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Protecting our Border Securing our Futu Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container Examination Facility (CEF) Project

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Page 1: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Presentation to Industry

LAE

Monday 12th November 2012

Mr Ray PaulCommissioner

PNG Customs Service

Container Examination Facility (CEF) Project

Page 2: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Project Background

PNG Customs has a requirement to facilitate legitimate trade and travel, collect revenue and perform vital border protection roles to protect the community from illegal and dangerous goods.

The World Customs Organization (WCO), of which PNG Customs is a member, advocates the use of x-ray equipment as a non intrusive method of examination.

To meet the challenges of globalised trade and to deliver a high service standard to business and legitimate trade while maintaining supply chain security, the acquisition of CEF’s was identified as a core element of the Customs Modernization Strategic Action Plan.

Page 3: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Current Project Status

CEF construction has commenced at the Old Lae Airport site with expected completion in 2014.

Two Container X-ray Units (CXU) are currently being assembled in China.

The CEF in Port Moresby will be located Motukea wharf.

The Port Moresby facility will be constructed by the landlord at their cost and leased to PNG Customs.

PNG Customs is committed to delivering this project to the Government and the people of Papua New Guinea by the end of 2014.

Page 4: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Current project status - CXU

Diagram of the Container X-ray Units currently being assembled in China

Page 5: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Design

Leverage from Australian Customs & Border Protection:

Experienced Australian CEF Customs officers are providing advice to the PNG Customs CEF Project and Steering Committees.

CEFs in PNG and Australia have similar design features allowing symmetry between safety standards and operational procedures.

Page 6: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Design - Facility

The CEFs will look and operate similar to Australian CEFs

Page 7: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Design – X-ray Scan Hall

A container being scanned

Page 8: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Design – Examination Hall

Unpacked cargo inside an Examination Hall

Page 9: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

CEF Process

Sea Cargo imports and exports through the Ports of Lae and Port Moresby will be risk assessed through profiling and intelligence.

Selected containers will be transported to the CEF scanning hall for x-ray inspection.

An x-ray scan of containers is a quick process taking only minutes.

The x-ray image will be assessed by trained Customs officers who will analyse the x-ray image.

Based on intelligence, profiling and analysis of the image, the container will be returned directly to the wharf (or container depot) or unloaded for physical examination.

Page 10: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

CEF Process – X-ray

The image will be analyzed by trained Customs officers.

The Container X-ray Unit has material discrimination software that can distinguish between organic and inorganic material.

Page 11: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

CEF Process - Unloading

Certain containers will be unloaded by Customs for examination

Page 12: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

CEF Process - Examination

All containers will be tested for fumigants.

Containers will be partially or fully unpacked by contract labourers.

Cargo will be examined by Customs officers using a range of equipment, tools, x-ray and narcotic trace detection technology.

The cargo will be repacked into the container and be returned to the wharf or a Customs approved container depot.

Page 13: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Service Agreements

Commercial contract arrangements (Service Level Agreements) will be necessary with:

STEVEDORES To load and unload targeted containers required for transport to/from CEF.

TRANSPORT To transport targeted containers to/fromCEF.

UNPACK/REPACK Provide labour to professionally unpack and repack cargo from selected containers to allow

Customs examination.

Page 14: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Container Imports

TEU

Year Source: PNG Ports

Page 15: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

CEF Throughput

Approximately 2% of import containers will be selected for CEF inspection (container x-ray). A small percentage of export containers will be selected.

This equates to 4 - 5 containers being transported to each CEF daily, with 1000 containers to each CEF yearly.

It is expected around 10 - 50% of these containers will be unloaded for physical examination.

It is planned to x-ray more containers once the system is bedded in.

Page 16: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Costs

The PNG Government are funding initial start up costs including ongoing lease arrangements.

PNG Customs and the Importing industry will fund ongoing operational and maintenance costs.

PNG Customs will further consult with industry regarding the details of these ongoing costs. It is likely the CUSTA (import entry fee) will increase.

Page 17: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Customs Key Service Standards

We aim to assess most of your Customs entries within 2 days of lodgement.

We will inform stakeholders or their representatives that their cargo is available as soon as possible after the examination is completed.

We will advise you if there are any delays in releasing your cargoes after the inspection and explain the reasons for delay.

Page 18: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Hours of Operation

Week days

0745 - 1606 hrs

Page 19: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Benefits

Minimal disruption to import and exports supply chain.

Increased levels of sea cargo examination than currently possible.

Increase detection rates of prohibited goods.

Increased detection rates of undeclared or misdescribed goods leading to increased revenue collection.

Enhanced community and industry confidence in Customs capability.

Deterrent factor for criminal entities and deliberate revenue evasion practices.

Improved compliance, timeliness and accuracy of sea cargo reporting by industry.

Page 20: Protecting our Border Securing our Future Presentation to Industry LAE Monday 12 th November 2012 Mr Ray Paul Commissioner PNG Customs Service Container

Protecting our Border Securing our Future

Questions