This Output group covers the processing of goods across the border in order to prevent the import or export of prohibited items and to control the movement of restricted items, including:

• search and compliance activities for ships and cargo entering and departing Australia
• surveillance of waterfronts
• controlling or restricting the movement of restricted or prohibited goods on behalf of other agencies
• investigations and prosecutions related to the Customs Act 1901 for non-narcotic prohibited goods, import fraud and duty evasion
• the evaluation and implementation of a range of new technologies
• policy development and management of container examination facilities
• land-based surveillance of the coastline, and marine surveillance and response carried out for specific operations by the National Marine Unit and the surveillance patrols of the Southern Oceans
• processing of apprehended foreign fishers
• real-time and post-transaction compliance activity related to revenue protection and collection.

PERFORMANCE AGAINST TARGETS

Figure 21: Performance against targets set in the 2006-07 Portfolio Budget Statements for Output 2

_{* Targets may be performance targets, service level targets or estimates.
** Performance targets cannot be estimated through any reliable statistical or other method.
*** Includes 63 patrol days conducted in northern waters.
< Revised from 4,700 to reflect a significant reduction in the number of FFV incursions.
^ Twenty-foot equivalent unit (TEU) refers to a generic measure for sea cargo containers. A 20-foot container equals one TEU and a 40-foot container equals two TEUs.
## Audit targets were revised in the Customs Cargo Compliance Program 2006-07 to focus on higher risk transactions - 450 import and 50 export audits.}

OUTPUT 2 AT A GLANCE

The following provides a brief summary of Customs performance against Output 2.

• Implemented measures improving industry compliance concerning the timeliness and accuracy of ship, aircraft and cargo reporting.
• Implemented new export air cargo security measures in cooperation with Department of Transport and Regional Security and Australian Quarantine and Inspection Service.
• Evaluated, upgraded and/or implemented new technologies including new radiation detectors, explosives detection x-ray system, chemical agent detection equipment, infrared spectroscopes, mobile and cabinet x-ray units, communication and metal detection system.
• Contributed to managing illegal foreign fishing in our northern waters through deployment of an additional response vessel Australian Customs Vessel Triton, establishing new and upgrading short term processing facilities, and undertaking contractual arrangements for medical checks and air transport for illegal foreign fishers.
• Significantly increased the detector dog breeding and training program and capacity building to satisfy demand from domestic and international enforcement agencies. This included sufficient dogs to meet Australian Federal Police (AFP) requirements for Asia-Pacific Economic Cooperation. The concept of dual handling to detect narcotics and explosives/firearms was explored as a way of achieving more effective use of resources.
• Enhanced closed circuit televisions monitoring and analysis capability at Australian international airports and sea ports. This included establishing the Airports National Monitoring and Analysis Centre in Melbourne.
• Continued to trial and deploy new mail screening technology for detecting explosives, firearms and firearm parts.
• Enhanced Customs response to identify crime through participation in the Commonwealth Identity Security Strike Teams.
• Worked collaboratively with AFP and the Australian Crime Commission to combat threats posed by amphetamine-type stimulants and precursor chemicals.

MAJOR GOVERNMENT INITIATIVES

ENHANCED RESPONSE TO ILLEGAL FOREIGN FISHING

As part of the 2006-07 Budget, Customs received $197.4m over four years to boost its capability to detect and apprehend more illegal foreign fishing vessels (IFFVs). This was part of a $389m cross-portfolio initiative involving the Departments of Agriculture, Forestry and Fisheries, Defence, Environment and Water Resources, Foreign Affairs and Trade, Immigration and Citizenship, and Attorney-General's.

Customs measures included:

• funding to build or upgrade temporary on-land processing facilities, medical examinations for illegal foreign fishers and air transport to the Immigration Detention Facility in Darwin
• chartering a large armed patrol vessel, ACV Triton, which commenced 12 months of operations at the end of January 2007
• leasing of a rapid response helicopter to detect and respond to landings or abandoned vessels
• contracting of 20 private vessels, ranging from large research ships to fishing trawlers, to provide towing and transportation services from January 2007 as needed on a standby basis
• engagement of indigenous communities in northern Australia in pilot programs to conduct surveillance for IFFVs
• placement of a Customs officer in Jakarta to work with Indonesian authorities on deterring fishermen from poaching in Australian waters.

Customs forecast that in 2006-07 it would detain and process 4,700 illegal foreign fishers (IFFs) but in the period July 2006 to December 2006, sightings of illegal vessels in our northern waters declined despite an increase in surveillance flights. Apprehensions further decreased in the January to March 2007 quarter leading to a government decision to revise the target to 2,900 IFFs. The actual number of IFFs detained this year was 1,398.

For details of the number of IFFV apprehensions and reasons behind the decline in the number of sightings, refer to Output 4, Illegal Foreign Fishing in Northern Waters.

CUSTOMS RESPONSE VESSELS

In April 2007, four new 12-metre Customs response vessels were commissioned following a tender evaluation process. The vessels, known as River Class, will be stationed in Darwin, Thursday Island, Gove and Weipa. They will transfer apprehended fishers and their equipment from Customs and Navy vessels to shore allowing the larger Customs and Navy response vessels an early return to their offshore patrol areas.

The vessels will respond to sightings of foreign fishing vessels beached or adrift close inshore and patrol inshore waters when not committed to higher priority transfer or response taskings. Delivery of the first vessel is scheduled for July 2007 with the remaining vessels to be rolled out by the end of 2007.

REPLACEMENT OF THE BAY CLASS AUSTRALIAN CUSTOMS VESSELS

In 2006-07 Customs investigated options to replace the current Bay Class Australian Customs Vessels with improved technology. The 38 metre Bay Class vessels were first commissioned in 1999 and are built of aluminium and powered by two MTU 1050-kilowatt diesel engines, providing an endurance of 1,000 nautical miles at 20 knots and considerably more at lower speeds. The fleet of eight vessels has inshore and offshore surveillance and response capabilities and performs a variety of tasks for Customs and other Commonwealth, State and Territory agencies. The fleet has reached its half-life making replacement a high priority.

EXPANDED ROLE IN AUSTRALIA'S NORTH

Due to the increased focus on illegal foreign fishing (IFF) in Australia's northern waters, our enforcement operations officers in the Northern Territory have had to perform a range of tasks not normally undertaken by Customs staff.

