Australian Customs Service Annual Report 2004-05 · Australian Customs Service Annual Report 2004–05 Review by the CEO This year has again been a demanding one for Customs. Some

Protecting our borders

TheAustralianCustomsServiceprovideseffectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementacrosstheborder,raisesrevenueandprovidestradestatistics.

Customsoperationalexpenditurein2004–05was$925.1mandcapitalexpenditurewas$63.4m.

In2004–05,Customsreceived4.8mimportandexportdeclarations,processed20.9mpassengers,detectedapproximately2375kgofMDMA,193kgofcocaineand176kgofheroin,plusillegalfirearms,weaponsandotherprohibitedimports,andraised$7.9binrevenue.

AnnualReport2004–05

CustomsHouse ConstitutionAvenue CanberraCityACT2601

SenatortheHonChrisEllisonMinisterforJusticeandCustomsParliamentHouseCANBERRAACT2600

DearMinister

IpresenttoyoutheAnnualReportoftheAustralianCustomsServiceforthefinancialyearended30June2005.

Thisreportwaspreparedinaccordancewithsub-section17(1)oftheCustoms Administration Act 1985,andtheguidelinesapprovedbytheJointCommitteeofPublicAccountsandAuditreferredtoinsub-sections63(2)and70(2)ofthe Public Service Act 1999.Theseguidelinesareappliedasamatterofpolicytoprescribedagencies,includingtheAustralianCustomsService,undersection5oftheFinancial Management and Accountability Act 1997.

ThisreportdetailsperformancefortheyearforCustomsfiveOutputsandtheircontributiontotheachievementoftheCustomsOutcome.

Sub-section17(2)oftheCustoms Administration Act 1985requiresyoutopresentthisreporttoParliament.

(LBWOODWARD)

4October2005

iv AustralianCustomsServiceAnnualReport2004–05

Contents

Overview

ReviewbytheCEO 2

OverviewofCustoms 6

Performance reporting

Outcome Effectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementacrosstheborder,raisesrevenueandprovidestradestatistics 14

Output1 Facilitationofthelegitimatemovementofgoodsacrosstheborder,whileinterceptingprohibitedandrestrictedimportsandexports 21

Output2 Facilitationofthelegitimatemovementofpeopleacrosstheborder,whileidentifyingillegalmovements 51

Output3 Civilmaritimesurveillanceandresponse 58

Output4 AdministrationofCustomsdutyandindirecttaxes,otherborder-relatedrevenuecollectionsandimport/exportstatistics 73

Output5 Anti-dumpingandcountervailingadministration 91

Enabling Outputs

Corporategovernance 98

Organisationalstructure 98

Seniorexecutiveandtheirresponsibilities 99

Seniormanagementcommitteesandtheirroles 100

Externalconsultativemechanisms 100

Enhancingcoordination,communicationandcooperationwithkeyinternationalstakeholders 102

Corporateplanning 104

Riskmanagement 105

Businesscontinuity 105

Certificationoffraudmeasures 105

Managementofhumanresources 106

Workforceplanning 106

Staffturnoverandretention 106

Staffingprofile 106

Workplacediversity 110

Traininganddevelopment 110

CertifiedAgreement 111

AustralianWorkplaceAgreements 112

Performancemanagement 112

v

CodeofConduct 113

Investigationsofemployeemisconduct 114

Security 115

Occupationalhealthandsafetyperformance 116

Corporateresourcemanagement 117

Managingourfinances 117

Purchasing 117

Informationandcommunicationtechnologymanagement 117

Consultants 120

Competitivetenderingandcontracting,contractmanagementandcorporateoutsourcedarrangements 122

Advertisingandmarketresearch 122

Assetsmanagement 122

Discretionarygrants 122

Eventsthatwillsignificantlyaffectoperationsorfinancialresults 122

Accountabilitytoclients 124

Clientservice 124

Socialjusticeandequity 124

ImprovingservicetoourclientsthroughtheCustomsInformationandSupportCentre 124

Complaintsandcompliments 124

Environmentalaccountability 125

Sustainability 126

Environmentalimpact 126

Socialimpact 129

Economicimpact 130

GlobalReportingInitiativeenvironmentalindicators 131

GlobalReportingInitiativesocialindicators 133

GlobalReportingInitiativeeconomicindicators 137

Externalscrutiny 139

Freedomofinformation 139

Ministerialrepresentations 140

Privacymatters 140

CommonwealthOmbudsmanmatters 140

Judicialdecisionsanddecisionsofadministrativetribunals 142

AuditorGeneral’sreports 143

ParliamentaryCommitteereports 144

vi AustralianCustomsServiceAnnualReport2004–05

Financial statements

Auditedfinancialstatements 148

Agencystatements 148

Administeredschedule 148

Appendixes

A Occupationalhealthandsafety 214

B FreedomofInformation 216

C Advertisingandmarketresearch 218

D AdministrativeAppealsTribunalandAdministrative Decisions (Judicial Review) Act 1977 219

E CommonwealthDisabilityStrategy 221

F Correctionoferrors 225

Glossary and acronyms 228

Index 232

vii

List of figuresFigure1: AsummaryofCustomsin2004–05 5

Figure2: 2004–05OutcomeandOutputframework 8

Figure3: Outcomeperformanceagainsttargetssetin2004–05PortfolioBudgetStatement 15

Figure4: ResourcesallocatedfortheCustomsOutcome2004–05 16

Figure5: ResourcesallocatedfortheCustomsOutcome2005–06 17

Figure6: Performanceagainsttargetssetinthe2004–05PortfolioBudgetStatement– Output1 22

Figure7: Numberofdetections/seizuresofprohibitedimportsforinternationalairpassengersotherthanillicitdrugs 23

Figure8: SignificantContainerExaminationFacilitydetectionsfromseacargo,2004–05 34

Figure9: CustomsperformanceattheContainerExaminationFacilities 34

Figure10: ProclaimedportsinAustralia 37

Figure11: Drugdetectionsbymodeofimportation 39

Figure12: Drugdetectionsandsignificanceofoffence 40

Figure13: NumberandweightofMDMA(ecstasy)detections 42

Figure14: Interceptionsofprecursortypedrugs 43

Figure15: Numberandweightofamphetamine-typestimulantsdetections 44

Figure16: Amphetamine-typestimulantsandcrystallinemethamphetamine(ice) detectionsbyweight 44

Figure17: Numberandweightofcrystallinemethamphetaminedetections 45

Figure18: Interceptionsofperformanceandimageenhancingdrugs 46

Figure19: Summaryofinvestigationsactivitiesconcerningtheillegalimportandexportofprohibitedandregulatedgoodssuchasweapons,performanceenhancingdrugs,precursorchemicals,childpornography,floraandfauna 49

Figure20: Performanceagainsttargetssetinthe2004–05PortfolioBudgetStatement –Output2 52

Figure21: Proportionofinternationalairpassengersprocessedwithin30minutesof arrival,byarrivalairport 53


Figure23: HighFrequencySurfaceWaveRadarproposedcoverage 62

Figure24: Summaryofsuspectillegalentryvesselsandsuspectunlawful non-citizens 65

Figure25: SelectedCoastwatchactivitiesonbehalfofotheragencies 65

Figure26: Foreignfishingvesselaction2000–01to2004–05 66

Figure27: LocationofOperationClearwater 66

Figure28: AustralianCustomsvesselresponseactivity 68


Figure30: Revenuecollectedonbehalfofotheragencies 75

Figure31: NumberofsuccessfulEDIandCustomsInteractiveexporttransactions processed(1October2004to30June2005) 77

Figure32: Exporttransactionssuccessfullyprocessedbytype(1October2004to 30June2005) 77

Figure33: 2004–05Benchmarkandfocusedauditprogram 82

Figure34: Percentageoftotalvalueofcustomsimportsandexportsin2004–05subject tocomplianceactivity 82

viii AustralianCustomsServiceAnnualReport2004–05

Figure35: Summaryofinvestigationactivity–fraudsontherevenue 84

Figure36: Dutyforgonethroughconcessionalarrangements 86

Figure37: Item50inSchedule4oftheTariff—TariffConcessionScheme 87

Figure38: Tariffadvicesandreviews 87

Figure39: Costsincurredin2004–05byagenciesprovidingpassengerprocessingservice 89

Figure40: SummaryofTouristRefundSchemeclaims 90


Figure42: Extensiontostatutorytimeframes 93

Figure43: LocationsofAustralianCustomsoffices 99

Figure44: Organisationalchart 99

Figure45: Staffemploymentcategorybylocationat30June2005 107

Figure46: Staffnumbersbyclassificationat30June2005 108

Figure47: Staffclassificationandlocationat30June2005 108

Figure48: Representationofequityanddiversitygroupsbystaffclassificationat 30June2005 110

Figure49: Staffclassification,AustralianPublicServiceequivalentlevelandsalaryrange at30June2005 112

Figure50: SeniorExecutiveServiceclassificationandgenderat30June2005 112

Figure51: 2004–05PerformanceAssessmentandFeedbackSchemeratings– performedaboveagreedrequirements 113

Figure52: 2004–05performancepayoutcomes(CertifiedAgreement) 113

Figure53: 2004–05performancepayoutcomes(CustomsDirectorAWAholders) 113

Figure54: BreachesoftheAustralianPublicServiceCodeofConductfoundin2004–05 114

Figure55: SanctionsimposedforbreachesoftheAPSCodeofConductin2004–05 114

Figure56: Trendsininternalinvestigations,securitychecksandlectures 115

Figure57: Actiontakenonsubstantiatedcomplaintsofseriousmisconductand/or criminality2004–05 115

Figure58: OccupationalHealthandSafetyPerformance 116

Figure59: RequestsmadeundertheFreedom of Information Act 1982 139

Figure60: Ministerialcorrespondenceandbriefings 140

Figure61: ComplaintsandissuesraisedwiththeCommonwealthOmbudsman 140

Figure62: AdministrativeAppealsTribunalapplicationsforreview(s37) 219

Figure63: AdministrativeAppealsTribunalrequestsforreasons(s28) 219

Figure64: AdministrativeAppealsTribunaldecisionshandeddown 219

Figure65: MattersresolvedbeforebeingheardbytheAdministrativeAppealsTribunal 220

Figure66: FederalCourtappealsfromdecisionsoftheAdministrativeAppealsTribunal 220

Figure67: Administrative Decisions (Judicial Review) ACT 1977applications/requests forreasons 220

Figure68: FederalCourtDecisionsinAdministrative Decisions (Judicial Review) ACT 1977 matters 220

Figure69: CommonwealthDisabilityStrategy–Regulatorrole 221

Figure70: CommonwealthDisabilityStrategy–Providerrole 222

Figure71: CommonwealthDisabilityStrategy–Employerrole 223

Section 1Overview

Photo:Customsofficerspreparingtoboardanoilrigtoundertakecomplianceandenforcementchecksoncrew.

� AustralianCustomsServiceAnnualReport2004–05

Review by the CEO

ThisyearhasagainbeenademandingoneforCustoms.

SomeofthedemandsresultedfromGovernmentdecisionsassociatedwiththeneedforenhancedcontrolsovertheborder.OthershaveemergedasaconsequenceofrapidlyincreasingcargoandpassengermovementsintoandoutofAustralia.Themoresignificantoftheremainingpressurepointswere:

• Theculminationofalmosteightyearsofefforttointroducewhatwebelievetobetheworld’sfirstfullyintegratedimportsandexportssystem.Thatsystemhassignificantdatawarehousingcapabilitiesand,associatedwiththis,considerableintelligenceassessmentcapabilities.Theoverallsystem,andassociatedlegislationandbusinesspracticechanges,hasgonebytheacronym‘CMR’(CargoManagementReengineering).

• TheadditionalbudgetfundingtocompletetheCMRprojectandtheassociatedexternalreviewoftheCustomsfinancialposition.

• ContinuingreassessmentofemergingthreatsintheaviationandmaritimesecurityenvironmentswhereCustomsnotonlyhasthegreatestGovernmentagencypresencebut,arguably,thebest‘working’knowledge.

Cargo Management Reengineering

TherehavebeencriticismsofCMR–somejustifiedandsomenot.Abalancedassessmentneedstotakethefollowingintoaccount:

• Australiawillhaveacargocontrolsystemwhichwillbesignificantlyaheadofanycomparablecargosystemelsewhereintheworld.

• Itsintelligencedataandmanipulationcapability,togetherwithoperationallinkstopassengerinformation,providesauniqueabilitytoenableCustomsandassociatedagenciestoprotectAustraliaagainstterroristacts.

• Customscargosystemshaveahistorygoingbacktothe1970sand1980s.Theywereclosetotheendoftheir‘expectedlives’.

CriticismwassomethingweanticipatedasnoprojectofthesizeofCMRhasgonewithoutahitch.Butwedidanticipategreaterrecognitionofthechallengesandtheeffortandinnovationneededinthedesignandimplementationoftheproject.

Asthe12October2005cutovertothenewsystemapproaches,IcanonlysignalmyprideattheteamofCustomsstaffandcontractorswhohaveworkedsohardandharmoniouslyinrecentyearstobringaboutitssuccessfulcompletion.Thisisallthemoresobecause:

• Theideawasbornwithintheorganisation.

• Itwaslargelyfundedbyinternalreallocationoffunding.

• Itwasorchestratedwiththesupportoftheinternationaltradingcommunity,externalsoftwaredevelopersandtwoparticularCommonwealthagencies–theAustralianQuarantineandInspectionServiceandtheAustralianBureauofStatistics.

Customs financial position

WewereactiveparticipantsinareviewbytheDepartmentofFinanceandAdministrationoftheCustomsfinancialposition.Thereviewresultedfromaforecastlossin2004–05dueinlargeparttothefinalstagesoftheCMRprojectandthefactthatwehadbeenrequiredtoundertakesomeGovernmentinitiativeswithoutadditionalfunding.

ThereviewconsultantsandtheseniorteamwithintheDepartmentofFinanceandAdministrationadoptedathorough,rigorousbutfairapproach.Thereviewresultedinthedevelopmentofasoundbasisforcontinuedfundingoftheorganisation,includingaformulatodealwiththeever-increasinginternationalpassengerflowsandrecognitionthatourcompliancecapabilitieshadbeencuttotheboneandneededtoberestored.TherewasrecognitionoftheneedforadequatefundstobeprovidedtomaintainsystemsaroundwhicharegulatoryagencysuchasCustomsneedstooperate.

ReviewbytheCEO �

Joint Offshore Protection Command

Elsewhereinthereport,weoutlinetheformationofaJointOffshoreProtectionCommandwhichintroducesaninnovativewaytolinktheCustomsCivilSurveillancerolewiththeAustralianDefenceForce’sresponsibilityforpatrollingandrespondingtothreatsemergingtoouroilandgasinstallationsandsimilarmaritimethreats.TheJointCommandworkswithindirectivesissuedjointlybytheChiefoftheDefenceForceandbytheCEOofCustoms.ItisheadedbyaRearAdmiralwho,withhisheadquartersstaff,worksfromCustomsCentralOffice.

International

AfocusoninternationalcooperationandengagementwithourneighbourshavebeenkeyingredientsintheCustomscontributiontoimprovedsecurityforinternationalcargomovement.AustralianCustomshasmadeasignificantcontributiontointernationalworkinrelationtosecuringofthesupplychain(i.e.thechainwhichbeginswhencargoconsignmentsarefirstpackedinanexportersorfreightforwarderspremises,throughtothepointofunpackingonimportationintoanothercountry).OurcontributionhasbeenthroughtheWorldCustomsOrganization(WCO),throughcooperativearrangementswithothercountriesandinregionalforums.TheWCOinitiative,knownastheFrameworkofStandardsforSecuringtheSupplyChainandFacilitatingTrade,providesthebasisandstandardisedapproachfortheworkofeachcountry.ButmuchmoreworkontheframeworkneedstobecarriedoutbytheWCOandAustralianCustomswillbeparticipatinginthis.

Law enforcement cooperation

Thisyeartherewerenumerousattempts,rangingfromsmalltolargescaleorganisedcrimeinvolvement,toimportnarcoticsandotherprohibitedimports.Manyofthedetectionsinvolvedacombinationofgoodintelligencework,includingsignificantcontributionsbyourpartnerlawenforcementagencies,theuseofsophisticatedtechnologyandthededicationofhighlyskilledCustomsstaff.DetailsaresetoutintheReport.

Staffing

RecruitmentandretentionofqualifiedstaffisaconcernnotonlyforCustomsbutforotherCommonwealthagencies.WehavebeenfortunatethatsomanypeoplehavebecomeawareofthediversityandchallengesofCustomsworkandhaveseentheorganisationasonewhichwouldprovideinterestingworkandaharmoniousworkingenvironment.

ImustsayalsothattherehasbeenapositivespinofffromparticipationofmanyofficersintheChannelSevenproductionofBorder Security.OurstaffhavefelttheprogramhasshownCustomsworkasbeingbothinterestingandnecessaryfortheproperprotectionoftheAustraliancommunity.ItisalsoclearthatpeopleoutsidetheorganisationhaveseenCustomsinanewlightandarenowshowingincreasedinterestinworkingfortheorganisation.

Review of Actions

CustomsstaffareemployedunderthePublicServiceActand,asaconsequence,havetherightsandobligationsofPublicServantsgenerally.Forthegreaterpart,thesystemworkswell.Buttherearesomestaffmemberswho,undoubtedlywithgenuinelyfeltgrievancesagainstmanagementorotheragencies,placeenormoustimeandotherpressuresonseniorstaffbyusingmostorallofthenumerousrevieworappealmechanismsopentothem.

LikethepressureswhichseniorstafffeelarisingfromFreedomofInformationrequirements,theresultingstrainonseniormanagementcanbesignificant.Asolutionneedstobefound.

Oneoptioniscompulsorymediationand,ifnecessary,finalsettlementbyathirdparty.Thiswouldapplyinthosefewcaseswhererelationshipsbetweenmanagementandanemployeehavecompletelybrokendownbutwhereredundancy,retirementordismissalcannotbepursued.

Ove

rvie

w R

evie

wb

yth

eCE

O


Sustainable development

Customshaschosentointroducevoluntaryreportingonhowitcontributestosustainabledevelopment.Thisisinresponsetoincreasedgovernmentandcommunityfocusontheimpactofenvironmental,socialandeconomicperformance,inadditiontomandatoryreportingonoutcomeperformanceandfinancialresults.ThefirstreportislistedinEnablingOutputsandwillbetheforerunnerformorerefinedreportinginfutureyears.

Next year

Overtheyears,Customshasprovenitselftobeanadaptable,flexibleorganisationabletorespondquicklytonewdevelopments.Customswillfacesomenewchallengesoverthenextyear.FinalisingtheimplementationofCargoManagementReengineeringandcapitalisingonthesystemcapabilitieswillbehighonthelist.TheCivilMaritimeSurveillanceProject2004tenderfinalisationandtransitiontonewcontractswillkeepCoastwatchbusy,aswillthebeddingdownoftheJointOffshoreProtectionCommandarrangements.

ThenextbigprojectwillinvolveinformationtechnologyservicemarkettestingandtheevaluationofaprogramtoreplacetheCustomsBayClassvessels.

Theopportunitiesprovidedbyseveralelectionbudgetfundingcommitmentswillreachthefinalstagesnextyear.Itwillbeachallengetobringtheseprojectsinontimeandonbudget,togetherwithmaintainingdaytodayoperationalcommitments.InternationalactivitieswillcontinuetogrowoverthenextfewyearsasaresultofFreeTradeAgreementnegotiations,hostingtheAsiaPacificEconomicCooperation(APEC)in2007,implementationandcapacitybuildingrelatedtotheFrameworkofStandardsonSecuringtheSupplyChainandFacilitatingTrade.

LionelWoodwardChiefExecutiveOfficer

Mr John Jeffery

Deputy Chief Executive Officer

Mr Lionel Woodward

Chief Executive Officer

Mr John Drury

Deputy Chief Executive Officer

ReviewbytheCEO �

Major achievements during �00�–0�

Figure 1: A summary of Customs in �00�–0�

Drug detection totals Cocaine 194kg

More information under Heroin 177kg

Output 1 on page 39 MDMA(ecstasy) 2375kg

Amphetamine-typestimulants 151kg

Cannabis 5kg

Major single drug detections Cocaine

Heroin

MDMA(ecstasy)

Amphetamine-typestimulants

100kg

115kg

1236kg

125kg

Import/Export statistics Numberofimportentrieslodged 3.5m

More information under Output 4 on page 74

Numberofexportdeclarations 1.3m

Maritime surveillance More information under Output 3 on page 59

NumberofCoastwatchcontractedaircraft 15fixed-wingaircraftand

2helicopters

Numberofsurveillanceflights 4425

NumberofCustomsBay Classvessels 8

NumberofNationalMarineUnitvesselseadays

2372

Numberofsuspectillegalentryvesselsintercepted

0

Numberofsuspectunlawfulnon-citizens(includingcrew)interceptedbysea

0

Detector dog programMore information under Output 1 on page 31

Numberofoperationaldetectordogteams 45operationalteamsand

4teamsintraining

Staffing seepage106

Organisational structure seepage99

Cargo management reengineering progress

CutoverfromexportsystemstotheICS October2004*

More information under CMR on page 75

CutoverfromimportsystemstotheICS 19July2005**

Container and pallet x-ray fundingMore information under CEF on page 33

FacilitiesinMelbourne,Sydney,BrisbaneandFremantle.Palletx-rayinstalledinAdelaide.

*Thego-livedatefortheexportscomponentofICSwas22September2004.Foraperiodoftwoweeks,theICSandtheexistingreportingsystemEXIToperatedinparallel.At2am(AEST)6October2004,EXITwasswitchedoffandallexportreportingwascompletedintheICS.

**Thefinaldatefortheimportscutoveris12October2005.

Ove

rvie

w R

evie

wb

yth

eCE

O


Overview of Customs CustomsassistsinmanagementofthesecurityandintegrityofAustralia’sborders.Itworkscloselywithothergovernmentandinternationalagencies,inparticulartheAustralianFederalPolice,theAustralianQuarantineandInspectionService,theDepartmentofImmigrationandMulticulturalandIndigenousAffairs,theDepartmentofTransportandRegionalServicesandtheAustralianDefenceForce,todetectanddeterunlawfulmovementofgoodsandpeopleacrosstheAustralianborder.

Theagencyisanationalorganisationemployingover5000peoplearoundAustraliaandoverseas.Ithasafleetofeightocean-goingpatrolvesselsandoperatesCoastwatchcivilmaritimesurveillanceandresponse.ProtectingtheAustraliancommunitythroughtheinterceptionofillegaldrugsandfirearmsisahighpriorityandsophisticatedtechniquesareusedtotargethigh-riskaircraft,vessels,cargo,postalitemsandtravellers.Theseincludeintelligenceanalysis,computer-basedanalysis,detectordogs,containerx-rayandvariousothertechnologies.

InformationonCustomsorganisationalstructureisonpage99.

Vision and roles

ThevisionofCustomsistobeaworldleaderincustomsadministrationbydeliveringhigh-qualityservicetothecommunity,industryandcommerce.

Customsthreeprincipalrolesareto:

• facilitatetradeandthemovementofpeopleacrosstheAustralianborderwhileprotectingthecommunityandmaintainingcompliancewithAustralianlaw

• collectcustomsrevenueefficiently

• administerspecificindustryschemesandtrademeasures.

Minister and portfolio

CustomshasbeenresponsibletotheMinisterforJusticeandCustomssince21October1998andisanagencywithintheAttorney-General’sportfolio.SenatortheHonChrisEllisonwasappointedMinisterforJusticeandCustomson30January2001.

Authority and power

CustomsderivesitsauthorityfromtheAustralianConstitution,whichprovidesforthelevyingofcustomsdutiesandforlawsconcerningtradeandcommerce.Customswasestablishedinitspresentformon10June1985bysub-section4(1)oftheCustoms Administration Act 1985.

TheconstitutionalauthorityofCustomsisgivenlegislativeexpressionthroughtheCustomsActandrelatedlegislation.Customsalsoadministerslegislationonbehalfofothergovernmentagencies,especiallyforthemovementofgoodsandpeopleacrosstheAustralianborder.

Statutory powers of the CEO of Customs

TheCustoms Administration Act 1985providesfortheestablishmentofCustomsandfortheappointmentofaCEOwho,undertheMinister,controlsCustoms.TheCEOisappointedbytheGovernorGeneralforaspecifiedperiodofnotmorethanfiveyearsbutiseligibleforreappointment.

CertainstatutoryfunctionsandpowersarevestedintheMinisterbutmostdecisionsmadeunderCustomslegislationaretheresponsibilityoftheCEOofCustoms.TheCEOmay,bysignedinstrument,delegatetoanofficerofCustomsalloranyofthefunctionsandpowersoftheCEO.Whereafunctionorpowerisdelegatedandexercised,theCEOistakentohavepersonallyperformedorexercisedthefunctionorpower.

OverviewofCustoms �

Commonwealth legislation under which Customs has powers

PrimarylegislationunderwhichCustomshaspowersincludes:

• Customs Act 1901

• Commerce (Trade Descriptions) Act 1905

• Copyright Act 1968

• Passenger Movement Charge Act 1978

• Trademarks Act 1995.

OtherlegislationunderwhichCustomsexercisespowersincludes:

• Australian Postal Corporation Act 1989

• Crimes Act 1914

• Environment Protection and Biodiversity Conservation Act 1999

• Financial Transactions Reports Act 1988

• Fisheries Management Act 1991

• Migration Act 1958

• Narcotic Drugs Act 1967

• National Health Act 1953

• Olympic Insignia Protection Act 1987

• Psychotropic Substances Act 1976

• Quarantine Act 1908.

OtherlegislationunderwhichCustomscollectschargesandrevenueincludes:

• A New Tax System (Goods and Services Tax) Act 1999

• A New Tax System (Wine Equalisation Tax) Act 1999

• A New Tax System (Luxury Car Tax) Act 1999

• Customs Depot Licensing Charges Act 1997

• Customs Securities (Penalties) Act 1981

• Customs Tariff Act 1995

• Customs Tariff (Anti-Dumping) Act 1975

• Customs Undertakings (Penalties) Act 1981

• Import Processing Charges Act 2001

• Passenger Movement Charge Collection Act 1978.

AdministrativeActsthatCustomscomplies

withinclude:

• Customs Administration Act 1985

• Administrative Decisions (Judicial Review) Act 1977

• Disability Discrimination Act 1992

• Financial Management and Accountability Act 1997

• Freedom of Information Act 1982

• Occupational Health and Safety (Commonwealth Employment) Act 1991

• Privacy Act 1988

• Public Service Act 1999.

Theselistsarenotexhaustiveanddonotincludealldelegatedlegislation,suchasregulations.

Significant changes in the functions or services of Customs

TheJointOffshoreProtectionCommandbringstogethertheresourcesandexpertiseofbothCustomsandtheAustralianDefenceForcetocreateasinglemaritimesurveillanceandresponsesystem.ThecommandreportstotheCEOofCustomsandtheChiefoftheDefenceForce.Itsheadquarters,inCanberra,openedinMarch.

Ove

rvie

w O

verv

iew

ofCu

stom

s


Outcome and Output structure

TheOutcomeisthesocialandeconomicresultofCustomsOutputs.OutputsaretheservicesCustomsdeliverstogovernmentandthecommunity.

Output 1

Facilitationofthelegitimate

movementofgoodsacrosstheborder,whileintercepting

prohibitedandrestrictedimports

andexports

Output �

Facilitationofthelegitimate

movementofpeopleacrosstheborder,whileidentifying

illegalmovements

Output �

Civilmaritimesurveillance

andresponse

Output �

AdministrationofCustomsduty

andindirecttaxes,otherborder

relatedrevenuecollectionsandimport/export

statistics

Output �

Anti-dumpingand

countervailingadministration

▲ ▲ ▲ ▲ ▲

OutcomeEffectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementsacrosstheborder,raisesrevenueandprovidestradestatistics

Figure �. �00�–0� Outcome and Output framework

Corporate priorities �00�–0�

TohelpmeetitsOutcome,Customsdevelopedandactedonanumberofcorporatepriorities.TherelationshipbetweentheseCorporatePriorities,organisationalinitiativesin2004–05andCustomsOutputsissetoutbelow.

Corporate Priorities Initiative detailed in performance reporting

Output

Counter terrorism/ Improved Quarantine Intervention– maintainstrongfocusonphysicaland

electronicscreeningofcargo,vesselsandpassengersforcriminalandotherthreats

– enhanceorganisationalsecuritymeasures– implementsystemsandproceduresthat

improvenationalsecuritybutminimisedisruptiontolegitimateactivity,wherepossible.

FirstportboardingAmmoniumnitrateregulationsRelevanttechnologyinitiatives

(includingcontainerexaminationfacilities,detectordogs,radiationandchemicaldetectors,NeutronScanner)

Pre-arrivalscreeningofpassengersAdvancepassengerprocessingJointOffshoreProtectionCommand

Output1Output1Output1


Border Protection– detectprohibitedandrestrictedgoods– regulatepeoplemovementsacross

theborder– maximisethedetectionofillicitdrugs

andprecursorchemicals– contributetotheimprovedprotection

ofAustralia’snaturalmarineresourcesandprimaryindustry.

Drugresearch,NationaldrugstrategyCooperationwithotheragenciesPre-arrivalscreeningofpassengersAdvancepassengerprocessingAerialsurveillancecoverageNationalMarineUnitAustralianMaritimeIdentification

SystemMaritimesurveillancecontractsOperationClearwaterSouthernoceanmaritimepatrol

andresponseRelevanttechnologyinitiatives

Output1Output1Output2Output2Output3Output3Output3


Outputsand3

International Cooperation– participateinnegotiationand

implementationoftradeagreements– promoteAustralianinterestsandsecurity

throughcooperativerelationshipswithrelevantoverseasCustomsadministrationsandotherbodies.

ProliferationsecurityinitiativeFreeTradeAgreementsSupplychainsecurityAntidumpingWCO,WTO,APEC,OCOand

capacitybuilding

Output1Output4Output4Output5EnablingOutputs

Innovation and Technology– deliver,implementandmanagethe

transitiontothesystemsthatsupporttheCMRProject

– continuouslyimproverevenuecollectionandborderprotection,includingmethodstodetectnuclear,chemical,radiologicalandbiologicalweapons,throughbettertechnology.

CargoManagementReengineeringContainerExaminationFacilitiesDetectordogprogramRadiationdetectorsChemicaldetectorsClosedcircuittelevisionComputerforensicsNeutronscannerSmartGateSatellitesurveillanceHighfrequencysurfacewaveradar/

unmannedaerialvehicleSecurecommunication

Outputs1and4Output1Output1Output1Output1Output1Output1Output1Output2Output3Output3

Output3

OverviewofCustoms �

Ove

rvie

w O

verv

iew

ofCu

stom

s

10 AustralianCustomsServiceAnnualReport2004–05

Anticipated results

ResultsCustomsaimedtoachievein2004–05:

• certaintyandsecurityforAustralianindustryandtrade

• protectionofAustraliansocietyfromthepotentiallyharmfuleffectsofprohibitedandrestrictedgoodsthroughbothairandseamovements

• facilitationoflegitimatetravellermovements

• protectionofthecommunityfromtheentryofunauthorisedpeople

• protectionofAustralia'snaturalmarineresources

• implementationandenforcementofinternationalprotocolsincludingtheprotectionofwildlife

• collectionofrevenuetoGovernmentthatisaccurateandtimely

• reportingofaccurateandtimelystatistics

• applicationofWorldTradeOrganization(WTO)-consistentremediesforindustryforinjurycausedorthreatenedbydumpedorsubsidisedimportedgoods.

Workforce characteristics

Customsstrivestohaveemployeeswhoexhibitvaluesandcharacteristicsthatinclude:

• integrity

• honesty

• accountability

• professionalism

• fairness

• innovation

• flexibility

• responsiveness

• continuousimprovement

• teamorientation.

Corporate Priorities Initiative detailed in performance reporting

Output

Revenue Collection– Efficientandeffectiveadministration

ofCustomsduty,indirecttaxesandindustryschemes.

CargoreportingstrategyPassengerMovementChargePassengerandcrewduty

freeconcessionsTariff,rulesoforiginandvaluationAntidumping


Output4Output5

Enhance Organisational Performance and Capability– Enhanceorganisationalperformance

andcapabilitythroughpeople,finance,informationandcommunicationtechnologyandinformationmanagement.

ImprovedlicensingprocessesImprovingairportflowCorporategovernance(Including,

riskmanagement,businesscontinuity,performanceanalysisandtheAnnualReport)

Informationandinformationtechnologymanagement

Traininganddevelopment

Output1Output2EnablingOutputs

EnablingOutputs

EnablingOutputs

Ove

rvie

w O

verv

iew

ofCu

stom

s

Customs teams – leading Customs

Within Customs, it is the Senior Executive Service and Regional Directors who lead the organisation.

AtameetingofthisgroupinMay,theChiefExecutiveOfficer,LionelWoodward,reflectedontheroleoftheSeniorExecutiveServicesincehehadjoinedCustomsin1994.

“Theseniorexecutivemanagementteamisagroupofskilled,experiencedanddedicatedpeoplewithaflairforinnovationandadrivetoimplementchangequicklyandwell.

Theteamisnowabalanceofmenandwomen.Some40percentoftheSeniorExecutiveServiceteamarewomen.

WehaveconsciouslysoughttobringindemonstratedexperiencefromoutsideandwehaveateamwherelessthanhalfhavespentmorethanfiveyearsinCustoms.

Thequalityofthepeopleiswhatweaimforandateamthatisresponsivetochangebuthassufficientcorporateknowledgetoensuremistakesarenotrepeated”.

The Senior Executive Service and Regional Director team at the conference in May 2005, left to right, front to back:

Tim Chapman, John Eldridge, Peter Naylor, Graeme Charlwood, Phil Burns, Geoff Johannes, Jaci Fisher, Jamie Macgregor,

Sue Pitman, Jane Bailey, Christine Marsden-Smedley, Jenny Peachey, Andrew Rice, Lionel Woodward, Murray Harrison,

John Marks, Virginia Lynch, Brian Hurrell, Tom Marshall, Kirsten Whitehouse, Russ Crane, Peter Thomson, Marion Grant,

Jeff Buckpitt, Richard Janeczko, Jo Hein, John Valastro, Roxanne Kelley, Michelle Kinnane, Paul O’Connor, John Jeffery,

Gayle Brown, Matthew Corkhill, David Collins, Jenny Eutick, Annwyn Godwin, Jon Brocklehurst, Gail Batman, Geoff Lanham

and Philomena Carnell.

OverviewofCustoms 11

Section �Performancereporting

Photo:CustomsofficerGeoffQuinnatSydneyairport.

1� AustralianCustomsServiceAnnualReport2004–05

The Customs 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

ThegoalofCustomsistoprovidethenationwitheffectivebordermanagementinlinewiththeGovernment’scommitmentstoincreaseborderprotection.

In2004–05,CustomsprotectedAustralia’sinterestsbydetecting,controllingand,whereappropriate,preventingtheentryandexitofindividualsandgoodsthathadthepotentialtoadverselyaffectthesafetyorqualityoflifeinAustralia.

Inaddition,CustomsprotectsAustralia’srevenuebasethrougheffectivecollectionofrevenueandtheadministrationofcertaingovernmentindustryschemesandtrademeasures.

Customsstrengthenedmaritimesecuritycapabilityby:

• contributingtotheJointOffshoreProtectionCommand

• increasingfirstportboarding

• increasingtheoperatinghoursandthroughputoftheContainerExaminationFacilities

• commencingtheextensionoftheclosedcircuittelevisionnetworktoadditionalports

• examiningthedevelopmentandimplementationofastandardiseddatasetforwholeofgovernmentreporting.

FollowingthesuccessfulSouthernOceansurveillanceandenforcementprogramundertakenin2003–04,theGovernmentextendedtheinterimprogram.IncooperationwiththeAustralianFisheriesManagementAuthorityandsupportedbyDefenceandtheAustralianAntarcticDivision,Customsconductedsurveillanceandarmedpatrolsforvesselsengagedinillegalfishing.ThisalsoprotectsAustralia’ssovereigninterests

in,andtheenvironmentalvaluesof,theSouthernOcean.

BetweenNovember2002andNovember2003,CustomsestablishedContainerExaminationFacilitiesattheportsofSydney,Melbourne,BrisbaneandFremantle,withasmallerfacilityinAdelaidecommencingoperationsinMarch2005.TheincreasedexaminationcapacityisacoreelementofAustralia’sborderprotectionstrategyundertheGovernment’sTough on DrugsandProtecting our Borderspolicies.

Customs,withtheDepartmentofForeignAffairsandTradeandtheDepartmentofImmigrationandMulticulturalandIndigenousAffairs,expandedthetrialofanautomatedbiometricborder-processingsystem.Customsreceivedfundingtoupgradeandinstallanadditionalautomatedbiometricborder-processingtransactionpointwithpassportbiometricchip-readingcapacity.

Customscontinuedwiththereengineeringandintegrationofbusinessprocessesforcargomanagementtoimproveservicedeliverytoindustryandtomakegreateruseoftechnology.Aconsultativeapproachwithindustryisprovidingasmoothtransitionfromtheoldtothenewsystems.

In2004–05Customs:

• cleared5.5maircargoconsignmentsand1.8mseacargoconsignments(5maircargoand1.7mseacargoin2003–04)

• processedover20.9mpeoplethroughinternationalairportsandseaports(18.8min2003–04)

• achieveda99.4percentproportionofelectronicallylodgedentrieswhereanauthoritytodealistransmittedwithin15minutesofreceiptofentrypaymentandfinalisationofentrydetails(99percentin2003–04)

• achieveda95.1percentproportionofarrivinginternationalpassengersprocessedthroughtheentrycontrolpointwithin30minutesofarrival(target95percent)

TheCustomsOutcome 1�

• conductedover4400surveillanceflightsovercoastalandoffshoreareas,equatingtoatotalareaofabout140msquarenauticalmiles(4500surveillanceflightsoveranareaof138msquarenauticalmilesin2003–04)

• seized194kgofcocaine(131kgofcocainein2003–04),2375kgofMDMA(ecstasy)(873ofMDMAin2003–04),151kgofamphetamine-typestimulants(6kgofamphetaminetypestimulantsin2003–04),177kgofheroin(62kgofheroinin2003–04)and5kgofcannabis(709kgofcannabisin2003–04).

Customsdutiescollectedamountedtoover$5bin2004–05(over$5bin2003–04).Inaddition,Customsadministered$1366mof

Governmentconcessionsincluding$548mundertheTariffConcessionScheme($479min2003–04)and$121mindutydrawbackstoindustry($106min2003–04).

CustomsmeasuresperformanceagainsttheOutcomeandfiveOutputtargetssetin2004–05PortfolioBudgetStatementsandAdditionalEstimatesStatements.Targetsincludequantityandqualityperformancemeasures(fortheOutputs)andeffectivenessmeasures(fortheOutcome).

Customsperformanceagainstthetargetssetatthebeginningoftheyeararebelow.

Figure �: Outcome performance against targets set in �00�–0� Portfolio Budget Statement

Effectiveness indicators Measures Target* Actual

Minimum disruption to legitimate trade and travel

Cargofacilitation Proportionofelectronicallylodgedentrieswhereanauthoritytodealistransmittedwithin15minutesofreceiptofentrypaymentandfinalisationofentrydetails

97% 99.4%

Passengerfacilitation Nationalproportionofarrivinginternationalpassengersprocessedthroughtheentrycontrolpointwithin30minutesofarrival

95% 95.1%

Prevent illegal movement across the border

Illicitdrugs Trendsinthenumberandweightofdrugdetections

** SeeFigure11andFigure12

Otherprohibitedgoods Trendsinthenumberofdetectionsand/orseizuresofotherprohibitedimportsandexports


Civilmaritimesurveillance Undetectedsuspectillegalentryvessels(SIEVs)subsequentlyfoundtohavebreachedtheAustralianborder

** SeeFigure24

Raise revenue

Revenuecollection Significantrevenuescollected(includingCustomsduty,GSTcollectedandPassengerMovementCharge)

$7878m(netofGST

deferred)

$7892m#

* Targetsmaybeperformancetargets,serviceleveltargetsorestimates.

** Performancetargetscannotbeestimatedthroughanyreliablestatisticalorothermethod.

# RevenueexcludesthedollarvalueofAutomotiveCompetitivenessandInvestmentScheme(ACIS)creditsacquitted(moneysforgonebyCustoms).ACISCreditisadutyliabilitynotpaidbutacquittedagainstacreditgrantedundertheACISsetoutintheACIS Administration Act 1999.

Perfor

man

ce rep

ortin

g O

utco

me


Funding for Outcome and Outputs

ThepricesfortheOutcomeandOutputsarecalculatedusingactivity-basedcostinginformationandattributedacrosstheoutputstoprovideacompletepicture,includingforEnablingOutputs(seeFigure4).

Approximately73percentofCustomscostscanbedirectlyattributedtoanOutput.Fortheremaining27percent,thecostingmodelallocatesoverheadexpensestoOutputsonastafffulltimeequivalence(FTE)perOutputbasis.

Resources allocated for the Outcome

Figure �: Resources allocated for the Customs Outcome �00�–0�

(1) (�) Variation

Budget* Actual results

(column � minus column 1)

�00�–0� �00�–0�

$’000 $’000 $’000

Administered Expenses 255 4612 4357(includingthirdpartyoutputs)

Total Administered Expenses 255 4612 4357

Price of Agency Outputs

Output 1 –Facilitationofthelegitimatemovementofgoodsacrosstheborder,whileinterceptingprohibitedandrestrictedimportsandexports

329235 329675 440

Output � –Facilitationofthelegitimatemovementofpeopleacrosstheborder,whileidentifyingillegalmovements

107926 117899 9973

Output � –Civilmaritimesurveillanceandresponse#

317531 306953 -10578

Output � –AdministrationofCustomsdutyandindirecttaxes,otherborder-relatedrevenuecollections,andimport/exportstatistics

190964 162790 -28174

Output � –Anti-dumpingandcountervailingadministration

5283 7816 2533

Total Price of Outputs** 950939 925133 -25806

Revenue from Government (Appropriation) for Agency Outputs

758296 758296 0

Revenue from other sources 192643 203918 11275

Total Revenue for Outputs 950939 962214 11275

TOTAL PRICE FOR OUTCOME 1 ��1 1�� -�1 ��

(TotalPriceofOutputsandAdministeredExpenses)

TOTAL REVENUE FOR OUTCOME 1 ��1 1�� 1� ��

(TotalRevenueforOutputsandAministeredexpenses)

Average Staffing Level (Number) �00�–0�(full-timeequivalents,includinginoperatives) 4686

*Full-yearbudget,includingadditionalestimates.

**TotalPriceofOutputsandTotalRevenueforOutputscomparesthetotalofthepricesderivedfromestimatedrevenuetothetotalofthepricesderivedfromactualexpenses.Thedifferencebetweenthe‘actualtotalpriceofOutputs’andthe‘actualtotalrevenueforOutputs’reflectsCustomsoperatingsurplusfortheyear.

#PriceincludestheresourcesreceivedfreeofchargefromtheAustralianDefenceForce.


Portfolio Budget Statements

ThetotalpriceofOutputsintheinitial2004–05PortfolioBudgetStatementwas$879.900m,includinganappropriationof$702.619mandrevenuefromothersourcesof$177.281m.

Customswasalsoappropriatedanequityinjectionof$19.471min2004–05.Thisincludedtheprovisionofcapitalfundsassociatedwithinitiativessuchasbiometrics,ContainerExaminationFacilities,enhancedsecurityarrangements,theNeutronScannerprogramandpreparationfortheMelbourneCommonwealthGames2006.

Portfolio Additional Estimates Statements

AfterPortfolioAdditionalEstimateshearings,thetotalpriceofOutputswasrevisedto$950.939m(up$71.039m).ThisreflectedanincreaseinfundingfornewGovernmentinitiativesandadditionalfundingfromthereviewofCustomsfinancialposition.

Actual expenditure

DetailsontheactualexpenditureofCustomsin2004–05areshowninFigure4.Furtherinformationonthisexpenditureisavailableinthefinancialstatementsandaccompanyingnotesonpages148–211.

Review of Customs financial health

AnindependentreviewofCustomsfinancialpositionwasconductedin2004–05toassessthefuturefundingrequirementsofCustoms.ThereviewwascontractedtoErnstandYoungonbehalfofDepartmentofFinanceandAdministrationandCustoms.ItwascompletedinOctober2004andincludedacomprehensiveassessmentofactivities,costsandwaystoimproveCustomsfinancialposition.Thegovernmentadoptedthereportwhichnowalsoprovidesaworkloadmeasurementdeviceforpassengerprocessing.

Figure �: Resources allocated for the Customs Outcome �00�-0�

Budget*

�00�–0�$’000

Administered Expenses 280(includingthirdpartyoutputs)

Total Administered Expenses 280

Price of Agency Outputs

Output 1 – Passengermovementandintelligence 261600

Output � –Bordercomplianceandenforcement 375800

Output � – Cargoregulation,tradefacilitationandrevenuecollection 104400

Output � –Civilmaritimesurveillanceandresponse# 236600

Total Price of Outputs** 978400

Revenue from Government (Appropriation) for Agency Outputs 783265

Revenue from other sources 195135

Total Price of Outputs 978400

TOTAL FOR OUTCOME 1 978680

(TotalPriceofOutputsandAdministeredExpenses)

Average Staffing Level (Number)

(full-timeequivalents,includinginoperatives)

�00�–0�

4902

*BudgetasannouncedinthePortfolioBudgetStatements.Revisedstructure.

**TotalPriceofOutputscomparesthetotalofthepricesderivedfromestimatedrevenuetothetotalofthepricesderivedfromactualexpenses.ThedifferencebetweentheactualtotalpriceofoutputsandtheactualtotalrevenueforoutputsreflectsCustomsoperatingsurplusfortheyear.

#PriceincludestheresourcesreceivedfreeofchargefromtheAustralianDefenceForce.

Perfor

man

ce rep

ortin

g O

utco

me


Customs contribution to other agencies

Customsprovidesarangeofservicestoassistalmost100FederalandStateagenciestoachievetheiroutcomes.Customsservicesprovidedtokeyagenciesaredetailedbelow.Theseservicesarenormallygovernedbyagency-to-agencyMemorandumsof

UnderstandingandServiceLevelAgreementswhichareperiodicallyreviewed.

Customsalsoadministerslegislationonbehalfoftheseandothergovernmentagencies,especiallyinrelationtothemovementofgoodsandpeopleacrosstheAustralianborder.

Australian Federal Police

– referralsattheborderundercriminallegislation,includingdrugdetections,personsofinterest,(forexamplecriminalactivityorpotentialterrorists)andundeclaredexcesscurrency

– civilmaritimesurveillanceandresponseactivitiesforpeoplesmugglingandremotearealogisticsupport

Australian Fisheries Management Authority

– regulationoftheimport/exportofcertainfishproducts– civilmaritimesurveillanceandresponse

Australian Quarantine and Inspection Service

– assistinthedeliveryofquarantineinspectionservicesforgoods,people,shipsandaircraftattheborderandremoteports

– logisticsupportwithintheTorresStrait– civilmaritimesurveillanceandresponse

Australian Taxation Office

– administrationofrevenuecollectionactivityincludingTouristRefundScheme,thePassengerMovementCharge,Customsdutyandindirecttaxes,thegoodsandservicestax,theluxurycartaxandthewineequalisationtax

Department of Defence

– resources,includingsurveillanceandresponseassets,insupportofOperationRelexII(peoplesmugglingfocus)

– assessmentandclearancefunctionsandreferralsforrestrictedexportsontheDefenceandStrategicGoodsList

Department of Health and Ageing

– providingexpertiseandadviceontheNationalDrugStrategypolicyonimportandexportofsubstances

– identifyingnewsubstanceswhichmayrequireregulationattheborder– contributingtothewhole-of-governmentpositiononlicitandillicitdrugs– prohibitingtheimportofviablematerialsderivedfromhumanembryoclones– prohibitingtheimportandexportofhumanembryoclones– regulatingthemovementofdrugsandothersubstances

Department of Immigration and Multicultural and Indigenous Affairs

– clearancefunctionsforpassengersandcrewatinternationalairportsandseaports– civilmaritimesurveillanceandresponse

Department of the Environment and Heritage

– assessmentandclearancefunctionsandreferralsforrestrictedimportsandexports,includingendangeredspecies(floraandfauna),ozonehazardouswasteandculturalheritage

– provisionofintelligence– investigationsintoactualorsuspectedbreachesofrelevantActsand/orRegulations– examinationsofcargowherethereisasuspectedoractualbreachofarelevantActor

Regulation– assistanceintransportation,storageanddisposalofhazardouswasteandozonedepleting

substances– collectionandprovisionofdatainrelationtoillegalfishingandenvironmentalinformationin

theSouthernOcean– assistanceinenvironmentalprotectionintheAshmoreIslandsNatureReserve– civilmaritimesurveillanceandresponse.


Other agencies contribution to Customs Outcome

Australian Federal Police

– investigationofCommonwealthoffences– provisionofintelligenceinformation– trainingsupportforinvestigationsofficersandtraininginuseofforceforNationalMarineUnit/

SouthernOceansMaritimePatrolResponse(SOMPR)officers

Australian Fisheries Management Authority

– targetinginformationonthreatsinAustralianFishingZone– trainingofCustomsofficersonfisherieslegislationandenforcementprocedures– supportSOMPRwithembarkedfisheriesofficers

Australian Quarantine and Inspection Service

– providingassistancetoCustomsduringvesselinspections,clearanceofpassengersandcrewandsurveillancefunctions.Thisincludesshareduseofx-rays,CCTVandjointvesselpatrolswithinAustralianwaters

– referralofanimalorplantproducts(prohibitedundertheEnvironmentProtectionandBiodiversityConservationAct1999),narcotics,dutiableitems,undeclaredcurrencyandcommunityprotectionitems(includingweapons)thataredetectedduringquarantineinspectionofships,aircraft,passengersandincominginternationalmail

– providingsupporttoCustomsinacheiving100percentinspectionofHVLVconsignments

Australian Taxation Office

– informationasnecessaryandauthorisedbylawandreleasedundertheMemorandumofUnderstandingbetweenCustomsandtheAustralianTaxationOfficewithparticularreferencetoSchedule2,Excisematters.Thesemattersgenerallyrelatetoindustryinformation,andtheexportationandimportationofalcohol,tobaccoandpetroleumwhichmayhaverevenueconsequencesforthepaymentofExciseduty

Department of Defence

– resourcesinsupportofcivilmaritimesurveillanceandresponse– secondmentofstafftoCoastwatchandtheJointOffshoreProtectionCommand– provisionofintelligence– scientificadviceinrelationtoemergingtechnologies– trainingandtechnicaladvicetoassistintheidentificationofgoodson

theDefenceandstrategicgoodslist– logisticandtrainingsupportforarmingAustralianCustomsVesselswithdeck-mounted

weaponssystems

Department of Health and Ageing

– providingexpertiseandadviceonhealthrelatedlicitandillicitdrugissues– ensuringoperationalandpolicyresponsesreflectwhole-of-governmentpositiononlicitand

illicitdrugs– regulatingthemovementofdrugsandothersubstances

Department of Immigration and Multicultural and Indigenous Affairs

– immigrationclearancetraining– decisionsonentryclearance– expertdocumentexamination

Department of the Environment and Heritage

– assistanceinassessmentandclearancefunctionsandreferralsforrestrictedimportsandexports,includingendangeredspecies(floraandfauna),ozonedepletingsubstances,hazardouswasteandculturalheritage

– provisionofintelligenceandexperttechnicaladvice– providingappropriatetrainingforCustomsofficers– storageandsecurityofozonedepletingsubstances– assistanceinrespectofthetransportation,storageanddisposalofhazardouswaste– provisionofcomprehensivemedicalsupportandinfrastructureforSOMPR– medicalanddentalsupportforSOMPR– policyadviceonmattersrelatingtotheCommissionfortheConservationofAntarcticMarine

LivingResourcesforfisheriespatrols.

Perfor

man

ce rep

ortin

g O

utco

me

�0 AustralianCustomsServiceAnnualReport2004–05

Increased Quarantine Intervention

In2001–02theGovernmentapprovedadditionalfundingtostrengthenAustralia’squarantineprogramsthroughtheIncreasedQuarantineIntervention(IQI)initiative.ThiswasinresponsetotheoutbreakoffootandmouthdiseaseintheUnitedKingdomandEurope.AspartoftheinitiativeCustomscommittedtoinspectingallHighVolume/LowValue(HVLV)consignmentsimportedthroughairexpresscouriersandscreeningallinternationalmail.TheGovernmenthasextendedquarantinebordersecurityfundinguntilatleast2008–09.

Customsachieved100percentinspectionofHVLVconsignmentsandpostalitemsinconjunctionwiththeAustralianQuarantineandInspectionService.Inadditiontotheinterceptionofitemspresentingaquarantinerisk,inspectionsalsoresultedinthedetectionofnarcotics,weaponsandotherprohibitedimports.

Proceeds of crime

AspartoftheGovernment’sproceedsofcrimelegislation,$885314wasprovidedforenhancedclosedcircuittelevisionmonitoringatairports.

Customsinitiatedfivenewproceedsofcrimeinvestigations.Asat30June2005,sixinvestigationshadbeenconcludedand16areunderactiveinvestigation.

Output1 �1

Output 1

Facilitation of the legitimate movement of goods across the border, while intercepting prohibited and restricted imports and exports

Output1pricingisshowninthefinancialstatementsonpage210.

Topreventtheimportorexportofprohibiteditems,andtocontrolthemovementofrestricteditems,thisOutputcoverstheprocessingofgoodsacrosstheborder,including:

• riskassessmentofvessels,aircraft,cargo,mail,airandseapassengersandbaggage

• intelligence,targetingandsearchactivities

• surveillanceofinternationalairports,waterfrontsandinternationalmailcentres

• land-basedsurveillanceofthecoastline,andaerial/marinesurveillanceandresponseforspecificoperations.

TheOutputcoverstheinvestigationandprosecutionofnon-narcoticprohibitedimportandexportoffences,includingmeasuresbyCustomstocontrolorrestrictthemovementofgoodsonbehalfofotheragencies.Prohibitedandrestricteditemsincludeillicitdrugs,weapons,pornography,unsafeandunlabelledproducts,therapeuticgoods,wildlife,quarantineitemsandcounterfeitandpiratedgoods.Broadly,thisOutputcoversCustomscommunityprotectionrolebycarryingoutalltheabovementionedactivities.

Thispartofthereportincludesmeasurestakentostreamlinetheflowoflegitimatetrade,aswellasinitiativesintroducedin2004–05designedtoenhancecommunityprotection.

Keyoperationalobjectivesin2004–05included:

• improving(orsustaining)industrycompliancewithcargoandtrade-relatedCustomslawswhileminimisinganyadverseimpactonindustry/business

• increasingfirstportboardingto75–80percentbytheendofthe2004–05financialyear

• expandingthenumberofdetectordog

teamstoenhancetheDetectorDogProgramandstrengthenborderprotection

• increasingoperatinghoursandthroughputatContainerExaminationFacilities(CEFs)

• ensuringexistingandnewtechnologyeffectivelysupportedCustomsbusinessprocesses.

Keyachievementsincluded:

• leadingaprojecttostandardisedataforimport,exportandtransitionsofcargoandcrew,andexploringcreationofasinglewindowfordatarequiredbyGovernment

• improvingseacargoreporting

• upgradingINTERCEPTwhichrecordsvesselandcrewmovements

• increasingfirstportboardingto76percentcomparedwith70percentinthepreviousyear

• inspecting128411TEU(twenty-footequivalent)containersattheCEFs

• expandingtheDetectorDogProgramtoenablethegraduationoffivenewteamsinMay2005andthecommencementoffourteamsintothetrainingprogram

• expandingthefleetofradiationdetectors

• deployingnewtracedetectionequipmentinkeyoperationalareasforchemicaldetection

• installingCCTVsurveillancesystemsatairportsandseaports

• progressingtheneutronscannertrial,toefficientlyscreenaircargo,byestablishingafacilityatBrisbaneairporttohousethescanner

• detecting/seizing194kgofcocaine,2375kgofMDMA(ecstasy),151kgofamphetamine-typestimulants,177kgofheroinand5kgofcannabis

• interceptingprohibitedimportsincluding403wildlifedetectionsand1010firearmandfirearmpartsdetectionsfrominternationalpassengers

• participatinginforumsaimedatcombatingidentityfraud,moneylaunderingandcorruption.

Performancefiguresagainsttargetssetinthe2004–05PortfolioBudgetStatementaredetailedonpage22.

Perfor

man

ce rep

ortin

g

Out

put

1

�� AustralianCustomsServiceAnnualReport2004–05

Figure �: Performance against targets set in the �00�–0� Portfolio Budget Statement – Output 1

Quality/quantity performance measures Target* Actual

Facilitate movement of goods

Quality

Proportionofelectronicallylodgedentrieswhereanauthoritytodealistransmittedwithin15minutesofreceiptofentrypaymentandfinalisationofentrydetails

97% 99.4%

Electroniccargosystems–availabilitytoCustomsclients(availabilityagainsttypicalworkday)

Aircargoautomation99.7%Seacargoautomation99.7%

99.9%100.0%

RatesofappealagainstdecisionswheretheoriginaldecisionbyCustomsisoverturned

** SeeAppendixDonpage219

Quantity

Numberofimportedairwaybillsreported 5410000 5484627

Numberofimportedseacargomanifestlinesreported 1890000 1848511

Numberofexportdeclarationslodged^ 1200000 1252972

Interception of prohibited/restricted goods

Quantity

Weightandnumberofdrugdetectionsbysignificanceofoffence

** SeeFigure12

Weightofdrugdetectionsbymodeofimportation ** SeeFigure11

Numberofdetectionsand/orseizuresofotherprohibitedimportsandexports


Price $��.��m $��.��m

*Targetsmaybeperformancetargets,serviceleveltargetsorestimates.

**Performancetargetscannotbeestimatedthroughanyreliablestatisticalorothermethod.

ÎncludesbothECNs(orexportclearance)issuedundertheoldEXITscheme,andEDNs(orexportdeclarations)issuedwhentheIntegratedCargoSystem(ICS)Exportsmodulewentliveon22September2004.

Output1 ��

Figure �: Number of detections/seizures of prohibited imports* for international air passengers other than illicit drugs

�00�–0� �00�–0� �00�–0�

Quarantine^ 10� �1 ��

Revenue � 1�� 0� � �11

Major 45 75 123

Minor 3081 2630 3088

Undeclared excess currency (referred to AFP) 1�0 1�� 1��

Wildlife 1 �� 0�

Major 24 2 7

Minor 1201 635 396

Prohibited imports � �� ..

Major 213 179 ..

Minor 5231 4680 ..

Firearms (including firearm parts) .. .. 1 010

Major .. .. 34

Minor .. .. 976

Other weapons .. .. 1 0��

Major .. .. 51

Minor .. .. 987

Other prohibited goods .. .. � ��

Major .. .. 61

Minor+ .. .. 3221

* Amajorfindusuallyreferstoanincidentwherearecordofinterviewisconductedorprosecutionactioncommenced.Aminorfindusuallyreferstoanincidentwherearecordofinterviewisnotconductedornoprosecutionactionhascommenced.

^ ReferstoquarantinerelatedfindsbyCustomsthatresultinprosecutionaction.ThenumberofminorfindsreferredtoAQISisnotshown.

+ Includes‘Other’finds.

Anewrecordingsystem,theBaggageActionGeneralStatistics(BAGS)system,wasintroducedinthemiddleof2003–04financialyear.OnemajorchangewithBAGSwasthatonlyundeclareditemslocatedduringabaggageexaminationorpersonalsearchconductedbyCustomswererecordedinthestatistics.Undeclareditemslocatedotherwise,forexample,duringAQISintervention,arenotcapturedinBAGS.Theotherwasthatprohibitedgoodswerebrokenupintosub-categories:firearms(includingparts),otherweapons,otherprohibitedgoodsand‘other’breachesofCommonwealthlegislationnotcoveredunderlegislationspecifiedindefinedsub-categories.Thissplitisshownforthefirsttimein2004–05.

Perfor

man

ce rep

ortin

g

Out

put

1


Framework

Changes to legislation

Commercialquantities

The Customs Amendment Act 2004 (No.133, 2004)amendedScheduleVIoftheCustoms Act 1901 (theCustomsAct)toensurethatacommercialquantityisprescribedforallnarcoticsubstances.Thismeansthatlifeimprisonmentpenaltiesareavailableforoffencesagainstsection233BoftheCustomsActwhereacommercialquantityoftheprescribeddrugisinvolved.Beforethislegislativechange,lifeimprisonmentsentenceswereonlyavailablefordrugsthathadcommercialquantitiesspecificallyprescribed.Thenewpenaltiesapplytoalloffencescommittedonorafter10December2004.

Seriousdrugoffences

The Law and Justice Legislation Amendment (Serious Drug Offences and Other Measures) BillwastabledinParliamenton26May2005.ThepurposeoftheSeriousDrugOffencesBillincludesconsolidatingallFederaldrugoffencesinoneplace,andincreasingtheuniformityofdrugoffencesacrossStatesandTerritoriesofAustralia.ThenewoffencesarebasedontheModel Criminal Code Officers Committee Report onSeriousDrugOffences(Chapter6)–publishedinOctober1998.CustomsprovidedextensiveinputintothedevelopmentoftheSeriousDrugOffencesBill.

ProhibitedImportsRegulationsamendments

In2004–05,amendmentstotheCustoms (Prohibited Imports) Regulations 1956andtheCustoms (Prohibited Exports) Regulations 1958included:

• revisedregulatoryandlegislativecontrolsontheimportandexportofchildpornographyandchildabusematerialtoreflectthechangeinagefrom16to18yearsembodiedintheCrimes Legislation Amendment (Telecommunications Offences and Other Measures) Act 2004

• revisedarrangementsfortheimportandexportofindustrialandagriculturalchemicalsinlinewiththeStockholmConventiononPersistentOrganicPollutants

andtheRotterdamConventiononthePriorInformedConsentProcedureforCertainHazardousChemicalsandPesticidesinInternationalTrade

• changestocontrolsontheimportofun-manufacturedtobaccoleaf

• aDisallowanceMotionoverturningaregulationwhichallowedtheimportationofbreedsofdangerousdogsforcertainscientificpurposes.From30November2004,theproposedpermission-basedregulationsrevertedtotheformerabsoluteprohibitionontheimportofdangerousdogbreeds.

Protectionofindiciaandimages–2006CommonwealthGames

TopreparefortheMelbourne2006CommonwealthGames,CustomsisworkingwiththeDepartmentofCommunication,InformationTechnologyandtheArts(DCITA),IntellectualPropertyAustralia,theDepartmentofthePrimeMinisterandCabinet(PM&C),theAttorneyGeneral’sDepartmentandtheMelbourne2006CommonwealthGamesCorporation.Newlegislationenactedon26June2005isdesignedtopreventtheunauthorisedcommercialuseofcertainindiciaandimagesassociatedwiththeMelbourne2006CommonwealthGames.

ThelegislationwillprovideamoresecureenvironmentfortheMelbourne2006CommonwealthGamesCorporationtoraiserevenuethroughsponsorshipandcanpreventambushmarketing.TheMelbourne 2006 Commonwealth Games (Indicia and Images) Protection Act 2005,inforceuntil30June2006,isadditionaltocurrentlegislativecontrols(Copyright Act 1968, Designs Act 1906, Trade Marks Act 1995andtheTrade Practices Act 1974).

Ammoniumnitrate

On25June2004,theCouncilofAustralianGovernments(COAG)agreedtoanationalapproachfortheregulationoftheuse,transportandstorageofsecuritysensitiveammoniumnitrate(SSAN).ThisisacounterterrorismmeasureadoptedbyCOAGsothatonlyspeciallylicenseduserswhocan

Output1 ��

demonstratealegitimateneedandwillapplysafeandsecurestorageandhandlingprocedureswillhaveaccesstoSSAN.

StateandTerritoryregulatoryagencieswillissuelicencestoappropriatelyauthorisedusersandhandlersofSSAN.

AmendmentstotheCustoms (Prohibited Imports) Regulations 1956andtheCustoms (Prohibited Exports) Regulations 1958 willenterintoforceinJuly2005.ThenewregulationsgiveCustomstheauthoritytowithholdunlicensedimportsandexportsofSSAN.CustomscooperatedwithPM&Cthroughoutthedevelopmentofthecontrols,andwillreporttotheStateandTerritoryregulatoryagenciesonallimportsandexportsofSSAN.

Australian Sports Commission Amendment Act 2005

SuspectedprohibitedactivitiesanddopingallegationsmadeagainsteliteAustralianathletesinthe2004OlympicsresultedinCustomsactivity.Customscompletedchecksonover850teammembersinthreedays.ThecheckscompletedwerecomplexandinvolvedresearchintoCustomsdataholdingsacrossAustralia.

Anumberofprocessandlegislativeframeworkissueswereidentifiedtoassistsportsbodiestoinvestigatedopinginsport.CustomsconsultedwithDCITAduringthedevelopmentofamendmentstotheAustralian Sports Commission Act 1989.

The Australian Sports Commission Amendment Act 2005allowstheAustralianSportsCommissionExecutiveDirectortoauthorisethedisclosureofCustomsinformation.Customsinformationcoverstheimportationorattemptedillegalimportationofperformanceandimageenhancingdrugs(PIEDs),uncoveredeitherbypostalinterceptsordiscoveryonapersonattheborder.

TheamendmentsenhanceAustralia’sexistinganti-dopingframeworkandaffirmAustralia’scommitmenttoachievingasportsenvironmentfreefromprohibitedsubstances.

Improved licensing processes

PremisesusedtohandleandstorecargoaresubjecttoCustomscontrol,andconditionsapplytotheiroperation.Goodsmaybestoreduntiltheownerentersthegoodsintohomeconsumptionandmeetsanyrevenueliability,orexportsthegoods.

Customslicencesatotalof360depotsand425warehouses.Thesefiguresinclude24newdepotsand30newwarehouseslicensedduring2004–05.Licencesarerenewedannually.Insomecasessupplementaryinformationwasobtainedfromtheapplicantswhereinsufficientdetailswereprovided.

InMay2005,Customsimplementedanewcomputersystem,theLicensingModule,toreplacetheLicensingandPermissionsSystemofthe1990s.

TheLicensingModuleallowsfor:

• bettermanagementofthelicensingprocess

• improvedinformationtosupportregionalcompliance

• interfacewiththeIntegratedCargoSystemtoidentifylicensedbrokersandpremises

• supportfortheelectronicreportingofgoodsandtheirmovement

• interfacewithfinancialsystemsforimprovedreporting.

NationalCustomsBrokersLicensingAdvisoryCommittee

Customsbrokersarelicensedtoactasagentsforownersimportingorexportinggoods.

TheNationalCustomsBrokersLicensingAdvisoryCommittee(NCBLAC)advisestheCEOonlicensingcustomsbrokersissues.NCBLACiscomposedofonemembernominatedbyanorganisationrepresentingbrokers,oneCommonwealthmembernominatedbyCustomsCEOandanindependentChair.

In2004–05,NCBLACmaderecommendationstotheCEOaboutanewcourseofstudyforbrokers.InthisperiodNCBLACalsoconsidered100licenceapplicationsandheld11hearings.

Perfor

man

ce rep

ortin

g

Out

put

1


Weapons and strategic goods

Customscontinuestoadministerthecertificationoffirearmdealersfornewlyimportedhandguns.Customsimposeslimitsonthenumberofnewlyimportedhandgunsthatacertifieddealermayhold.Whereadealerimportshandgunsinexcessofthespecifiedlimit,theimportsarestoredbyCustomsonthedealer’sbehalf.At30June2005,therewere338gundealerscertifiedbyCustomstoholdnewlyimportedhandguns.Ofthese,themajority(over90percent)arecertifiedtoholdanamountofnomorethanten.

During2004-05thenumberoflegitimatecommercialimportationswas38786firearms(including22348rifles,8466handguns,6973shotguns,915militaryfirearmsand84antiquefirearms).Commercialexportscomprised8454firearms(including2020rifles,5430handguns,511shotguns,69militaryrifles,and424antiquefirearms).Inthesameperiod,Customsdetectedandseized1033prohibitedorundocumentedfirearmsandpartsand6235airguns.1

Customsalsocontrolstheimportandexportofothertypesofweapons.Theseincludeweaponssuchasblades,blowguns,crossbows,knuckledustersandslingsaswellasitemsintendedforuseinwarfare(suchaslarge-calibrecannonsandincendiarydevices).ImportationoftheseweaponsisrestrictedunderSchedule2and3ofthe Customs (Prohibited Imports) Regulations 1956.

In2004–05,Customsprocessed1004applicationsforpermissiontoimportSchedule2and3weapons.Thisrepresentsanincreaseofapproximately10percentwhencomparedwiththeperiod2003–04.Ofthe1004applications,964wereapproved.Theremaining40applicationswereeitherrefusalsorapplicationsthat,onexamination,relatedtogoodsthatwerenotrestricted.

CustomsworkscooperativelywithotherCommonwealthandState/Territoryagencies.

Theofficials-levelFirearmsPolicyWorkingGroupisabletopromotenationalconsistencyofcontrolsonfirearmsandotherweaponsandchangestothecontrolsoncrossbows.CustomsalsocontributestotheAustralasianPoliceMinisters’Councilprocessonarangeoffirearmsandweaponsrelatedissues.

Facilitating the movement of legitimate goods across the border and ensuring compliance

Cargo reporting

Customsapproachtofacilitatingthemovementoflegitimatecargoreliesontheabilitytoassessandidentifysuspectshipmentsquicklysoastominimisetheimpactonbonafideconsignments.TheaccuracyofreportedcargobyimportersandexportersiscriticaltoCustomsriskassessmentprocesses.

Acomplianceimprovementstrategyforcargoreportingwasimplementedinthefirsthalfof2003afterCustomsidentifiedaneedforimprovedtimelinessofreporting,especiallyforseacargo.Thisstrategyhassincebeenextendedtoaircargo.

Keyelementsofthestrategyincludeprovisionofregularfeedbacktocargoreportersonlevelsofcomplianceandgeneraleducationofindustry.Customsconductedover500educationalvisitsnationally.Continuousmonitoringoftheenvironmenthasimprovedtheoveralltimelinessofseacargoreporting.

Nationally,on-timeimportseacargoreportinghasimprovedbysevenpercentfromthetimethestrategywasimplementedtoDecember2004.

NewlegislationwasintroducedinJanuary2005toprovideCustomswithinformationaboutcargobeforeitsarrivalinAustraliaandtoallowCustomsmoretimetoriskassesscargo.ThelegislationrequiresallcargointendedtobelandedatanyportorairportinAustraliatobereportedpriortoitsarrivalatitsfirstAustralianportorairport.Insomecaseschangeinbusinesspracticeshasbeennecessary.Customscontinuestoassistindustrytomeetnewreportingrequirements.

