IFCBAA calls for biosecurity reform and short term solutions

IFCBAA calls for a biosecurity reform and short term solutions to improve client service standards

Members would be aware that earlier this year the International Forwarders and Customs Brokers Association of Australia Ltd. (IFCBAA) Chief Executive Officer,  Paul Damkjaer and Head of Border & Biosecurity, Zoran Kostadinoski meet with the Minister for Agriculture, Drought and Emergency Management, Hon David Littleproud, Andrew Metcalfe, Secretary, Andrew Tongue, Deputy Secretary and Colin Hunter - First Assistant Secretary, Biosecurity Operations, Department of Agriculture, Water and the Environment (the department) to discuss the biosecurity system issues and performance levels in key department divisions that impact on trade facilitation at the border.

It was pleasing to hear the Minister say “While biosecurity must come first, it is also important that we explore more innovative ways of operating, as doing more of the same is not an option”.

Partnering and co-design activities with industry at both a grass roots and strategic level will be critical to achieving reform while ensuring the flow of trade and goods to Australian consumers keeps moving, said the Minister.

The Minister acknowledged that the department requires automation to increase the speed and accuracy of biosecurity document assessment and investment in modern systems to schedule and deploy assessment and inspection services more effectively.

IFCBAA also met with the Inspector-General of Biosecurity Mr Rob Delane and discussed in length the industry issues which are included in the Review Report - Adequacy of the department’s operational model to effectively mitigate biosecurity risks pre-border and at-border in evolving risk and business environments. The below extracts from the report's executive summary states.

• The broad assessment is that the biosecurity system is not in a strong position to address the diverse and evolving biosecurity risks and business environment expected to prevail in 2021 and through to 2025.
• Despite a lot of hard work by many dedicated individuals, the department’s management of the system has failed to achieve the regulatory maturity required for implementation of key elements of the Biosecurity Act 2015.
• The current constraints on timely biosecurity delivery must be addressed if biosecurity risks are to be effectively mitigated without exacerbating adverse impacts on the efficiency, costs and profitability of Australia’s import sector. Import sector business disruption now costs many businesses much more than the department’s cost recovery fees and charges. This represents a marked change over the past decade and reflects the increased international and local competitive pressures on businesses in the importing sector. In this new context, industry has a strong incentive to work in partnership with the department to provide higher levels of certainty.
• The department continues to struggle with outdated information systems that affect the way information is recorded, retrieved, analysed and distributed. This impacts the single view of an entity’s compliance history, which is foundational to a future co-regulatory operational model. For example, how does the department determine suitability for a co-regulatory arrangement or the development of low-risk importer profiles if it does not have a view of which entities have good compliance?

The department is currently working on several initiatives which will help to manage biosecurity risks more effectively and efficiently at the border in the future. More information on what the department is doing and how industry can help is provided in the Import Advice Industry Notice 225-2021.

However, IFCBAA is of the view that the department’s priority should now be on the short term solutions highlighted by IFCBAA to improve the client service standards for assessment and processing of documentation, inspections and post treatment releases, as the ‘end to end’ process needs urgent attention to facilitate trade.

Based on member’s and their client's feedback the department’s Client Service Standards are not meeting today's commercial industry needs and are a barrier to trade, which impacts commercially and financially on the industry that pays fees for service. IFCBAA believes now is the time to start a review of the client service standards to meet modern commercial expectations while ensuring effective biosecurity risk management is maintained.

The current service standards state - Import documents lodged via the Cargo Online Lodgement System for urgent lodgement should be processed within 1 business day and non-urgent lodgement within 2 business days of receiving, and the department's measure of success is based on 80% of assessments being processed within the service standard.

The reality is that industry has experienced up to 9 days of delay in documentation assessment processing in some cases and forced to move cargo under bond to a depot to minimise high wharf storage costs. The department advised industry that the increased trade volumes, late documentation lodgements, increased industry non-compliance and COVID restrictions mainly in NSW and VIC contribute to the delays in entry processing.

Back in the days when the department operated front counters the service was quicker, industry had certainty, better access to biosecurity officers and closer working relationships with the department.

