Australian Customs and Border Protection Service
Australian Customs and Border Protection Service
Section 1: Agency overview and resources
1.1 Strategic direction statement
The Australian Customs and Border Protection Service (ACBPS) is responsible for protecting the safety, security and commercial interests of Australians through border protection designed to support legitimate trade and travel, and to ensure collection of border revenue and trade statistics.
Preserving Australia’s border integrity, one of the eight pillars in the National Security Strategy, begins well beyond Australia’s physical border and is fundamental to national security. The ACBPS’s contribution to maintaining the integrity of the border not only supports a key national security objective but also aids in achieving the objectives outlined in the Australia in the Asian century White Paper, including economic prosperity.
In recent years, the ACBPS’s business model has faced challenges in keeping pace with developments in the border environment. The ACBPS is now experiencing considerable pressure from drivers in the border environment and all indications are that these pressures will increase.
The most significant challenges at the border are the substantially increasing volumes of traffic across the border in terms of both passengers and cargo, the increasing complexity of travel routes, supply chains and criminality, as well as the ongoing threat to the ACBPS from criminal infiltration.
International air and sea passengers are projected to increase from around 34 million in 2013–14 to some 40 million by the final year of the forward estimates, while incoming air cargo is projected to increase by almost 125% over the same period. The increasing complexity in supply chains and travel routes is requiring more sophisticated methodologies to assess threats and risk at the border. The result is more pressure on the border, yet intervention times in which to prevent the illegal movement of people and goods remain limited.
The ACBPS continues to respond to the challenge of transnational criminal syndicates, which are increasing their sophistication, including adapting to older detection technologies and methods. The risk of infiltration and corruption remains high, with events during 2012–13 demonstrating the need for the agency to remain focused on such vulnerabilities.
The community’s expectations of better facilitation and increased border protection remain high. Economic imperatives mean that importers and exporters expect seamless border processing that meets world’s best practice. Security imperatives mean that the need to protect Australia from those attempting to breach the border will not lessen.
The ACBPS continues to position itself by developing and refining strategies to adapt to the emerging operating environment. The ACBPS will need to continue to operate within a tight fiscal environment for the foreseeable future, focusing on effective resource allocation, reprioritising existing funding, and developing innovative approaches to border management.
The ACBPS’s challenge is to remain proactive and responsive while addressing these challenges. To that end, the ACBPS is undertaking a major program of reform that will be a corporate priority in 2013–14. The program will proceed along three tracks of work to modernise the ACBPS’s business processes and systems (including automation and intelligence capability); establish a more agile and professional operating model; and harden the ACBPS against corruption by embedding integrity measures across the organisation.
To inform the reform program, the ACBPS is undergoing a period of intensive external review. An Australian Public Service Commission capability review will report on strengths and gaps in the ACBPS’s strategy, delivery and leadership capability and provide recommendations for the way forward. The independent Customs Reform Board, established by the Minister for Home Affairs and comprising three distinguished Australians, will also provide advice on areas of important reform.
These reforms will support the ACBPS’s strategy to deploy resources based on an intelligence-led, risk-based approach. The ACBPS has extensive intelligence holdings of international trade and passenger movements, and analytical techniques and tools that allow it to target its interventions to the highest risk areas. Underpinning these targeted interventions are assurance programs and campaigns to prevent, deter, detect and disrupt illicit activity. These approaches are proven and have resulted in an increase in the seizure of illegal items over recent years, including drugs and firearms.
The ACBPS is Australia’s lead border agency and drives cross-service collaboration through multi-service forums, including the Border Management Group. As well as leading the development of, and implementing, key border management initiatives, the Border Management Group will be the principal mechanism for engagement with partner agencies on the ACBPS reform program.
The collaborative effort does not end with Commonwealth agencies and overseas partners. The ACBPS also partners with state law enforcement and regulatory agencies in policy development and operational efforts. The ACBPS also works closely with the private sector, taking a co-design approach with the industries that share and shape the ACBPS’s operating environment.
In 2013–14 further emphasis will be given to the ACBPS’s work with law enforcement partners to bring to account those involved in serious and organised crime. The ACBPS’s role in these joint operations is far broader than detecting illicit goods. The ACBPS brings to these operations its extensive intelligence holdings as well as its physical capabilities across border channels, including air and sea passengers and crew, air and sea cargo, international mail, and maritime and coastal surveillance. In 2013–14 the two major areas of focus for collaboration will be a new strategic partnership with the Australian Federal Police to deal with serious criminality at the border and the development of the National Border Targeting Centre to target high-risk passengers and cargo, with co-location of Commonwealth agencies a key theme.