They have participated in a variety of training programs covering legislation, operational safety and other training in the maritime and aviation environments. This enables officers to perform a variety of tasks such as:

• providing the rapid response team capability for the helicopter based in Gove during tactical flights and general surveillance duties on routine surveillance flights
• placement on the Australian Customs Vessel (ACV) Triton, to support crew activities and provide briefings on IFF activities
• acting as escorts on flights from Broome, Thursday Island, Weipa and Gove to Darwin for the relocation of detained IFF to the Northern Immigration Detention Facility in Darwin
• supporting other regional colleagues by assisting with the apprehension of illegal foreign fishing vessels. This was demonstrated when ACV Triton apprehended 50 illegal fishers at Ashmore Island and transferred the IFFs to Darwin for processing
• conducting remote area patrols with the support of indigenous rangers to improve information flows.

STRENGTHENING AIR CARGO SECURITY MEASURES

In the 2006-07 Federal Budget the government announced a $48m package of initiatives aimed at enhancing security over export air cargo carried on passenger aircraft. These measures were jointly implemented by Customs and the Department of Transport and Regional Services (DOTARS) in partnership with industry. Customs received $35m for the following initiatives that have either been fully implemented or are nearing completion.

• The completion of a tender process to acquire and deploy five additional mobile x-ray vans to examine export air cargo consignments at premises not located at international airports. The vans will be delivered by October 2007.
• Deployment of eight of 20 additional firearms and explosives detector dog teams with another
  five teams in training and the entire 20 being deployed by June 2008.
• The establishment of a National Export Aircargo Targeting cell comprising an additional 13 intelligence staff which has commenced identifying potential high risk export cargo.
• Continued progress with the feasibility study on advance export data reporting by express couriers, including a preliminary report released in June 2007.
• Delivery of a security awareness package for Customs and air cargo industry staff.

Customs also assisted DOTARS with an evaluation of x-ray equipment and its capacity to detect explosives concealed within cargo. We provided expert advice on the use of x-ray equipment in a cargo environment, provided our x-ray equipment for testing purposes and assisted in the evaluation of commercial x-ray equipment.

In 2007-08 we will continue to focus on finalising the implementation of the air cargo security measures and undertake an evaluation of these measures. This will involve continuing to liaise closely with industry as well as with external agencies such as DOTARS and the Australian Quarantine and Inspection Service.

OPERATIONAL PERFORMANCE AND IMPROVEMENT INITIATIVES

REVENUE COMPLIANCE ACTIVITIES

The range of compliance activities used by Customs reflects the diversity of client behaviors and operational responses. Activities include post transactional audit activity (benchmark, focused and desktop) and real-time interventions into import and export cargo.

Benchmark audits use a statistically valid sample of the importing community to provide an indication of the level of compliance with Customs-related law. Companies that exhibit high levels of non compliance in a benchmark audit are subject to further compliance activity such as focused audits.

Focused audits check specific compliance aspects of a client's activities relevant to Customs. They are conducted in response to identified risks and maximise the impact of audit activity by focusing on the area of highest risk in the client operations.

Desktop audits are document verification checks of nominated transactions. The actual number of transactions checked will depend on the level of import or export activity and on the risks they present. Desktop audits are generally conducted to monitor the activities of clients where the specific risk can be sufficiently addressed by the examination of commercial documents.

During 2006-07, benchmark audit results for 2005-06 were reported to the Australian National Audit Office. The results confirmed that revenue leakage of goods and services tax (GST) and  duty in the import sectors was not material. We estimated GST and duty leakage to be less than one per cent. Leakage that is within plus or minus two per cent is considered, by the Australian National Audit Office, not to be of a material level.

The figures below show the number of benchmark, focused and desktop audits carried out in 2006-07. Customs program of audits helps ensure that people report their importations to Customs on time and accurately and that they pay the right amount of revenue. Where errors are found, adjustments to revenue are made, errors are corrected and further education is provided to assist importers to comply with their Customs obligations.

Figure 22: 2006-07 Benchmark, focused and desktop audit program

In achieving a total of 559 audits for the year Customs exceeded last years total numbers by 59 per cent and the total Portfolio Budget Statements (PBS) targets by 40 per cent. To ensure the most effective use of audit resources Customs increased the total targets and changed the mix of audits from the original PBS targets to concentrate on higher risk import transactions. The new internal targets of 450 import and 50 export audits, published in the Compliance Program 2006-07, were also exceeded by 11 per cent and 18 per cent respectively.

REVENUE COVERAGE

Customs compliance activity aims to cover a wide range of the importing community with a focus on high value importers and high risk companies.

Customs conducted post-transaction compliance activity across a range of companies. The customs value of all goods imported by these companies, $58.35b, represented 31.81 per cent of a total value of imports of $183b. The total value of the goods subjected to post-transaction compliance activity was $4.47b (2.44 per cent of the total value of imports).

Real-time import compliance activities covered a further 7.06 per cent of the value of imports. These activities included leverage exercises, industry referrals and action resulting from profile matches.

For exports, the free on board (FOB) value of all goods exported by companies subjected to post transaction compliance activity was $16.75b, representing 9.87 per cent of a total value of exports of $169b. The total value of exported goods subject to post-transaction compliance activity was $2.22b, representing 1.31 per cent of the value of exports.

Real-time export compliance activities covered a further 14.36 per cent of the value of exports. These activities included actions resulting from profile matches, export events and referrals.

Figure 23: Percentage of total value of customs imports and exports in 2006-07 subject to compliance activity

_{* CVAL means Customs value of the goods for duty purposes.
~ FOB defines the cost of the goods, including any cartage costs, incurred in placing goods on board a vessel at the place of export.
# Coverage refers to the total value of goods imported/exported by companies subject to post-transactional compliance activity.}

CARGO REPORTING COMPLIANCE STRATEGY

Changes to the reporting requirements for cargo reporters, instituted in January 2005, enables Customs more time to inspect cargo of interest while allowing the quick release of low risk cargo.

Timely reporting of cargo is a central component of the December 2006 Customs Cargo Reporting Strategy. Key elements of the strategy include monitoring the timeliness of cargo reports, providing feedback to cargo reporters on levels of compliance, education and where appropriate, taking action under the Infringement Notice Scheme if cargo reporters fail to meet their obligations.

Timeliness of sea cargo reporting is now at its highest level since the 2005 changes, with an improvement from an average of 69 per cent on-time reporting in 2005-06 to 84 per cent in 2006-07. On-time reporting of air cargo has also improved from an average of 87 per cent in 2005-06 to 94 per cent in 2006-07.

For more information on Customs working with industry to ensure timely and accurate cargo reporting, refer to the article 'Timely Interaction with Industry'.

NATIONAL INDUSTRY LEADS

Customs started the National Industry Lead program to draw together a group of subject matter experts within Customs on compliance issues. Members of the group are called upon, by Customs officers nationally, for technical, operational and strategic guidance on appropriate compliance activity for certain industries and risks.