1 Thesefiguresincludetheseizureoffirearms(andparts)andweaponsshowninFigure7.

Perfor

man

ce rep

ortin

g

Out

put

1

Customs teams – making trading data talk all languages

Customs is leading an ambitious whole-of-government project that aims to simplify data requirements for trade into and out of Australia. Rather than requiring different data for a range of government agencies, the project aims to develop a common data set that can be read easily by all parties involved in trade.

TheStandardisedDataSetinvolvesinputofmorethan80FederalandStateagenciesandindustrybodystakeholders.TheprojectcommencedinNovember2004andisrequiredtopresenttwodeliverablesbytheendofOctober2005.Theyare:

• astandardiseddatasetforthesubmissionofimport,exportandtransitdatarelatingtocargo,crewandconveyance(shipsandaircraft)details

• abusinesscaseexploringoptionsforatrade‘singlewindow’facilitytoenableindustrytosubmitthedatarequiredbyGovernmentagenciesaspartoftheinternationaltradeprocessonlyonceandhavethatdatausedmanytimes.

Theprojectlaysthefoundationforharmonisationofimport,exportandtransitprocesses.Anticipatedoutcomesareamorecoordinatedriskassessmentapproach,enhancedsupplychainsecurityandcostsavingsforbothindustryandgovernment.

Thecompleteddatasetwillbemappedagainstawidelyendorsedinternationalbenchmarktofacilitatetheopportunityforinternationaldataexchangeaspartoftradetransactions.TheStandardisedDataSetprojectteamreceivedahighlevelofsupportandcooperationfromgovernmentandindustrystakeholders.

Output1 ��

Standardised Data Set Project team, back left to right: Julie Wright, Julie Olarenshaw, Lindy Leavold, Manda Tomicic,

George Szuty. Middle: Peter King, Malcolm Galer, Jeff McKee. Front: Neil Hogan, Gareth Lewis, Paul McLellan.

Counter terrorism

ProliferationSecurityInitiative

TheProliferationSecurityInitiativeisofvitalimportancetomostcountriestopreventterroristthreats.CustomsparticipatedinavarietyofconferencesandinternationalexercisesincludingOperationalExpertsMeetings,toshareinformationandplanfutureexercises.CustomsparticipatedinSamurai04,amaritimeexercise,hostedbyJapan.Customsprovidedateamleader/observerandafour-manboardingandsearchteam.Samurai04enabledcountriestoworktogethertoimproveproceduresandreadinessinthepreventionofthespreadofweaponsofmassdestructionandmissile-relatedtrade.TheexercisewasvaluableforCustoms,providingarareopportunitytoworkwithinternationalagenciesaspartofajointtrainingexercise.

Australiaishostinganair/groundinterceptionexerciseinApril2006calledPacificProtector06.Initialplanningforthescenariohascommenced.

AustraliaGroup

Tomarkthe20thanniversaryoftheAustraliaGroup,theannualforumforthepreventionoftheproliferationofchemicalandbiologicalweaponswasheldinSydney.Customsproducedatable-topdiscussionexerciseattendedbymanyoftheconferencedelegates.Thetabletopexercisefocusedonaninternationalinvestigationdealingwithattemptstoobtaindualusechemicalsfortranshipmenttoathirdcountryforproliferationpurposes.ThecrosssectionofCustomsareasandvariousgovernmentagenciesinvolvedintheexercisedemonstratedthe:

• complexnatureofbordersecurity

• needforcountriestoformclosepartnershipsbetweentheirdomesticagenciesandinternationally.

Interagencycooperation

Customscontinuedtoprovidecounterterrorismawarenessandresponsetrainingtoallstaff.Atwodayadvancedcounterterrorismawarenesscoursewasalsodevelopedforoperationalstaff.

Tofacilitateinteragencycooperationinthecounterterrorismenvironment,thecourseincludesparticipantsfromagenciessuchastheAustralianSecurityIntelligenceOrganisation,theAustralianFederalPoliceandStateandTerritorypolice.

InternationalMaritimeOrganization

CustomswaspartoftheAustraliandelegationattheInternationalMaritimeOrganization(IMO)LegalCommitteeinApril2005todiscussstrengtheningtheinternationalresponsetomaritimeterrorism.AmendmentstotheSuppressionofUnlawfulActsagainsttheSafetyofMaritimeNavigationConventionandtheProtocolfortheSuppressionofUnlawfulActsagainstSafetyofFixedPlatformsLocatedontheContinentalShelf1988werediscussed.

TheIMOlegalcommitteeproposedtheintroductionofcriminaloffencestoprohibitthetransportofterrorists,aswellasprohibitedweaponsincludingchemical,biologicalandotherweaponsofmass-destruction.ProvisionsthatwillallowtheboardingofvesselssuspectedofcommittingtheseoffenceswillbefinalisedinOctober2005.

Outer Edge 05

InApril2005,CustomsparticipatedinacounterterrorisminvestigationandconsequencemanagementexercisecoordinatedbytheProtectiveSecurityCoordinationCentreoftheAttorneyGeneral’sDepartment.Theexerciseinvolvedadeploymentphase,anumberofdiscussionexercisesandtrainingactivities,focusedonasimulatedterroristattackinDarwin.TheexercisetestedCustomsabilitytocoordinate,communicateandworkeffectivelywithotherFederalandStateagencies.

Maritime security

CustomscontinuestoworkcloselywiththeDepartmentofTransportandRegionalServices(DOTARS)inapplyingtheMaritime Transport and Offshore Facilities Security Act 2003,whichcameintoeffecton1July2004.CustomshasaliaisonofficerworkingcloselywiththeOfficeofTransportSecurity,whichoverseesandcoordinatesmaritimesecuritycompliance.


CustomshasspecialpowersundertheActaslawenforcementofficersatports.Theseincludestoppingandsearchingpeople,vehiclesandvessels,orremovingthemfromasecurityzone.ThesepowerssupplementtheextensivepowersCustomshasinthemaritimeenvironmentforthemovementsofvessels,crewandcargo.

INTERCEPT

CustomsupgradeditsINTERCEPTinformationcomputersystem,whichrecordsdetailsofallvesselandcrewmovementsincludingrecordingofshipsecurityinformationasrequiredbyDOTARS.OnlineaccesstoINTERCEPThasbeenarrangedforanumberofexternalagenciesinvolvedintheprocessingofseacrew.

Output1 ��

Customs teams – helicopter flights speed up first port boarding procedures

Staff at Customs district offices undertake checking and clearing of international vessels and crew at a ship’s first port of entry into Australia. The logistics of this key part of border security are not always easy.

Notallshipscantieupatawharfimmediatelywhentheyarrive.AnexampleisatMackay,Queensland,wheremassivebulkoreshipsmayberequiredtoanchor12kmoffthecoastbeforetheycomeintoport.BoardingatMackayisalsocomplicatedbytidalmovementsandwharfinfrastructuredesignthathampersuseofgangways.

CustomsstaffatMackayuseready-responsevessels,butthelogisticsandofficersafetyissuesinvolvedinboardingshipsoffthecoastlineandinvariableconditionsarechallenging.

TheMackayDistrictOfficebeganatrialusinghelicopterstoreachtheseshipsquickly.Thehelicopterspeedsuptheprocessofclearingcrewsandvessels,andallowsCustomstoincreasethenumberoffirstportboardingsitundertakes.

Increased compliance through first port boarding

Inthe2004–05Budget,theGovernmentprovidedhalf-yearfundingof$2.8mforCustomstoemployanadditional19CustomsofficersinWesternAustralia,theNorthernTerritoryandQueensland.

In2004,aspartofaGovernmentinitiativetoincreasemaritimesecurity,Customsreceivedanadditional$9.3moverthreeyearstomaintaintherateofboardingshipsatthefirstportofarrivalinAustralia.Thetargetis75–80percent.Asat30June2005,Customsachieved76percentfirstportboarding,anincreasefromthe2003–04figureof70percent.

Thehelicopterlandsontheshipanddepartsleavingtheofficersaboardtocompletetheirclearanceprocedures.Oncompletionoftheirprocedures,theofficerssummonthehelicopterbacktopickthemupandtransportthemtothenextshipwaitingatanchorage.Transferbetweenshipsonlytakesoneortwominutes.

Thetrialwascompletedin2004–05,judgedasuccessandhasbecomeanimportantpartofMackay’sfirstportboardingprocesses.

ThefirstportboardingworkloadatMackayissignificant.In2004–05,itwasAustralia’sfourthbusiestportforfirstportarrivalswith953ships,behindDampier,BrisbaneandNewcastleandaheadofFremantle,PortHedlandandSydney.

Mackay officers Catherine Harpley (left) and Jay Costello

get ready to board their helicopter flight.

Perfor

man

ce rep

ortin

g

Out

put

1

Fivehundredandthirty-ninemorevesselswereboardedthisfinancialyearcomparedwithlastyear.Thenumberoffirstportarrivalvesselsalsoincreasedby170.

Customsisdevelopingnationallyconsistentguidelinesforboardingofshipsattheirfirstportofarrival.Theguidelineswillbefinalisedearlyin2005–06.

Identifying and intercepting prohibited and restricted imports and exports

Identifying risks

CustomsselectsgoodsorpeoplethatposeathreattoAustraliafromlargenumbersoftravellers,consignmentsorvessels.Sophisticatedriskidentificationtechniquesandintelligencefacilitatethis.

ThehighestpriorityforCustomsriskidentificationandintelligencein2004–05wasthetranslationofriskidentificationpracticesintothenewIntegratedCargoSystem.Thisinvolvedthedesignofthesystem,trainingofCustomsstaff,anddetailedtechnicalwork.FromOctober2004,allexportcargowasreportedandriskassessedwithinthenewsystem.

TheGovernment’sdecisiontoincreasethelevelofCustomsboardingofcommercialvesselsledCustomstoincreaseintelligencesupporttothisfunction,includingthroughastrengthenedPortIntelligenceUnit.Thisallowsbettertargetingandagreaterflowofinformation.

Intelligenceanalysissupportedthenewaircargoscreeningtrial,theimplementationofFreeTradeAgreements,andregionalcounterterrorisminitiatives.

InvestigativeactionbyProjectEnniskahasresultedinseizuresoffirearmsandweaponsanddrugreferralstolawenforcementagencies.

ThisprojectdemonstratesCustomsabilitytoadapttochangingrisksandtakeaction.ProjectEnniskaisatruepublic-privatepartnershiptoprotecttheAustraliancommunity.


Customs teams – Customs in South Australia working with eBay on Project Enniska – targeting illegal goods purchased on the Internet

As international trade online grows, the potential for people to import prohibited goods, sometimes by accident, increases. Customs has put in place measures to detect prohibited goods coming into Australia, through an Internet purchase under a national project, Enniska.

Whiletargetingallonlinetrade,theProjectEnniskateamworkscloselywithonlinemarketplaceleadereBay.ebayAustraliamonitorskeyareasofthesiteandhasstrictpoliciesinplacetopreventthesaleofprohibiteditems.ItisinevitablethatonoccasionstherewillbesomeitemsavailableininternationaleBaymarketsthatcanbelegallysoldoverseasbutareprohibitedinAustralia.TheProjectEnniskateamseekstoidentifytransactionsofinterestforfurtherinvestigation.

Left to right: Kym Schrapel, Sandra Corletto and

John Schulte receiving the 2004 Australia Day Award

Medallion for Achievement in South Australia.

Output1 �1

Customsalsostrengthenedliaisonwithforeignpartnersandimprovedthetechnologyunderpinningitsintelligenceprocesses.ThisinturnenabledCustomstobettermanageitsriskandachievesomenotableseizures.

DevelopmentofCustomsintelligencesystems

TheIntegratedCargoSystemandassociatedapplicationsprovideCustomsintelligencewithpowerfultoolsforanalysis.Theintelligenceareahasanumberofprojectsintraintotakefulladvantageofthesetools.Theseincludeworkondatacleansing,betterautomationofinformationsearchandretrievalandchangestoinformationhandlingprocesses.ThechangesareunderpinnedbytheredevelopmentofmuchofCustomsintelligencetraining.

Detector Dog Program

Attheendof2004,aspartoftheGovernment’selectioninitiatives,Customsreceivedadditionalfundingof$6.89moverfouryearstoexpandthenumberofdetectordogteamstoenhancetheDetectorDogProgramandstrengthenborderprotection.

Asat30June2005,therewere45operationalteamsdeployed,whichincludedfivenewnarcoticsdetectordogteamsthatgraduatedinMay2005.ThesenewteamsarestationedinBrisbane,Cairns,Darwin,MelbourneandPerth.

AlsoinMay2005,anotherfourteamscommencedathree-monthtrainingcourseinfirearmsandexplosivesdetection.TheywillsupplementthesixexistingfirearmsandexplosivesdetectordogteamsalreadystationedthroughoutAustralia.

Anadditionalfirearmsandexplosivesdetectordogteam,whichwillcommenceoperationsinApril2006,togetherwithreplacementtrainingforafurtherfourteams,willraisethenumberofdetectordogteamsdeployedto54.Thiswillincludetwoteamstrainedinthedetectionofchemicalprecursors.

TheGovernment’selectioninitiativesincluded$1moverfouryearstostrengthenborderprotectionbyenhancingtheCustomsdetectordogbreedingandtrainingcapabilitythroughfurtherdevelopmentofahazardouschemicaldetectioncapability,strengtheningCustoms

counterterrorismcapacityandensuringtheagency’snationalandinternationalstandinginthisemergingfield.

SomeofthisfundingfacilitatedtheupgradingoftrainingfacilitiesinBrisbane,PerthandattheNationalBreedingandDevelopmentCentreinMelbourne.Workcommencedonapseudoephedrinepilotanddevelopingachemicaldetectionprogram.Otherprojectsincludeanewandimprovedreportingsystemfordogtaskings,increasedaccountabilityforthecontroloftrainingaidsandanewfitnessprotocolfordoghandlersbeingdevelopedbyHealthServicesAustralia.

TheDetectorDogBreedingandTrainingProgramreceiveda‘HighlyCommended’AwardatthePrimeMinister’sAwardforExcellenceceremonyon10November2004.

AprogramtodevelopaCustomsdetectordogbreedingandtrainingcapabilityinthePeople’sRepublicofChina(China)commencedinMay2005.Customswilldonate12pupstoChinabytheendof2005tostarttheirownbreedingprogram.ChineseCustomsisexpectedtohavetheinfrastructureandexpertisetocommenceabreedingprogrambyJune2006.

CustomsisdevelopingasimilarcooperativeprogramtosupplyqualitydetectordogstoIndonesianCustomsandExcise.

Enforcement operations training

Operationalcommandtraining

Over500staffaccessedrelevantcomponentsoftheonlineOperationalCommandtraining.Thisyearalsosawsevenface-to-facecoursesconductedresultingin19staffqualifyingasOperationChiefs,56asOperationCommandersand88asGroupCommanders.Eachregionnowhasaccesstoabaseofoperationalcommandcapabilityatalllevelstoleadandmanageoperationalresponsefortheinterceptionofillicitgoodsorsmuggling.

Inadditiontothelargeregionalcentres,stafffrom16DistrictOfficeswerealsotrained.Thechallengeistoincreasethenumbersofoperativesundertakingthetraining.Theonlineprogramisprovingasuitableplatformtofacilitatethis.

Perfor

man

ce rep

ortin

g

Out

put

1

Customs teams – a new generation of detector dogs

Australia is recognised as a world leader in best practice for detector dog breeding, development, training and deployment.

CurrentinternationalcooperativepartnershipsincludetheUSDepartmentofHomelandSecurity,ChinaCustomsandtheCustomsandExciseDirectorateGeneralAdministrationofIndonesia.CustomsalsoremainsamajorsourceforsupplyofqualitydetectordogsfornarcoticsandfirearmsandexplosivesdetectiontootheragenciessuchastheAustralianFederalPolice,AustralianArmy,StatePoliceforcesandanumberofStateCorrectionalServices.CustomsalsoprovidesdogstotheAustralianQuarantineandInspectionServiceforfurthertrainingtoassistindetectinggoodsofquarantineconcern.

ThechallengeistomeetthisdemandwhilestillmaintaininghighstandardsandtosatisfyCustomsrequirementfordetectordogtaskings.Customsreceivedadditionalfundingof$6.89moverfouryearstostrengthenborderprotectionthroughexpansionoftheDetectorDogProgram.

Fivenarcoticsdetectordogteamsweretrainedanddeployedin2004–05andtrainingcommencedforfourmoreteamsinfirearmsandexplosivesdetection.

Someofthemoreinterestingfindingsbydetectordogsduring2004–05include:

• 1.25kgcocaineinheat-sealedbindersinthepostatSydney

• fiveecstasytabletsinapassenger’spocketatMelbourneairport

• 850gmcocainestrappedtoapassenger’slegsatSydneyairport

• guncomponentsinparcelpostatMelbourne

• plasticbottlefullofcannabis,ecstasyandamphetaminesinhaybalesonaprisonfarmduringanoperationwithTasmanianPolice.


Chris Williams from Customs in New South Wales with firearms and explosives

specialist dog Ossie.

TheOperationalReadinessUnitassistswithdeploymentexercisestoputintopracticecommandandotheroperationalskills.TwoexerciseswereconductedinBroomeandMelbournewhichalsoprovidedtheopportunityforaproductiveexchangeofinformationtostreamlinethedeliveryoftheexercisesandtoidentifyfurtherlearningneedsandopportunities.

Training of New Zealand Customs officers

InMay2005,NewZealandCustomsofficerstookpartinasmallcraftandshipssearchtrainingcourseheldinSydneyandBrisbane.ThetrainingwasfacilitatedbytheCustomsNationalEnforcementTrainingCentre.AfurtherthreeNewZealandCustomsofficersattendedtheshipsearchcourseheldinJune2005.

Container Examination Facilities (CEFs)

AllcargomovementsacrosstheborderarescreenedbyCustomsusingarangeofintelligence,targetingandprofilingtechniques.Long-standingcooperationbetweenCustomsandotherdomesticandinternationallawenforcementandsecurityagenciesfacilitateseffectivejointoperationalactivityandinformationexchangethatmayalsoassistinidentifyingandinterceptingillicitcross-borderactivity.

InJuly2004,theGovernmentprovidedanadditional$57.5moverfouryearstofurtherincreaseseacargoinspectionsattheCEFsfrom106000to133000TEU(twenty-footequivalentunits)ayear.Toachievetheincreasedthroughput,eachCEFworksoneshiftonSaturdaysandfromearlyMarch2005,theBrisbaneCEFincreaseditshoursofoperationtoincludeMondaytoFridayafternoonshifts.

TheMinisterforFinanceandAdministrationopenedtheAdelaideCEFin2005bringingthenumberofCEFstofive.TheAdelaideCEFincorporatesastate-of-the-artdualviewpalletx-raysystemthatincreasethecontainerinspectionratetenfoldattheportofAdelaidefrom173TEUayeartoapproximately1733TEUayear.

TheAustralianNationalAuditOffice(ANAO)conductedaperformanceauditoftheCEFsduring2004andreportedinDecember2004.TheANAOfoundthatCustomsCEFsareadministrativelyeffectiveandthatCustomshad‘implementedeffectivesystemsandprocessesfortargetselectionanddevelopment’.TheANAOReportnotesthattheCEFssignificantlybolsteredCustomsseacargoinspectionrates,providingenhancedbordersecurityforallAustralians.

TheANAOReportmadeeightrecommendationsforimprovementsinCEFoperations.Theserecommendationscovered:

• improvinglogisticsmanagement

• performancereporting

• dataintegrityimprovements

• targetdevelopmentandselectionprocesses

• undertakingacomprehensivereviewofallthelogisticscontractspriortore-negotiationsorre-tenderingin2006.

Customsagreedtoallrecommendationsandhasmadesignificantprogressintheirimplementation.CustomswelcomedtheANAO’srecommendationsastheywillenableCustomstofurtherenhancetheCEFs’operations.

AchievementsattheContainerExaminationFacilities

MaintaininginspectionandexaminationratesisanimportantaspectoftheCEFoperations,buttheresultfromtheincreaseinseacargoinspectionsisthemostimportantoutcome.ThesignificantdetectionslistedinFigure8onpage34areoftentheresultofcollaborationwithotherlawenforcementagencies.

Figure9showstheincreasingnumberofcontainersinspectedattheCEFsoverthepasttwofinancialyearsandthedecliningnumberofcomplaints.Increasedcomplaintsincertainmonthsareusuallylinkedtoparticularevents.Forexample,intheSeptemberquarter2004,theincreaseincomplaintscoincidedwithincreasedinspectionrates,theissuingofAustralianCustomsNotice2004/33regardingseacargoexaminationarrangementsandsignificantweather-relateddisruptionstoshipping.

Perfor

man

ce rep

ortin

g

Out

put

1

Output1 ��


Figure �: Significant Container Examination Facility detections from sea cargo, �00�–0�

Date Facility Quantity Item found

11August2004 Sydney 3361kg loosetobacco

14September2004 Melbourne 99 imitationflintlockrifles,pistolsandcarbines

12October2004 Sydney 125kg crystalmethamphetamine

14October2004 Sydney* 820kg MDMA

15October2004 Sydney 100kg loosetobacco

5November2004 Sydney 161kg MDMA

6November2004 Melbourne 1397kg loosetobacco

8November2004 Melbourne 9151kg loosetobacco

11November2004 Melbourne 304 daggersandtrenchknives

22November2004 Sydney 2000kg loosetobacco

16December2004 Melbourne 3000kg loosetobacco


21December2004 Melbourne 3860 cigarettes



27December2004 Melbourne 2.5m cigarettesticks

1February2005 Sydney 11083kg loosetobacco

5February2005 Sydney 12.4kgof MDMA

7February2005 Sydney 11000kg loosetobacco

22February2005 Sydney 500000 cigarettesticks

8April2005 Sydney 91kg MDMA

10April2005 Sydney 5m cigarettesticks

13April2005 Melbourne 1014kg MDMA

21April2005 Melbourne 9.9m cigarettesticks

5May2005 Melbourne 21888kg loosetobacco

10May2005 Sydney 320 assortedweapons

12May2005 Sydney 2960kg loosetobacco


12May2005 Sydney 1m cigarettesticks


13May2000 Sydney 1m cigarettesticks


18May2005 Sydney 500000 suspectedfake$2coins

26May2005 Sydney 2.16m cigarettesticks

2June2005 Melbourne 4150 assortedprohibitedimportsincludingreplicafirearmlighters,springbladedknivesandnoveltylighters

7June2005 Melbourne 396kg chewingtobacco

7June2005 Melbourne 1.94kg chewingtobacco

7June2005 Melbourne 1940 softairguns

*ExaminationofaircargoattheCEF.

Figure �: Customs performance at the Container Examination Facilities

Performance indicators �00�–0� �00�–0�

NumberofTEU

Inspected(x-rayed)atCEFs

PhysicallyexaminedatCEFs

89687 128411

7562 11735

NumberofcomplaintsformallyreceivedaboutCEFoperations 295 221

Perfor

man

ce rep

ortin

g

Out

put

1

Customs teams – maritime security stepped-up

On �0 July �00�, at the Brisbane Container Examination Facility, the Prime Minister announced a $��.�m Customs maritime security funding package.

ThenewfundingwillallowCustomstoincreasethenumberofcontainersexamined,increasethenumberofAustralianportscoveredbythenationalwaterfrontclosedcircuittelevisionnetwork,maintainahighlevelofshipboardingattheirfirstAustralianportsofcallandidentifyinformationthatmayimpactonsecurityfortheAustraliancommunity.ThesemeasuresenableanevenhigherlevelofprotectionforAustraliaagainstillicitdrugs,illegalarrivals,diseaseandenhancethenation’swelfare.

Asaresultofthisfundingpackage,theBrisbaneContainerExaminationFacilityincreasedstaffinglevels,theirhoursofoperationsandthroughputofcontainersx-rayed.

At the opening of the Brisbane CEF: the Hon. John Howard

MP (Prime Minister), the Hon. Philip Ruddock MP (Attorney-

General), the Hon. Chris Ellison (Minister for Justice and

Customs), Mr John Anderson (then Deputy Prime Minister

and Minister for Transport and Regional Services), with

Vinnie (detector dog) and Customs Detector Dog Unit and

Brisbane Container Examination Facility staff.

Output1 ��

Themostcommoncomplaintswereabout:

• feeschargedasaresultofexceedingthefreestorageperiod

• thewithholdingofcontainers

• delayeddelivery.

CustomshasworkedwithStevedores,ITcontractorsandrelatedpartiestoimproveprocessestoreducethenegativeimpactonimporters.

Effective management of new and existing technologies

Customsborderprotectioncapabilitiesaremulti-purposetodetectthreatssuchasnarcotics,explosivesandchemicalandradioactivesubstances.Customshasapanelofexpertstoadviseandassistinselectingnewtechnology.Toensureeffectivemanagementoftechnologies,Customsmaintainsandupgradesexistingequipment,andmonitorsdevelopmentsintechnologythroughlinkswithsuppliers,

researchanddevelopmentagenciesandacademicexperts.CustomsonlydeploysnewtechnologyafterrobusttechnicalandfieldevaluationprocessesdemonstrateitssuitabilityforCustomsoperationalneeds.

Anumberofnewtechnologyprojectswerefundedin2004–05aspartoftheGovernment’selectioncommitmentsandasprioritiestoenhancemaritimeandaviationsecurity.

Container Examination Facility x-ray image.

Theseprojectsinclude:

• biologicalandchemicalagentscreening—$20.5moverfouryearsforthepurchaseofnewtechnologyforchemicaldetectionincluding:ramanspectrometers,gaschromatograph-massspectrometers(GC-MS),ionmobilityspectrometers(IMS)andimmuno-assaytracedetectors

• mailscreeningtechnology—$13.2moverfouryearsforthepurchaseandinstallationofadvancedautomaticx-raymachinesattheSydneyGatewayFacilityandtheMelbourneAirmailTransitCentre.Thisfundingwillalsocovermetal-detectiontechnologyforgeneralmailitems

• extensionofwaterfrontclosedcircuittelevisionnetwork(CCTV)—$22.4moverfouryearstoextendtheexistingwaterfrontCCTVsystemfromthecurrent32proclaimedportstoall63proclaimedports

• neutronscannertrial—$8.4movertwoyearsforthefieldtrialofnewneutronscanningtechnologydevelopedbytheCommonwealthScientificandIndustrialResearchOrganisation(CSIRO)capableofscanningaircargocontainers.

Radiationdetectiontechnologies

Thefleetofradiationdetectorsisbeingexpandedtoinclude119radiationpagersand31radiationidentifiers.ItisexpectedthatthesewillallbereceivedbyCustomsanddeployedacrossCustomsoperationalenvironmentsbytheendof2005.Thetrainingprogramwasrevisedtoreflectthenewoperationalprioritieswithanemphasisoncounterterrorismrelatedsecurityapplications.Thistrainingprogramincludesthetrialofnewcomputerbasedtrainingtechniques.

Chemicaldetection

Customsdeployednewtracedetectionequipmentinkeyoperationalareas.Thenewdualmode(narcotics/explosives)ionmobilityspectrometersreplacedasinglemode(narcotics)spectrometer.Thirty-nineunitsofthedualmodeinstrumentsaredeployedwithfurtherprocurementplannedfor2005–06.

Fiveunitsofselectedionflowtubemassspectrometers(SIFT-MS)werepurchasedanddeployedattheCEFsinMelbourne,Sydney,Brisbane,FremantleandAdelaide.Designedtodetectawiderangeofchemicalcompoundsquicklyandaccurately,theSIFT-MSunitsalsoreplacedthelaborious,costlyandtime-consumingmethodofchemicaltesttubesforfumigantdetection.

Customsalsopurchased15ramanspectrometers,capableofrapid,non-destructiveidentificationofsolidandliquidchemicalsubstances,anddeployedtheseinkeyoperationalareas.

Inconsultationwiththemanufacturers,Customscontinuedtofinetunetheimmuno-assaytracedetectorandGC-MStoensuretheymeetCustomsrequirements.FurtherevaluationofothertechnologiesforchemicaldetectioncontinuedtoidentifysuitabletechnologiestoenhanceCustomscapabilitytodetectsubstancesofconcern.

Closedcircuittelevision(CCTV)

Newinstallationsandexpansionsin2004–05enhancedtheCustomsCCTVsurveillancesystemsatairportsandseaports.

Videosurveillancerecordingfacilitieswereupgradedfromanaloguetodigitalinfrastructureatsevenoftheeightinternationalairports.AdelaideairportisscheduledforupgradingwhenthenewterminalbuildingiscompletedinOctober2005.Videosurveillancecoverageoftheoutwardsprimarylineareaatalleightinternationalairportswassignificantlyenhancedwiththeplacementofadditionalcameraservices.TheexistingCCTVsurveillancecoverageatBrisbane,Coolangatta,Melbourne,Perth,andSydneyinternationalairportswasenhancedwiththeinstallationofadditionalcameras.

CCTVsurveillancecoverageatseaportswasimprovedinAlbany,CapeLambert,DalrympleBay,Dampier,Geraldton,Gladstone,Gove,HayPoint,Hobart,Mackay,Mourilyan,PortBotany,PortHedlandandWestSwansonMelbourne.


Output1 ��

AprojecttoexpandthecurrentwaterfrontCCTVsystemtoall63proclaimedportsisunderway.Adetailedplanningprocesscommencedandincludesprioritisationoftheports,sitevisitstothe31newportsanddevelopmentofanintegrationsolutiontolinkthenewsystemtotheexistingone.TheinstallationoftheadditionalcameraswillcommenceinOctober2005.

Radiocommunications

RelocationoftheSydneyandTownsvilleCustomsHousesprovidedtheopportunitytoupgradeandenhancethecommunicationinfrastructureateachlocation.CustomsalsofittedtheSouthernOceanPatrolandResponsevessel,theOceanic Viking,withasecurelinkfordata,voiceandvideocommunicationsthroughacommercialsatellite.

Computerforensics

Customsestablishedanationalcomputerforensicscapabilitytorespondeffectivelytothegrowingneedtoaccesselectronicevidence.

CustomsworkedwithotherFederalandStatelawenforcementagencieswherematerialidentified

relatedtooffencesundertheirjurisdiction.TheexperienceofbothAustralianandinternationalagenciesinthedevelopmentofstrategiestoseamlesslyintegratecomputerforensicsbenefittedCustomsborderprotectionrole.

ToenhanceCustomsabilitiescomputerforensicsfacilities,dataacquisitionandstorageequipmentwerepurchased.Customsofficersresponsibleforcomputerforensicscontinuouslyundergotrainingtokeepabreastofeverchangingtechnology.

ACustomsofficercommencedasix-monthexchangewiththeUnitedStatesCyberCrimeCentreintheBureauofImmigrationandCustomsEnforcement,DepartmentofHomelandSecurity,toevaluatemethodsandapproachesapplicableinAustralia.

High-techcrime

TheHighTechCrimeCentre,hostedbytheAustralianFederalPolice,isresponsibleforthecoordinationofeffortstocombatseriouscrimeinvolvingcomplextechnology.CustomsparticipatedintheworkoftheCentrethroughanoutpostedofficerarrangement.

Perfor

man

ce rep

ortin

g

Out

put

1

Figure 10: Proclaimed ports in Australia

Thursday Island

Gove

Weipa

MourilyanCairns

Abott Point

TownsvilleLucinda

Mackay Hay Point

Port Alma GladstoneBundaberg

Brisbane

YambaCoffs Harbour Lord Howe

Island

NewcastlePort Botany

Port Jackson

Port Kembla

EdenMelbourneWesternport

Port Welshpool

DevonportLaunceston, Beauty PointBell Bay & Long Reach

Spring Bay

Hobart

Port LattaPort Stanley

PortlandGeelong

Port StanvacPort Giles

Port Lincoln

Thevenard

AdelaideArdrossan

WallarooPort PirieWhyalla

Port Bonython

Esperance

Albany

Bunbury

Fremantle

Geraldton

Useless LoopCape Couvier

CarnarvonExmouth

OnslowPort Walcott

Port HeadlandDampier

Broome DerbyYampi Sound

Wyndham

Christmas Is

Cocos (Keeling) Is

Darwin

Groote Eylandt

Karumba

Burnie

mass-screencontainerisedaircargoduringan18-monthfieldtrialwhichwilltestthetechnology’seffectivenessinareal-timeoperationalenvironment.

Thetrialwillalsoassessgovernmentandindustrysystemsandprocessesthatwillbeimplementedtoaccommodateamoresecureaircargoregime.CustomsandtheDepartmentofTransportandRegionalServices(DOTARS)areassessinghowthetechnologycanbestbeintegratedwithaviationsecuritymeasures.

CustomsestablishedanIndustryConsultativeGrouptoprovideCustoms,DOTARSandindustrywithacontactpointforthebroaderaircargoindustry.TheconsultativegroupalsoassistsCustomsmakedecisionsaboutindustryissuesassociatedwiththefacilityoperations.

Customs teams – neutron scanner to inspect air cargo containers

Customs is using new technology, developed with scientific experts, to find a more efficient way of checking the contents of air cargo. The neutron scanner is a good example of Customs and scientific experts working together to solve operational problems.

CommonwealthScientificandIndustrialResearchOrganisation(CSIRO)scientistsdevelopedalaboratoryprototypeoftheneutronscanner,whichdemonstratedthatitwascapableofscanningcontainerisedaircargoandprovidinginformationonthedensityandcompositionofobjects.

Basedontheoutcomeofthelaboratorytesting,theGovernmentallocated$8.4movertwoyears,aspartoftheAviation Security Initiatives,toconductafieldtrialofacommercialprototypeoftheneutronscanner.Thescannerusesgammaradiationandneutron-analysistechnologytoprovideinformationaboutthesize,shape,densityandcompositionoftheitemsbeingscanned.

AfacilityatBrisbaneAirporthasbeenpurposebuilttoaccommodatethecommercialprototypeneutronscannerunderconstructionbytheCSIRO.Thescannerwillbecommissionedinthesecondhalfof2005andwillbeusedto

The neutron scanner team, from left to right: Nicola Viney,

Michael O’Donovan, Ole Andersen, Michael Crawford and

Kristin Williams.

Detection and investigation

Illicit drugs and precursor chemicals

Customscontinuedtodevelopdrugpolicy,contributetoprojectsandprovideinputintoexternaldrug-relatedresearchtosupportoperationalfunctionsforthedetectionofillicitdrugsandprecursorchemicals.CustomscontributedtotheobjectivesoftheNationalDrugStrategy:Australia’sIntegratedFramework2004–2009byreducingthesupplyanduseof

illicitdrugsinthecommunitythroughitsdetectionsofillicitdrugsandprecursorchemicalsattheborder.

In2004–05,Customsdetectedagreaterquantity(weight)ofcocaineandMDMA(ecstasy)consignmentsattheborderthaninthepreviousyear,withadecreaseinthenumberofdetections.Customsdetectedahigherquantityandgreaternumberofheroinandamphetamine-typestimulantsattheborder.


Output1 ��

Perfor

man

ce rep

ortin

g

Out

put

1

Figure 11: Drug detections* by mode of importation

Detections Weight (kg)^ �00�–0� �00�–0� �00�–0� �00�–0� �00�–0� �00�–0�

Air passengers and crew

Cannabis 149 79 35 1.71 4.34 0.40

Cocaine 14 63 26 17.00 77.51 40.94

Heroin 47 26 27 46.65 19.81 27.05

MDMA(Ecstasy) 20 29 15 10.30 37.89 42.59

ATS~ 13 15 7 1.06 2.40 8.06

Precursors## 66 56 23 .. .. ..

PIEDs@ 97 99 70 .. .. ..

Other** 77 56 46 .. .. ..

Cargo and postal#

Cannabis 545 574 433 16.39 704.36 4.53

Cocaine 403 590 415 43.70 53.02 52.17

Heroin 57 37 166 147.28 41.36 149.85

MDMA(Ecstasy) 291 265 154 545.89 835.06 2332.36

ATS~ 199 124 196 238.26 3.51 133.30

Precursors## 1550 726 253 .. .. ..

PIEDs@ 1181 1116 981 .. .. ..

Other** 4074 2843 1518 .. .. ..

Shipping and aircraft+

Cannabis 7 6 1 3.99 0.72 -

Cocaine - - 1 - - 100.67

Heroin 1 - - 125.00 - -

MDMA(Ecstasy) - - - - - -

ATS~ 3 1 1 0.01 0.01 9.81

Precursors## 1 - - .. .. ..

PIEDs@ - 1 - .. .. ..

Other** 5 - - .. .. ..

Total

Cannabis �01 �� .0� �0�.�� .��

Cocaine �1� �� 0.�0 1�0.�� 1��.��

Heroin 10� �� 1�� 1�.�� 1.1� 1��.�0

MDMA (Ecstasy) �11 �� 1�� .1� ��.�� .��

ATS~ �1� 1�0 �0� ��.�� .�� 1�1.1�

Precursors## 1 �1� �� .. .. ..

PIEDs@ 1 �� 1 �1� 1 0�1 .. .. ..

Other** �1�� 1 �� .. .. ..

*Drugdetectionssubjecttofurtherinvestigationmightnotappear.^Weightshownmaybetheconfirmedweight(ifavailable)orthegross,netorestimatedweight. WhereweightofdetectionsofATSandMDMA(ecstasy)wasnotavailable,anestimateof0.29gpertabletwasused. Estimatedweightvaluesforprecursors,PIEDsand‘Other’drugsarenotshownasthereisnoconsistentunitofmeasureavailable.

Itemsinthesecategoriescanbemeasuredingrams,volume,doseunitorcapsules.# Includesdetectionsmadefromaircargo,seacargoandinternationalpost.+ Includesdetectionsmadefromsearchesofseapassengersandcrew,vesselsandaircraft.~ Amphetamine-typestimulants(ATS)includesmethamphetamineandamphetaminebutexcludesMDMA(ecstasy).##Precursorfiguresrefertodetectionsofchemicalsubstancesthatareprohibitedimports/exportswhichmaybeusedinthemanufacture

ofillicitdrugs.Manyprecursorsdetectedwerelikelynotintendedforthemanufactureofillicitdrugs,butwereactiveingredientsinhealthsupplements,coldandflupreparations,herbalmedicinesandweight-lossproductspurchasedontheInternet.

@PIEDsincludesteroids,DHEA(dehydroepiandrosterone/prasterone)andhormones.** ‘Other’drugdetectionsrefertostimulantsotherthancocaineoramphetamine-typestimulants,narcotics/analgesicsotherthanheroin,

psychotropics/hallucinogensotherthanMDMA(ecstasy)orcannabisproducts,andalldepressantsandsedatives.Excludesprecursors.Figuresmayvaryfromthosepreviouslypublishedduetoadjustmentsarisingfromadministrativecorrections,subsequentchemicalanalysisandfurtherinformationreceivedfromtheAFP.Detectionssubjecttofurtherinvestigationmightnotinitiallyappear.


Figure 1�: Drug detections and significance of offence

Detections Weight (kg)*

Significance^ �00�–0� �00�–0� �00�–0� �00�–0� �00�–0� �00�–0�

Commercial

Cannabis - 1 - - 644.38 -

Cocaine 4 14 15 15.05 49.79 144.97

Heroin 17 7 10 295.61 47.78 151.27

MDMA(Ecstasy) 16 32 21 550.14 861.81 2369.49

ATS** 2 1 8 233.90 2.32 146.78

Trafficable

Cannabis 44 31 13 18.99 63.03 3.20

Cocaine 390 616 411 45.63 80.72 48.79

Heroin 86 53 179 23.32 13.39 25.63

MDMA(Ecstasy) 281 247 146 6.05 11.13 5.46

ATS** 179 117 170 5.41 3.59 4.37

Minor

Cannabis 657 627 456 3.10 2.01 1.73

Cocaine 23 23 16 0.02 0.02 0.01

Heroin 2 3 4 0.00 0.00 0.00

MDMA(Ecstasy) 14 15 2 0.00 0.00 0.00

ATS** 34 22 26 0.02 0.01 0.02

Total

Cannabis �01 �� .0� �0�.�� .��

Cocaine �1� �� 0.�0 1�0.�� 1��.��

Heroin 10� �� 1�� 1�.�� 1.1� 1��.�0

MDMA (Ecstasy) �11 �� 1�� .1� ��.�� .��

ATS** �1� 1�0 �0� ��.�� .�� 1�1.1�

*Weightmaybeconfirmedweight(ifavailable)orgross,netorestimatedweight.Wheredetectionsofamphetamine-typestimulantsandMDMA(ecstasy)wasnotavailable,anestimateof0.29gpertabletwasused.

^SignificanceofoffenceisbasedontheclassificationusedintheCustoms Act 1901andissummarisedas:

Heroin Cocaine CannabisCannabisresin

MDMA(ecstasy) ATS

Commercial 1.5kgandover

2kgandover

100kgandover

50kgandover

0.5kgandover

0.75kgandover

Trafficable Between2gand1.5kg

Between2gand2kg

Between100gand100kg

Between20gand50kg

Between0.5gand0.5kg

Between2gand0.75kg

Minor Lessthan2g Lessthan2g Lessthan100g

Lessthan20g

Lessthan0.5g

Lessthan2g

**Amphetamine-typestimulantsincludesmethamphetamineandamphetaminebutexcludesMDMA(ecstasy).

Commonwealthlegislationspecifyingcommercialquantitiesofamphetamineandmethamphetamine(andothernarcoticsubstances)tookeffecton10December2004.PreviousAnnualReportsassumedacommercialquantityof2kgforamphetamine-typestimulants.Thesefigureshavebeenrevised.

Figuresmayvaryfromthosepreviouslypublishedduetoadjustmentsarisingfromadministrativecorrections,subsequentchemicalanalysisandfurtherinformationreceivedfromAustralianFederalPolice.Also,detectionssubjecttofurtherinvestigation(includingcontrolleddeliveries)mightnotinitiallyappear.


Perfor

man

ce rep

ortin

g

Out

put

1

Customs teams – more records broken

Customs was involved in some of the largest ever detections of illicit drugs in �00�–0�.

InAugust2004,CustomsandtheAustralianFederalPolice(AFP)conductedajointoperationwhichledtotheseizureof100kgofcocaine,withastreetvalueofapproximately$45m,allegedlyimportedonthebulkgraincarrierMV Marcos Dias.TheoperationinvolvedextensivesurveillanceofthevesselinAustralianwatersusingacombinationofCoastwatchDash8electronicsurveillanceaircraft,aCustomspatrolboat,thermal-imagingequipmentandCustomsclosed-circuittelevisionnetworkinAlbanyHarbour,WesternAustralia.CoastwatchundertookextensivesurveillanceofthevesselfromthetimeitenteredAustralianwaters.TheAustralianCustomsVesselBotany BayshadowedtheMarcos DiasasitenteredAlbanyHarbourandthencrewlaterassistedinthesearchofthevessel.AlbanyDistrictOfficewasalsoinvolvedintheoperationassistingbothCustomsofficersfromFremantleandtheAFP.TheAFParrestedaBoliviannationalandtwoSydneymenfortheallegedattemptedimportation.

InOctober2004,24kgofheroinwasdetectedinaparcelfromtheBow de SilveratPortBotany.Customsinspectedtheparcel,whichwasreportedasfueltestingequipment.Fivemonthslater,twofemaleMalaysiannationalswerearrestedinconnectionwiththisimport.

InOctober2004,818kgofMDMA(ecstasy)wasdetectedinthewallsofanoven,importedfromPolandthroughaircargointoSydney.AFPquicklyidentifiedandarrestedtwoNewSouthWalesmeninconnectionwiththeimport.

AtPortBotanyinNovember2004,161kgofMDMAwasdetectedinaseacargoconsignmentoriginatingfromBelgium.Thedrugwasconcealedwithincoffeebags,insidetwoboxesheldwithinaconsignmentoffurniture.

InApril2005,theworld’slargestseizureofMDMAwasmadeinMelbourneasaresultofajointoperationbytheAFPandCustoms.Theonetonneseizurewasdetectedinaseacargo

consignmentoftilesfromItaly.Thedetectionwasmadebyx-ray,whichrevealedlargecavitiesinthemiddleofeightpalletsoftiles.FourMelbournemenwerearrested.Theseizurehadanapproximatestreetvalueof$250m.

InMay2005,morethan115kgofheroinwasseizedandfivemenwerearrestedinajointCustomsandAFPoperation.Morethan399smallblocksofheroinwereconcealedwithintheroofingoftwoshippingcontainers,listedtobecarryingplasticchairs.Thedrugshadapotentialstreetvalueofmorethan$60m.Theseizure,thelargesteverofheroininSouthAustralia,wastheresultofa12-monthinvestigationinvolvingcooperationwithlawenforcementauthoritiesinBelgium,theNetherlands,ChinaandHongKong.

CustomsparticipatedinanAFPintelligenceinvestigationintotheactivitiesofatrans-nationalcriminalsyndicate,believedtobeactiveintheglobaldistributionofillicitdrugs.On8June2005,theinvestigationresultedintheseizureofapproximately11kgofsuspectedcrystalmethamphetaminehydrochlorideor‘ice’,andthearrestofthreesuspectswhowereeachchargedwithimportingaprohibitedimport.The‘ice’hadbeenimportedonaUSNavyvesselintoTownsville.

Customs and Australian Federal Police officers with part of

the world’s largest seizure of MDMA.

Perfor

man

ce R

epor

ting

O

utpu

t1

Output1 �1


Figure 1�: Number and weight (kg) of MDMA (ecstasy) detections

0

50

100

150

200

250

300

350

0

500

1000

1500

2000

2500

3000

3500

• aprojectproposalfortheNationalIndustrialChemicalNotificationandAssessmentSchemeDatabase—adatabasethatwillenablemoredetailedtrackingofchemicalmovementswithinAustralia.

InApril2005,CustomsdeliveredthefirstoftenprecursortrainingcoursestoenhanceCustomsofficers’abilitytodetectandinterceptprecursorchemicalsandequipment.Thetrainingcoursesusearangeofexpertdomesticandinternationalpresentersandincorporatesachemicalfamiliarisationcomponentconductedindedicatedlaboratoryfacilities.ThecoursesassistCustomsofficersindevelopingknowledgeofchemicalprecursorsandtheirroleinillicitdrugmanufacture,aswellasfamiliarisationwithbasicpropertiesofprecursors,methodsofconcealment,misdescriptionandimportationsources.ThetrainingiscomplementedbythecreationofinformationandintelligencesharingnetworkswithexternalpartnersineachCustomsregiontobettertargetprecursordiversion.

Customsmadetwomajordetectionsofpiperonal,aMDMAprecursorchemical,inDecember2004inSydneyandinFebruary2005inMelbourne.Overthreetonnesofpiperonalweredetected.

MDMA(ecstasy)

ThequantityofMDMAdetectedincreasedfrom872kgin2003–04to2.4tonnesin2004–05,withadecreaseinthenumberofdetections(seeFigure13).

Precursorchemicals

Customsisakeynationalpartnerincollaborativeeffortstocombatthediversionofprecursorchemicals.TheNationalWorkingGrouptoPreventtheDiversionofPrecursorChemicalsintoIllicitDrugManufacture(thePrecursorWorkingGroup)involvesAustralianandStateandTerritoryGovernmentrepresentativesandmembersofhealth,lawenforcement,regulatoryandindustrybodies.

ThePrecursorWorkingGroupevaluated:

• theimpactofprecursorcontrols

• sharedintelligenceonprecursorsandclandestinelaboratories.

Customsprovidedinputto:

• afeasibilityreportandanevaluationreportintotheNationalClandestineLaboratoryDatabase

Num

ber

ofd

etec

tion

s

Perfor

man

ce rep

ortin

g

Out

put

1

Output1 ��

Figure 1�: Interceptions of precursor type drugs*

�00�–0� �00�–0� �00�–0�

Air passengers and crew

Precursorforamphetaminetypesubstance^ 66 56 23

PrecursorforLSD~ - - -

PrecursorforGHB(Fantasy)+ - - -

PrecursorforMDMA(Ecstasy)< - - -

Cargo and Postal**

Precursorforamphetaminetypesubstance^ 1506 705 235

PrecursorforLSD~ 29 9 6

PrecursorforGHB(Fantasy)+ 12 11 8

PrecursorforMDMA(Ecstasy)< 3 1 4

Other^^

Precursorforamphetaminetypesubstance^ 1 - -

PrecursorforLSD~ - - -

PrecursorforGHB(Fantasy)+ - - -

PrecursorforMDMA(Ecstasy)< - - -

Total

Precursor for amphetamine type substance^ 1�� 1 ��

Precursor for LSD~ ��

Precursor for GHB (Fantasy)+ 1� 11 �

Precursor for MDMA (Ecstasy)< � 1 �

*Precursorfiguresrefertodetectionsofchemicalsubstancesthatareprohibitedimports/exportswhichmaybeusedinthemanufactureofillicitdrugs.Manyoftheprecursorsdetectedwerelikelynotintendedforthemanufactureofillicitdrugs,butwereactiveingredientsinhealthsupplements,coldandflupreparations,herbalmedicinesandweight-lossproductspurchasedontheinternet.

^Precursorsforamphetamine-typestimulantsincludeephedrine,mahuang/ephedra,henylpropanolamine/norephedrine,pseudoephedrine.TheUSAFoodandDrugAdministrationintroduceddomesticcontrolsonephedrainDecember2003,whichtookeffectinMarch2004.TherestrictedavailabilityoftheseproductsislikelytohavereducedtheincidenceofindividualsimportingephedraproductsadvertisedaslegalintheUSA,unawarethatitisaprohibitedimportinAustralia.Thiswouldresultinreducedratesofdetection.

~PrecursorsforLSDincludesergometrineandergotamine.

+PrecursorforGHB(Fantasy)includegammabutyrolactone(GBL).However,GBLisalsosubjecttoabuseinitsownright,andistreatedasanarcoticsubstanceunderCustomslegislation.

<PrecursorsforMDMA(Ecstasy)mayalsobeprecursorstorelateddrugssuchasMDAorMDEA,andincludespiperonal,andsafrole,isosafrole,andmethylenedioxyphenyl-2-propanone(3,4-MDP-2-P).

**Includesdetectionsmadefromaircargo,seacargoandinternationalpost.

^Încludesdetectionsmadefromsearchesofseapassengersandcrew,vesselsandaircraft.


Targetingamphetamines

ProjectPRISM(PrecursorsRequiredInSyntheticManufacture)isaninternationalprojectonamphetamine-typestimulantprecursorscoordinatedbytheInternationalNarcoticsControlBoardoftheUnitedNations.CustomsisthecentralnationalauthorityandactsasthesinglecontactpointfordomesticandinternationalagenciesforProjectPRISM.TheProjectoperatesbydevelopingandimplementingstandardmechanismsandprocedurestoimprovetheapplicationofregulatoryandlawenforcementcontrolsonamphetamine-typestimulantprecursors.Supportingactivitiesinclude:

• identificationofsuspiciousshipments


• identificationofpatternsofoperationandsmugglingroutes

• preventionactivitiessuchasawareness-raisinginitiatives.

CustomsisalsoamemberoftheProjectPRISMTaskForce,thegoverningbodyoftheProject,andinthiscapacityactsastheregionalfocalpointforOceania.Thisroleinvolvessharinginformationonregionalprecursorseizuresandtrendsandlaunchingandcoordinatingregionaloperations.

In2004–05,theweightofamphetamine-typestimulantsdetectionsincreasedfrom6kgto151kg.Thenumberofamphetamine-typestimulantsdetectionsincreasedfrom140to204

Figure 1�: Number and weight (kg) of amphetamine-type stimulants* detections

*Amphetamine-typestimulantsdoesnotincludethecrystallinevarietyofmethamphetaminecalled‘ice’.ExcludesMDMA(ecstasy).

Figure 1�: Amphetamine-type stimulants and crystalline methamphetamine (ice) detections by weight (kg)

Amphetamine-type stimulants# Crystalline methamphetamine (ice)^

Detections Weight (kg)* Detections Weight (kg)*

�00�–0� 198 6.15 17 233.18

�00�–0� 128 3.55 12 2.37

�00�–0� 186 27.31 18 123.85

*Weightshownintheabovetableisanestimation.Weightiscalculatedusing0.29gmpertabletwhereaweightwasnotavailable.Somesmallquantityshipmentsofamphetamine-typestimulantsdonothaveweightrecorded,sotheseweightfiguresareaslightunderestimate.

#Amphetamine-typestimulantsincludeamphetaminesandmethamphetaminesinliquid,capsule,paste,powderortabletform.ItdoesnotincludeMDMA(Ecstasy)orthecrystallinevarietyofmethamphetaminecalled‘ice’.

^Crystallinemethamphetamineisshownseparately,butwouldusuallybeincludedinfiguresforamphetamine-typestimulants.


Num

ber

ofd

etec

tion

s

(seeFigures15and17).

Output1 ��

Potentformsofmethamphetamine

TheNationalDrugLawEnforcementResearchFund(NDLERF)hascommissionedresearchtoexaminetheincreasedprevalenceofmorepotentformsofmethamphetamineinAustralia.Customs,withtheNewSouthWalesPolice,isco-investigatorwiththeNationalDrugandAlcoholResearchCentre.Theprojectisfocusingonthesupplyanddistributionnetworksformethamphetamine,especiallycrystallinemethamphetamine(ice).

Apreliminaryreport,The Methamphetamine Situation in Australia: A Review of Routine Data Sources,wasreleasedin2004asatoolforpolicymakersandresearchers.

ThefinaldatacollectionphasehasbeencompletedandthefinalreportwillbereleasedbytheNDLERFBoardinearly2005–06.

ThenumberandweightofmethamphetaminedetectionsbyCustomsisfurtherdetailedbelow.

Figure 1�: Number and weight (kg) of crystalline methamphetamine* detections

*Includesonlythecrystallinevarietyofmethamphetaminecalled‘ice’.ExcludesMDMA(ecstasy).

X-ray image of candles. Candle cut open to reveal the drug, ‘ice’.

Num

ber

ofd

etec

tion

s

Perfor

man

ce rep

ortin

g

Out

put

1


ToughonDrugsinSport

TheprimaryfocusoftheGovernment’sToughonDrugsinSportStrategyistopreventtheillegitimateuseofperformance-enhancingdrugsbyathletes.Itencompassesarangeofregulatory,legislative,policy,researchandeducationalanti-dopinginitiatives.Customshaskeysupplyreductionresponsibilitiesunderthestrategy.

AustraliaalsosupportstheWorldAnti-DopingCodeandtheCopenhagenDeclarationandhasacommitmenttoacomprehensiveanti-dopingframework.ThereadyavailabilityofCustomsinformationforuseinanti-dopinginvestigationsandhearingsisanessentialelementofsuchaframework.

Interceptionsofperformanceandimageenhancingdrugsarebelow.

IntergovernmentalCommitteeonDrugs(IGCD)

CustomsisamemberoftheIGCD,aforumofseniorofficerswhorepresenthealthandlaw

enforcementagenciesfromeachAustralianjurisdictionandNewZealand.TheIGCDadvisestheMinisterialCouncilonDrugStrategyondrug-relatedmattersandimplementsNationalDrugStrategypoliciesandprograms.

AkeyoutcomefromtheIGCDin2004–05wastheestablishmentofanIGCDSchedulingWorkingPartyonControlledSubstancestorecommendwhichsubstancesandplants,withappropriatequantitiesforeach,shouldbeincludedintheproposedSeriousDrugOffenceslegislation.TheWorkingPartywillalsoreviewthevoluntaryPlasticsandChemicalsIndustriesAssociation(PACIA)NationalCodeofPracticeforSupplyDiversionintoIllicitDrugManufacture(thePACIACode).CustomsalsoprovidestheSecretariatfunction.

Customsroleindrugresearch

ClosepartnershipshavebeendevelopedwithpeakresearchbodiessuchastheNationalDrugandAlcoholResearchCentre(NDARC)throughCustomsassistanceinthepreparationofthe

Figure 1�: Interceptions of performance and image enhancing drugs

�00�–0� �00�–0� �00�–0�

Air passengers and crewSteroids 63 75 54

DHEA~ 29 19 10

Hormones# 5 5 6

Cargo and Postal*

Steroids 632 724 705

DHEA~ 372 237 176

Hormones# 177 155 100

Other^Steroids - 1 -

DHEA~ - - -

Hormones# - - -

TotalSteroids �� 00 ��

DHEA~ �01 �� 1��

Hormones# 1�� 1�0 10�

* Includesdetectionsmadefromaircargo,seacargoandinternationalpost.Încludesimportationsviaseapassengersandcrew,vessels,aircraftanddetectionsarisingfrompost-borderoperations.~DHEAisdehydroepiandrosterone/prasterone.# DetectionsofEPO,Darbepoetinalphaandnaturalandmanufacturedgonadotrophinsareincludedinthefigures

forhormones.Figuresmayvaryfromthosepreviouslypublishedduetoadjustmentsarisingfromadministrativecorrections,subsequentchemicalanalysisandfurtherinformationreceivedfromtheAustralianFederalPolice.Also,detectionssubjecttofurtherinvestigation(includingcontrolleddeliveries)mightnotinitiallyappear.

Output1 ��

IllicitDrugReportingSystem,ayearlyreportbyNDARConAustralia’sdrugenvironment.

Customsalsocontributedtoexternaldrug-relatedresearchsuchastheAustralianCrimeCommission’sIllicitDrugDataReport2003–2004(publishedin2005).

CustomsplayedaleadroleinNDLERFthroughrepresentationonitsBoardofManagement.Customswasactivelyinvolvedinanumberofresearchprojects,includingdevelopingperformancemeasurementsfordruglawenforcementandresearchonthescaleandscopeofdrugmarketactivity.

CocaineuseinNewSouthWalesandVictoria

NDARCisconductingaprojectwhichaimstodeterminethescaleoftheAustraliancocainemarket,especiallyaffluentcocaineuserswhoarelesslikelytocometotheattentionofhealthandlawenforcementauthorities.TheprojectcommencedinApril2004.CustomsisrepresentedontheReferenceGroup.AdraftreporthasbeencirculatedtoReferenceGroupmembers.

Performancemeasurementindruglawenforcement

CustomsisworkingwiththeAustralianInstituteofCriminologyonaprojecttoenhanceperformancemeasurementindruglawenforcementinAustralia.

Thefirststageoftheprojectwascompletedthisyear.Thisinvolvedreviewofexistingsystemsandprocessesanddevelopmentofatrialperformancemeasurementsystem.Thesecondstagewilltrialperformancemeasures.

CustomsisthetrialagencyatthenationallevelandNewSouthWalesPoliceisthetrialagencyatthejurisdictionallevel.

AprojectteammemberfromtheAustralianInstituteofCriminologyislocatedinCustoms.

UnitedNationsinternationaldrugcontrolprograms

CustomscontributedtoAustralia’sreportingtotheUnitedNationsinthreereports:

• the2004annualreportontheoperationoftheinternationaldrugcontroltreaties

• theBiennialReportsQuestionnaireforreportingontheactionplansandmeasuresadoptedbytheUnitedNationsGeneralAssemblySpecialSessionontheWorldDrugProblem

• theannualreporttotheInternationalNarcoticsControlBoardfortheimplemen-tationofArticle12oftheUnitedNationsConventionAgainstIllicitTrafficinNarcoticDrugsandPsychotropicSubstances1988.

UnitedNationsCommissiononNarcoticDrugsResolutions

Australiaco-sponsoredseveralresolutionsatthe48thSessioninMarch2005.Oneresolutionstrengthenedinternationalcooperationtopreventtheillicitmanufactureofandtraffickinginnarcoticdrugsandpsychotropicsubstances.AnotherpromotedsharinginformationonemergingtrendsinsubstancesnotcontrolledundertheinternationaldrugcontrolConventions.

Identity fraud

CustomsparticipatesinseveralforumstoaddressidentityfraudincludingtheOpalGroupandtheCommonwealthReferenceGrouponIdentityFraud.

OpalGroup

TheOpalgroupiscomprisedofanumberofCommonwealthagenciesandischairedbytheAustralianFederalPolice.Itmeetsquarterlytoshareinformationonlatesttrends.

CommonwealthReferenceGrouponIdentityFraud

CustomsparticipatesintheCommonwealthReferenceGrouponIdentityFraudwhichischairedbytheAttorneyGeneral’sDepartment.TheReferenceGroupisresponsiblefordevelopingawhole-of-governmentstrategytoenhanceidentificationandverificationprocessesinCommonwealthagencies.

CustomsisparticipatinginworkinggroupsestablishedbytheReferenceGrouptofocusonspecificissuessuchasauthenticationstandards,integrityofidentitydata,documentverificationservicesandstandardframeworksforproofofidentity.

Perfor

man

ce rep

ortin

g

Out

put

1

Customs teams – investigation operation

In August �00�, Customs officers carrying out mail-screening duties in Brisbane identified and intercepted a parcel containing �.�kg of ephedrine. The ephedrine, a precursor chemical used in the manufacture of methamphetamine, was concealed in containers of diet supplements imported through the postal system from Canada.

Followingtheinterception,CustomsinvestigatorscoordinatedamanageddeliveryoperationinQueenslandandinvestigationsleadingtoprosecutionsinQueenslandandSouthAustralia.WarrantswereexecutedbyCustomsinvestigatorsinthreestatesandassetsinexcessof$350000wereseizedasproceedsofcrime.

InMay2005,aQueenslandmanenteredaguiltypleaandwassentencedto15monthsimprisonment.ASouthAustralianmanalsoenteredguiltypleasformoneylaunderingandoperatingbankaccountsinfalsenamesaswellastheimportationoftheephedrine.Sentencingisduelaterin2005.

Theresultcamefromeffectivedetectionandgreatteamworkthatinvolvedco-operationbetweenCustomsinvestigatorsandpoliceinQueensland,SouthAustraliaandVictoria.

TheGovernmentprovided$13.2moverthreeyearstodevelopmailscreeningtechnologyandincreaseborderprotection.


Weighing the evidence found. Alex O’Brien, Brisbane Investigations (left) and Darrald Blundell, Postal Operations.

Output1 ��

Money laundering

FinancialActionTaskForce(FATF)–AsiaPacificGroup(APG)

Australia’santi-moneylaunderingregimeiscurrentlybeingreviewedbyFATF.AsamemberoftheFATF–APGCoordinationGroup,CustomsisinvolvedbothincontributingtotheAustralianresponsetotheFATFevaluationquestionnaireandmetwiththeFATFevaluationteamwhichvisitedCanberrainMarch2005.

CustomscontributedtothedevelopmentofAustralia’slegislativeresponsetochangesintheFATFrecommendations,especiallyforcashcourierissues.Thisinvolvementwillcontinuethroughtopassageoflegislationanticipatedin2006.

Corruption

ConventiononCombatingBriberyofForeignPublicOfficials

Inthefirsthalfof2005,Australia’scompliancewiththeConvention on Combating Bribery of Foreign Public Officials in International Business Transactions wasreviewedbytheOrganisationforEconomicCooperationandDevelopment(OECD).CustomscontributedtotheAustralianresponsetotheOECDevaluationquestionnaireandmetwiththeOECDevaluationteaminJune2005.

CustomsundertookseveralstepstoraiseawarenessoftheConventionamongCustomsstakeholders,includingprovidinginformationontheCustomsInternetsite.Theoutcomeofthereviewisnotyetfinalised.

Investigations

CustomsinvestigatesseriousCustomsoffencesincludingtheillegalmovementofprohibitedandrestrictedgoodsacrosstheAustralianborder.CustomsalsoconductsfinancialinvestigationsinaccordancewiththeProceeds of Crime Act 2002forrecoveryofassetsassociatedwithcriminaloffences.

CustomsinvestigatorsworkaccordingtotheAustralianGovernmentInvestigationStandardsandtheCommonwealthFraudControlGuidelines2002.

Figure19summarisesthenumberofmattersinvolvingtheimportandexportofprohibitedandrestrictedgoodsmanagedbyCustomsInvestigationsBranch.Thegradualriseinthenumberofmattersreferredforinvestigationreflectstheincreasingrateofdetectionsattheborder.

Figure 1�: Summary of investigations activities concerning the illegal import and export of prohibited and regulated goods such as weapons, performance enhancing drugs, precursor chemicals, child pornography, flora and fauna

�00�–0� �00�–0� �00�–0�

Referralsreceived* 1879 2033 2368

Casesadopted 627 561 387

Casescompleted^

withprosecution(throughcourts) 128 112 106

withoutprosecution 504 427 274

Caseswhereprosecutionbriefscompleted^ 134 119 95

* AreferraliswhereinformationispassedtotheCustomsInvestigationsBranchforfurtherinvestigation.Acaseisareferralthatisfoundtowarrantfurtherexamination.Wherethatexaminationfindssufficientevidencetosatisfyacourtthatanoffencewascommitted,abriefofevidence,orprosecutionbrief,ispreparedfortheCommonwealthDirectorofPublicProsecutions(forcriminalmatters)ortheAustralianGovernmentSolicitor(forcivilmatters).Insomecases,prosecutiondoesnottakeplace.Anexampleofthisiswhere,ratherthanprosecuting,thegoodsinquestionareseizedandawarningissued.

Încludescasesadoptedinpreviousyears.

Perfor

man

ce rep

ortin

g

Out

put

1


CustomscontinuestoworkjointlywithotheragenciesforoffencesdetectedattheAustralianborderthatarealsorelatedtootherCommonwealthandStatejurisdictions,suchasfirearmtrafficking.

Customsbecameanauthorisedagencyempoweredtoundertakeinvestigationactivityinaccordancewiththe Proceeds of Crime Act 2002whentheActenteredintoeffectinJanuary2003.Duringthefinancialyears2003–04and2004–05,Customsgraduallyincreasedattentiontotheidentificationandrecoveryofcriminalassetsassociatedwithseriousimportandexportoffences.Fourcaseswereinvestigatedinthatperiodandoneoftheseinvestigationsresultedintherestraintofallegedcriminalassets,havinganestimatedvalueof$370000.

Managed deliveries

TheCustomsActrequiresthattheMinisterforJusticeandCustomsreportannuallyanymanageddeliveriesundertakenbyCustomsofficersinthecourseoftheirduty.Amanageddeliveryreferstothepracticeofarrangingthedeliveryofanyquantityofprohibitedgoodsorsmuggledgoodsintothepossessionofapersonsuspectedtohavecommittedanoffence,andwhoisexpectingthedeliveryofthosegoods.

Customsconducted18manageddeliveriesfortheillegalimportandexportofprohibitedandregulatedgoods.Prosecutionactionhascommencedinrelationtofiveofthesemanageddeliveriesandinvestigationcontinuesinrelationtotenothers,withafurtherthreecasesterminated.Sevendefendantsinthesemattersenteredguiltypleastooffencesincludingimportationofprecursordrugs,moneylaunderingandevasionofCustomsduty.

Planning for the future

FutureplansforOutput1areto:

• commencefieldtrialoftheneutronscanneratBrisbaneairport

• evaluateportaltechnologycapableofdetectingexplosivesandnarcoticsonpeople

• deploynewequipmentcapableofchemicaldetection,suchasramanspectrometersandimmunoassaytracedetectors

• continuetheimplementationoftheANAOrecommendationsontheCEFs

• developavesselprofilecapabilityinINTERCEPT

• investigatethefeasibilityofawirelessconnectiontoCustomssystemsforusebyCustomsofficersworkingoutsidetheofficeintheoperationalenvironment

• developjointbreeding,traininganddeploymentarrangementsfortheDetectorDogProgramwiththeAustralianFederalPolice

• balanceCustomsneedfordetectordogswithrequestsforassistancebyoutsideagencies.

Output2 �1

Output �

Facilitation of the legitimate movement of people across the border, while identifying illegal movements


ThisOutputcoversprocessingofpassengers,crewandcraftarrivinganddepartingAustraliabyseaorair,includingtheidentificationofpersonsofinterestconsistentwithimmigration,health,familylawandotherlawenforcement,andnationalsecurityrequirements.

Keyobjectivesin2004–05wereto:

• accessadditionalairlinereservationsystems

• progresstheSmartGatetrialandinformgovernmentoftheoutcomesofthetrial

• enhancecounterterrorisminitiativesinairports

• investigatemethodstofacilitatepassengersthroughinternationalairandseaportswhilemaintainingborderprotection

• developandimplementapassengerenforcementtrainingprogram

• enhancepassengerenforcementoperations.

Keyachievementswere:

• increasedaccesstoflightandpassengerinformationheldinairlinecomputerreservationandcontrolsystemsto85percentofpassengersarrivinginAustralia

• additionalpre-arrivalassessmentconductedagainstindicatorsofpotentialterroristorcriminalactivity

• extensionoftheSmartGatetrialduring2004–05.Fundingof$74.607mwasreceivedinthe2005–06Budgettoimplementautomatedborderprocessingnationally

• improvedfacilitationsuchasstreamlined‘backofthehall’processing,employmentofadditionalstaff,redesignedred/greenexitsandintroductionofmoreefficientqueuingsystems

• deliveryofcomprehensivetrainingpackagestoallstaffandcreationoffocusgroupsatallairportstoimplementcounterterrorisminitiatives

• finalisationofthepassengerenforcementcomponentsoftheCustomsTraineetrainingmaterial

• developmentanddeliveryofadeceptionanddetectiontrainingcourse

• implementationofaNationalAirportPlanningInterface

• developmentandintroductionofanairportplanningmodel.

Afterseveralyearsoflowandnegativegrowthinpassengernumbersbroughtaboutbyglobalterrorismandhealththreats,therewasasignificantgrowthinpassengernumbersin2004–05.Theextentofgrowthinthefirsthalfof2004–05presentedsignificantchallengesforCustoms.Maintainingservicelevelsandeffectivebordersecuritycapabilitywithincreasedpassengernumbersrequiredafocusedandinnovativeapproach.

ThiswasparticularlysoduringtheChristmasperiod.Customsinitiativestobettermanageresources,improveproceduresandusetechnology,ensuredthatreasonablelevelsofpassengerfacilitationweremaintained.

Customscontinuedtoinvestigatetechnologicalimprovementssuchaspassengerscreeninginadvanceofarrivalandbiometrics.ImplementationofthesemeasuresimprovedCustomsdetectionratesandfacilitatedthelegitimatemovementofpeopleacrosstheborderwhileassistingwiththeidentificationofillegalmovements.

CustomsappliesariskassessmentprocesstoidentifypassengerswhomightposeathreattoAustralia.Itreliesoninformationandintelligencefromawiderangeofsourcesandsophisticatedprofilingandanalysistoolstotargetinterventionswhileallowingthevastmajorityofpassengerstoproceedunhindered.

AllpassengersarecheckedagainstimmigrationandlawenforcementalertsystemsbeforetheyarriveinAustralia.Customsalsoincreaseditscapacitytoconductpre-arrivalassessmentagainstindicatorsofpotentialterroristorcriminalactivityto85percentofarrivingpassengers.Thispre-screeningresultedinmoreefficientprocessing.Customsofficialsattheborderconcentratedtheireffortsonthemuchsmallernumberofpassengerswhowerenotpre-screenedorwhowereassessedasbeingahigherrisk.

Perfor

man

ce rep

ortin

g

Out

put

2


Facilitation of the legitimate movement of people across the border

Facilitation rates

Atotalof20.7millioninternationalairpassengerswereprocessedin2004–05,comparedwith18.6millionin2003–04.Theincreaseof11.5percentreflectsagrowthintheinternationalaviationindustryandtourismmarket.

