Australian Customs and Border Protection Service

Australian Customs and Border Protection Service

Section 1: Agency overview and resources

1.1Strategic direction

The strategic direction statement for the Australian Customs and Border Protection Service can be found in the 2012–13 Portfolio Budget Statements. There has been no change to Customs and Border Protection’s strategic direction as a result of Additional Estimates.

1.2Agency resource statement

The agency resource statement details the resourcing for Customs and Border Protection at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2012–13 budget year, including variations through Appropriation Bill No.3.

Table 1.1: Agency resource statement—additional estimates for 2012–13 as at Additional Estimates,February 2013

Total
Estimate / Proposed / estimate at / Total
as at / Additional / Additional / available
Budget / + / Estimates / = / Estimates / appropriation
2012–13 / 2012–13 / 2012–13 / 2011–12
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL SERVICES1
Departmental appropriation
Prior year departmental
appropriation2 / 168,575 / – / 168,575 / 185,879
Departmental appropriation3 / 986,348 / 23,858 / 1,010,206 / 1,014,627
s 31 relevant agency receipts4 / 71,750 / – / 71,750 / 71,335
Total / 1,226,673 / 23,858 / 1,250,531 / 1,271,841
Administered expenses
Outcome 1 / 916 / – / 916 / 894
Total / 916 / – / 916 / 894
Total ordinary annual services / A / 1,227,589 / 23,858 / 1,251,447 / 1,272,735
OTHER SERVICES5
Departmental non-operating
Equity injections / 64,882 / – / 64,882 / 56,537
Total / 64,882 / – / 64,882 / 56,537
Total other services / B / 64,882 / – / 64,882 / 56,537
Total available annual
appropriations / 1,292,471 / 23,858 / 1,316,329 / 1,329,272
SPECIAL APPROPRIATIONS
Special appropriations limited
by criteria/entitlement
Customs duty and other
repayments6 / 260,000 / – / 260,000 / 330,601
Total special appropriations / C / 260,000 / – / 260,000 / 330,601
Total appropriations excluding
special accounts / 1,552,471 / 23,858 / 1,576,329 / 1,659,873
SPECIAL ACCOUNTS
Opening balance7 / 2,465 / – / 2,465 / 3,950
Appropriation receipts / 4,000 / – / 4,000 / 1,913
Total special accounts / D / 6,465 / – / 6,465 / 5,863
Total resourcing (A+B+C+D) / 1,558,936 / 23,858 / 1,582,794 / 1,665,736
Less appropriations drawn from
annual or special appropriations
above and credited to
special accounts / 4,000 / – / 4,000 / 3,398
Total net resourcing for agency / 1,554,936 / 23,858 / 1,578,794 / 1,662,338

All figures are GST exclusive.

1. Appropriation Act (No. 1) 2012–13 and Appropriation Bill (No. 3) 2012–13.

2. Estimated adjusted balance carried forward from previous year for annual appropriations.

3. Includes an amount of $59.766m in 2012–13 for the departmental capital budget (seeTable 3.2.5 forfurther details). For accounting purposes this amount has been designated as ‘contributions by owners’.

4. Section 31 relevant agency receipts—estimate.

5. Appropriation Act (No. 2) 2012–13.

6. Financial Management and Accountability Act 1997, section 28—repayments required and permitted by law.

7. Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts such as Other Trust Moneys accountsor Services for Other Entities andTrust Moneys accounts).

1.3Agency measures table

Table 1.2 summarises new government measures taken since the 2012–13 Budget. The table is split into revenue, expense and capital measures, with the affected program identified.

