According to customs specialists the Australian government is losing millions of dollars in revenue a year due to inadequate regulation and audit follow-up practices.
Platinum Freight Management chief executive Peter McRae came to this conclusion after reading the April 2017 Border Force Goods Compliance Update released by border.gov.au. Alongside with the ABF annual report, McRae has estimated extraordinarily low customs checks.
While out of the 2445 cargo report audits reported (2016/17), the ABF only had a 3% error rate, this means that only on average 306 checks are being performed a month. This is in comparison to the millions of imports that are landing in Australia each month.
While percentages may appear to have a good compliance rate, the amount of unchecked reports means the actual number could exponentially higher than reported. "This shows the enormous opportunity for abuse of the system - and the very high chance importers have of getting away with it" said Mr McRae.
Despite the fact that the undervaluing of goods only carries with it small petty fraud, on a large scale Australia's revenue loss from under or uncharged duty and GST could be in the high millions.
Mr McRae also stated a clear concern regarding the failure to adequately regulate and certify cargo with cargo reporters who were untrained or unlicensed employees of airlines and freighting firms. Because most cargo reporters working for the airlines operate under KPI, the companies are promoting speed delivery of goods through the border, who can obviously a state of continual inaccuracy.
McRae has called for the ABF to install regulation "to ensure adequately trained and licensed brokers handle all reporting in importing, and then partner with them to improve compliance measures and auditing."
This is the only way, the enormous potentiality of petty fraud can be reduced and correct collection of government revenue can be applied.