealingwithpeoplewithdisabilitiesusealternativemethodsofcommunicationtoensureinformationisfullyunderstood.
• Aspartofthetrainingofallnewentry-levelCustomsstaff,trainingisprovidedinassistingpeoplewithdisabilities.Trainingfocusesonunderstandingimpairments,disabilities,languagechoices,stereotypingandinterviewprocesses.
Publiclyavailableregulatorycompliancereportingisavailableinaccessibleformatsforpeoplewithdisabilities.
Asabove. • AnnualReportsareavailableinhardcopyandontheCustomsInternetsite.
Appe
ndix
E
Dis
abili
tys
trat
egy
AppendixE–CommonwealthDisabilityStrategy ��1
ThissectionprovidesinformationonCustomsperformanceimplementingtheCommonwealthDisabilityStrategy.
CustomscorerolesinimplementingtheCommonwealthDisabilityStrategy,areasregulator,serviceproviderandemployer.
Appendix E – Commonwealth Disability Strategy
Figure �0: Commonwealth Disability Strategy – Provider role
Indicator Measure Performance
Providershaveestablishedmechanismsforqualityimprovementandassurance.
Evidenceofqualityimprovementandassurancesystemsinplace.
• CustomscontainerexaminationfacilitiesinMelbourne,Sydney,BrisbaneandFremantlehaveallreceivedandmaintainedaccreditationtotheISO9001:2000standard.ArecentlyopenedfacilityinAdelaideisworkingtowardsaccreditationlatein2005.
• TheCustomsBusinessPlanningandPerformanceFrameworkrequiresallworkareastoensurestaffcomplywiththeCustomsWorkplaceDiversityPolicyandAPSValuesandCodeofConduct.
Providershaveanestablishedservicecharterthatspecifiestherolesoftheproviderandconsumerandservicestandardsthataddressaccessibilityforpeoplewithdisabilities.
Establishedservicecharterthatadequatelyreflectstheneedsofpeoplewithdisabilitiesinoperation.
• TheclientservicechartercommitsCustomstoaimingtomakeinformationservicesanddocumentationaccessibleforallclientsregardlessofdisability,languageorculturaldifference.
• Customsfacilitatesthemovementofpeoplewithmobilitylimitationsbyallowingthemtousecrewprocessinglanesandprovidingheadofqueuestatus.
Complaints/grievancemechanisms,includingaccesstoexternalmechanisms,inplacetoaddressissuesandconcernsaboutperformance.
Establishedcomplaints/grievance,includingaccesstoexternalmechanismsinoperation.
• Ageneralcomplaintsandcomplimentssystemisavailabletoallmembersofthepublic.MembersofthepubliccanalsocontacttheCustomsInformationandSupportCentreon1300363263duringbusinesshours.TTYfacilitiesareavailableforthisservice.
• Ananalysisofcomplaintsreceivedduring2004–05indicatesthattherewerenodisability-relatedcomplaints.
��� AustralianCustomsServiceAnnualReport2004–05
Figure �1: Commonwealth Disability Strategy – Employer role
Indicator Measure Performance
Employmentpolicies,proceduresandpracticescomplywiththeDisability Discrimination Act 1992.
Numberofemploymentpolicies,proceduresandpracticesthatmeettherequirementsoftheDisability Discrimination Act 1992.
• AllemploymentpoliciesandproceduresmeettherequirementsoftheDisability Discrimination Act 1992.
• CustomsmaintainsanITpolicyforpeoplewithdisabilities.
Recruitmentinformationforpotentialjobapplicantsisavailableinaccessibleformatsonrequest.
Percentageofrecruitmentinformationrequestedandprovidedin:
• accessibleelectronicformats
• accessibleformatsotherthanelectronic.
Averagetimetakentoprovideaccessiblematerialin:
• electronicformat
• formatsotherthanelectronic.
• AllrecruitmentinformationisavailableinhardcopyandelectronicallyontheCustomsInternetsite.Hardcopyapplicationpacksaredispatchedbystandardpostwithinonedayofreceiptoftherequest.
• Aphonenumberisprovidedforabovebaserecruitmentinquiriesandselectiondocumentationanda1300numberisavailableforbaselevelrecruitment.Additionally,aCustomscontactofficerassistswithjob-specificqueries.TTYfacilitiesarealsoavailable.
• Customsapplicationformsprovideforapplicantstoindicateiftheyhaveadisabilityandrequireanyspecialassistancetoattendselectionactivities.Provisionismadeforthesespecialneedswhererequested.
Agencyrecruitersandmanagersapplytheprincipleof‘reasonableadjustment’.
Percentageofrecruitersandmanagersprovidedwithinformationon‘reasonableadjustment’.
• InformationonreasonableadjustmentisavailableformanagersandotherstaffontheCustomsIntranet.
Traininganddevelopmentprogramsconsidertheneedsofstaffwithdisabilities.
Percentageoftraininganddevelopmentprogramsthatconsidertheneedsofstaff.
• Alltraininganddevelopmentprogramsconsidertheneedsofstaffwithdisabilities.
• Trainingfacilitiesexisttocaterforstaffwithdisabilities.
• Avarietyoftrainingformatsareprovidedwithexaminationsflexiblytailoredtomeetparticipantrequirements.
• Assessmentprocessestakeaccountofspecificneeds.
Appe
ndix
E
Dis
abili
tys
trat
egy
AppendixE–CommonwealthDisabilityStrategy ���
Indicator Measure Performance
Traininganddevelopmentprogramsincludeinformationondisabilityissuesastheyrelatetothecontentoftheprogram.
Percentageoftraininganddevelopmentprogramsthatincludeinformationondisabilityissuesastheyrelatetotheprogram.
• Allrelevanttrainingprogramsincludematerialrelatingtopeoplewithdisabilities.
• TheCustomsDevelopmentProgramprovidesanumberofcompetencystandardsdealingwithdiversity,someofwhichfocusexplicitlyondisabilityissues.
• Customsiscurrentlytriallinganumberofonlinetrainingprograms,severalofwhichcontainsectionsdealingwithdisabilityissues.
Complaints/grievancemechanisms,includingaccesstoexternalmechanisms,inplacetoaddressissuesandconcernsraisedbystaff.
Establishedcomplaints/grievancemechanisms,includingaccesstoexternalmechanismsinoperation.
• Allstaffmayaccessinternaldisputeresolution/reviewprocesses.Staffinvolvedintheseprocesseshaveaccesstoassistanceandinformationthatconsidersdisabilityissues.
• StaffmayalsoaccessexternalmechanismsincludingreviewbytheMeritProtectionCommissionerandlodgingclaimsunderanti-discriminationlegislationtotheHumanRightsandEqualOpportunityCommissioner.
• Generalinformationonworkplaceissuesforpeoplewithdisabilitiesiscollectedthroughbiannualstaffsurveys.Theperformanceassessmentandfeedbacksystemismandatoryforallstaffandencouragesfeedbackonperformanceanddevelopmentissues.