Unfortunately, since the implementation of the online documentation lodgement and closure of front counters the human contact is missing making it difficult for members to speak to senior biosecurity officers to address day to day issues. A recently retired member said his biggest regret is that our industry has lost touch with the regulator.

The service delays result in additional costs for wharf storage, container demurrage, container transport/staging costs for movement under bond and lost sales opportunities for the cargo owners.

As the imports program is cost recovered from the industry, it is reasonable for industry to expect a commercially viable service.

IFCBAA understands the biosecurity system automation and reform takes time to implement, that is why IFCBAA has scheduled a bilateral consultation meeting with the department's Senior Executives to discuss the key issues and the following short term solutions to address the current delays with entry processing and inspections.

• Review the COLS lodgement and prioritisation system to ensure it’s consistent and effective.
  
• Provide better access for customs brokers to contact senior biosecurity officers to address assessment, inspection and treatment matters.
• Automate COLS to enable customs brokers to access “self-service” function to change of inspection location, reprint of biosecurity directions and final record of service etc. This will limit the need to call the department for simple functions.
• During the peak period resource the assessment, inspection and treatment divisions to facilitate trade and clear the current backlog. Consider entry processing KPI 's to improve productivity.
  
• Extend operating hours or process documentation 7 days a week as the supply chain never stops.
• Reduce the CCV, BMSB verification, seals intact intervention, documentation request for entries lodged via AEP and consider a reduction of intervention for compliant importers.
• Allow Approved Arrangement to undertake simple inspections i.e. visual and label inspection, tailgate or other inspection and sampling services.
• Review Client Service Standards to meet modern commercial expectations while ensuring effective biosecurity risk management is maintained.

Long term recommendations and solutions.

• Undertake a Reform to modernise the ‘end to end’ biosecurity system. Digital transformation is required to be able to cope with future trade growth and increased biosecurity risks as adding just resources may not be viable for the future biosecurity system.
• Provide a single portal for customs brokers to be able to access services limiting the need to contact biosecurity officers. Portal to provide visibility of entry status, processing and connectivity.
• Move away from being a transactional documentation manager to biosecurity risk manager and allow accredited persons to undertake low risk assessment functions to free up biosecurity officers to focus on high risk interventions.

IFCBAA is now calling on the department to speed up the biosecurity reform, focus on short term solutions and develop a biosecurity system for the future, as additional funding was secured in the Federal Budget and the imports program is cost recovered from industry.

The system must be able to handle the increased biosecurity intervention at the border and reduce the impact on industry while still effectively managing biosecurity risks in the imports program.

IFCBAA attended the recent National Biosecurity Forum 2021 to hear more about the department’s National Biosecurity Strategy 2030. The department is aware the biosecurity system is not built for today’s complex supply chain and is not extracting the full value from available data. The regulatory settings are not keeping up with the change and the department acknowledged the skills and workforce challenges.

As part of the initial consultation on the National Biosecurity Strategy 2030, IFCBAA on behalf of members provided a submission to the department on what a national biosecurity strategy should focus on relevant to the imports program. A meeting has been scheduled with the National Biosecurity Strategy Project Team to further discuss our submission. If you wish to Have Your Say complete the survey by 26 November 2021.

The regulatory biosecurity clearance delays at the border, on top of the global supply chain disruptions and commercial delays with receipt of documentation for pre clearance, late cargo reporting by other stakeholders, late confirmation of transhipment vessels, are all outside our member’s control. Unfortunately, additional costs due to the delays will be to the cargo owner’s account, which are ultimately passed on to the consumers.

On behalf of members, IFCBAA is committed to continuing work with the department on the short and long term co-design solutions to reform the 'end to end' biosecurity system as biosecurity is a shared responsibility.

Members can share this biosecurity update with clients as delays in the biosecurity system impact commercially and financially on their businesses. This update may help members clients be aware of the biosecurity issues and have realistic expectations as the delays are outside members control.

IFCBAA will keep members informed of future developments. Thanks for your understanding, ongoing patience and cooperation.

IFCBAA Team

22 November 2021