In 2006 new National Industry Leads were appointed within the regions and Central Office to address the compliance environment as a whole. The expansion of these roles allows Customs to develop a more strategic approach to revenue and border protection risks, treatments and key performance indicators.

National Industry Leads are also consolidating the mapping of risk within their industries or areas of interest. This will allow Customs to concentrate resources on high and emerging risks, while continuing to monitor lower category risks. The information provided by the National Industry Leads at the end of each year is used to determine future compliance treatments and improvement strategies.

The program structure has also assisted with the development of the expanded Customs Compliance Program (CCP) for 2007-08. The objective of this program is to publish a document that details Customs compliance approach, its clients and their obligations. The CCP for 2007-08 will cover compliance policy and compliance activities relating to passengers, container examination facilities, trade measures and various industry sectors. The CCP will also include an expanded section on external agencies and departments on whose behalf we administer border controls.

SUPPLY CHAIN SECURITY

In 2006-07 Customs commenced a pilot program to consider the implementation of an Australian supply chain security program, consistent with the World Customs Organization's Framework of Standards to Secure and Facilitate Global Trade.

Supply chain security is designed to secure and facilitate international trade providing protection from threats posed by international terrorism while facilitating the movement of low risk goods.

The pilot has involved working in partnership with IBM Australia, Fonterra Australia, Murray Goulburn Co-Operative Limited, Foster's Group and Australia Meat Holdings to develop, test and fine-tune assessment and validation processes that would be required for implementation of an Australian supply chain security program.

As part of the pilot, participating companies have completed security self assessments and these have been validated by Customs through a series of site inspection visits. Feedback about processes and assessments has been exchanged between Customs and each participant and this has been invaluable in refining approaches and identifying areas for improvement.

In developing the pilot, Customs has taken into account the details of similar programs implemented by trading partners including New Zealand, Singapore and the United States of America to draw on experience gained through having an operational program. Australian Customs has worked closely with Customs administrations in the Asia Pacific Economic Cooperation (APEC) region to explore opportunities to enhance trade facilitation based on a platform of security conformance and mutual recognition of programs between economies.

Work undertaken through the pilot was showcased at the fifth 'Secure Trade in the APEC Region' conference conducted in Sydney in June 2007.

During 2006-07, Australian Customs undertook and participated in 38 validation visits to Australian industry, engaged internationally on 14 occasions, and held meetings or presentations with industry on 46 occasions.

The pilot is scheduled to be completed in December 2007 and will inform the development of Australian Customs supply chain security initiatives looking forward into 2008.

ALTERNATIVE CARGO REPORTING

In August 2006 Customs established a joint Customs/industry working group to examine the feasibility of alternative approaches to sea cargo reporting. The project was initiated in response to findings from the Booz Allen Hamilton review of the Integrated Cargo System. The project introduces a sea cargo reporting model similar to the 24-hour pre-load approach adopted by the United States and Canada and planned for implementation in Europe in 2009.

The objective was to identify an alternative approach to sea cargo reporting that makes it easier for industry to comply with Customs data requirements without compromising Customs risk assessment and border protection objectives.

A joint working group that comprises representatives from the:

• Customs Brokers and Forwarders Council of Australia
• Australian Federation of International Forwarders
• Shipping Australia Limited
• Australian Quarantine and Inspection Service
• Container Terminal Operators,

has been working closely to develop an operational model for pre-load reporting and to assess costs and benefits across both Customs and industry sectors.

Extensive workshops to refine the model and work through specific issues were undertaken throughout the year. A wide range of representatives from shipping, freight forwarding and broking businesses have participated in workshops, bringing a detailed and practical understanding of sea importation business and information flows to the process.

Representatives from Customs and Shipping Australia have also met with a range of industry representatives in Europe and the United States to develop an understanding of international experiences with pre-load reporting and to better understand industry perspectives.Representatives from the Customs Brokers and Forwarders Council of Australia joined the delegation to participate in discussions in the United States.

Further work to reach agreement on a possible model and to undertake an assessment of the likely costs, benefits and border security and trade facilitation implications of any agreed model will continue in the first half of 2007-08.

EXPORT COMPLIANCE STRATEGY

Customs role in the exportation of goods is to ensure that all goods being exported from Australia are reported as required. We administer controls on behalf of permit issuing agencies on the export of restricted or prohibited goods. We also gather information regarding the nature and volume of exports to assist government and industry in policy and decision-making.

In addition to the revised export audit program target of 50, a target exceeded by 18 per cent, Customs and the newly created exports national industry leads focused on several high risk areas associated with export cargo in 2006-07. Activities include the following.

• A saturation exercise that focused on the data integrity of export declarations and cargo reports was conducted in Victoria and retrieved $750,000 in free on board (FOB) variations.
• A saturation exercise was undertaken to identify non-compliance of reporters/exporters involved in the reporting of goods requiring permits. Results show many errors being made in reporting export declarations, in particular, the classification of goods.
• An analysis and education program has been initiated in Western Australia on transshipment issues and will continue to be developed in 2007-08.
• A prescribed warehouse goods (PWGs) and duty free stores project identified that the highest risk to the revenue from diversion of PWGs is from large transactions that are primarily linked to cruise vessel provisioning. A number of activities will be conducted in 2007-08 to monitor these activities.

INFRINGEMENT NOTICE SCHEME

In 2006-07, 71 infringement notices were issued and due for payment by 30 June 2007. There were 53 notices paid and 18 notices were withdrawn.

Two specific initiatives were taken under the infringement notice scheme to respond to industry concerns regarding potential non-compliance.

Harmonized Commodity Description and Coding System (HS2007)

Amendments HS2007 came into effect on 1 January 2007.

After consulting industry a compliance approach was published, which allowed a reasonable period to implement a large number of changes. Some of these changes were complex as a class of goods was divided into numerous tariff classifications and industry had to determine the new classification for each good.

Under this approach no records of non-compliance were made by Customs and no action was taken under the Infringement Notice Scheme where it could be demonstrated that the error was a result of the implementation of HS2007. This approach extended from 1 January 2007 until 30 April 2007.

Cargo reporting compliance

In January 2007, Australian Customs Notice 2007/03 was published explaining Customs new cargo reporting compliance strategy. Changes were made to the strategy to respond to industry feedback. Our focus for compliance action was on cargo reports made after the actual arrival of a ship or aircraft at its first port or airport in Australia as specified on the actual arrival report for the ship or aircraft. Over time our focus will expand to cargo reports that have not been made within the relevant timeframe prior to the actual arrival of the ship or aircraft at the first port or airport in Australia.

