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Output 1

Facilitation of the legitimate movement of goods across the border, while intercepting prohibited and restricted imports and exports

This output covers the processing of goods across the border, including:

• risk-assessment of vessels, aircraft, cargo, mail, air and sea passengers, and baggage
• intelligence, targeting and search activities
• surveillance of international airports, waterfronts and international mail centres
• land-based surveillance of the coastline, and aerial/marine surveillance and response for specific operations.

Prohibited and restricted items include illicit drugs, weapons, pornography, unsafe products, therapeutic goods, wildlife, quarantine items and items which breach intellectual property rights. This output also covers the investigation and prosecution of non-narcotic prohibited import and export offences.

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Performance measures

Figure 8: Performance against targets set in the 2000-01 PBS – output 1^#

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Performance assessment

Drug seizures

Figure 9: Summary of drug seizures by import method*

‘Other’ drugs refer to stimulants other than cocaine, narcotics/analgesics other than heroin, psychotropics/hallucinogens other than MDMA or cannabis products, steroids and all depressants and sedatives. Estimated weight values are not shown, as there is no consistent unit of measure available. Items in this category can be measured in grams, volume, dose unit or capsules.

Figure 10: Drug seizures and significance of offence*

Customs works closely with other agencies to target large-scale, organised drug trafficking. Investigations are often lengthy and result in a small number of highly significant seizures, which impact heavily on organised criminal syndicates. The large size and small number of these seizures can cause large variations in the weight of drugs seized by Customs from year to year. Further information on major seizures during 2000-01 is available under Major drug seizures below.

As well as targeting large-scale, organised traffickers, Customs also targets mid- and low-scale drug trafficking, with the majority of seizures fitting into these categories. Notable mid-scale drug seizures during 2000-01 included:

• 10.6 kg of MDMA (ecstasy) in December 2000
• 10 kg of heroin in July 2000
• 8 kg of MDMA in June 2001
• 6.4 kg of cocaine in August 2000.

Major drug seizures

In August 2000 the National Crime Authority seized 317 kg of cocaine and $299 000 cash in Adelaide. The seizure was the result of intelligence gathered by Customs in 1998 and work by a joint Customs-Australian Federal Police target development team from June 2000 onwards. The cocaine was imported from Colombia in sandstone blocks invoiced as marble blocks and was the second largest cocaine seizure made in Australia.

As a result of intelligence received, two containers from China were examined in November 2000. A metal plate had been welded to cover an opening in the struts of the containers and when this was removed, 42 packages wrapped in foil were found. A further 40 packages were found in the second container. The substance was confirmed as crystalline methamphetamine (ice) and weighed 79 kg, the largest interception of that drug by Customs to date.

In November 2000 a container from France was selected for examination. X-ray images of a number of cartons from within the container were consistent with the concealment of tablets. A total of 20 cartons contained 105 kg of MDMA concealed in shrink-wrapped packets between bottles of wine.

On 3 December 2000 three shipping containers arriving in Sydney from China were identified as high risk and selected for examination. Some panels were removed and 124 foil packages of heroin, weighing 184 kg were found. This was the third largest seizure of heroin made by Customs at that time.

In March 2001 Customs staff targeted a sea container from China described as cartons of canned pineapple pieces. Some of the cartons were found to have been opened and tins removed. Further inspection by x-ray revealed images consistent with tablets. One tin was opened and found to contain MDMA tablets. The remainder of the cargo was unpacked revealing a further 15 cartons each containing six 3 kg cans. The final weight of the drugs was 131 kg of MDMA and 12.8 kg of heroin.

Approximately 88 kg of cocaine was seized on a yacht off the east coast of Australia in early May 2001. The operation was the culmination of nearly two years of investigation by the Australian Federal Police (AFP) and Customs and involved significant assistance from state police, police and Customs in New Caledonia and US Customs. Information provided by US Customs initially alerted the AFP and Australian Customs to the possibility of importation and the vessel was tracked from Colombia through Noumea to Australia. The vessel was monitored during its voyage from New Caledonia by Customs Coastwatch aircraft. These aircraft and two Customs vessels played a significant role in the operation.

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Performance-enhancing drugs

Performance-enhancing drugs were a priority for Customs, particularly during the lead-up to the Sydney 2000 Olympic and Paralympic Games, with the aim of keeping the Games drug-free. Of the record number (1268) of seizures of performance-enhancing drugs (PEDs) made during 2000-01, 44 per cent were made between July and September 2000. However, while the number of seizures continued to increase, the increase was not as great as in previous years.

Anabolic and androgenic substances available legally in other countries (such as DHEA and androstenedione) continued to make up the majority of seizures. They are easily obtained over the Internet and are often advertised as having anti-ageing effects or increasing general health, rather than being performance-enhancing.

The rate of increase in steroid seizures over recent years levelled off, but hormone seizures increased from 6 per cent to 9 per cent of total PEDs seizures – a continuing trend since 1996-97.

