3rd July 2006

In the attached Media Release of 1 June 2006 the Chief Executive Officer (CEO), Australian Customs Service (Customs), Mr Michael Carmody outlined changes at Patrick and P&O terminals in relation to storage arrangements for containers that are returned from the Customs Examination Facility (CEF) to stevedores where less than twenty-four (24) hours free storage time remains in relation to the container.  The change being an additional one (1) day free storage availability.   The Customs Brokers & Forwarders Council of Australia Inc. (CBFCA) commends the change in practice between Customs and the stevedores.  The CBFCA has for over four (4) years been pressuring Customs for a change in the contractual arrangements between Customs and stevedore service providers to give a more pragmatic and business outcome to issues which have been commented to members by way of National News Flashes and Web Communicators since 2002.   In its 7 February 2002 letter to the Minister for Justice and Customs, the CBFCA made comment as to cost allocation and manner and form for contractual arrangements.  These referenced the determination of key performance indicators as well as arranging appropriate contracts with stevedores to meet both regulatory and business requirements (in that the contracts for both Patrick and P&O terminals over a three (3) year period for CEF transport services, unpack and repack Australia wide were in excess of $15 million each.   In terms of seeking outcomes from the respective contracts with stevedores, the CBFCA stated to the Minister:   '…the most critical aspect of the strategy will be ensuring that the existing industry processes for container releases and delivery are not effected for if there are any significant variations to such processes additional costs and delivery constraints will be imposed on industry over and above any ACS costs.  It is paramount that processes be agreed with industry so as to ameliorate the impact of ACS intervention.'   Suffice to say that this invitation to Customs was not acted upon and for over four (4) years industry has been required to work within the constraints of the CEF and also absorb additional costs.   It is indeed fortunate at the time of the renegotiation of the contracts between the parties that Customs has taken on board issues which have been raised with Customs since 2002 as well as addressing the recommendations from the Australian National Audit Office No. Performance Audit 16-2004-05 Container Examination Facilities Australian Customs Service.   The CBFCA endorses the comment:   'This is a win for the importing industry.  It shows that Customs and stevedores are listening to industry and acting on their concerns.'   In terms of on going improvements to the CEF arrangements, the CBFCA wrote to Customs on 5 April 2006 setting out certain issues which it perceived still required the attention of Customs in relation to the CEF process improvement.  Unfortunately to date no response has been received from Customs as to the issues referenced.  (Refer attachment)   As to the Australian Customs Notice (ACN) 2006/23 particularly as it relates to damages it is noted within the context of the ACN:   'Customs has recently reviewed its policy in regards to damages.  A copy of the policy can be downloaded from the Customs internet site at  www.customs.gov.au.'   The CBFCA in searching the Website has not been able to find the policy as referenced and requests to Customs where such information exists has failed to elicit a response.  It appears that deficiencies still exist in terms of documentary explanation of the CEF as well as appropriate response on the issues raised.   Perhaps in relation to these issues industry looks forward to the comments by the CEO that:   '… Customs …are listening to industry and acting on their concerns.'   Full details in relation to the arrangements are available on the Customs Website www.customs.gov.au or click on the links below.   ACN 2006/23 Media Release   CBFCA - National

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