��� AustralianCustomsServiceAnnualReport2004–05
Figure �1: Commonwealth Disability Strategy – Employer role (continued)
Appendix F – Correction of errors
Correctionsforthe2003–04AnnualReportareasfollows:
• Pages3and15ofthe2003–04ReportrefertotheFinancial Transactions Reports Act 1998.Thisshouldhavebeenthe Financial Transactions Reports Act 1988.
• Figure24detailedthecostsincurredin2003–04fortheprovisionofpassengerprocessingservices.TheamountfortheDepartmentofImmigrationandMulticulturalandIndigenousAffairs(DIMIA)of$80.865mwasactuallythetotalfor2002–03,not2003–04.The2003–04costsforDIMIAwerenotavailableatthetimeofpublication.InApril2005,DIMIAreportedthatadoublecountinghadbeendetectedintheActivityBasedCostingdataforsomeprocessandactivitycostsandthattherelevantDIMIAcostsfor2003–04was$68.876m.
AppendixF–Correctionoferrors ���
Appe
ndix
F
Corr
ection
ofer
rors
��� AustralianCustomsServiceAnnualReport2004–05
AppendixF–Correctionoferrors ���
Appe
ndix
C
orre
ctio
nof
err
ors
Section �Glossaryandacronyms
Photo:CustomsOfficer,SeanO’ReillyatSydneyAirportexaminingluggagefortracesofnarcoticsusingionscantechnology.
Glossary and acronyms
AAT AdministrativeAppealsTribunal
ACCC AustralianCompetitionandConsumerCommission
ACIS AutomotiveCompetitivenessandInvestmentsScheme
ACV AustralianCustomsVessel
ADF AustralianDefenceForce
AEEZ AustralianExclusiveEconomicZone
AFIF AustralianFederationofInternationalForwarders
AFMA AustralianFisheriesManagementAuthority
AFP AustralianFederalPolice
AGD Attorney-General’sDepartment
ANZCERTA AustraliaNewZealandCloserEconomicRelationsTradeAgreement
ANAO AustralianNationalAuditOffice
APEC Asia-PacificEconomicCooperation
APS AustralianPublicService
AQIS AustralianQuarantineandInspectionService
ASEAN AssociationofSoutheastAsianNations
ATO AustralianTaxationOffice
AusAID AustralianAgencyforInternationalDevelopment
AUSFTA Australia–UnitedStatesFreeTradeAgreement
AUSTRAC AustralianTransactionReportsandAnalysisCentre
AWA AustralianWorkplaceAgreement
BAGS BaggageActionGeneralStatistics(system)
CACAct Commonwealth Authorities and Companies Act 1997
CBFCA CustomsBrokersandForwardersCouncilofAustralia
CCTV closedcircuittelevision
CEF containerexaminationfacility
CEO ChiefExecutiveOfficer
CI&SC CustomsInformationandSupportCentre
CL CustomsLevel(withreferencetostaffclassifications)
CMR CargoManagementReengineering
CNCC CustomsNationalConsultativeCommittee
COMPILE CustomsOnlineMethodofPreparingInvoicesfromLodgeableEntries–theCustomsbusinessapplicationforCustomsandExciseentrypreparationandprocessing
CSIRO CommonwealthScientificandIndustrialResearchOrganisation
Defence DepartmentofDefence
DFAT DepartmentofForeignAffairsandTrade
DHEA dehydroepiandrosterone–alsoknownasprasterone,aperformance-enhancingdrug
DIMIA DepartmentofImmigrationandMulticulturalandIndigenousAffairs
DITR DepartmentofIndustry,TourismandResources
DoFA DepartmentofFinanceandAdministration
DOTARS DepartmentofTransportandRegionalServices
��� AustralianCustomsServiceAnnualReport2004–05
Glo
ssar
y an
d ac
rony
ms
dutyforgone Importdutythatwouldhavebeencollectedifaconcessionalschemehadnotbeenusedanddutyhadbeenpaidatthegeneraltariffrate
ECP entrycontrolpoint—adesignatedpointatanairorseaport,whereinternationalpassengersaresubjecttoCustomsandimmigrationformalitiesorprocedures,beforelegalentryintoAustralia
ecstasy MDMA–3,4-methylenedioxymethamphetamine
EDI ElectronicDataInterchange—anautomatedpaperlesssystemthatpermitstransmissionofinvoices,purchaseorders,andotherbusinessrecords,inastandardelectronicformat,betweencorporations,overacomputernetwork.
EDIFICE ElectronicDataInterchangeforInputofCustomsEntries–theCustomsbusinessapplicationforelectronicfundstransferofimportandexcisedutiespayable
EDS EDSAustralia(informationtechnologyserviceprovider)
EFS ExportFacilitationScheme
EL ExecutiveLevel
EXIT ExportIntegrationsystem–theCustomsinformationsystemforprocessingexportentriesandmanifests
FATF FinancialActionTaskForce
FFV foreignfishingvessel
FOB freeonboard.Thetermdefinesthecostofthegoodsincludinganycartagecosts,etc.,incurredinplacinggoodsonboardavesselattheplaceofexport.Thegoodsareplacedonboardashipbythesellerataportofshipmentnamedinthesalescontract.Theriskoflossordamagetothegoodsistransferredfromthesellertothebuyerwhenthegoodspasstheship’srail.Thecustomsvalueofimportedgoodsincludesalltransportrelatedcostsincurredbeforethegoodsleavetheplaceofexport,whichthepurchasermustpaytothevendorasaconditionofthetransactionforthegoods.Inpractice,thismeansthatanycostsforinlandfreightandinlandinsuranceincludedinthevendor’sinvoicepriceforthegoods,formpartoftheCustomsvalue—providedthesetransportrelatedcostsareincurredbeforethegoodsleavetheplaceofexportinthecountryofexportation.(Refer:s154(1)Customs Act 1901)
FOIAct Freedom of Information Act 1982
FTA FreeTradeAgreement
FTE full-timeequivalent
GST goodsandservicestax
HDPE highdensitypolyethylene
HOCOLEA HeadsofCommonwealthOperationalLawEnforcementAgencies
‘ice’ methamphetamine
ICS IntegratedCargoSystem
IGCD IntergovernmentalCommitteeonDrugs
IMO InternationalMaritimeOrganization
INTERCEPT InformationNetworktoEnhanceResponse,Control,EnforcementandPreventionTechniquessystem
Ionscan traceparticledetector
IT informationtechnology
Glossaryandacronyms ���
��0 AustralianCustomsServiceAnnualReport2004–05
IUU illegal,unregulatedandunreported(fishing)
LCT luxurycartax
LLDPE linearlowdensitypolyethylene
MDMA 3,4-methylenedioxymethamphetamine–alsoknownasecstasy
NAIDOC NationalAboriginalandIslanderDayObservanceCommittee
NCBLAC NationalCustomsBrokersLicensingAdvisoryCommittee
NDARC NationalDrugandAlcoholResearchCentre
NDLERF NationalDrugLawenforcementResearchFund
NICNAS NationalIndustrialChemicalNotificationandAssessmentScheme
NPPC NationalPassengerProcessingCommittee
OH&S occupationalhealthandsafety
OCO OceaniaCustomsOrganisation
OECD OrganisationforEconomicCooperationandDevelopment
PAF performanceassessmentandfeedback–performancereviewscheme
PIED PerformanceandImageEnhancingDrug
PMC PassengerMovementCharge–achargeplacedonindividualsleavingAustralia
PM&C DepartmentofthePrimeMinisterandCabinet
PVC polyvinylchloride
RAAF RoyalAustralianAirForce
SES SeniorExecutiveService
SIEV suspectillegalentryvessel
SUNC suspectunlawfulnon-citizen
TAFTA Thailand-AustraliaFreeTradeAgreement
TARCON TariffConcessions(system)
TAPIN TariffandPrecedentInformationNetwork–thissystemholdsalldetailsabouttheCustomsimporttariff,andalsorecordsdetailsofallrequestsforTariffAdviceNotices
TEU twenty-footequivalentunit
TMRO TradeMeasuresReviewOfficer
TRADEX ThisschemeisadministeredbyAusIndustryandallowsimportationwithoutpaymentofdutyorsalestaxwhenthegoodsareintendedforexport
TRS TouristRefundScheme
US UnitedStatesofAmerica
WCO WorldCustomsOrganization
WET wineequalisationtax
WTO WorldTradeOrganization
��0 AustralianCustomsServiceAnnualReport2004–05
Section �Index
Photo:TroyParkeratMountHerbert,MillstreamNationalPark,WA,observingtheareaforanysignsofvehicles.
