Output 4 - Administration of Customs duty and indirect taxes, other border-related revenue collections, and import/export statistics
Output 4 pricing is shown in the financial statements.
To administer Customs duty and indirect taxes, this Output covers processing of:
- all imported and exported cargo including postal items
- items entering and leaving Australia with passengers and crew.
Related activity covered under this Output includes:
- tariff classification, origin and valuation services
- licensing
- real time and post transaction compliance activity related to revenue protection and collection
- the investigation of industry referrals
- the administration of drawback, refund and concessional arrangements for importers and exporters
- investigations and prosecutions related to import fraud and Customs duty evasion.
The Output also includes:
- Customs-related revenue collections associated with craft movements and collection of the Passenger Movement Charge
- processing and compliance activity related to imported and exported goods to collect and validate import and export statistics
- the assessment and collection of goods and services tax (GST), luxury car tax (LCT) and wine equalization tax (WET) and compliance activity associated with these taxes
- administration of the Tourist Refund Scheme (TRS).
Key operational objectives in 2004–05 were:
- implementation of the Cargo Management Reengineering project
- Free Trade Agreement negotiations, legislation and administrative arrangements
- development and implementation of the Compliance Assurance Strategy
- delivering an effective investigation capability
- redevelopment of the Tariff Concessions (TARCON) and the Tariff and Precedent Information Network (TAPIN) computer systems
- legislation and administrative arrangements to remove the three per cent Customs duty under a Tariff Concession Order
- implementing the new passenger and crew duty free concessions.
Key achievements were:
- delivery, implementation and management of the transition to the exports component of the Integrated Cargo System and preparation for the transition to the imports component
- Thailand–Australia Free Trade Agreement and the Australia–United States Free Trade Agreement entered into force
- redevelopment of TARCON and TAPIN computer systems
- removal of the three per cent Customs duty under a Tariff Concession Order
- implementation of the new regime for passenger and crew duty free concessions.
Figure 29: Performance against targets set in the 2004–05 Portfolio Budget Statement–Output 4
Quality/quantity performance measures |
Target* |
Actual |
|---|---|---|
Collection of revenue |
||
Quality |
||
Electronic systems availability to Customs clients |
99% |
COMPILE 100.0% |
(availability as a proportion of prime time) |
EDIFICE 99.9% |
|
EXIT^ 100.0% |
||
ICS EXPORTS# 98.7% |
||
TAPIN 100.0% |
||
Number of external appeals against decisions: |
||
Granting of Tariff Concession Order |
10–15 |
2 |
Eligibility for 4th Schedule By-Law |
1–5 |
1 |
Quantity |
||
Significant revenues collected (including Customs duty, GST collected and Passenger Movement Charge) |
$7 878m (net of GST deferred) |
$7 892m |
Number of customs import entries lodged |
Electronic 3 400 000 |
3 473 385 |
Manual 22 000 |
23 451 |
|
Number of drawback applications |
10 500–11 500 |
9 136 |
Number of refund applications |
23 000 |
31 467 |
Number of air cargo screened free consignments |
2 250 000 |
2 423 320 |
Major duty concessions administered by Customs |
||
Tariff Concession System |
$440–$480m |
$548.37m |
Cheese and Curd Quota |
$9–$11m |
$12.52m |
Revenue compliance verification |
||
Quality |
||
Revenue and compliance assurance activity: |
||
Imports – Total Customs value subject to compliance activity as a proportion of total Customs value reported |
10% |
15% |
Exports – Total FOB subject to compliance activity as a proportion of total FOB reported |
10% |
21% |
Proportion of drawback and refunds delivered in |
Drawbacks 90% |
96.4% |
accordance with standards |
Refunds 100% |
99.9% |
Proportion of concessional arrangements for importers and exporters delivered in accordance with standards |
100% |
100% |
Number of fraud/evasion cases adopted for prosecution |
18–25 |
17 |
Quantity |
||
Revenue adjustments |
||
Recoveries |
** |
$7.15m~ |
Refunds |
** |
$0.17m~ |
Number of fraud/evasion cases adopted for investigation |
55–75 |
72 |
Price |
$190.964m |
$162.790m |
* Targets may be performance targets, service level targets or estimates.
** Performance targets cannot be estimated through any reliable statistical or other method.
^ Customs information system for processing export entries and manifests, EXIT, was replaced by ICS Exports in October 2004.
# ICS Exports is the export component of the ICS introduced in October 2004 to replace EXIT.
~ The value of Customs duty identified from compliance activity.
Figure 30 excludes the revenue impact from compliance activity which prevented illegal products from entering the market. The detection and seizure and destruction of illegal tobacco reported under Output 1 prevented the evasion of $40.1m in revenue.
Figure 30: Revenue collected on behalf of other agencies ($m)*
2002–03 |
2003–04 |
2004–05 |
|||
|---|---|---|---|---|---|
Indirect taxes collected from importers^ |
|||||
GST collections# |
1 991.87 |
2 051.33 |
2 361.62 |
||
LCT |
1.08 |
1.25 |
1.21 |
||
WET |
3.34 |
4.78 |
5.40 |
||
Total indirect taxes |
1 996.29 |
2 057.37 |
2 368.23 |
||
Passenger movement charge (PMC) |
290.58 |
329.79 |
363.84 |
||
Marine navigation levy |
45.09 |
44.04 |
41.67 |
||
Protection of the sea levy |
3.90 |
4.32 |
4.68 |
||
AQIS fees+ |
44.71 |
55.03 |
56.83 |
||
AQIS fines~ |
1.68 |
1.10 |
0.99 |
||
Wood levy |
0.80 |
0.89 |
0.92 |
||
Total |
2 383.03 |
2 492.52 |
2 837.17 |
||
* Figures on an accrual basis.
^ Indirect taxes collected do not include the value of GST and WET refunded on behalf of the Tourist Refund Scheme.
# Excludes the GST liability raised on imports which is deferred rather than immediately collected. The Australian Taxation Office acquits these liabilities in subsequent BAS statements from importers. In 2004–05 GST deferred was $13.6 billion.
+ Fees collected on behalf of AQIS. These include fees for entry screening, HVLV and processing fees plus EFT JEMS collections. Previous financial year showed quarantine entry fee (EFT JEMS) only.
~ On the spot fines collected on behalf of AQIS including the collections of Quarantine Infringement Notices issued.