Professionalism and integrity will remain a key focus, and in 2013–14 the ACBPS will continue to embed the new integrity powers granted to the Chief Executive Officer. In addition, the broader integrity initiatives already underway will be further refined, including toughening the suitability assessments undertaken for all new and existing employees.
The ACBPS will maintain its focus on enduring threats in 2013–14, including illicit drugs and precursors, the illegal movement of money, illicit firearms and tobacco smuggling. The ACBPS will also maintain its ongoing vigilance on the management of border risks associated with terrorism and unlawful activity in Australia’s maritime zone.
The ACBPS is also working to better understand the economic risks at the border, and
this work will be enhanced with the establishment in 2013–14 of the Anti-Dumping Commission, which will report directly to the Minister for Home Affairs on
anti-dumping investigations.
As part of the 2013–14 Budget, the Australian Government will continue its investment to maintain the ACBPS’s maritime and border processing capabilities.
The government will provide $53.102m in additional funding in 2013–14 as part of the Combating people smuggling—strengthening response capability to irregular maritime arrivals measure. As part of this measure, the government will provide $4.003m to fund an additional 60 patrol days for the ACV Ocean Protector, which will deliver a total of 180sea patrol days for use in the southern and northern waters. In addition, the ACBPS will deploy nine officers to Cocos (Keeling) Islands to process irregular maritime arrivals. The cost of deployment, which totals $2.821m, will be funded from within existing resources.
The government will also continue to deliver counter people smuggling communication campaigns in source Southeast Asian countries and build counter people smuggling capability in the region by providing $6.401m for the measure Combating people smuggling—prevention and disruption activities.
The government has agreed to provide $30.223m (including capital costs) over three years from 2014–15 to establish a National Border Targeting Centre. The centre is part of a national package of measures that will address gang violence, organised crime and community safety. The National Border Targeting Centre will increase data integration and improve analysis capabilities to support risk assessment of passengers and cargo, aligning Australia’s approach with the US, Canadian and UK targeting centres.
The government also agreed to the measure Import Processing Charge—ensuring full cost recovery, which will generate an estimated $674.266m in additional revenue over four years. This measure will broaden the cost base of the current import processing charge and will increase the rate of the charge for import entries valued at greater than $10,000. The arrangements for consignments valued at less than $10,000 will not change.
1.2 Agency resource statement
Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by administered and departmental classification.
Table 1.1: Agency resource statement—Budget estimates for 2013–14 as at Budget May 2013
prior year / Actual
amounts / + / Proposed / = / Total / available
available in / at Budget / estimate / appropriation
2013–14 / 2013–14 / 2013–14 / 2012–13
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL SERVICES1
Departmental appropriation
Prior year departmental
appropriation2 / 181,863 / – / 181,863 / 185,879
Departmental appropriation3 / – / 1,022,831 / 1,022,831 / 1,010,206
s 31 relevant agency receipts4 / – / 69,022 / 69,022 / 71,750
Total / 181,863 / 1,091,853 / 1,273,716 / 1,267,835
Administered expenses
Outcome 1 / – / 928 / 928 / 916
Total / – / 928 / 928 / 916
Total ordinary annual services / A / 181,863 / 1,092,781 / 1,274,644 / 1,268,751
OTHER SERVICES5
Departmental non-operating
Equity injections / – / 67,604 / 67,604 / 64,882
Total other services / B / – / 67,604 / 67,604 / 64,882
Total available annual
appropriations / 181,863 / 1,160,385 / 1,342,248 / 1,333,633
SPECIAL APPROPRIATIONS
Special appropriations limited
by criteria/entitlement
Customs duty and other
repayments6 / – / 260,000 / 260,000 / 330,000
Total special appropriations / C / – / 260,000 / 260,000 / 330,000
Total appropriations excluding
special accounts / 181,863 / 1,420,385 / 1,602,248 / 1,663,633
SPECIAL ACCOUNTS
Opening balance7 / 2,465 / – / 2,465 / 2,465
Appropriation receipts / – / 4,000 / 4,000 / 4,000
Total special accounts / D / 2,465 / 4,000 / 6,465 / 6,465
Total resourcing (A+B+C+D) / 184,328 / 1,424,385 / 1,608,713 / 1,670,098
Less appropriations drawn from
annual or special appropriations
above and credited to special
accounts / – / 4,000 / 4,000 / 4,000
Total net resourcing for agency / 184,328 / 1,420,385 / 1,604,713 / 1,666,098
All figures are GST exclusive.
