Hidden within last week's Federal Government Budget was an announcrment of an increase in the Import Procesing Charge (IPC) effective from 1st January 2014.
This charge is collected and paid via the import declaration made at time of consignment importation.
Currently high volume low value consignments up to $1000 value for duty do not incur any charge. There are currently approximately 9 million consignments currently falling into this category. Consignments in excess of $1000 dollars curently pay - sea consignments $50.00 - air consignments $40.20 per declaration.
From 1st January 2014, it is peoposed the following charges will apply -
* High volume low value consignments up to $1000 value for duty - no change,
* Consignments having a value for duty in excess of $1000 to $10000 will pay the current rates - sea consignments $20 - air consignments $40.20.
* Consignments in excess of $10000 will be increased - sea by $102.60 to $152.60 and air by $81.90 to $122.10.
These increase will mean that cost recovery relating to import and trade related activities will top $440 million per annum.
Seeing that the Opposition have stated that they hold the option to maintain the changes in the Budget it is possible that this proposal will be adopted regardless of whom becomes the Government in September.
