Progress Reports - Export reform for the Organic industry

The Government is funding the Export Certification Reform Package, worth $127.4 million. It includes fees and charges to return industry to full cost recovery.

As part of the Export Certification Reform Package, $85.3 million has been provided for fee rebates to assist exporters to transition to full cost recovery. This funding has been used to provide a 40 per cent offset of the full cost impact on export industries to 30 June 2011. The rebate has been automatically applied to all invoiced fees and charges.

Key reform priorities include developing new service delivery models, reviewing fees and charges to align with the new service delivery models, and developing sophisticated IT systems to support the new service delivery models.

Benefits from the reform will include:

• reforms to service delivery
• upgraded IT systems
• reviewed and modernised export legislation
• regional based fees and charges
• maintaining and improving market access.

Service delivery model

The Organic service delivery model is being revised to reflect the new regional auditing function. Previously audits were conducted by a Canberra Australian Quarantine and Inspection Service (AQIS) official.

Revised fees and charges

The Organic fees and charges model will reflect industry’s return to full cost recovery as agreed in 2009. For the 2010/11 audit cycle AQIS has absorbed the cost of audits. AQIS will introduce new fees and charges during the 2011/12 financial year which will include fees for auditing and in-office services.  The new fees and charges underpin broader changes in operations that will provide greater flexibility to the export industry.
AQIS will be working with industry to establish appropriate fees and charges to ensure that they are equitable. More information will be provided on this introduction as it is available.

New IT systems

Audit Management System

An Audit Management System (AMS) is an interactive web portal that will support the revised service delivery model for export certification. It will streamline data entry, analysis, reporting and replace current disparate manual systems. The AMS is being developed in the first instance to span the dairy, fish, grain, horticulture and meat export industries. This is to ensure the new system meets legislative requirements and to maintain confidence in the system by our export partners.  It is proposed that this system will be expanded in the near future to provide audit information on Organic products not covered under the other commodities.

Manual of Importing Country Requirements (MICoR)

A new IT system (called MICOR) is being developed to include all known importing country requirements for dairy, fish, grain, horticulture, live animal and meat exports. The data in existing databases (PHTYO for horticulture, grain, ANIMEX for live animal, Vol II for meat) is now being reviewed for currency to ensure it will translate easily into the new system.

MICoR will, in the future, contain importing country requirements for Organic products that require AQIS certification in addition to the Organic certification issued by the AQIS authorised Organic certifying organisations.

About the Export Certification Reform Package (ECRP)

The $127.4 million ECRP aims to deliver more efficient export certification and inspection services, and reduce AQIS fees and charges for exporters. This reform will result in a world-class export certification system based on improved Australian legislation, developed in partnership with industry and government.

Continuing to meet importing country requirements, and facilitating market access to grow Australia’s $32 billion agricultural export industry, are priorities under the package.

Current fees and charges were agreed with industry in 2009 and were associated with the reform package which included a 40 per cent rebate until 30 June 2011. This is in line with the Beale Review, which recommended export certification functions should return to full cost recovery.

More information on ECRP is available on the DAFF webite.