Press release

03 December, 2018

Biosecurity Imports Levy - Australia

Inchcape wish to advise the industry of an update in regards to developments advised by the Australian Department of Agriculture and Water Resources (DAWR), in regards to the introduction of a new Biosecurity Levy and its potential application to the shipping industry from 1st July 2019.

In the 2018-19 Budget, the Australian Government announced the introduction of a new Biosecurity levy to commence on 1 July 2019.  The levy was originally proposed as part of the Australian Budget in 2017, with intent of providing revenue to support costs for monitor, control and management of Biosecurity risks to the Australian environment and economy.

Following industry discussion, it is proposed that the levy is to be reported on and paid by vessel owners, operators and their agents.  Reporting on the levy is proposed to be through an existing reporting tool (MARS) and implementation of new administrative requirements for vessel masters (or their agents) are under review.  

To provide a summary of the proposed activity

Reporting for the Biosecurity Levy

1. Who is required to report information?

  • Vessel owners, operators or their agents –through MARS

2. What information is required to be reported?

  • MARS Pre-arrival report plus:
    • number and size of containers to be unloaded at any Australian port 
    • weight of bulk and break bulk cargo intended to be unloaded at any Australian port (in metric tonnes)
    • gross tonnage of the vessel

3. When is information required to be reported?

  • Additional information is likely required to be provided as part of current pre-arrival reporting, which is required to be submitted 48 hours before a vessel arrives at its first Australian port

4. Do vessels need to report before arrival at each Australian port?

  • Reporting (for the purposes of the levy) is only required to occur ahead of the vessel arriving at its FIRST Australian port for that voyage

Paying the Biosecurity Levy

1. Who is required to pay the Biosecurity Imports Levy?

  • Liability for payment of the levy will rest with vessel owners or operators

2. When is the Biosecurity Imports Levy required to be paid?

  • The levy is required to be paid to the department quarterly in arrears

3.How is the levy amount to be paid to be calculated?

  • The levy rate for vessels, containers, break bulk and bulk cargo is required to be calculated per voyage and then consolidated for that quarter

Proposed costs for the Biosecurity levy as advised by the DAWR are provided below, with proposed implementation date of 1st July 2019, with intent to review the applicability and cost of charges within 2021/2022

Proposed Levy Fee

Containers    $10per TEU
Break bulk cargo    $1per metric tonne
Bulk cargo    $0.50 per metric tonne
Commercialvessels    $0.027 per volumetric ton of vessel gross tonnage
Total revenue expected to be raised:    $325 million over three year forward estimates


At this point, DAWR have indicated their draft generation of legislation for further industry consultation in next few months, with intention for legislation to be presented to parliament in Feb 2019.  

Industry have raised significant concerns on the application of this levy, and an active consultation is anticipated to continue.  Inchcape is active in these discussions and will provide ongoing update on this topic as it develops but wished to provide an immediate update of the situation in regards to this levy and proposed implementation.

To provide further clarity of the impact, pls find attached 4 examples of the application of the levy based on the current proposal from DAWR.

We trust assists, for any further information or enquiry on same please contact 

Australia@iss-shipping.com

Case Study 1 –The MV Biosecurity

Vessel details

  • The Biosecurity arrives in Australia from Mauritius
  • Vessel gross tonnage of 73,819 tons
  • Port of Fremantle –will be unloading: 
    • 1,200 ×20ft containers
  • Port Botany –will be unloading: 
    • 6,00 ×20ft containers
    • 1,000 ×40ft containers
    • 500 ×25ft containers
    • 1,880kg yacht

Reporting

Prior to arrival at the Port of Fremantle –pre-arrival report:

  • Has the vessel arrived in Australia from a port or facility outside of Australia? YES
  • Vessel gross tonnage = 73,819 tons
  • Number and length of containers to be unloaded at any Australian port -(this includes the containers unloaded at both Port of Fremantle and Port Botany)
    • 1800 ×20ft 
    • 500 ×25ft
    • 1000 ×40ft
  • Tonnes of break bulk unloaded at any Australian port = 1.88 tonnes
  • Tonnes of bulk cargo unloaded at any Australia port = N/A

Prior to arrival at Port Botany

  • Has the vessel arrived in Australia from a port or facility outside of Australia? NO
    • No additional reporting required