DECLARATION VALIDATION EXAMINATIONS

Declaration validation examinations are conducted at our container examination facilities to verify that information declared to Customs is correct. These examinations are conducted when a container is selected for unpacking and a Customs declaration for the consignment was lodged. The consignment is examined to ensure that the goods are entered correctly and comply with Customs related law. In 2006-07, Customs conducted 9,693 examinations with an average error rate of 7.08 per cent. The errors identified by this activity most commonly relate to surplus goods and trademark infringements.

COMPLIANCE PERFORMANCE MEASUREMENT SYSTEMS

Penalties system

The treatment of non-compliance under the Infringement Notice Scheme is recorded in our online penalties system. Enhancements to the penalties system have been made as a result of an internal audit of the system in January 2007. These included allowing compliance officers to enter into the system improved information on reasons for proposed delegate decisions and an enhanced internal review process.

National compliance database

The user requirements for the first phase of Customs national compliance database were finalised on 2 November 2006. An information technology specialist was engaged to assist Customs in writing the user requirements to ensure an accurate and complete statement of work for the development of the proposed database. The database will enable Customs to better identify non-compliance, to allocate resources and to assess the effectiveness of its compliance activities. The database will address a number of recommendations by the Australian National Audit Office in its 2005-06 report, Customs Compliance Assurance Strategy for International Cargo.

SEA CARGO OPERATIONS

Customs container examination facilities (CEFs) made a significant contribution to the protection of Australia's border during 2006-07. Since the introduction of the first CEF in November 2002, illicit drugs with a street value of more than $1.5b were seized and over $100m in revenue evasion was prevented. A large number of detections for copyright, trademark, undeclared goods, quarantine, and firearms breaches have also been made. May 2007 marked the inspection of 500,000 twenty foot equivalent units (TEUs) since the commencement of the program in November 2002. Customs continues to exceed set container inspection and examination rates.

Figure 24: Customs performance at the container examination facilities

_{* TEUs inspected and examined includes import and export TEUs.
^ Complaints figures are subject to revision due to possible reclassification as a result of an investigation.}

Customs continuously analyses the complaints received in relation to CEF operations. It appears that the increase in complaints in the 2006-07 reporting year, centre on two distinct issues: unexpected fees and process delays. More specifically, the number of the complaints related to unexpected fees appears to stem from the misconception within industry that container terminal operator storage fees are accruing on containers selected for inspection at the CEF. Customs has additional free storage arrangements in place with container terminal operators, where the CEF hold is notified to the terminal operator prior to container discharge. The extra free storage arrangement (where necessary) is not calibrated in the terminal operator's system until the container is returned from the CEF. Enquiries made with the terminal operator, prior to the container return, may give the wrong impression concerning free storage arrangements.

During the 2006-07 reporting year, CEFs around Australia made numerous significant detections, resulting in the seizure of the following:

• 315.7kg cocaine
• 146.1kg MDMA (ecstasy)
• 417 litres MDMA (ecstasy)
• 80kg performance and image enhancing drugs
• 68.795 tonnes tobacco
• 34,158,600 cigarette sticks.

The CEFs were also responsible for other detections including intellectual property, prohibited items and weapons, and for referrals to other government agencies including the Australian Quarantine and Inspection Service, the Department of the Environment and Water Resources and the Australian Federal Police.

In February 2007, the Australian National Audit Office (ANAO) commenced a follow up audit on the CEFs. The aim of the audit was to assess the implementation of recommendations from Audit Report 16 2004-05 on the CEFs. The ANAO will report to Parliament in August 2007.

A range of improvement initiatives commenced at CEFs as a result of an internal review of operations to enhance the effectiveness of the CEFs. These initiatives cover container selection and operational inspection and examination processes. The review process enabled us to identify and adapt to new concealment methods and changing trends in illicit drug importations.

During 2006-07 Customs established and implemented detailed logistics plans in consultation with cargo terminal operators (CTOs) and transport service providers. These plans form the basis for efficient processing of cargo at the CEFs and aim to minimise the disruption caused to importers.

Improved storage arrangements negotiated with CTOs last financial year were implemented during July and August 2006, and provided importers with a minimum of 24 hours to collect their container following x-ray. These arrangements excluded containers which are advised to the CTOs after ship arrival. The new arrangements work well and contribute to reducing the impact of the CEFs on the importing community.

COMMERCIAL VESSELS CONCEALING DRUGS

On 26 June 2006 in Auckland, New Zealand, 18.3kg of cocaine was detected in a hull attachment on a commercial vessel, the MV Tampa, destined for Australia.

An Australian based syndicate was identified and became the focus of a large scale operation across several Australian ports. Various agencies participated in the operation including Australian Customs, New Zealand Customs, Australian Federal Police, New South Wales Crime Commission and state police from Queensland, New South Wales, Victoria and Western Australia.

On 28 September 2006 another hull attachment was detected by New Zealand Customs containing 8.7kg of cocaine on another commercial vessel, the MV Taronga (a sister ship of the Tampa), destined for Australia.

On 25 October 2006 two Australians were arrested in connection with the importations and are awaiting trial. There was no connection between the shipping line or any of its employees and the syndicate involved in the importations.

Customs is working closely with representatives of the international shipping industry and evaluating new technology to enhance its capacity to detect similar importations in the future.

UNLAWFUL LANDING OF A PERSON OF INTEREST

At the request of Vanuatu authorities, Customs provided technical expert assistance to search a vessel that had arrived from Fiji. A team of Customs officers from Sydney and Melbourne, trained in ship search, worked with local authorities to search the vessel and identify evidence linked to the unlawful landing of a person of interest. The evidence located in the search was passed to Vanuatu Customs and the master of the vessel was subsequently charged and the court case is pending.

COMMERCIAL VESSEL BOARDING AND MARITIME CREW VISA

Customs has a commitment to government to board 75-80 per cent of all commercial vessels arriving at a first port in Australia. In 2006-07 this commitment was met, and 81.58 per cent of these vessels were boarded.

The introduction of the Maritime Crew Visa (MCV), puts further onus on Customs to complete pre-arrival checks on crew to determine their immigration status. Customs officers will also complete immigration clearance of crew on commercial vessels that are boarded, to ensure they have complied with the new MCV requirements. In recognition of this an additional 66 Customs officers have been deployed at Australian seaports to ensure Customs can deliver on these policy and legislative changes.