Customshasanagreedgovernmentstandardprocessingtargetthatrequires95percentofairpassengerstobeprocessedwithin30minutesofarrival.

Customsachievedthetarget.Ofthe10.4millionpassengersprocessedinwards,95.1percentwereprocessedwithin30minutes.

Figure21illustratesthepercentageofincominginternationalarrivalsclearedattheentrycontrolpointwithin30minutes,asaproportionofallincominginternationalairpassengers.

ThecontrolpointiswherepassengersaresubjecttoCustomsandImmigrationformalities.Theformulaassumesadelaybetweenaircraftarrivalandthetimeapassengerarrivesattheentrycontrolpoint.Thedelayistailoredforeachairportandvariesbetween12and17minutes.

Challengestomaintainingprocessingratesin2004–05included:

• theintroductionofnewpassengerdutyconcessionthatcameintoeffecton1February2005

• disruptionstotheflowofpassengerscausedbyterminalinfrastructureworks

• reassignmentofstafftomeetnationalpriorities

• theassignmentofnewlytrainedstafftotheprimaryline

• offschedulearrivalofaircraft,particularlyduringpeakhours.

Figure �0: Performance against targets set in the �00�–0� Portfolio Budget Statement – Output �


Facilitate legitimate movement of people

Quality

ProportionofarrivinginternationalairpassengersprocessedthroughtheEntryControlPointwithin30minutesofarrival

95% 95.1%

Percentageofarrivingpassengersprocessedviaadvancepassengerclearanceprocesses

90% 98%^

Quality

Numberofinternationalpassengers(airandsea) Arrivals10305000 10530367Departures10253000 10419944

Numberofinternationalcrew(airandsea) Arrivals878000 921435Departures872000 923767

Prevent illegal movements across the border

Quality

NumberofairpassengerreferralstoImmigrationandHealth Immigration** 266731

Health** 3707

Price $10�.��m $11�.��m



^ FiguressourcesfromtheDepartmentofImmigrationandMulticulturalandIndigenousAffairsandtakenasat30June2005.

Output2 ��

Improvingairportflow

Internationalpassengernumberssignificantlyincreasedincomparisonto2003–04.TheAustralianTourismCommissionbelievesthatthistrendislikelytocontinue.Aspassengernumbersgrow,awholeofairportapproachwillbenecessarytomaintainhighprocessingstandardswithoutplacingunduepressureonanysingleaspectofairportoperations.

Customsiscontinuallyworkingwithairportoperators,airlinesandotherborderagenciestoimprovetheflowofpassengersthroughairports.Thisyear,theworkfocusedonissuessuchas:

• theimpactofgateallocationontimingofpassengerarrivalattheprimaryline

• jointinvestmentinqueuingaidssuchastensabarriersandsignage

• actionbyairportoperatorstoexpandreclaimandexaminationareastobetterprocesspeakhourpassengerloads

• redesigningred/greenexitsinMelbourneandSydneytocreateamoreefficientflowofpassengersatthesecondaryexaminationpoint.

Customsalsoredeployedstafftoairportsandrecruitedadditionalstaffinresponsetoincreasedworkloadpressures.

Figure �1: Proportion of international air passengers processed within �0 minutes of arrival, by arrival airport

Atthesametime,Customsisexploringavenuesforuseofnewtechnology,includingautomatedprocessingsystemsusingbiometrictechnology.

National Passenger Processing Committee (NPPC)

ThemajorroleoftheNPPC,chairedbyCustoms,istodevelopwhole-of-governmentpolicyapproachestoprocessinginternationalairpassengers.ThecommitteealsocoordinatesvariousworkforCommonwealthauthoritiesatairportsrelatedtopassengerprocessingresponsibilities.

Significantissuesaddressedin2004–05includedautomatedborder-processinginitiatives,designationofinternationalairports,internationalhealthregulations,responsetoincreasedpassengernumbersandtheplannedintroductionofnewlargeaircraft.

AmajorissuefacingNPPCisinternationalairlinesandchartersseekingtooperateinternationalservicestoregionalairportsinAustralia.Thishasasignificantimpactonborderagencyresourcingandservicelevels.

Perfor

man

ce rep

ortin

g

Out

put

2


SmartGate

SmartGate,anautomatedpassengerprocessingsystem,hasbeentrialledbyCustomssinceNovember2002.Theprimaryobjectiveofthetrialwastodevelopandintroduceasystemofself-processingutilisingface-recognitionbiometrictechnologytoconfirmidentityandstreamlinethetravellerfacilitationprocess.

Theprovisionof$3.1mtoCustomsinthe2004–05Budgetallowedfurtherresearchanddevelopment.ThefundingenabledCustoms,withtheassistanceofitsstrategicpartnerSAGEMAustralasia,toextendthetrialtoasecondinternationalairportandtoholdersofprototypeAustralianbiometricpassportsandselectedfrequentflyers.

TheexpansionoftheSmartGatetrialtoselectedfrequentflyermembersmorethandoubledtheenrolledusersinthefour-monthenrolmentperiod.Inexcessof225000SmartGatetransactionshavebeenrecordedsincethecommencementofthetrial.

Fundingof$74.607mwasreceivedinthe2005–06Budgettoimplementautomatedborderprocessingnationally.

Identifying illegal movements

Pre-arrival screening of passengers

Customsincreasedaccesstoflightandpassengerinformationheldinairlinecomputerreservationanddeparturecontrolsystemsfromsixairlines

Customs teams – SmartGate system improves passenger facilitation and border security

The Traveller Strategies team in Customs successfully developed an automated border control system using face recognition for identity verification. SmartGate uses the biometric chip in the prototype Australian ePassport to quickly and securely process users through the Australian border.

Withthe$3.1mallocatedinthe2004–05Budget,CustomswasabletoincorporateapassportchipreaderintoanewSmartGatekiosk.ThisallowsSmartGatetousetheimagecontainedwithintheprototypeAustralianePassport,ratherthanstoredimages,formatchingwiththepersonpresentingattheSmartGatekiosk.

CustomsovercamemanychallengestoachievethisoutcomewithinthetimeframessetdownbytheGovernment.On13December2004,CustomsinstalledthenewePassportSmartGateatSydneyandMelbourneairports,nearlyonemonthaheadofschedule.Around2000volunteerQantascrewwereissuedwiththeprototypeePassportfortheirofficialtravel.TheywillbeabletouseePassportSmartGateatSydneyandMelbourneairports.

CustomsworkedinclosepartnershipwiththeDepartmentofForeignAffairsandTradeandtheDepartmentofImmigrationandMulticulturalandIndigenousAffairstotrialePassportSmartGate.

EvaluationsofthenewkioskbyDefenceScienceandTechnologyOrganisationfoundthatfacerecognitionsoftwareusedinePassportSmartGateperformedexceptionallywellwhenusingthesinglepassportimageasthesourceformatchingwiththepersonpresentingattheSmartGatekiosk.

Qantas crewmember uses the

SmartGate kiosk at Sydney Airport.

Perfor

man

ce rep

ortin

g

Out

put

2

attheendof2003–04to16airlinesinMay2005.Customsalsohasaccesstoafurthersixairlinesthroughasimplifiedversionoftheanalysissoftware.Customsplanstoconnecttoafurtherthreeairlinesbytheendof2005.

ThePassengerAnalysisUnitanalysestheinformationincooperationwithCustomsoperationalunitsandotherCommonwealthagenciestoidentifyandreferhighrisktravellersarrivinganddepartingAustralia.AccesstoandanalysisofairlinereservationsystemsdataisanintegralcomponentofCustomspre-arrivalriskassessmentcapability.

In2004–05,Customsmade126requestsforidentityinformationunderss213A(3)orss213B(2)ofthe Border Security Legislation Amendment Act 2002.

Aviation security

AninternalbackgroundpaperaboutpossiblesecurityrisksthatexistedatSydneyAirportin2003attractedmediaattentioninMay2005duetoitsunintendedpublication.ThepaperwasusedasaguidebyCustomsofficersworkingattheairport.Customsissuedastatementoutliningthestatusofthebackgroundpaper,recentimprovementsCustomshasundertakeninairbordersecurityandstatedthatwhereCustomsidentifiedcriminalactivityintheairportenvironment,itadvisedtheresponsibleagencies.

Customs teams – improving air border security

Customs plays an integral role at Australia’s international airports facilitating passengers and cargo into and out of the country, and monitoring and protecting the security of tarmacs around Australia. Brisbane Airport is one of Australia’s international airports that has a specialised team of officers dedicated to air border security.

Prioritiesaretopreventanddetecttheimportingofillegalgoodsintothecountrythroughconcealmentonaircraft.

Theteamdoesthisbygatheringintelligencefromlocal,interstateandinternationallawenforcementagenciestoensureCustomsresourcesareconcentratedonriskassessedtargets.Byexchanginginformationwithotheragenciesabroaderviewofconcealmentmethodsandtrendsisalsoobtained.

Allairbordersecurityofficersarecertifiedinaircraftsearchthroughanintensivetrainingcoursecoveringthetheory,practicalandsafetyissuesofsearchingdifferenttypesofaircraft.A100percentaircraftsearchmayinvolvethecompletedismantlingofvariousinternalstorageareas,includingthetoiletandkitchenfacilities.Technologyandtoolsusedinthesesearchesincludeportablevideoequipment,telescopicmirrorsforsearchinginaccessibleareas,narcoticdetectionandidentificationkits,closedcircuittelevisionsurveillanceandtheCustomsfirearmsandexplosivesdetectordogs.

Adam Crosby, Customs officer from the air border security

team at Brisbane Airport.

Output2 ��


Advance Passenger Processing enhancements

InJanuary2003,legislationwasintroducedmakingitmandatoryforairlinesservingAustraliatoprovidetheDepartmentofImmigrationandMulticulturalandIndigenousAffairs(DIMIA)andCustomswithinformationonallpersonstravellingtoAustralia.

AdvancePassengerProcessingwasintroducedinJanuary2004.Sincethencrew,transitingpassengersandSpecialPurposeVisaholdershavebeenprocessedwithAdvancePassengerProcessing.TheprocessingofpersonsenteringbyseaincludingpassengersandcrewofcruiseshipswerealsoprocessedunderAdvancePassengerProcessing.

InacollaborativeeffortbetweenCustomsandDIMIA,inFebruary2005,thearrivalprocessingofaircrewwasstreamlinedtoallowthemtobeprocessedbypassportnumber.ThisresultedinasignificantreductioninthenumberofreferralstoDIMIAforsecondarychecking.


Review of aviation security

CustomsisoneofseveralgovernmentagenciesparticipatinginareviewbeingconductedbytheRtHonSirJohnWheelerJP,DL.Thereviewwillexaminethethreatfromseriousandorganisedcrimeatairports,theintegrationofground-basedsecurityandlawenforcementarrangementsandtheadequacyoftheexistingsecuritymeasures.

The arrival of the A��0 aircraft

QantasandotherairlinesintendtointroducetheAirbusA380aircraft.OntheAustralianroute,theaircraftwillhaveacapacityofover500andwillincreasethevolumeofpassengersarrivingattheentrycontrolpointatonetime.ThefirstA380flightsintoAustraliaareexpectedinthesecondhalfof2006.CustomsisincreasingstaffinglevelsatairportsintheleaduptoA380arrivalsasashort-termresponse.Longer-termsolutionssuchasautomatedborder-processingtechnologywillbeneededtomaintainprocessingstandards.

Anthony Clark, Compliance Assurance 4 team, Sydney, checking cargo at an aircraft.

CustomshasestablishednewarrangementswiththeGovernmenttoenablefundingtobevariedtotakeintoaccountchangesinthevolumeofpassengersbeingprocessedandtheproportionofpassengersbeingprocessedthroughtheautomatedborder-processingtechnology.ThiswasakeyoutcomeoftheFinancialHealthReviewundertakenbyErnstandYoung.

Objectives for �00�–0�

• developtheuseofbiometricsforanautomatedborderprocessingsystemtodealwithlargerpassengernumbers

• developawhole-of-governmentstrategyforthedeliveryofgovernmentregulatory

Customs teams – Customs prepares for Melbourne �00� Commonwealth Games

A major challenge for Customs officers in Victoria over the next 1� months will be preparing for the Melbourne �00� Commonwealth Games. Approximately �0 000 international visitors, including 10 000 Games Family Members, are expected for the Games which will be held from 1� to �� March �00�.

CustomsprimaryroleswillbetosmoothlyprocesspassengerandcargoassociatedwiththeGames,topoliceGames-relatedintellectualpropertyrightsandtomaintainbordersecurity.

CustomshasplannedfortheeventoverseveralyearsandwillapplythelessonslearnedfromitsexperiencewiththeSydneyOlympicsin2000.PreparationsincludetrainingofstaffacrossAustraliaaswellasdeploymentofadditionalstaffinMelbourneduringtheGames,significantlyincreasingclosedcircuit

Output2 ��

Perfor

man

ce rep

ortin

g

Out

put

2

Melbourne airport.

televisionandtracedetectioncapabilitiesatinternationalairports,enhancingdigitalsignageandstreamliningimportsandexportsprocessesforcompetitors.

CustomswillcontinuetoworkcloselywiththeM2006OrganisingCommitteeanditsagents,airportoperators,VictoriaPolice,AustralianFederalPoliceandotheragenciestosupportthesuccessoftheGames.

servicesthatsupportincreasingpassengernumbersandtheintroductionofnewlargeaircraft

• increaseairbordersecuritycapabilityandcapacity

• implementbusinesschangeforpassengerenforcementoperationstosupporttheintroductionoftheenhancedpassengerassessmenttools

• introducelegislationtoimprovethesanctionregimeinthepassengerenvironment

• implementanygovernmentdecisionsarisingfromthereviewsofaviationandmaritimesecurity.


Output �

Civil maritime surveillance and response


ThisOutputcoverstheprovisionofairandmarinecivilsurveillanceandresponseservicestoanumberofgovernmentagencies.TheaimoftheOutputistodetect,reportandrespondtopotentialoractualnon-compliancewithrelevantlawsincoastalandoffshoreregions.AprincipalproviderofcivilcoastalsurveillanceisCoastwatch,aDivisionofCustoms.

InterceptionofprohibitedorrestrictedgoodsresultingfromspecificcivilmaritimesurveillanceandresponseoperationsisreportedunderOutput1.

Keyoperationalobjectivesin2004–05were:

• furtherdevelopmentofawhole-of-governmentapproachtoCoastwatchoperationalactivityandinfrastructure

• supportingthelong-termsustainabilityofaneffectivecivilmaritimesurveillanceandresponsecoordinationservice,throughthecapabilitydevelopmentandinfrastructureenhancementinitiativesthatwillbeinherentinthemaritimesurveillancecontractsthatwilloperatefrom2007

• promotingcloserrelationshipsandimprovedcooperation,communicationandinformationsharingwithclientagencies

• providingeffectivemaritimeresponsetoknownand/orsuspectedbreachesoftheAustralianborderandassistinthedeliveryofaneffectivenationalcivilmaritimesurveillanceandresponseprogram

• providingapproximately2400dedicatedvesselseadaysayeartotheNationalCivilMaritimeSurveillanceandResponseProgram

• providingsupporttotheTaskforceonOffshoreMaritimeSecuritybyprovidingexpertise/staff

• providingregulararmedpatrolstoprotectAustralia'ssovereigninterestsandvaluablefishresourcesintheSouthernOcean.

AsaresultofDecember2004decisionstheGovernmentformedtheJointOffshoreProtectionCommand(JOPC),anadditionalobjectivewasadded:

• refineandimplementtheorganisationalandoperationalarrangementsforJOPCandassociatedGovernmentinitiatives.

Keyachievementsin2004–05were:

• openingofJOPCHeadquartersinMarch2005

• coordinationoffouraugmentedsecuritypatrolsbytheNationalMarineUnitandtheAustralianDefenceForce

• releaseandevaluationofresponsetorequestfortenderfortheprovisionofsurveillanceservicesbeyondJuly2007

• fullintroductionofCoastwatchRiskAssessmentMethodology(CRAM)

• commencementofaHighFrequencySurfaceWaveRadartrialintheTorresStrait

• conductoffivearmedpatrolsintheSouthernOcean.

Keyperformanceindicatorsaresetoutinthe2004–05PortfolioBudgetStatements.Figure22providesanassessmentofCustomsperformanceagainsttheseindicators.Furtherperformanceresultsaredetailedinthesectionstofollow.

Defence resources received free of charge

GovernmentagenciesundertakesurveillanceoftheAustralianExclusiveEconomicZone(AEEZ)withintwodistinctareasofoperation.Inthenorthandnorth-westofAustralia,DefencehastheleadinthedeterrenceofunauthorisedboatarrivalsseekingtoenterAustralianwaters.ThisisreferredtoasOperationRelexII.

ElsewhereintheAEEZ,Customsistheleadagency,andDefenceoperatesinsupportunderthecodenameOperationCranberry.TheJOPCassumedcommand,onbehalfofDefence,ofOperationsRelexIIandCranberry.

WithintheRelexIIareasofoperation,DefenceassetscontinuetoidentifyeventsofinteresttoCoastwatchclientagencies,reportthemtotheCoastwatchNationalSurveillanceCentreandrespondwhereappropriate.

Output3 ��

Figure ��: Performance against targets set in the �00�–0� Portfolio Budget Statement–Output �


Quality

Numberofinterceptionsofsuspectillegalentryvessels(SIEVs)+ ** 0

Numberofapprehensionsofforeignfishingvessels(FFVs)+ ** 203

NumberoflegislativeforfeituresofFFVs+ ** 178

Numberofsuspectunlawfulnon-citizens(SUNCs)interceptedbysea(includingships’crew)

** 0

Numberofillegal,unregulatedandunreported(IUU)vesselssightedandidentifiedintheAustralianExclusiveEconomicZoneintheSouthernOcean

** 0

NumberofIUUvesselsboardedintheSouthernOcean ** 0

NumberofIUUvesselsapprehendedintheSouthernOcean ** 0

Quantity

Aerialsurveillancecoverage(squarenauticalmiles)##

CoastwatchcontractedaircraftandRoyalAustralianAirForce(RAAF)assets 148m 139.26m

Coastwatchcontractedsatellite 4.8m 4.86m

Highfrequencysurfacewaveradar ^ 1.50m

Total 145.62m

SortiesflownbyCoastwatchcontractedaircraft ** 4425

AerialSurveillance(flyinghours)

Coastwatchcontractedaircraft 21145 20520

RAAFP3Orion~ 250 21.5

Total 21 395 20 542

Marinesurveillanceandresponse(vesselseadays)

RANFremantleClassPatrolBoat 1800 582

Customsoceangoingvesselsgreaterthan12metres 2400 2372

Total 4 200 2 954

SouthernOceansurveillance(vesselseadays) 170-190 196

Price $�1�.��1m $�0�.��m

*Targetsmaybeperformancetargets,serviceleveltargetsorestimates.


+TotalnumberofinterceptionsbyCustomsandtheAustralianDefenceForce.

##Thefigureforsquarenauticalmilespatrolledisanindicativefigurederivedfromastandardformulathatincorporatesaveragespeedofadvance,timeontaskandsurveillancesweepforeachtypeofaircraft;andtheproportionoftimeontaskspentinvisualorradarmode;asafactorofthenumberofhourseachaircrafttypeundertooksurveillanceduringtheperiod.

^Thehighfrequencysurfacewaveradartrialcommencedinthesecondhalfof2004–05withacoverageofsome10000squarenauticalmilesofadiscretevector,intheapproachtotheTorresStrait,eachday.

~Thetargetisbasedonalong-standingDefencecommitmenttoCustomsforthecivilmaritimesurveillanceprogram.ResourcesforAustralia’scivilmaritimesurveillanceprogramarealsoprovidedbyDefencethroughOperationRelexII.Thehours/vesselseadaysarecostedinaccordancewithratesprovidedbyDefence.

Note:TheAustralianDefenceForcecommitmenttoOperationRelexIIisnotreflectedinthereportingofsquarenauticalmilespatrolled,RoyalAustralianNavyFremantlePatrolBoatdays,andRAAFP3Orionhours.

Perfor

man

ce rep

ortin

g

Out

put

3


Foraccountingpurposes,theDefenceresourcesdeployedformaritimesurveillanceandresponsewithintheRelexIIareasofoperationarereportedagainsttheDepartmentofDefencePortfolioEstimatesandAnnualReport.Defenceassetsundertakingidenticalactivitiesinthenon-RelexIIareasoftheAEEZ,underOperationCranberry,arereportedasResourcesProvidedFreeofChargewithinOutput3oftheCustomsPortfolioEstimatesandAnnualReport.

WhenDefenceactivitiesunderOperationsRelexIIandCranberryareconsideredtogether,DefenceismakingasignificantcontributiontotheCivilMaritimeSurveillancePrograminexcessofthe1800Fremantle-classdaysand250P3-COrionhoursnotionallyallocatedeachyear.

Maritime surveillance

Thetargetforcivilmaritimesurveillancecoveragefor2004–05was145.62msqnm.Theshortfallof4.7percentcanbeattributedtoanumberoffactorsincluding:

• aircrewflexibilitywithinthefixedwingcontractor’spoolofstaff

• unscheduledmaintenanceonsomeoftheaircraft

• somehighprioritysurveillanceoperationalactivityrequiringshorterflightdurationsinparticularareas

• surveillancetaskingofP3-COrionswithintheOperationRelexIIareaofoperationoftheAEEZ.

Coastwatchworkscloselywithitssurveillancecontractorstominimisetheimpactofanycrewinglimitationsandtoensureobligationstohighpriorityclienttaskingaremet.

Calculation of surveillance coverage

Thefigureforsquarenauticalmilespatrolledisderivedfromastandingformulathatincorporates:

• averagespeedofadvance

• timeontaskandsurveillancesweepforeachtypeofaircraft

• theproportionoftimeontaskspentinvisualorradarmode.

Thesurveillancecoveragefigureisindicativeonly.AmoreaccuratefigurecannotbederivedaspreviousCoastwatchsystemshavenotbeenabletoassessaccuratelytheimpactofsuchfactorsastransittimestoandfromplannedsurveillanceareas,targetinvestigationfactorsandactualtimeontaskspentinvisualorradarmode.

ThedevelopmentoftheCoastwatchCommandandSupportSystemandsubsequentenhancementstothesystemprovidedmoreaccurateandcomprehensivedata,particularlytheabilitytogiveamoreaccurateassessmentoftheimpactoftransittimeonsurveillancecoveragefigures.

TheintroductionoftheSurveillanceInformationManagementSystem,inconjunctionwiththenewsurveillancecontractsinJuly2007,willprovidefurtherdataontheimpactonsurveillancecoverage.Forthepurposesofyear-on-yeartrendanalysis,Customswillcontinuetoprovideatotalsurveillancecoveragefigureusingthesameassumptionsasinpreviousyears.

Customs Officer, Tracy Coutts at the

National Surveillance Centre.

Coastwatch risk assessment methodology

CoastwatchhasdevelopedandimplementedaCommonRiskAssessmentMethodology(CRAM).EachofCoastwatch’smajorclientscontributetoCRAM:

• AustralianFisheriesManagementAuthority

• DepartmentofImmigrationandMulticulturalandIndigenousAffairs

• DepartmentoftheEnvironmentandHeritage

• AustralianQuarantineandInspectionService

• GreatBarrierReefMarineParkAuthority.

CRAMwasdevelopedtoprovideclientswithariskassessmentprocessthatpermitsallclientriskstobeconsideredagainstacommonunitofmeasurement.ThesescoresguidethestrategicplanningofCoastwatchsurveillanceflightsandinformthenatureandfrequencyofsurveillancetobeprogrammed.

TheoutputfromCRAMisacalculatedratingpriorityforeachclientinthemaritimeareassurroundingAustralia.Thisisachievedbyidentifyingclients’area-specificrisks,applyingaseverityassessmenttoweightedfactors(economic,environmentalandsocial)foreachidentifiedrisk,togenerateaconsequencevalue.Thelikelihoodoftheriskoccurringisthen

assessedandappliedtotheconsequencevaluetodeterminetheriskscore.Allclientriskscoresforanareaareaddedtoderiveanareariskscore,orCRAMscore,whichcanbeusedasthebasisonwhichdeploymentsofCoastwatchassetscanbeprioritised.CRAMisupdatedquarterlytoreflectchangesinthreats.

Use of satellites for surveillance

Coastwatchfurtherexaminedtheuseofsatellitesinmaritimesurveillance.DefenceScienceandTechnologyOrganisationandDefenceImageryandGeospacialOrganisationwerecloselyconsulted.Theexaminationfoundthatsatelliteshavelimitationsindetectingandidentifyingsmallertargets,particularlyinhightrafficsurveillanceareas.Longperiodsofheavycloudcoverremainasignificantimpedimenttoopticalsatellites.Satellitesare,however,avaluabletoolinareasoflowvesseltrafficwheretargetvesselsarelarger.

Coastwatchusesradarsatelliteswithgoodeffectinareaswheretherequirementistolocaterelativelylargevessels,typicallysteeltrawlersinexcessof30metres,andtomonitorvesselsmovementsoveranumberofdays.SatellitesarealsousedbyCoastwatchinareassuchasCocos(Keeling)Islands,ChristmasIslandandotheroffshoreareas.

FollowingthesigningofatreatybetweenAustraliaandFranceoncooperationinthemaritimeareasintheSouthernIndianOcean,CoastwatchcontractedaFrenchcompanytoprovidesatellitecoverageoftheHeardandMcDonaldIslandExclusiveEconomicZone.ThesatellitesprovideimageryrepresentingtotalcoverageoftheHeardandMcDonaldIslandExclusiveEconomicZoneoverafortnightlyperiod.Thisyear,thesesatellitesprovidedcoverageequivalentto4.86msqnmofAustralia’sMaritimeZones.

High frequency surface wave radar (HFSWR)

InconjunctionwithDefence,CustomsisundertakingatrialtoevaluatetheeffectivenessofaHFSWRsysteminimprovingsurveillancecoverageofoffshorehigh-threatapproachestoAustralia.

Coastwatch Dash 8.

Perfor

man

ce rep

ortin

g

Out

put

3

Output3 �1


TheHFSWRcandetectsurfacevesselsandlow-flyingaircraftbeyondthevisiblehorizon,unlikeconventionalradarsthatarelimitedtoline-of-sightoperations.TheAustralianversionofthissystemisaderivativeoftheJindalee(over-the-horizonradar)researchandhasthepotentialtodeliver24-hourwide-areacoastalsurveillanceofaircraft,shipsandboatstravellingintheTorresStrait.

Thetrialwilltestandevaluatethefuturesurveillancepotentialoftheradar,usingittocomplementothersurveillanceassetsandsystems.

A440mreceiverarrayisonDauanIslandinthenorthernTorresStrait.ThetransmitterisontheuninhabitedKoeyNgurtai(Pumpkin)Island,tothenorthofBaduIsland,inthemiddleofTorresStrait.

TheGovernmentsignedIndigenousLandUseAgreementswiththeDauanandBaduIslandcommunitiesinFebruary2004.Underthevoluntaryagreements,localcommunitieswereprovidedwithemploymentopportunitiesduringthepreparationofthesitesandduringtheconstructionphase.Inaddition,severalresidentswillactascaretakersoftheseremotesites.

TheradararraywashandedtotheCommonwealthforthecommencementoftheoperationalphaseofthetrialinFebruary2005

Unmanned Aerial Vehicle trial

Aspartofits2004electioncommitments,theGovernmentallocatedfundingof$0.6mforatrialbyCustomsofasmallsizedlongenduranceunmannedaerialvehicle.

ThetrialwilltestthesuitabilityofthetechnologyformaritimesurveillanceandreportingarisingfromCoastwatchtargeting.Theunmannedaerialvehiclewillbedeployedtoidentify,verifyandvalidatetargetdataderivedfromtheHFSWRandothersources.

CustomsisalsoworkingcloselywithDefenceinsupportofitsimplementationoftheGovernmentdecisiontotrialthedeploymentofanunmannedaerialvehicleintheNorthWestShelfarea.

Maritime surveillance contracts

CustomsisundertakingatenderprocesstoreplacecontractsfordeliveryofaerialsurveillanceofAustralia’smaritimezoneswhichexpireon30June2007.

Tendersweresoughtfortwoservices.ServiceAincludessurveillanceservicesovertheinshoreandoffshorezonesoftheAEEZandremoteareas,complementedwherefeasiblebyawide-areasurveillancecapabilityforusepredominantlysouthoftheTropicofCapricorn.ServiceBcatersforprovisionofhelicopterservicesfortheTorresStrait.

Therequestfortenderfortheservicesforecastsanongoinginvestmentinborderprotectionapproaching$1bover12years.

ItisanticipatedthatthesuccessfultendererforServicesBwillbeannouncedinJuly2005andforServiceAinlate2005.

Joint Offshore Protection Command

On20July2004,theGovernmentestablishedtheTaskforceonOffshoreMaritimeSecurity,ledbytheDepartmentofthePrimeMinisterandCabinet.ItcomprisedmembersfromDefenceandCustoms,andconsultedwidelywithgovernmentagenciesandvariousindustryrepresentativesinbothAustraliaandoverseas.

InDecember2004,thePrimeMinisterJohnHowardannouncedanumberofinitiatives,

Figure ��: High Frequency Surface Wave Radar proposed coverage

includingtheestablishmentoftheJointOffshoreProtectionCommand(JOPC),tofurtherstrengthenAustralia’soffshoremaritimesecurity.

UndernewJOPCarrangements,CustomsretainsresponsibilityforcivilmaritimesurveillanceandregulatoryrolesandtheAustralianDefenceForce(ADF)takesonresponsibilityfor:

• offshorecounterterrorismprevention

• interceptionandresponsecapabilitiesandactivitiesincludingtheprotectionofoffshoreoilandgasfacilities,and

• offshoreinterceptionofships.

JOPCusesassignedCustomsandADFassetstoexecuteaparticularoperationand,attheendoftheoperation,returnscontroloftheassettotheADForCustoms.AssignedassetsareoperatedinaccordancewithRulesofEngagementpromulgatedbytheChiefoftheDefenceForceandbytheCEOofCustoms.

JOPCtasksinclude:

• operationsandexercisessuchasaugmentedsecuritypatrolsandtheoffshoreinterceptionofships

• developing,implementingandmanaginganAustralianMaritimeIdentificationSystem

• developingcommandandcontrolarrangements,especiallyforanincidentthatbecomesaterroristthreat

• liaisingwithforeign,CommonwealthandState/Territorygovernmentsandagencies,andrelevantindustrysectors.

AJOPCOffshorePowersLegislationStudyteamconvenedinJune2005toundertakeaprojectseekingclarificationandfurtherdevelopmentofthelegalauthoritytoundertakecounterterrorismmeasuresinoffshoreareas.TheStudyisheadedbyProfessorStuartKaye,DeanofLaw,UniversityofWollongongandcompriseslegalandoperationsrepresentativesfromboth

Customs and Defence team – Joint Offshore Protection Command

On �0 March �00�, the Minister for Justice and Customs and the Minister for Defence formally opened the Headquarters of the Joint Offshore Protection Command (JOPC). The Headquarters is co-located with Customs Coastwatch in Canberra and comprises staff drawn from both Customs and the Australian Defence Force. A number of staff are in the north of Australia.

TheCommandhasajointaccountabilitystructure,beingresponsibletotheChiefoftheDefenceForceforitsmilitaryfunctionsandtotheCEOofCustomsforitscivilfunctions.Tosupportthisapproach,theDirector-GeneralofCoastwatch,aRearAdmiralsecondedfromtheRoyalAustralianNavy,isalsotheCommanderofJOPC.JOPCoperatesunderaDirectivetotheCommanderofJOPCsignedbyboththeCEOCustomsandtheChiefoftheDefenceForce.

TheCommanddrawsonthefullrangeofDefenceandCustomscapabilitiesandmakesthebestuseofavailableresourcestoachieve

theimplementation,coordinationandmanagementofoffshoremaritimesecurity.ItisanimportantstepinensuringthatanyterroristthreattoAustralia’smaritimeassetsandcoastlinecanbedetectedanddefeated.

Members of the JOPC team, left to right:

John McAree, Conor Annesley, LCDR Mark Sorby,

Ian Polson, Group Captain Ian Pearson.

Output3 ��

Perfor

man

ce rep

ortin

g

Out

put

3


DefenceandCustoms.TheStudywillprovideitsconclusionsandrecommendationstotheCommanderJOPCby30August2005.

Augmented security patrols—Timor Sea and North West Shelf

Theobjectiveofaugmentedsecuritypatrolsisto:

• increasethelevelofsecuritywithinthepatrolareasofAustralia’soilandgasfieldsintheTimorSeaandNorthWestShelf

• deterthosewhomaybecontemplatingorplanninganattackontheseoffshoreassets.

FouraugmentedsecuritypatrolswereconductedintheTimorSeaandNorthWestShelf.AssignedsurfaceassetscamefromCustomsandDefence,supportedbydesignatedCoastwatchaircraftflights.AffectedindustrymemberswerealertedthroughtheAustralianPetroleumProductionandExplorationAssociation.

Thepatrolssuccessfullytestedcommunications,proceduresandprotocolsbetweenCoastwatchandDefenceassets,andwithoilandgasinstallations.

Australian Maritime Identification System (AMIS)

AkeyproblemidentifiedbytheTaskforceonOffshoreMaritimeSecuritywasthelackofcentralisedcoordinationandintegrationofallinformationrelevanttothemaritimedomainheldbyanumberofCommonwealthandStateagencies.

JOPCproposestoestablishAMISasamechanismforseeking,analysingandmanaginginformationonvesselidentity,crew,passengers,cargo,location,course,speedand

intendedportofarrival.TheestablishmentofAMISwillprovideacentrallycoordinatedandintegratedapproachtothegatheringofthemaritimeinformationthatisalreadycollectedbyanumberofAustralianFederal,StateandTerritoryagencies.ThiscollectionofinformationonknownandforecastvesselmovementsandthemanagementofthedatawillassistinprovidingmoretargetedsurveillancewithinAustralia’smaritimezones.

Operations and Program Advisory Committee (OPAC)

OPACistheseniorconsultativebodyprovidingwhole-of-governmentadvicetotheDirectorGeneralCoastwatch.OPACcomprisesseniorrepresentativesfromtheAustralianFisheriesManagementAuthority,theAustralianFederalPolice,AustralianMaritimeSafetyAuthority,theAustralianQuarantineandInspectionService,theDepartmentoftheEnvironmentandHeritage,theDepartmentofDefence,theDepartmentofForeignAffairsandTrade,theDepartmentofImmigrationandMulticulturalandIndigenousAffairs,theDepartmentofIndustryTourismandResources,theGreatBarrierReefMarineParkAuthorityandCustoms.ChairedbyDirectorGeneralCoastwatch,OPACmeetsquarterly.

StrategicdirectionsandservicedeliveryoftheCivilMaritimeSurveillanceProgramaremajorissuesdiscussed.OPACalsoreviewsoperationaloutcomesandprovidesadviceontheextenttowhichtheymeettheneedsofindividualagencies.

OPACalsooverseestheCoastwatchPlanningAdvisorySub-CommitteeandtheRegionalOperationsPlanningandAdvisoryCommittees.

Output3 ��

Figure ��: Summary of suspect illegal entry vessels (SIEVs) and suspect unlawful non-citizens (SUNCs)

�00�–0� �00�–0� �00�–0�

SIEV summary^

Undetected

onshoreunauthorisedboatarrival 0 1 0

offshoreunauthorisedboatarrival 0 2 0

Detected 0 0 0

Total 0 � 0

SUNC summary^

Undetected

onshoreunauthorisedboatarrival 0 53* 0

offshoreunauthorisedboatarrival 0 29 0

Detected 0 0 0

Total 0 �� 0

Crew 0 4 0

^FiguressourcedfromtheDepartmentofImmigrationandMulticulturalandIndigenousAfffairs.

* ThreeoftheseSUNCswerechargedwithpeoplesmugglingoffencesundertheMigration Act 1958.

Figure ��: Selected Coastwatch activities on behalf of other agencies

�00�–0� �00�–0�

Surveillancereports—yachts 455 560

Sightingsreports—environment 79 129

Sightingsreports—animalsinprotectedareas 243sightingsof2286animals

311sightingsof3615animals

Sightingsreports—marinespecies 1318sightingsof18715animals

1361sightingsof15032marineanimals

Searchandrescue(SAR)SARoperationsinvolvingCoastwatchaircraft 41 53

Perfor

man

ce rep

ortin

g

Out

put

3

Maritime response

People smuggling

Therewerenoarrivalsofsuspectillegalentryvesselsduring2004–05,comparedtothreearrivalsinvolving82suspectunlawfulnon-citizensin2003–04(seefigure24below).

Whole-of-government approach

EachCoastwatchflightismulti-taskedtoprovidesurveillanceservicesonbehalfofotheragencies.Forexample:

• peoplesmugglingandprohibitedimportssmuggling

• illegalfishinginterception

• supportofsearchandrescueoperations

• reportsrelatedtotheprotectionofthemaritimeenvironmentandmarineresources.

Coastwatch’sroleinprotectingtheintegrityof

Australia’smaritimeenvironmentincludes:

• identifyingandrespondingtoillegalfishinginAustralianwaters

• detectingandreportingenvironmentalincidentssuchasmarinepollutionandcoastaldegradation

• detectingintroducedmarinepests,andhumanincursionsoncoralreefsandotherprotectedmarineparksandthepotentialquarantine,healthandmarinehabitatthreats

• reportingsightingsofwhales,turtles,dolphinsanddugongstoprotectmarinespecies

• gatheringevidencefortheGreatBarrierReefMarineParkAuthoritytosupportchargesforvesselsoperatingillegallyinprotectedareasofthePark.

Activitiesin2004–05aredetailedinfigure25.


Foreign fishing in Australia’s maritime zones

Theincreasingpresenceofforeignfishingvessels(FFVs)inAustralianwatersposesamulti-dimensionalthreat.Aswellasdepletingfishstocksandcreatingsignificantenvironmentalhazards,foreignvesselssometimesmakelandings,potentiallyconveyingexoticpestsanddiseasestoAustralia’sshores.

ThenumberofactionstakenbyCustomsandNavyvesselsagainstFFVsincreasedby67percentcomparedtothepreviousyear:

• 203FFVswereapprehended(134in2003–04)

• 178weresubjecttolegislativeforfeitureofcatchandequipment(83in2003–04)

• 50werecautioned(42in2003–04).

Operation Clearwater

OperationClearwater,aconcentratedoperationaimedatdetectinganddeterringforeignfishingvesselsintheGulfofCarpentariaandinthewaterstothenorthofArnhemLand,wasconductedduringtheperiod11–21April2005.

ItinvolvedthecombinedresourcesofCustoms,theAustralianDefenceForce,AustralianFisheriesManagementAuthority(AFMA),AustralianQuarantineandInspectionService,andtheDepartmentofImmigrationandMulticultural

andIndigenousAffairswithsupportfromtheNorthernTerritoryHealthDepartmentandtheNorthernTerritoryPolice.

TwoIndonesianofficialsfromtheIndonesianDirectorateGeneralofCustomsandtheDirectorateofFishResourcesSurveillancealsoparticipated.

Duringtheoperation,CustomsvesselsandRoyalAustralianNavypatrolboatsapprehended29illegalfishingboatsand258crew.Fifteenboatswerelargevesselsknownasiceboatswithacapacitytostorefreshfish.

AFMAidentified65crewwhowerechargedwithoffencesundertheFisheries Management Act 1991and/ortheCriminalCode.Penalties

Figure ��: Foreign fishing vessel action �000-01 to �00�–0�

FiguresandcommentaryonrateofCustomsNationalMarineUnitandDefenceresponsestoFFVs.

Figure ��: Location of Operation Clearwater

imposedon35crewmemberswhoweredealtwithbythecourtsin2004–05rangedfromanaggregatefineof$90000handedtothemasterofalargeiceboat,toatwoyear$200goodbehaviourbond.

Ofthe29vesselsapprehendedduringtheoperation,twoweredestroyedbyfirewhileatsea,oneduetoitsunseaworthyconditionandtheotherduetoquarantineconcerns.

At30June2005,19oftheremaining27vesselshadbeendestroyedandeightweredetainedinportawaitingadecision.

Duringthisoperationofficersseizedapproximately:

• 12927kgfishproducts

• 2000kgbait

• 13910hooks

• 87584metresoflongline

• 295kgofsharkfin

• 152additionalsharkpieces.

OperationClearwaterisanexampleofthebenefitsofawhole-of-governmentapproachtoamajorthreattothenation’snaturalresourcesandisfurtherevidencethatAustralia’sborderprotectionarrangementsareworkingwell.

Support to the Australian Quarantine and Inspection Services (AQIS)

TheobjectiveofquarantinecontrolsinmaritimeareasistopreventtheintroductionofexoticdiseasesorpeststoAustralia.Ofparticularrelevancetothecivilsurveillanceprogramistheneedforearlydetectionandidentificationofpotentialoractuallandingsbyoverseasvesselsatremoteplaces.

CoastwatchprovidesAQISwithinformationobtainedduringsurveillanceflightsranging

frominternationalvesselstravellingclosetothecoastline,tovesselsdischargingballastandwasteatseawherethatwastecoulddrifttoshore.AQISisadvisedofallinterceptionsofoverseasvesselssuchasFFV’sandSIEVs.

TheCustomsofficeonThursdayIslandworksparticularlycloselywithAQIStoachievetheobjectivesoftheNorthernAustraliaQuarantineStrategyintheTorresStraitandCapeYorkarea.Thequarantinerelatedactivitiesundertakeninthisregionrangefrom:

• targetedsurveillanceforearlywarningtoAQISofpotentialquarantinethreats

• transportingAQISofficersbyCoastwatchhelicoptertomonitorfruitflyandscrewworm,and

• conductingplantandanimalsurveys.

National Marine Unit

CustomsNationalMarineUnitprovidesmaritimeresponsetoknownand/orsuspectedbreachesoftheAustralianborder.

TheNationalMarineUnitiscommittedtoprovideabout2400vesselseadaysayeartotheNationalCivilMaritimeSurveillanceandResponseProgram.ThistargetisachievedbyeachoftheeightAustralianCustomsBayClassvesselscompletingaround300vesselseadaysayear.

AustralianCustomsvessels(ACVs)conductpatrolsaroundtheentireAustraliancoastlineandouttothe200nauticalmilelimitoftheAEEZ.InresponsetoconcentratedactivitylevelsinNorthernAustralia,anumberofvesselscontinuallypatrolcoastalandoffshoreareasbetweentheKimberleyCoastandTorresStrait.

Perfor

man

ce rep

ortin

g

Out

put

3

Output3 ��


KeyachievementsintheNationalMarineUnit

ACVsachieved2372vesselseadays:

• 60percentwasachievedinNorthernAustralia

• 30percentwasachievedonpatrolsoftheEastCoast

• ninepercentontheWestCoast

• onepercentwasachievedonpatrolsoftheSouthernCoastline.

TheBayClassfleetcompleted746strategictaskingsand91tacticaltaskingsonbehalfofeightFederalandnineStateclientagencies.Thisreflectedanoverallcompletionrateof78percent.TheNationalMarineUnitdidnotcomplete100percentofvesselseadays/tasksduetoeithertacticaltaskstakingprecedenceoverstrategictasksorNationalMarineUnitnotbeinginapositiontoacceptsomestrategictasksbecauseoftheirincompatibilitywithotherconcurrenthighprioritytaskings.

Figure ��: Australian Customs Vessel response activity

�00�–0� �00�–0� �00�–0�

Boardings

FFV^ 388 377 358

SIEV~ 0 2 0

Other# 385 457 105

Apprehensions* 61 65 80

Legislativeforfeitures> 4 40 118

* ApprehensionsbyCustomsMarineVesselsareasubsetofthetotalnumberofapprehensionsshowninFigure22.

# Includesmerchantvessels,Australianfishingvessels,othersmallcraft.

~ Suspectillegalentryvessel

^ Foreignfishingvessel

> Legislativeforfeiture(catchandequipmentseized)conductedunderFisherieslegislation.LegislativeforfeituresshownherewereinitiatedbyCustomsMarineVesselsandareasubsetofthetotallegislativeforfeituresshowninFigure22.

Australian Customs vessel Arnhem Bay.

Perfor

man

ce rep

ortin

g

Out

put

3

Output3 ��

Customs teams – National Marine Unit

The Government provided $��.�m over �00�–0� to �00�–0� to double Customs national marine surveillance and response capacity.

Afterrecruitmentandtrainingofadditionalstaff,theNationalMarineUnitcommencedoperationsatthisincreasedrateofeffortfromOctober2002onward.

ArecentrecruitmentroundforseapositionswasconductedandadditionalseagoingstaffareundergoingtraininginadvanceofjoiningthefleetbeforeJuly2005.Recruitmentisunderwaytofillallvacancies.

Inadditiontoconductingeffectivemaritimeresponsestoknownand/orsuspectedbreachesoftheAustralianborder,thecrewoftheAustralianCustomsVessels(ACVs)haveoccasionswheretheyshowcasetheACVsatopendaysandalsoassistinsearchandrescueoperations.Examplesoftheseactivitiesareasfollows:

Rescue of five Indonesian fishers on Ashmore Islands

InNovember2004,ACVHoldfast Bay wasinvolvedintherescueoffiveIndonesianfisherslocatedstrandedanddehydratedontheremoteAshmoreIslandssituated400nauticalmileswestofDarwin.Thefishershadbecomeseparatedfromtheirvesselandwerewashedashore.Thefishersweregivenmedicaltreatmentandfreshsuppliesoffoodandwaterbeforereturningthemtotheirvessel,whichwaslocatedafewmilesaway.

Rescue of a maxi yacht, crew and passengers off Hamilton Island

InFebruary2005,ACVHervey Bayrescued14passengersandthreecrewfromamaxiyachtdisabledinstrongwindsanddraggingitsanchortowardsrocksonthewesternsideofDentIsland,nearHamiltonIslandresort.TheHerveyBaylauncheditstendersandatowlinewhichwasattachedtotheyachttotowitclearofimmediatedanger,thentoasafeanchorageintheleeofHamiltonIsland.

Vessel Open Days

Customsofficerscontinuedtofosterpublicawarenessoftheimportanceofborderprotectionbyconductinganumberofvesselopendays.

Guidedtours,usuallyheldatboatshows,providedanidealopportunityforthepublictobetterunderstandhowACVsoperateandtheimportantworktheydoforCustomsandotherFederalagencies.

In2005,ACVcrewsconductedguidedtoursoftheACVsattheSanctuaryCoveBoatShowinQueensland,UlladullaBlessingoftheFleetandtheEdenWhaleFestivalinNewSouthWales,andGardenIslandinWesternAustralia.Onaverage800visitorstouredthevesselsperdayateachlocation.Crewmemberswereonhandtoansweramyriadofquestionsrangingfrom“howmanysmugglersdoyouapprehend”to“whattypeoffooddoyouliketocookonboard”.

FeedbackfromthepublicisalwaysverypositiveandACVcrewmembersenjoytheopportunitytoshowcasetheiruniqueworkplace.

ACV CorioBay, Open Day at Ulladulla, New South Wales —

Easter 2005.

Left to right: Crystal Van Hecke, Gary Shrimpton,

Peter Page, Greg Jessop-Pond, Peter Weller and

Commanding Officer, Andrew Belton, onACVHervey Bay.


Securecommunication

AsecurecommunicationsfacilitywasdevelopedusingTransmissionControlInternetProtocolforvoice,videoanddatatransmissionsoversatellite.SecurecommunicationswillbefittedintoallCustomsvesselsduring2005–06.

ReplacementprogramfortheBayClassfleet

OriginallyintroducedintoservicewithausefullifetoCustomsoftenyears,muchoftheCustomsvesselfleethasreached‘half-life’offiveyears.CustomsisplanningforareplacementtotheBayClassfleetthatwillbecapableofcontinuingtocounterexisting,aswellasemergent,threatstoAustralia’sbordersandsovereignty.

Bay Classmaintenanceservicescontract

On15April2005,theBayClassmaintenanceservicecontractwasapproved.ThenewmaintenancecontracttendersoughttoengagethemarketplacewithacontractthatwasmoresuitablefortheoperationsofCustomsandonethatprovidedmaintenancecoveragetotheprojectedendoflifeinCustomsoftheBayClassACVs.Thetransitiontothenewcontractoriscomplete.

DeckmountedweaponsonallBay Classvessels

Inthe2005–06Budget,theGovernmentapprovedfundingof$25.2moverfouryearstoenableCustomsto:

• armallBayClasspatrolboatswithdeck-mounted7.62mmFNHerstalMAG58generalsupportmachineguns

• recruitadditionalcrewtooperatetheweapons

• providetrainingfortheadditionalcrew.

TheincreasedarmamentisintendedtoconvincesuspectvesselstocomplywithdirectionsandwillcontributetothesafetyofCustomsofficers.

ThearmingofthevesselsisalsoessentialtoprovideafullresponsecapabilitybyCustomswhenpatrollingoffshoreoilandgasrigs.

Southern Ocean Maritime Patrol and Response

The2004–05Budgetincluded$89.2movertwoyearstoenableCustomstosetupaprogramofregulararmedpatrolstoprotectAustralia’ssovereigninterestsandvaluablefishresourcesintheSouthernOcean.Thisfundingincluded$5mtotheAustralianFisheriesManagementAuthoritytocoverpost-apprehensioncostsforanyinvestigationsandprosecutionsofsuspectedbreachesoffisherieslaws.

Achievements

FivearmedCustoms/FisheriespatrolswereconductedintheAustralianFishingZonesurroundingtheremoteHeardIslandandMcDonaldIslands.TheaimistoapprehendanyillegalfishingvesseltryingtocatchtheincreasinglyscarcePatagoniantoothfishorcommittingotheroffencesagainstAustralianlaw.

NovesselswereinterceptedfishingillegallyinsidetheAEEZin2004–05.EvidencewasgatheredonbehalfofAustralianFisheriesauthoritiesonseveralvesselsthatwerefishinginConventionfortheConservationofAntarcticMarineLivingResourcesmanagedareas,whennotlicensedtodoso.

On17November2004,followingacompetitivetenderprocess,along-termcontractforaNorwegianvessel,Oceanic Viking,wasfinalisedbetweenCustomsandP&OMaritimeServicesPtyLtd.ThisprovidedtheSouthernOceanMaritimePatrolandResponseprogramwithdedicatedcapabilityutilising:

• a105metrevesselwithafullcomplementofciviliancrewand‘Steamingparty’(additionalsailorscapableofcrewinganapprehendedvessel)

• afullyequippedmedicalfacility

• deck-mounted0.50calibremachineguns

• ateamofspecialisttrainedandarmedCustomsboardingpartyofficersabletoconductyear-roundpatrolsinvirtuallyanyweatherconditions.

WhennotundertakingspecificpatrolsintheSouthernOcean,theOceanic Vikingisavailableforothertaskings.

AustraliaisstrengtheningitslevelofcooperationwithFranceastheeconomiczonearoundtheFrenchterritoryofKerguelenIslandadjoinstheHeardandMcDonaldIslandExclusiveEconomicZone.

SincetheMaritimeCooperationTreatyonSurveillanceintheSouthernOceanenteredintoforceon1February2005,CustomsandFisheriesofficialsfromthetwocountrieshavebeennegotiatingoperational-levelarrangements.JointoperationsintheSouthernOcean,exchangingofficersonpatrolsandcoordinatingsailingplanswillmaximisecoverageforbothFranceandAustralia.

Theywillalsosupportinternationalinitiativestocombatillegalfishinginthisecologicallysensitiveenvironment.OthernationswhoarecommittedtoprotectingSouthernOceanfisheriesincludeSouthAfrica,theUnitedKingdomandNewZealand.

Perfor

man

ce rep

ortin

g

Out

put

3

Output3 �1

From top left clockwise: Ed Harris, Mark Whitby,

Rhys Howcroft and Rod Brett during the medical emergency.

Customs teams – Oceanic Viking crew respond to a medical emergency

On 1� December �00�, an Australian Customs and Fisheries vessel engaged in a race against time to save the life of a Portuguese sailor who fell critically ill on board a fishing ship in the Southern Ocean.

TheOceanic Viking respondedtoamedicalemergencyonboardalicensedSpanishfishingvesseloperatinglegallyininternationalwaters,approximately200nauticalmilessouthoftheAustralianfishingzone.AcriticallyillPortuguesefishermanwasrescuedandtransportedtoRoyalPerthHospitalwherehesubsequentlyrecovered.ThisactionwascarriedoutinaccordancewithAustralia’sinternationalobligationsundertheUnitedNationsSafetyofLifeatSeaconvention.ThefishermanreturnedtoPortugalunderthecareofadoctoron4February2005.

Customs officer Simon Peirce, Southern Ocean Maritime

Patrol and Response program.


FutureSouthernOceanpatrols

The2005–06BudgetprovidedfundingtoextendsurveillanceandthearmedpatrolprogramintheSouthernOceanagainstillegal,unreportedandunregulatedfishinguntilatleastJune2010.Intotal,theGovernmentwillprovidetotalfundingof$201.4mforthisprogramfortheyears2005–06to2009–10.NegotiationsareunderwaytoextendthecontractforthesupplyoftheOceanic Viking.Modificationstothevesselarealsoplannedtoimprovesafetyandoperationalefficiency.


ThenexttwoyearswillposemajorchallengestoCoastwatchandtheNationalMarineUnit.Duringthisperiod,Coastwatchwill:

• furtherrefinetheoperationalandorganisationalarrangementsfortheJointOffshoreProtectionCommandandaugmentedsecuritypatrols

• buildthelinkagesandinfrastructurethatwillunderpintheAustralianMaritimeIdentificationSystem

• undertakethesubstantialtaskoftransitioningtothenewsurveillancecontracts

• continuetoassesstheviabilityofuseofemergingtechnologysuchasunmannedaerialvehicles

• respondtothechallengespresentedbyincreasingandmoresophisticatedforeignfishingincursions,particularlyinAustralia’snorthernwaters.

TheNationalMarineUnitwill:

• fitdeck-mountedweaponsonallACVsandrecruitandtrainadditionalcrewtooperatethisequipmentbytheendof2005

• fitsecurevoiceandemailcommunicationsystemsonallACVs.

AspartoftheSouthernOceanMaritimeSurveillanceandResponseprogram,Customswill:

• renegotiatewithP&OMaritimeServicesPtyLtdalong-termcontractfortheOceanic VikingtocovertheperioduntilJune2010

• extendthecapabilityforundertakingoperationsinnorthernwaters

• coordinatealong-termsailingplanwiththeFrenchgovernmenttoensuremaximumpatrolcoverage

• explorecooperativearrangementswithotherinterestedcountries.

Customs and Australian Fisheries Management Authority officers undertaking boarding training.

Output4 ��

Perfor

man

ce rep

ortin

g

Out

put

4

Output �

Administration of Customs duty and indirect taxes, other border-related revenue collections, and import/export statistics


ToadministerCustomsdutyandindirecttaxes,thisOutputcoversprocessingof:

• allimportedandexportedcargoincludingpostalitems

• itemsenteringandleavingAustraliawithpassengersandcrew.

RelatedactivitycoveredunderthisOutputincludes:

• tariffclassification,originandvaluationservices

• licensing

• realtimeandposttransactioncomplianceactivityrelatedtorevenueprotectionandcollection

• theinvestigationofindustryreferrals

• theadministrationofdrawback,refundandconcessionalarrangementsforimportersandexporters

• investigationsandprosecutionsrelatedtoimportfraudandCustomsdutyevasion.

TheOutputalsoincludes:

• Customs-relatedrevenuecollectionsassociatedwithcraftmovementsandcollectionofthePassengerMovementCharge

• processingandcomplianceactivityrelatedtoimportedandexportedgoodstocollectandvalidateimportandexportstatistics

• theassessmentandcollectionofgoodsandservicestax(GST),luxurycartax(LCT)andwineequalizationtax(WET)andcomplianceactivityassociatedwiththesetaxes

• administrationoftheTouristRefundScheme(TRS).

Keyoperationalobjectivesin2004–05were:

• implementationoftheCargoManagementReengineeringproject

• FreeTradeAgreementnegotiations,legislationandadministrativearrangements

• developmentandimplementationoftheComplianceAssuranceStrategy

• deliveringaneffectiveinvestigationcapability

• redevelopmentoftheTariffConcessions(TARCON)andtheTariffandPrecedentInformationNetwork(TAPIN)computersystems

• legislationandadministrativearrangementstoremovethethreepercentCustomsdutyunderaTariffConcessionOrder

• implementingthenewpassengerandcrewdutyfreeconcessions.


• delivery,implementationandmanagementofthetransitiontotheexportscomponentoftheIntegratedCargoSystemandpreparationforthetransitiontotheimportscomponent

• Thailand–AustraliaFreeTradeAgreementandtheAustralia–UnitedStatesFreeTradeAgreemententeredintoforce

• redevelopmentofTARCONandTAPINcomputersystems

• removalofthethreepercentCustomsdutyunderaTariffConcessionOrder

• implementationofthenewregimeforpassengerandcrewdutyfreeconcessions.


Figure ��: Performance against targets set in the �00�–0� Portfolio Budget Statement–Output �


Collection of revenue

Quality

ElectronicsystemsavailabilitytoCustomsclients 99% COMPILE100.0%(availabilityasaproportionofprimetime) EDIFICE99.9%

EXIT^100.0%ICSEXPORTS#98.7%

TAPIN100.0%

Numberofexternalappealsagainstdecisions:

GrantingofTariffConcessionOrder 10–15 2

Eligibilityfor4thScheduleBy-Law 1–5 1

Quantity

Significantrevenuescollected(includingCustomsduty,GSTcollectedandPassengerMovementCharge)

$7878m(netofGSTdeferred)

$7892m

Numberofcustomsimportentrieslodged Electronic3400000 3473385

Manual22000 23451

Numberofdrawbackapplications 10500–11500 9136

Numberofrefundapplications 23000 31467

Numberofaircargoscreenedfreeconsignments 2250000 2423320

MajordutyconcessionsadministeredbyCustoms

TariffConcessionSystem $440–$480m $548.37m

CheeseandCurdQuota $9–$11m $12.52m

Revenue compliance verification

Quality

Revenueandcomplianceassuranceactivity:

Imports–TotalCustomsvaluesubjecttocomplianceactivityasaproportionoftotalCustomsvaluereported

10% 15%

Exports–TotalFOBsubjecttocomplianceactivityasaproportionoftotalFOBreported

10% 21%

Proportionofdrawbackandrefundsdeliveredin Drawbacks90% 96.4%

accordancewithstandards Refunds100% 99.9%

Proportionofconcessionalarrangementsforimportersandexportersdeliveredinaccordancewithstandards

100% 100%

Numberoffraud/evasioncasesadoptedforprosecution 18–25 17

Quantity

Revenueadjustments

Recoveries ** $7.15m~

Refunds ** $0.17m~

Numberoffraud/evasioncasesadoptedforinvestigation 55–75 72

Price $1�0.��m $1��.��0m



^Customsinformationsystemforprocessingexportentriesandmanifests,EXIT,wasreplacedbyICSExportsinOctober2004.

#ICSExportsistheexportcomponentoftheICSintroducedinOctober2004toreplaceEXIT.

~ ThevalueofCustomsdutyidentifiedfromcomplianceactivity.

Output4 ��

Perfor

man

ce rep

ortin

g

Out

put

4

Figure30excludestherevenueimpactfromcomplianceactivitywhichpreventedillegalproductsfromenteringthemarket.ThedetectionandseizureanddestructionofillegaltobaccoreportedunderOutput1preventedtheevasionof$40.1minrevenue.

Cargo Management Reengineering

Trade modernisation legislation

Thetrademodernisationlegislation,whichsupportsthepolicyandtechnicalinitiativesforCargoManagementReengineering(CMR),comprisesthreeActs:

• Customs Legislation Amendment and Repeal (International Trade Modernisation) Act 2001

• Import Processing Charges Act 2001

• Customs Depot Licensing Charges Amendment Act 2001.

InJuly2004,areportontheimplementationofthetrademodernisationlegislationwassubmittedtotheSenateLegalandConstitutionalLegislationCommittee.

ImportProcessingCharges

ImportprocessingchargeshavebeenupdatedtoreflecttheintroductionoftheimportscomponentoftheCMRproject.Therevised

costrecoveryregimeisdesignedtoprovidegreatertransparencyandcertaintyofcosts.Thechargeshavebeenrestructuredtorecognisethecostdifferencesbetweeneachmodeofimportationandwillalsoincorporatetheprocessingcostsoflowvaluegoodsnotrequiringanentry.

TheamendmentsarecontainedintheImport Processing Charges Amendment Act 2005andtheCustoms Legislation Amendment (Import Processing Charges) Act 2005.

Accredited Client Program

CustomsundertookfurtherconsultationwithindustryontheproposedAccreditedClientProgram.

InMay2005,theGovernmentannouncedthattheAccreditedClientProgramwouldcommenceduring2005–06.Thisprogramisopentohighlycompliantcompaniesandwillallowthemtoreporttheirimportsandexportsmonthlyratherthanreportingeachandeveryconsignment.

TheprogramprovidesanumberofbenefitstoparticipatingcompaniesinreturnforademonstratedcommitmenttoachievehighlevelsofcompliancewithCustomsrequirements.

Figure �0: Revenue collected on behalf of other agencies ($m)*

�00�–0� �00�–0� �00�–0�

Indirecttaxescollectedfromimporters^

GSTcollections# 1991.87 2051.33 2361.62

LCT 1.08 1.25 1.21

WET 3.34 4.78 5.40

Total indirect taxes 1 ��.�� 0��.�� .��

Passengermovementcharge(PMC) 290.58 329.79 363.84

Marinenavigationlevy 45.09 44.04 41.67

Protectionofthesealevy 3.90 4.32 4.68

AQISfees+ 44.71 55.03 56.83

AQISfines~ 1.68 1.10 0.99

Woodlevy 0.80 0.89 0.92

Total � ��.0� � ��.�� .1�

* Figuresonanaccrualbasis.

ÎndirecttaxescollecteddonotincludethevalueofGSTandWETrefundedonbehalfoftheTouristRefundScheme.

# ExcludestheGSTliabilityraisedonimportswhichisdeferredratherthanimmediatelycollected.TheAustralianTaxationOfficeacquitstheseliabilitiesinsubsequentBASstatementsfromimporters.In2004–05GSTdeferredwas$13.6billion.

+ FeescollectedonbehalfofAQIS.Theseincludefeesforentryscreening,HVLVandprocessingfeesplusEFTJEMScollections.Previousfinancialyearshowedquarantineentryfee(EFTJEMS)only.

~ OnthespotfinescollectedonbehalfofAQISincludingthecollectionsofQuarantineInfringementNoticesissued.


Benefitsinclude:

• monthlydeclarationreportingarrangements

• improvedsupplychainsecurity

• reducedlevelsofCustomsintervention

• eligibilityforaccount-basedprocesses(asopposedtotraditionaltransaction-basedprocesses)

• improvementsinCustomsriskassessmentanalysisbecauseofmoretimelyandhigher-qualityinformation.

TheAccreditedClientProgramwillallowparticipatingcompaniestomakeamid-monthpaymentofdutybasedonanestimateofimports,withareconciliationpaymentinthemiddleofthefollowingmonth.

Theprogramwillberolledoutinthefirsthalfof2006,butsomesystemchangesmayberequiredafterCMRismoreestablished.

Cargo Management Reengineering – Integrated Cargo System (ICS)

TheCMRprojectteamhasachievedmajormilestonesthisyear.TheprojectinvolvesthedevelopmentofanICS,combiningintoonecoherentandtechnologicallymodernsystem,thenumerouscargosystemsthathavebeendevelopedoverthepast30years.

TheintroductionofICSwillenhancecontrolsoverimports(asithasforexports)inmanyareasincluding:

• mandatoryelectronicvessel/aircraft/cargoreportingwithinprescribedtimeframes

• intransitreporting

• anewrequirementfordeclarationoflow-valueimportstoCustoms.

ThesechangesalsosupporttheGovernment’senhancedsecuritymeasuresforimportandexportcargo.

ThenewsystemwillincreasetheabilityofCustomstoassesstherisksofindividualcargoconsignments,toquicklydeliverlowriskconsignments,andtoidentifyandexaminesuspectcargo.

ExtensiveconsultationwithindustryandwithCustomsstafffortheICSsystemincludeda

comprehensivecommunicationscampaign.PracticalinformationwasprovidedonkeyaspectsofCMR,suchastheICStestplans,datesfordifferentphasesoftheICS,informationonsoftwarerequirementsandavailabletraining.Informationproductssuchasfrequentlyaskedquestions,factsheets,websites,referencemanualsandquickreferenceguidesweredeveloped.

AnimportantaspectofthesuccessfulcollaborationwithindustryhasbeenaprogramofregularmeetingswithstakeholdersthathelpedtogaugeindustryreactiontotheICSandtoresolveissues.KeyforumsincludetheSoftwareDevelopersForumwithindustryandtheirsystemsdevelopers,andtheMinisterforJusticeandCustomsRoundTablemeetingswithindustryrepresentativesandseniorCustomsstaff.

TheCMRprojectrepresentsoneofAustralia’slargestpublicsectore-businessprojects.ThismeansthatCustomsisattheforefrontofthedesign,developmentandimplementationofasystemofthismagnitude.Consequently,achievingoperationalcapabilityinthisfastchangingenvironmenthasbeencomplex,time-consuminganddifficult.Thistranslatesintoadditionalcostsandtimescalefortheproject.

ByJune2005,Customshadspentcloseto$190monthedevelopmentandimplementationoftheCMRproject.

ICSExportsrelease

Thehighlightin2004–05wastheimplementationoftheCMRexportscomponent.Theexportscomponentwasinitiallymadeavailableon1August2004forentryofclientinformationandthenon22Septemberforexportmessagesrelatingtocargobeingexportedafter2am(AEST)on6October.TheCustomsConnectFacilityasthesecuregatewayforelectronicallyinteractingwithCustomsapplicationswasimplementedatthesametime.

Consultationincluded:

• around12monthsofindustrytestavailabilitytotesttheintegrationofthesoftwarecomponentsrequiredforthecargosupplychain

Perfor

man

ce rep

ortin

g

Out

put

4

• informationsupportproductsincludingfactsheets,referenceguides,booklets,websites,CDROMs,informationsessionsandinternetupdates

• facilitationofbusinessreadinesssimulations.

OverthreemilliontransactionswereprocessedthroughtheICSexportssystemintheninemonthsto30June2005.

Figure31showsthate-business(EDI)isthemostusedmethodoftransactingbusinesswith

Customsfororganisationswithaneedtoprocesslargevolumesoftransactions.However,theonlinefacility,CustomsInteractive,isconsistentlyusedforservicinglowervolumeusersovertheInternet.

Figure32showsthatthelargestproportionofexporttransactionssuccessfullysubmittedareExportDeclarationsat43.9percent,andCTO(CargoTerminalOperator—air,orContainerTerminalOperator—sea)ReceivalNoticesat40.8percent.

Figure �1: Number of successful EDI and Customs Interactive export transactions processed (1 October �00� to �0 June �00�)

*CTO:CargoTerminalOperator—air,orContainerTerminalOperator–sea

Figure ��: Export transactions successfully processed by type (1 October �00� to �0 June �00�)

Output4 ��


Customs teams – Cargo Management Reengineering

Development and implementation of the Cargo Management Reengineering (CMR) project involved Customs teams across Australia throughout its development.

Thecutoverfromthelegacyexportssystem,EXIT,totheIntegratedCargoSystem(ICS)occurredinOctober2004.TheWesternAustraliaregionformedateamtobeavailablewherenewsystemusers,internalandindustry,wereimplementingICSforexports.StafffromComplianceandCMRwerebasedatCargoTerminalOperators,seaContainerTerminalOperatorsandwithinthePerthInternationalAirTerminaltoprovideadvice.Withonlyafewminorglitches,asuccessfultransitionwasmadefromoldtonew.

WithinVictoria,aCMRtaskforcewithrepresentativesfromeachkeybranchwasestablishedtoassistinternalimplementation.Thetaskforce’sworkwasrecognisedbywinningtheprestigiousAustralianPublicServiceCommissionExecutiveLeadershipGroupVictoriaannualawardfor2004.

TwoexecutivemanagementteamsbasedinCanberrahelpedtosteerchangesatstrategic,operationalandtacticallevels.Theirworkincludedanalysis,development,testing,implementationandcommunicationoflegislative,policyandtechnicalchanges.

TheCMRSeniorExecutiveService/DirectorsTransitionGroupmanagedthebusinesschangesandtheCMRExecutiveGroupmanagedtheICSchanges.


Western Australia Compliance and CMR team members,

left to right, back row: Paul Grant, Alana Carson,

Lindsay Turnor. Middle row: Lara Boon, Karen Jardine.

Front row: Marie Alexander, Alison Murray and Juliet Pomfret.

Victoria Cargo Management Reengineering Taskforce

members: back row, left to right: George Binos, Vic Walker,

Stephen Pearce, Peter O’Keefe, Greg McCarthy, Viktoria

Rother, Front row: Bernadette Tan, Claudia Salustro,

Christopher Castelino, Daryl Snibson, Sue Klee,

Jennifer Pearce, Judith Anders.

Output4 ��

Perfor

man

ce rep

ortin

g

Out

put

4

Output4 ��

The CMR Senior Executive Service/Directors Transition team, from back left to right: Ben Evans, Rod Vaughan, Robert Fraser,

Peter Stankiewicz, Stephen Pearce, Myron Bosak. Next row: Andrew Hudson, John Roe, Mike Soding, Henk Smelter,

Jim Stewart, Jane Bailey. Next row: Geoff Johannes, Poh-Ling Lee, Jan Hill, Lyn Foster, Ray Carter, Richard Hunt, Malcolm

Buchanan. Next row: Mark Debeljakovic, Grant McGavin, Alison Neil, Peter Thomson, Tania Barrow, Eloise Saile.

Next row: Michelle Kinnane, Philomena Carnell, Phil Burns, Matthew Corkhill, Murray Harrison, Michelle Brunacci.

Next row: Craig Langford, Kim McGavin, Paris Lai, Ross Viles, Nicole Cottrell, Glenn Thornton. Absent: Jeff Buckpitt,

David Calligaro, Dane Cupit, Shane Davie, Keith Goodall, Randip Jassal, Jo Kennedy, Jenny Milward-Bason, Peter Naylor,

Sharon Nyakuengama, Christine Pruckner, Larry Roux, Craig Sommerville, Daryl Snibson, Scott Wood.

The CMR Executive team, from back left to right: John Mostovoy, Poh-Ling Lee, Ben Evans. Next row: David Calligaro,

Robert Van Rensburg, Michelle Kinnane, Jim Stewart, Andrew Hudson. Next row: Michael Blyton, Naa Opoku, Murray Harrison,

Malcolm Buchanan, Mark Debeljakovic. Next row: Matthew Corkhill, Leigh Edwards, Clare Cable. Next row: Brian Hughes,

Darrell Shepherd, Craig Langford, Ray Carter, Glenn Thornton. Absent: Murray Alston, Michelle Brunacci, Phil Burns,

Philomena Carnell, Dane Cupit, Craig Howden, Randip Jassal, Tony Kummer, Steve Moore, Chris Simpson.


