Annex: Cost Recovery Arrangements and Revenue Collection

​1. Status

  1. This Annex is made in accordance with clause 10 of the Memorandum of Understanding (Memorandum) between the Australian Customs and Border Protection Service (Customs and Border Protection) and the Department of Agriculture, Fisheries and Forestry (DAFF).
    1. not intending to create any legally binding obligations; and
    2. an opportunity to ensure that there is a nationally consistent approach to their working relationship on specific matters outlined in this Annex.
  2. The Parties view this Annex as:

2. Objectives

  1. This Annex sets out the governing principles for both agencies to:
    1. facilitate a collaborative approach between the two agencies for cost recovery arrangements and the collection of revenue;
    2. promote cooperative arrangements and utilise existing systems and procedures in the collection of fees and charges; and
    3. recognise the undertakings and responsibilities of each Party in regards to cost recovery arrangements and collection of revenue.

3. Key Principles

  1. The Memorandum and this Annex provide the basis for the collaborative working relationship between the two agencies in relation to cost recovery arrangements and revenue collection.
    1. the use of resources is maximised and duplication is minimised to achieve whole of government outcomes, including a high level of customer service;
    2. efforts will focus on further strengthening collaborative practices already in place and identifying new opportunities for collaboration in relation to cost recovery arrangements and revenue collection; and
    3. joint approaches to revenue collection are transparent, administratively efficient, streamlined, consistent and support government policy objectives.
  2. Customs and Border Protection and DAFF will abide by the following principles:

4. Operating Principles

  1. Existing agreed operational arrangements are in place that outline at the operational level how each agency will jointly conduct activities. Both agencies will continue their relationship as prescribed in existing arrangements in relation to cost recovery arrangements and revenue collection unless otherwise specified.
  2. Existing arrangements that are in place detail how the respective agencies will maintain appropriate compliance with relevant legislative requirements.
  3. Customs and Border Protection will continue to collect fees and charges on DAFF’s behalf, remit and report them to DAFF in accordance with agreed arrangements and Commonwealth financial guidelines.
  4. Customs and Border Protection, in consultation with DAFF, will undertake revenue collection in a way which enables the most efficient, streamlined and consistent collection practices in line with other revenue collection undertaken by the agency.
  5. Customs and Border Protection will transfer any collected revenue to DAFF, including supporting documentation, within a timeframe and format agreed between the agencies. This activity will be conducted under the existing arrangements unless otherwise specified.
  6. The handling of refunds, goods and services tax, and charges for Customs and Border Protection services will be conducted under the existing arrangements unless otherwise specified, taking into account the identification of new opportunities for collaboration, in relation to cost recovery arrangements and revenue collection.

5. Access to documents and information

  1. Each agency will make available to each other documentation and information held by either agency which is essential for the proper management of the border security and biosecurity functions. This includes material which may indicate possible breaches of relevant legislation. All information exchanged between the agencies will be provided in accordance with Commonwealth legislation and requirements including the Privacy Act 1988 and Section 16 of the Customs Administration Act 1985 and will only be used for the purpose it was given or a related purpose.
  2. The agencies understand that they are not to disclose to any other party confidential information provided by the other Party in conjunction with this Annex, except where this is required or authorised by law or is required as part of the parliamentary process. Where possible, the disclosing agency will notify the other agency before doing so.
  3. Each agency will ensure their officers hold the required level of security clearance appropriate to access or receive the other’s information. The agencies will consult with each other and agree on the level of security clearance required for accessing or receiving information as well as for officers to attend briefings, operations planning and gain access to facilities as required for border and biosecurity activities.
  4. Each agency will ensure that all necessary officers hold appropriate delegations to allow for the collection and handling of public monies in accordance with the Financial Management and Accountability Act 1997 and other legislation where appropriate.

6. Governance and Reporting

  1. The Customs - DAFF Strategic Working Group (SWG) will oversight the implementation of the obligations under this Annex and all joint cost recovery and revenue collection arrangements.
  2. Proposals for joint cost recovery arrangements and revenue collection with implications across both agencies will be submitted to the SWG for endorsement.
  3. Customs and Border Protection will continue to provide DAFF with collected revenue reports.
  4. For the purposes of ensuring that each agency can effectively carry out their respective roles, Customs and Border Protection and DAFF will engage in regular meetings of senior officials responsible for oversight of the cost recovery arrangements and revenue collection. These meetings will set and monitor the strategic direction and priorities for inter-agency activity.
  5. Reports from meetings between joint officials, as described above, will be provided to the SWG. This will include progress reports, proposals for change and outcomes of changes to joint arrangements in relation to the cost recovery and revenue collection arrangements.

7. Costs

  1. In accordance with clause 9 of the Memorandum, the Parties agree that each agency will bear its own costs in fulfilling their commitments under this Annex except where a prior written agreement has been reached by both Parties as to their sharing or apportionment of costs.

8. Procedural Material

  1. The agencies may either jointly or independently develop Procedural Material consistent with this Annex in accordance with clause 10 of the Memorandum.
  2. Any joint Procedural Material must be consistent with the principles outlined in this Annex and the overarching Memorandum.
  3. Where the creation or modification of any Procedural Material may affect the other Party, Customs and Border Protection and DAFF will consult with each other and discuss any concerns to allow for the efficient operation of both agencies.

9. Nominated Contacts

  1. Each Party may raise matters relevant to cost recovery and revenue collection with the following nominated contacts:
    1. Customs and Border Protection –
      Deputy Chief Finance Officer
      Financial Services Branch
      Ph: +61 2 6275 6162
    2. DAFF –
      Assistant Secretary,
      Internal Budget & Cost Recovery Branch
      DAFF Switchboard Ph: +61 2 6272 3933

10. Review of Annex

  1. The agencies will review the operation of this Annex three (3) years after commencement or at such other time as mutually determined by the agencies to assess the suitability of arrangements under this Annex.

11. Commencement

  1. This Annex commences, unless otherwise specified, on:
    1. the date it is signed by both Parties; or
    2. the date the last Party signs, where the Parties do not sign the Annex on the same day.

12. Definitions

  1. Unless the contrary intention appears, a term used in this Annex has the meaning shown in the table below:
  2. Term Definition
    Annex means this Annex made in accordance with the Memorandum;
    Commonwealth means the Commonwealth of Australia;
    Memorandum means the Memorandum of Understanding on the collaborative working relationship between the Australian Customs and Border Protection Service and the Department of Agriculture, Fisheries and Forestry signed on 21 July 2011; and
    Procedural Material includes Standard Operating Procedures, Instructions and Guidelines or Business Practice Statements or any procedural material made in accordance with this Memorandum.

13. Modification and Termination

  1. This Annex can be modified or terminated by a written agreement signed by the Chief Executive Officer of Customs and Border Protection and the Secretary of DAFF or their delegates.
    1. takes effect from the date the last Party signs the modification or termination; and
    2. has no effect unless endorsed in accordance with this clause.
  2. Unless otherwise specified, a modification or termination:

14. Signatures

SIGNED at Canberra
for and on behalf of the
Australian Customs and Border Protection Service by
Mr Steven Groves
Chief Finance Officer

SIGNED at Canberra
for and on behalf of the
Department of Agriculture, Fisheries and Forestry by
Mr Darren Schaeffer
Chief Finance Officer on

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Note:

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  • Versions “0” are draft versions.
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  • Versions “2” are versions for publishing.
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