There were 35 interceptions of importations with more than 1000 tablets of anabolic and androgenic substances, a substantial increase on the 18 interceptions in 1999-2000. Technology such as x-ray machines, combined with an intelligence-driven risk-management approach to screening and targeting, contributed significantly to this increase in seizures.

Figure 11: Interceptions of performance-enhancing drugs*

National Illicit Drug Strategy involvement

The National Illicit Drug Strategy (NIDS) is a major element of the Commonwealth Government’s National Drug Strategy and focuses on reducing the supply of and demand for illicit drugs. It includes initiatives such as diversion programs, treatment and prevention as well as measures to intercept more illicit drugs at the Australian border.

The main role of Customs in NIDS is to reduce the supply through intercepting illicit drugs at the border and through deterring people from importing or trafficking in illicit drugs. To support this role, Customs is represented on consultative committees associated with illicit drug policies.

Customs is represented on the Intergovernmental Committee on Drugs (IGCD), which provides policy advice on drug-related issues to Commonwealth, state and territory health and law-enforcement ministers. Customs is also involved in several advisory groups that report to or are administered by the IGCD:

• the National Expert Advisory Committee on Illicit Drugs, which provides technical advice on illicit drugs
• the Monitoring and Evaluation Coordination Committee, which assesses performance against the objectives of the National Drug Strategy
• the National Drug Law Enforcement Research Fund, which promotes quality, evidence-based practice in drug law enforcement
• the steering committee for the IGCD’s National Prevention Agenda, which aims to consolidate and strengthen drug-prevention measures.

Customs is also involved in a standing interdepartmental committee on international narcotic issues, which coordinates Australian drug policy initiatives and issues at an international level. In particular, Customs contributed to the committee’s development of Australia’s International Drug Strategy.

Other prohibited imports

During 2000-01 there were 13 changes made to the Customs (Prohibited Imports) Regulations 1956. Specific issues covered in the changes included introducing import controls in response to United Nations Security Council resolutions, consumer safety issues and stronger controls over firearm importations.

Customs also performs a number of border functions on behalf of other government agencies. This includes enforcing import controls on:

• firearms and other dangerous items, such as certain knives and anti-personnel sprays, on behalf of police forces
• certain therapeutic substances, including drugs of abuse, on behalf of the Department of Health and Aged Care
• ozone-depleting substances and protected fauna on behalf of Environment Australia
• goods that pose a risk to consumer safety on behalf of the Consumer Affairs Division of the Department of the Treasury
• objectionable or obscene material on behalf of the Office of Film and Literature Classification.

Customs also works closely with the Australian Quarantine and Inspection Service, the AFP, the National Crime Authority and the Australian Transaction Reports and Analysis Centre. This work contributes both to output one of Customs and to the outputs of these other agencies.

Figure 12: Detections of prohibited goods on international air passengers *

Figure 12 summarises results of detections on behalf of, and referrals to, other agencies arising from the processing of international air passengers. The number of detections continued to increase during 2000-01, following a long-term trend. In particular, the number of quarantine, prohibited goods, wildlife and undeclared goods all increased when compared with the previous year.

This continuing increase was due to a continuing growth in the number of air passengers, improved targeting techniques and increased use of technology, such as x-ray equipment, to detect prohibited goods. During the past year, there may also have been an impact from increased examination rates as a result of measures to prevent foot and mouth and other quarantinable diseases from entering Australia.

Intellectual property

There is a growing domestic and international interest in protecting intellectual property such as trade marks. In Australia, use of the Trade Marks Act 1995 and the Copyright Act 1968 to protect intellectual property continued to increase. The number of companies lodging documents to protect trade marks increased nearly 50 per cent over the past three years.

Customs benefited from close working relationships with other agencies enforcing intellectual property. A NSW Police operation at Paddy’s Market in Sydney resulted in 11 608 items of clothing being seized and 28 summons for offences under the

Trade Marks Act 1995. Valuable information from the operation was used by Customs to develop targeting profiles for high-risk cargo.

Community protection investigations

Customs investigates and, where appropriate, prosecutes suspected breaches of community protection laws relevant to output 1, such as illegal imports or exports of weapons, fauna, offensive material or performance-enhancing drugs.

Figure 13: Community protection investigations*

The Customs Legislation Amendment (Criminal Sanctions and Other Measures) Act 2000 came into effect in May 2000. This made importing or exporting certain community protection-related goods, including performance-enhancing drugs, child pornography and firearms, a serious criminal offence.

In the lead-up to and during the Sydney 2000 Olympic and Paralympic Games, every detection of performance-enhancing drugs was referred for further investigation. As a result of these measures, there was a large increase in the number of referrals, cases adopted and cases completed compared with previous years.