��� AustralianCustomsServiceAnnualReport2004–05
A
absenteeism,106,116,135,accesstodocumentsunderFreedomofInformation,
216–217accountabilitytoclients,124–125 environmentalaccountability,125accounting policies,123,146,163,171 standards,122–123,170–172accreditedclients,75–76,89ACNielsen,218addresses,217,insidecoversAdelaideCEF,41Administrative Appeals Tribunal and Administrative
Decisions (Judicial Review) Act 1977,217–218advancepassengerprocessing,54–55,56advertisingandmarketresearch,122,218aerialsurveillance,29,59–62airbordersecurity,55,57aircargo reporting,26 screening,14,30,36,38, statistics,14airexpresscouriers,20airpassengers,14,15,51–57airpassengersandcrew prohibitedgoodsseizures,39–42AirbusA380,56–57aircraftusedinsurveillance,29,45,56–57,59,60,123 Dash8,45,61 helicopters,29,125 Orion,59,60airlinereservationsystems,51,55airlines,international useofregionalairports,53airportsurveillance,21,36,57airports improvingpassengerflow,53 planning,51 regionalairportsusedforinternationalservices,53AmcorPackaging(Australia)PtyLimited,95ammoniumnitrate,24–25amphetamine-typestimulants(ATS)detectionand
seizure,15,38–41,43,48anti-doping,46anti-dumpingandcountervailingadministration,
91–95,130,139appeals toFederalCourt,91,139,141–142,218 toTradeMeasuresReviewOfficer,92,94
��� AustralianCustomsServiceAnnualReport2004–05
armedpatrols,70–72Arnhem Bay(Customsvessel),68AshmoreIslandsNatureReserve,18,128AsiaPacificEconomicCooperation(APEC),102,
120,130assetsmanagement,122assetsrecovery,84AssociationofSouthEastAsianNations(ASEAN),
85,102Attorney-General’sportfolio/Department,6,24,28,
47,163,216AuditCommittee,100,101,105,143Auditor-General’sreports,142–143,147–148audits,82,89 financial,103,146 internalaudit,98,105,120,122 ITaudit,105 ofCEFs,33,143 ofenergy,128,131 posttransactional,90 privacyaudits,139 securityinvestigations,142AusAID,104AustralasianPoliceMinisters’Council(APMC),26AustraliaDayAwardMedallionforAchievement,30AustraliaGroup,28AustraliaNewZealandCloserEconomicRelations
TradeAgreement,85Australia-UnitedStatesFreeTradeAgreement,73,
84,117AustralianAccountingStandardsBoard,122AustralianAntarcticDivision,14AustralianArmy,32AustralianBureauofStatistics(ABS),2,80,83,86,92AustralianCompetitionandConsumerCommission
(ACCC),92AustralianCrimeCommission,101AustralianCustomsvessels(ACV),19,67–70,72 Arnhem Bay,68 Botany Bay,41 Corio Bay,69 Dame Roma Mitchell,67 Hervey Bay,69 Holdfast Bay,69AustralianDefenceForce,3,6,7,17,58,63–64,66AustralianEquivalenttoInternationalFinancial
ReportingStandards(AEIFRS),171–174AustralianExclusiveEconomicZone(AEEZ),58,59,
61,71,AustralianFederalPolice(AFP),6,18,19,28,32,
38,45,47,50,57,64
��� AustralianCustomsServiceAnnualReport2004–05
Index ���
Inde
x
AustralianFisheriesManagementAuthority(AFMA),14,18,19,61,64,66,70
AustralianGovernmentAuthenticationFramework,117AustralianGovernmentInvestigationStandards,49,84AustralianGovernmentSolicitor,122AustralianIndustrialRelationsCommission,111AustralianInstituteofCriminology,47AustralianLawReformCommission,83,144AustralianMaritimeIdentificationSystem,63,64,72AustralianMaritimeSafetyAuthority,64AustralianNationalAuditOffice(ANAO),33,50,
101,105,142–143AustralianPetroleumProductionandExploration
Association,64AustralianPublicService(APS),112,134 codeofconductandvalues,98,113–114,129,134 ExecutiveLeadershipawards,78AustralianPublicServiceCommission,133AustralianQuarantineandInspectionService
(AQIS),6,18,19,32,61,64,66,67,80AustralianSecurityIntelligenceOrganisation(ASIO),28AustralianSportsCommission,25AustralianTaxationOffice(ATO),18,19,81,85–86,88–
89,119AustralianTouristCommission,53AustralianVinylsCorporationLimited,95AustralianWorkplaceAgreements,112authenticationtechnologies,47,119authorityandpower,6automatedborder-processingtechnology,54,56–57AutomotiveCompetitivenessandInvestment
Scheme(ACIS)Credit,15,143,158,195averments,144aviationsecurity,2,35,38,55–56,143AviationSecurityInitiatives,38awards,30,78
B
BaduIsland,62,135baggageexamination,21,23,128,136,136Beijingoffice,103benchmarkaudits,82BernierandDorreIslandNatureReserves,128biologicalandchemicalagentscreening,36biometrics,17,51,53,54,57boardingofcommercialships,14,21,29,35BorderComplianceandEnforcementdivision,98bordercontrols,2BorderIntelligenceandPassengersdivision,98
bordermanagement,8,14–20,29,101,130,163see alsoOutcomeandOutputstechnologies,35–38,54–55
borderprotection,9,106,120see alsoaviationsecurity,maritimesecurityandOutputs1,2and3
training,106bordersecurity,Outputs,101,119 Indonesia,103 PapuaNewGuinea,104Border Security(TVprogram),3,120,121Botany Bay(Customsvessel),41Bow de Silver(vessel),41Brisbaneairport,38,55BrisbaneCEF,35budget,16,87,96,99,143 2004–05,16,29,51,54,72,147 2005–06,51,54,70,82 financialstatements,147–211 internalbudgets,117 PortfolioAdditionalEstimatesStatements,17,147 PortfolioBudgetStatements,15,17,22,52,58,
59,74,90,102,118,120BusinessContinuityPlanningSteeringCommittee,100businesspractice,95,98,105
C
callcentremanagementsystem,124cannabisdetectionandseizures,15,39–41CargoandTradedivision,98–99cargoexamination,33,see alsocontainer
examinationfacilities,x-rays aircargo,14,30,36,38,40,74,118 seacargo,33–34,43cargofacilitation,output2,3,14,15,21,26,104,CargoManagementReengineering,2,4,5,9,73,