NATIONAL MARINE UNIT

The National Marine Unit fleet within the Enforcement Operation Branch consists of eight Bay Class Australian Customs Vessels (ACVs) that provide ongoing maritime border security as part of Australia's commitment to border security. The National Marine Unit continues to commit to providing 2,400 dedicated patrol 'sea days' to the Government's National Civil Maritime Surveillance and Response program which is managed by Border Protection Command (BPC). To achieve this target, each of the eight Bay Class ACVs completes approximately 300 patrol days per year.

In 2006-07, the ACVs delivered a total of 2,488 operational sea days to the Civil Maritime Surveillance and Response program. BPC is assigned operational control of the majority of ACV operational capacity to coordinate response to sightings. ACVs conducted 1,967 patrol days in our northern waters from Cape York to the remote reefs at Ashmore Islands located some four hundred nautical miles north of Broome. These patrols played a major part in reinforcing our commitment to the enhanced whole-of-government response to the management of illegal foreign fishers in Australian waters. Increased patrolling of the northern approaches has also supported immigration controls with attempted people smuggling significantly reduced to 136 in 2006-07 compared to 2001-02 when 3,649 suspected unlawful non-citizens were detected attempting illegal entry into Australia.

Patrols to other parts of the country were also conducted on a regular basis including a number of augmented security patrols of the oil and gas installations on the North West Shelf of Western Australia. ACVs also spent 423 days patrolling Australia's east coast. These patrols resulted in the successful completion of many strategic and tactical taskings for govermnent client agencies, including the well publicised apprehension of a Taiwanese fishing vessel located north of Lord Howe Island.

Most tactical taskings completed by ACVs in Northern Australia involved the interception and boarding of illegal foreign fishing vessels on behalf of the Australian Fisheries Management Authority. The total number of apprehensions by ACVs this financial year was 97.

Figure 25: Australian Customs Vessel (ACV) surveillance and response activity

_{^ Illegal foreign fishing vessel.
# Includes merchant vessels, Australian fishing vessels, other small craft.
> Legislative forfeiture (catch and equipment seized) conducted under the Department of Agriculture, Fisheries and Forestry legislation and the Department of the Environment and Water Resources legislation.}

DETECTOR DOG PROGRAM

In 2006-07 Customs conducted a record number of training courses and increased its breeding program production by the highest quantity of any known similar program in the world. While the breeding program is predominantly in place to support Customs needs, there is a commitment to support many of our domestic and international detector dog program partners.

Customs conducted or commenced eight basic training courses. Five were delivered on narcotics detection and three in firearms and explosives detection. There were 24 successful trainee handlers (15 Customs and nine from other agencies) who graduated from six completed courses. This included eight of the 20 firearms and explosives detector dog teams that are being trained over two years to strengthen export air cargo security with a further five that commenced their training program in June 2007.

In 2006-07 there were 223 puppies born, compared with 136 last financial year, an increase of nearly 64 per cent. Many of these dogs will go on to work in other Australian law enforcement agencies or overseas Customs administrations as illustrated in Figure 26.

To achieve greater detection efficiencies, dual handling was trialled over the past 12 months in Sydney and Melbourne and initial results were positive. The concept allows for one handler to deploy with two dogs. For example, a narcotics capable dog as well a firearms and explosives capable dog is deployed with one dog handler. This increases the range of screening by teams without any increase in staff numbers. Expanding the concept into general detector dog operational deployments will be considered during the coming year.

An inter-agency Canine Steering Committee is considering ways to better coordinate Commonwealth canine resources from a whole-of-government perspective. This committee was formed as a result of a Customs and Australian Federal Police (AFP) joint review into possible opportunities for harmonising national canine resources conducted from April to October 2006. The Committee comprising AFP, Customs and Australian Quarantine and Inspection Service began regular meetings on 1 March 2007. Its purpose is to identify possible opportunities for colocation, infrastructure sharing and interoperability. Research and development projects will also be explored collaboratively.

Assistance to domestic and international law enforcement organisations

The Detector Dog Program continued to deliver support to national and international partners.

International detector dog assistance

In a significant first for the region, Australian Customs and New Zealand Police have collaborated in the development, and ongoing support for, a joint Samoan Customs/Samoan Police detector dog program.

Several visits were made to American Samoa to provide advice on training programs, operational deployment, infrastructure development, quality assurance, enhanced liaison and information sharing, and provision of training opportunities. Specialist handler training and a trained dog were provided in April 2007.

Discussions were held with Guam and Commonwealth of the Northern Mariana Islands (CNMI) Customs agencies in December 2006 on the future direction of their programs and in particular, continued productivity of the CNMI Detector Dog Training Centre located on the island of Saipan, and the future provision of dogs by Australia.

A feasibility study into the development of a detector dog breeding and training capability for Taiwan Customs was undertaken in November 2006. As a result, a strategic implementation plan was developed to enable Taiwan Customs to proceed with budget funding proposals and recruitment of key personnel. During June 2007, Australian Customs facilitated a visit by the project management team responsible for the development of the Taiwan Customs training and breeding infrastructure. Visits from breeding and training managers to undertake work experience and technical development opportunities will follow in the latter part of 2007. In return for providing this support, Australian Customs is negotiating a cooperative arrangement dealing with mutual assistance in training and use of detector dogs, information sharing, and passenger and cargo screening.

Cooperation with General Administration of China Customs (GACC) continued to develop a narcotic detector dog breeding and training capability. In October 2006 and May 2007, two groups of six puppies were donated from the National Breeding and Development Centre in Melbourne. This brings the total number of puppies transferred by Australia to the GACC breeding centre in Beijing to 18, as well as four trained dogs provided in the early stages of the program.

Two GACC officers were provided with train-the-trainer and instructor training from August to November 2006. Visits by Australian breeding and training experts during 2006 07 provided ongoing advice and support on quality assurance aspects of the breeding program and translation of training principles to the operational environment. In December 2006, ten healthy pups from Australian-donated dogs were born at the Beijing Breeding Centre.

As a result of bilateral discussions held in March 2007, Customs agreed to continue breeding assistance until 2009 and also provide five GACC instructors with training in firearms and explosives detection in preparation for the Beijing Olympics. This is scheduled for July to October 2007, with five trained dogs to return to China with their newly trained handlers.

Following on from narcotics detection training provided to Royal Malaysian Customs dog handlers last financial year, four detector dogs were provided in July 2006. An instructor visited Malaysia in September 2006 to provide training advice and assistance.

In November 2006, four dogs were supplied to Singapore Police who perform the customs screening function at the border.

Australian Customs has committed to providing New Zealand Customs, when requested, with up to five trainee detector dogs on an annual basis. Negotiations were commenced for a formal agreement on detector dog mutual assistance and information sharing.