Table 1.2: Agency 2012–13measures since Budget

2012–13 / 2013–14 / 2014–15 / 2015–16
Program / $’000 / $’000 / $’000 / $’000
Revenue measures
Passenger movement charge—do not proceed with indexation / Admin
Administered revenues / – / (15,000) / (40,000) / (70,000)
Customs’ compliance assurance system—expansion1 / Admin
Administered revenues / – / 11,400 / 11,400 / 11,400
Malaysia–Australia Free Trade Agreement / Admin
Administered revenues / (10,000) / (20,000) / (25,000) / (25,000)
Total revenue measures / (10,000) / (23,600) / (53,600) / (83,600)
Expense measures
Asian Football Cup—assistance2 / 1.1 & 1.2
Departmental expenses / – / – / 461 / –
Customs’ compliance assurance system—expansion1 / 1.2
Departmental expenses / 500 / 4,500 / 4,200 / 4,300
Enhancements to Australia’s
Anti-Dumping and Countervailing System3, 4 / 1.2
Departmental expenses / – / 6,536 / 6,352 / 6,653
Border Security—counter people smuggling communications campaign1, 4 / 1.3
Departmental expenses / 3,561 / – / – / –
Strengthening Customs and Border Protection’s capability4 / 1.4
Departmental expenses / 15,337 / 49,099 / – / –
Targeted savings—public service efficiencies / All
Departmental expenses / (3,595) / (3,609) / (3,609) / (3,609)
Fire Services Levy—reduction5 / All
Departmental expenses / (364) / (380) / (397) / (397)
Total expense measures / 15,439 / 56,146 / 7,007 / 6,947
Capital measures
Enhancements to Australia’s
Anti-Dumping and Countervailing System3, 4 / 1.2
Departmental capital / – / 1,668 / – / –
Total capital measures / – / 1,668 / – / –

Prepared on a Government Finance Statistics (fiscal) basis.

The measure Duty free allowances—amending the rules when incoming passengers declare an excess over the allowance published in Appendix A of the 2012–13 Mid-Year Economic and Fiscal Outlook (MYEFO) as a revenue measureis not published in Table 1.2 because it is estimated to have a small but unquantifiable impact on revenue over the forward estimates period.

Notes to Table 1.2 (continued):

The measure Linking the Australian carbon pricing mechanism and European Union emissions trading scheme published in Appendix A of the 2012–13 MYEFO as a revenue measure is not published in Table1.2 because it is estimated to have no revenue impact over the forward estimates period. The full measure description and package details appear in the 2012–13 MYEFO under the Climate Change and Energy Efficiency portfolio.

The measure Law enforcement agencies—improving integrity was published in Appendix A of the 2012–13 MYEFO and is therefore not published in Table 1.2. It is a multi-agency measure. Customs and Border Protection is absorbing the costs of this measure.

1. This is a cross-agency measure. Customs and Border Protection is the lead agency.

2. The lead agency for this measure is the Department of Regional Australia, Local Government, Arts and Sport. This measure has no impact on underlying cash as the cost will be offset by a provision in the contingency reserve included in the 2012–13 Budget.

3. The lead agency for this measure is the Department of Industry, Innovation, Science, Research and Tertiary Education.Customs and Border Protection is absorbing the costs of this measure.

4. This measure relates to a decision made post-MYEFO.

5. Measure announced in 2012–13 Budget but not previously reported in a portfolio statement.

1.4Additional estimates and variations

The following tables detail the changes to the resourcing for Customs and Border Protection at Additional Estimates, by outcome. Table 1.3 details the additional estimates and variations resulting from new measures since the 2012–13 Budget in Appropriation Bill No.3. Table 1.4 details additional estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2012–13 Budget

Program / 2012–13 / 2013–14 / 2014–15 / 2015–16
impacted / $’000 / $’000 / $’000 / $’000
OUTCOME 1
Increase in estimates (administered)
Customs’ compliance assurance system—expansion / Admin / – / 11,400 / 11,400 / 11,400
Decrease in estimates (administered)
Passenger movement charge—do not proceed with indexation / Admin / – / (15,000) / (40,000) / (70,000)
Malaysia–Australia Free Trade Agreement / Admin / (10,000) / (20,000) / (25,000) / (25,000)
Net impact on estimates
for Outcome 1 (administered) / (10,000) / (23,600) / (53,600) / (83,600)
Increase in estimates (departmental)
Asian Football Cup—assistance / 1.1 & 1.2 / – / – / 461 / –
Customs’ compliance assurance system—expansion / 1.2 / 500 / 4,500 / 4,200 / 4,300
Enhancements to Australia’s
Anti-Dumping and Countervailing System / 1.2 / – / 8,204 / 6,352 / 6,653
Border Security—counter people smuggling communications campaign / 1.3 / 3,561 / – / – / –
Strengthening Customs and Border Protection’s capability / 1.4 / 15,337 / 49,099 / – / –
Decrease in estimates (departmental)
Targeted savings—public service efficiencies / All / (3,595) / (3,609) / (3,609) / (3,609)
Fire Services Levy—reduction / All / (364) / (380) / (397) / (397)
Net impact on estimates
for Outcome 1 (departmental) / 15,439 / 57,814 / 7,007 / 6,947

