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Integrated Cargo System - compensation - Thursday, 27th July 2006
Customs has begun to offer compensation to address difficulties experienced by the importing industry following the introduction of the Integrated Cargo System (ICS).
Chief Executive Officer Michael Carmody today announced that Customs had completed its review of 320 out of 433 claims received to date and would shortly begin responding to these claimants about the status of their cases.
Customs is continuing to review the remaining claims received.
Mr Carmody said Customs had accepted that there were problems early in the implementation of the ICS that had contributed to delays in the clearance of cargo, especially shipping containers through seaports in Sydney, Brisbane and Melbourne.
"On the evidence available to Customs, these problems would appear to have been largely resolved by late November 2005.

"Customs has therefore decided to meet storage and transport-related costs where these were the result of a problem with the implementation of ICS that was attributable to Customs.

"This means that of the cases reviewed we have agreed to offer compensation in full to 196 claimants and part-compensation to 72 claimants. These amounts total $492,000."

Mr Carmody said Customs had, at this stage, declined to offer compensation to 52 claimants. However, these claimants would be given the opportunity to provide more information to substantiate their claims.

"Customs is continuing to review the remaining claims received. These primarily fall into two categories.

"First, claims incorporating staff related costs such as overtime have not yet been finalised.

"This is because it is normal for costs to be incurred in the implementation of new regulatory requirements. Claimants will have to demonstrate that the particular costs claimed are directly attributable to a problem with the ICS and above what could normally be expected."

"Secondly, there are also a small number of large, more complex claims totalling $8.4 million. These require detailed review and discussions with these claimants.

"Customs is keen to resolve all these claims as quickly as possible," Mr Carmody said.

He said Customs and industry were working closely in the wake of the independent Booz Allen Hamilton review to realise further improvements in the operation of the ICS.