Import paperwork surge, shippers offer to pay farmers' biosecurity levy

Freight and Trade Alliance trade policy and operations general manager Sal Milici said the issues were being caused by "ongoing fluctuating" document assessment and inspection levels that continued to "significantly adversely impact importers."

"In terms delays of cargo release, increased storage charges, logistics costs and shipping line imposed container detention fees," he said.

"As well as the direct financial implications, the delays are causing confusion and angst amongst supply chain participants and is leaving customs brokers in the unenviable position of communicating the outcomes to frustrated client importers."

The FTA are scheduled to meet with Department of Agriculture, Fisheries and Forestry executives to "obtain insights into the expected trajectory in the coming weeks and months."

Last week, DAFF officials told Senate Estimates that it had experienced trouble recruiting assessment officers and acknowledged the situation was contributing to service levels not being met.

The DAFF data shows the number of full import declarations, or FIDs, lodged by importers rose from about 4000 on January 1 to more than 7000 on February 19.

Meanwhile, lodgements awaiting assessment were about 1500 on January 1, this dropped to less than 500 on January 8, but they have steadily climbed to about 3000 on February 19.

The situation follows spikes in April last year, where about half of the 7000 FIDs then lodged were waiting assessment and in October 2022 where more than 3500 of the 8000 lodgements were backlogged.

It is believed the department have implemented several measures to address the current back log including the diverting of specialised staff, the pausing of complex and intermediate training and offering overtime.

Meanwhile, the government has responded to months of protests by the agriculture sector by announcing alterations to its contentious Biosecurity Protection Levy "to ensure it's more equitable and more transparent."

The levy, that will require farmers to pay $47.5 million a year, was first announced in the 2023 Federal Budget as part of a new sustainable biosecurity funding model and is scheduled to begin on July 1.

However, FTA director Paul Zalai last week flagged a three-point plan he said was handed to Agriculture Minister Murray Watt that urged against the government proceeding with "the complex levy against producers."

He said the shortfall could be covered by importers through a FID fee increase in exchange for productivity improvements, more government services and regulation policing "the scourge of the incontestable Terminal Access Charge regime."

"The plan would provide the federal government a 'good news story' to appease the agriculture sector who are speaking out against the producer levy, strengthen biosecurity safeguards and address supply chain costs that are adding to the 'cost of living' crisis faced by all Australians," he said.

Grain Producers Australia chief executive Colin Bettles said the importers' offer to pay the $50 million levy instead of producers was "acceptance they're the actual biosecurity risk creators."

"The FTA and Australian Peak Shippers Association say they agree that the new levy is fundamentally flawed and an unworkable policy," he said.

Under current modelling, importers will already be asked to pay about 48 per cent of the overall BPL of $804 million through an existing $363.6m in fees and charges and a new low value import charge that will raise $27.1m.