Table 1.4: Additional estimates and variations to outcomes from other variations

Program / 2012–13 / 2013–14 / 2014–15 / 2015–16
impacted / $’000 / $’000 / $’000 / $’000
OUTCOME 1
Increase in estimates (administered)
Customs duty / Admin / 460,000 / 460,000 / 465,000 / 485,000
Decrease in estimates (administered)
Changes in wage and price indices / Admin / – / (4) / (6) / (7)
Net impact on estimates
for Outcome 1 (administered) / 460,000 / 459,996 / 464,994 / 484,993
Increase in estimates (departmental)
Reducing inbound duty free allowances for tobacco / 1.1 & 1.2 / 6,916 / 4,771 / – / –
Passenger workload growth funding agreement / 1.1 / 1,388 / 1,857 / 1,934 / 2,653
Fringe benefits tax supplementation for overseas living away from home allowance / All / 115 / 524 / 797 / 821
Decrease in estimates (departmental)
Changes in wage and price indices / All / – / (3,469) / (5,038) / (5,981)
Departmental capital budget—changes in wage and price indices / All / – / (238) / (375) / (447)
Net impact on estimates
for Outcome 1 (departmental) / 8,419 / 3,445 / (2,682) / (2,954)

1.5Breakdown of additional estimates by appropriation bill

Table 1.5 details the additional estimates sought for Customs and Border Protection through Appropriation Bill No.3. Customs and Border Protection has no additional estimates through Appropriation Bill No.4.

Table 1.5: Appropriation Bill (No. 3) 2012–13

2011–12 / 2012–13 / 2012–13 / Additional / Reduced
Available1 / Budget / Revised / Estimates / Estimates
$’000 / $’000 / $’000 / $’000 / $’000
DEPARTMENTAL PROGRAMS
Outcome 1
The protection of the safety, security and commercial interests of Australians through border protection designed to support legitimate trade and travel and ensure collection of border revenue and trade statistics / 1,014,627 / 986,348 / 1,010,206 / 23,858 / –
Total departmental / 1,014,627 / 986,348 / 1,010,206 / 23,858 / –

1. 2011–12 available appropriation is included to allow a comparison of this year’s appropriation with what was made available for use in the previous year.

Section 2: Revisions to outcomes and planned performance

2.1Outcome and performance information

There are no changes to Customs and Border Protection’s outcome and performance information as reported in the 2012–13 Portfolio Budget Statements.

Outcome 1

Outcome 1 strategy

There are no changes to the strategy for Outcome 1 as reported in the 2012–13 Portfolio Budget Statements.

Table 2.1: Budgeted expenses and resources for Outcome 1

Outcome 1: The protection of the safety, security and commercial interests of Australians through border protection designed to support legitimate trade and travel and ensure collection of border revenue and trade statistics / 2012–13
2011–12 / Revised
Actual / estimated
expenses1, 2 / expenses3
$’000 / $’000
Program 1.1: Passenger facilitation
Departmental expenses
Departmental appropriation4 / 219,180 / 214,718
Expenses not requiring appropriation in the budget year5 / 29,727 / 20,351
Total for Program 1.1 / 248,907 / 235,069
Program 1.2: Trade facilitation
Departmental expenses
Departmental appropriation4 / 196,949 / 188,163
Expenses not requiring appropriation in the budget year5 / 36,048 / 30,693
Total for Program 1.2 / 232,997 / 218,856
Program 1.3: Border protection and enforcement
Departmental expenses
Departmental appropriation4 / 242,295 / 250,594
Expenses not requiring appropriation in the budget year5 / 35,114 / 23,035
Total for Program 1.3 / 277,409 / 273,629
Program 1.4: Civil maritime surveillance and response
Departmental expenses
Departmental appropriation4 / 293,974 / 308,166
Expenses not requiring appropriation in the budget year5 / 13,648 / 20,490
Total for Program 1.4 / 307,622 / 328,656
Program 1.5: Border-related revenue collection
Departmental expenses
Departmental appropriation4 / 59,297 / 60,549
Expenses not requiring appropriation in the budget year5 / 9,127 / 13,817
Total for Program 1.5 / 68,424 / 74,366