National detector dog assistance

Within Australia, detector dog training assistance was provided to officers from Queensland Police, Northern Territory Police and ACT Corrective Services. These agencies, together with the Royal Australian Air Force and Tasmanian Corrective Services, were also provided with ongoing training advice and assistance in maintaining the quality assurance of their programs and operational deployments.

In addition to the 22 dogs supplied to overseas administrations, Customs supplied a total of 60 detector dogs to the following agencies.

Figure 26: Number of Customs detector dogs provided to other agencies during 2006-07

_{* Included sufficient dogs to meet AFP requirements for the Asia Pacific Economic Cooperation Program.
^ 11 dogs supplied; five subsequently returned.}

SOUTHERN OCEAN MARITIME PATROL AND RESPONSE

The Customs-managed armed patrol program, using a dedicated vessel the Oceanic Viking, delivered 199 southern ocean patrol days as well as 63 days on northern operations, exceeding a total performance target of 200 sea days by 62. The following results were achieved.

• The covert and overt presence of the Oceanic Viking's five patrols was successful in preventing incursions of illegal, unregulated and unreported (IUU) vessels with no illegal vessels having been detected in the Heard Island and McDonald Islands exclusive economic fishing zones since January 2004.
• Extensive coverage of Australia's Southern Ocean sovereign territories also includes joint operations with France and coordinated sailing plans. Australia participated in six joint patrols on board French vessels and French Controllers were on board four Australian patrols.
• Patrols also gathered evidence on IUU vessels that were operating in the Convention for the Conservation of Antarctic Marine Living Resources (CCAMLR) zone. This information was passed to Australian fisheries authorities responsible for the zone's management.
• Environmental checks were conducted on behalf of the Australian Antarctic Division and Bureau of Meteorology.
• Five emergency medical evacuations were carried out under Australia's international Safety of Life at Sea obligations.
• As part of the government's strategy to increase apprehensions of illegal foreign fishing vessels the Oceanic Viking undertook an additional two northern deployments during 2006-07. Two illegal foreign fishing vessels were apprehended during 2006-07.
• The Oceanic Viking apprehended a Cambodian registered foreign fishing vessel, Taruman, suspected of fishing illegally inside Australia's Macquarie Island Exclusive Economic Zone (EEZ) in June 2005. In September 2006 the Courts found the Captain and Fishing Master of the Taruman guilty of illegal fishing inside Australia's Macquarie Island EEZ. They were fined a total of $118,000 and the vessel was forfeited to the Commonwealth.

Australia strengthened its cooperation with France, whose EEZ in the southern ocean adjoins Australia's, by formalising operational level arrangements under an enforcement agreement signed in January 2007. The agreement comes under the umbrella of the Maritime Cooperation Treaty on Surveillance in the southern ocean between Australian Customs and France, which entered into force on 1 February 2005.

Australia's Minister for Fisheries, Forestry and Conservation and his South African counterpart signed a formal letter of intent in March 2007, which paves the way for a maritime cooperation treaty between Australia and the Republic of South Africa. This treaty, similar to the French treaty, will enhance coverage of both countries' respective fishing zones in the southern ocean.

OPERATIONAL SAFETY AND ARMING OF CUSTOMS OFFICERS

Customs continued implementation of the Government's November 2005 decision to progressively arm officers, with a further 302 officers in the Enforcement Operations and Investigations areas receiving training in use of force and personal defence equipment during 2006-07.

The decision to issue officers with weapons and equipment is an operational safety measure in response to heightened security risks associated with the environment in which Customs operates.

All Customs officers who undertook use of force training were required to undergo and pass medical, psychometric and fitness testing. They also undertook a three-week training course involving theory and practical assessment in the use of conflict de-escalation, self-defence techniques, batons, capsicum spray and firearms to the Australasian Police Standard.

Customs officers also undergo use of force recertification training every 12 months.

PROLIFERATION SECURITY INITIATIVE (PSI)

Customs participation in the PSI has continued to grow during 2006-07. Established in May 2003, the PSI, is a global initiative that aims to impede the flow of weapons of mass destruction and their delivery systems to and from state and non-state actors of proliferation concern. There are now some 60 countries that have indicated their support for the PSI and its principles. To date much of the practical activity of PSI has focused on a series of sea and air interdiction exercises.

During 2006-07 there was a broadening of the PSI scope of operations and a conscious effort to engage all international government agencies with responsibilities for border security and import/export control arrangements.

Customs has committed significant resources to participating in a range of conferences, working groups, exercises and outreach programs all of which are aimed at developing stronger national and regional cooperative regulatory programs.

Key activities have included:

• participation in three operational working groups (held in Singapore, Montreal and Auckland)
• leading the Australian delegation to a maritime trade seminar in London
• assisting with related activities under the auspices of the Australia Group, United Nations Security Council Resolution Working Groups and a range of technical conferences.

Customs attended international working level forums to better understand other methods of countering the illegal movement of materials related to weapons of mass destruction.

INVESTIGATIONS

We investigate serious, complex and sensitive breaches of legislation for which Customs has functional responsibility. This includes financial investigations in accordance with the Proceeds of Crime Act 2002 in support of the recovery of criminal assets associated with such offences.

Investigators work in accordance with the Commonwealth Fraud Control Guidelines 2002 and the Australian Government Investigation Standards.

We continue to work independently and jointly with other agencies such as the Federal, State and Territory police when offences detected at the Australian border are also relevant to other Commonwealth and state jurisdictions.

Revenue Fraud

In 2006-07 Customs successfully prosecuted nine complex revenue fraud cases. Of these successful prosecutions, six concerned revenue fraud associated with tobacco or cigarette importations. The penalties imposed ranged from fines, to good behaviour bonds and a periodic detection order.

Cases where penalties were imposed included a long running highly complex commercial fraud case involving the evasion of duty and taxes payable on a large quantity of cigarettes. A total of 33 convictions were recorded against two people and the company. Approximately $638,500 in fines and penalties were awarded to Customs, together with approximately $2.7m in reparation orders.

Figure 27: Summary of investigation activity for revenue fraud

_{* A 'referral' is when information is passed to the Customs Investigations Branch for further investigation. A 'case' is a referral that is found to warrant further examination. Where that examination finds sufficient evidence that an offence was committed, a brief of evidence is prepared for the Commonwealth Director of Public Prosecutions (for criminal matters) or the Australian Government Solicitor (for civil matters). In some cases, prosecution does not take place. An example of this is where the goods in question are seized and a warning issued, or a settlement is reached between the parties.
^ Includes cases adopted in previous years.}

The number of revenue fraud cases adopted for prosecution was lower than the projected target in the 2006-07 Portfolio Budget Statements. This is primarily a consequence of a redirection of Branch resources to respond to an increase in the number of high priority community protection cases referred to the Branch.