75–81,98,104,146cargoreporting,10,26,76,82,120casualstaffstatistics,107,134CertifiedAgreement2004–2007,106,111–113ChannelSeven(TV),3,120–121chemicalandbiologicalweaponsforum,28chemicaldetectionequipment,31,36,50chemicalsfordrugsseeprecursorschemicalsimportsandexports,24ChiefExecutiveOfficer,4,6–7,11,83,99–101 AustraliaDayAward,30,118,123 review,2–5 statutorypowers,6childpornography,24,49ChinaseePeoplesRepublicofChina
Index ���
Inde
x
��� AustralianCustomsServiceAnnualReport2004–05
ChristmasIsland,61CITSolutions,115civilmaritimesurveillanceandresponse,output,3,
4,6,8,15–19,58–72CivilMaritimeSurveillanceProject,3,4,60,64clandestinelaboratories,42ClientDataManagementStrategy,120clientservicecharter,124clients,124–126 accreditedclients,75–76,90 complaintsandcompliments,33,35,124–125,136 CustomsInformationandSupportCentre,124–
125,217,221–222 datamanagementstrategy,120 inquiries,124closedcircuittelevision,14,20,35,36–37,41,55,115CMS04,62Coastwatch,4–6,19,45,58–61,63–64,72,98–99CoastwatchRiskAssessmentMethodology(CRAM),
58,61cocaine detectionandseizures,4,15,39–41,45 use,46Cocos(Keeling)Islands,61codeofconduct,98,113–114,129,134collectionofrevenue,output,10,14,74–90,130Comcare,116,212ComCoverriskmanagementsurvey,105CommissionfortheConservationofAntarctic
MarineLivingResources,19,70committees inter-agency,25,46,47,53,64,89,98,117 internal,98–99,104,144 overseas,28,89,117 parliamentary,75,142,143CommonwealthDisabilityStrategy,129,221–223Commonwealth Fraud Control Guidelines,49,84,
105,115CommonwealthGames,Melbourne(2006),17,24,57Commonwealth Procurement Guidelines,117CommonwealthReferenceGrouponIdentityFraud,47CommonwealthScientificandIndustrialResearch
Organisation(CSIRO),36,38communication fornon-Englishspeakingclients,129 internal,98,118,133communicationstechnologyonAustralianCustoms
vessels,70,72CommunityandPublicSectorUnionstrike,111communityprotectionreferrals,19,21,129,170compensationclaims,116,134
��� AustralianCustomsServiceAnnualReport2004–05
competitivetenderingandcontracting,98,117,122complaintsandcompliments,33,35,83,88,90,
124–125,136,222 complaintsaboutanti-dumpingmeasures,91 complaintsaboutCEFs,34–35,125 complaintsaboutdutyrecovery,83 complaintsaboutemployeemisconduct,114–115 complaintsfrompassengers,89–90 complaintstoOmbudsman,124,139,141ComplaintsandComplimentsManagementSystem,
124–125,136,216,222complianceactivityrelatingtorevenuecollection,
2,26,73,75,81–84,130ComplianceAssuranceStrategy,56,73,81–84ComputerAssociates,120computerforensics,37computersystemssee alsoIntegratedCargo
System,INTERCEPT smallsystemsdeveloped,119 TAPIN,73,89 TARCON,73,89Concessionssee alsotariffconcessions forimportersandexporters,15,73,85–86,88 forpassengers,88ConservationandLandManagement(Western
Australia),128consignmentinspectionsforairexpressitems,18consultants,115,120–122consultations withindustry,14,38,75,76,83,90,92,100–101,
136,216 withstakeholders,92,98,100–101consultativemechanisms,62,64,100–101,216–217contactinformation,124,insidecovers FreedomofInformation,217ContainerExaminationFacilities(CEFs),14,21,33–
35,50,83,126,222containerx-raymachines,5contracts,120 foraerialsurveillance,62,72 forinformationtechnology,117,120,122ConventiononCombatingBriberyofForeignPublic
OfficialsinInternationalBusinessTransactions,49conventions,international,24,28,47,49,70,71cooperationbetweenCustomsand governmentagencies,6,18–19,27,28,33,46,
55,63,68(see alsointer-agencycooperation) industry,27,38,63,76,91,100–101,136,216 internationalstakeholders,3,31,33,47,61,71,
72,89,91–92,102–104 lawenforcementagencies,3,30,33,46,100–102
Index ���
Inde
x
police,6,25,28,32,45,47,48,57,66,109(see alsoAustralianFederalPolice)
coralreefprotection,65,128Corio Bay(Customsvessel),69,70CorporateCommunication,120corporategovernance,98–105corporateplanning,98,104–105corporatepriorities,9–10,104,105,106,126,131CorporateResearchEnvironment(CRE),120corporateresourcemanagement,98,117–123corporatestatistics,120CorporateSupportTeam,118CorrectionalServices,32correctionstoannualreport2003–04,225corruptionprevention,21,49,101costrecovery,75,89CouncilofAustralianGovernments,24counterterrorismmeasures,9,24–25,28,31,36,51,
62,129CPTGlobal,122crewmovementfacilitation,29,51crewsseealsopassengersandcrewscrystallinemethamphetamine,44,45culturalawarenesstraining,111,129Customs Administration Act 1985,6Customs Amendment Act 2004,24CustomsConnectFacility(CCF),76,119CustomsFrameworkforLearningandDevelopment
2005–07,110,136CustomsHouse,Sydney,123,124Customshousesandoffices,98–99,103,124,217CustomsInformationandSupportCentre,124–125CustomsInternationalExecutiveManagement
Program,104CustomsITStrategicPlan2005–10,119CustomsLegalUnit,98Customs Legislation Amendment and Repeal
(International Trade Modernisation) Act 2001,75,83,89
CustomsNationalConsultativeCommittee,98,100,136,216
CustomsNationalEnforcementTrainingCentre,33CustomsSecurityCommittee,100CustomsTelecommunicationsServicesAgreement,122Customs,Immigration,QuarantineandTransport
Committee(CIQT),100
D
Dash8electronicsurveillanceaircraft,40,60datamanagement,120
databases,42,111DauanIsland,62,137,135declarationvalidationexaminations,83DefenceImageryandGeospacialOrganisation,61DefenceScienceandTechnologyOrganisation,54,61DepartmentofAgriculture,FisheriesandForestry,
85,86,101,191DepartmentofCommunication,Information
TechnologyandtheArts,24DepartmentofDefence,14,18,19,58–64,66DepartmentofEmploymentandWorkplace
Relations,127DepartmentofFinanceandAdministration Review,2,17,57,119,148DepartmentofFinanceandAdministration(DoFA),
117,121,137DepartmentofForeignAffairsandTrade(DFAT),14,