Table 2.1: Budgeted expenses and resources for Outcome 1 (continued)

Outcome 1: The protection of the safety, security and commercial interests of Australians through border protection designed to support legitimate trade and travel and ensure collection of border revenue and trade statistics / 2012–13
2011–12 / Revised
Actual / estimated
expenses1, 2 / expenses3
$’000 / $’000
Program: Other administered
Administered expenses
Ordinary annual services (Appropriation Bill No. 1 & No. 3) / 862 / 916
Expenses not requiring appropriation in the budget year5 / 6,758 / 2,500
Total for other administered / 7,620 / 3,416
Outcome 1 totals by appropriation type
Administered expenses
Ordinary annual services (Appropriation Act No. 1 & Bill No. 3) / 862 / 916
Expenses not requiring appropriation in the budget year5 / 6,758 / 2,500
Departmental expenses
Departmental appropriation4 / 1,011,695 / 1,022,190
Expenses not requiring appropriation in the budget year5 / 123,664 / 108,386
Total expenses for Outcome 1 / 1,142,979 / 1,133,992
2011–12 / 2012–13
Average staffing level (number) / 5,222 / 5,100

1. For 2011–12 actual expenses, the ‘Departmental appropriation’ amount reflects the estimated actual expenses for each program funded through departmental appropriation.

2. The actual result for 2011–12 includes the operating loss incurred as a result of the movement in the bond rate. The operating loss has been attributed across Customs and Border Protection’s five programs.

3.An approved estimated operating loss of $5.000m that is likely to be incurred in 2012–13 as a result of additional operating expenses (offset by equivalent lower capital spending from the departmental capital budget) has been attributed across Customs and Border Protection’s five programs.

4. Departmental appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 & Bill No. 3)’ and ‘Revenue from independent sources (s 31)’.

5. Expenses not requiring appropriation in the budget year are made up of resources received free of charge, depreciation and amortisation expenses, and impairment and write-off of debts.

Program 1.1 expenses

2012–13 / 2013–14 / 2014–15 / 2015–16
2011–12 / Revised / Forward / Forward / Forward
Actual1 / budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses2 / 219,180 / 214,718 / 219,108 / 221,700 / 227,420
Expenses not requiring appropriation in
the budget year3 / 29,727 / 20,351 / 18,374 / 18,425 / 18,434
Total program expenses / 248,907 / 235,069 / 237,482 / 240,125 / 245,854

1. For 2011–12 actual expenses, the ‘Annual departmental expenses’ amount reflects the estimated actual expenses for each program funded through departmental appropriation.

2.The measures Fire Services Levy—reduction and Targeted savings—public service efficiencies have been applied proportionately across departmental program expenses.

3. Expenses not requiring appropriation in the budget year are made up of resources received free of charge, depreciation and amortisation expenses, and impairment and write-off of debts.

Program 1.2 expenses

2012–13 / 2013–14 / 2014–15 / 2015–16
2011–12 / Revised / Forward / Forward / Forward
Actual1 / budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses2 / 196,949 / 188,163 / 193,566 / 193,358 / 194,876
Expenses not requiring appropriation in
the budget year3 / 36,048 / 30,693 / 30,251 / 30,583 / 30,574
Total program expenses / 232,997 / 218,856 / 223,817 / 223,941 / 225,450

1. For 2011–12 actual expenses, the ‘Annual departmental expenses’ amount reflects the estimated actual expenses for each program funded through departmental appropriation.