Community Protection

Customs investigates the illegitimate movement of prohibited or restricted goods such as precursor drugs, weapons, performance and image enhancing drugs, child pornography and flora and fauna to and from Australia.

During 2006-07, we successfully prosecuted 111 community protection cases. The penalties imposed ranged from fines to imprisonment sentences. These cases involved various goods with the majority of the cases being concerned with non-narcotic drugs and weapons. The 2006-07 Portfolio Budget Statements forecasts for community protection cases adopted for prosecution were achieved this year, with the number of cases adopted for investigation well exceeding the estimated target and last year's figure.

Figure 28: Summary of investigation activity for community protection issues

_{^ Includes cases adopted in previous years.}

For information regarding community protection regulatory issues, refer to Output 3, Prohibited and Restricted Goods.

Proceeds of Crime Act 2002 (POCA 2002)

This year 69 POCA referrals were received, and 21 POCA referrals were adopted for investigation. This is well above the 2006-07 Portfolio Budget Statements forecasts for POCA cases adopted for investigation. Three POCA cases were adopted by the Commonwealth Director of Public Prosecutions for recovery of criminal assets, which also met the estimated target of two to four cases.

Approximately $796,000 was forfeited to the Commonwealth this financial year with an estimated $17.5m still under restraint.

Figure 29: Number of matters involving recovery under the Proceeds of Crime Act 2002

MANAGED DELIVERIES

The Customs Act 1901 requires that the Minister for Justice and Customs report annually to Parliament any managed deliveries undertaken by Customs officers in the course of their duty. A managed delivery refers to the practice of arranging the delivery of any quantity of prohibited goods or smuggled goods into the possession of a person suspected to have committed an offence, and who is expecting the delivery of those goods.

In 2006-07, Customs conducted 22 managed deliveries in relation to the illegal import of prohibited or regulated goods. A total of 24 people were arrested. Nine matters involved the smuggling of cigarettes or tobacco, another seven matters involved the importation of precursor drugs, and the remaining matters involved the importation of performance and image enhancing drugs, ketamine, and alcohol.

NEW TECHNOLOGIES

RADIATION DETECTOR PORTAL TRIAL

Customs already uses radiation detection equipment, with a fleet of 124 portable radiation detectors and 36 radiation identifiers deployed across operational environments.

Customs is trialling radiation portal monitor (RPM) systems at the Sydney Container Examination Facility (CEF). RPM systems are larger than existing equipment used by Customs, and may be better suited for examining large cargo consignments.

The trial is evaluating nine RPM systems selected through an open tender process. It commenced in May 2007 and is expected to conclude in September 2007. The outcomes of the trial will assist Customs to determine whether RPM systems should be deployed at our CEFs, and which detection equipment best meets Customs operational requirements.

ENHANCED CLOSED CIRCUIT TELEVISION (CCTV) AT AIRPORTS

Customs currently has one of the world's most comprehensive CCTV systems in terms of its national coverage, degree of integration and ability to provide remote monitoring. The CCTV technology is sophisticated and in many respects Customs is a world leader in this area. Customs use of CCTV is an innovative solution to ensure operational efficiency in challenging circumstances and environments.

During 2006-07, CCTV coverage at Australian international airports was enhanced as follows:

• the Customs Airports National Monitoring and Analysis Centre was established in Melbourne
• over 200 additional cameras were installed and existing cameras were relocated to take account of international terminal expansions or reconfigurations at Adelaide, Brisbane, Cairns, Gold Coast, Darwin, Melbourne, Perth and Sydney international airports
• additional CCTV cameras were also installed or relocated in preparation for new A380 aircraft.

Emerging technology in CCTV, including hardware, software and networking is being actively pursued by Customs and other law enforcement agencies both within Australia and overseas, to ensure that Customs remains at the forefront of these developments. Work continues to be undertaken to develop and maintain relationships with these agencies and to assess and evaluate CCTV capabilities for Customs applications.

ENHANCED CLOSED CIRCUIT TELEVISION (CCTV) AT SEAPORTS

Australia's size and extensive coastline creates a significantly different operational environment from most other countries. The investment in CCTV infrastructure at seaports enables us to fulfil our border protection function in an efficient and effective manner. For instance, use of cameras for surveillance purposes in remote ports is more cost efficient than the placement of staff. Customs use of CCTV is an innovative solution to ensuring operational efficiency in challenging circumstances and environments.

All national network cameras can be accessed and controlled from Customs National Monitoring Centre (NMC) in Melbourne.

In 2004-05 as part of increased maritime security initiatives, Customs received $22.5m to expand the existing maritime CCTV network, ensuring that all 63 proclaimed mainland ports are monitored. This project was completed by 30 June 2007.

During 2006-07 Customs:

• completed the expansion of the existing maritime CCTV network by a further 31 ports to a total of 63 ports
• increased the number of maritime CCTV cameras from 242 to 324 and connected them to the maritime NMC in Melbourne
• upgraded and relocated the maritime NMC in Melbourne to the new Customs premises at 1010 Latrobe Street
• relocated the Customs maritime CCTV District Monitoring Offices in Albany and Newcastle and commenced work on the relocation of the monitoring offices at Esperance, Dampier and Gove
• upgraded over 100 maritime CCTV cameras to state-of-the-art infrastructure.

EXPLOSIVES DETECTION X-RAY AT MELBOURNE

New automated explosives detection x-ray equipment was introduced as part of the government's Stronger Border Protection initiative. Two systems were installed at the Australia Post Sydney international mail facility in 2005-06. A third system was installed in Melbourne during 2006-07 and has been operational since October 2006.

CABINET X-RAY UPGRADE

Customs has a fleet of over 50 cabinet (baggage-sized) x-ray systems. This project was completed during 2006-07 seeing 11 cabinet x-ray systems upgraded with new detectors, generators, computers and software to enhance and modernise their detection capability at airports.

METAL DETECTION SYSTEM FOR INBOUND INTERNATIONAL MAIL

Customs received funding under the government's Stronger Border Protection initiative to screen incoming international mail for firearms and firearm parts. A purpose-built metal detection system capable of detecting firearms and firearm parts was developed and trialled during 2005-06.

During 2006-07, the detection system was refined and factory-based performance testing was undertaken. This delayed deployment and a final operational trial will be conducted at a major Australia Post international mail facility during 2007-08, before operational units are deployed.

SUBSTANCE DETECTION AND IDENTIFICATION

During 2006-07 nine additional dual mode (narcotics and explosives) ion mobility spectrometers (IMSs) were deployed, bringing the total fleet of dual mode desktop units to 50.