54,64,85,88,92,104,140DepartmentofHealthandAgeing,18,19DepartmentofImmigrationandMulticulturaland
IndigenousAffairs(DIMIA),6,14,18,19,52,54,56,61,64,66,99,104,109
DepartmentofIndustry,TourismandResources(DITR),80,81,85,86,88
DepartmentofthePrimeMinisterandCabinet,24,62,117,141
DepartmentoftheEnvironmentandHeritage,18,19DepartmentoftheTreasury,88,89DepartmentofTransportandRegionalServices
(DOTARS),6,28,29,38,81,101,104,109detectionandinvestigation,38–50detectionequipment,21,36DetectorDogUnit/program/teams,5,6,9,21,31,
32,50,55,103,109dieselfuel128,142DirectorofPublicProsecutions,49disability,110see alsoCommonwealthDisability
Strategydiscretionarygrants,122diseaseandpestprevention,20,35,66,67,128documentsavailableunderFreedomof
Information,216dogs importationofdangerousdogbreeds,24 see alsoDetectorDogUnit/program/teamsdopinginsport,24,46see alsoperformanceand
imageenhancingdrugsdrawbacks,15,74drugs commercialquantitieslegislation,24 controlconventions,international,47
��� AustralianCustomsServiceAnnualReport2004–05
detectionandseizures,4,6,14,15,21,22,24,25,30,34,38–47,49,50103,121,129,130
statistics,4,39–44 research,46dutyfreeconcessions,10,73,89,124 see also
TouristRefundSchemedutyrecovery,82–83
E
e-businessprojects,76,77eBay,30Eberle,142,143economicimpact,130economicindicators,136ecstasyseeMDMAEDSAustralia,117,119,122ElectionProjectTeam,141emergingtechnologies,18,29,31,35–37,54,61employeemisconduct,114–115employeesseestaffenablingoutputs,97–145energyuseandmanagement,126–133enforcementoperations,31,33,51,57,98Enniskaproject,30Environment–monitoringandprotection,65,66,
126–129,131–133EnvironmentalManagementSystem,126,131ePassports,54equityanddiversitygroups,110,129ErnstandYoung,17,57evasionofCustomsduty,50,73exciseduties,19,88,142 concessions,73exclusiveeconomiczones,58,59,60,61,62,67,
70,71ExecutiveGroup,98,100executiveremuneration,112,192explosivesdetection,31,32exportssee alsoimportsandexportscomponentofICS,76–77facilitationscheme,143transactions,77,83externalconsultativemechanisms,100–101externalscrutiny,139–145
F
facerecognitiontechnologyseeSmartgatefacilitationofgoods,output1,21–50
��� AustralianCustomsServiceAnnualReport2004–05
facilitationofpeoplemovement,output2,51–57FederalCourtappealsanddecisions,84,85,91,
95,142–143,219femalestaffstatistics,110,112,135Fiji memorandumofunderstanding,102finance equityinjectionoffunds,17 outcomeandoutputs,16–17FinancialActionTaskForce-AsiaPacificGroup
(FATF-APG),49financialhealthreview,2,17,57,116,148financialmanagement,117financialperformance,16–17,148financialreportingstandards,122,123,148,171–174financialstatements,147–212firearms,6,22,23,26FirearmsPolicyWorkingGroup,26firstportboardingseeboardingofcommercial
shippingfishimportsandexports,18fishing,illegal,14,18,64,65,66–67,71,120,128flightandpassengerinformation,54–55floraandfaunasmuggling,49,125,126footandmouthdisease,20foreignfishingvessels,59,66,67,68,128forensics,36FrameworkofStandardsforSecuringtheSupply
ChainandFacilitatingTrade,3,104France surveillancetreatyinSouthernOcean,61,71fraud controlmeasures,49,84,105,144 employeemisconduct,114–115 importfraud,73 revenuefraud,84freetradeagreements,30,85,120,148freedomofinformation(FOI),139,216–217 documents,216 requestsreceived,139full-timestaff,108,134functionsandpowers,6,216functions,changesto,7
G
GatekeeperStrategyassessment,119GlobalReportingInitiative economicindicators,137–138 environmentalindicators,131–133 socialindicators,133–137
Index ���
Inde
x
globaltradeframework,81goodssee alsoprohibitedgoods,restrictedgoods importandexport,output1,21–50 processingofgoodsofpassengersandcrew,73goodsandservicestax(GST),73,74,81,82,88–
90,89,154graduatetraineeprograms,106,110,112,113,122,133GreatBarrierReefMarineParkAuthority,61,64,65greenhousegasemissions,133grievanceprocedures,3
H
handguns,26 see alsofirearmsharassmentreporting,110,135HarmonizedSystemCommittee,88hazardoussubstances,18,19,20,24,31,129,131HeadsofCommonwealthOperationalLaw
EnforcementAgencies(HOCOLEA),101HealthServicesAustralia,31HeardandMcDonaldIslandExclusiveEconomicZone,
61,71helicopters,5,29,125heroindetectionandseizures,15,38–41,45Hervey Bay(Customsvessel),69HighFrequencySurfaceWaveRadar(HFSWR),58,
59,61–62,128,137high-techcrime,37HMABlaze,218Holden,143Holdfast Bay(Customsvessel),69Hotline,120,13HouseofRepresentativesStandingCommitteeon
LegalandConstitutionalAffairs,145humanresourcepolicies,98,106–116humanresourcesmanagement,106–116
I
IBM,122identityfraud,21,47Illicit Drug Data Report 2003–2004,46imageandindiciaprotectionforCommonwealth
Games,24,57imports componentofICS,73,75,80–81,90,124 processingcharges,74 importsandexports,Outputs1,4,5 compliance,81–84 riskidentification,30
statistics,5,74IncreasedQuarantineInterventionInitiative,20IndigenousLandUseAgreements,62,137indigenousstaff,108,110,129,133 inseniormanagement,133 recruitment,108,110,133Indonesia detectordogs,31,32 fishermenrescued,69,130 OperationClearwater,66 partnershipwithAustralia,102,103,104 tradediscussions,92,102industrialrelations,111industry AccreditedClientProgram,75–76,90 consultations,14,38,75–76,92,102 drawbacks,15,74,143 onICS,75–76,78,80 schemesandtrademeasures,6,14,15,83 stakeholders,6,27,76,80,91,92,98 supportschemes,81,82information management,99,100,117–121 policy,117–121 technology,4,80,99,117–121(see alsoIT)InformationandOfficeTechnologydivision,99,117–