2.The measures Fire Services Levy—reduction and Targeted savings—public service efficiencies have been applied proportionately across departmental program expenses.

3. Expenses not requiring appropriation in the budget year are made up of resources received free of charge, depreciation and amortisation expenses, and impairment and write-off of debts.

Program 1.2 deliverables

Revisions to the deliverables for program 1.2 since the 2012–13 Portfolio Budget Statements are outlined below. In addition, the following deliverable has been removed and will no longer be reported:

•Number of internal reviews of tariff classification, valuation and rules of origin advices completed.

Further deliverables for program 1.2 that have remained unchanged can be found on pages 116–17 of the 2012–13 Portfolio Budget Statements.

2012–13 / 2013–14 / 2014–15 / 2015–16
Revised / Forward / Forward / Forward
Deliverables / budget / year 1 / year 2 / year 3
Volume of cargo subject to inspection
and examination:~~
Mail:
number of parcels/EMS/
registered items inspected> / 25.0m / 25.0m / 25.0m / 25.0m
number of letter class mail items
inspected> / 15.0m / 15.0m / 15.0m / 15.0m

~~ All cargo is risk assessed.

Inspection may include the use of x-ray technology, detector dogs or physical examination.

Program 1.2 key performance indicators

Revisions to the key performance indicators for program 1.2 since the 2012–13 Portfolio Budget Statements are outlined below. In addition, the following key performance indicators have been removedand will no longer be reported:

•Proportion of internal reviews of tariff classification, valuation and rules of origin advices completed in accordance with client service standards.

•Proportion of external merit and judicial review applications finalised during the performance period that overturned a Customs and Border Protection advice on tariff classification, valuation or rules of origin.

The following key performance indicator has been moved from program 1.2 to program 1.5:

•Proportion of external merit and judicial review applications finalised during the performance period that overturned a Customs and Border Protection decision on refund or drawback claim.

Further key performance indicators for program 1.2 that have remained unchanged can be found on pages 117–18 of the 2012–13 Portfolio Budget Statements.

2012–13 / 2013–14 / 2014–15 / 2015–16
Revised / Forward / Forward / Forward
Key performance indicators / target / year 1 / year 2 / year 3
Number of external merit andjudicial review applications onmatters, including tariffclassification under Schedule 4 of the Customs Tariff Act, valuation or rules of originfinalised during the performanceperiod where the duty was paidunder protest under section 167 of theCustoms Act1901 / * / * / * / *
Number of external merit andjudicial review applicationsfinalised that overturned a Customsand Border Protection administrative review decisionwhere the duty was paid underprotest / * / * / * / *
Proportion of anti-dumping/countervailing investigations, reviews, continuations and duty assessments completed within 155 daysor timeframe as extendedby the Minister / 100% / 100% / 100% / 100%

* Performance cannot be forecast reliably. Actual results will be included in the annual report.

Program 1.3 expenses

2012–13 / 2013–14 / 2014–15 / 2015–16
2011–12 / Revised / Forward / Forward / Forward
Actual1 / budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses2 / 242,295 / 250,594 / 232,897 / 233,481 / 234,681
Expenses not requiring appropriation in
the budget year3 / 35,114 / 23,035 / 21,658 / 21,701 / 21,687
Total program expenses / 277,409 / 273,629 / 254,555 / 255,182 / 256,368

1. For 2011–12 actual expenses, the ‘Annual departmental expenses’ amount reflects the estimated actual expenses for each program funded through departmental appropriation.

2. The measures Fire Services Levy—reduction and Targeted savings—public service efficiencies have been applied proportionately across departmental program expenses.

3. Expenses not requiring appropriation in the budget year are made up of resources received free of charge, depreciation and amortisation expenses, and impairment and write-off of debts.

Program 1.4 expenses

2012–13 / 2013–14 / 2014–15 / 2015–16
2011–12 / Revised / Forward / Forward / Forward
Actual1 / budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses2 / 293,974 / 308,166 / 317,508 / 238,733 / 245,902
Expenses not requiring appropriation in
the budget year3 / 13,648 / 20,490 / 21,716 / 27,102 / 35,035
Total program expenses / 307,622 / 328,656 / 339,224 / 265,835 / 280,937

1. For 2011–12 actual expenses, the ‘Annual departmental expenses’ amount reflects the estimated actual expenses for each program funded through departmental appropriation.

