Background:

Faced with GST laws that created complex interpretation, inconsistent compliance and an unintended burden on overseas entities, the Australian International Freight Forwarding, Customs Broking, Express Carrier and Removalist industries, in 2006, formed a composite interest group called the Australian International Service Providers (AITSP), comprising:

• Australian Federation of International Forwarders (AFIF)
• Customs Brokers and Forwarders Council of Australia (CBFCA)
• Confederation of Asia Pacific Express Carriers (CAPEC)
• Australian International Movers Association (AIMA)

Utilising the expertise of, initially, PricewaterhouseCoopers and more recently Ernst and Young, the AITSP combined to tackle the issues related to cross-border transport application of GST by making a formal submission to the Dept of Treasury. The exercise, financed by industry through the use of the Tradegate industry development funds, was successful in achieving a change in legislation, which became effective as of 1 July 2010.

However this action created a number of unintended consequences which still continue to affect members today and relate primarily to issues involving the "place of consignment" and, in particular, to the Ocean freight import side of the business.

The AITSP made submission earlier this year to the Federal Dept of Treasury in regard to these matters and we have now received advice from Mr Bill Shorten, the Assistant Treasurer, that he has instructed Treasury to consult with the AITSP and the ATO with a view to developing suggested legislative changes to the GST Law.

We are pleased with this breakthrough and will keep you advised on developments.

Further enquiries may be directed to AFIF by sending an email to afif@afif.asn.au

Regards,