Levy calculation

Vessel levy                        ($0.027/ton) = 73,819 ×$0.027 = $1,993.11
Container levy                  ($10/TEU) = 1,800 ×$10 = $18,000 (1,800 TEUs)
500 ×$12.5 = $6,250       (500 ×25ft containers)
1,000 ×$20 = $20,000     (1,000 ×40ft containers)

Total container levy =     $44,250
Break bulk levy ($1/tonne) = 1.88 ×$1 = $1.88 
Bulk levy ($0.50/tonne) =N/A

Total levy amount owing = $46,244.99


Case Study 2 –The MV Maritime

Vessel details

  • The Maritime arrives in Australia from Japan
  • Vessel gross tonnage = 41,662 tons
  • Port of Portland –unloading 1,000 cars (1.3 million kg) for the purpose of transporting cars to Bell Bay (Tasmania).

Reporting
Prior to arrival at the Port of Portland –pre-arrival report:

  • Has the vessel arrived in Australia from a port/facility outside of Australia? YES
  • Is the Maritimea commercial vessel? YES
  • Tons of vessel gross tonnage = 41,662 tons
  • Number and length of containers to be unloaded at any Australian port –N/A
  • Tonnes of break bulk unloaded at any Australian port = 1,300 tonnes
  • Tonnes of bulk cargo unloaded at any Australia port = N/A

Prior to arrival at Bell Bay (Tasmania):

  • Has the vessel arrived in Australia from a port/facility outside of Australia? NO
    • No additional reporting required

Levy calculation

Vessel levy           ($0.027/ton) = 41,662 ×$0.027 = $1,124.87
Container levy     ($10/TEU) = N/A
Break bulk levy    ($1 per tonne) = 1,300 ×$1 = $1,300 (1,300 tonnes)
Bulk levy               ($0.50/tonne) =N/A

Total levy amount owing = $2,424.87


Case Study 3 –The MV Petroleum

Vessel details

  • The Petroleum leaves from Gladstone Port
  • Loads crude oil at an offshore facility (outside Australian coastal sea)
  • Unloads 26,435 tonnes of crude oil at Port of Brisbane
  • Vessel gross tonnage = 61,724 tons

Reporting
Prior to arrival at the Port of Brisbane –pre-arrival report: 

  • Has the vessel arrived from a port or facility outside of Australia? YES
  • Is The Petroleum a commercial vessel? YES
  • Vessel gross tonnage = 61,724 tons
  • Number and length of containers to be unloaded at any Australian port = N/A
  • Tonnes of break bulk unloaded at any Australian port = N/A
  • Tonnes of bulk cargo unloaded at any Australia port = 26,435 tonnes

Levy calculation
Vessel levy                ($0.027/ton) = 61,724 ×$0.027 = $1,666.55
Container levy          ($10/TEU) = N/A
Break bulk levy         ($1/tonne) = N/A
Bulk levy                    ($0.50/tonne) =26,435 ×$0.50 = $13,217.50

Total levy amount owing = $14,884.05


Case Study 4 –The MV Transhipper

Vessel details

  • The Transhipper arrives in Australia from Europe
  • The Transhipper takes carriage of a yacht (1.88 tonnes) from another vessel (while it is in the Australian coastal sea)
  • Gross tonnage of 83,133 tons
  • Port Botany –unloads:
    • 1300 ×20ft 
    • 800 ×40ft for transhipment
    • 50 x 20ft container for restow
    • Breakbulk (yacht) – 1.88 tonnes

Reporting
Prior to arrival at Port Botany –pre-arrival report:

  • Has the vessel arrived from a port or facility outside of Australia? YES
  • Is The Transhipper a commercial vessel? YES
  • Gross tonnage = 83,133 tons
  • Number and length of containers to be unloaded at any Australian port: 
    • 1,350 ×20ft 
    • 800 ×40ft
  • Tonnes of break bulk unloaded at any Australian port = 1.88 tonnes
  • Tonnes of bulk cargo unloaded at any Australia port = N/A

Levy calculation
Vessel levy                            ($0.027/ton) = 83,133 ×$0.027 = $2,244.59
Container levy                      ($10/TEU) = 1,350 ×$10 = $13,500 (1,350 TEUs)
800 ×$20 = $16,000             (800 ×40ft containers)

Total container levy = $29,500

Break bulk levy     ($1/tonne) = 1.88 ×$1 = $1.88 (1.88 tonnes)
Bulk levy                 ($0.50/tonne) =N/A

Total levy amount owing = $31,746.47