2. The measures Fire Services Levy—reduction and Targeted savings—public service efficiencies have been applied proportionately across departmental program expenses.

3. Expenses not requiring appropriation in the budget year are made up of resources received free of charge, depreciation and amortisation expenses, and impairment and write-off of debts.

Program 1.4 key performance indicators

The following wording changes have been made to the key performance indicators for program 1.4 since the 2012–13 Portfolio Budget Statements:

•In the third-last key performance indicator,suspect has been changed to suspected, so that it reads Number of detections and interceptions of suspected irregular entry vessels.

•In the second-last key performance indicator, suspect unlawful non-citizens has been changed to potential irregular immigrants,so that it reads Number of potential irregular immigrants intercepted at sea (including ship’s crew).

Further key performance indicators for program 1.4 that have remained unchanged can be found on page 125 of the 2012–13 Portfolio Budget Statements.

Program 1.5 expenses

2012–13 / 2013–14 / 2014–15 / 2015–16
2011–12 / Revised / Forward / Forward / Forward
Actual1 / budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses2 / 59,297 / 60,549 / 60,492 / 60,445 / 60,803
Expenses not requiring appropriation in
the budget year3 / 9,127 / 13,817 / 13,447 / 13,458 / 13,454
Total program expenses / 68,424 / 74,366 / 73,939 / 73,903 / 74,257

1. For 2011–12 actual expenses, the ‘Annual departmental expenses’ amount reflects the estimated actual expenses for each program funded through departmental appropriation.

2. The measures Fire Services Levy—reduction and Targeted savings—public service efficiencies have been applied proportionately across departmental program expenses.

3. Expenses not requiring appropriation in the budget year are made up of resources received free of charge, depreciation and amortisation expenses, and impairment and write-off of debts.

Program 1.5 deliverables

Revisions to the deliverables for program 1.5 since the 2012–13 Portfolio Budget Statements are outlined below. Further deliverables for program 1.5 that have remained unchanged can be found on pages 127–28 of the 2012–13 Portfolio Budget Statements.

2012–13 / 2013–14 / 2014–15 / 2015–16
Revised / Forward / Forward / Forward
Deliverables / budget / year 1 / year 2 / year 3
Collection of revenue associated with
passenger movements / $793.8m / $869.0m / $921.1m / $966.7m
Significant revenues collected
(including customs duty, passenger
movement charge, import processing
charge and GST collected) / $12,000.6m / $13,633.0m / $14,019.7m / $14,840.2m
Program 1.5 key performance indicators

Revisions to the key performance indicators for program 1.5 since the 2012–13 Portfolio Budget Statements are outlined below. In addition, the following key performance indicator has been removed and will no longer be reported:

•Proportion of external merit and judicial review applications during the performance period that overturned a Customs and Border Protection decision on concession eligibility under Schedule 4 of the Customs Tariff Act 1995.

Further key performance indicators for program 1.5 that have remained unchanged can be found on page 129 of the 2012–13 Portfolio Budget Statements.

2012–13 / 2013–14 / 2014–15 / 2015–16
Revised / Forward / Forward / Forward
Key performance indicators / target / year 1 / year 2 / year 3
Proportion of external merit and judicial
review applications finalised during the
performance period that overturned a
Customs and Border Protection decision
on refund or drawback claim / * / * / * / *
Number of external merit and judicial
review applications on refund and
drawback claims finalised during the
performance period / * / * / * / *
Number of external merit and judicial
review applications finalised that
overturned a Customs and Border
Protection decision on refund or
drawback claims / * / * / * / *
Number of external merit and judicial
review applications finalised during
the performance period on a Customs
and Border Protection decision made
under Part XVA of the Customs Act1901 / * / * / * / *
Number of external merit and judicial
review applications finalised that
overturned a Customs and Border
Protection decision under Part XVA of
the Customs Act 1901 / * / * / * / *

* Performance cannot be forecast reliably. Actual results will be included in the annual report.