Purpose
To advise of the cessation of the remission program for the Non-Prescribed Goods Export Cost Recovery Arrangement (the arrangement) from 1 July 2017. Remissions currently applied to cost recovered levies for Electronic and Manual Certificates will cease from
1 July 2017.
Scope
This notice applies to:
- All exporters of Non-Prescribed Goods
Background
Fees and levies for the arrangement are set to recover the costs associated with the delivery of inspection, audit and certification services with respect to the export of Non-Prescribed Goods from Australia. The department maintains a Cost Recovery Reserve (CRR) for the arrangement to manage unanticipated changes in activity that cannot immediately be managed through expenditure alone. Departmental policy is to maintain a balance of between 0-5% of annual program expenditure.
Over recoveries may be managed through reduction in charges known as remissions. Remissions are subject to industry consultation and government approval, and may be implemented within existing legislation. This allows the department to adjust charges without a cost recovery review, which may require legislation and may take up to twelve months. When a remission is agreed, the legislated fees and levies do not change, a remission is applied to reduce the amount payable.
All remissions are temporary and are closely monitored to ensure ongoing affordability. Remissions may need to be adjusted if trade volumes and/or costs change unexpectedly. Any adjustments are subject to industry consultation, with an agreed lead time for industry to respond to a change in price.
Issues
The arrangement currently has a number of remissions in place which were implemented as part of the 2014-15 fee review and following consultation with industry. The remissions were designed to address the continuing accumulation of the CRR. Further information on the remissions program is available in the Food Exports Cost Recovery Implementation Statement (see references section below). The arrangement currently has remissions in place against the following charges:
- Electronic and Manual Certificates
Based on the 2016-17 demand for services and the current remissions, the CRR balance would be outside the department’s target balance of 0-5% in the 2017-18 financial year.
In order to maintain a balance in the Non-Prescribed Goods export CRR, the remissions on Electronic and Manual Certificates will be ceased from 1 July 2017. Table 1 provides a summary of the 2016-17 Remission Program showing the legislated rate, the remission rates and amount payable pre and post 1 July 2017.
Activity Stream | Unit of Charge | Type of Charge | Legislated Rate | 1 July 2016- 30 June 2017 | From 1 July 2017 | ||
|---|---|---|---|---|---|---|---|
Remission Rate | Amount Payable | Remission Rate | Amount Payable | ||||
Documentation and Certification | |||||||
General Export Certificate - Electronic | Document | Levy | $40.00 | $10.00 | $36.00 | – | $55.00 |
Fee | $15.00 | $9.00 | – | ||||
Certificate issued under an approved arrangement - Electronic | Document | Levy | $97.00 | $30.00 | $73.00 | – | $112.00 |
Fee | $15.00 | $9.00 | – | ||||
General Export Certificate – Manual | Document | Levy | $40.00 | $10.00 | $47.00 | – | $76.00 |
Fee | $36.00 | $19.00 | – | ||||
Export Certificate Issued Under Approved Arrangement - Manual | Document | Levy | $97.00 | $30.00 | $84.00 | – | $133.00 |
Impact
Exporters of Non-Prescribed Goods will be affected by the removal of the remission program. The removal of the remissions increase charges payable for Electronic and Manual Certificates, but does not impact the legislated rate.
Invoices will reflect the relevant rate for services to be provided from 1 July 2017.
References
Details of the fees and levies recoverable for the Non-Prescribed Goods export industry are published on the Department’s website:
Contacts
If you have any further questions regarding this adjustment to the remission program please email the Cost Recovery Operations team:
Phone: 1800 900 090
Email: Cost Recovery