ICSImportsrelease

DevelopmentoftheimportscomponentoftheCMRapplicationsuitewascompletedinthelatterpartof2004.Functionalitywasmadeavailabletoindustryandsoftwaredevelopersfrom1November2004.ThisenabledthetestingofbothCustomsandindustrysystemsandbusinessprocesses.Customsworkedcloselywiththeindustrysoftwaredevelopersandmajorstakeholdersintheimportchainincludingimporters,cargocarriers,depots,Customsbrokersandfreightforwarders.

Sincethecommencementofindustrytesting,activityhasgraduallyincreased.Theconsultativeandsupportprocessesadoptedforthereleaseoftheexportssystemandthelessonslearnedwereusefultothisphase.Additionalinformationsessionswereheldandproductswereproduced,incidentresolutionprocesseswereimplementedandregularconsultativeforumswereheldwithkeystakeholders.

Finetuningofthesoftwareandupgradingtheinformationtechnologyhardwaretosupportthetransactionloadsforimportscontinuedthroughouttheyear.Thisresultedinsignificantperformanceimprovementsthatwillaccommodatetheanticipatedmessagevolumeandimportactivity.Furthersystemtuningandhardwareupgradeswillbeundertakeninearly2005–06.

Buildingonthesuccessofthecollaborativeexportsbusinesssimulations,theimportsbusinessreadinesssimulationprogramcommencedinJune2005.ThisprogramassistssoftwaredevelopersandindustrytointeractwitheachotherandCustoms.Itsimulatestheworkingsofthesoftware,businessprocessesforcargomovement,andcompliancewiththeprovisionsofthetrademodernisationlegislation.Thesimulationsfocusoninterfacesandfunctionsthatinvolve:

• reportingofcargobyindustry

• clearancebyCustomsofcargoinwardsandoutwards

• revenuecollection

• quarantineandcommunityprotection.

Customsisusingthismethodofbusinesssimulationtotrainitsownstafftousethesystem.

BytheendofJune,thetestinghadprovidedsoftwaredeveloperswithsufficientconfidencetoproceedtothenextstageofimplementation.

Theprogramwillcontinueuptothecutoverdatewithmorecomplexsimulationsforseaandairbusinessscenarios.

Customsmadesignificantprogressonsolutionstotheincidentsfoundduringsoftwaretestingandsimulations.Thisassistsindustrytoparticipateinthebusinessreadinesssimulations.

Customsadoptedastrategytobettermanagethepriorityofincidentsinconjunctionwithindustryandgovernmentagencystakeholders.Thepriorityreflectedtheimportanceforthebusinessreadinesssimulationprogram,thefirstproductiontransactionsneartothecutoverdateandincidentsnotrequireduntilafterthecutoverdate.

Aswithexports,therearekeystakeholdersrangingfromothergovernmentagenciestoindividualmembersoftheexportsandimportscommunities.Havinglaidthefoundations,Customsisbuildingontherelationshipswiththeseagenciesandtheircontributiontotheexportssystemforthedevelopmentandimplementationoftheimportssystem.

ThesystemprovidesamoreintegratedapproachtomanagingtherisksforbothCustomsandtheAustralianQuarantineandInspectionService(AQIS).Thesystemallowsearlydeterminationofhigh-riskcargorequiringfurtherinspectionandspeedymovementoflowriskcargo.ThesystemwillbeintegratedwithAQISentrymanagementsystemswhichhavebeenupgradedordevelopedinlinewithICSfunctions

Manyothergovernmentagenciesalsoprovideinformationforthesystem.TheDepartmentofIndustry,TourismandResourcesprovidestariffconcessioninformation.Informationaboutexports,importsandrevenuecollectionisprovidedtoothergovernmentagenciessuchastheAustralianBureauofStatisticsandtheAustralianTaxationOffice.

Output4 �1

Perfor

man

ce rep

ortin

g

Out

put

4

Thechallengefor2005–06willbethesuccessfuldeploymentoftheICSimportscargosysteminlate2005andbeddinginofrelatedbusinessprocesses.

Supply Chain Security

Supplychainsecurityisamajorinternationalissue.TheWorldCustomsOrganization(WCO)isdevelopingaframeworkofstandardsforthesecurityandfacilitationofglobaltrade,designedtobeadoptedvoluntarilybyCustomsadministrationsthroughouttheworldtoimprove‘end-to-end’securityoverthemovementofshippingcontainersandinternationalcargo.

TheWCOframeworkisunderpinnedbyfourcoreelements:

• advanceelectronicreportingofcargo

• applicationofriskmanagementtoidentifyhigh-riskcargo

• non-intrusiveexaminationofoutboundcargo,onrequest

• benefitstothoseprivatesectorfirmsthatmeetminimalsupplychainsecuritystandards.

AustralianCustomsisheavilyinvolvedinthedevelopmentoftheunderpinningelementsandstandardsthatsupporttheframework.Customshasalreadyimplementedseveralofthecoreelementshavingwellestablishedadvancedelectronicreportingofcargo,riskmanagementintheassessmentofallcargo,andextensivex-raytechnology.

Customswilldevelopfurtherinitiativestoenhancesecurityoverinternationalcargo.

InMay2005,CustomsengagedtwosupplychainspecialiststofacilitateaseriesofworkshopsaimedatproducingastrategicdirectionforCustomsindesigningandimplementingasupplychainsecuritymodel.AsanumberofsupplychainissuesarebeyondtheresponsibilitiesofCustoms,representativesfromtheOfficeofTransportSecurityintheDepartmentofTransportandRegionalServiceswereinvitedtoparticipateintheworkshops.

Thesupplychainspecialistshadextensiveexperienceinthisfield,havingbeenpreviouslyengagedbytheUSGovernmentassystemsintegratorforOperationSafeCommerce.

Theinitiativeaimedattestingandevaluatingvariouscargosecuritybusinessandtechnologicalprocessesonanumberofinternationaltradelanesusingreal-timecargoconsignments.

ThepathwaydevelopedbyCustomsallowedforsettingprioritiesforAustraliansupplychainsecurityinitiativesbasedoncost,relativesecurityvalueandtimeframetoimplement.TheoutcomewillenableCustomstodesign,buildandimplementasupplychainsecuritymodelthatisconsistentwithinternationalbestpracticeandmeetstheWCOFrameworkofStandardstosecureandfacilitateglobaltrade.InJune2005,thisframeworkreceivedendorsementfromthe166membersoftheWCO.Theframeworkhasemergedasanacceptedglobalstandardforthedevelopmentofapproachestoenhancesecurityoverthemovementofinternationalcargo.

Compliance

TheCustomsComplianceAssuranceStrategyisanintelligence-drivenprogramdevelopedbyCustomstodeliveraninternationaltradingenvironmentthatreflectshighlevelsofself-regulatedcompliance.

Thestrategyoperatesonseverallevelsthroughassessmentandanalysisofthelevelandnatureofindustrycompliancewithstatutoryrequirements.Wherenon-complianceisidentified,arangeofcomplianceimprovementandenforcementactivitiesareundertaken.Customscomplianceprogramsfocusonassistingclientswhoarewillingandcapableofcomplyingwithrelevantlegislation,butthereisalsoscopetoimposesanctionsfornon-compliance.

CustomsworkscloselywithothergovernmentagenciessuchastheAustralianTaxationOfficeandtheDepartmentofIndustry,TourismandResources,toassurecompliancewithGSTcollectionandindustrysupportprograms.


Allocation of additional compliance resources

Inthe2005–06Budget,Customsreceived$28.4moverfouryearstoincreasecomplianceassuranceresourcesby60full-timestaff.Theadditionalresourceswillconcentrateontheauditofhighdutycommodities,warehouses,dutyfreestores,industrysupportschemesandGSTexemptions.

Compliance activities (benchmark and focused audits)

BenchmarkauditsuseastatisticallyvalidsampleoftheimportingandexportingcommunitytoprovideanindicationofthelevelofcompliancewithCustomslaw.Companiesthatexhibithighlevelsofnon-complianceinabenchmarkauditaresubjecttofurthercomplianceactivitysuchas‘focusedaudits’.

Inadditiontobenchmarkaudits,Customsconductsothercomplianceactivitiesbothatthetimeof,andafter,transactionsareprocessed.Realtimeactivitiesincludeprofilingandredlineimportdeclarationchecks,cargoexaminationsandwarehouseanddepotchecks.Post-transactionauditactivityincludesdeskaudits(adocumentaryauditundertakenintheofficeratherthanavisittothepremises),focusedauditsandleverageexercises.Theseactivitiesareconductedinresponsetoidentifiedrisks.

Benchmarkauditresultsfor2004–05onceagainconfirmedthatrevenueleakageintheimportsectorsauditedisnotofamateriallevel.

Thefiguresbelowshowthenumberofbenchmarkandfocusedauditscarriedoutin2004–05.

Revenue coverage

Customsconductedposttransactioncomplianceactivityacrossarangeofcompanies.Thecustomsvalueofthegoodsimportedbythesecompanies,$15910m,was10percentofatotalvalueofimports($149520m).

Realtimeimportcomplianceactivitiescoveredafurtherfivepercentofthevalueofimports.Theseactivitiesincludedleverageexercises,industryreferralsandactionresultingfromprofilematches.

Forexports,thefreeonboard(FOB)2valueofgoodsexportedsubjectedtocomplianceactivitywas$27376mrepresenting21percentofatotalvalueofmerchandiseexportsof$126720m.

Figure ��: �00�–0� Benchmark and focused audit program

Regions Benchmark audits completed

Focused audits completed

Regional total

NewSouthWales 41 22 63

Victoria 32 40 72

Queensland 25 19 44

SouthAustralia 16 13 29

WesternAustralia 24 5 29

Tasmania 3 1 4

NorthernTerritory 1 1 2

Total 1�� 101 ��

Figure ��: Percentage of total value of customs imports and exports in �00�-0� subject to compliance activity

Imports (CVAL) Percentage Exports(FOB) Percentage

Posttransactionactivity 10 Posttransactionactivity 8

Realtimeactivity 5 Realtimeactivity 13

Total 1� Total �1

2Thetermdefinesthecostofthegoodsincludinganycartagecosts,incurredinplacinggoodsonboardavesselattheplaceofexport.

Output4 ��

Perfor

man

ce rep

ortin

g

Out

put

4

Declaration validation examinations

DeclarationvalidationexaminationsareanewactivityconductedattheContainerExaminationFacilitiestoverifythatinformationdeclaredtoCustomsiscorrect.TheseexaminationsareconductedwhenacontainerisselectedforunpackingandaCustomsDeclarationfortheconsignmentislodged.Theconsignmentisexaminedtoensurethatthegoodsenteredaredescribedcorrectlyandcomplywiththelaw.

Export compliance strategy

CustomsadministerscontrolsonbehalfofpermitissuingagenciesontheexportofrestrictedgoodsandpassesexporttransactioninformationtotheAustralianBureauofStatisticsforitscompilationofinternationaltradestatistics.

Exportsweresubjecttocomplianceattention.ThiswaspossibleundernewexportrelatedprovisionsintheCustoms Legislation Amendment and Repeal (International Trade Modernisation) Act 2001commencingandcoincidedwiththecommencementoftheexportsreleaseoftheICS.

Developing capability within compliance assurance

InternalcompliancecapabilityisbeingbuiltthroughthedevelopmentoflearningproductsforusebyregionalComplianceAssuranceteams.In2004–05,fourmajorlearningprojectsweredeliveredwithinbudgetandtimeframe.

Themajorprojectscompletedwere:

• anupgradetotheInfringementNoticeSchemetrainingonlineforCustomsstaff

• basicCustomstraining(investigationskills)

• assurancetechniquestraining(level1)

• acompliancetrainingpackageforuseatContainerExaminationFacilities.

AnewCustomscompliancemanualwascompletedtoreflectlegislativechangesandthereengineeredcompliancerole.ThisworkwasundertakenacrossCustomssothattheproductsareownedanddesignedbybothpolicyownersandendusersacrossAustralia.

Infringement Notice Scheme

CustomsadministersanInfringementNoticeSchemethatallowsminorpenaltiestobeimposedforabroadrangeofstrictliabilityoffences.

WiththereleaseoftheexportscomponentoftheICS,14export-relatedstrictliabilityoffencesbecameenforceableundertheInfringementNoticeScheme.However,anadministrativemoratoriumofsixmonthsendingon6April2005,prevailedwhileindustryadjustedtothenewreportingrequirements.

TheCEO’sGuidelinesforissuinginfringementnoticeswereupdatedtoincorporateamendmentsmadetoanumberoftheoffencessincethecommencementofthescheme.TheseguidelinesweretabledinParliamenton16November2004.

Onehundredandtwenty-twoinfringementnoticeswereissuedwith98noticespaidandthreenoticeswithdrawn.Noprosecutionswereinitiatedfornon-paymentofaninfringementnotice.ThetotalamountpaidasaresultofInfringementNoticesissuedwas$108359.

Australian Law Reform Commission report on Federal civil and administrative penalties

The2003–04AnnualReportreportedthatCustomswasdevelopingaresponsetoCustomsspecificrecommendationsbytheAustralianLawReformCommissiononFederalcivilandadministrativepenalties.

Customshasdevelopedcriteriaforclassifyingoffencesascivilorcriminal.AninternalconsultationphasehascommencedtodevelopproposalsforthelegislativerevisionoftherelevantpartsoftheCustomsAct.

Duty recovery

CustomsreceivedanumberofcomplaintsconcerningitsapproachtotherecoveryofdutyfollowingadecisionoftheHighCourtinMalika Holdings Pty v Stretton(Malika).Complainantshavearguedthatrecoveryactionshouldbelimitedto12months.Customsapproach,supportedbyindependentadviceandlegalcouncil,istorecoverdutyforperiodsofuptofouryears.


AdecisionoftheFullFederalCourt(Parks Holdings trading as Gladstone v CEO of Customs,1December2004)supportedCustomsapproach(seepage142).

Investigations of fraud

Customsinvestigatesseriousoffencessuchasrevenuefraud.CustomsalsoconductsfinancialinvestigationsinaccordancewiththeProceeds of Crime Act 2002torecoverassetsassociatedwithcriminaloffences.

TheCommonwealth Fraud Control GuidelinesandtheAustralian Government Investigation StandardsunderpinCustomsfraudcontrolmethodstominimiserevenueleakage.Customspayscloseattentiontoappropriateinvestigationstandards.

Figure ��: Summary of investigation activity – frauds on the revenue

�00�–0� �00�–0� �00�–0�

Received 110 102 129

Casesadopted 72 61 72

Casescompleted^

withprosecution(throughcourts) 22 34 26withoutprosecution 58 71 41

Caseswhereprosecutionbriefscompleted^ 28+ 23 20

^ Includescasesadoptedinpreviousyears.

+ Doesnotincludesixrecoverybriefs.

Customssuccessfullyprosecuted26fraudcasesthisyear.Thepenaltiesrangedfromafinetofourseparateprisonterms.Thesecasescoveredvariousgoodswithoveraquarterofthecasesinvolvingtobacco/cigarettes.

Therewasanotableincreaseinthedetectionrateofillicittobaccoimportations.Thismaybeattributedtotheenhanceddetectioncapabilitiesattheborder.

Duringthefinancialyears2003–04and2004–05,Customsgraduallyincreasedthelevelofattentionpaidtotheidentificationandrecoveryofcriminalassetsassociatedwithrevenuefraud.SeventeencaseswereinvestigatedbyCustomsduringthisperiod,whichresultedintherestraintofassetshavinganestimatedvalueofmorethan$21mbytheCommonwealthDirectorofPublicProsecution.

Over a quarter of fraud cases in 2004–05 involved

tobacco/cigarettes

Output4 ��

Perfor

man

ce rep

ortin

g

Out

put

4

Trade

Valuation and origin

Rulesoforigin

CustomsimplementedtherulesoforiginfortheAustralia–UnitedStatesFreeTradeAgreement(AUSFTA)andfortheThailand–AustraliaFreeTradeAgreement(TAFTA).

BothAUSFTAandTAFTAcommencedon1January2005.TherulesoforiginfortheFreeTradeAgreements(FTAs)arespecifiedin:

• US Free Trade Agreement Implementation Act 2004

• Customs (Australia–US Free Trade Agreement) Regulations 2004

• Customs Amendment (Thailand–Australia Free Trade Agreement Implementation) Act 2004

• Customs (Thailand–Australia Free Trade Agreement) Regulations 2004.

InformationsessionsforCustomsbrokersandtrainingcoursesforCustomsstaffwereconductedinallStatesandintheNorthernTerritory.CustomsalsoredevelopedtheInternetsitedevotedtopreferentialrulesoforiginandproducedanewCustomsmanualforeachoftheFTAs.

WiththeimplementationoftheAUSFTAandTAFTA,Customsalsointroducedaformaloriginadviceservicetoclients.Todate,Customshasissued37bindingoriginadvicesinrelationtotheFTAs.

UndertheTAFTA,specialsafeguardsapplytocertainsensitiveagriculturalgoods.ForAustralia,specialsafeguardsareclaimedforcertaintunaproducts(includingcannedtuna),pineappleproductsandpineapplejuicefortheperiodfromthecommencementoftheFTAuntil31December2008.

Wherethevolumeofsafeguardgoodsimportedinaparticularcalendaryearexceedsaspecifiedvolume,safeguardsmaybeimposed.Ifspecialsafeguardsareimposed,thedutyrateforsafeguardgoodswillreturntothegeneralratefortheremainderofthecalendaryear.

CustomswillmonitorimportsofthespecialsafeguardgoodsandadvisetheDepartmentofAgriculture,FisheriesandForestryiftheannualvolumeforanyofthosegoodsisreached.

InDecember2004,AustraliaandNewZealandannouncedthattherulesoforiginundertheAustraliaNewZealandCloserEconomicRelationsTradeAgreement(ANZCERTA)wouldbereformedandthattheChangeinTariffClassificationapproachwouldbeadopted.CustomsissupportingtheDepartmentofForeignAffairsandTradeandtheDepartmentofIndustry,TourismandResourcesontheredraftingoftherulesoforiginfortheANZCERTA.

Theprocessofidentifyingchangesfortheexistingrulesoforigin,basedontheChangeinTariffClassificationapproachhascommenced.ThisistoreflecttheWorldCustomsOrganizationHarmonizedCommodityDescriptionandCodingSystem(knownastheHarmonizedTariff ).ThelatestchangestotheHarmonizedTariffareduetocommenceon1January2007.

CustomsisassistingothergovernmentagenciesinthenegotiationofrulesoforiginforpossibleFTAswithChina,theAssociationofSoutheastAsianNations(ASEAN),theUnitedArabEmiratesandMalaysia.

Valuation

DeterminingthecorrectcustomsvalueofimportedgoodsisessentialtocollectCustomsduty,indirecttaxesandtradestatistics.Toassistimporters,Customsprovidesavaluationadviceservice.

Customsissued94bindingvaluationadvicesin2004–05.Twovaluationadvicesweresubjecttointernalreviewandbothdecisionswereaffirmed.FordetailsofexternalreviewsconductedbytheAdministrativeAppealsTribunalandtheFederalCourt,refertoAppendixD.

CustomsmetwiththeAustralianTaxationOfficetodiscussthepossibleharmonisationtothetreatmentofcross-borderdealingsbetweenrelatedparties.Thecustomsvalueofimportedgoodsmaybeabletobedeterminedonthe

basisofinformationcontainedinanAdvancedPricingArrangementwiththeAustralianTaxationOffice.AnAdvancedPricingArrangementestablishesatransferpricingmethodologytobeusedtodeterminearm’s-lengthpricesforfuturetransactions.CustomsandtheAustralianTaxationOfficewillexplorefurtheroptionsforharmonisation.

Tariff concessions

CustomsdirectlyadministersorassistsintheadministrationofanumberofconcessionalitemsunderSchedule4ofthe Customs Tariff Act 1995(theTariff ).Theconcessionalitemscoverarangeofgoodsandpeopleeligibletoaccessconcessionalarrangements.TheseareinlinewithinternationalagreementsonindustryschemesofferedbygovernmentagenciesincludingtheDepartmentofIndustry,TourismandResourcesandtheDepartmentofAgriculture,FisheriesandForestry.

Figure36showstheCustomsdutyforgoneasaresultoftheconcessionalarrangementsavailableunderSchedule4oftheTariff.

Figure37showsthenumberofapplicationsandrevocationsundertheTariffConcessionScheme.Thenumberofapplicationsincreasedfrom506in2003–04to562in2004–05.

Eleveninternalreviewsofdecisionsontariffconcessionapplicationsandrevocationrequestswerefinalised,comparedwitheightin2003–04.Allreviewswerecompletedwithinlegislatedtimelimits,withanaveragetimeof37daysfromreceipt.Thereweretwoexternalreviewsoftariffconcessionapplications.

Tariff classification

Customsprovidestariffclassificationadviceservicestoassistimportersandexportersofgoods.TariffclassificationisimportantasitisusedtodeterminetherateofCustomsdutyforimportedgoodsandfacilitatesthecollectionoftradestatisticsbytheAustralianBureauofStatistics.

Theserviceincludesaninternaladministrativereviewprocess,todealwithappealslodgedbyclientswheretheydisagreewiththetariffadvice.TheroleofinternalreviewhasbeencentralisedinCanberrasinceJuly2002.

CustomsCentralOfficestaffundertookaseriesoftrainingsessionsforregionalofficers.

Figure38showsthetotalnumberoftariffadvicesissuedandabreakdownofthereviewsundertakensincetherolewascentralisedin2002.

Figure ��: Duty forgone through concessional arrangements ($m)

Industry assistance measureConcession

Item �00�–0� �00�–0� �00�–0�

TariffConcessionScheme 50 489.1 479.0 548.4

Textileclothingandfootwearpolicyby-law 40A 38.5 26.8 20.4

TRADEX* 21A 138.7 129.3 93.4

Projectby-lawschemez 45,46,56 7.1 .. ..

Enhancedprojectby-laws 71 20.5 47.0 43.0

Cheeseandcurdquotascheme 62 10.7 11.8 12.5

Textileclothingandfootwearoverseasassemblyprovisions 61 5.6 5.4 4.8

AutomotiveCompetitivenessInvestmentScheme(ACIS) 41E,41G 555.6 586.9 531.1

OtherConcessions 101.8 105.0 112.8

Total 1 ��.� 1 ��1.1 1 ��.�

* TheTRADEXschemereplacedtheTariffExportConcessionScheme(TEXCO)inJuly2000whentheDepartmentofIndustry,ScienceandResourcesassumedresponsibilityundertheTRADEX Scheme Act 1999.Underitem21AofSchedule4totheCustoms Tariff Act 1995,Customsfacilitatestheentryofgoodsimportedunderthescheme.

# Projectby-lawschemewasreplacedwithEnhancedProjectBy-LawsinJuly2002.


Output4 ��

Perfor

man

ce rep

ortin

g

Out

put

4

Figure ��: Item �0 in Schedule � of the Tariff —Tariff Concession Scheme

�00�–0� �00�–0� �00�–0�

Applications

Received 526 506 562

Approved 446 407 455

Notapproved 107 82 62

Revocations

Received 20 25 8

Approved 16 22 9

Notapproved 2 2 2

Customsinitiated 542 753 462

Figure ��: Tariff advices and reviews

�00�–0� �00�–0� �00�–0�

Tariffadvicesissued 4232 3602 3254

Reviews

Customsdecisionoverturned 59 38 21

Customsdecisionaffirmed 42 47 36

Reviewdecisionsubstituted 20 5 4

Reviewswithdrawn 4 1 4

Reviewsyettobefinalised - 3 3

Total reviews undertaken 1��

Perfor

man

ce rep

ortin

g

Out

put

4

Tariff legislation

SeveralBillsinvolvingchangestotheCustoms Tariff Act 1995wereintroducedintoorpassedbyParliament.Duetothespecialistnatureofthelegislation,draftingwasprimarilyundertakenwithinCustomspriortothefinalBillsbeingproducedbytheOfficeofParliamentaryCounsel.ThecreationofthoseBillsinvolvedliaisonwithanumberofgovernmentdepartmentsincludingtheDepartmentofForeignAffairsandTrade,theDepartmentoftheTreasuryandtheDepartmentofIndustry,TourismandResources.

Trade and tax liaison

CooperationwiththeAustralianTaxationOffice

IndirecttaxesthatapplytogoodsproducedorsuppliedinAustralia(i.e.GST,exciseduty,wineequalisationtaxandluxurycartax)alsoapplytoimportedgoods.CustomsassessesandcollectstheindirecttaxpayableonimportedgoodsonbehalfoftheAustralianTaxationOffice.Thetwoorganisationsalsocooperateontheadministrationoftaxconcessionsthatarebasedontheexportofgoods.

CustomsreceivesfundingforadministrationofGSTforimportedandexportedgoodsaspartoftheCommonwealth-StatearrangementsonGSTadministration.Customsreceived$47min2004–05tocarryoutGST-relatedactivitiessuchasimportandexportprocessing,complianceactivitiesandadministrationoftheTouristRefundScheme.

Aninteragencyliaisoncommitteemeetseverytwomonthstooverseeindirecttaxadministrationattheborderandtoactuatecoordination.Thecommitteedealtwithissuesincludingdatatransfer,exportcargoexaminationproceduresandtransitiontotheICS.Sub-committeescontinuedtofocusonspecificissuessuchascomplianceandadministrativepenalties.

GSTAdministrationSubcommittee

Customsprovideshalf-yearlyperformanceandcostreportsonGSTadministrationaspartofreportingrequirementsundertheIntergovernmentalAgreement.ThisAgreementcoversthedistributionofGSTrevenueaftercostsarededucted.


Customs teams – Tariff Concession Scheme: removal of duty on business imports

When governments announce budget decisions, a range of government machinery is required behind the scenes to implement the change. An example is the government decision in the �00� Budget to remove the three per cent tariff on business inputs under a Tariff Concessions Order (TCO).

TheGovernmentannouncedthechangetoreducebusinessinputcosts,increasetheinternationalcompetitivenessofAustralianbusiness,andencourageinvestmentinefficientandsustainableindustries.

ThechangeinthedutyratepromptedanincreaseinrequestsforbothapplicationsandrevocationsofTCOsusingtheTariffConcessionScheme.

The Tariff Concession section, left to right: Glen Beatty, Steve Adams, Bob Crawford, Keith Vanderslacht, Debbie Hayer,

John Potter and Paul Mercer.

ThechangeswereimplementedbythespecialistTariffConcessionsectioninCentralOfficethatprovidesadviceandassistancetoallareasofCustoms,governmentagenciesandindustryoncomplexissuesrelatingtotheinterpretationandadministrationofcertaintariffconcessionitems.

Thesection’sworkrelatestoadministrationofItem50ofSchedule4oftheCustoms Tariff Act 1995,alsoknownastheTariffConcessionScheme.Theteamismadeupoftechnicalexpertswithbroadindustryknowledgeandanabilitytoresearch,interpretandanalysecomplexinformation.Theseskills,combinedwithastrongclientfocus,allowstheteamtomaintainavalue-addingapproachwhilemeetingitslegislativedeadlinestoassessandimplementapplicationsorrevocationsforaTCO.


Output4 ��

Perfor

man

ce rep

ortin

g

Out

put

4

InternationalcooperationwithMalaysia

InMarch2005,adelegationofMalaysianCustomsofficersvisitedAustraliatostudyGSTadministration.CustomsfacilitatedmeetingsbetweentheDepartmentoftheTreasuryandtheAustralianTaxationOfficetoprovideabroadunderstandingofAustralia’sGSTsystemandalsoprovideddetailsofCustomsadministrationofGSTonimportedgoods.

InternationalcooperationwithUnitedArabEmirates

InMarch2005,CustomsprovidedinformationaboutAustralia’sadministrationofGSTonimportedgoodstoarepresentativeoftheUnitedArabEmiratesCustomsService.ThesediscussionswereinconjunctionwithaUnitedArabEmiratesdelegationinAustraliatodiscussaFreeTradeAgreement.

Harmonized System Committee

AustraliaisamemberoftheWCOandisacontractingpartytotheHarmonisedSystemConvention.CustomsrepresentsAustraliaattheWCO,andattendsmeetingsoftheHarmonizedSystemCommitteeandtheReviewSub-Committee.ChangesforthenewHarmonizedSystemnomenclature(2007)havebeenapprovedandconfirmedbytheWCOCouncil.WorkisunderwaytoimplementthesechangesintotheAustralianTarifffor2007.FurtherworkisprogressingintoimplementingchangesapprovedbytheWCOonstreamliningHarmonizedSystemprocedures.

Passengers

Passenger and crew duty free concessions

Anewarrangementforpassengerandcrewdutyfreeconcessionswasimplementedon1February2005.Aninterdepartmentalcommitteereviewconsideredincreasestopassengerconcessionsasabalancebetweentourism,facilitation,industryandrevenueinterests.Thenewconcessionsprovidehigher

limitsfordutyandtax-freegoodsfortravellers.Travellerswhoimportgoodsinexcessofthelimitslosetheentitlementtoconcessions.

ImplementationoccurredsoonaftertheCommonwealthandStateGovernmentsendorsedthechangesasbothtravellersanddutyfreeoperatorsshowedstronginterestforearlyimplementation.

Theagreementtointroducenewconcessionlimitsrecognisestherehadbeenlittlechangetodutylimitssince1987.Priortoimplementation,Customswrotetorepresentativesofleadingtourismindustrybodiesexplainingthechangesindetail.Sometwomillionleafletswerepublishedandmadeavailableatinternationalairportstooutgoingpassengersfrom15December2004.Nationalnewspapersalsofeaturedarticlesaboutthenewconcessions,someincludingdetailedarticlesintheirtravelsectionsaswellasmoregeneralreportinginDecemberandJanuary.

Thechangesbroughtaboutasharpriseinthenumberofpassengercomplaintsfromtravellerswhohadexceededlimitsandwerethenrequiredtopaydutyandtax.Thisisexpectedtodiminishastravellerawarenessincreases.Therateofcomplaintsreducedgraduallyafterimplementation.

DetailsoftheconcessionslimitsareontheCustomsInternetsite.

Passenger Movement Charge

ThePassengerMovementChargeisadministeredbyCustomsunderthePassenger Movement Charge Collection Act 1995.AtitsinceptionitwasintendedasanotionalcostrecoverymeasuretorecoupthecostsofCustoms,DIMIAandAQISprocessingofinwardandoutwardpassengersatAustralia’sbordersandthecostofissuingshort-termvisitorvisas.MoniesarepaiddirectlytotheConsolidatedRevenueFund.

PassengerMovementChargecollectionsamountedto$363.8mfor2004–05.

Figure ��: Costs incurred in �00�–0� by agencies providing passenger processing service

Customs DIMIA AQIS

$177.458m * $71.999m

* FullcostsforDIMIAwerenotavailableatthetimeofpublication.Thefigurefor2003-04was$68.876m.

Perfor

man

ce rep

ortin

g

Out

put

4


The Tourist Refund Scheme

TheTouristRefundSchemeallowsAustralianandoverseasvisitorsarefundofGSTandWETpaidongoodsboughtinAustraliawhicharesubsequentlyexportedbyvisitors.

SincetheschemebeganinJuly2000,1.73millionclaimshavebeenmade,resultingin$212mofGSTandWETbeingrefunded.Thisequatestoover$2.3bworthoftouristretailsalesinAustralia.


ThecutoverdatefortheimportscomponentoftheICShasbeendeterminedinconsultationwithindustry.Legislationwasrequiredtoimplementthesechangedarrangementssuchthatindustrywillhavethreemonthstofinalisetestinganddocumentation,installandtraintheusersoftheirsystemspriortothecutoverdate.

TheimportscomponentoftheICSwasavailableforusebyindustryfrom19July2005inaccordancewiththeCustoms Legislation Amendment and Repeal (International Trade Modernisation) Act 2001.

Nextyear,Customswill:

• developaCustoms-to-businesspartnershipprogramtoincreasecargosecurity

• prepareforthecommencementoftheAccreditedClientProgram

• applyadditionalposttransactionalauditactivityasaresultoftheappointmentof60additionalstaff

• provideinputtoFreeTradeAgreementnegotiationswithcountriesincludingtheUnitedArabEmirates,China,MalaysiaandASEAN/ANZ

• continuetheintegrationoftheredevelopedTARCONandTAPINcomputersystemswithintheICS

• implementlegislativeandadministrativechangesresultingfromtheupdateofthe2007HarmonisedSystembytheWCO

• implementmajorchangestotherulesoforiginfortheANZCERTA

• conductandfinalisearequestfortenderfortheprovisionofpaymentservicesfortheTouristRefundScheme

• contributetothereviewsofthePassengerMovementChargeandtouristshopping.

Figure �0: Summary of Tourist Refund Scheme claims

�00�–0� �00�–0� �00�–0�

Numberofclaimsmade 359694 389266 433214

Percentageofclaimsapprovedforpayment 97.4% 96.6% 96.5%

AmountofGST/WETrefunded $45.3m $46.9m $49.8m

Mailbackclaimsprocessedwithin30days*(to4October2002)

99%# # #

CreditcardandAustralianbankaccountrefundsprocessedwithinfivebusinessdays(from18Nov2002)

84.4% 99.0% 99.4%

Chequerefundspostedwithin15businessdays(from18Nov2002)

98.7% 97.6% 98.4%

Australianretailerparticipation 20500 18300 19230

Numberofcomplaintsreceivedandprocessed 294 149 202

* DuetothebusinesschangesdeliveredwiththenewTouristRefundSchemeITsysteminNov2002,themailbackprocesswasreplacedwithfullelectronicprocessingforallrefunds.

# AsaresultofthetransitiontothenewTouristRefundSchemeITsystem,abacklogofclaimsfortheperiod4October2002to17November2003wereprocessedretrospectivelyinthenewsystem.Themajorityofclaimswithinthisperioddidnotmeetthe30-dayservicestandard.

Output5 �1

Output �

Anti-dumping and countervailing administration


ThisOutputcoverstheinvestigationofdumpingandcountervailingcomplaintsandthedetermination,implementationandreviewofassociatedmeasures.Italsocovers:

• provisionofadvicetoindustryandforeigngovernments

• maintenanceofAustralia’spolicyandlegislativeframeworkforanti-dumpingandcountervailingadministration

• advicetogovernmentandrepresentationofAustralia’sinterestsintheWorldTrade

Organisation(WTO)foranti-dumpingrulesandpractice

• expertparticipation(asresourcespermit)onWTOdisputepanels.

Trademeasuresprogramsenable,whereappropriate,AustralianindustrytobenefitfromAustralia’smembershipoftheWTOagreementsonanti-dumpingandsubsidiesandcountervailingmeasures.

Keyobjectivesin2004–05wereto:

• assessand,ifappropriate,investigateandreportonallegationsofdumping,subsidy,injuryandcausallink

• implementmeasuresresultingfrominvestigationsandmonitorcompliance

• advisestakeholdersoftheservicesavailableandtheassociatedpolicyandprocedures

Figure �1: Performance against targets set in the �00�–0� Portfolio Budget Statement–Output �


Quality

Proportionofanti-dumping/countervailingcasesandreviewscompletedwithin155days

Cases 100% 56.0%^

Reviews 100% 0.0%^

Quantity

Numberofanti-dumping/countervailingcases **

Carriedforwardfrom2003–04 4

Lodged 16

Rejected 7

Withdrawn/Terminated 8

Concluded(approvedbyMinister) 2

Carriedforwardto2005–06 3

Numberofanti-dumping/countervailingreviews**

Carriedforwardfrom2004–05 2

Initiated 15

Rejected 2

Withdrawn/Terminated 0

Concluded(approvedbyMinister) 2

Carriedforwardto2005–06 13

AppealstotheFederalCourt ** 3

Price $�.��m $�.�1�m


**Workloadsagainstthesemeasurescannotbeanticipatedastheyaredependentoninternationaltrends/economiccircumstancesbeyondCustomscontrol.

^TheMinistercanapproveanextensiontothetimeinwhichaninvestigationmustbecompleted.Takingintoaccountapprovedextensionsoftime,allinvestigationswerecompletedwithinthestatutorytimeframes.

Perfor

man

ce rep

ortin

g

Out

put

5


• contributetothedevelopmentofinternationalpracticeandprocedureonanti-dumpingandcountervailingadministration.


• successfulconsultationon,andimplementationof,theGovernment’sdecisiontorecogniseChinaasamarketeconomy,ensuringthatindustrycontinuestohaveaccesstoaneffectiveanti-dumpingregime

• contributionstoWTOmultilateraltradenegotiationsandWTOtechnicalimplementationcommittee

• effectiveandconstructivedialoguewithanti-dumpingstakeholders.

Policy

World Trade Organization participation

CustomsplayedanactiveroleintheformulationandpresentationofAustralia’sresponsestoissuesarisingintheWTODoharoundnegotiationsandcontributedtodebateandpolicyformulationonanti-dumpingissues.TheinvolvementofCustomsofficersintheWTOprocessenablesAustralia’scontributiontobesupportedbyexpertadvicefrompractitioners.

International cooperation

SeveraldelegationsofChineseGovernmentofficialsvisitedAustraliatodiscussAustralia’santi-dumpingadministration.Thesediscussionswereusefulinbuildingunderstandingbetweenthetwoadministrations.

CustomswasrepresentedatthefourthAustralia-KoreaMinisterialJointTradeandEconomicCommissionSeniorOfficials’meetinginMay2005.Thesemeetingscontinuetopromoteunderstandinganddialogueonanti-dumpingadministration.

CustomsdeliveredapresentationonAustraliananti-dumpingpracticeandprocedureinrelationtocontinuationinquiriesatthe2005SeoulInternationalTradeSeminar.

Inaddition,CustomsworkedcloselywiththeDepartmentofForeignAffairsandTradeinfurtherbilateraltradediscussionswithKoreaandIndonesia.

Anti-dumping response to recognition of China’s market economy status

TheGovernment’sdecisiontotreatChinaasamarketeconomywasasignificantfocusforAustralia’santi-dumpingadministrationin2004–05.

Followingextensiveconsultationwithindustryandotherstakeholders,Customsintroducedregulatoryandoperationalamendments.ChinawillbetreatedthesameasotherWTOmembersforthepurposeofanti-dumpinginlinewithAustralia’santi-dumpingregime.Asaresult,Australianindustryhasthesamelevelofprotectionasitdidpriortothechangedarrangements.Thisoutcomewasgenerallysupportedbyindustry.

Consultation with stakeholders

Customsactivelyengagedwithitsstakeholdersbyparticipatinginnumerousdiscussionsonpolicyandpracticeissues.

CustomsandtheAustralianCompetitionandConsumerCommission(ACCC)metthisyeartodiscussissuesofmutualinterest.Inparticular,theydiscussedarrangementsforexchangeofinformationoninvestigations,andsubmissionsthatmaybemadebytheACCCtoCustomsinvestigations.

GiventheimportantroleperformedbytheTradeMeasuresReviewOfficer(TMRO)inAustralia’santi-dumpingadministration,regularmeetingswereheldbetweenCustomsandtheTMROtodiscusssignificantpolicyandadministrativeissues.

CustomsattendedindustrygroupmeetingstoinformstakeholdersofCustomsroleinAustralia’santi-dumpingadministration.

Cooperation with stakeholders – steel import monitoring

In2002,inresponsetoindustryconcernsaboutpotentialimpactsofUSsteelsafeguards,theGovernmentestablishedaCommitteetomonitorsteelimporttrends.CustomscontinuedtoprovidetheSteelImportMonitoringCommitteememberswithweeklygradedalertsaboutchangesinsteelimportvolumesandprices.TheCommitteesupplementsthis

Perfor

man

ce rep

ortin

g

Out

put

5

Output5 ��

informationwithmoredetailedmonthlyinformationpublishedbytheAustralianBureauofStatistics.

Practice

Meeting statutory timeframes

ExtensionsoftimetoplacestatementsofessentialfactsonthepublicfilegrantedbytheMinisterin2004–05aredetailedinFigure42below.

Investigations for new measures

Customsinitiatednineinvestigationsinresponsetoindustryapplications:

• fourinvestigationswereforgoodsinthesteelindustry(certainhollow-steelsectionexportedfromChina,Korea,MalaysiaandThailandlaterterminated)

• oneforthefoodstuffscategory(preservedmushroomsexportedfromChina)

• onefromthechemicalssector(sodiumhydrogencarbonatefromChina)

• onefromtheelectricalappliancessector(domesticrefrigeratorsfromKorealaterterminated)

• onefromthepapersector(greybackcartonboardfromKorea)

• onefromtheplasticssector(LLDPEfromCanadalaterterminated).

ThemajorityofinvestigationsinvolvedgoodsexportedfromAsia(threeeachfromChinaandKoreaandoneeachfromMalaysiaandThailand).OneinvestigationrelatedtogoodsfromCanada(seeaboveinrelationtoLLDPE).

Thenumberofapplicationsfornewmeasuresdecreasedin2004–05.ChinaandKoreawereagainthesourcecountriesofgreatestinterest.

TheinvestigationofcertainelectricresistanceweldedcircularhollowsectionsexportedfromKorea,startedin2003–04,wasterminated.

Threeinvestigationswerecurrentat30June2005(greybackcartonboardfromKorea,sodiumhydrogencarbonatefromChinaandpreservedmushroomsfromChina).

Thenumberofdumpinginvestigationsinitiatedworldwidehasdeclinedinrecentyears.Thefocusforsourcecountriesappearstoalsohaveshifted.Inthe2003calendaryear,Indiawastheworld’slargestuserofanti-dumpingsystems.In2004,theEuropeanUnionwastheworld’slargestuser,followedbyChinaandtheUS.

Australiawastheeighthlargestuseroftheanti-dumpingsystemin2004,althoughthenumberofinvestigationshasalsoreducedoverrecentyears.

Figure ��: Extension to statutory timeframes

Goods Export county Additional time Comment

domesticrefrigerators

Korea 60days toobtainandverifyinformationoninjury,exportpricesandnormalvalues

linearlowdensitypolyethylene(LLDPE)

IndonesiaKoreaThailand

42days largevolumeofdatacollectedandthecomplexityinverifyingthatdata

highdensitypolyethylene(HDPE)

KoreaMalaysiaSingaporeSweden

42days largevolumeofdatacollectedandthecomplexityinverifyingthatdata

LLDPE Canada 43days largevolumeofdatacollectedandthecomplexityinverifyingthatdata

certainsilicon China 30days additionaltimeforpartiestoprovideinformationandaccesstoon-siteverificationofdataonexportpricesandnormalvalues

Perfor

man

ce rep

ortin

g

Out

put

5


Measures imposed (includes price undertakings accepted)

TheMinisterimposednewanti-dumpingmeasuresoncertainsiliconexportedfromChina.

Informationaboutcurrentinvestigations,goodssubjecttomeasuresandcountriesinvestigatedispubliclyavailableinthemonthlystatusreportpublishedontheCustomsInternetsite(anti-dumping).

Reviews of existing measures

Anyaffectedpartymayapplyforareviewofthevariablefactorsrelevanttotheexistingmeasures.Investigationsmaybeinitiatedonreceiptofaproperlydocumentedapplication.

Customsinitiatedreviewsofexistingmeasuresinthefollowingmatters:

• LLDPEfromIndonesia,KoreaandThailand

• HDPEfromKorea,Malaysia,SingaporeandSweden

• certainhotdipgalvanisedcircularhollowsectionsfromThailand

• certainwashingmachinesfromKorea(Ministerinitiated)

• Polyvinylchloride(PVC)fromHungary,Israel,Japan,Korea,ThailandandUSA.

Twoinvestigationscarriedforwardfrom2003–04werecompleted:

• certainhotrolledstructuralsteelsectionsfromKorea

• certaincoppertubefromKorea.

CustomsreportedtotheMinisteron:

• LLDPEfromIndonesia,KoreaandThailand

• HDPEfromKorea,Malaysia,SingaporeandSweden

• washingmachinesfromKorea.

TheMinisterchangedthevariablefactorsasthebasisforthetakingofthemeasuresforhotrolledstructuralsectionsexportedbyKoreabyoneexporterandcoppertubeexportedfromKorea.

ReviewsonPVCexportedfromsixcountriesandcertainhotdippedgalvanisedsteelpipeexportedfromThailandareunderway.

Measures continued

Measuresremaininplaceforfiveyearsunlessrevokedearlier.Customsinvitesapplicationsforacontinuanceofthemeasuresatleasttenmonthsbeforetheexpirydate.AustralianindustrymayapplytohaveCustomsconductaninquiryfortheMinisterforJusticeandCustomsonwhethermeasuresshouldbecontinuedbeyondthefive-yearperiod.

ContinuationinquiriesareonlyinitiatedonthereceiptofaproperlydocumentedapplicationfromAustralianindustry.

Fiveanti-dumpingmeasureswereduetoexpirein2004–05andCustomsinitiatedfournewcontinuationinquiries.

InthecasesofcertaingalvanisedsteelpipeexportedfromThailandandPVChomopolymerresinexportedfromHungaryandKorea,theMinisterdecidedtocontinuemeasures.

TheMinisterdecidednottocontinuetheanti-dumpingmeasuresapplyingtobulkbrandyexportedfromFrance.

InthecaseofPVCbottlecompoundexportedfromSingapore,themeasuresexpiredfollowingrejectionofanapplicationforcontinuationofthemeasures.

InthecaseofLLDPEfromIndonesia,althoughacontinuationinquirywasinitiated,anti-dumpingmeasureswerenotduetoexpireuntil2005–06.

Appeals

Appeals to the Trade Measures Review Officer AnaffectedpartymayappealcertaindecisionsmadebyCustomsandtheMinisterforJusticeandCustomstotheTradeMeasuresReviewOfficer(TMRO).In2004–05,thefollowingmatterswerereferredand/orfinalisedfor:

• coppertubeexportedfromKorea,theTMROaffirmedCustomsdecisiontorejectanapplicationfordutyassessment.CustomsdecisiontorejectafurtherapplicationfordutyforthegoodsiscurrentlybeforetheTMRO

• electricweldedcircularhollowsectionsexportedfromKorea,theTMROaffirmed

Perfor

man

ce rep

ortin

g

Out

put

5

Output5 ��

Customsdecisiontoterminateaninvestigation

• galvanisedsteelpipeexportedfromThailand,theTMROaffirmedCustomsdecisiontorejectanapplicationfordutyassessment

• oliveoilexportedfromGreece,ItalyandSpain,theTMROaffirmedCustomsdecisiontoterminateaninvestigationintotheallegedsubsidisationofthosegoods

• hollowsteelsectionsexportedfromChina,Korea,MalaysiaandThailand,theTMROreversedCustomsdecisiontorejectananti-dumpingapplication.Accordingly,Customsinitiatedaninvestigation,whichitsubsequentlyterminated.AfurtherapplicationwasmadetotheTMROinresponsetothisdecision.Aresultisexpectedin2005–06

• certainhot-rolled-platesteelexportedfromChina,Indonesia,JapanandKorea,theTMROrecommendedthattheMinisteraffirmhisoriginaldecision(andtheMinisteragreed)

• amatterofcertainsiliconfromChinawasunderreviewat30June2005.

Applications to the Federal CourtOneoutstandingmatterat30June2004wasresolvedduringtheyear.InApril2003,AmcorPackaging(Australia)PtyLimited(Amcor)filedanapplicationforreviewoftheCEO’sdecisionaboutadutyassessmentontinplateexportedfromTaiwan.InDecember2003,AmcorfiledanamendedapplicationseekingtosetasidetheMinister’sdecisiononthedutyassessment.ThematterwasheardbytheCourton6December2004andsettledsubsequenttothehearing

ThreenewmatterswerereferredtotheCourtin2004–05:

• InOctober2004,LGElectronicsIncorporated(LGE)andLGElectronicsAustraliaPtyLtd(LGEAP)lodgedanapplicationseekingtosetasidethedecisionsoftheMinister,theCEOanddelegatesoftheCEO,fortheimpositionofinterimdumpingdutiesonexportsofwashingmachinesexportedfromtheRepublicofKorea(Korea).TheFederalCourtfoundinfavouroftheMinister,theCEOanddelegatesoftheCEO.LGEandLGEAP’sappealtotheFullCourtisexpectedtobeheardinAugust2005

• InSeptember2004,InglewoodOliveProcessorsLimited(Inglewood)askedtheCourttosetasidethedecisionsoftheCEOandtheTMROtoterminatetheinvestigationintotheallegedsubsidisationofcertainoliveoilexportedfromGreece,ItalyandSpain.TheCourtfoundinfavouroftheCEOandtheTMRO.InglewoodappealedtotheFullCourtinJanuary2005.Theappealwasheardon9May2005.TheFullCourthandeddownitsdecisionon31May2005infavouroftheCEOandtheTMRO

• InNovember2004,AustralianVinylsCorporationLimited(AVC)soughtareviewoftheCEO’sdecisiontorejectanapplicationforcontinuationofanti-dumpingmeasuresforPVCexportedtoAustraliafromHungaryandKorea.InDecember2004,Customsagreedtoconsentorderssettingasidethedecisionandremittingthematterforreconsideration.


ToachieveCustomsobjectivesforthisOutput,Customsstaffwillcontinuetoimprovebusinesspracticesandpromoteconsistencyindecisionmaking.Customswillalsoparticipatein:

• theWTOreviewofanti-dumpingandsubsidiespractices

• anygovernmentinitiatedreviewsoftheanti-dumpingadministration.

Perfor

man

ce rep

ortin

g

Out

put

5


Section �EnablingOutputs

Photo:MarkBentley,withacrewmember,checkingthevisitorslogonboardavessel.


Corporate governance

Customscorporategovernancearrangementsseekto:

• maximiseorganisationalperformance

• complywiththelaw,regulations,publishedstandardsandcommunityexpectationsforprobity,accountabilityandtransparency

• supportstaffincarryingouttheirresponsibilities.

Governancearrangementsarebasedontheseprinciples:

• clearlinesofdecision-makingandauthoritythroughmanagementrules

• strongleadershipprovidedthroughtheExecutiveGroupandotherinternalcommittees

• strongrelationshipsandconsultationprocesseswithexternalstakeholders,includingconsultativebodiessuchastheCustomsNationalConsultativeCommitteeandtheNationalPassengerProcessingCommittee

• well-definedcorporateplanningandperformancereportingprocesses

• benchmarkedhumanresourcepoliciesandstrategies

• personalresponsibility,withAustralianPublicServicevaluesandcodeofconductclearlyidentifiedandreinforcedandagoodstaffawarenessofprobityissues

• disciplinedbudgetprocessesandfinancialmanagement

• riskmanagementpoliciesandapplication

• regularreportingtotheexecutive

• internalreviewsandlearningfrompastexperience

• aservicedeliverycharterandmonitoringofperformance

• sustainabilityofpoliciesandpractices.

Policiesondelegationsandbusinesscontinuitywereupdatedaswerethemanagementrules.AnewprocessonBusinessPracticeNetworkswasfinalisedtoprovideaforumforsharingexperience,promotingconsistencyandgoodpractice.

TheBusinessPracticeNetworksprocessisnowincludedintheManagementRules.

Organisational structure

Customsorganisationalarrangementswerealteredin2004–05.TheOfficeofBusinessSystems,thedivisiontaskedwiththeintroductionofCargoManagement.Reengineering(CMR),wasphasedoutfollowingtheimplementationoftheexportcomponentoftheIntegratedCargoSystem(ICS).

ResponsibilitiesforCMRdevelopmentandimplementationweresplitbetweentheCargoandTradeDivisionandtheInformationandOfficeTechnologyDivision.Customsisnoworganisedintosixnationaldivisions:

• CargoandTrade

• BorderIntelligenceandPassengers

• BorderComplianceandEnforcement

• Coastwatch

• InformationandOfficeTechnology

• FinancialServices.

Divisionsaresupportedbyfournon-alignedBranchesorunits:

• PlanningandInternational

• Staffing

• CustomsLegalUnit

• InternalAffairsUnit

CustomsoperatesamatrixmanagementsysteminwhichregionalstructuresdeliverservicesinStatesandTerritories.

Customsalsousescompetitivetenderingandcontractingarrangementstosupplementthecorebusinessskills.MajoroutsourcedfunctionsincludeITsupport,legalservices,logisticsarrangementsforcontainerexaminationfacilities,andinternalaudit.Customsalsocontractssomerecruitmentandselectionservices.MoreinformationcanbefoundintheCorporateResourceManagementsectiononpage122.

InternationalsupportisprovidedthroughpermanentrepresentationatoverseaspostsinBangkok,Beijing,Brussels,Jakarta,TokyoandWashington.ThelocationsofofficesinAustraliaisillustratedinFigure43.

Corporategovernance ��

Chief Executive OfficerLionelWoodward

Deputy Chief Executive OfficerJohnJeffery

Deputy Chief Executive OfficerJohnDrury

Senior Government SolicitorCustoms Legal UnitKirstenWhitehouse

ManagerInternal AffairsGeoffLanham

Risk Identification and Intelligence NationalManager PeterThomson Law Enforcement and Intelligence NationalManager JohnValastro Passengers NationalManager TimChapman

Compliance NationalManager JeffBuckpitt Enforcement Operations NatioanalManager BrianHurrell Research and Development NationalManager RoxanneKelley Investigations NationalManager RichardJaneczko

Coastwatch DeputyDirector-General TomMarshall

Information Management NationalManager PeterNaylor Information Technology NationalManager JamieMacgregor IT Applications NationalManager MichelleKinnane IT Market Testing NationalManager JoHein

National Director Border Intelligence and Passengers

GailBatman

National Director Cargo and Trade

PhilBurns

National Director Border Compliance and Enforcement

MarionGrant

Director-General CoastwatchRear-AdmiralRussCrane

Chief Information Officer Information

and Office TechnologyMurrayHarrison

Cargo NationalManager PhilomenaCarnell Trade NationalManager AndrewRice Trade Measures NationalManager SuePitman Cargo Systems NationalManager MatthewCorkhill

Chief Financial OfficerFinancial Services Division

JonBrocklehurst

National ManagerStaffing

AnnwynGodwin

National ManagerPlanning and InternationalChristineMarsden-Smedley

Governance G

roup

New South Wales Regional DirectorDavidCollins

Regional Managers Gayle Brown Jane Bailey Graeme Charlwood

Victoria Regional DirectorJaclyneFisher(A/g)

Regional Managers Graham Krisohos (A/g) Geoff Johannes

Queensland Regional DirectorJennyEutick

Western Australia Regional DirectorPaulO’Connor

South Australia Regional DirectorVirginiaLynch

Northern Territory Regional DirectorJohnMarks

Tasmania Regional DirectorJohnEldridge

Regions

Enab

ling

Out

puts

Co

rpor

ate

gove

rnan

ce

Darwin

Christmas Island

Thursday Island

TownsvilleCairns

Mackay

Bundaberg

Coffs Harbour

Lord Howe Island

Newcastle

SydneyWollongong

Eden

Melbourne

Launceston

Hobart

Burnie

Adelaide

Port Lincoln

EsperenceAlbury

Bunbury

Fremantle

Port HeadlandDampier

Broome

Brisbane

Coolangatta

Gladstone

Geraldton

Carnarvon

Gove

Weipa

Portland

Port Pine

Canberra

Richmond

Figure ��: Locations of Customs offices in Australia

Senior executive and their responsibilities

Figure ��: Organisational chart (June �00�)


Senior management committees and their roles

Committeesplayanimportantroleinconsultationandinformeddecisionmaking.ThekeymanagementcommitteesinCustomsaretheExecutiveGroup,theAuditCommitteeandtheSeniorExecutiveServiceConference.OtherkeycommitteesinCustomsinclude:

• BusinessContinuityPlanningSteeringCommittee

• CustomsSecurityCommittee

• FlexibleDeliverySteeringCommittee(training)

• InformationManagementProjectCommittee

• InformationManagementStrategyCommittee

• IntegratedCargoSteeringCommittee

• NationalPrioritiesCommittee.

Regionalcommitteesareestablishedwhennecessary.

Thekeymethodsofinternalcommunicationwithstaffincludemanagementbriefs,‘allstaff’messagescirculatedbyemail,weeklysectionmeetings,theCustomsintranetforcorporateinformationsuchaslegislation,policies,procedures,guidelinesandadvices,aweeklybulletinandastaffnewspaper,Customs News.

ExecutiveGroup

TheExecutiveGroupisacorporateforumthatmeetsweeklytodiscussmajorpolicyandmanagementissues.ThisgroupcomprisestheCEO,DeputyCEOs,theChiefInformationOfficer,theChiefFinancialOfficer,NationalDirectors,RegionalDirectorsNewSouthWalesandVictoriaandNationalManagerPlanningandInternational.

OnceamonththemeetingisattendedbyallSeniorExecutiveServiceandRegionalDirectors,thelatterattendingbyvideoconferencelink.

AuditCommittee

TheAuditCommitteeadvisestheCEOonaudit,evaluation,fraudandrisk-managementissues.ThecommitteecomprisestheDeputyCEOswhochairtheCommitteeonrotation,twoNationalDirectors,aRegionalDirectorwiththeChiefFinancialOfficerasanobserver,NationalManagerPlanningandInternationalandan

externalmemberoncontract.PartnersofCustomsauditprocessalsoattendwiththeAustralianNationalAuditOffice(ANAO).

InFebruary2005,theANAOpublishedaBetterPracticeGuideonPublic Sector Audit Committees.ThisguidewaspresentedtotheAuditCommittee,withasummaryofrelevantpoints.TheAuditCommitteeexaminedthesedocumentsandincorporatedchanges.

SeniorExecutiveService/RegionalDirectorsConference(SES/RDs)

CustomsSeniorExecutivesfromallbranchesandregionsmeetface-to-facebiannuallytodiscussstrategicmanagementissuesandfuturedirections.SES/RDsConferenceswereheldinNovember2004andMay2005.Itemsdiscussedincludedthemanagementrules,strengtheningtheplanningandperformanceframework,formationofarecruitmenttaskforcetoexamineresourceissuesandstandingitemsofbudget,humanresourcesandinformationtechnology.

External consultative mechanisms

CustomsNationalConsultativeCommittee(CNCC)

TheCNCCmeetsquarterly.ItprovidesaforumforthediscussionofCustomspolicyandproceduralissuesrelevanttotheinternationaltradingcommunity,businessandCustomsspecialists.MembershipoftheCommitteeisdrawnfromCustomsagentassociations,theCustomsBrokersandFowardersCouncilofAustralia,theAustralianFederationofInternationalFowarders,theLawCouncil,Customsconsultantsandimporterrepresentatives.DiscussionincludedCMR,ContainerExaminationFacilitiesandSupplyChainSecurity.MinutesfromCNCCmeetingsarepostedontheCustomsInternetsite.

Customs,Immigration,QuarantineandTransportCommittee(CIQT)

TheCIQTCommitteeensurescoordinatedprogressofbordermanagementpolicyandrelatedissuesacrossthesekeyagencies.MembershipcomprisesagencyheadsfromCustoms,theDepartmentofImmigrationandMulticulturalandIndigenousAffairs,theDepartmentofAgriculture,FisheriesandForestry

Australia,theDepartmentofTransportandRegionalServicesandaDeputyfromeachdepartmentoragency.

HeadsofCommonwealthOperationalLawEnforcementAgencies(HOCOLEA)

HOCOLEAisthebroadconsultativemechanismforCommonwealthlawenforcementpolicy.HOCOLEAisaforumforagencyheadsfrom11Commonwealthlawenforcementandregulatorydepartmentsandagencies.Customsprovidessecretariatsupport.

CustomsparticipatesinseveralHOCOLEAworkinggroups,includingtheWorkingGrouponCorruptionwhichischairedbyCustoms.ThisWorkingGroupwasestablishedinlate2004toenhanceanti-corruptionprograms.

WorkingGroupmembersshareinformationontrainingregimes,andarecurrentlyexploringtheproductionofabetterpracticeguide.

AustralianCrimeCommissionBoard

TheCEOofCustomscontributestothedevelopmentofnationalcriminalintelligenceprioritiesandthestrategicdirectionoftheAustralianCrimeCommissionthroughmembershipoftheAustralianCrimeCommissionBoard.

TheBoardmembershipenablesCustomsstrategicissuestobeincorporatedintothebroaderlawenforcementagenda.Inreturn,CustomsisabletocontributeresourcesandideastoenabletheobjectivemanagementoftheAustralianCrimeCommission’sagenda.

Corporategovernance 101

Enab

ling

Out

puts

Co

rpor

ate

gove

rnan

ce

Julie Drew (Australian Federal Police), Michael Monaghan (Australian Taxation Office), John Drury (Customs) and Alan Turton

(Australian Securities and Investment Commission) at the signing of the Memorandum of Understanding for the HOCOLEA

Capability Project


Enhancing coordination, communication and cooperation with key international stakeholders

Customs,byitsnature,hasalargeinternationalagenda.BilateralintelligencecooperationwithothercustomsadministrationsismanagedlargelythroughMemorandaofUnderstandingortheWorldCustomsOrganization(WCO)RegionalprocessesandtheLiaisonOfficehostedbyChina.

Customsalsoexchangesregionalintelligence,operationalinformationandotherorganisationalinformation.TwonewMemorandaweresigned,onewithPapuaNewGuineaandtheotherwithFiji.TheAsia-PacificregionisanimportantoneforCustomsandmostcapacitybuildingeffortisdirectedtotheregion.SuchcooperationassistsCustomsadministrationstoimprovesecurityandfacilitation.

Notableachievementsininternationalcooperationin2004–05include:

• establishmentofnewpostsinBeijingandJakarta

• formalbilateraltalkswiththecustomsadministrationsofHongKong,China(November2004),PapuaNewGuinea(April2005),Malaysia(May2005)andIndonesia(May2005)

• CustomsreformandmodernisationcapacitybuildingactivitiesinPapuaNewGuinea,IndonesiaandSolomonIslands

• hostingseveralseniordelegationsincludingSouthAfrica(October2004),China(AugustandDecember2004),Fiji(February2005)NewZealand(February2005),UnitedArabEmirates(May2005)andZambia(May2005).

Customsisactiveinanumberofinternationalforums,includingtheAsiaPacificEconomicCooperation(APEC),theWCO,theOceaniaCustomsOrganisation(OCO)andASEAN.WiththeparticipationoftheCEOforthefirsttimeattheCustomsHeadsmeeting,CustomscommencedcloserdialoguewithASEAN.

AsamemberoftheWCOPolicyCommissionfor2004–05,Australiacontributedtodebateonstrategicdirectionsforinternationalcustomspracticesincludingthesupplychainsecurityagenda,tradefacilitation,improvedgovernanceandcapacitybuilding.

CustomsparticipatedactivelyintheAPECSub-committeeonCustomsProceduresin2004–05includingchairingtheTradeFacilitationWorkingGroupandsupportingtheSub-committee’sactivitytopromoteintegritymeasuresinmemberadministrations.

InSeptember2004,AustraliaaschairoftheWCOdatamodelworkinggroup,encouragedtheSub-CommitteeonCustomsProcedurestoacceptdataharmonisationandmakefurtherprogresstowardsasinglewindowofe-commerce.

Washington post staff, left to right: Lee-Ann Ticktin,

Dean Hogarth and Teresa Conolan in Washington.

Enab

ling

Out

puts

Co

rpor

ate

gove

rnan

ce

Customs teams – working for Australia in Beijing and Jakarta

Customs has opened liaison offices in Beijing and Jakarta, reflecting the priority that the Australian Government places on strengthening the relationships with these neighbours.

Bothoffices,openedthisyearbytheMinisterforJusticeandCustoms,SenatortheHonChrisEllison,enableCustomstoengagedirectlywithcounterpartsonimportantareasofmutualinterest.

WithChinabeingthethird-largesttradingpartnerofAustralia,establishmentoftheBeijingofficeisalandmarkstepthatrecognisestheimportanceofthisrelationshiptogovernment,tradingenterprisesandpeopleofbothcountries.ChinaandAustraliaarefinalisingajointstudyonthefeasibilityofabilateralfreetradeagreement.

TheCustomsteaminBeijingisexpectedtoworkonissuessuchastradefacilitation,traderemediesmatters,andinvestigationsintoallegedbreachesofrespectiveCustomslegislation.Inaddition,bothadministrationshavereachedanagreementfor2005–06toprovidetechnicalcooperationondrugdetectordogs.

Corporategovernance 10�

EstablishmentoftheCustomsofficeinJakartaisalandmarkstepthatfollowsinthespiritoftheJointDeclarationonComprehensivePartnershipbetweenAustraliaandIndonesiaannouncedbythePrimeMinisterJohnHowardandIndonesianPresidentDrSusiloBambangYudhoyonoon4April2005.

TheJakartapostwillprimarilyaddressbordersecurityandtransnationalcrimeissuesthataffectbothcountries.Theseissuesincludeillicitdrugs,peoplesmugglingandterrorism,whereriskstoAustraliamighthaveoriginatedinorpassedthroughIndonesia.BothadministrationsareworkingtogethertoimprovesecurityatkeyIndonesianportsincompliancewithInternationalMaritimeOrganisationsecuritystandards.

ThenewofficesaddtoexistingliaisonofficesinBangkok,Brussels,TokyoandWashington.

Mr Zhang Qing Hai, Deputy Director General,

Anti Smuggling Bureau, General Administration of

China Customs, and Mr Tom Anderson, Australian Customs

Representative China, are pictured at the signing of the

Co-operation Arrangement between the General

Administration of China Customs and the Australian

Customs Service on drug detector dogs for 2005–06.

Senior Australian Customs Representitive Jakarta with

members of the ship search training team


OtherkeyAPECinitiativesCustomssupportedwere:

• theFrameworkofStandardsforsecuringthesupplychainandfacilitatingtradeasanewagendaitem

• furthertimereleasesurveysfortradeprocedures.

TheOCOrevieweditscharterthroughanAustralia/NewZealand/OCOsecretariatworkinggroup.TheOCOworkprogramexpandedconsiderablyandanewsetofgovernancearrangementswereagreedattheGuamAnnualConferenceinMarch2005.Thefuturelocationofthesecretariatwasdiscussedandtheperiodforfindinganewlocationwasagreed.Australiawillbethefacilitatorforacapacitybuildingworkinggroup.

AsignificantprogramofcapacitybuildingactivitywasprogressedinPapuaNewGuinea,IndonesiaandSolomonIslands.AnothercapacitybuildingprogramwillcommenceinAugust2005inTonga.

AwiderangingandcomprehensivediagnosticofPapuaNewGuineaCustomswasundertaken.AworkprogramhasbeendevisedandfourofficersassignedtopositionsinPapuaNewGuineaCustomstodeliverthereformandmodernisationprogram.FundinghasbeenprovidedundertheAusAIDEnhancedCooperationPackage.

ThefirstplacementscoverpassengerprocessingatJacksonsAirfield,intelligencedevelopment,cargopolicyandpractiqueandborderenforcement.

CooperationbetweenofficialsfromCustoms,theDepartmentofImmigrationandMulticulturalandIndigenousAffairsandtheDepartmentofTransportandRegionalServicesworkinginPapuaNewGuineaisimprovingbordersecurity,particularlyatPapuaNewGuinea’smaininternationalairportandatseaports.

ApackageofsupportisbeingprovidedtoIndonesianCustomsundertheSpecialTravelSecurityFundaimedatenhancingbordersecurity.Projectplanningwasundertakenandahighlysuccessfulshipsearchtrainingprogram

organised.Intelligenceanalysttrainingandtechnologicalsupportinitiativesaretobeprogressedin2005–06.

TheSolomonIslandsDivisionofCustomsandExcisereceivedtwoCustomsofficerstoreviewanddeliveraprogramofsupportincargomanagement.AusAIDprovidedfundingunderaPacificGovernanceprogram.

Indeliveringthesecapacitybuildingprograms,CustomsworkscloselywiththeDepartmentofForeignAffairsandTrade,theAustralianAgencyforInternationalDevelopment(AusAID)andotherparticipatingagencies.

Customshostedthe16thCustomsInternationalExecutiveManagementProgramduringSeptemberandOctober2004.Theprogramdevelopsmanagementskillsandpromotesinternationalcustomscooperation.ItalsoprovidesagreatopportunityfornetworkingwithintheAsia-Pacificregion.NineteenparticipantsfromdifferentcustomsadministrationsattendedforsixweeksofintensiveCustomsmanagementtraining.Manyalumnihavegoneontoveryseniorrolesintheirorganisations.

Corporate planning

ThePlanningandPerformanceFrameworkwasstrengthenedwiththeintroductionofmid-cycleandend-of-cyclereportingagainstNationalBusinessPlansandWorkAreaPlans.ThesereportsindicatelevelsofworkareacomplianceagainstcorporateandCommonwealthpoliciesandguidelines.

CorporatePrioritiesfor2005–06weredevelopedafteranassessmentofstrategicrisks.Workareasimplementrelevantprioritiesthroughtheirbusinessplansandworkareaplans.

CustomsdevelopedarevisedOutcomeandOutputsstructureforthe2005–06PortfolioBudgetStatement.TheOutputsreflecttheorganisationalstructure,providebettertransparencyfortheallocationoffinancialresourcesandsupportrevisedperformancemeasures.DevelopmentofanewCorporatePlanwasheldoverpendingfinalisationoftheOutcomeandOutputsstructure.

Corporategovernance 10�

AsaresultofrecommendationsbytheAustralianNationalAuditOffice,CustomshasagreedtoreflectservicesprovidedtoandfromCommonwealthandStateagencies.RecognitionofkeyagencieshasbeenidentifiedinthisreportunderOutcomeperformancereporting.

Risk management

Customsintegratesriskmanagementintobusinessplanningandprojectimplementationto:

• improvedecisionmaking

• minimiseimpactofriskeventsonoperationalactivities

• directresourcesintoareasofgreatestrisk.

Forbusinessplanning,Customsdevelopedastrategicriskassessmentwhichunderpinsdevelopmentofannualcorporatepriorities.

RiskmanagementpolicyisdescribedintheChiefExecutiveInstruction,acorporatepolicyandguidancefromtherevisedAustralianStandardforRiskManagementAS4360:2004.

Customswasassessedatfourstarsoutoffiveinanannualrisk-managementbenchmarkingsurveyconductedbyComCover.Oneareaofweaknesswastrainingandawareness.Aprojecthasbeensetuptomakeimprovementsinthisareainthecomingyear.

Internalaudit

CustomsInternalAuditUnitfacilitatesastrongcontrolenvironmentthroughreviewsofhigh-riskareas,aswellasregularauditsofCustomsfunctions.InternalAuditreportsprovideassurancetoseniormanagementonthequalityofinternalcontrolsandprocedures.Italsohelpstoimprovebusinesspracticesbyprovidingrecommendationstotheareasaudited.

Theauditplanisdevelopedandupdatedannually.Itisarisk-basedprogram,inlinewitheachbranchesbusinessplan.Thisistoensurethatthebranchescoreprioritiesandrisksareaddressed,andthesearethenmappedagainstcorporateprioritiesandstrategicrisks.TheplanisendorsedannuallybytheExecutiveandtheAuditCommittee.

