Year at a Glance

Figure 1: Customs Major Achievements During 1999-2000

Customs completed preparations to ensure the successful introduction of the Government's Tax Reform Package for both the organisation and our clients on 1 July 2000. Customs preparations for the Sydney 2000 Olympic and Paralympic Games were tested and reviewed following the Olympic test events. The cargo arrival phase began and seizures of counterfeit merchandise continued. Significant progress was made in implementing the recommendations of the Prime Minister's Task Force on Coastal Surveillance and Customs detected a record number of suspect unlawful non-citizens during the year. Customs conducted its first United Nations support role in assisting to establish border controls in East Timor. Customs seized record levels of narcotic and performance enhancing drugs.

Customs Overview

Customs Vision is to be a world leader in Customs Administration delivering high quality service to the community, industry and commerce.

Customs principal roles are:

• to facilitate trade and the movement of people across the Australian border while protecting the community and maintaining appropriate compliance with Australian law;
  
  
• to efficiently collect customs revenue;
  
  
• to administer specific industry schemes and trade measures.

Authority and Legislation

Customs derives its authority and powers principally from the Constitution, which provides for the levying of customs duties and for laws with respect to trade and commerce.

The Department of Trade and Customs was established at the time of Federation on 1 January 1901. Customs was established in its current form, consisting of a Comptroller-General (later retitled as Chief Executive Officer) and staff, on 10 June 1985, by subsection 4(1) of the Customs Administration Act 1985.

Customs constitutional authority is given legislative expression through the Customs Act 1901, the Customs Tariff Act 1995 and related legislation. Customs also administers legislation on behalf of other government agencies, principally in relation to the movement of goods and people across the Australian border.

Customs became responsible to the Minister for Justice and Customs, Senator the
Hon. Amanda Vanstone, on 21 October 1998. In the Attorney-General's Portfolio Budget Statements, Customs is included in the maintenance of law, order and safety group of agencies.

Outcome/Output Structure

Customs outcome and output structure for 1999-2000 is shown in Figure 2.

Figure 2: Customs - 1999-2000 Outcome/Output Framework*

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.
OUTPUT 1 Facilitation of the legitimate movement of goods across the border, while intercepting prohibited and restricted imports and exports.	OUTPUT 2 Facilitation of the legitimate movement of people across the border, while identifying illegal movements.	OUTPUT 3 Coastal and offshore surveillance and response.	OUTPUT 4 Administration of customs duty and sales tax#, other border-related revenue collections, and import/export statistics.	OUTPUT 5 Anti-dumping and countervailing administration.

* Output prices are included in Figure 8.

^# From 1 July 2000, Output Four will be amended to: the administration of customs duty and indirect taxes, other border-related revenue collections, and import/export statistics.

The transition from Customs previous program/sub-program structure to the new outcome/output structure is illustrated in Appendix B.

Organisational Arrangements

Customs is a diverse organisation where core business activities often span multiple functions. To ensure that there is a cohesive and client-oriented approach to the delivery of services, one senior manager has been made specifically accountable for each of the five outputs.

Figure 3 identifies these senior managers.

Figure 3: Output Coordinators

Output	Senior Manager
1	National Director Border
2	National Director Border
3	Director General Coastwatch
4	National Director Commercial
5	National Manager Trade Measures

Customs Locations

Figure 5: Location of Customs Offices

Consultative Mechanisms

Customs chairs or is an active member of many consultative committees relevant to its responsibilities. These include:

Minister's Advisory Council on Customs (MACC)

MACC provides advice on matters emerging from the trading community that might impact on the administration, operation and management of Customs service delivery while participating in the development, implementation and evaluation of specific Customs related issues.

MACC has proved effective in obtaining the views of the private sector on the performance of Customs, its relationship with other agencies at the border and future directions.

Customs National Consultative Committee (CNCC)

Customs chairs the CNCC, which provides a national forum for communication of Customs policies, practices and procedures relevant to the trading community. CNCC works in partnership with the trading community to resolve any perceived difficulties and is an important forum for regular consultation on a wide range of Customs matters.