1. Appropriation Bill (No. 1) 2013–14.
2. Estimated adjusted balance carried forward from previous year.
3. Includes an amount of $60.592m in 2013–14 for the departmental capital budget (see Table3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.
4. Section 31 relevant agency receipts—estimate.
5. Appropriation Bill (No. 2) 2013–14.
6. Financial Management and Accountability Act 1997, section 28—repayments required or permitted by law.
7. Estimated opening balance for special accounts (less ‘special public money’ held in a Services for Other Entities and Trust Moneys Special Account). For further details on special accounts, see Table 3.1.2.
1.3 Budget measures
Budget measures announced since the 2012–13 Mid-Year Economic and Fiscal Outlook (MYEFO) relating to the ACBPS are detailed in Budget Paper No.2 and are summarised in Part1 of Table1.2. MYEFO measures not previously reported in a portfolio statement are summarised in Part2.
Table 1.2: Agency 2013–14 Budget measures
Part 1: Measures announced since the 2012–13 MYEFO
2012–13 / 2013–14 / 2014–15 / 2015–16 / 2016–17Program / $’000 / $’000 / $’000 / $’000 / $’000
Revenue measures
Customs duty—customs refund and duty drawback scheme for tobacco / Admin
Administered revenues / – / – / – / – / –
Excise and excise-equivalent customs duty—index tobacco excise to average weekly ordinary time earnings / Admin
Administered revenues / – / nfp / nfp / nfp / nfp
Import Processing Charge—ensuring full cost recovery / Admin
Administered revenues / – / 91,618 / 188,704 / 194,163 / 199,781
Strengthening the response to organised crime at the border and in the supply chain / Admin
Administered revenues / – / – / – / – / –
Total revenue measures / – / 91,618 / 188,704 / 194,163 / 199,781
Expense measures
Automated Border Processing for International Air Departures—trial1 / 1.1
Departmental expenses / – / – / – / – / –
Addressing gang violence and organised crime—National Border Targeting Centre / 1.3
Departmental expenses / – / – / 3,337 / 4,472 / 1,914
Combating people smuggling—
post-interdiction management of suspected illegal entry vessels2 / 1.3
Departmental expenses / – / – / – / – / –
Combating people smuggling—prevention and disruption activities / 1.3
Departmental expenses / – / 6,401 / – / – / –
Strengthening the response to organised crime at the border and in the supply chain / 1.3
Departmental expenses / – / – / – / – / –
Combating people smuggling—strengthening response capability to irregular maritime arrivals3 / 1.4
Departmental expenses / – / 4,003 / – / – / –
Attorney-General’s Portfolio savings—redirection / All
Departmental expenses / (1,094) / (1,032) / (1,055) / (1,055)
Total expense measures / – / 9,310 / 2,305 / 3,417 / 859
Table 1.2: Agency 2013–14 Budget measures
Part 1: Measures announced since the 2012–13 MYEFO (continued)
2012–13 / 2013–14 / 2014–15 / 2015–16 / 2016–17Program / $’000 / $’000 / $’000 / $’000 / $’000
Capital measures
Automated Border Processing for International Air Departures—trial1 / 1.1
Departmental capital / – / – / – / – / –
Addressing gang violence and organised crime—National Border Targeting Centre / 1.3
Departmental capital / – / – / 16,070 / 4,430 / –
Strengthening the response to organised crime at the border and in the supply chain / 1.3
Departmental capital / – / – / – / – / –
Total capital measures / – / – / 16,070 / 4,430 / –
Prepared on a Government Finance Statistics (fiscal) basis.
All figures are GST exclusive.
1. Costs of $3.616m in 2013–14 and $3.369m in 2014–15 for this measure will be absorbed by the ACBPS.
2. Cost of $3.760m for this measure will be absorbed by the ACBPS.
3. Additional funding of $49.099m in 2013–14 was provided for this measure and reported in the
2012–13 Portfolio Additional Estimates Statements.
Part 2: MYEFO measures not previously reported in a portfolio statement
2012–13 / 2013–14 / 2014–15 / 2015–16 / 2016–17Program / $’000 / $’000 / $’000 / $’000 / $’000
Expense measures
Targeted savings—public service efficiencies1 / All
Departmental expenses / – / (1,706) / (1,608) / (1,500) / (1,204)
Total expense measures / – / (1,706) / (1,608) / (1,500) / (1,204)
Prepared on a Government Finance Statistics (fiscal) basis.