InternalAuditreviewsincludedCargoManagementReengineeringfinancialmanagement,andmanagementofinformationandinformationtechnology.

Atotalof26internalauditsandreviewswerescheduledandcompletedduring2004–05,onemorethanin2003–04.Eighty-fivepercentofauditswereacombinationofperformance,compliance,financialandITauditswiththeremaining15percentbeingsystem-under-developmentreviews.

Business continuity

Anewframeworkwasdevelopedcoveringprinciples,roles,responsibilitiesandtestingrequirementsforinternalbusinessowners.ItallowsCustomstoassignapriorityordertotherecoveryofcriticalbusinessfunctionsinemergencyevents.TheframeworkrecognisesthatcontinuityofCustomsactivitiesareessentialfortheeconomicandsocialwell-beingofAustralia.

Certification of fraud measures

Customsfraudriskassessmentandfraudcontrolplanwasupdatedon14June2005andCustomscomplieswiththeCommonwealth Fraud Control Guidelines.Thenewfraudcontrolplanencompassesasummaryofrisksidentifiedinfraudriskassessmentanddetailsofstrategiestoaddressrisk.Appropriatefraudprevention,detection,investigationandreportingproceduresandprocessesareinplaceanddatacollectedandreportedcomplieswith the Commonwealth Fraud Control Guidelines.

Enab

ling

Out

puts

Co

rpor

ate

gove

rnan

ce


Management of human resources

FinancialpressurescreatedachallengingyearforCustomsstaffing.

IncreasedgovernmentcommitmentstoborderprotectionproducedsignificantoperationalpressuresasCustomssoughttorespondmorequicklytochangedworkloaddemands.

AdditionalstaffwererequiredforactivitiesincludingSouthernOceanMaritimePatrolandResponse,ContainerExaminationFacilities,firstportboardingofvesselsenteringAustralia,NationalMarineUnitpatrolsandinternationalcapacitybuilding.

Customsredeployedstaff,recruitedadditionalstaff,andconsideredmoreflexibleemploymenttomeetoperationalrequirements.Thedelayscausedbyastructuredrecruitmentprocess,exhaustivesecurityclearanceprocessesandtherequirementtofullytrainstaffbeforeoperationaldeploymentputpressureonoperationalareas.

Taskforcesonhumanresourcedevelopmentandrecruitmentwereestablishedtoconsidervariationsintrainingandrecruitmentstrategiestodeliveraflexibleworkforcethatcanrespondquicklytochangedworkloaddemandsandmeetgovernmentexpectations.Immediateoutcomesare:

• thetrialemploymentof40officersonanirregularandintermittentbasis,

• aprojecttoexaminefitnessstandardsrequiredforachangingworkenvironment

• developmentofnationalonlineentryandexitsurveys.

AnOrganisationalHealthProjectwasestablishedtolookatcreatingandsustainingahigh-performingworkforce,andconsiderthemanagementpracticesthatsupportandpromoteahealthyenvironment.Itwillalsofocusonearlyinterventionstrategiesandimprovedrehabilitationandreturn-to-workstrategies.

Workforce planning

Keypolicies,guidelinesandtoolkitsweredevelopedorrevisedtopromoteworkforcepolicies.Theseincludedassignmentandcareermanagementpolicy,managingunderperformance,managingchange,leadingteams,induction,attendancemanagement,conditionsofengagementandprobation.

CustomsreviewedtheNationalStrategicWorkforcePlanandtheoutcomewasthathumanresourcestrategiesweremorecloselyalignedwiththeCustomscorporatepriorities.Theplanprovidesanalysisofworkforceprofiledetailingdemographics,trendsandprogressagainststrategies.

Customscontinuedtodevelopstrategiestoreduceunscheduledabsencesfromtheworkplace,includingprovisioninthenewCertifiedAgreementofabonusof$150toallstaffifabsenteeismisreducedbyoneormoredaysoveracomparativeyear.

Staff turnover and retention

TherateofongoingstaffseparatingfromCustomsaveraged5.86percentin2002–03,6.36percentin2003–04and6.62percentin2004–05.Whileseparationrateshaveincreased,theyarewithinacceptablebenchmarklimits.

Analysisrevealedsignificantnumbersofseparationsatspecificlevelsinspecificregions,especiallytheAustralianCapitalTerritory,NewSouthWalesandtheNorthernTerritory.Theseincludedhigherthannormalage-basedretirements(CustomsLevel4),andresignations(CustomsLevel1).

Staffing profile

Customsplannedforanestimatedaveragestaffinglevel3of4630stafftoenablethedeliveryofCustomsOutcome.Theaveragestaffinglevelin2004–05was4686.

Customstotalworkforce4at30June2005was5055.Thiscomparesto4806staffat30June2004.

3ASListheaverageoftheendofmonthFull-timeEquivalent(FTE)staffaspaidbytheorganisation.

4Actualheadcount.

AreaswhereadditionalstaffwererequiredincludedSouthernOceanMaritimePatrolandResponse,ContainerExaminationFacilities(CEF)andanadditional19stafftoundertakefirstportboardingofvesselsinAustralia.RecruitmentforCEFoperationsandfirstportboardingwasintegratedwiththeCustomsTraineerecruitmentprogram.

Customsrecruited636staff,including328Customstrainees,toaddressstaffshortagesbroughtaboutbytheredeploymentofstaff.ThereweredifficultiesinattractingsufficientsuitableapplicantsforparttimepositionsinNewSouthWales.Thisaddedtothepressuresbeingexperiencedattheairportduetoincreasedpassengernumbers.

Customsrecruitedeightgraduatetraineesin2004and12graduatetraineesin2005.

At30June2005,CustomshadstaffinallStatesandTerritoriesofAustraliaasshowninFigure45.

CustomsstaffalsoholdpostsinBangkok(1),Beijing(1),Brussels(1),Jakarta(1),Tokyo(1),andWashington(2).SomestaffaretemporarilyassignedtocapacitybuildingprojectsinPapuaNewGuinea(4)andSolomonIslands(1).

Figure ��: Staff employment category by location at �0 June �00�*

ACT# NSW VIC QLD SA WA TAS NT Total

Full-Time

Ongoingemployee 1025 1138 760 630 153 434 31 109 � ��0

Non-ongoing 102 8 4 8 - 2 - - 1��

Full-time total 1 1�� 1 1�� 1�� 1 10� � �0�

Part-Time

Ongoingemployee 43 233 153 106 26 58 1 5 ��

Non-ongoing 12 6 - 3 - 2 - - ��

Part Time total �� 1�� 10� �� 0 1 � ��

Casual

Non-ongoing 1 1 - - - - 1 - �

Total 1 1�� 1 �� 1� �� 1�� 11� � 0��

Males 750 832 564 446 97 304 20 57 � 0�0

Females 433 554 353 301 82 192 13 57 1 ��

Total 1 1�� 1 �� 1� �� 1�� 11� � 0��

* IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystem).Financialstatementsreportonstaffnumbersbyfull-timeequivalent(FTE).

# ACTfiguresincludeNationalMarineUnit.

Managementofhumanresources 10�

Customs officer Mary Griess at Sydney airport.

Enab

ling

Out

puts

H

uman

res

ourc

es


Figure ��: Staff numbers by classification at �0 June �00�*

*IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystem).Financialstatementsreportonstaffnumbersbyfull-timeequivalent(FTE).

ÎndigenousCadetsarefundedbyAustralianCapitalTerritory(CentralOffice)forthetermoftheircadetshipandlocatedinregions,oneeachinAustralianCapitalTerritory,WesternAustraliaandNewSouthWalesandthreeinQueensland.

+ SeniorExecutiveServiceincludesongoingSESemployedunderthePublic Service Act 1999,includingthreenon-SESstaffonhigherduties.ItdoesnotincludetheChiefExecutiveOfficerwhoisthestatutoryofficeholder.

Figure ��: Staff classification and location at �0 June �00�*


IndigenousCadet^ 1 1 - 3 - 1 - - �

Graduate 12 - - - - - - - 1�

Trainee - 46 39 21 22 14 - 16 1��

CustomsLevel1 237 717 446 449 68 267 13 46 � ��

CustomsLevel2 230 376 248 170 51 122 13 30 1 ��0

CustomsLevel3 358 181 137 77 31 71 6 15 ��

CustomsLevel4 221 48 33 20 6 18 - 6 ��

CustomsLevel5 96 13 11 6 1 2 1 1 1�1

SeniorExecutiveService+ 28 4 3 1 - 1 - - ��

Total 1 1�� 1 �� 1� �� 1�� 11� � 0��

*IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystems).Financialstatementsreportonstaffnumbersbyfull-timeequivalent(FTE).



+ SeniorExecutiveServiceincludesongoingSESemployedunderthePublic Service Act 1999,includingthreenon-SESstaffonhigherduties.ItdoesnotincludetheChiefExecutiveOfficerwhoisthestatutoryofficeholder.

Enab

ling

Out

puts

H

uman

res

ourc

es

Customs teams – Customs in Tasmania: ‘small but significant’

Customs staff in Tasmania perform a vital role in the national Customs effort.

BasedinBurnie,LauncestonandHobart,thestaffundertakethesamecoreborderprotectionrolesasmainlandstaff.Theseincludeoverseasvesselclearance,crewmusters,vesselsearches,wharfpatrols,intelligence,operations,audit,cargomovementandcorporateresponsibilities.

CustomsworkscloselywithotherCommonwealthagenciesincludingDIMIA,AQISandDOTARStoundertakeavarietyoftasks.ItalsoworkscloselywiththeTasmaniaPolicewhereastrongrelationshiphasdevelopedtoshareresourceswhenrequired,suchasdetectordogs,ionscan,x-rayandintelligence.


ButlikeeveryCustomsregion,Tasmaniahasanumberoftasksinwhichtheyspecialise.Stafffromsixworkareascombinetofacilitatethemovementofupto3000passengersand1200crewfromarrivingcruiseshipsinthepeaksummerperiod.Thisfacilitationisundertakeninafour-hourperiodinmakeshiftfacilitiesanddemonstratestheversatilityoftheseofficers.Increasedworkloadisalsocarriedoutinthefacilitationofexpeditioners,crewandcargofortheAustralianAntarcticProgram.

TheTasmanianteampridesitselfonproducinghighqualityoutputsthroughexpertisebuiltondiversityandmultiskilling.ThisexpertisewasindicatedbytheselectionoftwoTasmanianstafflastyearforplacementinPapuaNewGuineaaspartoftheAustralianGovernment’sEnhancedCooperationProgram.

Mark-Alan Lim (left) and Paul Griggs (right) in Customs in Tasmania, conducting an inspection of a consignment of

unaccompanied personal effects.


Workplace diversity

CustomsimplementedanewWorkplaceDiversityPolicyandWorkplaceHarassmentPolicybypromotingawarenessofthepolicies,rolesandresponsibilitiesofallemployees.

TheNationalWorkplaceDiversityCoordinatorsandRegionalEquityContactOfficersnetworkswererevitalised.Culturalawarenesssessionswereconductedandcalendarofeventsofsignificancewereproduced.SpecificeventssuchastheInternationalDayofPeoplewithaDisabilityandNationalAboriginalandIslanderDayObservanceCommittee(NAIDOC)activitieswereincludedinthecalendar.Customsimplementedanationalworkplaceharassmentreportingprocesssothatallemployeescanreportincidentsofharassmentinasafeandconfidentialmannerandthesecanbereviewedandanalysedcentrally.

CustomsappointedthreeIndigenousentry-leveltraineesinOctober2004.Thesetraineesaresupportedthroughanaccreditedtrainingqualification.CustomsassistedtencadetsintheNationalIndigenousCadetshipProject,twoofwhomwereengagedoncompletionoftheirstudies.

Figure48showstherepresentationofequityanddiversitygroupsinCustoms.Therewasaslightriseintheproportionoffemaleemployeesbutslightproportionaldecreasesinallothergroupscomparedwithstaffingfiguresasat30June2004.Thesefiguresrelyonvoluntaryself-identificationandcompliancelevelsvaryfromyeartoyear.

Training and development

Customsdevelopednewinitiativesfortraininganddevelopmenttomeetchangingworkloads.

TheAustralianNationalTrainingAuthorityendorsedapublicsectortrainingpackageonborderprotectiondevelopedbyCustoms.Customsreceivedaccreditationtoissuetwonewqualifications,aCertificateIIIandCertificateIVinGovernment(BorderProtection).

ArangeofcurrentlearninganddevelopmentpoliciesandprogramswasintegratedandlaunchedasCustomsFrameworkforLearningandDevelopment2005–07.

Figure ��: Representation of equity and diversity groups by staff classification at �0 June �00�*

Female Born Overseas~ People with disabilities Indigenous

Number % Number % Number % Number %

IndigenousCadet^ 6 100.0 - - - - 6 100.0

CustomsGraduateTrainee 9 75.0 3 25.0 - - - -

CustomsTrainee 67 42.4 27 17.1 - - 1 0.6

CustomsLevel1 989 44.2 326 14.5 41 1.8 48 2.1

CustomsLevel2 481 38.8 140 11.3 34 2.7 16 1.3

CustomsLevel3 284 32.4 93 10.6 23 2.6 5 0.6

CustomsLevel4 102 29.0 43 12.2 5 1.4 1 0.3

CustomsLevel5 32 24.4 18 13.7 3 2.3 - -

SeniorExecutiveService 15 40.5 5 13.5 3 8.1 - -

Total 1�� .� �� 1�.0 10� �.� �� 1.�

*IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors,consultingorActingOfficersofCustoms.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystem).

~NumberofstaffbornoutsideAustralia.


Enab

ling

Out

puts

H

uman

res

ourc

es

Athree-stepassessmentanddevelopmentmethodologywasdevelopedtoaligntrainingcoursesagainstcompetencies.

Anationalcompetencydatabaseisbeingdevelopedtorecordindividualcompetencies,andsupportcareerandsuccessionmanagementwithinCustoms.

Certified Agreement

CustomsnegotiatedanewCertifiedAgreementforpayandconditionsfor2004–2007.Thepayincreasesandotherconditionenhancementswillbefundedfromproductivitygains.

Followinglengthynegotiationswithstaff,theAustralianIndustrialRelationsCommissioncertifiedtheagreementon23December2004.DuringthenegotiationstherewasanationalstrikecalledbytheCommunityandPublicSectorUnion.Around25percentofstaffparticipatedinthestrike,buteffectivecontingencyplanningbyoperationalareasresultedinnosignificantadverseimpactonoperations.

Customs teams – an individual’s support for a team initiative in diversity and cross-cultural awareness

The Customs workforce comprises staff from diverse backgrounds who interact with clients from equally varied cultural backgrounds to regulate international trade and travel. Customs supports training in diversity, cultural awareness and cross-cultural communication for its staff.

AfterattendingacounterterrorismtrainingsessiongiventostaffatSydneyInternationalAirport,MsAdas,suggestedthatfellowofficerswouldbenefitfromanunderstandingofthegeneraltenetsofIslam.GivenherknowledgeofIslam,MsAdasdevelopedanddeliveredanIslamicinformationsessiontosupplementthecounterterrorismtrainingtoofficersinSydneyandBrisbane.Thetrainingreceivedveryfavourablefeedback.

Shealsohelpedassessandreviseapassengerassessmenttrainingmoduleindiversityandcross-culturalcommunicationfornationalrelease.ThisworkoccurredinconjunctionwithtrainersinSydney,theNSWWorkplaceDiversityCoordinatorandtheNationalTrainingCoordinator.

MsAdasiscurrentlyworkingintheHumanResourcesStaffingteam,havingpreviouslyworkedinPassengersEnforcementatSydneyInternationalAirport.Sherecentlycompletedamasterofartsinpeaceandconflictstudies.Trainingindiversityandculturalawarenessenablesofficerstocommunicateeffectively,tochallengeperceptionsandtomakeinformedandsoundriskassessments,whichultimatelyreflectswellonCustomsasaprofessionalorganisation.

Managementofhumanresources 111

Customs officer Wissam Adas.


Australian Workplace Agreements

SeniorExecutiveService

AllongoingSeniorExecutiveServiceemployeeshaveremunerationarrangementsagreedthroughindividualAustralianWorkplaceAgreements(AWAs).SalariesaredeterminedbytheCEOandarebroadlywithinthreebandsrepresentingthethreeclassificationlevels.

PerformancepayisavailabletoSeniorExecutiveServicestaffandmaytaketheformofanannualbonus,bonuspaymentsduringthecycletorecogniseoutstandingcontributiontoparticularworkoutcomes,ormovementtoahighersalary.Theperformancepaygenerallyaccordswithcertifiedagreementemployeeperformanceassessmentandfeedbackoutcomes.

Duringthepastyear,threequartersofCustomsSeniorExecutivestaffreceivedperformancepay.TheaggregateamountofperformancepayforSeniorExecutiveswas$208000.

Non-SeniorExecutiveService

At30June2005therewere131non-SeniorExecutivestaffonAWAs.ThemajorityofthesewereCustomsDirectors(CustomsLevel5).TheconditionsofemploymentforstaffwhoarenotonindividualagreementsweregovernedbytheprovisionsoftherelevantAustralianCustomsServiceCertifiedAgreement.

Performance management

CustomsimplementedaPerformanceManagementFrameworkthatidentifieshowindividualcomponentsofperformancemanagementinteractacrossaperformancespectrumrangingfrompositivereinforcementthroughrewardsandrecognitiontothemorenegativeaspectsofmanagingunderperformance.Akeytoolforassessingtheappropriateinterventionisthroughtheperformanceassessmentandfeedback(PAF)approach.

PAFprovidesastructuredapproachtodiscussing,recordingandmeasuring

Figure �0: Senior Executive Service (SES) classification and gender at �0 June �00�*

SES 1 SES � SES � Total $�� 000 – $1�0 �00 $11� �00 – $1�� 00 $1�� 100 – $1�� 00

Females 11 2 0 1�

Males 14 4 2 �0

Total ��

*Theamountshownforeachbandrepresentssalarylevels.TheSESstaffwhoreceivedorwereduetoreceivetotalremunerationof$100000ormore(includingsuperannuationandothernon-salarybenefits)arelistedunderNote15ofthefinancialstatements,ExecutiveRemuneration.StaffshownaboverepresentsubstantiveongoingSESat30June2005.ItdoesnotincludestaffnotemployedbyCustomsornon-ongoingstaff.ThefiguresalsoexcludetheCEO,whoisastatutoryofficeholder.

Figure ��: Staff classification, Australian Public Service equivalent level and salary range at �0 June �00�*

Customs Classification APS Level Salary Range ($)

IndigenousCadet APSLevel1 19091–35872

CustomsTrainee APSLevel1 19091–35872

CustomsGraduateTrainee APSLevel2 35169–39930

CustomsLevel1CustomsOfficer APSLevel2–3 29807–46002

CustomsLevel2SeniorCustomsOfficer APSLevel4–5 46002–54045

CustomsLevel3CustomsSupervisor APSLevel5–6 54045–64525

CustomsLevel4CustomsManager EL1 69794–80789

CustomsLevel5CustomsDirector EL2 80789–97310

*SalaryrangeincludesminimumandmaximumsalariesavailableundertheCustomsCertifiedAgreement2004–2007;AustralianWorkplaceAgreement(AWA)salariesarenotincluded.


expectations.AlinkbetweenindividualperformanceandbusinessOutputsispartoftheprocessaswellasindividualdevelopmentneeds.Thisensuresthatstaffhavetheskillstheyrequiretodotheirjob.

The2004–05PAFcyclewasthefirstcompleteperformancecycleinwhichallagreementswereestablishedandmanagedonline.

Arangeofcommunicationandsupportmaterialsweredevelopedtofacilitatetheonlineprocess,includingquickreferenceguides,tutorials,frequentlyaskedquestionsandahelpdesk.Theonlinesystemhasgreatlyincreasedstaffcompliance.

Performancepay

Performanceismanagedthroughtheperformanceassessmentandfeedbackprocess.Ratingsgiventhroughthisprocesscanresultinnosalaryincreaseatallorincreasesofone,threeorfivepercentuptothetopofthesalaryrange.CustomsLevel4staffwhoreceivedthemaximumsalarypayablefortheirclassificationwereeligibleforasalaryincrease

oftwopercent,subjecttoasatisfactoryperformancerating.Thiscameaboutthroughanadjustmenttothesalarybandsinthe2004–2007CustomsCertifiedAgreement.

Allstaffatthetopofthesalaryrangewhoareratedasperformingaboveagreedrequirementsareeligibleforabonuspaymentequivalenttofivepercentofsalary.

Therewere4467employeeseligibleforperformancepayattheendofthe2004–05period.Twohundredandninetyemployeesreceivedaratingofperformedaboveagreedrequirements.Thisrepresents6.5percentofparticipatingemployeesanda1.7percentincreaseon2003–04results.

Code of Conduct

CustomsincreasedattentionpaidtointegrityandethicsthroughCustomstraineecoursesandtheCustomsgraduatetraineeInduction.Inaddition,newsitemsandthereleaseofonlinelearningassistedinbetterawarenessoftheAPSvaluesandcodeofconduct.

Figure �1: �00�–0� Performance Assessment and Feedback Scheme ratings – performed above agreed requirements

CL1 CL� CL� CL� CL� Total

Numberofstaffratedperformedaboveagreedrequirements

No 59 68 93 53 17 ��0

*Notallstaffperformedaboverequirementsreceivedaperformancebonus.Somereceivedanadjustmentinsalary

Figure ��: �00�–0� performance pay outcomes (Certified Agreement)

CL1 CL� CL� CL� CL� Total

Numberofstaffreceivingbonus No 30 36 34 14 3 11�

Totalamountpaid $ 36304 49037 59489 31066 7128 1�0 0��

Bonusamountaverage $ 1210 1362 1750 2219 2376 1 ��

Minimumbonuspaid $ 424 50 526 2219 2376 �0

Maximumbonuspaid $ 1289 1573 1807 2219 2376 � ��

Figure ��: �00�–0� performance pay outcomes (Customs Director AWA holders)

Numberofstaffreceivingbonus No 5

Totalamountpaid $ 3471

Bonusamountaverage $ 694

Minimumbonuspaid $ 36

Maximumbonuspaid $ 871

Enab

ling

Out

puts

H

uman

res

ourc

es


Customsconducted54investigationsonsuspectedbreachesoftheCodeofConductunderSection15(3)ofthePublic Service Act 1999.(13werecarriedoverfromthepreviousfinancialyear).Attheendoftheyear,29investigationshadbeenfinalisedand25werecontinuing.Ofthe29finalisedinvestigations,breacheswerefoundin25cases.

Inthemajorityofcases,theallegedbreachesinvolvedmorethanoneelementoftheAPSCodeofConduct(seeFigure54).

Sanctionstookintoaccountthecircumstancesandseriousnessofeachbreach(seeFigure55).

Inadditiontherewerefourcaseswherebreacheswerefoundbutaformalsanctionwasnotimposed.Ofthesematters,threeinvolvedformalcounsellingandoneinvolvedtheemployeebeingplacedonadevelopmentcourse.

Investigations of employee misconduct

CustomsInternalAffairsUnitisresponsiblefortheinvestigationofallcomplaintsofseriousmisconductandsuspectedcriminalityagainstCustomsemployees.TheInternalAffairsUnitprovideslecturesonintegrityissuesandinternalfraudcontroltoallCustomsnewmembersandtoallemployeesattendingtraining/developmentcourses.TheUnitaddressesworkgroupsthroughouttheorganisationtoremindstaffoftheirreportingobligations.

TheUnitinvestigated72complaintsofseriousmisconductand/orcriminalityagainstCustomsemployeesandalso154miscellaneousmatters(seeFigure56).Thisrepresentsadecreaseonpreviousfigures,whichmaybeattributedto:

• improvedunderstandingofregulationsontheuseofcomputers

Figure ��: Breaches of the APS Code of Conduct found in �00�–0�

Breach Number of cases*

Failuretobehavehonestlyandwithintegrity 3

FailuretoactwithcareanddiligenceinthecourseofAustralianPublicServiceemployment 3

Failuretotreateveryonewithrespectandcourtesyandwithoutharassment 3

FailuretocomplywithallapplicableAustralianlaws 1

Failuretocomplywithanylawfulandreasonabledirection 14

FailuretouseCommonwealthresourcesinapropermanner 14

Provisionoffalseormisleadinginformationinresponsetoarequestforinformationthatismadeforofficialpurposesinconnectionwiththeemployee’sAPSemployment

2

FailuretobehaveinawaythatupholdstheAPSValuesandtheintegrityandgoodreputationoftheAPS

17

*Insomeinstancesmorethanonebreachwasrecordedforthesamecase.

Figure ��: Sanctions imposed for breaches of the APS Code of Conduct in �00�–0�

Sanction Number of cases*

Terminationofemployment 3

Reductioninclassification 0

Reassignmentofduties 2

Reductioninsalary 3

Salarydeductionsbywayofafine 12

Reprimand 8

*Insomeinstancesmorethanonesanctionwasimposedforthesamecase.


• InternalAffairsUnit’sincreasedvisibilitythroughouttheorganisation

• continuationoftheintegrityeducationprogram.

Ofthe72complaintsreceived,17weresubstantiated,33werenotsubstantiated,19areopeninvestigationandthreewerereferredtoanotherdepartment.Disciplinaryactiontakenonthe17substantiatedmattersrangedfromcounsellingtoareductioninsalary(seeFigure57).

Ofthe72complaintsreceived,40weredeemedtoinvolvefraudasdefinedbytheCommonwealth Fraud Control Guidelines.Ofthese,13weresubstantiated,14werenotsubstantiatedand13arebeinginvestigated.Substantiatedfraudrelatedtomisuseofcorporatefuelcard(onecase),misuseofcorporatecomputers(ninecases),theftofdetainedDVDs(onecase),attempttoavoidthepaymentofduty(onecase)andabuseofposition(onecase).

Security

Customsgranted1000securityclearancestoCustomsongoingandnon-ongoingemployees.Thesewerecomprisedof557forcontractors

andconsultants(760thepreviousyear)and443forongoingandnon-ongoingemployees(508thepreviousyear).

Vettingserviceproviderswereusedtoassistprocessingsecurityclearancesduringpeakperiods,suchasSouthernOceanMaritimePatrolandResponserecruitmentprocesses.

CITSolutionswasengagedtoprovideaprotectivesecuritycoursespecificallytailoredtoCustomsoperationalenvironment.Anonlinesecurityawarenesstrainingpackagewasalsodeveloped.Customsstaffwillcompletesecurityawarenesstrainingannuallyandthiswillbelinkedtotheonlineperformanceassessmentandfeedbackprocess.

CustomscommencedaSecurityEnhancementProjecttocomplywiththephysicalsecuritystandardssetoutintheProtective Security ManualandAustralian Communication and Information Security Instructions(ACSI33).Customsenhancedsecuritybyredevelopingserver/communicationsroomsandaccesscontrolarrangementsnationally.Theprojectimprovedsignalstrength,integratedclosedcircuittelevisionandimprovedserverroomhardening.

Figure ��: Trends in internal investigations, security checks and lectures

�00�–0� �00�–0� �00�–0�

Investigationsundertaken 90 122 72

Investigationsfinalised 78 97 51

Miscellaneousinquiriesundertaken 128 159 154

Miscellaneousinquiriesfinalised 128 159 154

Securitychecksundertaken 537 466 480

Lecturesgiven(participants) 436 448 585

Figure ��: Action taken on substantiated complaints of serious misconduct and/or criminality �00�–0�

Action Number of cases

Awaitingoutcomeofadministrativeaction 5

Salaryreductionandreprimand 1

Offendernotidentified 2

Informationmaintainedforintelligence 1

Fined 1

Finedandreprimanded 6

Counselled 1

Total 1�

Enab

ling

Out

puts

H

uman

res

ourc

es


TheprojectalsodeliveredmajorsecurityimprovementstofacilitiesinQueensland,theAustralianCapitalTerritory,VictoriaandSouthAustralia.FurtherworksarescheduledinNewSouthWales,WesternAustraliaandTasmaniain2005–06.

Occupational health and safety performance

Detailsofcompliancewithsection74oftheOccupational Health and Safety (Commonwealth Employment) Act 1991areatAppendixA.

Comcareconductedawhole-of-agencyinvestigationintoCustomsoccupationalhealthandsafetypoliciesandpracticesbetweenAugust2004andMarch2005.Theconclusionwasthat:

• occupationalhealthandsafetyattheworkplacelevelisgenerallywellmanaged

• Customsoccupationalhealthandsafetymanagementsystemsarelargelyeffective.

ThereporthighlightedthatCustomsperformedwellindocumentingstrategy,purchasingandcontrolofproduct,managingworkprocess,managingmovementandmaterial,andcollectingandusingdata.Severalrecommendationsweremadesuchasincreasingtheawarenessofmanagersandsupervisorsoftheirrolesandresponsibilities

forOH&Sperformanceandenhancingtheiraccountabilityinperformingtheseroles.Thesewillbeaddressedinthedevelopmentoffuturestrategies.

CustomspaysapremiumtoComcareforworkerscompensationinsurance.Revisionofthe2004–05premiumratefrom2.18percentto2.34percentcreateda$437899penaltyamountinthe2005–06premium.Thiswasduetotheadverseperformanceofclaimdevelopmentgenerallyandthelateacceptanceofonehigh-costclaimincurredin2001.

Theforecastpremiumfigurefor2005–06is2.49percentpercent,whichisariseof6.4percent,slightlyabovethesixpercentincreaseoftheoverallpremiumrateforallFederalagencies.Thisrisereflectsanincreaseinclaimsforpsychologicalinjury,increasednumbersofclaimsandincreasesintimeoffworkforinjuredworkersacrossthePublicService.ForCustomstherisereflectsanincreaseinthecostsofclaimsduetoincreasedtimeoffworkandhighermedicalbillsratherthananincreaseinthenumberofclaims.

Customsalsoexperiencedfeweracceptedpsychologicalinjuryclaimsin2004–05thanin2003–04.

Figure ��: Occupational Health and Safety Performance

Performance measure �00�–0�* �00�–0�* �00�–0�

Acceptedcompensationincidentclaims 243 215 173

Claimsper100staff(headcount) 4.83 4.47 3.42

Acceptedcompensationincidentclaimswithtimeoffwork 134 115 98

Acceptedcompensationincidentclaimsresultingin5ormoredaysincapacity

71 55 64

Claimsof5ormoredaysincapacityper100staff(headcount)

1.41 1.14 1.27

Qualityofreturntoworkoutcomes^ 87% 91% 88%

Annualabsenteeism# .. .. 12.17%

* Asat31Julyofthatyear.

^ Numberofstaffwhosuccessfullyreturnedtoemploymentfollowingtheimplementationofareturntoworkplan.

# AnnualabsenteeismratesarecalculatedattheendoftheMarchquarter.

Corporateresourcemanagement 11�

Corporate resource management

Managing our finances

Customshasanumberofinternalandexternalprocessesdesignedtoensurecompliancewithfinancialmanagementresponsibilities.TheseprocessesincludetheannualNationalResourceAssessmentprocess,whichisthefoundationforinternalbudgetallocations.TheNationalResourceAssessmentprocessseekstoallocateappropriationfundingandotherfundingtotheoperationalunitsofCustoms.Theagencyhasamid-yearreviewofallocationstoadjustfundingallocatedaftertheNationalResourceAssessmentprocessandre-aligninternalbudgetsbasedonyear-to-dateperformance.

Customsproducesseveralfinancialreportsonamonthlybasistoreportactualresultsagainstbudget.TheExecutive Monthly Management Reportcomprisesareportoffinancialperformanceagainstinternalandexternalbudgetsandasectiononotherperformancereporting.ThroughtheCorporateBusinessIntelligencesystem,amonthlyreportcoverscomprehensivefinancialandstaffingdataelectronicallydistributedtoCustomsmanagers.Inaddition,CustomsreportsonamonthlybasistoGovernmentthroughthereportingsystemsadministeredbytheDepartmentofFinanceandAdministration.

AmonthlyreportisalsoprovidedtotheDepartmentofthePrimeMinisterandCabinetonCMRandaquarterlyfinancialreportresultingfromthereviewofCustomsfinancialhealthisalsoprovidedtotheMinisterforJusticeandCustomsandtheMinisterforFinance.

InresponsetotherevisedCommonwealthProcurementGuidelinesof1January2005,CustomsNationalProcurementandContractingsectionhasrevisedinternaldocumentationandbusinessprocesses.AnannualprocurementplanwaspublishedontheAustenderwebsiteinaccordancewiththerequirementsoftheCommonwealthProcurementGuidelines.

TheFinancialServicesDivisionimplementedanumberofprocessimprovementprojectsthroughout2004–05.Theseinclude:

• anupdatednationaluniformorderingsystemtoimproveinternalprocessesfororderingnewuniformsandtoenablebetterstockmanagement

• changestothetravelmanagementsystemtoimprovefunctionalityforusersandalsotoenableabetterinterfacewiththegeneralledger.

WhentheimportsversionoftheIntegratedCargoSystem(ICS)isimplementedfinancialtransactionsfromICSwillinterfacedirectlyintoCustomsfinancialmanagementsystem,QSP.Thiswillenablebetterreportingandanalysisofmajorrevenuecollectionsandfacilitateimproveddebtmanagementprocesses.

Purchasing

CustomssuccessfullyimplementedthenewCommonwealthProcurementGuidelinesflowingfromtheAustralia-UnitedStatesFreeTradeAgreement.Customscompetitivetenderingandcontractingoperationscontinuetoreflectbestvalueformoneytoencouragecompetitionandproduceoptimalresultsfortheagency.Corepurchasingpoliciesincludingthe30DayPaymentPolicy,theOccupationalHealthandSafetyPolicy,andconstructioncodepolicy(National Code of Practice for the Construction Industry)aremonitored.

ProcurementoperationsaredevolvedthroughoutCustoms.TheNationalProcurementandContractingsectioninCentralOfficeprovidesadviceandassistancetothebusinessareasoftheagency.Thesectionisresponsibleforassuringimplementationofgovernmentpurchasingpolicyandprinciples.

Information and communication technology management

Apartfromtheday-to-daysupervisionandcontractmanagementofseverallargeoutsourcedarrangements,theInformationandOfficeTechnologyDivisionhasanumberofcriticalprojectsunderway.

ITcontracts

TheInformationServicesAgreementbetweenCustomsandEDSAustraliawasextendedtwice

Enab

ling

Out

puts

C

orpo

rate

res

ourc

es

Customs teams – better information for managers

The Customs Corporate Support teams are constantly looking for innovative ways to distribute timely, accurate information to users and managers.

OneoftheseprojectswasrecognisedinJanuary2005withtheCEO’sAustraliaDayAward.Theprojectrevolvedaroundsupplyofastandardsetofmonthlymanagementinformation,incorporatinghumanresourceandfinancialexpenditure,tomanagersandbusinesssupportareas.ThecombinationofmultidimensionalreportingcubesandstandardsreportsallowsCustomsmanagementandsupportstafftoanalyseandviewfinancialandhumanresourceinformation.Thereportingsolutionwasdevelopedinhouseinlessthanthreemonthswithateamoffivestaff.


Morethan300managersandstaffnowusethereportingsolution.Sincetheinitialrolloutanumberofenhancementshavebeenidentifiedandwillbedeliveredinthe2005–06financialyear.Theseinclude:

• moredrillthroughcapabilityintotransactions

• additionalstandardreportstomanagers

• additionalexceptionreports

• thecompletionofthedatawarehouse.

Thereportingproductsetthefoundationforincorporatingfinancialandnon-financialinformationandhasbeenusedasthemainreportingtoolforallFinanceandHRsystems.TheInformationTechnologyBranchisusingtheproducttoanalysethedetailedinformationreceivedfromITsuppliers.

The Corporate Support team, from back left to right: Jo Corcoran, Samual Roberts, Jon Brocklehurst, Mark McDonald and

Matthew Wilson. Front left to right: Peter Glanville and Danielle Yannopoulos.

andisinitseighthyear.Theoriginalfive-yearcontractcameintoeffectinMarch1998andallowedfortwotwo-yearextensions.Customsexercisedthefirsttwo-yearextensioninJune2002andextendedthecontracttoMarch2005.Thesecondtwo–yearextensionwassignedon13August2004andtheAgreementisduetoexpireon30June2007.EvaluationsandbenchmarkingsupportedthedecisionstoextendthecontractsasEDSprovidedvalueformoneyandservicestandardshadimprovedovertime.

TheTelecommunicationsServicesAgreementwithTelstraofSeptember2003providesgreaterbandwidthandcheapercostseventhoughtheoverallneedshaveincreased.Asaconsequencethecontractvaluehasincreased.

Improvedservicestousersandreducedcallcostshasresultedfromwideareanetworkandfundamentaltelecommunicationsservices,andvoiceservicesusingnewMitelequipment.

ITstrategicplanning

CustomsITStrategicPlan2005–2010wasdevelopedthisyearwithadraftsubmittedtotheInformationManagementStrategyCommitteeforreview.Theplanspansthefullfive-yearspectrumtoprovideaflexiblebasisforCustomsITalignmentwithCustomscurrentandfuturebusinessneeds.TheplanaddressesITgovernance,informationsystems(applications),informationmanagement,informationtechnology,ITsecurity,people,andITbudget.Finalendorsementisexpectedin2005–06.

SmallSystemsDevelopmentUnit

CustomshascreatedaSmallSystemsDevelopmentUnitinordertodevelopandmaintainapplicationsthatareconsideredtoosmalltooutsource.Customshashadanumberofsuccessesoverthepastyearindevelopingabroadrangeofapplicationssuchas:CustomsVettingRegister,DogTaskingSystem,PenaltiesTrackingandRecordingSystemandthePassengerAnalysisUnitFlightSchedulingApplication.TheSmallSystemsDevelopmentUnitalsoprovidesacompletehostingservicefortheseapplications.ThishasproveneffectiveformanyusersinCustomswhoreceivedabetterandmoreresponsiveservice.

Therefreshofdesktopsandthereplacementofprintingandphotocopyingdeviceswereprogrammedforthisyear.Thedesktoprefreshwasputbackuntilthe2005–06financialyear,butwiththerolloutofCMR,newscreensarebeingintroduced.Aprintingandphotocopyingsolutionisbeingexploredtoreplacethesedeviceswithmulti-functiondevices.Apilotwasrunandcostingsexplored.Furtherexaminationisbeingconsideredpriortoafinaldecisionbeingmade.

ITsecurity

ITsecurityisessentialtothemanagementoftheCustomsITinfrastructure.InadditiontoensuringthattheCustomsITenvironmentcomplieswithGovernmentlegislationandguidelines,aconsultanthasbeenemployedtoassistindeveloping,implementingandfullytestinganITdisasterrecoveryplan.ArevisedversionoftheCustomsITSecurityPolicywascompleted.

Authenticationtechnologies

CustomsformedpartofamultiagencyreviewassessingtheeffectivenessoftheGovernment’sGatekeeperStrategy.Thisreview,chairedbytheDepartmentofFinanceandAdministration,reporteditsfindingstotheManagementAdvisoryBoard’sInformationManagementStrategyCommitteeinFebruary2005.CustomsalsoplayedanactiveroleinthelaunchoftheAustralianGovernmentAuthenticationFrameworkthroughapresentationon28April2005ofCustomsexperience.ThroughaMemorandumofUnderstandingwiththeAustralianTaxationOffice,CustomsdeployedenhancedsecuritysoftwareintotheCustomsConnectFacility,thesecureclientgatewaytotheIntegratedCargoSystem.

Informationstandardsandharmonisation

AustralianCustomschairedtheWorldCustomsOrganizationdatamodellingsub-committeeforthepastthreeyears.Thecommitteecontributestothedevelopmentofinternationaldatastandardsandassociatedproof-of-conceptprojects.Theseprojectsplayanimportantroleinthebettermanagementofinternationalsupplychains.

Corporateresourcemanagement 11�

Enab

ling

Out

puts

C

orpo

rate

res

ourc

es

1�0 AustralianCustomsServiceAnnualReport2004–05

PrincipaloutputshavebeenthefinaldraftingoftheAustralia/TaiwanpaperlesstradingprojectdefinitionandinputtoinformationissuesattheWorldCustomsOrganization,UnitedNationalsCentreforTradeFacilitationandElectronicBusiness,AsiaPacificEconomicCooperationandinassociationwithFreeTradeAgreements.

CorporateStatistics

CustomsCorporateStatisticssectionparticipatedaspartofaworkinggrouptoreviewperformancemeasuresfortherevisedPortfolioBudgetStatements.Severalnewmeasureshavebeenintroduced.Aninternalquarterlypublication,called Customs Figures,providesimportantinformationforstrategicandoperationalplanningandprocessmonitoring.

CorporateResearchEnvironment

CustomsCorporateResearchEnvironmentinvolvesenterprisewidedatawarehousing,andresearchandreportingcapabilityforCustomsapplications.SignificantsupportwasprovidedforCMRandothernewapplications.

DataManagement

TheCustomsDataManagementteamsupportedCMRdevelopment,datagovernanceandimplementationoftherecommendationsoftheInternalAudit‘ManagingData’Review.Thisensurestheeffectivedeliveryofalloutputsthroughtheprovisionofdatastandardsandservices.

Informationpolicy

ProjectplanningandthebusinesscasewererefinedfortheRecordsandInformationManagementSystemproject.Fundingfor2005–06wasapprovedinJune2005andworkcommencedinpreparationforreleaseofarequestfortenderinlate2005.Inaddition,threerecordkeepingadviceshavebeenissuedtoCustomsstafftoassistincompliancewithlegislativerequirements.

CorporateCommunication

CorporateCommunicationplayedakeyroleinenablingCustomstoachievekeyoutputsduring2004–05.Examplesincluded:

• IncreasedcommunityawarenessofCustomsanditsvariedborderprotectionrolesthroughparticipationinthehighlysuccessfulSevenNetworkBorder Security televisionseries

• Heightenedawarenessofbordercompliancethroughthepublicisingofmajordetectionsofnarcotics,dutyevasion,trademarkandcopyrightinfringements,illegalfishingapprehensions,andwildlifesmugglingattempts

• Promotionofthe24hourCustomsHotlineacrossnorthernAustraliaencouragingremoteandregionalcommunitiestoactasCustoms‘eyesandears’forsuspiciousactivity

• SupportforthesuccessfulintroductionofICSExportsthroughtheprovisionofcommunicationservicesandstrategiestopromoteindustryreadinessforthenewsystem.

IntegratedSolutions(ClientDataManagementStrategy)

ThroughtheClientDataManagementStrategy,Customstakesastrategicapproachtomanagingclientinformationaswellasallowingformoreefficientandeffectivebusinessadministrationprocessesandriskassessment.From2001,projectshaveconsolidatedclientinformationacrossmultipleCustomsbusinesssystems.Sofar,thestrategyhasdelivered:

• tworeleasesoftheexaminationsmodule(Exams1Aand1B)tosupporttherecordingofallexaminationsandsearchesintheseacargoandaircargoenvironment

• anadditionalrelease(Exams2)toextendrecordingtopostalandmassscreeningfacilitiesandinterfacewiththeICS

• theLicensingmoduletorecorddetailsofallLicensedandAppointedCustomsPlacesandlicensedCustomsbrokers.

Consultants

Thirtyfivenewconsultancycontractswereenteredintoinvolvingtotalactualexpenditureofapproximately$4.1m.Inaddition,13ongoingconsultancycontractswereactiveduringthe2004–05yearinvolvingtotalactualexpenditureofapproximately$0.43m.

Enab

ling

Out

puts

C

orpo

rate

res

ourc

esTheDepartmentofFinanceandAdministration’sGuidance on Identifying Consultancies for Annual Reporting Purposes (FM Guidance No. 12 July 2004)wasusedinpreparinginformationonconsultancies.

Selectionandengagementofconsultants

Consultantsareselectedbyopentender,selecttender,directsourcingorthroughapre-existingpanelarrangement.Thetypeofselectionprocedurewilldependonthelevelofcompetitioninthemarketandonthevalueoftheproposedcontract.Customsgenerallycommissionsconsultantsto:

• investigateordiagnoseadefinedissueor

problem

• carryoutdefinedresearch,reviewsandevaluations

• provideindependentadvice,informationorcreativesolutions

• providespecialisedservices,includingassistancewiththedevelopmentand/orimplementationofpurpose-builtITsystemsandlegaladvice.

AllselectionprocedureswerecompliantwithCommonwealthpolicyandprinciples.

Customs teams – TV audience given insight into work on Australia’s frontline

Customs officers across Australia have been playing key roles in the Network � TV series, Border Security, which was broadcast nationally over the past 1� months.

FromAustralia’snortherncoasttoitsinternationalairandseaports,theseriescoveredtheexposurebyCustomsandotherborderagenciesofcriminalactivityastheygo

Corporateresourcemanagement 1�1

abouttheirdailywork.Itprovedtobecompellingtelevisionwithaudiencefiguresachievingveryhighratings.MuchofthefilmingtookplaceatmajorairportswiththeproductioncrewscoveringthemomentwhenCustomsofficersmakeadrugdetectiontotheresolutionofthecaseincourt.

Customsofficerswhovolunteeredtoparticipateintheseriesfoundthetaskchallengingbutrewarding.AsMichaelJackson,anofficerbasedatSydneyAirport,explained,oneofthemainchallengesinfrontofthecamerawastoactnaturallyandperformthenormalfunctions.

However,hehasnodoubtsaboutthebenefitoftheseriestoCustoms.“ItgivesthepublicaninsightintowhattheactualfunctionsofaCustomsofficerreallyare.MostmembersofthetravellingpublicwouldpassthroughtheairportandseeCustomsofficersperformingthefacilitationsideofthingsandrarelyencountertheenforcementsideofourwork.Thisshowgivestheaudienceachancetounderstandhowdifficultourjobisandtheobstacleswefaceonadailybasisintryingtosortthegoodfromthebad,sotospeak.”

Accordingtotheprogrammakers,Border Security provedtobeasuccessbecauseitshowsrealpeople,carryingoutadifficultjob,insometimesarduouscircumstances,toprotectAustralia’sfrontline.

Customs officers Michael Jackson and Clarinda Oliveira,

among the many officers who have featured in the TV series,

Border Security.

1�� AustralianCustomsServiceAnnualReport2004–05

Themainpurposesforwhichconsultantswereengagedinclude:

• humanresourceandoccupationalhealthandsafetyadviceandanalysis

• securityriskreviewandanalysisservices

• procurementandcompetitivetenderingadviceandassistance

• architecturalandconstructionadvice.

Foralistofconsultancycontractsletin2004–05refertotheCustomsInternetsite.

Competitive tendering and contracting, contract management and corporate outsourced arrangements

CustomshasoutsourcedarrangementsforITsupport,legalservices,internalauditservicesandsomerecruitmentservices.

ThemajorityofCustomsITsupportisoutsourcedtoEDS.CustomsITServicesAgreementwithEDS(Australia)wasextendedthisyeartoJune2007.

AconsortiumheadedbyComputerAssociatesprovidedthedevelopmentandsupportfortheIntegratedCargoSystemandassociatedsystems.Inaddition,specialisedITservicesaresourcedfromanumberofotherITprovidersincludingIBMandCPTGlobal.

TheCustomsTelecommunicationsServicesAgreement(CTSA)betweenCustomsandTelstraCorporationisinitssecondyearofoperation.Thethree-yearcontractcameintoeffectinSeptember2003andallowsfortwotwo-yearextensions.

TelstraiscontractedtoprovidetheWideAreaNetwork(WAN),whichincludesdatatransmission,networkredundancyandoperationalinfrastructureformanagedtelecommunicationsservicessuchasroutedandnon-routeddataandISDNswitcheddataservices.AswellastheprovisionofWAN,Telstraalsoprovidesvoiceservicessuchasmobiletelephony,satellite,paging,domesticinboundvoice,audioconferencingandtelephonecallingcards.

CustomsLegalServicesareoutsourcedtotheAustralianGovernmentSolicitor.ThesewererenegotiatedinDecember2004.ACustoms

LegalPanelsupplementsthecoreoutsourcedlegalunit.

Customsinternalauditfunctionisco-sourcedtoPricewaterhouseCoopers,supportedbyoneortwoCustomsofficers.

RecruitmentintotheCustomsTraineeorCustomsGraduateTraineeclassificationsishandledunderasoleprovidercontractarrangementwithDFPRecruitment.Thecontractincludeslodgingadvertisements,receivingapplicationsandconductingassessmentcentres.Customsinterviewscandidatesthatareshortlistedfromtheprocessandmakesthefinalselectiondecision.

CustomshadnocontractsexemptfromtheGazettalrequirements.

Advertising and market research

ExpenditureonadvertisingandmarketresearchisdetailedinAppendixCon218.

Assets management

AstocktakeofCustomsassetswasconductedandassetmanagementpoliciesandproceduresarecontinuallyupdated.

Discretionary grants

Customsdidnotprovideorreceiveanydiscretionarygrantsin2004–05.

Events that will significantly affect operations or financial results

Adoptionofinternationalstandards

InDecember2002,theFinancialReportingCouncilannouncedthatAustraliawilladoptinternationalfinancialreportingstandardsissuedbytheInternationalAccountingStandardsBoardby1January2005,includingGovernment.ThemainreasonforthisistoprovidesomeuniformityinaccountingstandardsforAustraliancompaniesoperatingoverseas.

Further,theAustralianAccountingStandardsBoardisalsoconsideringtheharmonisationofgenerallyacceptedaccountingprincipleswithGovernmentfinancialstatistics.

TheAustralianAccountingStandardsBoardsissuedreplacementAustralianAccounting

Enab

ling

Out

puts

C

orpo

rate

res

ourc

es

Customs teams – establishing a new Customs HouseThe new Sydney Customs House breaks with tradition with its location beside an airport rather the waterfront or Central Business District.

ThedecisiontoestablishanadministrativeheadquartersatSydneyAirportreflectstheincreasingroleofpassengermovementinCustomsoperations.Lastyear,atotalof9868363passengersandcrewenteredand/ordepartedAustraliaviaSydney.

ThenewSydneyCustomsHouseisnexttotheinternationalterminalcarparkatSydneyandisleasedbyCustomsfromSydneyAirportCorporation.Customsoccupiesmostofthetenfloors.

ThetaskofconsolidatingcustomsoperationspreviouslylocatedinSydneyCentral,

Corporateresourcemanagement 1��

LinkRoadneartheairport,andMarrickvillewasundertakenbyaprojectteamworkingwiththebuildingowner,contractorsandstaffovertwoyearstoensurethebuildingmetcustomsrequirements.

Internalfitout,developedafterstaffconsultation,beganinAugust2004withemployeesprogressivelymovingintothebuildingbetweenDecember2004andFebruary2005.Relocationsoccurredwithnodisruptiontooperationalwork.

CustomsHousehasapubliccounterforgeneralpublicandindustryenquiries.Itfeatureshighlevelsofsecurity.

CustomsHouseislocatedatSydneyAirport,butitslinkswiththewaterfrontremainasthebuildingisclosetoPortBotanywheremostairandsealogisticscompaniesarebased.

The Sydney accommodation project team, Karen Williams

and Neil Koos, who were awarded a Customs National

Australia Day award for their management of the move

to the new Customs House.

The new Customs House in Sydney.

Standardstoapplyfrom2005–06.ThenewstandardsaretheAustralianAccountingStandardsBoardequivalentstointernationalfinancialreportingstandardsissuedbytheInternationalAccountingStandardsBoard.

TheadoptionofAustralianAccountingStandardsBoardequivalentshadamajorimpactonallgovernmentagencies.ForCustoms,thisincludedensuringcurrentsystemsmetthenewrequirements.

Customsdevelopedaprojectplanthataddressedthechangesinsystems,majoraccountingpolicies,impactonCustoms,risksandkeytimelines.InformationontheimpactsonCustomsfinancialstatementsfromtheimplementationofInternationalFinancialReportingStandardsisincludedinthefinancialstatementssectionofthisreport.


Accountability to clients

Client service TheClientServiceCharteroutlinesCustomsserviceprinciples,andkeyservicestandards.Thecharterrecognisesthatqualityofservicetoclientsisimportanttothecommunity’sconfidenceinCustoms.

ThecharterisavailableinCustomsoffices,ontheCustomsInternetsite,andisdistributedatairports,exhibitions,forumsandclientmeetings.Itadvisesclientsthat,atanytime,theymaytaketheircomplainttotheCommonwealthOmbudsman,theirFederalMemberofParliamentortheFederalMinisterresponsibleforCustoms.

Social justice and equityTherangeofCustomsactivitiesaffectspeoplefromawidevarietyofculturalandsocial-economicbackgrounds.Tobeaneffectiveagency,Customsmustbeawareofhowitsoperationsandservicesimpactpeopleinthecommunityandoverseas.Customsensuresthataccesstoinformationandservicesisequitable.

SocialjusticeandequityimpactsandstrategiesareincorporatedintheSocialimpactsectionofSustainabilityonpage129.

Informationonworkplacediversityisonpage110andreportingontheCommonwealthDisabilityStrategyisonpage221.

Improving service to our clients through the Customs Information and Support CentreInJune2005,theCustomsInformationandSupportCentre(CI&SC)completeditssecondfullyearofcentralisedoperationinSydney.TheCI&SChandlesinquiriesoncargosystemsandprovidesgeneralinformationonCustomsservicesandprocedures.

TheCI&SChandledmorethan550000cargosystemsandgeneralinformationinquiriesfromacrossAustralia,anincreaseofnearly19percentfrom2003–04.Contactsincluded:

• 439000telephonecalls

• 89000emails

• 23000inquiriesbyfacsimile

• 1900inquiriesbyletter/counter/meetings.

TheCI&SCplayedakeysupportingrolewhen

theexportscomponentofIntegratedCargoSystem(ICS)becameavailabletoindustryinSeptember2004.ItwillplayasimilarroleforthereleaseoftheimportscomponentofICSinthesecondhalfof2005.

ThenumberofcallsincreaseddramaticallyafterthereleaseoftheexportscomponentoftheICS.InonepeakperiodinOctober2004,Customsreceivedover2500callsadayresultinginsomecallerswaitinglongerthanexpected.Nearly54percent(1336)ofthesecallswereforICSsupport.

Customshasimprovedthecargosystemsupportfunction,particularlythroughtheprovisionofa24-hourseven-dayaweeksupportservice.Anewusersupportframeworkcameintooperationon4April2005,implementingamulti-tieredstructure,withfirstlevelsupportinSydneyandsecondandthirdlevelsupportinCanberra.

TheCI&SCrelocatedinDecember2004fromitsSydneycitylocationtothenewCustomsHouseatSydneyInternationalAirport.ThisrelocationenabledtheCI&SCtoupgradeitstelephonyandimproveclientservicedelivery.

StrategiestofurtherimproveservicetoclientsincludedinstallingacallcentremanagementsysteminlateFebruary2005forrealtimemonitoringandmanagementofcalls.Thecentrealsorecruitedandtrainedanadditional16staff.Theseimprovementsareexpectedtoreducecallwaitingtimes.

Complaints and complimentsTheComplaintsandComplimentsManagementSysteminvitesthepublictocommentonCustomsservices:

• email([email protected])

• theCustomsInternetsite(www.customs.gov.au)

• freecall(1800228227).

QuarterlyreportsarepublishedontheCustomsInternetsite.

Customsinvestigatesallformalcomplaintsandaimstorespondtoclientswithin15workingdays.Thisstandardwasachievedin97percentofcases.Complainttrendsareregularlymonitoredtoidentifypossibleserviceimprovements.

Enab

ling

Out

puts

A

ccou

ntab

ility

to

clie

nts

onecomplaintforevery600twenty-footequivalentunits(TEU)x-rayed.Themajorityofthesecomplaintsrelatedtodelayscausedbytheinspectionprocess.AdditionalContainerExaminationFacilitiesshiftsandcreditcardfacilitiesforpaymentofdutywereintroducedtoaddressthesecomplaints.

Complimentsrelatedprimarilytoofficersofferingassistanceandbeinghelpful,professionalorinformative.Customsstaffmembersareadvisedofpersonalcompliments.

Environmental accountability Customsreportsannuallyonitsperformanceonecologicallysustainabledevelopmentandenvironmentalmattersundersection516AoftheEnvironmental Protection and Biodiversity Conservation Act 1999.

ReportingrequirementsareincludedintheSustainabilitysectiontofollow.

Customs teams – protecting a unique borderThe 1�� Torres Strait Treaty allows free movement of traditional people and goods of both countries for traditional activities. The treaty recognises that the Islanders of the Torres Strait and people of the adjacent coastal area of Papua New Guinea have traditionally mixed and traded with each other. These movements, without need for passports or visa, number some �0 000 annually.

TheTorresStraitcomprisesover100islands,sandcays,reefsandrockyoutcropsofwhich14areinhabited.TheadministrativecentreisatThursdayIsland,whileHornIslandistheinternationalairportclearingapproximately500internationalflightsperyear.

CustomsmaintainsregulardiscussionswithPapuaNewGuineaincludingtalkswithPapuaNewGuineaCustoms(InternalRevenueCommission)andtheRoyalPapuaNewGuineaConstabularytoshareintelligenceandinformation.ThiscombinedenforcementeffortaddressestransnationalcrimethataffectsbothcountriesandbringstogetherofficerswhoworkintheTorresStraitandDaru(theadministrativecentreforthewesternprovincesof

Customsreceived2319complaintsand789complimentsin2004–05.Ofthese,267complaintsand10complimentsrelatedtootheragenciesandorganisationsandwereforwardedforaction.

Customsprocessedapproximately10millionincominginternationalpassengersandreceived1121complaintsand262complimentsrelatedtopassengerprocessing,aboutonecomplaintforeach40000passengersenteringAustralia.Atotalof245(22percent)ofthesecomplaintsrelatedtorevisedpassengerdutyfreeconcessionsfromFebruary.

Atotalof263complaintswerereceivedaboutthe(CI&SC),principallyaboutwaitingtimes.WiththeimprovementstotheCI&SC,thenumberofcomplaintsreduced.Atotalof100complimentswerereceivedabouttheCI&SC.

ComplaintsaboutContainerExaminationFacilitiesoperationandtargetingfellfrom295in2003–04to219thisfinancialyear,about

Accountabilitytoclients 1��

PapuaNewGuinea).CustomsalsoparticipatesintheannualTreatyLiaisonMeetingtodiscussrelevanttreatyissues.

Customshastenstaff,includingtwoCoastwatchofficers,basedonThursdayIsland.ItalsohasfiveTorresStraitCustomsofficers,oneeachbasedonThursdayIsland,SaibaiIsland,MabuiagIsland,CoconutIslandandDarnleyIsland.CoastwatchoperatestwohelicoptersfromHornIsland.TheseassetsarevitalinsupportingoperationalresponseactivitythroughouttheTorresStrait.

Steve Jeffs, Customs Manager Torres Strait with the Daru

manager of the Papua New Guinea Internal Revenue Commission

Les Ture and Pajaro Agia.


Sustainability

Inrecognitionofincreasedgovernmentfocusonsustainability,thisreportprovidesadditionalinformationontheenvironmental,socialandeconomicimpactofitsactivities.CustomshaschosenindicatorsfromtheGlobalReportingInitiativethatarerelevanttoCustomsandforwhichdataisavailable.Intheyearahead,Customswillseektoimproveitsfocusonsustainabilitytobetterreflectthesocial,economicandenvironmentalimpactofouractivities.

ThissectionincorporatesmandatoryreportingrequirementsundertheEnvironment Protection and Biodiversity Conservation Act 1999andvoluntaryreportingonsocialjusticeandequity.

Customshasalwaysendeavouredtomeetprinciplesofecologicallysustainabledevelopmentandsocialjusticeandequityinpolicydevelopmentandoperationalactivity.Riskmanagementisappliedatplanningandprojectlevelsandincludesassessmentofenvironmental,geographic,social,commercialandtradingrelationshipsthatmayimpactoncorporateperformance.Establishedreportingandreviewprocessesensurethattherisksareassessedregularly,andthatsystemsandprocessessupportcontinuousimprovement.

CustomsCorporatePlancommitstheorganisationtobeingresponsiveandaccountabletoParliament,communityandindustry.Thisyear,CustomsCorporatePriorities(seepage9)includeafocusonprotectingAustralia’shealthandsafetybyworkingcooperativelywithpartneragenciesinvolvedinissuesassociatedwith:

• immigration

• quarantine

• fisheries

• police

• aviation

• industry

• foreignaffairsandtrade

• revenuecollection

• health

• theenvironment.

TheseprioritiesalsoincludeinternationalcapacitybuildinginitiativesthatsupportAustralia’sinterests,andtheneedtocontributetonationalandinternationaleffortstoachievesecuretrade.

Environmental impact

CustomsEnvironmentalPolicyStatementcommitstocontinuouslyimprovingenvironmentalperformanceinitsactivities.Customsmonitorsactivities,includingthemanagementofenergy,waterandwasteproducts,thevehiclefleetandpurchasing.

CustomsEnvironmentalManagementSystemprovidesaframeworkforconsideringandminimisingenvironmentalimpactsintheworkplace.

Customsreducedenergyconsumptioninitsofficesbyalmostthreepercentin2002–03to2003–045.Electricityandgasconsumptionforservicescommontoalltenantsinofficebuildingssuchasairconditioning,lifts,securitylights,lobbylightsanddomestichotwaterwerealsoreduced(SeeindicatorEN3onpage132).

Directenergyuseinnon-officelocationsincreasedby36percent.ThisreflectstheestablishmentofadditionalContainerExaminationFacilitiesintheyear,withsignificantincreasesinthevolumeofcontainersscanned.

Between1997–98to2003–045,Customsreduceditsenergyusageinofficeaccommodationby16percent.

Postersandcardsaredisplayedtoremindstaffoftheimportanceofrecycling,energyefficiency,computermonitorswitchoffprograms,andreducedpaperuseintheoffice.

Otherinitiativesare:

• recycledpaperisusedformostpurposesinCentralOffice

• usedfluorescenttubes,usedprinterandphotocopiercartridgesarecollectedforrecycling

• providingbinsfortherecyclingofpaper,glass,cansandplastic

• negotiationorvariationofservicecontracts.

52004–05figureswerenotavailableatthetimeofpublication

Enab

ling

Out

puts

S

usta

inab

ility

Customs teams – making a difference in remote areas

While Customs work in protecting borders at international air and seaports is well known, a significant amount of lesser known work is undertaken by Customs district offices in remote areas of Australia.

AnexampleisthepatrolsundertakenfromdistrictofficesinWesternAustraliawhereCustomsofficersgatherinformationandinformthepubliconhowtodetectandreportillegalactivity.Therangeofthreatsintheseisolatedareasincludessmugglingofnativefloraandfauna,narcoticssmugglingandillegalentrants.Toensureexchangeofinformationwithawiderangeofgroups,Customsregularlyvisitslocal

businesses,remotecommunities,parkrangers,schoolsandstateandfederalgovernmentagencies.Itasksthemtoprovideinformationonunusualactivityintheirarea—suchassuspiciousaircraftorseacraftactivity,hiddencampsitesorfueldumps,unusualobjectsatseaorashoreorevidenceofinterferencewithfloraandfauna—thatmayindicateillegalactivity.

Althoughtheprimarypurposeofthepatrolsistodetectanddeterillegalactivity,Customsrecognisesthatinvisitingremoteareastheycanassistcommunitiesbybringingfreshprovisions,reportingdamagedfencesandinjuredstocktopropertyowners.Sometimestheyassistatthesceneofmotoraccidentsandbreakdownsorhelpwithrescueswherepeoplehavebecomelost,illorinjuredinremotelocations.CustomsofficersprovideinformationtoremotecommunitiesonemploymentwithCustomsandotherCustomsrelatedmatters.

Manypatrolsareundertakeninecologicallysensitiveareas,andCustomstakesprecautionstoensurethatanynegativeenvironmentalimpactsareminimised.Wherepossible,teamsstayonexistingtracks,avoidfragileduneareas,avoiddamagetoplantsandwildlifehabitats,observefirerestrictionsandremovetheirwasteandrubbish.Contactismaintainedwithconservationagenciestoensurethatquarantineandrestrictedareasareavoided.

Sustainability 1��

Customs officers on remote area patrol in the Pilbara.


Initiativestodecreasewaterconsumptionorincreasewaterreuseinclude:

• effectivemaintenanceincludingchangingwashers

• installingwaterefficientshowerheadsandchilledwaterdispensersduringrefurbishments

• waterefficientwindowwashingusingbucketsinplaceofhighpressurewater

• education–remindingstaffandvisitorstobecarefulwithwaterusage.

Customsdidnotconductanyenergyauditsinthepastyearbutcontinuedtoimplementcosteffectiveenergyauditrecommendationsfromthepreviousyear.

CustomsworkedcooperativelywithotheragenciestoprotecttheAustralianenvironment.Someactivitiesandachievementsthisyearinclude:

• detectionof51livetropicalfishconcealedonanincomingfemaleairlinepassenger.Thesefishcouldhaveposedapotentiallyseriousquarantine,environmentalandhealthrisk

• chargeslaidoveranallegedattempttosmuggle24turtlesandashinglebacklizardoutofAustraliainthepost.Customs,AustraliaPostandConservationandLandManagement(WesternAustralia)workedtogethertohalttheexportoftheturtles,whichareprotectedfauna

• detectionoffourliveturtles(suspectedNorthAmericanLoggerheadMuskturtles)concealedinanarrivingpassenger’sbaggage.Theseturtlescouldhavecarrieddiseasesthat,ifintroducedtoAustralia,couldhaveseriousenvironmentalconsequences.TheturtleswerehandedovertoAustralianQuarantineandInspectionService

• detectionof26livespidersinaninternationalmailparcel

• patrolsinAustralia’sterritorialwaterssurroundingHeardandMcDonaldIslandstopreventillegalfishinginthissensitiveenvironment

• NationalMarineUnitvesselsprovidedmarinetransporttoConservationandLandManagement(WesternAustralia)officers,researchersandvolunteersto:

– MontebelloIslandsformonitoringofarateradicationprogramtohelppreventre-infestationandconfirmabsenceofpossibleremnantrodents

− KimberleyIslandstoconductacensusofbreeding,shelteruseandpopulationofred-tailtropicalbirds;examinetheeffectsofthe2004tsunamionintertidalcoralcommunities;andexamineturtlenestingactivityandcollectDNAsamples

− BernierandDorreIslandNatureReservestostudyandDNAtestpopulationsoftheBoodie(BettongiaLesueur),whichisoneofthemostendangeredAustralianmammalspecies.

• NationalMarineUnitprovidedtransporttoDepartmentofEnvironmentandHeritageresearchersandvolunteerstoAshmoreIslandsNatureReservetomonitorseabirdandshorebirdpopulations,researchgingerantsandassesstheirimpactonbirdandturtlepopulationsandtomonitorterrestrialplantspecies

• participationinOperationClearwateraimedatdetectinganddeterringforeignfishingvesselsintheGulfofCarpentariaandinthewaterstothenorthofArnhemLand.Duringtheoperation,29illegalfishingboatsand258crewwereapprehended.Officersseized12927kgoffishproductsincludingReefFishandRedFishand295kgofsharkfin(seepage66).

InFebruary2005,approximately300to400litresofdieselfuelwasaccidentallydischargedintotheharbouratThursdayIslandwhilerefuellingaNationalMarineUnitvessel.TheincidentwasreportedtoStateandFederalauthorities,andinvestigationsarecontinuing.Measureshavebeenimplementedtopreventarepeatoftheincident.

Customsworkinassistingenvironmentalprotectioninpreviousyearsresultedinthefollowingsuccessfulprosecutionthisyear:


• CoastwatchandtheNationalMarineUnitworkedwithStateandFederalagenciesingatheringevidenceforprosecutionofacaserelatedtothedischargeof9300litresofoilmixtureintheGreatBarrierReefMarineParkbyacargoship.Theshipownerwasfined$180000andhadalreadypaid$34277incleanupcosts.ThefinewasthelargestimposedonacompanyundertheProtection of the Sea (Prevention of Pollution from Ships) Act 1983.

Social impact

CustomsmeetsarangeofCommonwealthrequirementsledbyAPSValuesandtheAPSCodeofConducttoensureitsactionsarelawfulandmeetcommunityexpectations.

Customs,with63otherCommonwealthagencies,wasassessedin2004asmeetingtheperformanceindicatorsforimplementationoftheCharter of Public Service in a Culturally Diverse Society.Customsiscommittedtotheprinciplesofsocialjusticeandequityandendeavourstoensurethatinformationandservicesareavailabletopeoplefromarangeofculturalandlinguisticbackgrounds.InthepastyearCustoms:

• deliveredcross-culturalawarenesstrainingtoenforcementstaffasrequiredandprovidedaccesstocross-culturaltrainingforallstaffthroughanonlinelearningpackage

• providedclientsfromnon-EnglishspeakingbackgroundswithaccesstointerpreterservicesthroughstaffortheTranslatingandInterpretingService

• producedselectedpublicationsindifferentlanguagesandinvariousformats

• maintainedaregisterofstaffwithlanguageskillsandutilisedtheseincommunicationswithclientsasrequired

• ensuredthatarrestedpersonswereprovidedwiththecautioninalanguageorformunderstoodbythem.

CustomspromotesequityanddiversityintheworkforcethroughtheWorkplaceDiversityPolicyandAPSValuesandCodeofConduct.Examplesofworkplacediversityinitiativesinthepastyearinclude:

• anentry-levelrecruitmentprogramspecificallyforpeopleintheTorresStraittojointheNationalMarineUnitfor12monthsassea-goingcrew.Traineesattendcoursestoobtainqualificationsandafellowcrewmemberactsasamentorandadviser

• recruitmentofcadetsundertheNationalIndigenousCadetshipProgram,ajointexercisebetweentheDepartmentofEmploymentandWorkplaceRelationsandparticipatingagencies,includingCustoms.Successfulapplicantsaresponsoredwhiletheystudyatuniversityandundertakeworkplacementsduringholidayperiods.

CustomscomplieswiththeCommonwealthDisabilityStrategytoensurethatservices,informationandpoliciesareaccessibleby,anddonotdiscriminateagainst,peoplewithadisability(seeAppendixE).

Customsiscommittedtoprovidingasafeandhealthyworkplaceforthewelfareofstaff,contractors,clientsandvisitorsthroughimplementationofanoccupationalhealthandsafetymanagementsystem(seeAppendixA).

CustomscarriedoutasignificantroleincommunityprotectionthroughitsresponsibilityindeterringanddetectingunlawfulmovementofgoodsandpeopleacrosstheAustralianborder.Prohibitedandrestrictedgoodscancauseenvironmental,socialoreconomicharm.Theseinclude:

• illicitdrugs

• objectionablematerial

• wildlife

• culturalandheritageitems

• hazardouswaste

• chemicals

• PharmaceuticalBenefitSchememedicines

• un-manufacturedtobacco

• intellectualproperty

• weaponsandunsafeproducts.

