DAFF: fees that just continue to increase and increase

If there is one department that causes industry so much frustration, pain and unpredictability – the gold trophy has to go to the Department of Agriculture, Fisheries and Forestry (DAFF).

DAFF have enjoyed at two increases in 2023, 1) on 16 January 2023 and 2) a further increase on 01 July 2023.

Up to and including 15 January 2023, importers would pay the DAFF

$38 for air freight –  Import Processing Charge [IPC] – for goods over $1000 AUD

$49 for sea freight LCL and FCL –  Import Processing Charge [IPC] – for goods over $1000 AUD

From 16 January 2023 up to and including 30 June 2023, importers would pay the DAFF

$38 for air freight –  Import Processing Charge [IPC] – for goods over $1000 AUD

$58 Sea freight LCL and FCL – Import Processing Charge [IPC] – for goods over $1000 AUD

From 01 July 2023, importers now pay the DAFF

$43 for air freight –  Import Processing Charge [IPC] – for goods over $1000 AUD

$63 Sea freight LCL and FCL – Import Processing Charge [IPC] – for goods over $1000 AUD

Up to and including 15 January 2023, the DAFF were scheduled to receive approximately $87,000,000 through IPC collections for sea freight Full Import Declarations [FID’s].

The DAFF were then aligned to receive approximately $100,000,000 through IPC collections for sea freight Full Import Declarations [FID’s] from 16 January 2023.

The DAFF is now on track to receive approximately $112,000,000 through IPC collections for sea freight Full Import Declarations [FID’s] from 01 01 July 2023.

I have not even touched upon how much the DAFF will receive in IPC collections for air freight FID’s which will equate to approximately $50,000,000.  

I have not even touched upon how much extra the DAFF now receive for document processing and inspections.

The DAFF also charges importers via their customs brokers document processing fees, which also increased as of 01 July 2023.

The DAFF continues to not be able to process import documentation releases or inspections in a timely fashion and as a customs brokerage we now elect to pay overtime to the DAFF for our document processing requests.

I hope that the two industry bodies keep the heat on the DAFF to be able to deliver a stable and reliable service for importers and their customs brokers.

New Zealand and Australia are both island countries; the New Zealand Ministry for Primary Industries [MPI] is also concerned and in charge to protect their borders from introduced pests.

The New Zealand Customs Service [NZCS] collects the IPC of $75.12 and provides the MPI with $46.40 from all importers who import over $1000 NZD; whether the cargo arrives via air, sea or post.

New Zealand appears to be able to manage their Quarantine risks with their cost recovery measures that haven’t changed much since 2017.

Why does DAFF need to continually increase their fees?   Why is DAFF unable to provide better service and turnaround times for 1) document processing and 2) inspections considering that they have enjoyed two increases in this calendar year?

If DAFF were a private company, they would be out of business.