121,116InformationManagementProjectCommittee,100InformationManagementStrategyCommittee,100,119InformationServicesAgreement,117InfringementNoticeScheme,83InglewoodOliveProcessorsLimited,95,142–143innovationandtechnologypriority,9IntegratedCargoSteeringcommittee,100IntegratedCargoSystem(ICS),25,30,31,73,76–
81,98,117,122,124 exportsrelease,76–79,118,122 importscomponent,76,80–81,89,115,122integratedsolutions,120intellectualproperty,24,57,129IntellectualPropertyAustralia,24intelligence overseasintelligencesharing,102,104 sharedintelligencegathering,19–20,45,46,51,
55,101 totargetillegalpassengermovements,51 totargetrisksincargo,2,30–31,33INTERCEPTsystem,21,29,50IntergovernmentalCommitteeonDrugs(IGCD),46InternalAffairs,99,114–115internalaudit,104
��� AustralianCustomsServiceAnnualReport2004–05
internationalcommittees participationofAustralianCustoms,28,88,91,
102,104,119internationalconventions,24,28,47,49,70,71internationalcooperation,3,9,31,47,72,102–104InternationalMaritimeOrganization,28InternationalNarcoticsControlBoardoftheUnited
Nations,46,47Internet Customssite,49,89,94,100,122,124,217,221interpreterserviceaccess,129Intranet,100,214investigations,38–50,84 ofdumpingallegations,93–94Islamicculturetraining,110ITstrategicplanning,119
J
Jakartaoffice,98,103,107JointCommitteeofPublicAccountsandAudit,144JointDeclarationonComprehensivePartnership
betweenAustraliaandIndonesia,103JointOffshoreProtectionCommand,3,7,14,58,
62–63,72JointStandingCommitteeonForeignAffairs,
DefenceandTrade,144judicialdecisionsanddecisionsofadministrative
tribunals,142–143
K
Kaye,ProfessorStuart studyoflegalauthorityconcerningcounter
terrorismoffshore,63keyfacts,5keyobjectivesandachievements Output1,21–23 Output2,51–52 Output3,58–59 Output4,73–74 Output5,91–92KimberleyIslands,128Korea,92 anti-dumpingadministration,93–95
L
legalservices,98,122
��� AustralianCustomsServiceAnnualReport2004–05
legislation bordersecuritylegislation,55 CommonwealthlegislationunderwhichCustoms
haspowers,7 enablinglegislation,6 intellectualpropertylegislation,24 OffshorePowersLegislationStudyteam,63 passengerinformationlegislation,57 PassengerMovementCharge,89 proceedsofcrimelegislation,18,49 prohibitedgoodslegislation,24,25,26 SeriousDrugOffenceslegislation(proposed),24,46 tarifflegislation,88 trademodernisationlegislation,75,80,83letteroftransmittal,iiiLGElectronics,95licences forcargostoragefacilities,25 forsecuritysensitiveammoniumnitrate,25licensing,25,73,120litigation,22,48,49,50,66, AdministrativeAppealsTribunalcases,219 FederalCourtappealsanddecisions,94,138,142–
143,219luxurycartax,73,87
M
Mackay(Qld)port,29mailscreening,18,36,39,41–42,48,73,Malaysiandelegation,89malestaffstatistics,107,112,134Malika Holdings Pty v Stretton(Malika),83,142manageddeliveries,50maps,37,66,99Marcos Dias(motorvessel),45marinespeciesprotection,65,131–133see also
OperationClearwaterandSouthernOceanMaritimePatrolandResponse
maritimesecurity,Output3,2,14,28–30,36–37 identificationsystem,9,63,64,72maritimesurveillance,3,4,5,6,7,58–72see also
AustralianCustomsvessels,civilmaritimesurveillance,Coastwatch
marketresearchandadvertising,122MDMAdetectionandseizures,15,38–41,44,45medicalemergencies,71,130Melbourne2006CommonwealthGames
Corporation,24,57
Index ���
Inde
x
MelbourneAirmailTransitCentre,36MelbourneAirport,54,57MemorandumsofUnderstanding,18,19,119metaldetectors,36methamphetamine,44–45MinisterforDefence,63MinisterforFinance,33,117MinisterforJusticeandCustoms,6,35,50,63,76,
94,102,117,140,216MinisterialandParliamentaryteam,141MinisterialCouncilonDrugStrategy,47ministerialrepresentations,140moneylaundering,21,48,49,50MontebelloIslands,128motorvehicleimportdutycases,143
N
narcoticsseedrugsNationalAirportPlanningInterface,51NationalCivilMaritimeSurveillanceandResponse
Program,58,67NationalClandestineLaboratoryDatabase,42NationalCustomsBrokersLicensingAdvisory
Committee,25NationalDrugandAlcoholResearchCentre,45NationalDrugLawEnforcementResearchFund,45NationalDrugStrategy,40,46NationalIndigenousCadetshipProject,110,133NationalIndustrialChemicalNotificationand
AssessmentScheme(NICNAS)Database,42NationalMarineUnit,5,58,67–69,72,128–129NationalPassengerProcessingCommittee,53,98NationalPrioritiesCommittee,100NationalResourceAssessmentprocess,117NationalStrategicWorkforcePlan,106neutronscanner,17,21,38,50NewZealand participationinIGCD,46 protectionofSouthernOceanfisheries,71 tradeagreement,85NorthWestShelf,62,64NorthernAustraliaQuarantinestrategy,67NorthernTerritoryHealthDepartment,66NorthernTerritoryPolice,66
O
occupationalhealthandsafety,116,122,130,131,134,138,214–215
OceaniaCustomsOrganisation,102,104Oceanic Viking(vessel),37,70–72,130offences,49–50,83 drugoffences,24,41,46 fraud,73,74,84 illegalfishing,66,70 import/exportoffences,21,24,50,83 prohibitedgoods,49–50 terrorism,28officelocations,99,backinsidecoverOfficeofBusinessSystems,98OfficeofTransportSecurity,28OffshorePowersLegislationStudyTeam,63oilandgasinstallations,protectionof,1,3,62,
63–64,70,130oliveoilsubsidies,142–143Ombudsman,122,138,142onlinefacilities accesstoINTERCEPT,29 CustomsInteractive,77 onlinetrading,30 trainingprograms,31,83,113,115,129,134,212 useinhumanresourcesmanagement,106113,115OpalGroup,47OperationClearwater,65–67,128OperationCranberry,58,60OperationRelexII,18,58,60OperationalReadinessUnit,33OperationsandProgramAdvisoryCommittee,64OrganisationforEconomicCooperationand