Significant convictions during the year included:

• $15 064 fine for importing a commercial shipment of objectionable books
• $10 000 fine for importing 29 vials of non-narcotic drugs
• $5000 penalty plus costs for importing two bottles of anabolic steroids
• $4883 fine for importing two tortoises in hand luggage
• $3500 fine for importing 44 silencers as hand luggage.

Import and export entries workload

Import entries increased 4.1 per cent on 1999-2000, with 2.852 million entries lodged. Approximately 99 per cent of all import entries were lodged electronically, about 98 per cent of electronic entries receiving an authority to deal from Customs within 15 minutes of receipt of entry payment and finalisation of entry details.

Export entries also increased by 6.5 per cent on 1999-2000, with 1.426 million entries lodged. Export growth following the introduction of the GST and the decline in the value of the Australian dollar contributed to the increase in export entries.

Figure 14: Import^*/export entries (million)

Export requirements

Customs administers permit requirements on behalf of government agencies such as the Australian Quarantine and Inspection Service, the Department of Defence and the Australian Wine and Brandy Corporation.

Progress was made on the export-reporting requirements of the cargo management

re-engineering model. This will result in a substantial restructure of export-reporting procedures, increasing the ability of Customs to verify exports, address illegal activity and improve statistical accuracy.

Liaison arrangements with export-permit issuing agencies continued to improve, with an integrated export-targeting regime developed. One example of this was the cooperation between Customs and the Health Insurance Commission (HIC). Changes to the National Health Act 1953 were introduced to control the export of Pharmaceutical Benefits Scheme goods. Both Customs and the HIC tabled guidelines in Parliament for dealing with drug-like substances relating to the scheme. Customs officers who deal with the detention of scheme goods received training from the HIC during 2001. Early results suggest the program is running well.

Container x-ray

In May 2001 an $11 million contract was signed with a Chinese manufacturer to supply two container x-ray inspection systems, with funding provided under the Government’s National Illicit Drug Strategy. The systems will be installed in purpose-built container inspection facilities in major Australian ports and will be integrated with existing activities by Customs. They will allow effective inspection of full shipping containers for community protection and revenue purposes.

Container x-ray machines will reduce the time taken to process goods through customs controls, as well as increasing the ability of Customs to detect illegal and prohibited goods.

Each x-ray machine will allow Customs to make approximately 100 physical inspections each day and will be used in conjunction with electronic profiling. A 40-foot (12-metre) container will be x-rayed in approximately 10 minutes, compared with manual inspection activities that can exceed 24 hours.

High volume low value cargo

High volume low value (HVLV) cargo refers to bulk document consignments and bulk mail order consignments. The Customs Amendment Act (No. 1) 2000 and the Import Processing Charges Amendment Act 2000 introduced new HVLV cargo reporting arrangements from 1 August 2000.

As part of the Government’s National Illicit Drug Strategy, Customs determined that bulk document consignments represented a risk for importing illicit drugs and other prohibited goods into Australia. These consignments, which continue to grow in volume annually, were not reported in any detail. The HVLV scheme requires reporting, allowing Customs to individually risk assess items, enhancing the ability to target high-risk consignments.

Additionally, Customs assessed that certain pre-determined categories of bulk mail-order product might represent a relatively low risk if they were packaged and consigned in a particular manner. The new arrangements facilitate reporting and clearance of certain categories of goods and eligible bulk mail-order goods, reducing workload and minimising delays in delivering legitimate imports.

Risk assessment of vessels

Further information on strategies to risk assess small craft and commercial vessels is available under Output 2 on page 58.

Detector dogs

During the year, detector dogs provided operational support to a number of activities by Customs and police agencies. Seizures included:

• as part of a joint Customs-Queensland Police operation in the far north of Queensland, a detector dog uncovered a total of 148 kg of cannabis heads beneath the foundations of a house
• passive dogs were responsible for many seizures throughout the year, including 1.4 kg of MDMA concealed on the body of an arriving passenger in Adelaide; 2.7 kg of cocaine concealed on the body of a passenger in Brisbane; and 2.2 kg of cocaine in the false bottom of a golf bag being transported as hold baggage in Sydney
• since being trained in detecting MDMA (ecstasy) during 2000-01, detector dogs recorded 27 MDMA seizures.

Two officers from the Royal Thailand Police took part in a ten-week program at the Detector Dog Training Centre and graduated with two passive-response dogs. The dogs made their first operational detection, of methamphetamine, in Bangkok in January 2001. The officers who undertook the training commenced a training program for Royal Thailand Police handlers and dogs in passive drug detection techniques. An officer from Korean Customs also spent ten weeks at the Detector Dog Training Centre observing and learning instructional techniques.

The dog-breeding program continued to attract international attention. The Institute of Biological Detection Systems operating within Auburn University in Alabama bought eight Australian-bred dogs to establish a breeding base for research into improved detection of explosives. A joint US Federal Aviation Administration-US Department of Defense program bought eight dogs to develop a breeding base to produce canines for explosives detection.

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