Heads of Commonwealth Operational Law Enforcement Agencies (HOCOLEA)

HOCOLEA was endorsed by the Commonwealth Government as the primary consultative mechanism for law enforcement policy issues extending beyond the responsibilities of the Commonwealth Attorney-General's portfolio. The Committee comprises the Heads of 11 Commonwealth law enforcement, taxation, and regulatory agencies and departments.

The Chief Executive Officer (CEO) and Deputy CEO of Customs participated in HOCOLEA meetings and Customs continued to provide secretariat support. HOCOLEA deliberations focussed on the various law enforcement, management and regulatory challenges facing HOCOLEA agencies. Customs continues to provide support for mechanisms, such as joint-agency task forces (on issues including electronic commerce and Goods and Services Tax fraud), established to explore these challenges.

National Passenger Processing Committee (NPPC)

NPPC provides advice on policy issues relating to passenger processing.

NPPC is a cost effective and non-resource intensive forum for Government bodies, with the established sub-committee of industry representatives, to consider national issues affecting the passenger processing environment. NPPC provides the opportunity for consultation, review and implementation of initiatives and Government decisions, made to provide continuous improvement in the passenger environment.

Industry Reference Group (IRG)

An IRG was established in 1999 to provide high level strategic guidance for the development of the Cargo Management Re-engineering (CMR) business model. The IRG was chaired by the Managing Director of the Australian Stock Exchange and consisted of representatives from peak industry bodies and senior representatives from the international trading community. It provided a forum to consider the competing needs of industry and government in the development of the CMR design. Its final meeting was held in April 2000.

International Activity

Customs maintains a broad program of international activity and is active in international and regional organisations. Customs completed its two year tenure as Regional Vice Chair of the Far East, South and South East Asia Region of the World Customs Organisation (WCO) in June 2000.

Customs hosted the 8^th WCO Regional Conference of Heads of Administrations for the Asia-Pacific region from 10-12 April 2000. The meeting agreed broad strategies for 2001-2002, including the addition to the 2000-2001 Regional Strategic Plan of new work on integrity, e-commerce, enforcement and improved communication, cooperation and coordination between members.

Customs is also highly active in committees and commissions of the United Nations (UN), the World Trade Organisation (WTO) and the Asia Pacific Economic Cooperation (APEC) Forum. Customs provides training and assistance to a range of international Customs organisations as part of the global effort to modernise customs procedures. It also hosts and coordinates the Customs International Executive Management Program (CIEMP) and provides the secretariat for the Oceania Customs Organisation (OCO).

These activities are supported through permanent representation at Customs overseas posts in Bangkok, Brussels, Tokyo and Washington.

Consultants

The total number of consultants engaged by Customs was 52 and the total amount paid was approximately $3.5m. Detailed information regarding consultants engaged is available here.

For the purposes of this Report, the term `consultant' was defined as `an entity, whether an individual, a partnership or a corporation, providing professional or expert advice'. Non-consultancy contracts for services, which are typically far more restrictive in the degree of latitude afforded to the contractor, were not included.

Advertising and Market Research

$114 165.20 was paid to AIS Media for advertising.

Supplementary Information

The following documents, available on request, provide further information on the activities and management of Customs:

• Corporate Plan;
• Corporate Statement;
• Customs Service Charter;
• Customs Figures (quarterly statistical bulletin);
• Manifest (Australian Customs Service Journal);
• Customs News (staff newspaper); and
• Something to Declare (news publication primarily designed for media).

Brochures and fact sheets detailing Customs activities are also available on request.

Customs Website/Customs Information Centres

This Report and additional information is on the Customs website (http://www.customs.gov.au).

Customs related enquiries could also be directed to your nearest Customs Information Centre (CIC).

Appendix C lists the contact details for each CIC.

Requests for further information should be directed to:
Leon Bedington
Director
Corporate Communication
Australian Customs Service
5 Constitution Avenue
Canberra ACT 2600
email: (leon.bedington@customs.gov.au).

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