Development(OECD),49organisationalarrangements,98organisationalstructure,98–99,102Orionaircraft,59,60OutcomeandOutputstructure,8,104Outcomes/Outputs,14–96OuterEdge05,28Output1,goodsimportandexport,9–10,21–50Output2,peoplemovement,9–10,51–57Output3,maritimesurveillance,9,58–72Output4,revenuecollection,9–10,73–90Output5,anti-dumping,9–10,91–96outputsfunding,16–17outsourcing,98,117,119,122–123overseasbornstaff,110 inseniormanagement,110,135overseasofficesandstaff,98,102,103,107,129overviewofCustoms,6–11overviewoffinancialstatements,148ozonedepletingsubstances,18,19
��0 AustralianCustomsServiceAnnualReport2004–05
P
P&OMaritimeServicePtyLtd,70,72PacificProtector06,28palletx-raysystem,5,33,45PapuaNewGuinea,102,104,125,130 capacitybuilding,102,104,130 consultationandcooperation,102,125 MemorandumofUnderstanding,102Parks Holdingstradingas Gladstone Chemicals v
CEO of Customs,84,142Parliamentarycommitteereports,144–145part-timestaffstatistics,107,134PassengerAnalysisUnit,55passengerenforcementoperations,51,57passengerfacilitation,Output2,15,52–58,75,PassengerMovementCharge,15,73,89passengers,14,52,89–90see alsoairpassengers,
seapassengers,travellers increaseinnumbers,51,52,53 processingrates,52–53 screening,2,51,54,56passengersandcrew dutyfreeconcessions,89,125 goodsprocessing,73 processing,Output2,51–57,89–90patrolvessels,6,45,59,66,67see alsoAustralian
Customsvesselspeoplesmuggling,18–19,65,103PeoplesRepublicofChina,41,143 AustralianCustomsofficeinBeijing,98,102–104 detectordogs,31,32 freetradeagreements,85,90 investigationofexportsfrom,92,93,94,95 recognisedasamarketeconomy,9performanceandimageenhancingdrugs(PIEDs),
25,46performanceassessmentandfeedback(PAF),112–113performanceeffectiveness Outcome,14 forsustainability,126–137 Output1,22–23 Output2,52–58 Output3,59–72 Output4,73–90 Output5,91–96 staffmanagement,112–113performancepay,112,113permitstoimportgoods,139personnelsecurityclearances,106,115–116,114
��0 AustralianCustomsServiceAnnualReport2004–05
planning corporateplanning,98,104–105 ITstrategicplanning,119 workforce,106PlanningandInternationalbranch,98–99PlanningandPerformanceFramework,101,104,122PlasticsandChemicalsIndustriesAssociation
NationalCodeofPractice,46police,6,25,28,32,45,47,48,57,66,109see
alsoAustralianFederalPolicepollutants,65,129pornography,21,24,49PortIntelligenceUnit,30portfolio,6PortfolioAdditionalEstimatesStatements,17,148PortfolioBudgetStatements,15,17,22,52,58,59,
74,91,104ports,36–37 boardingofvessels,14,21,29,30,35 security,21,29,35,36–37,103postalitemsseemailpre-arrivalassessmentsofpassengers,51,54–56precursordrugchemicals,38–47,48,49,50PrecursorWorkingGroupseeNationalStrategyto
PreventtheDiversionofPrecursorChemicalsintoIllicitDrugManufacture
PricewaterhouseCoopers,122PrimeMinister’sAwardforExcellence,31priorities corporatepriorities2004–05,9–10 corporateprioritiesinOutputs,21,51,58,73,
91–92privacymatters,139proceedsofcrime,48,49,50proclaimedports(map),37procurement,117,122,131profilingandanalysistools,51prohibitedgoods, detection,15,18,21,23,30,49,128 legislationchanges,24ProjectEnniska,30ProjectPRISM,44ProliferationSecurityInitiative,28prosecutionsseelitigationProtecting our Borderspolicy,14pseudoephedrineseizures,31publicrelations,121 opendaysforAustralianCustomsvessels,69publications,120,129purchasing,117,138
Index ��1
Inde
x
Q
QantascrewsissuedwithePassports,54QSP(financialmanagementsystem),117quarantine,9,18,67see alsoAQIS,Increased
QuarantineInterventionqueuingaids,51,53
R
radar,58,59,60,61–62,137radiationdetectors,21,36radiocommunications,37recruitment,98,101,106,122,129,129recycling,126,131red/greenexitsatairports,51,53RegionalDirectors,11,99,100remoteareas127, communityawarenessprograms,120rescues,59,64,65,127,130restrictedgoods importsandexports,8,10,16,18,19,20,21,
30,43,49,58,83,129retentionrateofstaff,106revenue collectiononbehalfofotheragencies,75 collection,output,6,10,14,15,18,73–90, fraud,84 fromcomplianceactivity,73,74,75,82,130reviewssee alsoAustralianNationalAuditOffice,
TradeMeasuresReviewOfficer ofanti-dumpingmeasures,92,94,95 ofaviationsecurity,56,144 ofdutyfreeconcessions,89 offinancialhealth,2,17,57,117,148 oftheworkforce,106riskassessment,30,61 ofcargo,26,30,80 ofpassengers,51riskmanagement,98,105roleandfunctions,6RoyalAustralianNavy,63,66RoyalPapuaNewGuineaConstabulary,125rulesoforigin[fortrade],85,86,90
S
safeguardgoods,85SAGEMAustralasia,54salaries,112,113,115,165 executiveremuneration,191
non-Seniorexecutiveservice,102 performancepay,112,113 SeniorExecutiveService,112Samurai04,28satellites incommunications,37,70 surveillance,59,61screeningsee alsocontainerexamination
facilities,x-rays cargo,21,30,33,38,120 forbiologicalandchemicalsubstances,36 mail,20,36,48 pre-screeningofpassengers,51,54–55seacargo reporting,26 statistics,14,22seacargoinspections,14,26,33see also
containerexaminationfacilitiesseapassengers,43,57,109searchandrescueoperations,64,65,69,130securitysee alsoaviationsecurity,maritimesecurity clearancesforstaff,115 communications,70,115 portssecurity,21,29,36–37,103 supplychainsecurity,3,4,27,76,81,99,102,131SecurityEnhancementProject,115securitymeasures,28–29,55,130Senatecommittees,75,143–144SeniorExecutiveService,11,98,112,135SeriousDrugOffenceslegislation,46ships boardingof,14,21,29–30,35,68,70,72,106 drugsdetected,39,45 offshoreinterception,62,63 passengersprocessing,106 processing,51SmallSystemsDevelopmentUnit,119SmartGate,51,54,140,218smuggling ofpeopleorgoods,31,46,64–65,103 ofwildlife,120,127,128socialimpact,129–130socialindicators,134–137socialjusticeandequity,76,110,111,121,124,
