Effective border management that, with minimal disruption to legitimate trade and travel, prevents illegal movement across the border, raises revenue and provides trade statistics.
Customs measures performance against the Outcome stated above and the Outcome targets listed in the 2006-07 Portfolio Budget Statements. Our performance against these targets is demonstrated in the table below.
Figure 5: Outcome performance against targets set in 2006-07 Portfolio Budget Statements
* Targets may be performance targets, service level targets or estimates.
** Performance targets cannot be estimated through any reliable statistical or other method.
~ Total number of interceptions by Customs and the Australian Defence Force.
# Revenue excludes the dollar value of Automotive Competitiveness and Investment Scheme (ACIS) credits acquitted (monies forgone by Customs). An ACIS credit is a duty liability not paid but acquitted against a credit granted under the Automotive Competitiveness and Investment Scheme set out in the ACIS Administration Act 1999.
^^ Revised forecast for FFVs was provided in the Portfolio Additional Estimates Statements.
In 2006-07 Customs:
- cleared 8.1m air cargo consignments and 2.2m sea cargo consignments (6.1m air cargo and 2.0m sea cargo in 2005-06)
- processed more than 22.6m people through international airports and seaports (21.7m in 2005-06)
- achieved more than 99 per cent success in transmitting an authority to deal within 15 minutes of receiving finalised details, for electronically lodged declarations (99 per cent in 2005-06)
- achieved 96.5 per cent success in processing arriving international passengers through the entry control point within 30 minutes of arrival (94.7 per cent in 2005-06)
- conducted aerial surveillance over coastal and offshore areas, equating a total area of more than 161.5m square nautical miles (142m square nautical miles in 2005-06)
- seized 610kg cocaine (78.1kg of cocaine in 2005-06), 812.1kg of MDMA (ecstasy) (435.2kg of MDMA in 2005-06), 27.6kg of amphetamine-type stimulants (90.6kg of amphetamine type stimulants in 2005-06), 81.8kg of heroin (50.1kg of heroin in 2005-06) and 45.7kg of cannabis (47.3kg of cannabis in 2005-06)
- collected customs duties amounting to more than $5.6b (about $5.0b in 2005-06). In addition, Customs administered $1,519m of government concessions including $1,222m under the Tariff Concession Scheme ($1,038m in 2005-06) and $103.9m in duty drawbacks to industry ($117m in 2005-06).
Customs has an activity-based costing model, which is used to assign costs against Customs Outcome and Outputs. The model assigns an activity to an Output producing a complete picture of Customs costs, refer to Figures 6 and 7. pproximately 74 per cent of Customs costs can be directly attributed to an Output. For the remaining 26 per cent, the costing model allocates overhead expenses to Outputs based on the number of full-time equivalent staff per Output, with the exception of information technology (IT) and property. Customs assigns IT costs based on IT usage and property costs based on square metre usage.
Figure 6: Resources allocated for Customs Outcome 2006-07
* Full year budget, including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Estimates Statements.
# Price includes Resources Received Free of Charge from Australian Defence Force.
^ The majority of this variance ($83m) relates to the recognition of an increase in the Resources Received Free of Charge provided to Customs by the Department of Defence.
** Total price of Outputs compares the total of the price derived from estimated revenue to the total of the prices derived from actual expenses. The difference between the actual total price of outputs and the actual total revenue for outputs reflects Customs operating surplus for the year.
The resources allocated for the 2007-08 Budget are aligned
with a new Output structure. These figures are represented separately
in Figure 7.
Figure 7: Resources allocated for Customs Outcome 2007-08
*** Budget as announced in the Portfolio Budget Statements.
# Price includes resources received free of charge from the Australian Defence Force.
The total price of Outputs in the initial 2006-07 Portfolio Budget Statements was $1,131.0m, including an appropriation from government of $934.6m and revenue from other sources of $196.4m.
Customs was also appropriated an equity injection of $37.2m in 2006-07. This included the provision of capital funds associated with initiatives such as expanding Customs closed circuit television surveillance capability, providing infrastructure to increase apprehension of illegal foreign fishing vessels, enhancing capability to inspect and respond to high-risk export air cargo and equipping Customs officers with personal defence equipment.
In the Portfolio Additional Estimates Statements 2006-07, the total price of Outputs was revised to $1,140.5m (an increase of $9.5m). The increase was largely due to additional funding provided by government for stage two of the Australian Maritime Identification System development.
The Portfolio Additional Estimates Statements also provided an additional $0.9m in equity bringing the total equity injection in 2006-07 to $38.1m. The additional $0.9m in equity also relates to stage two of the Australian Maritime Identification System development.
Subsequent to the Portfolio
Additional Estimates Statements, Customs appropriation was
reduced by $21.3m through the 2006-07 Portfolio
Supplementary Additional Estimates Statements resulting
in an amendment of the total price of Outputs to $1,119.2m.
The adjustment principally relates to the return to government
of $20.8 due, in the main, to a reduction in processing costs
as a result of the focus on illegal foreign fisher apprehensions
and the destruction of seized vessels. This has significantly
reduced the level of illegal foreign fishing in Australia's
northern waters.
We provide a range of services to assist almost 100 federal and state agencies to achieve their outcomes. The relationship between Customs services provided to our key agencies and Customs Outputs are detailed below.
These services are normally governed by inter-agency memorandums of understanding and service level agreements that are periodically reviewed.
We also administer legislation on behalf of government agencies, especially in relation to the movement of goods and people across the Australian border.
Services provided by Customs in support of the key agencies include:
* Customs has included details of contributions from six state government agencies, as examples of its support for state agencies. Customs receives support from all states.Services provided by other agencies in support of Customs include:
* Customs has included details of contributions from six state government agencies, as examples of its support for state agencies. Customs receives support from all states.