CustomscontinuestosupportGovernmentprioritiesrelatingtocounter-terrorism,securityarrangementsandprotectingourborders.Customsdevelopedabusinesscontinuitypolicytoplanforcriticalbusinessfunctionsto

Enab

ling

Out

puts

S

usta

inab

ility


beopenforbusinessduringorafteranincident,evenifatareducedlevelofservice,untilnormaloperationscanresume.

Customsparticipatedinresearch,reportingandprojectsinrelationtocriminalactivity,includingillicitdrugmarketsandtheirdynamics,incollaborationwithresearchbodiesandlawenforcementagencies.

Whererequested,Customsundertakessearchandrescueoperations.Rescuescarriedoutthisfinancialyearincluded:

• ninesearchandrescueoperationsintheTorresStraightsuccessfullyreturningvesselsandpeopletoland.CustomsutilisesReadyResponseVesselsbasedonThursdayIslandandfourouterislands(Darnley,Saibai,MabuiagandCoconut)andreliesonTorresStraitCustomsofficers’localknowledgetosafelyattendtovesselsindistressandprovidethenecessaryassistancetobringthemtosafehaven

• fiveIndonesianfishersfoundstrandedanddehydratedonAshmoreIslandsinNovember2004.Thefishershadbeenseparatedfromtheirvesselandwashedashore.Theyweregivenmedicalattentionandfreshsuppliesoffoodandwaterbeforebeingreturnedtotheirvessel

• aPortuguesesailorwhobecamecriticallyillonboardafishingshipintheSouthernOceaninDecember2004.TheCustomsandFisheriespatrolvesselOceanic Vikingwasdivertedfromitspatroltorespondtothemedicalemergency.ThesailorwastakentoFremantlewherehisconditionwasstabilisedpriortohisreturnhome

• amaxiyachtwhichhadbeendisabledinstrongwindsandwasdraggingitsanchortowardsrocksonthewesternsideofDentIslandinQueensland.ACustomsvesseltowedtheyachtwithits14passengersandthreecrew,toasafeanchorageintheleeofHamiltonIsland.

CustomsworkedwithAustraliangovernmentagenciestoundertakecapacitybuildingactivitiesinIndonesia,PapuaNewGuineaandSolomonIslands.Theseactivitiesaimto

improvetheabilityofAustralia’snearestneighbourstoeffectivelymanagetheirbordersandreformandmoderniseCustoms.

Economic impact

CustomsundertakesavarietyofactivitiesonbehalfofgovernmentthatcontributetotheeconomicperformanceofAustralia.Theseinclude:

• revenuecollectionthroughtheadministrationofduty,indirecttaxesandotherborder-relatedrevenue

• revenueprotectionthroughcomplianceactivity,whichpreventsillegalproductsfromenteringthemarket

• protectionofAustralia’soffshoreoilandgasfacilities

• anti-dumpingandcountervailingadministrationwhichsupportstheGovernment’sobjectiveofcreatingcompetitiveAustralianindustriesandstrongsustainableeconomicgrowth.Itprovides,whereappropriate,Australianmanufacturersandproducerswitharemedyagainstinjuriousdumpingbyoverseasindustries,orinjurioussubsidisationbyforeigngovernments,ofgoodsexportedtoAustralia

• administrationoftheTariffConcessionSystemwhich:

– assistsAustralianindustrytobecomemoreinternationallycompetitive

– encouragesinvestmentinefficientandsustainableindustries

– reducescoststothegeneralcommunitythroughtheremovalofimportdutieswherethereisnolocalmanufacturerofsubstitutablegoods

• contributiontoAustralia'stradefacilitationagendathroughparticipationinfreetradeagreementandWorldTradeOrganizationnegotiations,theAsiaPacificEconomicCooperationworkprogramandbilateralcustomscooperationinitiatives.TheseeffortsresultinreducedtransactioncostsforgoodsflowingbetweenAustraliaanditstradingpartners

• contributionbyCustomsoverseasposts

Sustainability 1�1

tothedevelopmentoftradebyworkingwithothercustomsadministrationsandorganisationstoestablishandimplementmeasurestosupportbordermanagementandtradefacilitation

• contributiontointernationalsupplychainsecurityinitiatives.

Global Reporting Initiative environmental indicators

TheGlobalReportingInitiativehasmorethan100optionalperformanceindicatorsforsustainability.Customshaschosentoreportagainst24whicharerelevantandforwhichdataisavailable.Thosenotreportedagainstarelistedattheendofthissection.

EM1:EnvironmentalManagementSystem(EMS)Conformance

CustomsconformswithitsEnvironmentalManagementPolicyby:

• recyclingtonercartridgesandlighttubes

• usingrecyclingbinsforpaper,aluminiumandplastic

• educatingstaffthroughsignsintoilets,kitchensandatphotocopierstoreinforceenvironmentalfriendlypractices

• addingclausestocleaningandrecyclingcontractstorequirerecycling

• usingrecycledpaperthroughoutCentralOffice.Customsisnowtriallinghigherpercentagerecycledcontentpaper.

EM2:Environmentalperformanceimprovementprocess

Customsmeasuresperformanceagainstenergytargetsandenergyauditrequirementsasrequiredbythegovernment.

TheCEOcommittedCustomstoboththeGreenhouseChallengeandtheEnvironmentalManagementPolicy.

EM3:Integrationofenvironmentwithotherbusinessmanagementsystems

Customsincorporatesenvironmentalfactorsintoitshighest-levelplanningdocuments,theCorporatePrioritiesandCorporateStrategicRiskProfile.Thesedocumentsareintegralintheplanningandperformanceframework,andformthebasisofplanningatallotherlevels.

Buildingspecificationsandleasesintegratesomeenvironmentalaspects.Customsisrequestingfivepercentnewgreen(renewable)energyinallnewmajorcontractswheretheheadleaseisheldbyCustoms.Lifecyclecostingisincorporatedintoprocurementprocesses.

EM5:Environmentalliabilities

Customsidentifiedsitesthathaveasbestosandotherhazardousmaterial.Occupationalhealthandsafetyguidelinesareinplaceforhazardoussubstancesandmanagingtheidentifiedrisks.

Enab

ling

Out

puts

S

usta

inab

ility


EN3:Directenergyuse(transport)*

�00�–0� �00�–0� �00�–0�^

Passenger Vehicles

LPG(L) 2256 838 ..

AutomotiveDiesel(L) 37135 35607 ..

Petrol(L) 612233 595335 ..

TotalGJ 22430 21756 ..

DistanceTravelled(km) 6217853 5547908 ..

MJ/DistanceTravelled(km)/annum 3.61 3.92 ..

Other Transport

AutomotiveDiesel(L) 2795958 3660243 ..

TotalGJ 107924 141285 ..

EntityTotals

Total GJ 1�� 0� ..

* Thesefigurescoverleasedvehiclesonly.Ownedvehicles,vesselsandleasedaircraftarenotincluded.

^ Figureswerenotavailableatthetimeofpublication.

EN3:Directenergyuse(tenantlightandpower)

�00�–0� �00�–0� �00�–0�^

Office – Tenant Light and Power

Electricity(kWh) 10304748 10020562 ..

TotalGJ 37097 36074 ..

Occupancy(People) 3164 2948 ..

Area(m2) 78534 76801 ..

MJ/Occupancy(People)/annum 11725 12237 ..

MJ/Area(m2)/annum 472 470 ..

m2/person 24.82 26.05 ..

Office – Central Services

Electricity(kWh) 1856427 1849212 ..

NaturalGas(MJ) 9138475 8886073 ..

TotalGJ 15822 15543 ..

Area(m2) 20009 22117 ..


Other Buildings*

Electricity(kWh) 3995800 5429769 ..

TotalGJ 14385 19547 ..

Area(m2) 66797 81198 ..


* ThisincreaseisduetotheCustomsContainerExaminationFacilitiesinSydney,Melbourne,BrisbaneandFremantlebecomingfullyoperational.



EN8:Greenhousegasemissions

�00�–0� �00�–0� �00�–0�^

Office–TenantLightAndPower

CO2/person/annum(tonnes) 4.70 4.90 ..

CO2/m2/annum(tonnes) 0.19 0.18 ..

TotalCO2/annum(tonnes) 14 14469.70 ..

Office–CentralServices

CO2/person/annum(tonnes) 880.05 0.91 ..


TotalCO2/annum(tonnes) 0.13 2670.26 ..

OtherBuildings


TotalCO2/annum(tonnes) 5769.93 7840.58 ..

PassengerVehicles*

TotalCO2/annum(tonnes)—LPG 3.60 1.47 ..

TotalCO2/annum(tonnes)—Diesel 112.09 107.48 ..

TotalCO2/annum(tonnes)—Petrol 1700.17 1653.27 ..

* Thesefigurescoverleasedvehiclesonly.Ownedvehicles,vesselsandleasedaircraftarenotincluded.


EN17:Initiativestouserenewableenergysourcesandincreaseenergyefficiency

• renewableenergysourcedwithinelectricitycontracts

• replace/modifylightingarrangements/fittings

• introductionofflatscreenswillsaveathirdofthecurrentmonitorenergycosts

• introductionofmulti-functiondevicesthatcombineprinter,photocopierandfacsimilefunctionsintooneunitresultinginenergysavings.

Global Reporting Initiative social indicators

HR12:Descriptionofpolicies,guidelinesandprocedurestoaddresstheneedsofindigenouspeople.Thisincludesindigenouspeopleintheworkforceandcommunitieswheretheorganisationoperatesorintendstooperate

CustomsworksinpartnershipwiththeAustralianPublicServiceCommissionandseveralotherFederalagenciestopilottheIndigenousEntryLevelRecruitmentInitiative.ThisinitiativeseekstoincreasethenumberofindigenousAustraliansandTorresStraitIslandersintheCommonwealthpublicsector.

CustomsparticipatesintheNationalIndigenousCadetshipProject.TheNationalIndigenousCadetshipProjectisaimedatimprovingtheprofessionalemploymentprospectsofAustralianindigenousandTorresStraitIslandpeoples.

Customsparticipatesinawhole-of-governmentIndigenousGraduateRecruitmentstrategyaimingtorecruitindigenousgraduatesforthe2006CustomsGraduateTraineeprogram.

Enab

ling

Out

puts

S

usta

inab

ility


LA1:Breakdownofworkforce,wherepossible,byregion/country,status(employee/nonemployee),employmenttype(fulltime/parttime),andbyemploymentcontract(indefiniteorpermanent/fixedtermortemporary).Alsoidentifyworkforceretainedinconjunctionwithotheremployees(temporaryagencyworkersorworkersinco-employmentrelationships)segmentedbyregion/country


Full-Time

Ongoingemployee 1025 1138 760 630 153 434 31 109 � ��0

Non-ongoing 102 8 4 8 - 2 - - 1��

Full-time total 1 1�� 1 1�� 1�� 1 10� � �0�

Part-Time

Ongoingemployee 43 233 153 106 26 58 1 5 ��

Non-ongoing 12 6 - 3 - 2 - - ��

Part Time total �� 1�� 10� �� 0 1 � ��

Casual

Non-ongoing 1 1 - - - - 1 - �

Total 1 1�� 1 �� 1� �� 1�� 11� � 0��

Males 750 832 564 446 97 304 20 57 � 0�0

Females 433 554 353 301 82 192 13 57 1 ��

Total 1 1�� 1 �� 1� �� 1�� 11� �0��

*IncludesstaffemployedunderthePublic Service Act 1999,staffonleave,higherdutiesandstaffonloanfromotheragencies.Figuresdonotincludecontractors.Numbersareheadcountandreflectactualoccupancy(derivedfromCustomsHumanResourceInformationSystems).Financialstatementsreportonstaffnumbersbyfull-timeequivalent(FTE).


LA2:Employmentnetcreationandaverageturnover

In2004–05Customsstaffturnoverratewas6.62percent.6ThetotalnumberofpeoplerecruitedfromexternalsourcesintoCustomsfor2004–05was636.

LA4:Policyandproceduresinvolvinginformation,consultationandnegotiationwithemployeesoverchangesinthereportingorganisation’soperations(egrestructuring)

CustomsemployeeparticipationstrategymeetstheGovernment’sobjectiveforemployerstomoredirectlyengagetheiremployeesonmattersaffectingtherelationshipbetweenemployeesandemployers.CustomshasestablishedaStaffCouncilcomprisingofmanagement,staffandunionrepresentatives.StaffCouncilconsidersanddiscusseslonger-termstrategicdirectionsandemergingissuesimpactingorpotentiallyimpactingCustomsemployees.

LA6:Descriptionofformaljointhealthandsafetycommitteescomprisingmanagementandworkerrepresentativesandproportionofworkforcecoveredbyanysuchcommittees

CustomsOccupationalHealthandSafety(OH&S)PolicyoutlinestheformalworkplacearrangementstopromoteeffectivecommunicationandconsultationonOH&Smatters.AnOH&SAgreementisinplacewiththekeyunioncoveringCustomsstaffonformalconsultationarrangements.CustomsOH&SCommitteesprovideaforumforconsultationandcommunicationforallstaff.TheNationalOH&SCommitteeoverseestheeffectivenessofthenationalpolicyframeworkwhileregionalOH&ScommitteesensureCustomsOH&Smanagementsystems

6Onlyongoingstaffareincludedintheseparationrate.


areworkingeffectivelyineachregion.DesignatedworkgroupspromoteconsultationonOH&Sissues.Healthandsafetyrepresentativesareelectedineachdesignatedworkgrouptorepresentthehealthandsafetyinterestsofallemployeeswithinthedesignatedworkgroup.

LA7:Standardinjury,lostdayandabsenteeratesandthenumberofworkrelatedfatalities(includingcontractedworkers)

OH&S Performance Indicators*

Performance measure �00�–0�* �00�–0�* �00�–0�*

Acceptedcompensationincidentclaims 243 215 173

Claimsper100Staff(headcount) 4.83 4.47 3.42

Acceptedcompensationincidentclaimswithtimeoffwork

134 115 98

Acceptedcompensationincidentclaimsresultingin5ormoredaysincapacity

71 55 64

Claimsof5or5ormoredaysincapacityper100Staff(headcount)

1.41 1.14 1.27

QualityofReturntoWorkOutcomes 87% 91% 88%

Annualabsenteeism** .. .. 12.17%

* asat31Julyofthatyear

**AnnualabsenteeismratesarecalculatedattheendoftheMarchquarter

LA10:Descriptionofequalopportunitypoliciesorprograms,aswellasmonitoringsystemstoensurecompliance

TheCustomsWorkplaceDiversityPolicydefinesworkplacediversitywithintheCustomsandAustralianPublicServicecontext.ItoutlinesCustomslegislativeobligationsinrelationtoworkplacediversityandsupportsadherencetotheseobligations.Itpromotesworkplacediversityandguidingprinciples,definesworkplacediversityrolesandresponsibilitiesforallemployees.Thepolicyisembeddedintonationalbusinessplans.

TheWorkplaceHarassmentPolicyincludesinformationonformalandinformalapproachestoresolvingcasesofharassmentandreinforcestheroleoftheAPSValuesandCodeofConduct.Itclarifiesrolesandresponsibilitiesforstaff.

Thisyear’sfocushasbeenonpromotingawarenessofthesepoliciesthroughthedeliveryoftrainingandinductionandsupportingthiswithpromotionalandsupportmaterialsandactivities.OnlinetrainingmodulescoveringAPSValuesandAPSCodeofConduct,workplacediversity,andcross-culturalawarenessaredevelopedandimplemented.Customsworkplaceharassmentreportingprocessisdeveloped,providingasafeandconfidentialmeansofreportingharassment.

LA11:Compositionofseniormanagementandcorporategovernancebodies,includingmale/femaleratioandotherindicatorsofdiversityasculturallyappropriate

Female Born Overseas* Indigenous

Number % Number % Number %

SeniorExecutiveService 15 40.5 5 13.5 - -

*NumberofstaffbornoutsideAustralia

Enab

ling

Out

puts

S

usta

inab

ility


LA12Employeebenefitsbeyondthoselegallymandated

Customsiscommittedtoprovidingarangeofflexibleworkpracticestoassistemployeestobalancepersonalresponsibilitiesandlifestylepreferenceswithorganisationalrequirements.Benefitsthatcouldapplydependingonindividuals’employmentconditionsinclude:

Flexibleworkinghoursincludingflextime;parttimework;shiftwork;rostereddaysoff;employeefundedextraleave;maternityleave;supportingpartnerleavefornewparents;eventleave(includingspecialleave,bereavementleaveandleavewithoutpay);personal/carer’sleave;adoptionleave;externaldevelopment;studyleave;jobsharing;compassionatetransfers;accesstoanemployeeassistanceprogram;accesstofamilyroomsandgymnasiums;domesticcaresupportscheme;andhomebasedwork.

LA16:Descriptionofprogramstosupportthecontinuedemployabilityofemployeesandtomanagecareerendings

TheCustomsFrameworkforLearningandDevelopment2005-2007integratesarangeofcurrentlearninganddevelopmentpoliciesandprogramstoprovidestaffwithopportunitiestodevelop,fromtheirentryintoCustomsandthroughouttheircareer.

ThemostsignificantaspectoftheFrameworkforLearningwithinCustomsistheCustomsDevelopmentProgram.TheCustomsDevelopmentProgramidentifiesthecoreskillsrequiredofallstaffandspecialistskillsthatvarydependingonassignment.TheProgramenablesstaffandsupervisorstosatisfyindividualaswellasorganisationalneeds.Variousdevelopmentoptionsareavailable,includingformalmodulesthroughtertiaryinstitutions.Staffwhoattaintherequirednumberofcompetenciesareeligibletoreceiveanationallyrecognisedqualification.Thisassistsinentrytoothertertiarycourses.

Customshasawell-establishedapproachtoworkforceplanning,successionmanagementandcareerreassignment.In2005,asuccessionmanagementandcareerreassignmentpolicyandtoolkitwasdevelopedtoimprovetheseprocesseswithinCustoms.

SO1:Descriptionofpoliciestomanageimpactsoncommunitiesinareasaffectedbyactivities,aswellasdescriptionofprocedures/programstoaddressthisissue,includingmonitoringsystemsandresultsofmonitoring.Includeexplanationofproceduresforidentifyingandengagingindialoguewithcommunitystakeholders

CustomsRegulatoryPhilosophyensuresthatCustomsinterventionactivityistargetedandthatimpactonlegitimatetradersortravellersisminimised.Customsfostersanenvironmentofco-operationwithclientstoachieveclientcompliancewiththelawsandregulationsadministeredbyCustoms.

TheCustomsNationalConsultativeCommittee(CNCC)isanationalforumforcommunicatingpolicies,practicesandproceduresrelevanttothetradingcommunity.TheCNCCworksinpartnershipwiththetradingcommunitytoresolveperceiveddifficultiesandisthemajorforumforregularconsultationonawiderangeofmatters.

CustomsComplaintsandComplimentsManagementSystemprovidesclientswithanopportunitytoprovidefeedbackonanyaspectoftheirdealingswithus.Feedbackisusedinassessingwaysthattheservicecanbeimproved.

FrontlineisacooperativeprogrambetweenCustomsandindustrygroupsinvolvedininternationaltradeandtransport.FrontlinemembersdrawontheircommercialexpertisetoidentifysuspiciousbehaviourandassistCustoms.


TheCustomsHotlineisacommunityparticipationprogramthatdrawsontheknowledgeandexpertiseofpeoplelivingandtravellingthroughoutAustraliatoreportpotentialoractualillegalactivities.

Customsincreaseduseoftechnologyminimisestheintrusivenatureofinspectionandexpeditestheprocesswhereinterventionisnecessary.Forexample,x-rayofcargoandbaggagecan,attimes,eliminatetheneedforphysicalexamination.

InFebruary2004,DefenceMinisterSenatorHillandJusticeandCustomsMinisterSenatorEllisonsignedIndigenousLandUseAgreementswiththepeopleofDauanandBaduIslandsintheTorresStraittoinstallHighFrequencySurfaceWaveRadarfacilities.Localcommunitieswereprovidedemploymentopportunitiesduringpreparationofthesiteandconstructionandtherewillbeongoingemploymentduringthetrialforresidentsundertakingtheroleofcaretakers.

Global Reporting Initiative economic indicators

EC3:Costofallgoods,materials,andservicespurchased

$537.345m*(thisincludesresourcesreceivedfreeofcharge$145.832m)

*thesefiguresrelatetooperatingexpenditureonlyandexcludeanycapitalacquisitions

EC5:Totalpayrollandbenefits(includingwages,pension,otherbenefits,andredundancypayments)brokendownbycountryorregionfor2004–05($m)

NewSouthWales 92.129

Victoria 57.607

Queensland 49.882

WesternAustralia 33.238

SouthAustralia 10.288

Tasmania 1.918

NorthernTerritory 7.716

Corporate,includingtheAustralianCapitalTerritory 102.756

Total ��.��m

PA11:Describeprocurementpolicyofthepublicagencyasrelatestosustainabledevelopment

Customscomplieswithrelevantgovernmentpolicycontributingtosustainabledevelopment.ThesepoliciesincludeenvironmentalpoliciesasoutlinedintheDepartmentofFinanceandAdministration,FinancialManagementGuidanceNo.10Guidance on Complying with Legislation and Government Policy in Procurement—January 2005.Customscomplieswiththesepoliciesthroughincludingmodelenvironmentalclausesinrequestfortenderdocumentationandconsidering(andpossiblyexcluding)tenderresponsesthatidentifynon-compliancewithgovernmentpolicies.

Enab

ling

Out

puts

S

usta

inab

ility


PA12:Describeeconomic,environmental,andsocialcriteriathatapplytoexpendituresandfinancialcommitments

Customsapplieseconomic,environmentalandsocialcriteriainitsprocurementoperationsthatareoutlinedintheDepartmentofFinanceandAdministration,FinancialManagementGuidanceNo.10Guidance on Complying with Legislation and Government Policy in Procurement—

January 2005.Customscomplieswiththesepoliciesthroughevaluationcriteriainprocurementdocumentsthatconsidereconomic,environmentalandsocialcriteriasuchasoccupationalhealthandsafety,whole-of-lifecostingandozone-pollutingsubstances.

Purchasingrequirementsconsiderawiderangeofpoliciesthatmeetgovernmentrequirementsforeffectivepurchasing.Examplesinclude:

APSValues,EthicsandStandardsofConduct,ChiefExecutiveInstructions,OccupationalHealthandSafetyPolicy,FreedomofInformationActandPrivacyAct.

PA14:Percentageofthetotalvalueofgoodspurchasedthatwereregisteredwithvoluntaryenvironmentalorsociallabelsand/orcertificationprograms,brokendownbytype

Customsrequeststendererstoprovidedetailsofanycertificationstheymighthaveaspartofthetenderprocess.Aqualityaccreditationmayprovidetendererswithhighertenderscores.

Customsdoesnotreportagainstthefollowingglobalreportinginitiativeindicatorseitherbecausedataisnotavailable,ortheindicatorisnotrelevanttothesustainableperformanceofCustoms:

Environmental

EM4,EN1,EN2,EN4,EN5,EN6,EN7,EN9,EN10,EN11,EN12,EN13,EN14,EN15,EN16,EN18,EN19,EN20,EN21,EN22,EN23,EN24,EN25,EN26,EN27,EN28,EN29,EN30,EN31,EN32,EN33,EN34,EN35

Social

HR1,HR2,HR3,HR4,HR5,HR6,HR7,HR8,HR9,HR10,HR11,HR13,HR14,LA3,LA5,LA8,LA9,LA13,LA14,LA15,LA17,PR1,PR2,PR3,PR4,PR5,PR6,PR7,PR8,PR9,PR10,PR11,SO2,SO3,SO4,SO5,SO6,SO7

Economic

EC1,EC2,EC4,EC6,EC7,EC8,EC9,EC10,EC11,EC12,EC13,PA8,PA9,PA10,PA13

External scrutiny

Freedom of information

In2004–05,40requestsweremadetoCustomsundersection15oftheFreedom of Information Act 1982(FOIAct).

ThecosttoCustomsofadministeringrequestsishighandapplicablefeesandcharges,unchangedsince1982,donotrecoveractualcosts.Thesizeofrequestsincreasedsignificantly.Largerequestsplacesignificantpressureontheorganisationandcanresultinprocessingofapplicationsbeingdelayed.

Section8oftheFOIActrequiresCustomstopublishdetailsaboutcertainagencyfunctionsanddocuments.Thisincludesdetailsaboutthewaytheagencyisorganised,functions,decision-makingpowers,arrangementsforpublicinvolvementintheworkoftheagency,documentsheldbytheagencyandthewayinwhichmembersofthepublicmayobtainaccesstothesedocuments.ThisinformationisatAppendixB.

Figure ��: Requests made under the FOI Act

�00�–0� �00�–0� �00�–0�

Requests received*

Section15 41** 42** 40**

Section54(internalreview) 4 4 7

Section55(AATreview) 1 2 3

Total 46 48 50

Decisions on section 1� requests

Accessgrantedinfull 15 12 9

Accessgrantedinpart 22 15 14

Accessrefused 4 3 6

Requeststransferred 1 0 0

Requestswithdrawn 5 8 6

Time taken to process section 1� requests

0–30days 26 19 13

31–60days 11 10 6

61–90days 3 1 6

90plusdays 1 0 3

Fees and charges ($) collected for section 1� and section �� requests

Totalapplicationfeescollected 1290 1071 1390

Totalchargesnotified 7531 2046 4341

Totalchargescollected 3405 1066 3177

Outstandingchargesat30June 4126 980 424

* Asection15requestisarequestforaccesstoinformation.Asection54requestisarequestforadecisionaboutasection15requesttobereviewedbyCustoms(internalreview).Asection55requestisarequestforadecisionaboutasection15requesttobereviewedbytheAAT(externalreview).FurtherinformationontheserequestsisavailableintheFreedom of Information Act 1982.

** Includesrequestscarriedoverfromthepreviousfinancialyearandrequestsstillbeingprocessedattheendofthefinancialyear.

Externalscrutiny 1��

Enab

ling

Out

puts

Ext

erna

lsc

rutiny


Ministerial representations

TheMinisterforJusticeandCustomsreceived1915itemsofCustomsrelatedcorrespondence.CustomsprovidedtheMinisterwithadviceandrecommendationsonthe1557itemsthatrequiredaresponse.Majorissueswere:

• applicationsforpermitstoimportgoods

• informationonimportrequirements

• thepaymentofCustomsdutyandgoodsandservicestaxonimportedgoods

• anti-dumpinginvestigations

• processingofpassengersatairports

• changestopassengerconcessions

• coastalsurveillancematters

• changestolegislationandregulationsadministeredbyCustoms.

CustomsalsoprovidedtheMinisterwith455briefingsonissuesincluding:

• initiatinganti-dumpinginvestigations

• significantseizuresofprohibitedimportssuchasillicitdrugs

• proposedchangestolegislationandregulationsadministeredbyCustoms

• othersignificantpolicyandproceduralmatters.

Privacy matters

TherewasonecomplainttothePrivacyCommissioneragainstCustomsin2004–05.TheissuewasCustomsfailuretoprovideaccesstopersonalinformationheldaboutanindividual.Thecomplaintwasclosedundersection41(1)(f)ofthePrivacy Act 1988onthegroundsthattheFreedomofInformationActwasamoreappropriatemannerfortheindividualtoaccesstheinformationCustomsheld.

ThePrivacyCommissioneralsoconductedtwoauditsofCustoms.ThefirstauditrelatedtothecollectionandmanagementofPassengerNameRecordsbythePassengerAnalysisUnitatCustoms.ThesecondauditwasajointauditofCustomsandtheDepartmentofForeignAffairsandTrade.TheaudittestedtheinformationflowsbetweentheDepartmentofForeignAffairsandTrade’sbiometricpassporttrialandCustomsuseoftheprototypebiometricpassportsintheSmartGatefacial-recognitiontrial.

Whilebothreportsmaderecommendationstolimitprivacyrisk,nobreachesofthePrivacyActwerefound.

Commonwealth Ombudsman matters

Figure61outlinescomplaintsandissuesdealtwithbytheCommonwealthOmbudsmanin2004–05.Customswasfoundtobeatfaultinonecase.

Figure �0: Ministerial correspondence and briefings

�00�–0� �00�–0� �00�–0�

MinisterialcorrespondencereceivedonCustomsissues 1413 1669 1915

MinisterialbriefingsprovidedbyCustoms 397 510 455

Enab

ling

Out

puts

E

xter

nalsc

rutiny

Figure �1: Complaints and issues raised with the Commonwealth Ombudsman

�00�–0� �00�–0� �00�–0�

Complaintsraised 70 73 84

Complaintsfinalised 76 73 85

Issuesinvestigated

Agencydefect 2 3 1

Noagencydefect 10 6 9

Issueswithdrawnorlapsed 2 4 1

Ombudsmanexerciseddiscretionnottoinvestigate 62 70 65

Issuesfinalised 82 83 92

Note:Morethanoneissuemightberaisedinacomplaint.Someissuesarenotcompletedwithintheyearduringwhichtheyareraised.

The Ministerial and Parliamentary team, from back row, left to right: Brad Dornan, Liz White, Susan Hyde, John Stephenson,

Jason Fedderson, Amanda Peters, Kerry Uttley, Nina Brinckley and Bill Eversham.

Customs teams – preparing for a new government

When a federal election is called, small teams of public servants are formed in Commonwealth agencies to work behind the scenes on little known but critical work for continuity of Australia’s government.

Whenlastyear’sfederalelectionwascalled,theMinisterialandParliamentarysectionwithinCustomsformedaprojectteamtoundertakearangeofduties,includingsomerequiredbytheDepartmentofthePrimeMinisterandCabinet.

TheElectionProjectteamprovidedadvicetoCustomsstaffonthelong-establishedcaretakerconvention,thespecialcontinuityofgovernmentarrangementsthatapplywhenan

electioniscalleduntilanewgovernmentisformed.Theteamreviewedandmaintainedaregisterofallelectioncommitmentsandpoliciesrelatingtotheagency.Italsoco-ordinatedabriefingdocumentfortheincominggovernmentandprepareddetailedbriefingsfortheincomingMinisterandOppositionShadowMinister.

TheteamhelpedtoensurethatCustomsstaffwereawarethattheapoliticalnatureofthePublicServiceneededtobemaintainedduringtheelectioncampaign.TheteamensuredthatadetailedbriefingonCustomsoperationswasavailabletotheincominggovernment—nomatterwhichpoliticalpartyformedthatgovernment.

Enab

ling

Out

puts

E

xter

nalsc

rutiny

Externalscrutiny 1�1


Judicial decisions and decisions of administrative tribunals

ParksHoldingstradingasGladstoneChemicals(FullFederalCourt)

ThiscasewasanappealbyParksHoldingsthatimportedpetroleumproductdescribedas‘gasoil’wasclassifiableasdieselfuelintheCustoms Tariff Act 1995ascontendedbyCustoms.

AkeyissuewaswhetherthedemandfordutypayablewasvalidinviewoftheCustomsofficerissuingthosedemandsnothavingadelegationtomakethemunders165oftheCustomsAct.Rather,hehadadelegationunders165ofthe Excise Act 1901.

TheCourtatfirstheldthatitcouldnotremedythewrittendelegationwhichcontainedaclericalerror.However,asParksHoldingshadactedfraudulently(bywhiting-outthedescriptionof‘gasoil’fromitssupplier’sinvoice)thedemandsfordutydidnothavetocomplywiths165oftheCustomsAct.InsteadtheCourtheldthatthedemandswerevalidbecausetheCustomsofficerwasaCollectorwithinthemeaningofthatActandwasthereforeentitledtomakesuchdemandsunders153.ParksHoldingsappealedonlythataspectoftheCourt’sdecisiontotheFullBenchoftheFederalCourt.

TheFullCourtupheldthevalidityofthedemandasprovidedforunders167oftheCustomsActand,therefore,theTribunal’sjurisdictionunders273GA(2).Theword‘demanded’ins167(1)doesnotrefertoademandexpresslyauthorisedbyaparticularsectionoftheCustomsAct.Further,ifanadministrativedecisionmakerpurportstoactunderoneheadofpowerwhichdoesnotexist,butthereisanotherheadofpoweravailablewhichcanbesatisfied,thedecisionisvaliddespitepurportedrelianceontheunavailableheadofpower.

TheFullCourtaffirmedtheHighCourt’sobservationinMalika Holdings Pty Ltdv Stretton(2001)204CLR290thats165oftheCustomsActauthorisesCustomstomakeademandforduty

shortleviedasaresultofitsmistakeasopposedtobeingmisinformedbytheownerastotheproperdutypayable.

Inglewood(FullFederalCourt)

ThiscaseconcernedthedecisionsmadebytheCEOofCustomsandtheTradeMeasuresReviewOfficer(TMRO)toterminateaninvestigationintotheallegedsubsidisationofoliveoilexportedtoAustraliafromGreece,ItalyandSpain.CustomshadconductedtheinvestigationinresponsetoanapplicationlodgedbyInglewood.TheCEOterminatedtheinvestigations,afterapproximatelyfivemonths,intotheallegedsubsidisationanddumpingoftheoliveoil.TheTMROaffirmedthatdecision.InglewoodthenappealedthedecisiontotheFederalCourtandsubsequentlytheFullBenchoftheFederalCourt.

TheFederalCourtheldthats269TDA(2)(b)(i)oftheCustomsActpermittedtheCEOtoterminatetheinvestigationifsatisfiedthattherewasnocountervailablesubsidisationofthegoods.TheCEOwasnotrequiredtoreferanypreliminaryissuetotheMinistertoreachthatstateofsatisfaction.

TheFederalCourtalsoheldthattheCEOerredinexpressingthetestofs269TDA(2)(b)(i)inthenegative—thathewasnotsatisfiedthatacountervailablesubsidyhadbeenreceivedinrespectofthegoods—ratherthanintheaffirmative—thathewassatisfiedthatacountervailablesubsidyhadnotbeenreceivedinrespectofthosegoods.However,theTMROdidnotreplicatetheerror.TheFullCourtaffirmedthis.

TheFederalCourtalsoaffirmedtheCEOandTMRO’sfindingthatasubsidywasnotreceived.However,theFullCourtheld,morefirmlythantheFederalCourt,thattheCEOerredinaddressingthetestofsubsidiespaidtotheolivegrowersasonewhichconferredabenefitontheexporter—ratherthaninrelationtotheexportedgoods.BothCourtsfoundthattheTMRO,whosedecisionsupersedestheCEO’sdecision,didnotmakethesameerror.TheFullCourtdismissedInglewood’sappeal.


Holden(FullFederalCourt)

ThiscasewasanappealtotheFederalCourtbyHoldenfromadecisionoftheAdministrativeAppealsTribunalthatHoldenwasnoteligibletoclaimdrawbackofcreditsissuedtoitunderthenowdefunctExportFacilitationScheme(EFS).ThecreditshadbeenusedtooffsetCustomsdutyliabilityonimportedmotorvehiclesandcomponentsthatweresubsequentlyexported.

TheEFSwasanadministrativearrangementwhichhadsomestatutoryrecognitioninItem41AofSchedule4tothe Customs Tariff Act 1995.TheissuefortheCourtwaswhetherEFScreditscouldbetreatedasdutyforthepurposesofclaimingdrawback.

TheCourtheldthattheuseofEFScreditsdidnotamounttoapaymentofduty.TheCourtagreedwiththeTribunal’sreadingofItem41A.ThedutypayablewhenEFScreditsareemployedistheamountremainingaftertheEFScreditsareusedtoreducetheamountofdutyratherthantheamountbeforethereduction.Regulation136Bofthe Customs Regulations 1926preventsanimporterfromclaimingdrawbackofimportdutytotheextentthatany‘rebate’wasallowedonthatduty.

TheEFShasnowbeenreplacedbytheAutomotiveCompetitivenessandInvestmentScheme.Creditsissuedunderthelatterschemecanbecountedasdutyfordrawbackpurposes(sees168(2)oftheCustomsAct).

Eberle(FederalCourt)

ThiscasewasanappealtotheFederalCourtbyMrEberlefromadecisionoftheAdministrativeAppealsTribunalthatthetransactionvaluationmethod(orpurchasepriceattimeofcontractofsale)insteadofthefall-backvaluationmethod(orvehicle’svalueinAustraliaattimeofimportation)appliedindeterminingthecustomsvalueofanimportedusedmotorvehicle.ThatvehiclehadbeenremotelypurchasedfromtheUnitedStates,storedandnotusedpriortoitsimportationintoAustraliasomethreeyearslater.

Theapplicationofthetransactionvaluemethoddependedonwhetherthecircumstancesofthepurchaseofthevehiclecamewithinthedefinitionof‘importsalestransaction’unders154(1)oftheCustomsAct.

TheCourtfoundthatthepurchaseofthevehiclewasnotanimportsalestransaction.Forsuchatransactiontoexist,thecontractofsalefromitstermsorsurroundingcircumstancesmustbeacontractforboththeimportationintoAustraliaandexportationfromtheUnitedStatesofthevehicle.MrEberle’spurchaseofthevehiclewasandremainedadomesticsale,irrespectiveofhisintentiontoultimatelyimportthevehicle.

Auditor General’s reports

TheAustralianNationalAuditOffice(ANAO)auditedthefinancialstatementsofCustomsinaccordancewithitsannualfinancialstatementsreviewofCommonwealthentities.

TheANAOconductedtwoperformanceauditsspecifictoCustoms:

• ANAO Report No.16 2004–05—Container Examination Facilities

• ANAO Report No.41 2004–05—Administration of Security Incidents, including the Conduct of Security Investigations

TheANAOispreparingfinalreportsforthefollowingreviewsthatinvolvedCustoms:

• AdvancePassengerProcessing

• InternetSecurity—Follow-up

• SenateOrderforDepartmentalandAgencyContracts(2004CalendarYear)

• CounterterrorismCoordinationArrangements

• CustomsComplianceAssuranceStrategyforInternationalCargo

• ManagementofNetAppropriationAgreements.

OtherreportsrelevanttoCustomsreleasedin2004–05included:

• ANAO Report No.3 2004–05—Management of Internal Audit in Commonwealth Organisations

• ANAO Report No.4 2004–05—Management of Customer Debt

• ANAO Report No.6 2004–05—Performance Management in the Australian Public Service

• ANAO Report No. 10 2004–05—The Senate Order for Departmental and Agency Contracts (Calendar Year 2003 Compliance)

Enab

ling

Out

puts

E

xter

nalsc

rutiny


• ANAO Report No. 12 2004–05—Research Project Management Follow-Up Audit

• ANAOReportNo.132004–05—SuperannuationPaymentsforIndependentContractorsworkingfortheAustralianGovernment

• ANAO Report No. 15 2004–05—Financial Management of Special Appropriations

• ANAO Report No. 21 2004–05—Audits of the Financial Statements of Australian Government Entities for the Period Ending 30 June 2004

• ANAO Report No. 22 2004–05—Investment in Public Funds

• ANAO Report No. 26 2004–05—Measuring the Efficiency and Effectiveness of E-Government

• ANAO Report No. 37 2004–05—Management of Business Support Service Contracts

• ANAO Report No. 40 2004–05—The Edge Project

• ANAO Report No. 44 2004–05—Defence’s Management of Long-term Property Leases

• ANAO Report No. 46 2004–05—Management of Trust Monies in CAC Act entities

• ANAO Report No. 49 2004–05—Administration of Fringe Benefits Tax

• ANAO Report No. 52 2004–05—Legal Service Arrangements in the Australian Public Service

• ANAO Report No. 55 2004–05—Workforce Planning

• ANAO Report No. 56 2004–05—Interim Phase of the Audit of Financial Statements of General Government Sector Entities for the Year ending 30 June 2005

• ANAOReportNo.572004–05—PurchasingProceduresandPractices

TheCustomsAuditCommitteemonitoredtheimplementationoftherecommendationsarisingfromtheCustomsaudits.ThecommitteealsosoughtcommentsfromlineareasonrecommendationsthatmighthaverelevancetoCustoms.TheseresponseswerecirculatedtotheCustomsExecutive.

TheANAOalsoissuedBetterPracticeGuidesfor Fraud Control in Australian Government Agencies,andPublic Sector Audit Committees.CustomsaddressedsomeofthesuggestionsandinformationintheseguidesandincorporatedthemintotheFraudControlPlan,andtheoperationsoftheAuditCommittee.

FurtherinformationonANAOreportsisavailableontheANAOInternetsiteatwww.anao.gov.au.

Parliamentary Committee reports

JointCommitteeofPublicAccountsandAudit

Customsprovidedsubmissionstothe:

• ReviewofAuditorGeneral’sReport(Audit Report No 16 (2004–05) – Container Examination Facilities)

• InquiryintodevelopmentsinaviationsecuritysincetheCommittee’sJune2004Report 400: Review of Aviation Security in Australia.

JointStandingCommitteeonForeignAffairs,DefenceandTrade

CustomsprovidedasubmissiontotheCommittee’sinquiryintoAustralia’srelationshipwiththeRepublicofKorea,andthedevelopmentsontheKoreanPeninsula.

SenateEconomicsLegislationCommittee

TheCommitteeinquiredintoCustoms Tariff Amendment (Textile, Clothing and Footwear Post 2005 Arrangements) Bill 2004.TheCommitteereportedtotheSenateon30August2004.

SenateForeignAffairs,DefenceandTradeCommittee

CustomsprovidedasubmissiontotheCommittee’sinquiryintoAustralia’srelationshipwithChina.TheCommitteeisduetoreporttotheSenateby15September2005.

SenateStandingCommitteefortheScrutinyofBills

CustomsprovidedasubmissionandappearedattheCommittee’sinquiryintoentry,searchandseizureprovisionsinCommonwealthlegislation.TheCommitteeisinquiringintotheGovernment’s


responsetoitspreviousreportonentryandsearchprovisions,tabledin2000,andprovisionsmadesincethereportwastabled.

SenateLegalandConstitutionalCommittee

CustomsappearedbeforetwoSenateLegalandConstitutionalLegislationCommitteeEstimateshearings:

• AdditionalEstimatesHearings,14February2005

• BudgetEstimatesHearings,24May2005.

Customsansweredatotalof111QuestionsonNoticefromthesehearings,(68fromFebruary2005and43fromMay2005).Customsalsoanswered154QuestiononNoticereceivedinplaceoftheNovember2004SupplementaryBudgetEstimateshearings,whichincludes20responsestoportfolioQuestionsonNotice.

HouseofRepresentativesStandingCommitteeonLegalandConstitutionalAffairs—Avermentprovisions

On2April2003,theCommitteeannouncedaninquiryintoavermentprovisionsinAustralianCustomslegislation.The2002–03CustomsAnnualReport(seepages32and119)andthe2003–04CustomsAnnualReport(seepages116and117)containinformationconcerningthisinquiry.

TheHouseofRepresentativesStandingCommitteeonLegalandConstitutionalAffairsCommitteetableditsreportinParliamenton31May2004,Modern-day usage of averments in Customs prosecutions.Thereportcontainedsixrecommendations.

TheCommittee’srecommendationsconcerningamendmentstoCustomslegislationaresimilartocommentsbytheAustralianLawReformCommissioninitsreportNo.95Principled Regulation: Federal Civil and Administrative Penalties in Australiatabled19March2003.Recommendations13-1,13-2and13-3inthisreportaddressissuesspecifictoCustomslegislation,includingrecommendationsonavermentsandcharacterisationofCustomsprosecutionsandarereferredtounderAustralianLawReformCommissionreportonFederalcivilandadministrativepenaltiesonpage83.TheGovernmentresponseispending.

FurtherinformationisontheParliamentHousewebsiteathttp://www.aph.gov.au/house/committee/laca/averment/report.htm.

Enab

ling

Out

puts

E

xter

nalsc

rutiny


Section �Financialstatements

Photo:CentralOffice,Canberra.


Overview of financial statements

Audited financial statements

ThefinancialstatementsincorporatetheagencyfinancialstatementsforCustomsandtheschedulesofadministereditemsrelatingtoitemsadministeredbyCustoms.

AcomprehensivesetofnotestothefinancialstatementsisprovidedasrequiredbytheFinanceMinister’sOrdersincludingnote1,thesummaryofthesignificantaccountingpoliciesonwhichthefinancialstatementshavebeenprepared.Note2tothefinancialstatementsprovidesinformationontheadoptionofAustralianequivalentstointernationalfinancialreportingstandardswhichapplyfromthe2005–06financialyear.

ThefinancialstatementsincludeastatementbytheCEOandChiefFinancialOfficerthatfinancialrecordshavebeenproperlymaintainedandthattheygiveatrueandfairviewofthemattersrequiredbytheFinanceMinister’sOrders.TheindependentauditreportoftheAuditorGeneralonthefinancialstatementshasbeenincludedwithinthefinancialstatements.

Agency statements

In2004–05,Customsreportedanetoperatingsurplusof$37.1mascomparedwithanetoperatingsurplusof$6.1min2003–04.

Totalrevenuefor2004–05was$962.2m(upfrom$806.7min2003–04).ThisincreaseisprimarilyduetoadditionalfundingprovidedfornewmeasuresandtheoutcomesoftheReviewofCustomsFinancialHealthasannouncedinthe2004–05BudgetandthePortfolioAdditionalEstimatesStatements.

Totalcostsfor2004–05were$925.1m($800.6min2003–04).ThisincreaseisprimarilyduetoincreasesinemployeecostsrelatedtoincreasesundertheCertifiedAgreementandadditionalexpenditureassociatedwithnewmeasures.

TheagencystatementoffinancialpositionrepresentsthefinancialpositionofCustomsasat30June2005andtakesintoaccountmovementsinassets,liabilitiesandequity.

Totalequityhasincreasedto$276.6mcomparedwith$198.1min2004.Thisincreaserelatesprincipallytothereportedsurplusfortheyear,thecarryforwardofexpenditureassociatedwiththeCargoManagementReengineeringprojectandcapitalinjectionsassociatedwithnewinitiativesfundedbytheGovernment.

Administered schedule

Ascheduleofadministereditemsispresentedwithinthefinancialstatementsdisclosingallrevenues,expenses,assets,liabilities,cashflow,commitments,contingentassetsandliabilities.

Customsdutycollectionsin2004–05totalled$5.6b($5.6bin2003–04).TheimpactoftheimplementationofgeneraltariffreductionsandthecommencementoftheUnitedStatesandThaiFreeTradeAgreementsfrom1January2005wasoffsetbythecontinuationofastrongeconomyandlowinterestrateenvironment.

Othertaxes,feesandfinesarepredominantlymadeupofPassengerMovementChargecollectionsof$363.8m($329.8min2003–04)andimportprocessingchargesof$128.6m($119.7min2003–04).ThesignificantincreaseinthePassengerMovementChargereflectsa12percentincreaseinpassengermovementintoandoutofAustraliaduringtheyear.Similarlytheincreaseintheimportprocessingchargerevenuereflectsacontinuationofstrongeconomicconditions.

Totaladministeredexpenses$535.7m($609.9min2003–04)reducedduetothereductionofdutyoffsetsassociatedwiththeAutomatedCompetitivenessandInvestmentSchemeduringtheyearandalsoasadditionalprovisioningforcollectablessuchaspenalties,finesandfeeshadbeenmadeinthe2003–04financialyear.

Totalnetadministeredfinancialassetsof$65.1m($54.6min2003–04)principallyconsistsofrevenuesreceivableandliabilitiesassociatedwithfundsheldinspecialaccounts.

FinancialStatements 1��

Fina

ncia

l st

atem

ents


FinancialStatements 1�1

Fina

ncia

l st

atem

ents

AUSTRALIANCUSTOMSSERVICE–STATEMENTBYTHECHIEFEXECUTIVEANDCHIEFFINANCEOFFICER


AUSTRALIANCUSTOMSSERVICE–STATEMENTOFFINANCIALPERFORMANCE fortheyearended30June2005

�00� 2004

Notes $’000 $’000

Revenues from ordinary activities

RevenuesfromGovernment 4A ��,�� 591,554

Goodsandservices 4B ��,1�� 77,351

Interest 4C 1 -

Revenuefromsaleofassets 4D �� 264

Otherrevenues 4E 1��,�� 137,572

Revenues from ordinary activities ��,�1� 806,741

Expenses from ordinary activities (excluding borrowing costs expense)

Employees 5A ��,�� 320,524

Suppliers 5B ��,�� 447,106

Depreciationandamortisation 5C ��,��0 28,198

Write-downandimpairmentofassets 5D �� 2,919

Valueofassetssold 4D �� 314

Otherexpenses 5E ��1 988

Expenses from ordinary activities (excluding borrowing cost expense)

��,�� 800,049

Borrowing costs expense 6 �� 557

Net surplus/(deficit) from ordinary activities ��,0�� 6,135

Netcredit/(debit)toassetrevaluationreserve 12 �1 (2,148)

DecreaseinaccumulatedresultsoninitialapplicationoffairvalueunderAASB1041Revaluation of Non-current Assets 12 - (139)

Total Revenues, Expenses and Valuation Adjustments Attributable to Member of the Parent Entity and Recognised Directly in Equity �1 (2,287)

Total Changes in Equity other than those resulting from transactions with the Australian Government as Owner ��,11� 3,848

Note:DuetospecificdisclosurerequirementsregardingResourcesReceivedFreeofCharge(RRFOC)fromrelatedentities,RRFOCreceivedfromDefencehasbeenclassifiedas‘Otherrevenues’.Previously,thiswasclassifiedunder‘RevenuesfromGovernment’.Figuresin2003–04(designatedinItalics)havebeenre-classifiedforamoremeaningfulcomparisonwithfiguresin2004–05.

Theabovestatementshouldbereadinconjunctionwiththeaccompanyingnotes.


Fina

ncia

l st

atem

ents

AUSTRALIANCUSTOMSSERVICE–STATEMENTOFFINANCIALPOSITIONasat30June2005

�00� 2004

ASSETS Notes $’000 $’000

Financial Assets

Cash 7A 1�,0�� 24,097

Receivables 7B ��,0�1 23,176

Total Financial Assets 111,0�� 47,273

Non-Financial Assets

Landandbuildings 8A,C ��,��0 40,881

Infrastructure,plantandequipment 8B,C �0,�� 81,692

Intangibles 8D 1��,��1 163,156

Inventories 8E 1,0�0 1,205

Othernon-financialassets 8F �,1�� 10,624

Total Non-Financial Assets ��,�� 297,558

Total Assets ��,�0� 344,831

LIABILITIES

Interest Bearing Liabilities

Leases 9A �,�� 7,928

Total Interest Bearing Liabilities �,�� 7,928

Provisions

Employees 10 10�,��0 109,262

Total Provisions 10�,��0 109,262

Payables

Suppliers 11A ��,�� 25,347

OtherPayables 11B �,0�� 4,182

Total Payables ��,�� 29,529

Total Liabilities 1��,�0� 146,719

NET ASSETS ��,�0� 198,112

EQUITY

Contributedequity 12 �00,�0� 159,525

Reserves 12 1�,��0 15,399

Retainedsurplusesoraccumulateddeficits 12 �0,��0 23,188

TOTAL EQUITY ��,�0� 198,112

Current Assets 11�,��0 57,897

Non-current Assets �1�,0�� 286,934

Current Liabilities ��,1�� 75,606

Non-current Liabilities ��,�� 71,113



AUSTRALIANCUSTOMSSERVICE–STATEMENTOFCASHFLOWSfortheyearended30June2005

�00� 2004

Notes $’000 $’000

OPERATING ACTIVITIES

Cash Received

Goodsandservices �1,��1 79,961

Appropriations �1�,�� 596,554

Interest 1 -

NetGSTreceivedfromATO ��,�� 33,887

Other 1�� 25

Total Cash Received �1�,�� 710,427

Cash Used

Employees ��,�� 312,010

Suppliers �0�,1�� 342,211

Borrowingcosts �� 557

Other ��1 40

Total Cash Used ��,1�� 654,818

Net Cash From or (Used by) Operating Activities 13 ��,1�� 55,609

INVESTING ACTIVITIES

Cash Received

Proceedsfromsalesofproperty,plantandequipment �� 264

Total Cash Received �� 264

Cash Used

Purchaseofproperty,plantandequipment �0,�� 23,519

Purchaseofintangibles ��,�0� 67,635

Total Cash Used ��,�� 91,154

Net Cash From or (Used by) Investing Activities (��,��) (90,890)

FINANCING ACTIVITIES

Cash Received

Appropriations–Contributedequity 1�,�1� 52,436

Total Cash Received 1�,�1� 52,436

Cash Used

Repaymentofdebt �,1�� 4,842

Total Cash Used �,1�� 4,842

Net Cash From or (Used by) Financing Activities 1�,��1 47,594

NetIncreaseor(Decrease)inCashHeld (�,0��) 12,313

Cashatthebeginningofthereportingperiod ��,0�� 11,784

Cash at the End of the Reporting Period 7A 1�,0�� 24,097



Fina

ncia

l st

atem

ents

AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFCOMMITMENTSasat30June2005

�00� 2004

$’000 $’000

BY TYPE

Capital Commitments

Infrastructure,plantandequipment1 10,�� 21,388

Total Capital Commitments 10,�� 21,388

Other Commitments

Operatingleases2 ��,1�� 503,957

OtherServices ��,�� 37,598

Total Other Commitments ��,��0 541,555

Commitments Receivable (11�,�10) (91,106)

Net Commitments by Type ��,�0� 471,837

BY MATURITY

Capital Commitments

Oneyearorless �,��1 16,629

Fromonetofiveyears �,0�� 4,759

Overfiveyears - -

Total Capital Commitments 10,�� 21,388

Operating Lease Commitments

Oneyearorless ��,��0 198,329

Fromonetofiveyears ��,1�� 263,440

Overfiveyears �0,�0� 42,188

Total Operating Lease Commitments ��,1�� 503,957

Other Services Commitments

Oneyearorless ��,�� 29,608

Fromonetofiveyears �,�1� 7,990

Overfiveyears - -

Total Other Servcies Commitments ��,�� 37,598

Commitments Receivable (11�,�10) (91,106)

Net Commitments by Maturity ��,�0� 471,837


AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFCOMMITMENTSasat30June2005

NB:CommitmentsareGSTinclusivewhererelevant.

1 Plant&equipmentcommitmentsareprimarilycontractsforinfrastructure,plantandequipment,intangiblesandassetsunderconstruction.

2 Operatingleaseandothercontractsincludedareeffectivelynon-cancellableandcomprise:

Nature of Lease General description of leasing or contract arrangement

Leaseforofficeaccommodation

Most,butnotall,leasepaymentsaresubjecttobiannualadjustmentstocurrentmarketvalues.SomeleasepaymentsaresubjecttoupwardmovementsinlinewiththeConsumerPriceIndex.Theinitialperiodsofofficeaccommodationleasesarestillcurrentandeachmayberenewedforupto5yearsattheagency’soption.

Other MostContractorsorContractsaresubjecttoannualCPIadjustments.ThisclassofCommitmentsincludes,amongothers,CEFlogisticalcosts,ITrelatedleasessuchasserversanddesktopcomputers,coastalsurveillancerelatedleasessuchasaircraftandvessels,vehicleandothertransportrelatedleases.

Theabovescheduleshouldbereadinconjunctionwiththeaccompanyingnotes.


Fina

ncia

l st

atem

ents

AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFCONTINGENCIESasat30June2005

Contingent liabilities

Guarantees Claims for

damages/costs Total

�00� �00� �00� �00� �00� �00�

$’000 $’000 $’000 $’000 $’000 $’000

Balancefrompreviousperiod - - 514 - �1� -

New - - 10 - 10 -

Re-measurement - - - 514 - 514

Liabilitiescrystallised - - - - - -

Obligationsexpired - - (500) - (�00) -

Total Contingent Liabilities - - 24 514 �� 514

Detailsofeachclassofcontingentliabilitiesandassets,includingthosenotincludedabovebecausetheycannotbequantifiedorareconsideredremote,aredisclosedinNote 1�: Contingent Liabilities and Assets



AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFADMINISTEREDITEMS

�00� 2004

Notes $’000 $’000

Revenues Administered on Behalf of Government

for the year ended 30 June 2005

Taxation revenue

Customsduty 19 �,��0,�0� 5,654,751

Othertaxes 19 ��,�01 449,486

Total taxation revenue �,0��,�0� 6,104,237

Non-taxation revenue

Interest 19 �1� 39

Othersourcesofnon-taxationrevenue 19 11,0�� 7,511

Total non-taxation revenue 11,��1 7,550

Total Revenues Administered on Behalf of Government �,0��,�� 6,111,787

Expenses Administered on Behalf of Government


Doubtfulandbaddebts20 �,�� 22,875

ACIScreditsappliedonduty 20 ��1,0�� 586,861

Otherexpenses 20 �� 248

Total Expenses Administered on Behalf of Government ��,�� 609,984

Thisscheduleshouldbereadinconjunctionwiththeaccompanyingnotes.


Fina

ncia

l st

atem

ents

AUSTRALIANCUSTOMSSERVICE–SCHEDULEOFADMINISTEREDITEMS(continued)

�00� 2004

Notes $’000 $’000

Assets Administered on Behalf of Government

as at 30 June 2005

Financial assets

Cash 21 �,��1 3,074

Receivables 21 ��,�� 71,321

Total financial assets �0,�� 74,395

Non-financial assets

Inventories 21 �� 163

Total non-financial assets �� 163

Total Assets Administered on Behalf of Government �0,�� 74,558

Liabilities Administered on Behalf of Government

as at 30 June 2005

Liabilities

Otherinterestbearingliabilities 22 �,�� 2,785

Payables 22 �,�� 4,454

SpecialAccounts 22 �,�1� 12,683

Total Liabilities Administered on Behalf of Government 1�,�� 19,922

Net Assets Administered on Behalf of Government ��,1�0 54,636

Current Assets �0,�� 74,558

Non-current Assets - -

Current Liabilities 1�,�� 19,922

Non-current Liabilities - -




�00� 2004

Notes $’000 $’000

Administered Cash Flows


OPERATING ACTIVITIES

Cash Received

Customsduty �,��,�1� 5,306,258

Othertaxes ��,�� 433,972

Interest �1� 39

ReturnofTouristRefundSchemeDrawings* �� 753

Othernon-taxrevenue 1,�� 2,282

Total Cash Received �,��,�� 5,743,304

Cash Used

Suppliers �� 248

Refundsofdutyandothertaxes �0�,�� 235,902

RefundsofGST(onimports),WET,LCT&SalesTax* �,�� 9,677

TouristRefundScheme* �0,�� 47,236

SpecialAccounts** �,�0� 561

Total Cash Used ��,�� 293,624

Net Cash from or (Used in) Operating Activities �,��,10� 5,449,680

Net Increase or (Decrease) in Cash Held �,��,10� 5,449,680

Cashatthebeginningofthereportingperiod �,0�� 2,697

CashfromOfficialPublicAccountfor:

Appropriations ��1,�� 280,111

RefundsofGST(onimports),WET,LCT&SalesTax* �,�� 9,677

TouristRefundScheme* �0,�� 47,236

SpecialAccounts ��,�� 27,066

ReclassificationofSpecialAccounts** (��) 12,095

��0,�� 376,185

CashtoOfficialPublicAccountfor:

AdministeredReceipts (�,��,��) (5,786,170)

ReturnofTouristRefundSchemeDrawings* (��) (753)

SpecialAccounts (��,��) (38,565)

(�,��,��) (5,825,488)

Cash at End of Reporting Period 21 �,��1 3,074

*TheAustralianTaxationOfficeistheresponsibleentityfortheseappropriationsandthesubsequentreturns.Asanewclassificationonthisschedule,figuresin2003–04(designatedinitalics)havebeenclassifiedforamoremeaningfulcomparison.

**CustomshasreclassifiedSpecialAccountsasAdministeredSpecialAccountswithasubsequentfirsttimeeffectonadministeredcashusedinthe2004–05financialyear.The2003–04figureshavebeenupdated(designatedinItalics)toprovideameaningfulcomparative.



Fina

ncia

l st

atem

ents


Administered Contingencies

as at 30 June 2005

Administered Contingent Assets

Guarantees Claims for

damages/costs Total

�00� 2004 �00� 2004 �00� 2004

$’000 $’000 $’000 $’000 $’000 $’000

Balancefrompreviousperiod - - 44,476 - ��,�� -

New - - 2 - � -

Re-measurement - - 4,556 44,476 �,�� 44,476

Liabilitiescrystallised - - - - - -

Obligationsexpired - - - - - -

Total Administered Contingent Assets - - ��,0�� 44,476 ��,0�� 44,476

UnquantifiableandremotebutmaterialcontingenciesaredisclosedinNote ��: Administered Contingent Liabilities and Assets

Statement of Activities Administered on Behalf of Government

ThemajoradministeredactivitiesoftheAustralianCustomsServicearedirectedtowardsachievingeffectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementsacrosstheborder,raisesrevenueandprovidestradestatistics.Themajoradministeredfinancialactivitiesadministeredarethecollectionofduty,thepassengermovementchargeandimportprocessingcharges.DetailsofplannedactivitiesfortheyearcanbefoundintheAgencyPortfolioBudgetandPortfolioAdditionalEstimatesStatementforthe2004–05financialyearwhichhavebeentabledintheParliament.



AUSTRALIANCUSTOMSSERVICE–NotestoandformingpartoftheFinancialStatementsfortheyearended30June2005

Note1: SummaryofSignificantAccountingPolicies

Note2: AdoptionofAASBEquivalentstoInternationalFinancialReportingStandardsfrom2005–2006

Note3: EventsOccurringafterReportingDate

Note4: OperatingRevenues

Note5: OperatingExpenses

Note6: BorrowingCostExpense

Note7: FinancialAssets

Note8: Non-FinancialAssets

Note9: InterestBearingLiabilities

Note10: Provisions

Note11: Payables

Note12: Equity

Note13: CashFlowReconciliation

Note14: ContingentLiabilitiesandAssets

Note15: ExecutiveRemuneration

Note16: RemunerationofAuditors

Note17: AverageStaffingLevels

Note18: FinancialInstruments

Note19: RevenuesAdministeredonBehalfofGovernment

Note20: ExpensesAdministeredonBehalfofGovernment

Note21: AssetsAdministeredonBehalfofGovernment

Note22: LiabilitiesAdministeredonBehalfofGovernment

Note23: AdministeredReconciliationTable

Note24: AdministeredContingentLiabilitiesandAssets

Note25: AdministeredFinancialInstruments

Note26: Appropriations

Note27: SpecificPaymentDisclosures

Note28: ReportingofOutcomes


Fina

ncia

l st

atem

ents

NotestoandformingpartoftheFinancialStatements

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of Australian Customs Service

TheobjectiveofAustralianCustomsService(Customs)istobeaworldleaderincustomsadministration,deliveringhighqualityservicetothecommunity,industryandcommerce.

CustomsisanagencywithintheAttorneyGeneral’sportfolio.

Customsisstructuredtomeetoneoutcome:Effectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementacrosstheborder,raisesrevenueandprovidestradestatistics.

Customsactivitiescontributingtowardthisoutcomeareclassifiedaseitherdepartmentaloradministered.Departmentalactivitiesinvolvetheuseofassets,liabilities,revenuesandexpensescontrolledorincurredbyCustomsinitsownright.AdministeredactivitiesinvolvethemanagementoroversightbyCustoms,onbehalfoftheGovernment,ofitemscontrolledorincurredbytheGovernment.

Departmentalactivitiesareidentifiedunderfiveoutputsbeing:Output1.Facilitationofthelegitimatemovementofgoodsacrosstheborder,whileinterceptingprohibitedandrestrictedimportsandexports,Output2.Facilitationofthelegitimatemovementofpeopleacrosstheborder,whileidentifyingillegalmovements,Output3.Civilmaritimesurveillanceandresponse,Output4.AdministrationofCustomsdutyandindirecttaxes,otherborder-relatedrevenuecollections,andimport/exportstatisticsandOutput5.Anti-dumpingandcountervailingadministration.

ThecontinuedexistenceofCustomsinitspresentform,andwithitspresentprograms,isdependentonGovernmentpolicyandoncontinuingappropriationsbyParliamentforitsadministrationandprograms.

1.� Basis of Accounting

Thefinancialstatementsarerequiredbysection49oftheFinancial Management and Accountability Act 1997andareageneralpurposefinancialreport.

Thestatementshavebeenpreparedinaccordancewith:

* FinanceMinister’sOrders(orFMOs,beingtheFinancialManagementandAccountabilityAct(FinancialStatementsforreportingperiodsendingonorafter30June2005));

* AustralianAccountingStandardsandAccountingInterpretationsissuedbytheAustralianAccountingStandardsBoard;

* ConsensusViewsoftheUrgentIssuesGroup.

TheStatementsofFinancialPerformanceandFinancialPositionhavebeenpreparedonanaccrualbasisandareinaccordancewithhistoricalcostconvention,exceptforcertainassets,which,asnoted,areatvaluation.Exceptwherestated,noallowanceismadefortheeffectofchangingpricesontheresultsorthefinancialposition.

AssetsandliabilitiesarerecognisedintheStatementofFinancialPositionwhenandonlywhenitisprobablethatfutureeconomicbenefitswillflowandtheamountsoftheassetsorliabilitiescanbereliablymeasured.However,assetsandliabilitiesarisingunderagreementsequallyproportionatelyunperformedarenotrecognisedunlessrequiredbyanAccountingStandard.LiabilitiesandassetsthatareunrecognisedarereportedintheScheduleofCommitmentsandtheScheduleofContingencies(otherthanunquantifiableorremotecontingencies,whicharereportedatNote14).

RevenuesandexpensesarerecognisedintheStatementofFinancialPerformancewhenandonlywhenthefloworconsumptionorlossofeconomicbenefitshasoccurredandcanbereliablymeasured.

Administeredrevenues,expenses,assets,liabilitiesandcashflowsreportedintheScheduleofAdministeredItemsandrelatednotesareaccountedforonthesamebasisandusingthesamepoliciesasforAgencyitems,exceptwhereotherwisestatedatNote1.16.



1.� Revenue

Revenues from Government

AmountsappropriatedforDepartmentaloutputsfortheyear(adjustedforanyformaladditionsandreductions)arerecognisedasrevenue,exceptforcertainamountswhichrelatetoactivitiesthatarereciprocalinnature,inwhichcaserevenueisrecognisedonlywhenithasbeenearned.

Appropriationsreceivablearerecognisedattheirnominalamounts.

Resources Received Free of Charge

Servicesreceivedfreeofchargearerecognisedasrevenuewhenandonlywhenafairvaluecanbereliablydeterminedandtheserviceswouldhavebeenpurchasediftheyhadnotbeendonated.Useofthoseresourcesisrecognisedasanexpense.

Defence’scommitmenttothecivilmaritimesurveillanceprogram(250RAAFP3COrionhoursand1,800FREMANTLEClassPatrolBoatdays)hasbeendeliveredthroughresponsetoCustomsspecifictaskingandmulti-taskedactivityassociatedwithOperationRELEXII.

Contributionsofassetsatnocostofacquisitionorfornominalconsiderationarerecognisedasrevenueattheirfairvaluewhentheassetqualifiesforrecognition,unlessreceivedfromanothergovernmentagencyasaconsequenceofarestructuringofadministrativearrangements(RefertoNote1.4).

Other Revenue

Revenuefromthesaleofgoodsisrecogniseduponthedeliveryofgoodstocustomers.

Revenuefromrenderingofservicesisrecognisedbyreferencetothestageofcompletionofcontractsorotheragreementstoprovideservices.Thestageofcompletionisdeterminedaccordingtotheproportionthatcostsincurredtodatebeartotheestimatedtotalcostsofthetransaction.

Receivablesforgoodsandservicesarerecognisedatthenominalamountsduelessanyprovisionforbadanddoubtfuldebts.Collectabilityofdebtsisreviewedatbalancedate.Provisionsaremadewhencollectabilityofthedebtisjudgedtobelessratherthanmorelikely.

Revenuefromdisposalofnon-currentassetsisrecognisedwhenthecontroloftheassethaspassedtothebuyer.

1.� Transaction with the Government as Owner

Equity injections

Amountsappropriatedwhicharedesignatedas‘equityinjections’forayear(lessanysavingsofferedupinPortfolioAdditionalEstimatesStatements)arerecogniseddirectlyinContributedEquityinthatyear.

Restructuring of Administrative Arrangements

NetassetsreceivedfromorrelinquishedtoanotherCommonwealthagencyorauthorityunderarestructuringofadministrativearrangementsareadjustedattheirbookvaluedirectlyagainstContributedEquity.

Other distributions to owners

TheFMOsrequirethatdistributionstoownersbedebitedtocontributedequityunlessinthenatureofadividend.


Fina

ncia

l st

atem

ents


1.� Employee Benefits

Liabilitiesforservicesrenderedbyemployeesarerecognisedatthereportingdatetotheextentthattheyhavenotbeensettled.

Liabilitiesforwagesandsalaries(includingnon-monetarybenefits)andannualleavearemeasuredattheirnominalamounts.Otheremployeebenefitsexpectedtobesettledwithin12monthsofthereportingdatearealsomeasuredattheirnominalamounts.

Thenominalamountiscalculatedwithregardtotheratesexpectedtobepaidonsettlementoftheliability.

Allotheremployeebenefitliabilitiesaremeasuredasthepresentvalueoftheestimatedfuturecashoutflowstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdate.

Leave

Theliabilityforemployeeentitlementsincludesprovisionforannualleaveandlongserviceleave.Noprovisionhasbeenmadeforsickleaveasallsickleaveisnon-vestingandtheaveragesickleavetakeninfutureyearsbyemployeesofCustomsisestimatedtobelessthantheannualentitlementforsickleave.

Theleaveliabilitiesarecalculatedonthebasisofemployees’remuneration,includingCustomsemployersuperannuationcontributionratestotheextentthattheleaveislikelytobetakenduringserviceratherthanpaidoutontermination.

Theliabilityforlongserviceleavehasbeendeterminedbyreferencetotheworkofanactuaryasat30June2003.Theestimateofthepresentvalueoftheliabilitytakesintoaccountattritionratesandpayincreasesthroughpromotionandinflation.

Separation and Redundancy

ProvisionismadeforseparationandredundancypaymentsincircumstanceswhereCustomshasformallyidentifiedpositionsasexcesstorequirementsandareliableestimateoftheamountofthepaymentscanbedetermined.Asatreportingdate,nosuchcircumstancesexist.

Superannuation

StaffofCustomsaremembersoftheCommonwealthSuperannuationSchemeandthePublicSectorSuperannuationScheme.TheliabilityfortheirsuperannuationbenefitsisrecognisedinthefinancialstatementsoftheAustralianGovernmentandissettledbytheAustralianGovernmentinduecourse.

CustomsmakesemployercontributionstotheAustralianGovernmentatratesdeterminedbyanactuarytobesufficienttomeetthecosttotheGovernmentofthesuperannuationentitlementsofCustom’semployees.

Theliabilityforsuperannuationrecognisedasat30June2005representsoutstandingcontributionsforthefinalfortnightoftheyear.

1.� Leases

Adistinctionismadebetweenfinanceleasesandoperatingleases.Financeleaseseffectivelytransferfromthelessortothelesseesubstantiallyalltherisksandbenefitsincidentaltoownershipofleasednon-currentassets.Inoperatingleases,thelessoreffectivelyretainssubstantiallyallsuchrisksandbenefits.