129–130SolomonIslands capacitybuilding,100,102,104,107,130SouthAfrica SouthernOceancooperation,71 visitingdelegation,102
��� AustralianCustomsServiceAnnualReport2004–05
SouthernOcean cooperativesurveillancetreatywithFrance,61,71 patroloperations,14,19,20,58,70–72SouthernOceanMaritimePatrolandResponse,
70–71,72,106,107,115spectrometers,36staff,3,106–116,134–138 classification,108,112 equityanddiversity,110,134,136 misconduct,114–115 secondmentsandexchanges,37,104,109 statistics,5,6,16,17,107–108,110,112,113,
134,191 traininganddevelopment,110–111,135 turnoverandretention,106,134 workforcecharacteristics,10StaffCouncil,106,134Staffingbranch,98,99stakeholders cooperationwith,27,49,76,80,90,92,102,136 international,102–104StandardisedDataSet,14,21,27standards accountingandfinancialreportingstandards,
120,122,148,169,191 AustralianGovernmentInvestigationStandards,
49,84 informationstandards,119–120 riskmanagementstandards,105 securityforthesupplychain,3,4,27,81,102statutoryfunctionsandpowers,6steelimportmonitoring,91–92stevedores,35strategicgoodslist,20supplychainsecurity,3,4,27,76,81,100,102,
104,119,131surveillance civilmaritimesurveillanceandresponse,output,
3,4,5,6,7,18,58–72,98 closedcircuittelevision,18,21,35,36,37,55,57 flights,15,21,45(see alsoCoastwatch) SouthernOcean,14,37,59,70–72.1–4,115SurveillanceInformationManagementSystem,60suspectillegalentryvessels,59,64,65,68suspectunlawfulnon-citizens,59,64,65sustainability,4,98,125–138SydneyAirport,13,55,122SydneyCustomsHouse,123,124SydneyGatewayFacility,36SydneyOlympics2000,57
��� AustralianCustomsServiceAnnualReport2004–05
T
Taiwantrade,95,120TAPINsystem,73,90TARCONsystem,73,90tariffclassification,73,85,86TariffConcessionScheme,15,86–88tariffconcessions,73,86–88tarifflegislation,88,TaskforceonOffshoreMaritimeSecurity,58,62,64Tasmania borderprotection,32,109TasmaniaPolice,109taxes,18,73,75,88,130,146see alsoexcisedutiestechnology,6,9,35–38,45,50,135see also
informationsystems,onlinetrainingprograms authenticationtechnologies,119 cargomanagementtechnology,14,35–38,48,
75–79,(see alsoIntegratedCargoSystem) informationtechnology,80,105,118,119 passengerscreeningtechnology,51,54,57telecommunications,119,122Telstra,119,122tendersforaerialsurveillanceofmaritimezones,62terrorism,28,51,103,see alsocounter-terrorismThailand-AustraliaFreeTradeAgreement,73,85TimorSea,64,tobaccoimport detections,34,84 tobaccoleafcontrols,24Tonga capacitybuilding,104TorresStrait,125, highfrequencysurfacewaveradar,58,59,62,
128,136 IndigenousLandUseAgreements,62,136 maritimesurveillance,58,62,128 searchandrescue,130TorresStraitTreaty(1978),125Tough on Drugs in Sport Strategy,46tourismindustry,52,89,TouristRefundScheme(TRS),18,73,75,88,89,
90trade,27,85–86see alsoimportsandexports facilitation,6,102,103,130,(see alsoOutputs
1,4,and5) modernisationlegislation,75,80,83,90TARCON,73,89TradeMeasuresReviewOfficer(TMRO),92,94–95,
141,142
Index ���
Inde
x
traineesandcadets,107,108,110,129,133traininganddevelopment,33,86,100,104,105,
106,110–111,123,224 counterterrorismawareness,28,36,51,111 deceptionanddetectiontraining,51 enforcementtraining,31 inaircraftsearch,55 inborderprotection,107 Islamicculturaltraining,111 ofCustomsstaffbyotheragencies,19,20 ofdetectordogs,31–32,50 ofIndonesianCustomsofficers,103–104 ofNewZealandCustomsofficers,33 ofstaffforCommonwealthGames,57 operationalcommandtraining,31,33 passengerenforcementoperations,51 precursortrainingproject,42 rulesoforigin,75 securityawarenesstraining,115 SouthernOceans,70travelmanagement,117travellers facilitationof,12,18,51–54, identityverification,54 riskassessment,6,30,51,55
U
UnitedArabEmirates delegationstoAustralia,89,102 freetradeagreements,85,89UnitedKingdom cooperationinSouthernOcean,71UnitedNations,46–47 CentreforTradeFacilitationandElectronic
Business,120 InternationalNarcoticsControlBoard,46,47 SafetyofLifeatSeaconvention,71UnitedStatesDepartmentofHomelandSecurity,
32,37UnitedStatesFreeTradeAgreement,73,85,116unmannedaerialvehicles,62,72
V
valuationadviceservice,85values,98,113–114,129vehiclefleetenergyuse,126,131–132vesselssee alsoAustralianCustomsvessels Bow de Silver,41
illegal,unregulatedandunreported,59 Marcos Dias,41 movements,21,29,61,64 Oceanic Viking,37,70–72,130VictoriaPolice,57visionstatement,6
W
Washingtonoffice,98waterandwasteproductmanagement,126waterfrontsurveillance,21,35–37weaponssee alsofirearms certificationoffirearmsdealersforimported
handguns,26 detection,20,21,23,31–32 forCustomsVessels,70,72 importandexportcontrols,26weaponsofmassdestruction,28Wheeler,SirJohn reviewofairportcrime,securityandlaw
enforcement,56Whole-of-governmentapproach onidentityfraud,47 toaviationsecurity,57 toCoastwatch,58,64–65,67 toprocessingpassengers,53WideAreaNetwork,119,122wildlifedetection,21,23,120,129wineequalisationtax,7,73,88wirelessconnectiontoCustomssystems,50womenexecutives,11see alsofemalestaffworkforceplanning,106,135,143workplacediversity,110,129,134–136WorldCustomsOrganization,3,81,85,102,119–120WorldTradeOrganization,10,91–92,130
X
x-raytechnology,5–6,33–36,81,109,136,167
Y
yachtrescue,Queensland,69,130
��� AustralianCustomsServiceAnnualReport2004–05��� AustralianCustomsServiceAnnualReport2004–05
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