Following successful trials of the initial 26 instruments, Customs deployed an additional 17 portable IMSs trace detectors during 2006-07, bringing the total fleet of portable units to 43. These systems are capable of detecting explosives, narcotics and toxic industrial chemicals, and are deployed off-site in operational areas such as air cargo depots, aircraft search and vessel search.

Customs deployed an additional ten immuno-assay trace detectors in 2006-07, bringing the total fleet size to 20. These antibody-based instruments are capable of detecting narcotics and explosives and have been deployed at container examination facilities and international airports.

In 2006-07, Customs also purchased 13 infrared spectroscopes, to complement the existing fleet of 32 Raman spectrometers. These systems are capable of rapid, non-destructive substance identification. The new units will be deployed at cargo examination areas in early 2007-08, once training has been completed.

COMPUTER FORENSICS AND ELECTRONIC EXAMINATION

A large percentage of Customs investigations cases involve examining electronic devices. We use skilled computer forensics officers equipped with appropriate technologies to acquire, analyse and reconstruct electronic evidence in a manner admissible in a court of law.

During 2006-07, additional network storage equipment was installed in computer forensics areas to address the increasing volume of electronic data being examined. The ability to examine more devices has also been enhanced through additional software and hardware, together with associated training. Upgraded computer hardware was sourced in 2006-07 for electronic examination capabilities for Customs investigations and airports.

RADIO COMMUNICATIONS

During 2006-07, Customs expanded its ultrahigh frequency (UHF) radio communications networks in New South Wales and south east Queensland, to support Customs operational communications requirements.

Customs also deployed self-powered portable satellite communications systems to district offices and operational areas. The equipment was designed by Customs staff and has two different satellite systems, which support field-based transmission of encrypted voice and data communications. This innovative solution will enhance Customs border security by connecting officers in the field and in remote locations where traditional communication can be ineffective.

NEUTRON SCANNER FIELD TRIAL

As part of the government's aviation security initiative funded in 2004-05, Customs received $8.4m to trial world-first scanning technology developed by the Commonwealth Scientific and Industrial Research Organisation (CSIRO). The scanner invented by CSIRO was proposed as an innovative solution for the mass inspection of consolidated air cargo for improved aviation security and enhanced border protection.

A field trial of the neutron scanning technology was conducted between June 2006 and March 2007 at Brisbane Airport.

This field trial allowed both Customs and industry to address procedural issues as they arose and to make adjustments to the new processes associated with scanning consolidated air cargo. Customs continued to work in close consultation with the Industry Consultative Group to resolve emerging issues in a way that minimised the impact on air cargo flows.

Customs reported back to the government on the outcome of the trial, having assessed the technology and both industry and government business practices. Comparative testing undertaken during the trial indicated that, at that point, the neutron scanner had a comparable detection capability to that of existing x-ray technologies deployed by Customs. Customs and CSIRO agreed that the trial should cease and that the scanner and associated infrastructure be decommissioned.

CSIRO believe there are a range of improvements that could be incorporated into a next generation scanner. CSIRO may pursue future development of a next generation scanner with improved performance in conjunction with a commercial partner.

SUMMARY OF KEY LEGISLATIVE CHANGES

The following outlines key Customs related legislative amendments during 2006-07 for Output 2.

DUTY RECOVERY

Amendments to the Customs Act 1901 to clarify the operation of the duty recovery provisions in the Customs Act 1901 are included in the Customs Legislation Amendment (Augmenting Offshore Powers and Other Measures) Bill 2006, introduced into Parliament on 7 December 2006. The amendments will modernise the duty recovery provisions and will formalise the current Customs policy for duty recovery by placing a four-year statutory time limit on all duty recovery, other than in cases of fraud or evasion. The Bill passed the House of Representatives and was introduced to the Senate on 1 March 2007.

OFFSHORE SEARCH POWERS

Also included in the Customs Legislation Amendment (Augmenting Offshore Powers and Other Measures) Bill 2006, were amendments to the Customs Act 1901 to enable Customs officers, immediately upon boarding certain ships and aircraft, to conduct searches and seize items including weapons or evidence of specified offences.

ALTERNATIVE DUTY PAYMENT MODEL

The Customs Legislation Amendment (Border Compliance and Other Measures) Act 2007 also contained amendments to introduce a mid-month duty payment model for highly compliant importers who can demonstrate that they meet accreditation criteria relating to revenue payment, accuracy and timeliness of reporting, record retention and supply chain security. The amendments provide for payment of a mid-month estimate of customs duty for the month followed by a reconciliation payment the following month.

DANGEROUS GOODS

The Customs Legislation Amendment (Border Compliance and Other Measures) Act 2007 also included amendments to enable the Chief Executive Officer or a Regional Director to dispose of, or if necessary destroy, any seized goods where he or she is satisfied that the retention of the goods would constitute a danger to public health or safety. This will enable the disposal of items such as explosive material, chemical and biological agents.

BUILDING FOR THE FUTURE

The following provides a summary of Customs future plans for Output 2.

• Develop a more strategic approach to revenue and border protection risks, treatments and key performance indicators.
• Continue implementation of export air cargo security measures in cooperation with the Department of Transport and Regional Services and Australian Quarantine and Inspection Service.
• Manage and secure firearms associated with foreign officials, arriving in or departing from Sydney for the Asia Pacific Economic Cooperation summit in September 2007.
• Continue the program of apprehending illegal foreign fishing vessels and transporting and processing detained illegal foreign fishers. This includes leasing and operating a response vessel at Ashmore Islands and rolling out four Medium Response Vessels in Darwin, Thursday Island, Gove and Weipa by the end of 2007.
• Continue to satisfy demand for high quality dogs and detector dog training to meet Customs requirements as well as requests from other national and overseas enforcement agencies.
• Ensure that sufficient specialist trained officers, vessels and equipment are available to deliver an effective maritime patrol and response capability in southern and northern waters.
• Continue to work closely with our international and domestic agency counterparts to increase joint investigations for border offences.
• Ensure Customs fraud control arrangements reach and maintain a best practice approach.
• Modernise legislation relating to Customs investigative function and powers to reflect Customs existing responsibilities and changing operational environment.
• Continue training to arm an additional 300 officers in 2007-08.
• Further enhance closed circuit television (CCTV) monitoring and analysis capability including the introduction of a digital video recording capacity for new cameras, an off-site data storage facility for airports, and provision of a consultancy service to industry and government on effective use of CCTV.
• Continue to deploy new technologies to Customs operational sites and undertake research into new technologies.