Whereanon-currentassetisacquiredbymeansofafinancelease,theassetiscapitalisedatthepresentvalueofminimumleasepaymentsatthebeginningoftheleaseandaliabilityrecognisedatthesametimeforthesameamount.Thediscountrateusedistheinterestrateimplicitinthelease.Leasedassetsareamortisedovertheperiodofthelease.Leasepaymentsareallocatedbetweentheprincipalcomponentandtheinterestexpense.

Operatingleasepaymentsareexpensedonabasis,whichisrepresentativeofthepatternofbenefitsderivedfromtheleasedassets.Thenetpresentvalueoffuturenetoutlaysinrespectofsurplusspaceundernon-cancellableleaseagreementsisexpensedintheperiodinwhichthespacebecomessurplus.

Leaseincentivestakingtheformof‘free’leaseholdimprovementsandrentholidaysarerecognisedasliabilities.Theseliabilitiesarereducedbyallocatingleasepaymentsbetweenrentalexpenseandreductionoftheliability.

1.� Borrowing Costs

Allborrowingcostsareexpensedasincurredexcepttotheextentthattheyaredirectlyattributabletoqualifyingassets,inwhichcasetheyarecapitalised.Theamountcapitalisedinareportingperioddoesnotexceedtheamountofcostsincurredinthatperiod.

TheborrowingcostrecognisedbyCustomsrelatestoleasedvesselsandwasborrowedin1998.

1.� Cash

Cashmeansnotesandcoinsheldandanydepositsheldatcallwithabankorfinancialinstitution.Cashisrecognisedatitsnominalamount.

1.� Other Financial Instruments

Governmentloansarecarriedatthebalanceyettoberepaid.Interestisexpensedasitaccruesunlessitisdirectlyattributabletoaqualifyingasset.

Trade Creditors

Tradecreditorsandaccrualsarerecognisedattheirnominalamounts,beingtheamountsatwhichtheliabilitieswillbesettled.Liabilitiesarerecognisedtotheextentthatthegoodsandserviceshavebeenreceived(andirrespectiveofhavingbeeninvoiced).

Contingent Liabilities and Contingent Assets

Contingentliabilities(assets)arenotrecognisedintheStatementofFinancialPositionbutarediscussedintherelevantschedulesandnotes.Theymayarisefromuncertaintyastotheexistenceofaliability(asset),orrepresentanexistingliability(asset)inrespectofwhichsettlementisnotprobableortheamountcannotbereliablymeasured.Remotecontingenciesarepartofthisdisclosure.Wheresettlementbecomesprobable,aliability(asset)isrecognised.Aliability(asset)isrecognisedwhenitsexistenceisconfirmedbyafutureevent,settlementbecomesprobableandreliablemeasurementbecomespossible.

1.10 Acquisition of Assets

Assetsarerecordedatcostonacquisitionexceptasstatedbelow.Thecostofacquisitionincludesthefairvalueofassetstransferredinexchangeandliabilitiesundertaken.

Assetsacquiredatnocost,orfornominalconsideration,areinitiallyrecognisedasassetsandrevenuesattheirfairvalueatthedateofacquisition,unlessacquiredasaconsequenceofrestructuringadministrativearrangements.Inthelattercase,assetsareinitiallyrecognisedascontributionsbyownersattheamountsatwhichtheywererecognisedinthetransferoragency’saccountsimmediatelypriortotherestructuring.


Fina

ncia

l st

atem

ents


1.11 Property (Land, Buildings and Infrastructure), Plant and Equipment

Asset Recognition Threshold

Purchasesofproperty,plantandequipmentarerecognisedinitiallyatcostintheStatementofFinancialPosition,exceptforpurchasescostinglessthanthethresholdspecifiedbelow,whichareexpensedintheyearofacquisition(otherthanwheretheyformpartofagroupofsimilaritemswhicharesignificantintotal).

�00� 2004

Buildingsandleaseholdimprovements �0,000 50,000

Infrastructure,plantandequipment �,000 3,000

Revaluations

Basis

Land,buildings,plantandequipmentarecarriedatvaluation,beingrevaluedprogressivelywithsufficientfrequencysuchthatthecarryingamountofeachassetclassisnotmateriallydifferent,atreportingdate,fromitsfairvalue.

Fairvaluesforeachclassofassetaredeterminedasshownbelow.

Asset class Fair value measured at:

Land Marketsellingprice

Buildings Marketsellingprice

Leaseholdimprovements Depreciatedreplacementcost

Plant&equipment Marketsellingprice

Frequency

Land,buildings,andleaseholdimprovementsassetsaresubjecttoaformalvaluationeverythreeyears.Plantandequipmentassetsarereviewedannually.

Conduct

Allformalvaluationsareconductedbyanindependentqualifiedvaluer.

Depreciation

Depreciableproperty,plantandequipmentassetsarewritten-offtotheirestimatedresidualvaluesovertheirestimatedusefullivestoCustomsusing,inallcases,thestraightlinemethodofdepreciation.Leaseholdimprovementsareamortisedonastraight-linebasisoverthelesseroftheestimatedusefullifeoftheimprovementsortheunexpiredperiodofthelease.

Depreciation/amortisationrates(usefullives)andmethodsarereviewedateachbalancedateandnecessaryadjustmentsarerecognisedinthecurrent,orcurrentandfuturereportingperiods,asappropriate.Residualvaluesarere-estimatedforachangeinpriceonlywhenassetsarerevalued.



Depreciationandamortisationratesapplyingtoeachclassofdepreciableassetarebasedonthefollowingusefullives(*):

�00� �00�

Buildingsonfreeholdland �0 years 40years

Leaseholdimprovements Varies (**) Varies(**)

Plantandequipment � to � years 3to7years

Intangibles � to 10 years 3to5years

Customsvessels(leasedandother) 1� to 1� years 12to15years

Operationequipment � years 5years

X-Rayequipment � years 7years

Historicalandantiqueitems �0 years 50years

(*) Theselivesareaguideonly.

Insomecircumstancestheyearsmaybemoreorlessduetofactorssuchasobsolescence,technological,legal,orothermatters.

(**) Lesserofestimatedusefullifeorleasedterm.

TheaggregateamountofdepreciationallocatedforeachclassofassetduringthereportingperiodisdisclosedinNote5C.

1.1� Impairment of Non-Current Assets

Non-currentassetscarriedatuptodatefairvalueatthereportingdatearenotsubjecttoimpairmenttesting.

Thenon-currentassetscarriedatcost,whicharenotheldtogeneratenetcashinflows,havebeenassessedforindicationsofimpairment.Whereindicationsofimpairmentexist,theassetiswrittendowntothehigherofitsnetsellingpriceand,iftheentitywouldreplacetheasset’sservicepotential,itsdepreciatedreplacementcost.Nonewerefoundtobeimpaired.

1.1� Intangibles

Customsintangiblescompriseinternallydevelopedsoftwareforinternaluseandpurchasedsoftware.Theseassetsarecarriedatcost.PurchasesofintangiblesarerecognisedinitiallyatcostintheStatementofFinancialPosition,exceptforpurchasescostinglessthanthethresholdspecifiedbelow,whichareexpensedintheyearofacquisition(otherthanwhentheyformpartofagroupofsimilaritemswhicharesignificantintotal).

Softwareisamortisedonastraight-linebasisoveritsanticipatedusefullifeusingthethresholdspecifiedbelow.

�00� �00�

Internallydevelopedsoftware 100,000 100,000

Purchasedsoftware �,000 3,000

1.1� Inventories

Inventoriesofseizedandsurrenderedgoodsheldforsalearebroughttoaccountatnetrealisablevalue.Inventoriesnotheldforresalearevaluedatcost,unlesstheyarenolongerrequired,inwhichcasetheyarevaluedatnetrealisablevalue.


Fina

ncia

l st

atem

ents


1.1� Taxation

Customsisexemptfromallformsoftaxationexceptfringebenefitstaxandthegoodsandservicestax(GST).

Revenues,expensesandassetsarerecognisednetofGST:

* exceptwheretheamountofGSTincurredisnotrecoverablefromtheAustralianTaxationOffice;and

* exceptforreceivablesandpayables.

1.1� Reporting of Administered Activities

Administeredrevenues,expenses,assets,liabilitiesandcashflowsaredisclosedintheScheduleofAdministeredItemsandrelatedNotes.

Exceptwhereotherwisestatedbelow,administereditemsareaccountedforonthesamebasisandusingthesamepoliciesasforAgencyitems,includingtheapplicationofAccountingStandards,AccountingInterpretationsandUIGAbstracts.

Administered Cash Transfers to and from Official Public Account

RevenuecollectedbyCustomsforusebythegovernmentratherthantheAgencyisAdministeredRevenue.CollectionsaretransferredtotheOfficialPublicAccount(OPA)maintainedbytheDepartmentofFinance.Conversely,cashisdrawnfromtheOPAtomakepaymentsunderParliamentaryappropriationonbehalfofGovernment.ThesetransferstoandfromtheOPAareadjustmentstotheadministeredcashheldbytheAgencyonbehalfoftheGovernmentandreportedassuchintheStatementofCashFlowsintheScheduleofAdministeredItemsandintheAdministeredReconciliationTableinNote23.ThustheScheduleofAdministeredItemslargelyreflectstheGovernment’stransactions,throughtheAgency,withpartiesoutsidetheGovernment.

Revenue

Alladministeredrevenuesarerevenuesrelatingtothecore-operatingactivitiesperformedbyCustomsonbehalfoftheCommonwealth.

FeesarechargedtoindividualsleavingAustralia,andareintendedtocoverthecostsofgovernmentservicesprovidedatinternationalairportsandseaports.Administeredfeerevenueisrecognisedintheperiodthechargeisincurred.Itisrecognisedatitsnominalamountduelessanyprovisionforbadordoubtfuldebts.Collectabilityofdebtsisreviewedatbalancedate.Provisionsaremadewhencollectionofthedebtisjudgedtobelessratherthanmorelikely.

DutiesaredebtsoftheCrownaccordingtosection153oftheCustoms Act 1901andarepayablebytheownerofthegoodsandrecoverableatanytimeinanycourtofcompetentjurisdiction.Revenuerelatedtoimportsisrecognizedinaccordancewiths132AAoftheCustoms Act 1901.

Customsundertakescheckstoverifycomplianceinanenvironmentthatislargelyself-regulated,byinterveningintransactionsproportionatelytotheperceivedlevelsofriskinagivensituation.Recentsurveysindicatethatriskstotheborderandvaryingdegreesofnon-compliancebyclientsremainanissueforCustomstodealwithinmanagingthatenvironment.

CustomsComplianceAssuranceStrategy(CCAS)isanintelligencedrivenprogramdevelopedbyCustomstodeliveraninternationaltradingenvironmentthatistypifiedbyhighlevelsofself-regulatedcompliancewithgovernmentrequirements.



Specifically,CCASaimstogiveGovernmentandthecommunityconfidencethat:

* ReportingofallcargoandvesselsenteringorleavingAustraliaisaccurateandtimelyallowingCustomstofulfilitsregulatoryrole.

* Licenceandpermitrequirements,prohibitionsandrestrictionsinrelationtoimportedandexportedgoodsarecompliedwith.

* Thecorrectamountofrevenueispaidoridentifiedforcollectionorconsideration.

* Communityprotectionprogramsrelatedtoimportedandexportedgoodsareeffectivelyimplemented.

* AccurateandreliabledataontradestatisticsisprovidedtoCustoms

CCAScomprisesthreelevelsofactivitydeliveredviaintegratedandnationallymanagedandplannedprogramsutilisingbusinessprocessesthatallowCustomstotestboththegeneralityandspecificsoftheenvironment.Thesecanbroadlyberegardedasmonitoring,responseandenforcementactivities.

Other Revenue

Administeredfinesarerecognisedintheperiodinwhichthebreachoccurs.


Fina

ncia

l st

atem

ents


Note �: Adoption of Australian Equivalents to International Financial Reporting Standards from �00�–�00�

TheAustralianAccountingStandardsBoardhasissuedreplacementAustralianAccountingStandardstoapplyfrom2005-06.ThenewstandardsaretheAustralianEquivalentstoInternationalFinancialReportingStandards(AEIFRS).TheInternationalFinancialReportingStandardsareissuedbytheInternationalAccountingStandardsBoard.Thenewstandardscannotbeadoptedearly.Thestandardsbeingreplacedaretobewithdrawnwitheffectfrom2005-06,butcontinuetoapplyinthemeantime,includingreportingperiodsendingon30June2005.

ThepurposeofissuingAEIFRSistoenableAustralianreportingentitiesreportingundertheCorporationsAct2001tobeabletomorereadilyaccessoverseascapitalmarketsbypreparingtheirfinancialreportsaccordingtoaccountingstandardsmorewidelyusedoverseas.

For-profitentitiescomplyingwithAEIFRSwillbeabletomakeanexplicitandunreservedstatementofcompliancewithInternationalFinancialReportingStandards(IFRS)aswellasastatementthatthefinancialreporthasbeenpreparedinaccordancewithAustralianAccountingStandards.

AEIFRScontaincertainadditionalprovisionsthatwillapplytonot-for-profitentities,includingAustralianGovernmentagencies.SomeoftheseprovisionsareinconflictwithIFRS,andthereforeCustomswillonlybeabletoassertthatthefinancialreporthasbeenpreparedinaccordancewithAustralianAccountingStandards.

AAS29FinancialReportingbyGovernmentDepartmentswillcontinuetoapplyunderAEIFRS.

AccountingStandardAASB1047DisclosingtheImpactsofAdoptingAustralianEquivalentstoInternationalFinancialReportingStandardsrequiresthatthefinancialstatementsfor2004–05disclose:

* anexplanationofhowthetransitiontoAEIFRSisbeingmanaged;

* narrativeexplanationsofthekeypolicydifferencesarisingfromtheadoptionofAEIFRS;

* anyknownorreliablyestimableinformationabouttheimpactsonthefinancialreporthaditbeenpreparedusingAEIFRS;and

* iftheimpactsoftheabovearenotknownorreliablyestimable,astatementtothateffect.

Whereanentityisnotabletomakeareliableestimate,orwherequantitativeinformationisnotknown,theentityshouldupdatethenarrativedisclosuresofthekeydifferencesinaccountingpoliciesthatareexpectedtoarisefromtheadoptionofAEIFRS.

ThepurposeofthisNoteistomakethesedisclosures.

Management of the transition to AEIFRS

CustomshastakenthefollowingstepsforthepreparationtowardstheimplementationofAASBEquivalents:

* TheAgency’sAuditCommitteeistaskedwithoversightofthetransitiontoandimplementationoftheAASBEquivalentstoIFRSs.TheChiefFinanceOfficerisformallyresponsiblefortheprojectandreportsregularlytotheAuditCommitteeonprogressagainstCustomsIFRSimplementationplan.Theplanrequiresthefollowingkeystepstobeundertakenandsetsdeadlinesfortheirachievement:

* AllmajoraccountingpolicydifferencesbetweencurrentAASBstandardsandAEIFRSwereidentifiedby30June2004.

* SystemchangesnecessarytobeabletoreportundertheAEIFRS,includingthosenecessarytocapturedataunderbothsetsofrulesfor2004-05werecompletedon18August2004.Thisincludedthetestingandimplementationofthosechanges.

* Atransitionalbalancesheetasat1July2004,underAEIFRSwascompletedandpresentedtotheAuditCommitteeon15March2005.



* AnAEIFRScompliantbalancesheetasat30June2005wasalsopreparedduringthepreparationofthe2004–05statutoryfinancialreports.

* The2004–05BalanceSheetunderAEIFRSwillbereportedtotheDepartmentofFinanceandAdministrationinlinewiththeirreportingdeadlines.

* Theplanalsoaddressestheriskstosuccessfulachievementoftheaboveobjectivesandincludesstrategiestokeepimplementationontracktomeetdeadlines.

Major Changes in accounting policy

CustomsbelievesthatthefirstfinancialreportpreparedunderAEIFRSi.e.at30June2006,willbepreparedonthebasisthatCustomswillbeafirsttimeadopterunderAASB1First-timeAdoptionofAustralianEquivalentstoInternationalFinancialReportingStandards.ChangesinaccountingpoliciesunderAEIFRSareappliedretrospectivelyi.e.asifthenewpolicyhadalwaysappliedexceptinrelationtotheexemptionsavailableandprohibitionsunderAASB1.ThismeansthatanAEIFRScompliantbalancesheethastobepreparedasat1July2004.Thiswillenablethe2005-06financialstatementstoreportcomparativesunderAEIFRS.

AfirsttimeadopterofAEIFRSmayelecttouseexemptionsunderparagraphs13to25E.Whendevelopingtheaccountingpoliciesapplicabletothepreparationofthe1Julyopeningbalancesheet,noexemptionswereappliedbyCustoms.

Changestomajoraccountingpoliciesarediscussedinthefollowingparagraphs.

Management’sreviewofthequantitativeimpactsofAEIFRSrepresentsthebestestimatesoftheimpactsofthechangesasatreportingdate.TheactualeffectsoftheimpactsofAEIFRSmaydifferfromtheseestimatesdueto:

* continuingreviewoftheimpactsofAEIFRSonagencyoperations;

* potentialamendmentstotheAEIFRSandAEIFRSInterpretations;and

* emerginginterpretationastotheacceptedpracticeintheapplicationofAEIFRSandtheAEIFRSInterpretations.

Property Plant and Equipment

Itisexpectedthatthe2005–06FinanceMinister’sOrders(FMOs)willcontinuetorequirepropertyplantandequipmentassetstobevaluedatfairvaluein2005–06.

Borrowing Costs

ItisexpectedthattheFMOsfor2005–06willelecttoexpenseallborrowingcostsunderAEIFRS.Customsborrowingcostsarecurrentlyexpensed.Accordingly,therearenoadjustmentsrequiredduetothetransitiontoAEIFRS.Theimpactofbringingtoaccountthedecommissioning,restorationandmake-goodprovisionbelowmayhaveanimpactonborrowingcosts,howeverthisimpactisstillbeingassessed.

Intangible Assets

Customsintangiblescompriseinternallydevelopedsoftwareforinternaluseandpurchasedsoftware.Theseassetsarecarriedatcost.PurchasesofintangiblesarerecognisedinitiallyatcostintheBalanceSheet,exceptforpurchasescostinglessthanthethresholdspecifiedbelow,whichareexpensedintheyearofacquisition(otherthanwhentheyformpartofagroupofsimilaritemswhicharesignificantintotal).

Customsexistingcapitalisationpolicyrecognisesresearchexpenditureandtrainingasanexpenseasitisincurred.Costsassociatedwiththedevelopmentoftheprojectssuchasdesignandtestingarerecognisedasintangibleassetswhenitisprobablethattheprojectwillbeasuccess,consideringitscommercialandtechnologicalfeasibility,andcostscanbemeasuredreliably.Softwareisamortisedonastraight-linebasisoveritsanticipatedusefullife.


Fina

ncia

l st

atem

ents


Impairment of Intangibles and Property, Plant and Equipment

UnderAEIFRStheseassetswillbesubjecttoassessmentforimpairmentand,ifthereareindicationsofimpairment,anassessmentofthedegreeofimpairment.(Impairmentmeasurementmustalsobecompleted,irrespectiveofanyindicationsofimpairment,forintangibleassetsnotyetavailableforuse).

Theimpairmenttestisthatthecarryingamountofanassetmustnotexceedthegreaterof(a)itsfairvaluelesscoststoselland(b)itsvalueinuse.‘Valueinuse’isthenetpresentvalueofnetcashinflowsforcashgeneratingunitsoftheAgencyanddepreciatedreplacementcostforotherassetswhichwouldbereplacedifCustomsweredeprivedofthem.

AnimpairmentassessmentofCustom’sassetsindicatedthatnoadjustmentswillberequired.

Decommissioning, Restoration and Make-good

Whenassessingtheaccommodationleasesforthepreparationoftheopeningbalancesheet,Customshaddeterminedthatanadjustmentwouldberequiredtoaccountforthemake-goodatyearend.Asatreportingdate,Customshasmadeaninitialassessmentofanobligationfordecommissioning,restorationormake-goodfortheperiodended30June2005.Althoughtheestimatedimpacthasinitiallybeenassessedasa$1.7mdecreaseagainstretainedearnings,thisamountisstillsubjecttofurtherreviewandmaydiffertothefinalamountexpectedtobereportedtotheDepartmentofFinanceandAdministrationinlinewiththeirreportingdeadlines.

Inventories

Inventoriesofseizedandsurrenderedgoodsarebroughttoaccountatnetrealisablevalue.ThenewAustralianEquivalentstandardwillrequireinventoryheldfordistributionfornoconsiderationoratanominalamounttobecarriedatthelowerofcostorcurrentreplacementcost.

Anassessmentwasmadeanditwasfoundthatinallinstancesthecurrentreplacementcostofinventorywasequalorgreaterthantheoriginalcost.Thereforenoadjustmentisrequired.

Employee Benefits

Theprovisionforlongserviceleaveismeasuredatthepresentvalueofestimatedfuturecashoutflowsusingmarketyieldsasatthereportingdateonnationalgovernmentbonds.

The2003-04FinancialReportnotedthattheAEIFRSstandardsmayrequirethemarketyieldoncorporatebondstobeused.TheAASBhasdecidedthatadeepmarketinhighqualitycorporatebondsdoesnotexistandthereforenationalgovernmentbondswillbereferenced.

AEIFRSrequirethatannualleavethatisnotexpectedtobetakenwithin12monthsofbalancedateistobediscounted.Consequently,therewillbeanadjustmentforthenon-currentannualleave.Asatreportingdate,Customshasmadeaninitialassessmentofanobligationforemployeebenefitsfortheperiodended30June2005.Althoughtheestimatedimpacthasinitiallybeenassessedasa$0.1mincreaseagainstretainedearnings,thisamountisstillsubjecttofurtherreviewandmaydiffertothefinalamountexpectedtobereportedtotheDepartmentofFinanceandAdministrationinlinewiththeirreportingdeadlines.

Administered Items

AssessmentoftheadministeredassetsandliabilitiesofCustomsindicatethattherearenoadjustmentsduetothetransitiontoAEIFRS.



Financial Instruments

AEIFRSincludesanoptionforentitiesnottorestatecomparativeinformationinrespectoffinancialinstrumentsinthefirstAEIFRSreport.ItisexpectedthattheFinanceMinistersOrderswillrequireentitiestousethisoption.Therefore,theamountforfinancialinstrumentspresentedintheCustoms2004–05primaryfinancialstatementarenotexpectedtochangeasaresultoftheadoptionofAEIFRS

CustomswillberequiredbyAEIFRStoreviewthecarryingamountsoffinancialinstrumentsat1July2005toensuretheyalignwiththeaccountingpoliciesrequiredbyAEIFRS.ItisexpectedthatthecarryingamountsoffinancialinstrumentsheldbyCustomswillnotmateriallychangeasaresultofthisprocess.

Reconciliation of Impacts – AGAAP to AEIFRS

�0 June �00�* 30June2004

$’000 $’000

Reconciliation of Departmental Equity

TotalDepartmentalEquityunderAGAAP ��,�0� 198,112

Adjustmentstoaccumulatedresults (1,��) (12)

��,0�0 198,100

Reconciliation of Departmental Accumulated Results

TotalDepartmentalAccumulatedResultsunderAGAAP �0,��0 23,189

Adjustments:

Leaseholdimprovementsasset - 6,132

Leaseholdimprovementsdeferredexpense (1,��) (2,625)

Deferredexpense(makegoodprovision) - (3,507)

Annualleavecurrentandnoncurrentsplit 111 (12)

Total Accumulated Results under AEIFRS ��,�� 23,177

Reconciliation of Departmental Reserves

TotalDepartmentalReservesunderAGAAP 1�,��0 15,398

Total Departmental Reserves under AEIFRS 1�,��0 15,398

Reconciliation of Departmental Contributed Equity

TotalDepartmentalContributedEquityunderAGAAP �00,�0� 159,525

Total Contributed Equity under AEIFRS �00,�0� 159,525

*30June2005totalrepresentstheaccumulatedimpactsofAEIFRSfromthedateoftransition.


Fina

ncia

l st

atem

ents


Note �: Events Occurring After Reporting Date

Noeventsoccurredafterthebalancedate.



�00� 2004

$’000 $’000

Note �: Operating Revenues

Note 4A: Revenues from Government

Appropriationsforoutputs ��,�� 591,554

Note 4B: Goods and Services

Goods �� 238

Services ��,�� 77,113

Total sales of goods and services ��,1�� 77,351

Provisionofgoodsto:

Relatedentities 1 -

Externalentities �� 238

Total sales of goods �� 238

Renderingofservicesto:

Relatedentities ��,��0 72,317

Externalentities �,0�� 4,796

Total rendering of services ��,�� 77,113

Costofsalesofgoods �� 238

Note 4C: Interest Revenue

Interest 1 -

Note 4D: Net Gains from Sale of Assets

Landandbuildings

Proceedsfromdisposal �� 250

Netbookvalueofassetsdisposed (��1) (261)

Net gain/(loss) from disposal of land and buildings 1�1 (11)

Infrastructure,plantandequipment

Proceedsfromdisposal �� 14

Netbookvalueofassetsdisposed (�1) (53)

Net gain/(loss) from disposal of infrastructure, plant and equipment � (39)

Totalproceedsfromdisposals �� 264

Totalvalueofassetsdisposed (��) (314)

Total net gain/(loss) from disposal of assets 1�� (50)

Note 4E: Other Revenues

Resourcesreceivedfreeofcharge(Government) 1��,�1� 130,010

Resourcesreceivedfreeofcharge(otherthanGovernment) �,�1� 7,537

Othernontaxrevenue 1�� 25

Total other revenues 1��,�� 137,572

Note:DuetospecificdisclosurerequirementsregardingResourcesReceivedFreeofCharge(RRFOC)fromrelatedentities,RRFOCreceivedfromDefencehasbeenclassifiedas‘Otherrevenues’.Previously,thiswasclassifiedunder‘RevenuesfromGovernment’.Figuresin2003–04(designatedinItalics)havebeenre-classifiedforamoremeaningfulcomparisonwithfiguresin2004–05.


Fina

ncia

l st

atem

ents


�00� 2004

$’000 $’000

Note �: Operating Expenses

Note 5A: Employee Expenses

Salaries&Wages �0�,��1 195,776

Superannuation ��,0�1 44,717

Leaveandotherentitlements ��,�� 70,191

Separationandredundancies �� 409

Otheremployeeexpenses �,�1� 6,148

Total employee benefits expense ��,�� 317,241

Workerscompensationpremiums �,�� 3,283

Total employee expenses ��,�� 320,524

Note 5B: Suppliers Expenses

Goodsfromrelatedentities 11� 469

Goodsfromexternalentities ��,0�� 17,548

Servicesfromrelatedentities 1�,0�� 140,102

Servicesfromexternalentities �00,�� 154,483

Operatingleaserentals1 1��,�� 134,504

Total supplier expenses ��,�� 447,106

1Thesecompriseminimumleasepaymentsonly.

Note 5C: Depreciation and Amortisation

(i) Depreciation

Otherinfrastructure,plantandequipment 11,�� 12,314

Buildings&leaseholdimprovements �,�� 7,153

Total Depreciation 1�,�� 19,467

(ii) Amortisation

Leasedassets �,��0 4,224

Intangibles–computersoftware �,�� 4,507

Total Amortisation 1�,�� 8,731

Total depreciation and amortisation ��,��0 28,198

Theaggregateamountsofdepreciationoramortisationexpensedduringthereportingperiodforeachclassofdepreciableassetsareasfollows:

Buildings �� 565

Leaseholdimprovements �,�1� 6,588

Plantandequipment 1�,�� 16,538

Software �,�� 4,507

Total depreciation and amortisation ��,��0 28,198

Nodepreciationoramortisationwasallocatedtothecarryingamountsofotherassets.



�00� 2004

$’000 $’000

Note5D:WriteDownofAssets

Non-financial assets

Otherintangibles–write-off 0 2,683

Land,buildingsandleaseholdimprovements–write-offs �� 152

Plantandequipment–write-offs �� 84

Total write-down of assets �� 2,919

Note5E:OtherExpenses

Otherexpenses �� 231

Provisionfordoubtfuldebts �� 757

Total other expenses ��1 988

Note �: Borrowing Costs ExpenseLeases �� 557


Fina

ncia

l st

atem

ents


�00� 2004

$’000 $’000

Note �: Financial AssetsNote7A:Cash

Departmental(otherthanspecialaccounts) 1�,0�� 24,097

Note7B:Receivables

Goodsandservices �,�� 4,876

Less:Provisionfordoubtfuldebts (1,��) (932)

�,�01 3,944

GSTreceivablefromtheAustralianTaxationOffice �,�� 7,513

Appropriationsreceivable

–foradditionaloutputs&equity ��,�� 10,530

–undrawns31 �,��1 1,189

Total receivables (net) ��,0�1 23,176

Allreceivables(net)arecurrentassets. ��,0�1 23,176

AppropriationsreceivableundrawnareappropriationscontrolledbyCustomsbutheldintheOfficialPublicAccountundertheGovernment’sjust-in-timedrawdownarrangements.

Receivables(gross)areagedasfollows:

Current ��,�� 23,103

Overdueby:

Lessthan30days 10� 47

30to60days �� 16

61to90days �� 10

Morethan90days 1,�� 932

1,�0� 1,005

Total receivables (gross) ��,�� 24,108

Theprovisionfordoubtfuldebtsisagedasfollows:

Current - -

Overdueby:

Morethan90days 1,�� 932

Total provision for doubtful debts 1,�� 932



�00� 2004

$’000 $’000

Note �: Non-Financial Assets

Note8A:LandandBuildings

Freehold Land

–atfairvalue �� 52

–at2003–04valuation(fairvalue) �,�� 4,613

Total freehold land �,�� 4,665

Buildings on freehold land –atfairvalue �� 623

–accumulateddepreciation (��) (8)

�1� 615

–at2003–04valuation(fairvalue) �,�� 10,348

–accumulateddepreciation (��) (556)

�,�� 9,792

Total buildings on freehold land �,�� 10,407

Leasehold improvements –atfairvalue 1�,��0 1,056

–accumulateddepreciation (1,��) (12)

1�,��1 1,044

–at2003–04valuation(fairvalue) 1�,0�� 13,058

–accumulateddepreciation (�,��) (6,615)

�,�� 6,443

–underconstructionatCost 1�,�0� 18,322

Total leasehold improvements ��,��1 25,809

Total Land and Buildings (non-current) ��,��0 40,881

Note8B:Infrastructure,PlantandEquipment

Plant and equipment

–atfairvalue �1,�� 14,068

–accumulateddepreciation (�,��) (1,029)

1�,�0� 13,039

–at2003–04valuation(fairvalue) �0,01� 79,870

–accumulateddepreciation (��,��) (16,770)

�0,��1 63,100

–underconstructionatcost �,�� 5,553

Total Infrastructure, Plant and Equipment (non-current) �0,�� 81,692


Fina

ncia

l st

atem

ents


Note8C:AnalysisofProperty,PlantandEquipment

TABLE A – Reconciliation of the opening and closing balances of property, plant and equipment.

Item Land Buildings on

Freehold Land

Buildings –

Leasehold Improvem’t

Buildings – Total

Land and Buildings

Total

Other IP&E

$’000 $’000 $’000 $’000 $’000

Asat1July2004

Grossbookvalue 4,665 10,972 32,436 43,408 48,073 99,491

Accumulateddepreciation/amortisation - (564) (6,627) (7,191) (7,191) (17,799)

OpeningNetBookValue 4,665 10,408 25,809 36,217 40,882 81,692

Additions:

bypurchase - 326 15,034 15,360 15,360 5,362

byfinancelease - - - - - -

fromacquisitionofentitiesoroperations - - - - - -

Netrevaluationincrement/(decrement) 20 104 (93) 11 31 -

Reclassifications - - - - - -

Depreciation/amortisationexpense - (543) (4,716) (5,259) (5,259) (16,255)

Recoverableamountwrite-downs (100) (288) (205) (493) (593) (82)

Othermovements - 18 (8) 10 10 (38)

Disposals:

Fromdisposalofentitiesoroperations - - - - - -

Otherdisposals (200) (371) - (371) (571) (21)

As at �0 June �00�

Grossbookvalue 4,385 10,632 46,266 56,898 61,283 104,130


Closing Net Book Value �,�� ,�� ,��1 ��,�� ,��0 �0,��



TABLE B — Assets at valuation.


Freehold land

Buildings –

Leasehold Improvem’t

Buildings – Total

Land & Buildings

–Total

Other IP&E

$’000 $’000 $’000 $’000 $’000 $’000


Grossvalue 4,333 9,683 12,089 21,772 26,105 80,015

Accumulateddepreciation/amortisation (945) (8,466) (9,411) (9,411) (29,724)

Closing Net book value �,�� ,�� ,�� 1�,��1 1�,�� 0,��1

Asat30June2004

Grossvalue 4,613 10,348 13,058 23,406 28,019 79,870


Closing Net book value 4,613 9,792 6,443 16,235 20,848 63,100

TABLE C – Property, Plant and Equipment, and Intangibles held under Finance Lease.


Freehold land

Buildings - Leasehold Improvem’t

Buildings - Total

Land & Buildings - Total

Other IP&E

$’000 $’000 $’000 $’000 $’000 $’000


Grossvalue - - - - - 27,750

Accumulateddepreciation/amortisation - - - - - (8,484)

Closing Net book value - - - - - 1�,��

Asat30June2004

Grossvalue - - - - - 27,750

Accumulateddepreciation/amortisation - - - - - (4,224)

Closing Net book value - - - - - 23,526

TABLE D – Property, Plant and Equipment, and Intangibles under Construction.

Item Buildings on

Freehold land

Buildings - Leasehold Improvem’t

Buildings - Total

Other IP&E

$’000 $’000 $’000 $’000

As at �0 June �00� - 18,707 18,707 2,559

Grossvalueat30June2004 - 18,322 18,322 5,553


Fina

ncia

l st

atem

ents


�00� 2004

$’000 $’000

Note8D:Intangibles

Computersoftware:

Internallydeveloped–inprogress(non-current) 11�,�1� 158,008

11�,�1� 158,008

Internallydeveloped–inuse(non-current) 110,��0 22,675

Accumulatedamortisation (��,1��) (18,014)

��,1�� 4,661

Externallyacquired–atcost(non-current) 1,�1� 1,005

Accumulatedamortisation (��) (518)

�� 487

Total intangibles 1��,��1 163,156

TABLE A – Reconciliation of the opening and closing balances of intangibles

Item Computer Software $’000

Asat1July2004

Grossbookvalue 181,688

Accumulateddepreciation/amortisation (18,532)

Netbookvalue 163,156

Additions:

Bypurchase 42,731

Depreciation/amortisationexpense (8,366)

Writeoffs:

Grossvalue (117)

Accumulateddepreciation/amortisation 117


Grossbookvalue 224,302

Accumulateddepreciation/amortisation (26,781)

Net book value 1��,��1



�00� 2004

$’000 $’000

Note8E:Inventories

Inventoriesnotheldforsale(cost) 1,0�0 1,205

Total inventories 1,0�0 1,205

Alldepartmentalinventoriesarecurrentassets.

Note8F:OtherNon-FinancialAssets

Prepayments �,1�� 10,624

Total other non-financial assets �,1�� 10,624

Allothernon-financialassetsarecurrentassets.


Fina

ncia

l st

atem

ents


�00� 2004

$’000 $’000

Note �: Interest Bearing Liabilities

Note9A:Leases

Financeleasecommitments

Payable:

Withinoneyear �,�1� 5,399

Inonetofiveyears - 2,816

Minimumleasepayments �,�1� 8,215

Deduct:futurefinancecharges (�1) (287)

Net lease liability �,�� 7,928

Leaseliabilityisrepresentedby:

Current �,�� 5,153

Non-current - 2,775

Net lease liability �,�� 7,928

Afinanceleaseexistsinrelationtovessels.Theleaseisnon-cancellableandforafixedtermof6yearsand4months.Customsguaranteestheresidualofallassetsleased.Therearenocontingentrentals.

Fina

ncia

l st

atem

ents


�00� 2004

$’000 $’000

Note 10: ProvisionsSalariesandWages 1,�� 12,189

Leave 10�,�� 93,677

Superannuation 1�� 1,104

Aggregate employee entitlement liability 10�,�� 106,970

Other 1,0�� 2,276

Workerscompensation � 16

Aggregate employee entitlement liability and related on-costs 10�,��0 109,262

Current ��,�� 40,924

Non-current ��,�� 68,338

10�,��0 109,262



�00� 2004

$’000 $’000

Note 11: Payables

Note11A:SuppliersPayable

Tradecreditors ��,�� 25,347

Total supplier payables ��,�� 25,347

Allsupplierpayablesarecurrentliabilities.

Settlementisusuallymadenet30days.

Note11B:OtherPayables

Revenuereceivedinadvance �� 3,417

Fringebenefitstax �� 435

Otherpayables �,1�1 330

Total other payables �,0�� 4,182

Allotherpayablesarecurrentliabilities.


Fina

ncia

l st

atem

ents


Not

est

oan

dfo

rmin

gpa

rto

fth

eFi

nanc

ialSt

atem

ents

Not

e 1�

: Eq

uity

Not

e12

A:

Ana

lysi

sof

Equ

ity

Item

Ac

cum

ulat

ed R

esul

ts

As

set Re

valu

atio

n

R

eser

ves

Co

ntribu

ted

Equi

ty

TOTA

L EQ

UIT

Y

�00�

�00�

�00�

�00�

�00�

�00�

�00�

�00�

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

$’0

00

Ope

ning

bal

ance

as

at1

July

��

,1��

16,8

531�

,��

17,8

861�

�,��

�10

3,65

91�

�,11

�13

8,39

8

Adju

stm

ent

too

peni

ngb

alan

ce(

*)-

--

-�,

��

-�,

��

-

Net

sur

plus

/defi

cit

��,0

��6,

135

--

--

��,0

��6,

135

Net

rev

alua

tion

inc

rem

ent/(d

ecre

men

t)-

-�1

(2,1

48)

--

�1(2

,148

)

Chan

ges

in a

ccou

ntin

g po

licie

s –

Dec

reas

e in

re

taile

d su

rplu

s on

app

licat

ion

of tra

nsiti

onal

pr

ovis

ions

in

acco

untin

g st

anda

rd A

ASB 1

0�1

Reva

luat

ion

of N

on-c

urre

nt a

sset

s

--

-(1

39)

--

-(1

39)

Tran

sact

ions

with

ow

ner:

Dis

trib

utio

nst

oow

ner:

Retu

rns

onC

apital

Retu

rns

ofc

ontr

ibut

ede

quity

--

--

(�,�

�0)

-(�

,��0

)-

Cont

ribut

ions

by

owne

r:

Appr

opria

tion

s(e

quity

inje

ctio

ns)

--

--

��,1

��55

,866

��,1

��55

,866

Tran

sfer

sto

/(from

)/be

twee

nre

serv

es-

200

-(2

00)

--

--

Clos

ing

bala

nce

as a

t �0

Jun

e �0

0��0

,��0

23,1

881�

,��0

15,3

99�0

0,�0

�15

9,52

5��

�,�0

�19

8,11

2

(*)

This

refl

ects

the

val

ueo

fa

laps

ing

2003

-04

equi

tyinj

ection

.T

his

laps

ing

stat

usw

ass

ubse

quen

tly

reve

rsed

in

2004

-05

asa

res

ult

oft

heF

inan

cial

Hea

lth

Revi

ew.


Fina

ncia

l st

atem

ents


�00� 2004

$’000 $’000

Note 1�: Cash Flow Reconciliation

Reconciliation of Cash per Statement of Financial

Position to Statement of Cash Flows

CashatyearendperStatementofCashFlows 1�,0�� 24,097

StatementofFinancialPositionitemscomprisingabovecash:

‘FinancialAsset–Cash’ 1�,0�� 24,097

Reconciliation of net surplus to net cash from operating activities:

Netsurplus/(deficit) ��,0�� 6,135

Depreciation/amortisation ��,��0 28,198

Netwritedownofnon-financialassets �� 2,919

(Gain)/lossondisposalofassets (1��) 50

(Increase)/decreaseinnetreceivables (��,1��) 4,855

(Increase)/decreaseinotherassets–financial �� (145)

(Increase)/decreaseininventories 1�� 191

(Increase)/decreaseinotherassets–nonfinancial �,�� 8,425

Increase/(decrease)insupplierpayables ��,�� (3,753)

Increase/(decrease)inemployeeprovisions (�,�0�) 8,514

Increase/(decrease)inunearnedrevenue (�,��) 292

Increase/(decrease)inotherliabilities (�) (72)

Net cash from / (used by) operating activities ��,1�� 55,609



Note 1�: Contingent Liabilities and Assets

Quantifiable Contingencies

TheScheduleofContingenciesreportscontingentliabilitiesinrespectofclaimsanddamages/costsof$24,000.(2004:$514,000).TheamountrepresentsanestimateoftheAgency’sliabilitybasedonprecedentcases.TheAgencyisdefendingtheclaims.

Unquantifiable Contingencies

Asat30June2005,Customshadanumberoflegalclaimslodgedagainstitfordamagesandcosts.Customshasdeniedliabilityandisdefendingtheclaims.Inaddition,Customshaslodgedanumberofclaimstorecoverdamagescostswhicharealsobeingdefended.Itisnotpossibletoestimatetheamountofanyeventualpaymentsorreceiptsinrelationtotheseclaims.

Further,CustomshasanobligationtoacquireequipmentfromEDSonterminationorexpiryoftheIToutsourcinglease.Itisnotpossibletoestimatetheamountofanyeventualpaymentorreceiptinrelationtothisobligationduetotheuncertaintyofthefuturemarketvalueoftheleasedequipmentonhand.

TheAustralianGovernmenthasenteredintonewcontractualarrangementswithP&OMaritimeServicesfortheprovisionofmaritimecharterservicesuntilJune2006tofacilitatetheAustralianCustomsServiceandtheDepartmentofAgriculture,FisheriesandForestryarmedpatrolsofAustralia’sexclusiveeconomiczoneintheSouthernOcean.

Inrelationtothesepatrols,theAustralianGovernmentwillindemnifyP&OMaritimeServicesagainstcertainclaimsarisingfromthedischargeoffirearmsormunitions,orwhereasteamingpartyisdeployedtocrewaseizedvesselbacktoanAustralianport.


Fina

ncia

l st

atem

ents


Note 1�: Executive Remuneration

�00� 2004

Thenumberofexecutiveswhoreceivedorwereduetoreceivetotalremunerationof$100,000ormore:

$100000to$1099991 3

$110000to$119999 1 2

$120000to$129999 � 3

$140000to$149999 � 7

$150000to$159999 1 7

$160000to$169999 � 6

$170000to$179999 � -

$180000to$189999 � 1

$190000to$199999 1 3

$200000to$209999 1 3

$210000to$219999 � 1

$220000to$229999 1 -

$240000to$249999 - 1

$250000to$259999 1 -

$260000to$269999 1 1

$400000to$409999 - 1

$440000to$449999 1 -

$ $

Theaggregateamountoftotalremunerationofexecutivesshownabove. �,��,�� 6,536,379

Theaggregateamountofseparationandredundancy/terminationbenefitpaymentsduringtheyeartoexecutivesshownabove. �1�,0�� 273,155

Note 1�: Remuneration of Auditors�00� 2004

$ $

Financialstatementauditservicesareprovidedfreeofchargetotheagency.Thefairvalueoftheservicesprovidedwas: ��0,000 520,000

Duringtheyearended30June2005,theANAOperformedareviewofthe2004–05openingbalancesasaresultoftheimplementationoftheAustralianEquivalentstoInternationalFinancialReportingStandards(AEIFRS).Asatreportingdate,theconversionofthe30June2005resultstoAEIFRScompliantstatementswasstillinprogress.Thevalueof$580,000aboveincludesservicestobeprovidedbytheANAOonthereviewoftheAEIFRS30June2005compliantstatements.

NootherserviceswereprovidedbytheAuditor-General.

Note 1�: Average Staffing Levels�00� 2004

TheaveragestaffinglevelsforthebusinessoperationandtheAgencyduringtheyearwere: �,�� 4,690


Not

Not

est

oan

dfo

rmin

gpa

rto

fth

eFi

nanc

ialSt

atem

ents

Not

e 1�

: F

inan

cial

Ins

trum

ents

Not

e18

A:

Int

eres

tRat

eRis

k

Fina

ncia

l In

stru

men

tNot

esFl

oatin

g In

tere

st

Rate

Fixe

d In

tere

st R

ate

Mat

urin

g In

Non

-Int

eres

t Bea

ring

Tota

lW

eigh

ted

Av

erag

e Ef

fect

ive

Inte

rest

Rat

e1

Year

or

Less

1 to

� Y

ears

> �

Year

s

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00� %

2004 %

Fina

ncia

l Ass

ets

Cash

at

bank

7A

--

--

--

--

1�,0

��24

,097

1�,0

��24

,097

N/A

N/A

Rece

ivab

les

for

good

s

and

serv

ices

(gr

oss)

7B-

--

--

--

-�,

��

4,87

6�,

��

4,87

6N/A

N/A

Goo

dsa

ndS

ervi

ces

Ta

xre

ceiv

able

7B-

--

--

--

-�,

��

7,51

3�,

��

7,51

3N/A

N/A

Appr

opria

tion

sre

ceiv

able

7B-

--

--

--

-��

,1��

11,7

19��

,1��

11,7

19N/A

N/A

Tota

l -

--

--

--

-11

�,�0

�48

,205

11�,

�0�

48,2

05-

-

Tota

l Ass

ets

��,

�0�

344,

831

Fina

ncia

l Li

abili

ties

Fina

nce

leas

elia

bilit

ies

9A-

-�,

��

5,15

3-

2,77

5-

--

-�,

��

7,92

8�.

�0%

6.40

%

Trad

ecr

editor

s11

A-

--

--

--

-��

,��

25,3

47��

,��

25,3

47N/A

N/A

Tota

l -

-�,

��

5,15

3-

2,77

5-

-��

,��

25,3

47��

,��

33,2

75-

-

Tota

l Li

abili

ties

1��,

�0�

146,

719


Fina

ncia

l st

atem

ents


Note18B:NetFairValuesofFinancialAssetsandLiabilities

�00� 2004

Total Carrying Amount

Aggregate Net Fair Value

TotalCarryingAmount

AggregateNetFairValue

Notes $’000 $’000 $’000 $’000

Departmental

Financial Assets

Cashatbank 7A 1�,0�� 1�,0�� 24,097 24,097

Receivablesforgoodsandservices(net) 7B �,�01 �,�01 3,944 3,944

GoodsandServicesTaxreceivable 7B �,�� ,�� 7,513 7,513

Appropriationsreceivable 7B ��,1�� ,1�� 11,719 11,719

Total Financial Assets 111,0�� 111,0�� 47,273 47,273

Financial Liabilities (Recognised)

Financeleaseliabilities 9A �,�� ,�� 7,928 7,928

Tradecreditorsandaccruedexpenses 11A ��,�� ,�� 25,347 25,347

Total Financial Liabilities (Recognised) ��,�� ,�� 33,275 33,275

Financial assets

Thenetfairvaluesofcashandnon-interest-bearingmonetaryfinancialassetsapproximatetheircarryingamounts.

Financial liabilities

Thenetfairvaluesfortradecreditorsandaccruedexpensesareapproximatedbytheircarryingamounts.

Thenetfairvaluesoffinanceleasesarebasedupondiscountedcashflowsusingtheinterestrateimplicitinthelease.

Note18C:CreditRiskExposures

CustomsmaximumexposurestocreditriskatreportingdateinrelationtoeachclassofrecognisedfinancialassetsisthecarryingamountofthoseassetsasindicatedintheStatementofFinancialPosition.

Customshasnosignificantexposurestoanyconcentrationsofcreditrisk.



�00� 2004

$’000 $’000

Note 1�: Revenues Administered on Behalf of Government

Taxation Revenue

Customsduty �,��0,�0� 5,654,751

Othertaxes

PassengerMovementCharge ��,��1 329,786

Importprocessinganddepotcharges 1��,��0 119,700

Total Taxation Revenue �,0��,�0� 6,104,237

Non-Taxation Revenue

Interest

Deposits �1� 39

Other Revenues

Othernon-taxationrevenue 11,0�� 7,511

Total non-taxation revenue 11,��1 7,550

Total Revenues Administered on Behalf of Government �,0��,�� 6,111,787

Somefiguresin2003–04(designatedin Italics)havebeenre-classifiedforamoremeaningfulcomparisonwithfiguresin2004–05.


Fina

ncia

l st

atem

ents


�00� 2004

$’000 $’000

Note �0: Expenses Administered on Behalf of Government

Receivables – Provision for Doubtful Debts

Doubtfuldebts 1,�� 17,406

Bad Debts Written-off

Debtswritten-off �,�11 5,469

Import Credits

ACIScreditsappliedonduty ��1,0�� 586,861

Other Expenses

Otherexpenses �� 248

Total Expenses Administered on Behalf of Government ��,�� 609,984



�00� 2004

$’000 $’000

Note �1: Assets Administered on Behalf of Government

Financial Assets

Cash

Cashonhand �� 289

Cashatbank 1�� -

Specialaccounts �,�� 2,785

Total cash �,��1 3,074

Receivables

Goodsandservices ��,�� 37,244

Othertaxes ��,��1 50,840

Othernontaxationrevenue 1�,�� 12,069

Less:Provisionfordoubtfuldebts (�0,��) (28,832)

Total receivables (net) ��,�� 71,321

Receivables(gross)areagedasfollows:

Notoverdue ��,�� 65,228

Overdueby:

Lessthan30days 1,1�� 4,046

30to60days 1,�� 529

60to90days 1�� 214

Morethan90days �0,�� 30,136

Total receivables (gross) 10�,�1� 100,153

Theprovisionfordoubtfuldebtsisagedasfollows:

Notoverdue - -

Overdueby:

Morethan90days �0,�� 28,832

Total provision for doubtful debts �0,�� 28,832

Inventories

Inventoriesheldforsale �� 163

Total Inventories �� 163

Total Assets Administered on Behalf of Government �0,�� 74,558


Fina

ncia

l st

atem

ents


�00� 2004

$’000 $’000

Note ��: Liabilities Administered on Behalf of Government

Other Interest Bearing Liabilities

Otherdebt �,�� 2,785

Payables

Othertaxes �,�� 4,454

Special Accounts

Securitiesandotherspecialaccountbalances �,�1� 12,683

Total Liabilities Administered on Behalf of Government 1�,�� 19,922

Allliabilitiesareexpectedtobesettledwithin12monthsofbalancedate.



�00� 2004

$’000 $’000

Note ��: Administered Reconciliation Table

Opening administered assets less administered liabilities as at 1 July ��,�� 58,423

Adjustmentstoretainedearningsduetorecognitionofspecialaccounts (��) 12,075

Revised Total ��,��0 70,498

Plus:AdministeredRevenues �,0��,�� 6,111,787

Less:AdministeredExpenses (��,��) (609,984)

Administeredtransfersto/fromAustralianGovernment

AppropriationtransfersfromOPA ��0,�1� 307,049

TransferstoOPA (�,��,0��) (5,824,714)

NetDrawingsfromOPAonbehalfoftheATO* �0,1�� 56,913

NetPaymentsonbehalfoftheATOoutofSpecialAppropriations* (�0,1��) (56,913)

Closing administered assets less administered liabilities as at �0 June �00� ��,1�0 54,636

*TheAustralianTaxationOfficeistheresponsibleentityfortheseappropriationsandthesubsequentreturns.Asanewclassificationonthisschedule,figuresin2003–04(designatedin italics)havebeenclassifiedforamoremeaningfulcomparison.

Note ��: Administered Contingent Liabilities and Assets

Quantifiable Administered ContingenciesQuantifiableAdministeredContingenciesthatarenotremotearedisclosedintheScheduleofAdministeredItemsasQuantifiableAdministeredContingencies.

Unquantifiable Administered ContingenciesAsat30June2005,Customshadanumberoflegalclaimslodgedagainstitfordamagesandcosts.Customshasdeniedliabilityandisdefendingtheclaims.Inaddition,Customshaslodgedanumberofclaimstorecoverdamagesandcostswhicharealsobeingdefended.Itisnotpossibletoestimatetheamountsofanyeventualpaymentsorreceiptsinrelationtotheseclaims.

Remote Administered ContingenciesAsat30June2005,Customshadanumberoflegalclaimsfordamagesthatmayresultinagainof$895,413(2004:$1,354,218).


Fina

ncia

l st

atem

ents

Not

est

oan

dfo

rmin

gpa

rto

fth

eFi

nanc

ialSt

atem

ents

Not

e ��

: F

inan

cial

Ins

trum

ents

Not

e25

A:

Int

eres

tRat

eRis

k

Fina

ncia

l

Inst

rum

ent

Not

esFl

oatin

g In

tere

st

Rate

Fixe

d In

tere

st R

ate

Mat

urin

g In

Non

-Int

eres

t Bea

ring

Tota

lW

eigh

ted

Av

erag

e Ef

fect

ive

Inte

rest

Rat

e1

Year

or

Less

1 to

� Y

ears

> �

Year

s

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00�

$’00

0

2004

$’00

0

�00� %

2004 %

Fina

ncia

l Ass

ets

Cash

on

hand

21

--

--

--

--

�1�

289

�1�

289

N/A

N/A

Spec

ialA

ccou

nts

21�,

��

2,78

5-

--

--

--

-�,

��

2,78

55.

07%

4.89

%

Rece

ivab

les

(gro

ss)

21-

--

--

--

-10

�,�1

�10

0,15

310

�,�1

�10

0,15

3N/A

N/A

Tota

l �,

��

2,78

5-

--

--

-10

�,0�

�10

0,44

211

0,��

�10

3,22

7

Tota

l Ass

ets

�0,�

��74

,558

Fina

ncia

l Li

abili

ties

Cust

oms

duty

ref

und

avai

labl

e22

--

--

--

--

�,��

�4,

454

�,��

�4,

454

N/A

N/A

Secu

ritie

san

dot

her

spec

ialac

coun

tba

lanc

es22

--

--

--

--

�,�1

�12

,683

�,�1

�12

,683

N/A

N/A

Oth

erint

eres

tbe

arin

glia

bilit

ies

22�,

��

2,78

5-

--

--

--

-�,

��

2,78

5N/A

N/A

Tota

l �,

��

2,78

5-

--

--

-1�

,�0�

17,1

371�

,��

19,9

22

Tota

l lia

bilit

ies

1�,�

��19

,922



Note25B:NetFairValuesofFinancialAssetsandLiabilities

�00� 2004

Total carrying amount

Aggregate Net Fair Value

TotalCarryingAmount

AggregateNetFairValue

Notes $’000 $’000 $’000 $’000

Administered

Financial Assets

Cashatbank 21 �,��1 �,��1 3,074 3,074

Receivablesforcustomsduty&other(net) 21 ��,�� ,�� 71,321 71,321

Total Financial Assets �0,�� 0,�� 74,395 74,395

Financial Liabilities (Recognised)

Customsdutyrefundavailable 22 �,�� ,�� 4,454 4,454

Securities&otherspecialaccountbalances 22 �,�1� �,�1� 12,683 12,683

Otherinterestbearingliabilities 22 �,�� ,�� 2,785 2,785

Total Financial Liabilities (Recognised) 1�,�� 1�,�� 19,922 19,922

Financial assets

Thenetfairvaluesofcashandnon-interest-bearingmonetaryfinancialassetsapproximatetheircarryingamounts.

Financial liabilities

Thenetfairvaluesofliabilitiesareapproximatedbytheircarryingamounts.

Note25C:CreditRiskExposures

TheGovernment’smaximumexposurestocreditriskatreportingdateinrelationtoeachclassofrecognisedadministeredfinancialassetsisthecarryingamountofthoseassetsasindicatedintheScheduleofAdministeredItems.

TheGovernmenthasnosignificantexposurestoanyconcentrationsofcreditrisk.

Allfiguresforcreditriskreferredtodonottakeintoaccountthevalueofcollateralorothersecurity.

FinancialStatements �01

Fina

ncia

l st

atem

ents

NotestoandformingpartoftheFinancialStatementsfor the year ended 30 June 2005

Note ��: Appropriations

Note26A:AcquittalofAuthoritytoDrawCashfromtheConsolidatedRevenueFund(CRF)forOrdinaryAnnualServicesAppropriations

Particulars Administered Expenses

Departmental Total

Outputs

Outcome 1

Year ended �0 June �00� $ $ $

Balancecarriedfrompreviousyear ��,000 ��,��,�1� ��,��,�1�

Adjustments to opening balance - (10,��1,000) (10,��1,000)Reductionsofappropriations(prioryear)2003–04 (��,000) - (��,000)

AdjustedBalancecarriedforpreviousperiod - 1�,1��,�1� 1�,1��,�1�

AppropriationAct(No.1)2004–2005 ��0,000 �0�,�1�,000 �0�,��,000

AppropriationAct(No.3)2004–2005 - ��,��,000 ��,��,000

Refundscredited(FMAAs30) - ��,�� ,��

Sub-total2004–05AnnualAppropriations ��0,000 ��,��,�� ,0��,��

AppropriationstotakeaccountofrecoverableGST(FMAAs30A) - ��,��1,�� ,��1,��

Annotationsto‘netappropriations’(FMAAs31) - ��,��0,0�� ,��0,0��

Appropriationlapsedorreduced (��,110) - (��,110)

TotalAppropriationsavailableforpayments ��,��0 ��,��1,�� ,�0�,��

Cashpaymentsmadeduringyear(GSTinclusive) (��,��0) (�0�,��,0��) (�0�,1��,��)

Balance of Authority to Draw Cash from the CRF for Ordinary Annual Services Appropriations - ��,0��,�� ,0��,��

Represented by:

Cashatbankandonhand - �,0��,�� ,0��,��

Receivable–departmentalappropriations - ��,��,000 ��,��,000

Receivables–GSTreceivablefromcustomers - - -

Receivables–GSTreceivablefromATO - �,��,�� ,��,��

Total - ��,0��,�� ,0��,��

Reconciliation for Appropriation Acts (No.1 and 3)

PaidtotheentityfromtheOPA ��,��0 �1�,��,000 �1�,11�,��0

NotdrawnfromtheOPA ��,110 ��,��,000 ��,��,110

Total Appropriation Acts ��0,000 ��,��,000 ��,��,000

�0� AustralianCustomsServiceAnnualReport2004–05

NotestoandformingpartoftheFinancialStatementsfor the year ended 30 June 2005

Particulars Administered Expenses

Departmental Total

Outputs

Outcome 1

Year ended �0 June �00� (comparative period) $ $ $

Balancecarriedfrompreviousyear 34,686 20,108,972 20,143,658

Less:estimatedadministeredappropriationlapsed02–03 (34,686) - (34,686)

Adjusted Balance carried for previous period - 20,108,972 20,108,972

AppropriationAct(No.1)2003–2004 280,000 586,836,000 587,116,000

AppropriationAct(No.3)2003–2004 - 4,718,000 4,718,000

AppropriationstotakeaccountofrecoverableGST(FMAAs30A) - 33,887,000 33,887,000

Annotationsto‘netappropriations’(FMAAs31) - 80,250,135 80,250,135

Totalappropriationsavailableforpayments 280,000 725,800,107 726,080,107

Paymentsmadeduringtheyear(GSTinclusive) (248,000) (696,904,794) (697,152,794)

AppropriationscreditedtoSpecialAccounts - - -

Balance carried to the next year 32,000 28,895,313 28,927,313

FinancialStatements �0�

Fina

ncia

l st

atem

ents

Not

est

oan

dfo

rmin

gpa

rto

fth

eFi

nanc

ialSt

atem

ents

fo

rth

eye

are

nded

30

June

200

5

Not

e26

B:

Cas

hBas

isA

cqui

ttal

ofA

ppro

pria

tion

sfrom

Act

s2

and

4

Partic

ular

sAd

min

iste

red

Out

com

e 1

Non

-ope

ratin

gTo

tal

SPP’s

NAE

Equi

tyLo

ans

Pre

viou

s ye

ars’

out

puts

Adm

in a

sset

s an

d lia

bilit

ies

Year

end

ed �

0 Ju

ne �

00�

$$

$$

$$

$

Bal

ance

car

ried

from

pre

viou

sye

ar-

-

2

0,12

8,00

0-

-

-

2

0,12

8,00

0

Redu

ctio

nof

app

ropr

iation

s(p

rior

year

s)

-

Adju

sted

bal

ance

car

ried

from

pre

viou

spe

riod

-

-

20,

128,

000

-

-

-

20,

128,

000

Appr

opria

tion

Act

(No.

2)2

004–

2005

-

-

19,

471,

000

-

-

-

19,

471,

000

Appr

opria

tion

Act

(No.

4)2

004–

2005

-

-

22,

672,

000

-

-

-

22,

672,

000

Appr

opria

tion

sre

duce

dby

as

ection

11

dete

rmin

atio

n(c

urre

nty

ear)

-

-

-

-

-

-

-

Sub-

tota

l20

04-0

5Ann

ualA

ppro

pria

tion

-

-

62,

271,

000

-

-

-

62,

271,

000

Appr

opria

tion

to

take

acc

ount

ofre

ceiv

able

GST

(F

MAA

s30A

)-

-

2

,707

,269

-

-

-

2

,707

,269

Cash

pay

men

tsm

ade

durin

gth

eye

ar(

GST

inc

lusi

ve)

-

-

29,

782,

654

-

-

-

29,

782,

654

Bala

nce

of A

utho

rity

to D

raw

cas

h from

the

CRF

for

Oth

er T

han

Ord

inar

y An

nual

Ser

vice

s Ap

prop

riatio

ns-

-

3

5,19

5,61

5-

-

-

3

5,19

5,61

5

Partic

ular

sAd

min

iste

red

Out

com

e 1

Non

-ope

ratin

gTo

tal

SPP’s

NAE

Equi

tyLo

ans

Pre

viou

s ye

ars’

out

puts

Adm

in a

sset

s an

d lia

bilit

ies

Repr

esen

ted

by:

Cash

at

bank

and

on

hand

-

-

9,0

00,0

00

-

-

-

9,0

00,0

00

Dep

artm

enta

lap

prop

riation

rec

eiva

ble

-

-

26,

195,

615

-

-

-

26,

195,

615

Tota

l-

-

3

5,19

5,61

5-

-

-

3

5,19

5,61

5


Partic

ular

sAd

min

iste

red

Out

com

e 1

Non

-ope

ratin

gTo

tal

SPP’s

New

Equi

tyLo

ans

Pre

viou

s ye

ars’

out

puts

Adm

in a

sset

s an

d lia

bilit

ies

Year

end

ed �

0 Ju

ne �

00�

(Com

para

tive

Period

) $

$

$

$

$

$

$

Bal

ance

car

ried

from

pre

viou

sye

ar8

,400

,000

-

9

,000

,000

-

-

-

1

7,40

0,00

0

Appr

opria

tion

Act

(No.

2)

2003

–200

4-

-

2

0,48

9,00

0-

-

-

2

0,48

9,00

0

Appr

opria

tion

Act

(No.

4)

2003

–200

4-

-

4

3,07

5,00

0-

-

-

4

3,07

5,00

0

Adju

stm

ents

to

bala

nce

carr

ied

forw

ard

(8,

400,

000)

-

-

-

-

-

(8,

400,

000)

Appr

opria

tion

sto

tak

eac

coun

tof

rec

over

able

GST

(F

MAA

s30

A)

-

-

5,2

43,6

00

-

-

-

5,2

43,6

00

Appr

opria

tion

lap

sed

-

-

-

-

-

-

0

Tota

lap

prop

riation

ava

ilabl

efo

rpa

ymen

ts-

-

7

7,80

7,60

0-

-

-

7

7,80

7,60

0

Cash

pay

men

tsm

ade

durin

gth

eye

ar(

GST

inc

lusi

ve)

-

-

57,

679,

600

-

-

-

57,

679,

600

Appr

opria

tion

scr

edited

to

Spec

ialA

ccou

nts

-

-

-

-

-

-

0

Bala

nce

carr

ied

to the

nex

t ye

ar-

-

2

0,12

8,00

0-

-

-

2

0,12

8,00

0

Not

est

oan

dfo

rmin

gpa

rto

fth

eFi

nanc

ialSt

atem

ents

fo

r th

e ye

ar e

nded

30

June

200

5

-


Fina

ncia

l st

atem

ents


Note26C:AcquittalofAuthoritytoDrawCashfromtheConsolidatedRevenueFund–SpecialAppropriations(UnlimitedAmount)

Investment of Public Money: �00� $

2004$Special Appropriations under section �� of the FMA Act (Administered)

Amountinvestedcarriedfrompreviousperiod �,��,�� 2,677,137

Prioryearinvestmentsredeemedincurrentyear - -

Investmentsmadeduringtheyear 1�1,10� 128,166

Redemptionsofcurrentyearinvestments (�1�) (20,519)

Amountinvestedcarriedtothenextperiod(sumoftheabove) �,��,��0 2,784,784

Budget estimate 110,000 354,000

Financial Management and Accountability Act 1�� – Section �� (Repayments Required or Permitted by Law) (Administered)

�00� $

2004$

Cashpaymentsmadeduringtheyear* �1�,��1,�� 245,561,624

AppropriationscreditedtoSpecialAccounts - -

Refundscredited(net)(FMAs30) - -

Totalchargedtospecialappropriation �1�,��1,�� 245,561,624

Budget estimate (FMA s28) �0�,100,000 301,245,000

*TheAustralianTaxationOfficeisresponsiblefor$9,845,716ofthisappropriationrelatingtoGST(onimports),WET,LCTandSalesTax.

Australian Customs Act 1�01 – Section �AB – Reasonable amount of compensation for acquisition of property (Administered)

�00� $

2004$

Cashpaymentsmadeduringtheyear - -



Totalchargedtospecialappropriation - -

Budget estimate - -

Taxation Administration Act 1�� – Section 1� – Refunds of receipts to individuals under the Tourist Refund Scheme (Administered). TheAustralianTaxationOfficeistheresponsibleentityforthisappropriation.

�00� $

2004$

Cashpaymentsmadeduringtheyear �0,��,1�� 45,729,398



Totalchargedtospecialappropriation �0,��,1�� 45,729,398

Budget estimate (as this is a new disclosure requirement, there is currently no budget estimate available for this). N/A N/A

Somefiguresin2003–04(designatedin Italics)havebeenre-classifiedforamoremeaningfulcomparisonwithfiguresin2004–05.



Note26D:SpecialAccounts

�00� 2004

$ $

Other Trust Reserve (Administered)

Legal Authority: Financial Management & Accountability Act 1997: s20

Purpose: For the receipt of moneys temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth

Balancecarriedfrompreviousyear �,��,�� 5,940,780

Otherreceipts ��,01� 1,216,440

Adjustmenttoopeningbalance - -

Availableforpayments �,�00,�� 7,157,220

Paymentsmadetosuppliers (�,��,��) (1,223,771)

Balance carried to next year �,0��,�� 5,933,449

Represented by:

CashoncallheldintheOPA �,0��,�� 5,933,449

Total �,0��,�� 5,933,449

Tradegate Fees (Administered)


Purpose: For expenditure on payments to Tradegate Australia Ltd of fees collected by Customs for users of the Tradegate Network

Balancecarriedfrompreviousyear ��,�� 282,562

Receiptsfromothersources(Tradegate) 1�,�0�,��1 12,461,725

ReceiptsfromTradegateGST 1,��,�� 1,232,172

Availableforpayments 1�,��,0�� 13,976,459

Paymentsmadetosuppliers (1�,��,��) (13,589,131)

Balance carried to next year 1��,�0� 387,328

Represented by:

CashoncallheldintheOPA 1��,�0� 387,328

Total 1��,�0� 387,328

Security Deposits Reserve (Administered)


Purpose: For expenditure dealing with moneys required to be lodged under Section 42 and 162 of the Customs Act 1901

Balancecarriedfrompreviousyear �,��1,��0 7,640,227

Otherreceipts–securitydeposits �,��0,��0 7,283,359

Adjustmentstoopeningbalance - -

Availableforpayments 1�,��,�00 14,923,586

Paymentsmadetosuppliers (�,��,�1�) (8,561,656)

Balance carried to next year �,�0�,�� 6,361,930

Represented by:

CashoncallheldintheOPA �,�0�,�� 6,361,930

Total �,�0�,�� 6,361,930


Fina

ncia

l st

atem

ents

�00� 2004

$ $

Industry Related Systems Development Fund (Administered)


Purpose: For expenditure on industry related development of Customs Service

Balancecarriedfrompreviousyear �,��,�� 2,677,137

Receiptsfromotherservices 1�1,10� 128,166

Availableforpayments �,��,�� 2,805,303

Paymentsmadetosuppliers (�1�) (20,519)

Balance carried to next year �,��,��0 2,784,784

Represented by:

CashoncallheldintheOPA �,��,��0 2,784,784

Total �,��,��0 2,784,784

Services for Other Government and Non-Government Bodies Reserve (Administered)


Purpose: For expenditure in connection with services performed on behalf of other Governments and bodies that are not FMA agencies

Balancecarriedfrompreviousyear - -

Receiptsfromotherservices - -

Availableforpayments - -

Paymentsmadetosuppliers - -

Balance carried to next year - -

Represented by:

CashoncallheldintheOPA - -

Total - -




�00� 2004

$’000 $’000

Note ��: Specific Payment Disclosures

No‘ActofGrace’expenseswereincurredduringthereportingperiod.(2004:Noexpenses) Nil Nil

NowaiverofamountsowingtotheCommonwealthweremadepursuanttosubsection34(1)oftheFinancial Management and Accountability Act 1997 (2004:Nowaivers) Nil Nil

Noex-gratiapaymentswereprovidedforduringthereportingperiod(2004:Nopaymentsmade) Nil Nil

Nopaymentsweremadeunderthe‘DefectiveAdministrationScheme’duringthereportingperiod.(2004:Nopaymentsmade) Nil Nil

Nopaymentsweremadeunders73ofthePublic Service Act 1999duringthereportingperiod.(2004:Nopaymentsmade) Nil Nil


Fina

ncia

l st

atem

ents


Note ��: Reporting of Outcomes

Note28A:NetCostofOutcomeDelivery

Outcome 1 Total

�00� 2004 �00� 2004

$’000 $’000 $’000 $’000

Administeredexpenses ��,�� 609,984 ��,�� 609,984

Departmentalexpenses ��,1�� 800,606 ��,1�� 800,606

Total expenses 1,��0,�� 1,410,590 1,��0,�� 1,410,590

Costs recovered from provision of goods and services to the non government sector

Administered ��,�01 449,486 ��,�01 449,486

Departmental 11,�1� 12,596 11,�1� 12,596

Total costs recovered �0�,�1� 462,082 �0�,�1� 462,082

Other external revenues

Administered

Duty �,��,��0 5,652,564 �,��,��0 5,652,564

Duty(inter-government) �,�� 2,187 �,�� 2,187

Interestonloans �1� 39 �1� 39

Other 11,0�� 7,511 11,0�� 7,511

Total Administered �,��,0�� 5,662,301 �,��,0�� 5,662,301

Departmental

Goodsandservicesrevenuefromrelatedentities ��,��1 72,317 ��,��1 72,317

Interestoncashdeposits 1 - 1 -

Revenuefromdisposalofassets �� 264 �� 264

Total Departmental ��,�� 72,581 ��,�� 72,581

Total other external revenues �,��,��1 5,734,882 �,��,��1 5,734,882

Net cost/(contribution) of outcome (�,��,��) (4,786,374) (�,��,��) (4,786,374)

Fina

ncia

l st

atem

ents



Note28B:MajorClassesofDepartmentalRevenuesandExpensesbyOutputGroupsandOutputs

Outcome 1 Output 1 Output � Output �

�00� 2004 �00� 2004 �00� 2004

$’000 $’000 $’000 $’000 $’000 $’000

Departmental expenses

Employees 1��,1�� 148,490 ��,��0 64,735 ��,��0 22,768

Suppliers 1��,�11 114,444 �1,01� 34,406 ��,�� 229,472

Depreciationandamortisation 1�,�1� 15,304 �,��0 4,215 �,�� 4,553

Otherexpenses 1,10� 2,548 1�� 1,079 ��1 360

Total departmental expenses ��,�� 280,786 11�,�� 104,435 �0�,�� 257,153

Funded by:

Revenuesfromgovernment ��,�� 273,139 1��,�1� 101,592 1��,�� 98,895

RRFOCforCoastwatch - - - - 1��,�1� 129,490

Saleofgoodsandservices - 6,626 - 2,465 ��0 28,399

Othernon-taxationrevenues �,11� 3,732 1,��1 1,388 �,10� 1,615

Total departmental revenues ��,�10 283,497 1��,�� 105,445 �1�,��0 258,399

Outcome 1 Output � Output � Outcome Total

�00� 2004 �00� 2004 �00� 2004

$’000 $’000 $’000 $’000 $’000 $’000

Departmental expenses

Employees ��,�1� 80,763 �,�� 3,768 ��,�� 320,524

Suppliers ��,�1� 66,825 �,�1� 1,959 ��,�� 447,106

Depreciationandamortisation �,�� 4,016 10� 110 ��,��0 28,198

Otherexpenses �� 736 (��) 54 �,�� 4,777

Total departmental expenses 1��,��0 152,340 �,�1� 5,891 ��,1�� 800,605

Funded by:

Revenuesfromgovernment 110,0�� 112,198 �,11� 5,730 ��,�� 591,554

RRFOCforCoastwatch - - - - 1��,�1� 129,490

Saleofgoodsandservices ��,�� 39,722 - 139 ��,1�� 77,351

Othernon-taxationrevenues 1,�� 1,533 �� 78 �,11� 8,346

Total departmental revenues 1��,1�� 153,453 �,�1� 5,947 ��,�1� 806,741

Outputdepartmentalexpenseshavebeencalculatedusinganactivitybasedcostingmethodology.

FinancialStatements �11


Note28C:MajorClassesofAdministeredRevenuesandExpensesbyOutcome

Outcome 1 Total

�00� 2004 �00� 2004

$’000 $’000 $’000 $’000

Administered Revenues

CustomsDuty �,��0,�0� 5,654,751 �,��0,�0� 5,654,751

Othertaxes ��,�01 449,486 ��,�01 449,486

Othernon-taxationrevenues 11,��1 7,550 11,��1 7,550

Total Administered Revenues �,0��,�� 6,111,787 �,0��,�� 6,111,787

Administered Expenses

Importcredits ��1,0�� 586,861 ��1,0�� 586,861

Otherexpenses �,�1� 23,123 �,�1� 23,123

Total Administered Expenses ��,�� 609,984 ��,�� 609,984

Fina

ncia

l st

atem

ents


Section �Appendixes

Photo:DenisCleverlyandTroyParker,DampierOffice,onpatroltoprotectAustralia’scommunityandwildlife.

Appendix A – Occupational Health and Safety (OH&S)

ThefollowinginformationprovidesdetailsofCustomsresponsestoitslegalobligationsundersection74oftheOccupational Health and Safety (Commonwealth Employment) Act 1991(OH&SAct).

Section ��(1)(C) Customs occupational health and safety policy

CustomsintroducedanOH&SPolicyandOH&SManualinJune2004toreinforceOH&Sriskmanagementandtherolesandresponsibilitiesforallstaff.ActivitiestoimplementtheOH&SPolicyandManualincluded:

• awarenesssessionsofferedtostaffandmanagersintheRegionsonthenewpolicyframeworkandtheirnewrolesandresponsibilities

• developmentofabrochure,Hazard Identification and Risk Management,distributedtoallemployees

• developmentandpromotionofanOH&Sonlinelearningmodule

• allstaffmessagesalertingstafftothenewPolicywithlinkstoanIntranetsite.

TheNationalOH&SCommitteeendorsedanewOH&SNationalPlanandOH&SAgreementduringtheyear.RegionalOH&SCommitteesreviewedhealthandsafetyrepresentativenumbersinlinewiththeintroductionofanewvolunteerallowanceintheCertifiedAgreement.Therewerenochangestothecommitteestructureorfunctions,ortheselectionofhealthandsafetyrepresentatives.

Section ��(1)(D) Measures taken during the year to ensure the health, safety and welfare at work of employees and contractors of the department or authority

Customsundertookthefollowingmeasurestoensurethehealth,safetyandwelfareofemployeesandcontractorsthisyear:

• introducedanewOrganisationalHealthProjecttoimproveorganisationalperformance


• participatedinapilotearlyinterventionprogramwithComcaretoenhanceCustomsabilitytoprovidetimelyassistancetoemployeeswhoareinjuredorill,orhavethepotentialtobecomeinjuredorill.Theoutcomesfromthepilotwillbeusedtodevelopanewabsencemanagementpolicy

• developedseveraltoolkitstoassistmanagersandstafftobetterdealwithpeoplemanagementissuesandtominimiseworkplacestress.Topicsdevelopedincluded: Leading Teams; Managing Change and Managing Work-related Stress and Psychological Injury

• providedasix-monthlyreportonOH&SperformancetotheExecutiveandenhancedthereport’sperformanceindicatorsandformat.KeyoutcomesfromthereportswerealsoprovidedtoallmanagerstohelpraisetheirawarenessofOH&Sperformanceandemergingissues

• developedandimplementedanonlineOH&Sincidentreportingsystem.ThesystemwaslaunchedinApril2005andisdesignedtoefficientlycapturedetailsofallOH&Sincidentsandtosupporteffectivemonitoring,reportingandinvestigationofthoseincidents

• undertookanorganisationalriskassessmentoffirstaidarrangementsandreviewedHealthandSafetyRepresentativearrangements.AVolunteerAllowancewasintroducedinthe2004–2007CertifiedAgreementtorewardthoseemployeesappointedasHealthandSafetyRepresentatives

• implementedarangeofstrategiestopromotehealthandwellbeingsuchashealthseminars,healthandfitnesstestingandfluvaccinations.

Section ��(1)(E) Notifications under section �� of the OH&S Act

Therewere13notificationstoComcareofaccidentsordangerousoccurrencesin2004–05undersection68oftheOH&SAct.Detailedinvestigationswereundertakenintowhatoccurredandwhyandappropriatechangeswereimplementedtopreventrecurrence.

Section ��(1)(F) Directions under section �� of the OH&S Act

Therewerenodirectionsornotificationsthattheworkplacenotbedisturbedundersection45oftheOH&SAct.

Section ��(1)(F) Notifications under sections ��, �� and �� of the OH&S Act

TherewerenonotificationsmadeunderthesesectionsoftheOH&SActin2004–05.NoProvisionalImprovementNoticeswereposted.

Appe

ndix

A

OH&

S

AppendixA–Occupationalhealthandsafety �1�


Appendix B – Freedom of Information

Thisappendixprovidesinformationrequiredundersection8oftheFreedom of Information Act 1982(FOIAct),whichstipulatesthatagenciesmustreportannuallyon:

• theorganisation,functionsanddecisionmakingpowersoftheagency

• arrangementsforpublicinvolvementintheworkoftheagency

• typesofdocumentsheldbytheagency

• whereandhowthepubliccangainaccesstothesedocuments.

Functionsandpowers

CustomsispartoftheAttorney-General’sportfolio.

Customsprovideseffectivebordermanagementthat,withminimaldisruptiontolegitimatetradeandtravel,preventsillegalmovementacrosstheborder,raisesrevenueandprovidestradestatistics.

ResponsibilityforadministeringarangeoftaxandenforcementlegislationisvestedbyParliamentintheCEO.TheCEO’sauthoritytoadministerCustomsiswrittenintotherelevantlaw,asaretheCEO’sgeneralresponsibilities,discretionarypowersandrights.

FurtherinformationontheorganisationandfunctionsofCustoms,andalistofCommonwealthlegislationunderwhichCustomshaspowers,canbefoundintheOverviewofCustomsfrompage6.

Arrangementsforparticipation

CustomshasformalandinformalconsultativemechanismsinplacetoalloworganisationsandpeopleoutsidetheFederalGovernmenttoparticipateintheformulationandadministrationofpolicybyCustoms.MembersofthepubliccanvoicetheiropinionsinletterstotheMinisterforJusticeandCustoms,SenatortheHonChrisEllison,ParliamentHouse,Canberra,ACT2600.

TheCustomsNationalConsultativeCommitteeisthemajorforumforregularconsultationwithindustrybodies.Furtherinformationisonpage100.

InformalfeedbackfromclientsandotherinterestedpartiesaboutthedecisionsandactionsofCustomsisencouragedintheformoftheComplaintsandComplimentsSystem.Furtherinformationisonpage124.

Customsalsofollowsapracticeofinvitingcommentonsignificantpolicyissuesbeforedecisionsaremade.Thisincludesconsultingwithrelevantindustrygroupsandwelcomingfeedbackfromotherinterestedparties.

Types of documents

Customsholdsdocumentsonawiderangeoftopics,whicharebroadlycategorisedas:

• agendas,minutes,generalcorrespondenceandpapers

• internaladministrationpapers(includingresearchandprojectreports,accountingandfinancialrecords,legalrecords,andstaffandstaffingrecords)

• manualsandtrainingmaterials(includingvideotapes,guidelines,directionsandadministrativeinstructionsrelatingtoCustomsoperationsandlegislativeprocedures.Thisalsoincludessomepublicationspreparedfortheguidanceofstaffandthebusinesscommunitytoassistindecision-making)

• briefingpapers(includingbriefs,submissionsandreportstotheCustomsExecutiveandtheMinisterforJusticeandCustoms.Thesegenerallyrelatetopolicydevelopmentandbackgroundtoparticularadministrativedecisions)

• databaserecords(includingcomputerfiles,printouts,pre-printedformsandstatisticaltabulations).

Availability of documents to members of the public

SomedocumentsaregenerallyavailablewhileothersareavailableundertheFOIAct.

ManyofthedocumentsheldbyCustomsareavailableforfreeonrequest,including:

• annualreports

• corporateplansandotherassociatedplanningdocuments

• arangeoffactsheets,brochuresandbookletsincludinginformationonimportingandexportinggoods,informationforpeopletravellingoverseasanddetailsonindustryassistanceschemes

• AustralianCustomsNotices

• AustralianCustomsDumpingNotices.

Toensureatransparentprocessinwhichallinterestedpartieshavethemaximumopportunitytodefendtheirinterests,Customsalsomaintainsapublicfileforallanti-dumpingandcountervailinginvestigationsandreviews.

SomedocumentsheldbyCustomsareavailableforpurchase,including:

• DumpingCommoditiesRegister

• AustralianCustomsTariffGuide

• ScheduleofCommercialTariffConcessionOrders

• CombinedAustralianCustomsTariffNomenclatureStatisticalClassification.

Alistofdocumentsavailabletothepublicforinspectionorpurchaseundersection9oftheFOIActcanbefoundontheCustomsInternetsite.

DocumentsavailabletothepublicaregenerallyavailableontheCustomsInternetsiteorbycallingtheCustomsInformationandSupportCentreon1300363263duringbusinesshours.

Applicationsforaccesstodocuments,includingthosenotgenerallyavailabletothepublic,canbemadeundertheFOIAct.

Freedom of information inquiries

InquiriesregardingFreedomofInformationcanbemadebycontactingtheFreedomofInformationCoordinatorbytelephoning(02)62756666orbywritingto:

CentralOfficeFreedomofInformationCoordinatorCustomsHouse5ConstitutionAvenueCanberraACT2600foicoordinator@customs.gov.au

NewSouthWalesFreedomofInformationCoordinatorCustomsHouse10CooksRiverDriveSydneyInternationalAirportSydneyNSW2020

VictoriaFreedomofInformationCoordinatorCustomsHouse414LaTrobeStreetMelbourneVIC3000

QueenslandFreedomofInformationCoordinatorTerricaPlace140CreekStreetBrisbaneQLD4000

SouthAustraliaFreedomofInformationCoordinatorCustomsHouse220CommercialRoadPortAdelaideSA5015

WesternAustraliaFreedomofInformationCoordinatorCustomsHouse2HenryStreetFremantleWA6959

NorthernTerritoryFreedomofInformationCoordinatorCustomsHouse21LindsayStreetDarwinNT0800

TasmaniaFreedomofInformationCoordinatorFirstFloorMBFBuilding25ArgyleStreetHobartTAS7000

Inquiriescanbemadebyletter,telephoneorinperson.Emailinquiriesmaybesenttofoicoordinator@customs.gov.au.FreedomofInformationrequestsmustbemadeinwritingandshouldincludetelephonecontactnumbersandareturnAustralianaddress.A$30applicationfeeoraremissionrequestmustaccompanyeachrequest.

Appe

ndix

B

Free

dom

ofin

form

atio

n

AppendixB–FreedomofInformation �1�

Appendix C – Advertising and market research

Expenditureonadvertisingandmarketresearch,asoutlinedinsection311AoftheCommonwealth Electoral Act 1918,isshownbelow.

• HMABlazeistheCommonwealth'scontractedAdvertisingAgencyandusedbyCustomsforadvertisingoftheCustomsHotline,staffing,publicnoticesandCMR.

(a)$902229.48(HMABlaze2003–04)

(b)$872342.04(HMABlaze2004–05)

• CustomscommissionedACNielsentoconductasurveyofSmartGateusersinMelbourneandSydney.TheuserswereQantasaircrewandPlatinumandChairman'sClubfrequentflyerswhovolunteeredtoenrolinthetrial.Thesurveycost$63140(incGST)andwaspaidinMarch2005.


Appendix D – Administrative Appeals Tribunal and Administrative Decisions (Judicial Review) Act 1977

Figure ��: Administrative Appeals Tribunal applications for review (s��)

�00�–0� �00�–0� �00�–0�

TariffClassification 17 131^ 14#

Valuation(nowincludesOrigin) 13* - 6

TariffConcessions 6 1 2

Refunds - 1 -

AdministrativePenalties 3 2 -

FreedomofInformation 1 2 4

Other 4 7 4

Total �� 1�� 0

* 11oftheseapplicationsrelatetooneissue

^122oftheseapplicationsrelatetooneissue

# 8oftheseapplicationsrelatetooneissue

Figure ��: Administrative Appeals Tribunal requests for reasons (s��)

�00�–0� �00�–0� �00�–0�

TariffClassification - - -

Valuation/Origin - - -

TariffConcessions 1 - -

Refunds - - -

AdministrativePenalties - - -

FreedomofInformation - - -

Other - - -

Total 1 - -

Figure ��: Administrative Appeals Tribunal decisions handed down

�00�–0� �00�–0� �00�–0�

Customsdecisionsaffirmed 3 6 4

Customsdecisionssetaside 2 5 1

TariffClassification 1 5 1

Valuation/Origin - - -

TariffConcessions - - -

Refunds - - -

AdministrativePenalties - - -

FreedomofInformation - - -

Other 1 - -

Total � 11 �

AppendixD–AdministrativeAppealsTribunalandadministrativedecisions �1�

Appe

ndix

DAAT

&a

dmin

istr

ativ

ede

cisi

ons

Figure ��: Matters resolved before being heard by the Administrative Appeals Tribunal

�00�–0� �00�–0� �00�–0�

Mattersdismissed(s42A) 17 8 12

Matterssettledbyconsent(s42C) 54 21 15

TariffClassification 3 1 12#

Valuation/Origin 48* 10^ -

TariffConcessions 1 3 1

Refunds - - -

AdministrativePenalties 1 2 -

FreedomofInformation - - 1

Other 1 5 1

Total �1 ��

* 43oftheseapplicationsrelatetooneissue

^9oftheseapplicationsrelatetooneissue

# 8oftheseapplicationsrelatetooneissue

Figure ��: Federal Court appeals from decisions of the Administrative Appeals Tribunal

�00�–0� �00�–0� �00�–0�

AppealsresolvedinfavourofCustoms 1 2 3

AppealsresolvedagainstCustoms - 1 2

TariffClassification - - -

Valuation/Origin - - 1

Other - 1 1

Total 1 � �

Figure ��: Administrative Decisions (Judicial Review) Act 1�� applications/requests for reasons

�00�–0� �00�–0� �00�–0�

FederalCourtapplicationsforReview 4 4 3

RequestsforStatementofReasons 9 2 3

Total 1� � �

Matterssettledduringtheyear 1 2 4

Matterspending 5 3 2

Figure ��: Federal Court Decisions in Administrative Decisions (Judicial Review) Act 1�� matters

�00�–0� �00�–0� �00�–0�

MattersresolvedinfavourofCustoms 4 1 1

MattersresolvedagainstCustoms 1 2 -

Total � � 1

��0 AustralianCustomsServiceAnnualReport2004–05

Figure ��: Commonwealth Disability Strategy – Regulator role

Indicator Measure Performance

Publiclyavailableinformationonregulationsandquasi-regulationsisavailableinaccessibleformatsforpeoplewithdisabilities.

Percentageofpubliclyavailableinformationonregulationsandquasi-regulationsrequestedandprovidedin:

• accessibleelectronicformats

• accessibleformatsotherthanelectronic.

Averagetimetakentoprovideaccessiblematerialin:

• electronicformat

• formatsotherthanelectronic.

• Allclient-relatedinformationisavailableinhardcopyandontheCustomsInternetsite.DocumentsinhtmlformatorpdffilesproducedinAdobeversion5orlaterarereadablebyJAWSsoftwareforthevisuallyimpaired.

• TheCustomsInformationandSupportCentreprovidedprintedinformation(postedwithinonedayofrequest)andverbaltelephoneadvice(givenimmediately).

• WritteninformationispresentedininclusiveandpositivelanguageandplainEnglishisalwaysused.

• Electronicinformationisavailable24hoursaday7daysaweekviatheCustomsInternetsite.

• Internationallyaccepteddirectionalsignsareusedatairports.

• TTYfacilitiesareavailableasrequired.

• Assistanceisavailableforpeoplewithdisabilitieswhohavedifficultycompletingforms.

• Investigatingofficersdealingwithpeoplewithdisabilitiesusealternativemethodsofcommunicationtoensureinformationisfullyunderstood.

• Aspartofthetrainingofallnewentry-levelCustomsstaff,trainingisprovidedinassistingpeoplewithdisabilities.Trainingfocusesonunderstandingimpairments,disabilities,languagechoices,stereotypingandinterviewprocesses.

Publiclyavailableregulatorycompliancereportingisavailableinaccessibleformatsforpeoplewithdisabilities.

Asabove. • AnnualReportsareavailableinhardcopyandontheCustomsInternetsite.

Appe

ndix

E

Dis

abili

tys

trat

egy

AppendixE–CommonwealthDisabilityStrategy ��1

ThissectionprovidesinformationonCustomsperformanceimplementingtheCommonwealthDisabilityStrategy.

CustomscorerolesinimplementingtheCommonwealthDisabilityStrategy,areasregulator,serviceproviderandemployer.

Appendix E – Commonwealth Disability Strategy

Figure �0: Commonwealth Disability Strategy – Provider role


Providershaveestablishedmechanismsforqualityimprovementandassurance.

Evidenceofqualityimprovementandassurancesystemsinplace.

• CustomscontainerexaminationfacilitiesinMelbourne,Sydney,BrisbaneandFremantlehaveallreceivedandmaintainedaccreditationtotheISO9001:2000standard.ArecentlyopenedfacilityinAdelaideisworkingtowardsaccreditationlatein2005.

• TheCustomsBusinessPlanningandPerformanceFrameworkrequiresallworkareastoensurestaffcomplywiththeCustomsWorkplaceDiversityPolicyandAPSValuesandCodeofConduct.

Providershaveanestablishedservicecharterthatspecifiestherolesoftheproviderandconsumerandservicestandardsthataddressaccessibilityforpeoplewithdisabilities.

Establishedservicecharterthatadequatelyreflectstheneedsofpeoplewithdisabilitiesinoperation.

• TheclientservicechartercommitsCustomstoaimingtomakeinformationservicesanddocumentationaccessibleforallclientsregardlessofdisability,languageorculturaldifference.

• Customsfacilitatesthemovementofpeoplewithmobilitylimitationsbyallowingthemtousecrewprocessinglanesandprovidingheadofqueuestatus.

Complaints/grievancemechanisms,includingaccesstoexternalmechanisms,inplacetoaddressissuesandconcernsaboutperformance.

Establishedcomplaints/grievance,includingaccesstoexternalmechanismsinoperation.

• Ageneralcomplaintsandcomplimentssystemisavailabletoallmembersofthepublic.MembersofthepubliccanalsocontacttheCustomsInformationandSupportCentreon1300363263duringbusinesshours.TTYfacilitiesareavailableforthisservice.

• Ananalysisofcomplaintsreceivedduring2004–05indicatesthattherewerenodisability-relatedcomplaints.


Figure �1: Commonwealth Disability Strategy – Employer role


Employmentpolicies,proceduresandpracticescomplywiththeDisability Discrimination Act 1992.

Numberofemploymentpolicies,proceduresandpracticesthatmeettherequirementsoftheDisability Discrimination Act 1992.

• AllemploymentpoliciesandproceduresmeettherequirementsoftheDisability Discrimination Act 1992.

• CustomsmaintainsanITpolicyforpeoplewithdisabilities.

Recruitmentinformationforpotentialjobapplicantsisavailableinaccessibleformatsonrequest.

Percentageofrecruitmentinformationrequestedandprovidedin:

• accessibleelectronicformats

• accessibleformatsotherthanelectronic.

Averagetimetakentoprovideaccessiblematerialin:

• electronicformat

• formatsotherthanelectronic.

• AllrecruitmentinformationisavailableinhardcopyandelectronicallyontheCustomsInternetsite.Hardcopyapplicationpacksaredispatchedbystandardpostwithinonedayofreceiptoftherequest.

• Aphonenumberisprovidedforabovebaserecruitmentinquiriesandselectiondocumentationanda1300numberisavailableforbaselevelrecruitment.Additionally,aCustomscontactofficerassistswithjob-specificqueries.TTYfacilitiesarealsoavailable.

• Customsapplicationformsprovideforapplicantstoindicateiftheyhaveadisabilityandrequireanyspecialassistancetoattendselectionactivities.Provisionismadeforthesespecialneedswhererequested.

Agencyrecruitersandmanagersapplytheprincipleof‘reasonableadjustment’.

Percentageofrecruitersandmanagersprovidedwithinformationon‘reasonableadjustment’.

• InformationonreasonableadjustmentisavailableformanagersandotherstaffontheCustomsIntranet.

Traininganddevelopmentprogramsconsidertheneedsofstaffwithdisabilities.

Percentageoftraininganddevelopmentprogramsthatconsidertheneedsofstaff.

• Alltraininganddevelopmentprogramsconsidertheneedsofstaffwithdisabilities.

• Trainingfacilitiesexisttocaterforstaffwithdisabilities.

• Avarietyoftrainingformatsareprovidedwithexaminationsflexiblytailoredtomeetparticipantrequirements.

• Assessmentprocessestakeaccountofspecificneeds.

Appe

ndix

E

Dis

abili

tys

trat

egy

AppendixE–CommonwealthDisabilityStrategy ��


Traininganddevelopmentprogramsincludeinformationondisabilityissuesastheyrelatetothecontentoftheprogram.

Percentageoftraininganddevelopmentprogramsthatincludeinformationondisabilityissuesastheyrelatetotheprogram.

• Allrelevanttrainingprogramsincludematerialrelatingtopeoplewithdisabilities.

• TheCustomsDevelopmentProgramprovidesanumberofcompetencystandardsdealingwithdiversity,someofwhichfocusexplicitlyondisabilityissues.

• Customsiscurrentlytriallinganumberofonlinetrainingprograms,severalofwhichcontainsectionsdealingwithdisabilityissues.

Complaints/grievancemechanisms,includingaccesstoexternalmechanisms,inplacetoaddressissuesandconcernsraisedbystaff.

Establishedcomplaints/grievancemechanisms,includingaccesstoexternalmechanismsinoperation.

• Allstaffmayaccessinternaldisputeresolution/reviewprocesses.Staffinvolvedintheseprocesseshaveaccesstoassistanceandinformationthatconsidersdisabilityissues.

• StaffmayalsoaccessexternalmechanismsincludingreviewbytheMeritProtectionCommissionerandlodgingclaimsunderanti-discriminationlegislationtotheHumanRightsandEqualOpportunityCommissioner.

• Generalinformationonworkplaceissuesforpeoplewithdisabilitiesiscollectedthroughbiannualstaffsurveys.Theperformanceassessmentandfeedbacksystemismandatoryforallstaffandencouragesfeedbackonperformanceanddevelopmentissues.


Figure �1: Commonwealth Disability Strategy – Employer role (continued)

Appendix F – Correction of errors

Correctionsforthe2003–04AnnualReportareasfollows:

• Pages3and15ofthe2003–04ReportrefertotheFinancial Transactions Reports Act 1998.Thisshouldhavebeenthe Financial Transactions Reports Act 1988.

• Figure24detailedthecostsincurredin2003–04fortheprovisionofpassengerprocessingservices.TheamountfortheDepartmentofImmigrationandMulticulturalandIndigenousAffairs(DIMIA)of$80.865mwasactuallythetotalfor2002–03,not2003–04.The2003–04costsforDIMIAwerenotavailableatthetimeofpublication.InApril2005,DIMIAreportedthatadoublecountinghadbeendetectedintheActivityBasedCostingdataforsomeprocessandactivitycostsandthattherelevantDIMIAcostsfor2003–04was$68.876m.

AppendixF–Correctionoferrors ��

Appe

ndix

F

Corr

ection

ofer

rors


AppendixF–Correctionoferrors ��

Appe

ndix

C

orre

ctio

nof

err

ors

Section �Glossaryandacronyms

Photo:CustomsOfficer,SeanO’ReillyatSydneyAirportexaminingluggagefortracesofnarcoticsusingionscantechnology.

Glossary and acronyms

AAT AdministrativeAppealsTribunal

ACCC AustralianCompetitionandConsumerCommission

ACIS AutomotiveCompetitivenessandInvestmentsScheme

ACV AustralianCustomsVessel

ADF AustralianDefenceForce

AEEZ AustralianExclusiveEconomicZone

AFIF AustralianFederationofInternationalForwarders

AFMA AustralianFisheriesManagementAuthority

AFP AustralianFederalPolice

AGD Attorney-General’sDepartment

ANZCERTA AustraliaNewZealandCloserEconomicRelationsTradeAgreement

ANAO AustralianNationalAuditOffice

APEC Asia-PacificEconomicCooperation

APS AustralianPublicService

AQIS AustralianQuarantineandInspectionService

ASEAN AssociationofSoutheastAsianNations

ATO AustralianTaxationOffice

AusAID AustralianAgencyforInternationalDevelopment

AUSFTA Australia–UnitedStatesFreeTradeAgreement

AUSTRAC AustralianTransactionReportsandAnalysisCentre

AWA AustralianWorkplaceAgreement

BAGS BaggageActionGeneralStatistics(system)

CACAct Commonwealth Authorities and Companies Act 1997

CBFCA CustomsBrokersandForwardersCouncilofAustralia

CCTV closedcircuittelevision

CEF containerexaminationfacility

CEO ChiefExecutiveOfficer

CI&SC CustomsInformationandSupportCentre

CL CustomsLevel(withreferencetostaffclassifications)

CMR CargoManagementReengineering

CNCC CustomsNationalConsultativeCommittee

COMPILE CustomsOnlineMethodofPreparingInvoicesfromLodgeableEntries–theCustomsbusinessapplicationforCustomsandExciseentrypreparationandprocessing

CSIRO CommonwealthScientificandIndustrialResearchOrganisation

Defence DepartmentofDefence

DFAT DepartmentofForeignAffairsandTrade

DHEA dehydroepiandrosterone–alsoknownasprasterone,aperformance-enhancingdrug

DIMIA DepartmentofImmigrationandMulticulturalandIndigenousAffairs

DITR DepartmentofIndustry,TourismandResources

DoFA DepartmentofFinanceandAdministration

DOTARS DepartmentofTransportandRegionalServices


Glo

ssar

y an

d ac

rony

ms

dutyforgone Importdutythatwouldhavebeencollectedifaconcessionalschemehadnotbeenusedanddutyhadbeenpaidatthegeneraltariffrate

ECP entrycontrolpoint—adesignatedpointatanairorseaport,whereinternationalpassengersaresubjecttoCustomsandimmigrationformalitiesorprocedures,beforelegalentryintoAustralia

ecstasy MDMA–3,4-methylenedioxymethamphetamine

EDI ElectronicDataInterchange—anautomatedpaperlesssystemthatpermitstransmissionofinvoices,purchaseorders,andotherbusinessrecords,inastandardelectronicformat,betweencorporations,overacomputernetwork.

EDIFICE ElectronicDataInterchangeforInputofCustomsEntries–theCustomsbusinessapplicationforelectronicfundstransferofimportandexcisedutiespayable

EDS EDSAustralia(informationtechnologyserviceprovider)

EFS ExportFacilitationScheme

EL ExecutiveLevel

EXIT ExportIntegrationsystem–theCustomsinformationsystemforprocessingexportentriesandmanifests

FATF FinancialActionTaskForce

FFV foreignfishingvessel

FOB freeonboard.Thetermdefinesthecostofthegoodsincludinganycartagecosts,etc.,incurredinplacinggoodsonboardavesselattheplaceofexport.Thegoodsareplacedonboardashipbythesellerataportofshipmentnamedinthesalescontract.Theriskoflossordamagetothegoodsistransferredfromthesellertothebuyerwhenthegoodspasstheship’srail.Thecustomsvalueofimportedgoodsincludesalltransportrelatedcostsincurredbeforethegoodsleavetheplaceofexport,whichthepurchasermustpaytothevendorasaconditionofthetransactionforthegoods.Inpractice,thismeansthatanycostsforinlandfreightandinlandinsuranceincludedinthevendor’sinvoicepriceforthegoods,formpartoftheCustomsvalue—providedthesetransportrelatedcostsareincurredbeforethegoodsleavetheplaceofexportinthecountryofexportation.(Refer:s154(1)Customs Act 1901)

FOIAct Freedom of Information Act 1982

FTA FreeTradeAgreement

FTE full-timeequivalent

GST goodsandservicestax

HDPE highdensitypolyethylene

HOCOLEA HeadsofCommonwealthOperationalLawEnforcementAgencies

‘ice’ methamphetamine

ICS IntegratedCargoSystem

IGCD IntergovernmentalCommitteeonDrugs

IMO InternationalMaritimeOrganization

INTERCEPT InformationNetworktoEnhanceResponse,Control,EnforcementandPreventionTechniquessystem

Ionscan traceparticledetector

IT informationtechnology

Glossaryandacronyms ��


IUU illegal,unregulatedandunreported(fishing)

LCT luxurycartax

LLDPE linearlowdensitypolyethylene

MDMA 3,4-methylenedioxymethamphetamine–alsoknownasecstasy

NAIDOC NationalAboriginalandIslanderDayObservanceCommittee

NCBLAC NationalCustomsBrokersLicensingAdvisoryCommittee

NDARC NationalDrugandAlcoholResearchCentre

NDLERF NationalDrugLawenforcementResearchFund

NICNAS NationalIndustrialChemicalNotificationandAssessmentScheme

NPPC NationalPassengerProcessingCommittee

OH&S occupationalhealthandsafety

OCO OceaniaCustomsOrganisation

OECD OrganisationforEconomicCooperationandDevelopment

PAF performanceassessmentandfeedback–performancereviewscheme

PIED PerformanceandImageEnhancingDrug

PMC PassengerMovementCharge–achargeplacedonindividualsleavingAustralia

PM&C DepartmentofthePrimeMinisterandCabinet

PVC polyvinylchloride

RAAF RoyalAustralianAirForce

SES SeniorExecutiveService

SIEV suspectillegalentryvessel

SUNC suspectunlawfulnon-citizen

TAFTA Thailand-AustraliaFreeTradeAgreement

TARCON TariffConcessions(system)

TAPIN TariffandPrecedentInformationNetwork–thissystemholdsalldetailsabouttheCustomsimporttariff,andalsorecordsdetailsofallrequestsforTariffAdviceNotices

TEU twenty-footequivalentunit

TMRO TradeMeasuresReviewOfficer

TRADEX ThisschemeisadministeredbyAusIndustryandallowsimportationwithoutpaymentofdutyorsalestaxwhenthegoodsareintendedforexport

TRS TouristRefundScheme

US UnitedStatesofAmerica

WCO WorldCustomsOrganization

WET wineequalisationtax

WTO WorldTradeOrganization


Section �Index

Photo:TroyParkeratMountHerbert,MillstreamNationalPark,WA,observingtheareaforanysignsofvehicles.


A

absenteeism,106,116,135,accesstodocumentsunderFreedomofInformation,

216–217accountabilitytoclients,124–125 environmentalaccountability,125accounting policies,123,146,163,171 standards,122–123,170–172accreditedclients,75–76,89ACNielsen,218addresses,217,insidecoversAdelaideCEF,41Administrative Appeals Tribunal and Administrative

Decisions (Judicial Review) Act 1977,217–218advancepassengerprocessing,54–55,56advertisingandmarketresearch,122,218aerialsurveillance,29,59–62airbordersecurity,55,57aircargo reporting,26 screening,14,30,36,38, statistics,14airexpresscouriers,20airpassengers,14,15,51–57airpassengersandcrew prohibitedgoodsseizures,39–42AirbusA380,56–57aircraftusedinsurveillance,29,45,56–57,59,60,123 Dash8,45,61 helicopters,29,125 Orion,59,60airlinereservationsystems,51,55airlines,international useofregionalairports,53airportsurveillance,21,36,57airports improvingpassengerflow,53 planning,51 regionalairportsusedforinternationalservices,53AmcorPackaging(Australia)PtyLimited,95ammoniumnitrate,24–25amphetamine-typestimulants(ATS)detectionand

seizure,15,38–41,43,48anti-doping,46anti-dumpingandcountervailingadministration,

91–95,130,139appeals toFederalCourt,91,139,141–142,218 toTradeMeasuresReviewOfficer,92,94


armedpatrols,70–72Arnhem Bay(Customsvessel),68AshmoreIslandsNatureReserve,18,128AsiaPacificEconomicCooperation(APEC),102,

120,130assetsmanagement,122assetsrecovery,84AssociationofSouthEastAsianNations(ASEAN),

85,102Attorney-General’sportfolio/Department,6,24,28,

47,163,216AuditCommittee,100,101,105,143Auditor-General’sreports,142–143,147–148audits,82,89 financial,103,146 internalaudit,98,105,120,122 ITaudit,105 ofCEFs,33,143 ofenergy,128,131 posttransactional,90 privacyaudits,139 securityinvestigations,142AusAID,104AustralasianPoliceMinisters’Council(APMC),26AustraliaDayAwardMedallionforAchievement,30AustraliaGroup,28AustraliaNewZealandCloserEconomicRelations

TradeAgreement,85Australia-UnitedStatesFreeTradeAgreement,73,

84,117AustralianAccountingStandardsBoard,122AustralianAntarcticDivision,14AustralianArmy,32AustralianBureauofStatistics(ABS),2,80,83,86,92AustralianCompetitionandConsumerCommission

(ACCC),92AustralianCrimeCommission,101AustralianCustomsvessels(ACV),19,67–70,72 Arnhem Bay,68 Botany Bay,41 Corio Bay,69 Dame Roma Mitchell,67 Hervey Bay,69 Holdfast Bay,69AustralianDefenceForce,3,6,7,17,58,63–64,66AustralianEquivalenttoInternationalFinancial

ReportingStandards(AEIFRS),171–174AustralianExclusiveEconomicZone(AEEZ),58,59,

61,71,AustralianFederalPolice(AFP),6,18,19,28,32,

38,45,47,50,57,64


Index ��

Inde

x

AustralianFisheriesManagementAuthority(AFMA),14,18,19,61,64,66,70

AustralianGovernmentAuthenticationFramework,117AustralianGovernmentInvestigationStandards,49,84AustralianGovernmentSolicitor,122AustralianIndustrialRelationsCommission,111AustralianInstituteofCriminology,47AustralianLawReformCommission,83,144AustralianMaritimeIdentificationSystem,63,64,72AustralianMaritimeSafetyAuthority,64AustralianNationalAuditOffice(ANAO),33,50,

101,105,142–143AustralianPetroleumProductionandExploration

Association,64AustralianPublicService(APS),112,134 codeofconductandvalues,98,113–114,129,134 ExecutiveLeadershipawards,78AustralianPublicServiceCommission,133AustralianQuarantineandInspectionService

(AQIS),6,18,19,32,61,64,66,67,80AustralianSecurityIntelligenceOrganisation(ASIO),28AustralianSportsCommission,25AustralianTaxationOffice(ATO),18,19,81,85–86,88–

89,119AustralianTouristCommission,53AustralianVinylsCorporationLimited,95AustralianWorkplaceAgreements,112authenticationtechnologies,47,119authorityandpower,6automatedborder-processingtechnology,54,56–57AutomotiveCompetitivenessandInvestment

Scheme(ACIS)Credit,15,143,158,195averments,144aviationsecurity,2,35,38,55–56,143AviationSecurityInitiatives,38awards,30,78

B

BaduIsland,62,135baggageexamination,21,23,128,136,136Beijingoffice,103benchmarkaudits,82BernierandDorreIslandNatureReserves,128biologicalandchemicalagentscreening,36biometrics,17,51,53,54,57boardingofcommercialships,14,21,29,35BorderComplianceandEnforcementdivision,98bordercontrols,2BorderIntelligenceandPassengersdivision,98

bordermanagement,8,14–20,29,101,130,163see alsoOutcomeandOutputstechnologies,35–38,54–55

borderprotection,9,106,120see alsoaviationsecurity,maritimesecurityandOutputs1,2and3

training,106bordersecurity,Outputs,101,119 Indonesia,103 PapuaNewGuinea,104Border Security(TVprogram),3,120,121Botany Bay(Customsvessel),41Bow de Silver(vessel),41Brisbaneairport,38,55BrisbaneCEF,35budget,16,87,96,99,143 2004–05,16,29,51,54,72,147 2005–06,51,54,70,82 financialstatements,147–211 internalbudgets,117 PortfolioAdditionalEstimatesStatements,17,147 PortfolioBudgetStatements,15,17,22,52,58,

59,74,90,102,118,120BusinessContinuityPlanningSteeringCommittee,100businesspractice,95,98,105

C

callcentremanagementsystem,124cannabisdetectionandseizures,15,39–41CargoandTradedivision,98–99cargoexamination,33,see alsocontainer

examinationfacilities,x-rays aircargo,14,30,36,38,40,74,118 seacargo,33–34,43cargofacilitation,output2,3,14,15,21,26,104,CargoManagementReengineering,2,4,5,9,73,

75–81,98,104,146cargoreporting,10,26,76,82,120casualstaffstatistics,107,134CertifiedAgreement2004–2007,106,111–113ChannelSeven(TV),3,120–121chemicalandbiologicalweaponsforum,28chemicaldetectionequipment,31,36,50chemicalsfordrugsseeprecursorschemicalsimportsandexports,24ChiefExecutiveOfficer,4,6–7,11,83,99–101 AustraliaDayAward,30,118,123 review,2–5 statutorypowers,6childpornography,24,49ChinaseePeoplesRepublicofChina

Index ��

Inde

x


ChristmasIsland,61CITSolutions,115civilmaritimesurveillanceandresponse,output,3,

4,6,8,15–19,58–72CivilMaritimeSurveillanceProject,3,4,60,64clandestinelaboratories,42ClientDataManagementStrategy,120clientservicecharter,124clients,124–126 accreditedclients,75–76,90 complaintsandcompliments,33,35,124–125,136 CustomsInformationandSupportCentre,124–

125,217,221–222 datamanagementstrategy,120 inquiries,124closedcircuittelevision,14,20,35,36–37,41,55,115CMS04,62Coastwatch,4–6,19,45,58–61,63–64,72,98–99CoastwatchRiskAssessmentMethodology(CRAM),

58,61cocaine detectionandseizures,4,15,39–41,45 use,46Cocos(Keeling)Islands,61codeofconduct,98,113–114,129,134collectionofrevenue,output,10,14,74–90,130Comcare,116,212ComCoverriskmanagementsurvey,105CommissionfortheConservationofAntarctic

MarineLivingResources,19,70committees inter-agency,25,46,47,53,64,89,98,117 internal,98–99,104,144 overseas,28,89,117 parliamentary,75,142,143CommonwealthDisabilityStrategy,129,221–223Commonwealth Fraud Control Guidelines,49,84,

105,115CommonwealthGames,Melbourne(2006),17,24,57Commonwealth Procurement Guidelines,117CommonwealthReferenceGrouponIdentityFraud,47CommonwealthScientificandIndustrialResearch

Organisation(CSIRO),36,38communication fornon-Englishspeakingclients,129 internal,98,118,133communicationstechnologyonAustralianCustoms

vessels,70,72CommunityandPublicSectorUnionstrike,111communityprotectionreferrals,19,21,129,170compensationclaims,116,134


competitivetenderingandcontracting,98,117,122complaintsandcompliments,33,35,83,88,90,

124–125,136,222 complaintsaboutanti-dumpingmeasures,91 complaintsaboutCEFs,34–35,125 complaintsaboutdutyrecovery,83 complaintsaboutemployeemisconduct,114–115 complaintsfrompassengers,89–90 complaintstoOmbudsman,124,139,141ComplaintsandComplimentsManagementSystem,

124–125,136,216,222complianceactivityrelatingtorevenuecollection,

2,26,73,75,81–84,130ComplianceAssuranceStrategy,56,73,81–84ComputerAssociates,120computerforensics,37computersystemssee alsoIntegratedCargo

System,INTERCEPT smallsystemsdeveloped,119 TAPIN,73,89 TARCON,73,89Concessionssee alsotariffconcessions forimportersandexporters,15,73,85–86,88 forpassengers,88ConservationandLandManagement(Western

Australia),128consignmentinspectionsforairexpressitems,18consultants,115,120–122consultations withindustry,14,38,75,76,83,90,92,100–101,

136,216 withstakeholders,92,98,100–101consultativemechanisms,62,64,100–101,216–217contactinformation,124,insidecovers FreedomofInformation,217ContainerExaminationFacilities(CEFs),14,21,33–

35,50,83,126,222containerx-raymachines,5contracts,120 foraerialsurveillance,62,72 forinformationtechnology,117,120,122ConventiononCombatingBriberyofForeignPublic

OfficialsinInternationalBusinessTransactions,49conventions,international,24,28,47,49,70,71cooperationbetweenCustomsand governmentagencies,6,18–19,27,28,33,46,

55,63,68(see alsointer-agencycooperation) industry,27,38,63,76,91,100–101,136,216 internationalstakeholders,3,31,33,47,61,71,

72,89,91–92,102–104 lawenforcementagencies,3,30,33,46,100–102

Index ��

Inde

x

police,6,25,28,32,45,47,48,57,66,109(see alsoAustralianFederalPolice)

coralreefprotection,65,128Corio Bay(Customsvessel),69,70CorporateCommunication,120corporategovernance,98–105corporateplanning,98,104–105corporatepriorities,9–10,104,105,106,126,131CorporateResearchEnvironment(CRE),120corporateresourcemanagement,98,117–123corporatestatistics,120CorporateSupportTeam,118CorrectionalServices,32correctionstoannualreport2003–04,225corruptionprevention,21,49,101costrecovery,75,89CouncilofAustralianGovernments,24counterterrorismmeasures,9,24–25,28,31,36,51,

62,129CPTGlobal,122crewmovementfacilitation,29,51crewsseealsopassengersandcrewscrystallinemethamphetamine,44,45culturalawarenesstraining,111,129Customs Administration Act 1985,6Customs Amendment Act 2004,24CustomsConnectFacility(CCF),76,119CustomsFrameworkforLearningandDevelopment

2005–07,110,136CustomsHouse,Sydney,123,124Customshousesandoffices,98–99,103,124,217CustomsInformationandSupportCentre,124–125CustomsInternationalExecutiveManagement

Program,104CustomsITStrategicPlan2005–10,119CustomsLegalUnit,98Customs Legislation Amendment and Repeal

(International Trade Modernisation) Act 2001,75,83,89

CustomsNationalConsultativeCommittee,98,100,136,216

CustomsNationalEnforcementTrainingCentre,33CustomsSecurityCommittee,100CustomsTelecommunicationsServicesAgreement,122Customs,Immigration,QuarantineandTransport

Committee(CIQT),100

D

Dash8electronicsurveillanceaircraft,40,60datamanagement,120

databases,42,111DauanIsland,62,137,135declarationvalidationexaminations,83DefenceImageryandGeospacialOrganisation,61DefenceScienceandTechnologyOrganisation,54,61DepartmentofAgriculture,FisheriesandForestry,

85,86,101,191DepartmentofCommunication,Information

TechnologyandtheArts,24DepartmentofDefence,14,18,19,58–64,66DepartmentofEmploymentandWorkplace

Relations,127DepartmentofFinanceandAdministration Review,2,17,57,119,148DepartmentofFinanceandAdministration(DoFA),

117,121,137DepartmentofForeignAffairsandTrade(DFAT),14,

54,64,85,88,92,104,140DepartmentofHealthandAgeing,18,19DepartmentofImmigrationandMulticulturaland

IndigenousAffairs(DIMIA),6,14,18,19,52,54,56,61,64,66,99,104,109

DepartmentofIndustry,TourismandResources(DITR),80,81,85,86,88

DepartmentofthePrimeMinisterandCabinet,24,62,117,141

DepartmentoftheEnvironmentandHeritage,18,19DepartmentoftheTreasury,88,89DepartmentofTransportandRegionalServices

(DOTARS),6,28,29,38,81,101,104,109detectionandinvestigation,38–50detectionequipment,21,36DetectorDogUnit/program/teams,5,6,9,21,31,

32,50,55,103,109dieselfuel128,142DirectorofPublicProsecutions,49disability,110see alsoCommonwealthDisability

Strategydiscretionarygrants,122diseaseandpestprevention,20,35,66,67,128documentsavailableunderFreedomof

Information,216dogs importationofdangerousdogbreeds,24 see alsoDetectorDogUnit/program/teamsdopinginsport,24,46see alsoperformanceand

imageenhancingdrugsdrawbacks,15,74drugs commercialquantitieslegislation,24 controlconventions,international,47


detectionandseizures,4,6,14,15,21,22,24,25,30,34,38–47,49,50103,121,129,130

statistics,4,39–44 research,46dutyfreeconcessions,10,73,89,124 see also

TouristRefundSchemedutyrecovery,82–83

E

e-businessprojects,76,77eBay,30Eberle,142,143economicimpact,130economicindicators,136ecstasyseeMDMAEDSAustralia,117,119,122ElectionProjectTeam,141emergingtechnologies,18,29,31,35–37,54,61employeemisconduct,114–115employeesseestaffenablingoutputs,97–145energyuseandmanagement,126–133enforcementoperations,31,33,51,57,98Enniskaproject,30Environment–monitoringandprotection,65,66,

126–129,131–133EnvironmentalManagementSystem,126,131ePassports,54equityanddiversitygroups,110,129ErnstandYoung,17,57evasionofCustomsduty,50,73exciseduties,19,88,142 concessions,73exclusiveeconomiczones,58,59,60,61,62,67,

70,71ExecutiveGroup,98,100executiveremuneration,112,192explosivesdetection,31,32exportssee alsoimportsandexportscomponentofICS,76–77facilitationscheme,143transactions,77,83externalconsultativemechanisms,100–101externalscrutiny,139–145

F

facerecognitiontechnologyseeSmartgatefacilitationofgoods,output1,21–50


facilitationofpeoplemovement,output2,51–57FederalCourtappealsanddecisions,84,85,91,

95,142–143,219femalestaffstatistics,110,112,135Fiji memorandumofunderstanding,102finance equityinjectionoffunds,17 outcomeandoutputs,16–17FinancialActionTaskForce-AsiaPacificGroup

(FATF-APG),49financialhealthreview,2,17,57,116,148financialmanagement,117financialperformance,16–17,148financialreportingstandards,122,123,148,171–174financialstatements,147–212firearms,6,22,23,26FirearmsPolicyWorkingGroup,26firstportboardingseeboardingofcommercial

shippingfishimportsandexports,18fishing,illegal,14,18,64,65,66–67,71,120,128flightandpassengerinformation,54–55floraandfaunasmuggling,49,125,126footandmouthdisease,20foreignfishingvessels,59,66,67,68,128forensics,36FrameworkofStandardsforSecuringtheSupply

ChainandFacilitatingTrade,3,104France surveillancetreatyinSouthernOcean,61,71fraud controlmeasures,49,84,105,144 employeemisconduct,114–115 importfraud,73 revenuefraud,84freetradeagreements,30,85,120,148freedomofinformation(FOI),139,216–217 documents,216 requestsreceived,139full-timestaff,108,134functionsandpowers,6,216functions,changesto,7

G

GatekeeperStrategyassessment,119GlobalReportingInitiative economicindicators,137–138 environmentalindicators,131–133 socialindicators,133–137

Index ��

Inde

x

globaltradeframework,81goodssee alsoprohibitedgoods,restrictedgoods importandexport,output1,21–50 processingofgoodsofpassengersandcrew,73goodsandservicestax(GST),73,74,81,82,88–

90,89,154graduatetraineeprograms,106,110,112,113,122,133GreatBarrierReefMarineParkAuthority,61,64,65greenhousegasemissions,133grievanceprocedures,3

H

handguns,26 see alsofirearmsharassmentreporting,110,135HarmonizedSystemCommittee,88hazardoussubstances,18,19,20,24,31,129,131HeadsofCommonwealthOperationalLaw

EnforcementAgencies(HOCOLEA),101HealthServicesAustralia,31HeardandMcDonaldIslandExclusiveEconomicZone,

61,71helicopters,5,29,125heroindetectionandseizures,15,38–41,45Hervey Bay(Customsvessel),69HighFrequencySurfaceWaveRadar(HFSWR),58,

59,61–62,128,137high-techcrime,37HMABlaze,218Holden,143Holdfast Bay(Customsvessel),69Hotline,120,13HouseofRepresentativesStandingCommitteeon

LegalandConstitutionalAffairs,145humanresourcepolicies,98,106–116humanresourcesmanagement,106–116

I

IBM,122identityfraud,21,47Illicit Drug Data Report 2003–2004,46imageandindiciaprotectionforCommonwealth

Games,24,57imports componentofICS,73,75,80–81,90,124 processingcharges,74 importsandexports,Outputs1,4,5 compliance,81–84 riskidentification,30

statistics,5,74IncreasedQuarantineInterventionInitiative,20IndigenousLandUseAgreements,62,137indigenousstaff,108,110,129,133 inseniormanagement,133 recruitment,108,110,133Indonesia detectordogs,31,32 fishermenrescued,69,130 OperationClearwater,66 partnershipwithAustralia,102,103,104 tradediscussions,92,102industrialrelations,111industry AccreditedClientProgram,75–76,90 consultations,14,38,75–76,92,102 drawbacks,15,74,143 onICS,75–76,78,80 schemesandtrademeasures,6,14,15,83 stakeholders,6,27,76,80,91,92,98 supportschemes,81,82information management,99,100,117–121 policy,117–121 technology,4,80,99,117–121(see alsoIT)InformationandOfficeTechnologydivision,99,117–

121,116InformationManagementProjectCommittee,100InformationManagementStrategyCommittee,100,119InformationServicesAgreement,117InfringementNoticeScheme,83InglewoodOliveProcessorsLimited,95,142–143innovationandtechnologypriority,9IntegratedCargoSteeringcommittee,100IntegratedCargoSystem(ICS),25,30,31,73,76–

81,98,117,122,124 exportsrelease,76–79,118,122 importscomponent,76,80–81,89,115,122integratedsolutions,120intellectualproperty,24,57,129IntellectualPropertyAustralia,24intelligence overseasintelligencesharing,102,104 sharedintelligencegathering,19–20,45,46,51,

55,101 totargetillegalpassengermovements,51 totargetrisksincargo,2,30–31,33INTERCEPTsystem,21,29,50IntergovernmentalCommitteeonDrugs(IGCD),46InternalAffairs,99,114–115internalaudit,104


internationalcommittees participationofAustralianCustoms,28,88,91,

102,104,119internationalconventions,24,28,47,49,70,71internationalcooperation,3,9,31,47,72,102–104InternationalMaritimeOrganization,28InternationalNarcoticsControlBoardoftheUnited

Nations,46,47Internet Customssite,49,89,94,100,122,124,217,221interpreterserviceaccess,129Intranet,100,214investigations,38–50,84 ofdumpingallegations,93–94Islamicculturetraining,110ITstrategicplanning,119

J

Jakartaoffice,98,103,107JointCommitteeofPublicAccountsandAudit,144JointDeclarationonComprehensivePartnership

betweenAustraliaandIndonesia,103JointOffshoreProtectionCommand,3,7,14,58,

62–63,72JointStandingCommitteeonForeignAffairs,

DefenceandTrade,144judicialdecisionsanddecisionsofadministrative

tribunals,142–143

K

Kaye,ProfessorStuart studyoflegalauthorityconcerningcounter

terrorismoffshore,63keyfacts,5keyobjectivesandachievements Output1,21–23 Output2,51–52 Output3,58–59 Output4,73–74 Output5,91–92KimberleyIslands,128Korea,92 anti-dumpingadministration,93–95

L

legalservices,98,122


legislation bordersecuritylegislation,55 CommonwealthlegislationunderwhichCustoms

haspowers,7 enablinglegislation,6 intellectualpropertylegislation,24 OffshorePowersLegislationStudyteam,63 passengerinformationlegislation,57 PassengerMovementCharge,89 proceedsofcrimelegislation,18,49 prohibitedgoodslegislation,24,25,26 SeriousDrugOffenceslegislation(proposed),24,46 tarifflegislation,88 trademodernisationlegislation,75,80,83letteroftransmittal,iiiLGElectronics,95licences forcargostoragefacilities,25 forsecuritysensitiveammoniumnitrate,25licensing,25,73,120litigation,22,48,49,50,66, AdministrativeAppealsTribunalcases,219 FederalCourtappealsanddecisions,94,138,142–

143,219luxurycartax,73,87

M

Mackay(Qld)port,29mailscreening,18,36,39,41–42,48,73,Malaysiandelegation,89malestaffstatistics,107,112,134Malika Holdings Pty v Stretton(Malika),83,142manageddeliveries,50maps,37,66,99Marcos Dias(motorvessel),45marinespeciesprotection,65,131–133see also

OperationClearwaterandSouthernOceanMaritimePatrolandResponse

maritimesecurity,Output3,2,14,28–30,36–37 identificationsystem,9,63,64,72maritimesurveillance,3,4,5,6,7,58–72see also

AustralianCustomsvessels,civilmaritimesurveillance,Coastwatch

marketresearchandadvertising,122MDMAdetectionandseizures,15,38–41,44,45medicalemergencies,71,130Melbourne2006CommonwealthGames

Corporation,24,57

Index ��

Inde

x

MelbourneAirmailTransitCentre,36MelbourneAirport,54,57MemorandumsofUnderstanding,18,19,119metaldetectors,36methamphetamine,44–45MinisterforDefence,63MinisterforFinance,33,117MinisterforJusticeandCustoms,6,35,50,63,76,

94,102,117,140,216MinisterialandParliamentaryteam,141MinisterialCouncilonDrugStrategy,47ministerialrepresentations,140moneylaundering,21,48,49,50MontebelloIslands,128motorvehicleimportdutycases,143

N

narcoticsseedrugsNationalAirportPlanningInterface,51NationalCivilMaritimeSurveillanceandResponse

Program,58,67NationalClandestineLaboratoryDatabase,42NationalCustomsBrokersLicensingAdvisory

Committee,25NationalDrugandAlcoholResearchCentre,45NationalDrugLawEnforcementResearchFund,45NationalDrugStrategy,40,46NationalIndigenousCadetshipProject,110,133NationalIndustrialChemicalNotificationand

AssessmentScheme(NICNAS)Database,42NationalMarineUnit,5,58,67–69,72,128–129NationalPassengerProcessingCommittee,53,98NationalPrioritiesCommittee,100NationalResourceAssessmentprocess,117NationalStrategicWorkforcePlan,106neutronscanner,17,21,38,50NewZealand participationinIGCD,46 protectionofSouthernOceanfisheries,71 tradeagreement,85NorthWestShelf,62,64NorthernAustraliaQuarantinestrategy,67NorthernTerritoryHealthDepartment,66NorthernTerritoryPolice,66

O

occupationalhealthandsafety,116,122,130,131,134,138,214–215

OceaniaCustomsOrganisation,102,104Oceanic Viking(vessel),37,70–72,130offences,49–50,83 drugoffences,24,41,46 fraud,73,74,84 illegalfishing,66,70 import/exportoffences,21,24,50,83 prohibitedgoods,49–50 terrorism,28officelocations,99,backinsidecoverOfficeofBusinessSystems,98OfficeofTransportSecurity,28OffshorePowersLegislationStudyTeam,63oilandgasinstallations,protectionof,1,3,62,

63–64,70,130oliveoilsubsidies,142–143Ombudsman,122,138,142onlinefacilities accesstoINTERCEPT,29 CustomsInteractive,77 onlinetrading,30 trainingprograms,31,83,113,115,129,134,212 useinhumanresourcesmanagement,106113,115OpalGroup,47OperationClearwater,65–67,128OperationCranberry,58,60OperationRelexII,18,58,60OperationalReadinessUnit,33OperationsandProgramAdvisoryCommittee,64OrganisationforEconomicCooperationand

Development(OECD),49organisationalarrangements,98organisationalstructure,98–99,102Orionaircraft,59,60OutcomeandOutputstructure,8,104Outcomes/Outputs,14–96OuterEdge05,28Output1,goodsimportandexport,9–10,21–50Output2,peoplemovement,9–10,51–57Output3,maritimesurveillance,9,58–72Output4,revenuecollection,9–10,73–90Output5,anti-dumping,9–10,91–96outputsfunding,16–17outsourcing,98,117,119,122–123overseasbornstaff,110 inseniormanagement,110,135overseasofficesandstaff,98,102,103,107,129overviewofCustoms,6–11overviewoffinancialstatements,148ozonedepletingsubstances,18,19


P

P&OMaritimeServicePtyLtd,70,72PacificProtector06,28palletx-raysystem,5,33,45PapuaNewGuinea,102,104,125,130 capacitybuilding,102,104,130 consultationandcooperation,102,125 MemorandumofUnderstanding,102Parks Holdingstradingas Gladstone Chemicals v

CEO of Customs,84,142Parliamentarycommitteereports,144–145part-timestaffstatistics,107,134PassengerAnalysisUnit,55passengerenforcementoperations,51,57passengerfacilitation,Output2,15,52–58,75,PassengerMovementCharge,15,73,89passengers,14,52,89–90see alsoairpassengers,

seapassengers,travellers increaseinnumbers,51,52,53 processingrates,52–53 screening,2,51,54,56passengersandcrew dutyfreeconcessions,89,125 goodsprocessing,73 processing,Output2,51–57,89–90patrolvessels,6,45,59,66,67see alsoAustralian

Customsvesselspeoplesmuggling,18–19,65,103PeoplesRepublicofChina,41,143 AustralianCustomsofficeinBeijing,98,102–104 detectordogs,31,32 freetradeagreements,85,90 investigationofexportsfrom,92,93,94,95 recognisedasamarketeconomy,9performanceandimageenhancingdrugs(PIEDs),

25,46performanceassessmentandfeedback(PAF),112–113performanceeffectiveness Outcome,14 forsustainability,126–137 Output1,22–23 Output2,52–58 Output3,59–72 Output4,73–90 Output5,91–96 staffmanagement,112–113performancepay,112,113permitstoimportgoods,139personnelsecurityclearances,106,115–116,114


planning corporateplanning,98,104–105 ITstrategicplanning,119 workforce,106PlanningandInternationalbranch,98–99PlanningandPerformanceFramework,101,104,122PlasticsandChemicalsIndustriesAssociation

NationalCodeofPractice,46police,6,25,28,32,45,47,48,57,66,109see

alsoAustralianFederalPolicepollutants,65,129pornography,21,24,49PortIntelligenceUnit,30portfolio,6PortfolioAdditionalEstimatesStatements,17,148PortfolioBudgetStatements,15,17,22,52,58,59,

74,91,104ports,36–37 boardingofvessels,14,21,29,30,35 security,21,29,35,36–37,103postalitemsseemailpre-arrivalassessmentsofpassengers,51,54–56precursordrugchemicals,38–47,48,49,50PrecursorWorkingGroupseeNationalStrategyto

PreventtheDiversionofPrecursorChemicalsintoIllicitDrugManufacture

PricewaterhouseCoopers,122PrimeMinister’sAwardforExcellence,31priorities corporatepriorities2004–05,9–10 corporateprioritiesinOutputs,21,51,58,73,

91–92privacymatters,139proceedsofcrime,48,49,50proclaimedports(map),37procurement,117,122,131profilingandanalysistools,51prohibitedgoods, detection,15,18,21,23,30,49,128 legislationchanges,24ProjectEnniska,30ProjectPRISM,44ProliferationSecurityInitiative,28prosecutionsseelitigationProtecting our Borderspolicy,14pseudoephedrineseizures,31publicrelations,121 opendaysforAustralianCustomsvessels,69publications,120,129purchasing,117,138

Index ��1

Inde

x

Q

QantascrewsissuedwithePassports,54QSP(financialmanagementsystem),117quarantine,9,18,67see alsoAQIS,Increased

QuarantineInterventionqueuingaids,51,53

R

radar,58,59,60,61–62,137radiationdetectors,21,36radiocommunications,37recruitment,98,101,106,122,129,129recycling,126,131red/greenexitsatairports,51,53RegionalDirectors,11,99,100remoteareas127, communityawarenessprograms,120rescues,59,64,65,127,130restrictedgoods importsandexports,8,10,16,18,19,20,21,

30,43,49,58,83,129retentionrateofstaff,106revenue collectiononbehalfofotheragencies,75 collection,output,6,10,14,15,18,73–90, fraud,84 fromcomplianceactivity,73,74,75,82,130reviewssee alsoAustralianNationalAuditOffice,

TradeMeasuresReviewOfficer ofanti-dumpingmeasures,92,94,95 ofaviationsecurity,56,144 ofdutyfreeconcessions,89 offinancialhealth,2,17,57,117,148 oftheworkforce,106riskassessment,30,61 ofcargo,26,30,80 ofpassengers,51riskmanagement,98,105roleandfunctions,6RoyalAustralianNavy,63,66RoyalPapuaNewGuineaConstabulary,125rulesoforigin[fortrade],85,86,90

S

safeguardgoods,85SAGEMAustralasia,54salaries,112,113,115,165 executiveremuneration,191

non-Seniorexecutiveservice,102 performancepay,112,113 SeniorExecutiveService,112Samurai04,28satellites incommunications,37,70 surveillance,59,61screeningsee alsocontainerexamination

facilities,x-rays cargo,21,30,33,38,120 forbiologicalandchemicalsubstances,36 mail,20,36,48 pre-screeningofpassengers,51,54–55seacargo reporting,26 statistics,14,22seacargoinspections,14,26,33see also

containerexaminationfacilitiesseapassengers,43,57,109searchandrescueoperations,64,65,69,130securitysee alsoaviationsecurity,maritimesecurity clearancesforstaff,115 communications,70,115 portssecurity,21,29,36–37,103 supplychainsecurity,3,4,27,76,81,99,102,131SecurityEnhancementProject,115securitymeasures,28–29,55,130Senatecommittees,75,143–144SeniorExecutiveService,11,98,112,135SeriousDrugOffenceslegislation,46ships boardingof,14,21,29–30,35,68,70,72,106 drugsdetected,39,45 offshoreinterception,62,63 passengersprocessing,106 processing,51SmallSystemsDevelopmentUnit,119SmartGate,51,54,140,218smuggling ofpeopleorgoods,31,46,64–65,103 ofwildlife,120,127,128socialimpact,129–130socialindicators,134–137socialjusticeandequity,76,110,111,121,124,

129–130SolomonIslands capacitybuilding,100,102,104,107,130SouthAfrica SouthernOceancooperation,71 visitingdelegation,102


SouthernOcean cooperativesurveillancetreatywithFrance,61,71 patroloperations,14,19,20,58,70–72SouthernOceanMaritimePatrolandResponse,

70–71,72,106,107,115spectrometers,36staff,3,106–116,134–138 classification,108,112 equityanddiversity,110,134,136 misconduct,114–115 secondmentsandexchanges,37,104,109 statistics,5,6,16,17,107–108,110,112,113,

134,191 traininganddevelopment,110–111,135 turnoverandretention,106,134 workforcecharacteristics,10StaffCouncil,106,134Staffingbranch,98,99stakeholders cooperationwith,27,49,76,80,90,92,102,136 international,102–104StandardisedDataSet,14,21,27standards accountingandfinancialreportingstandards,

120,122,148,169,191 AustralianGovernmentInvestigationStandards,

49,84 informationstandards,119–120 riskmanagementstandards,105 securityforthesupplychain,3,4,27,81,102statutoryfunctionsandpowers,6steelimportmonitoring,91–92stevedores,35strategicgoodslist,20supplychainsecurity,3,4,27,76,81,100,102,

104,119,131surveillance civilmaritimesurveillanceandresponse,output,

3,4,5,6,7,18,58–72,98 closedcircuittelevision,18,21,35,36,37,55,57 flights,15,21,45(see alsoCoastwatch) SouthernOcean,14,37,59,70–72.1–4,115SurveillanceInformationManagementSystem,60suspectillegalentryvessels,59,64,65,68suspectunlawfulnon-citizens,59,64,65sustainability,4,98,125–138SydneyAirport,13,55,122SydneyCustomsHouse,123,124SydneyGatewayFacility,36SydneyOlympics2000,57


T

Taiwantrade,95,120TAPINsystem,73,90TARCONsystem,73,90tariffclassification,73,85,86TariffConcessionScheme,15,86–88tariffconcessions,73,86–88tarifflegislation,88,TaskforceonOffshoreMaritimeSecurity,58,62,64Tasmania borderprotection,32,109TasmaniaPolice,109taxes,18,73,75,88,130,146see alsoexcisedutiestechnology,6,9,35–38,45,50,135see also

informationsystems,onlinetrainingprograms authenticationtechnologies,119 cargomanagementtechnology,14,35–38,48,

75–79,(see alsoIntegratedCargoSystem) informationtechnology,80,105,118,119 passengerscreeningtechnology,51,54,57telecommunications,119,122Telstra,119,122tendersforaerialsurveillanceofmaritimezones,62terrorism,28,51,103,see alsocounter-terrorismThailand-AustraliaFreeTradeAgreement,73,85TimorSea,64,tobaccoimport detections,34,84 tobaccoleafcontrols,24Tonga capacitybuilding,104TorresStrait,125, highfrequencysurfacewaveradar,58,59,62,

128,136 IndigenousLandUseAgreements,62,136 maritimesurveillance,58,62,128 searchandrescue,130TorresStraitTreaty(1978),125Tough on Drugs in Sport Strategy,46tourismindustry,52,89,TouristRefundScheme(TRS),18,73,75,88,89,

90trade,27,85–86see alsoimportsandexports facilitation,6,102,103,130,(see alsoOutputs

1,4,and5) modernisationlegislation,75,80,83,90TARCON,73,89TradeMeasuresReviewOfficer(TMRO),92,94–95,

141,142

Index ��

Inde

x

traineesandcadets,107,108,110,129,133traininganddevelopment,33,86,100,104,105,

106,110–111,123,224 counterterrorismawareness,28,36,51,111 deceptionanddetectiontraining,51 enforcementtraining,31 inaircraftsearch,55 inborderprotection,107 Islamicculturaltraining,111 ofCustomsstaffbyotheragencies,19,20 ofdetectordogs,31–32,50 ofIndonesianCustomsofficers,103–104 ofNewZealandCustomsofficers,33 ofstaffforCommonwealthGames,57 operationalcommandtraining,31,33 passengerenforcementoperations,51 precursortrainingproject,42 rulesoforigin,75 securityawarenesstraining,115 SouthernOceans,70travelmanagement,117travellers facilitationof,12,18,51–54, identityverification,54 riskassessment,6,30,51,55

U

UnitedArabEmirates delegationstoAustralia,89,102 freetradeagreements,85,89UnitedKingdom cooperationinSouthernOcean,71UnitedNations,46–47 CentreforTradeFacilitationandElectronic

Business,120 InternationalNarcoticsControlBoard,46,47 SafetyofLifeatSeaconvention,71UnitedStatesDepartmentofHomelandSecurity,

32,37UnitedStatesFreeTradeAgreement,73,85,116unmannedaerialvehicles,62,72

V

valuationadviceservice,85values,98,113–114,129vehiclefleetenergyuse,126,131–132vesselssee alsoAustralianCustomsvessels Bow de Silver,41

illegal,unregulatedandunreported,59 Marcos Dias,41 movements,21,29,61,64 Oceanic Viking,37,70–72,130VictoriaPolice,57visionstatement,6

W

Washingtonoffice,98waterandwasteproductmanagement,126waterfrontsurveillance,21,35–37weaponssee alsofirearms certificationoffirearmsdealersforimported

handguns,26 detection,20,21,23,31–32 forCustomsVessels,70,72 importandexportcontrols,26weaponsofmassdestruction,28Wheeler,SirJohn reviewofairportcrime,securityandlaw

enforcement,56Whole-of-governmentapproach onidentityfraud,47 toaviationsecurity,57 toCoastwatch,58,64–65,67 toprocessingpassengers,53WideAreaNetwork,119,122wildlifedetection,21,23,120,129wineequalisationtax,7,73,88wirelessconnectiontoCustomssystems,50womenexecutives,11see alsofemalestaffworkforceplanning,106,135,143workplacediversity,110,129,134–136WorldCustomsOrganization,3,81,85,102,119–120WorldTradeOrganization,10,91–92,130

X

x-raytechnology,5–6,33–36,81,109,136,167

Y

yachtrescue,Queensland,69,130

�� AustralianCustomsServiceAnnualReport2004–05�� AustralianCustomsServiceAnnualReport2004–05