OPINION: Customs broker rules need reform

  • Posted by Sal Milici
  • |
  • 27 June, 2025

AUSTRALIA’S licensed customs brokers are the critical frontline of our border clearance process, facilitating compliant trade while managing increasingly complex supply chain demands. However, while the nature of global trade and workforce expectations continues to evolve, the regulatory settings governing these professionals remain stuck in a pre-pandemic era. 

Each year, the number of licensed customs brokers in Australia declines, even as import volumes climb. This widening gap places growing strain on a workforce already under pressure. The rise of sole practitioners, the normalisation of remote work and the growing digitalisation of trade systems all point to the need for rules that are more flexible and fit-for-purpose. 

One key example of outdated regulation lies in the strict condition that full import declarations (FIDs) must only be lodged by customs brokers physically located in Australia. Under the current interpretation of licensing conditions, a customs broker travelling overseas for personal or professional reasons, even briefly, cannot legally perform lodgements—even when fully equipped with secure systems, verified identity and full access to their clients' documentation. 

This has become an increasing concern within the customs broking community. Feedback gathered through Freight & Trade Alliance (FTA) Border Compliance Program events has confirmed that the restriction is not only impacting business continuity but also creating a compliance risk. FTA has formally written to the Australian Border Force (ABF) requesting a review of the relevant licensing condition, seeking to establish a framework for overseas lodgement under strictly defined circumstances. 

The intent is not to allow unrestricted cross-border operation of customs brokers. Rather, it is to recognise the realities of modern professional life and enable controlled flexibility without compromising border integrity. 

What’s proposed 

The suggested reform would apply only to licensed customs brokers who are ordinarily resident in Australia and temporarily travelling overseas. Under the current system, even a short personal trip overseas may require a customs broker to transfer clients or pause services entirely. This not only disrupts client relationships but also introduces inefficiencies where a less familiar substitute customs broker must step in. 

FTA's proposal outlines safeguards to ensure the privilege of remote lodgement is not misused: 

  • A clear definition of “temporary” overseas travel—e.g., limited to 30 days. 
  • A requirement for advance written notification to the ABF, with confirmation of return travel arrangements. 
  • A requirement for continued availability to respond to ABF queries within normal timeframes. 
  • The option to place a cap on the number of declarations lodged overseas per customs broker or per corporate licence within a defined period. 

This model mirrors regulatory approaches in other professions—such as legal, accounting or health—where incidental work outside jurisdiction is accepted, provided the practitioner remains compliant with domestic standards. 

Why reform matters 

Customs brokers are already a highly regulated profession, with strict continuing professional development (CPD) requirements, detailed fit and proper person assessments and personal liability for compliance breaches. These high standards reflect the trust placed in customs brokers to interpret legislation, apply tariff codes, assess valuation methods and ensure goods cross the border lawfully. 

Restricting FID lodgement to a specific geographic location—especially in the digital age—feels increasingly at odds with the way modern professionals work. It also risks discouraging new entrants to the profession at a time when Australia can least afford to lose capacity. 

Furthermore, the current restriction may work against other government objectives. Numerous federal strategies promote digital trade, resilience in the face of workforce shortages and greater ease of doing business. Allowing controlled overseas lodgement aligns with these ambitions, without diluting compliance controls.

Looking ahead

FTA has formally asked the ABF to initiate industry consultation on this matter. While we await further advice, it is important to consider that current licensing conditions remain in place and all lodgements must still occur within Australia to remain compliant. 

However, if modernisation of our regulatory framework is genuinely a shared goal—one that enables legitimate trade while maintaining appropriate checks—then allowing customs brokers to work remotely under strict conditions must be on the table. 

Australia’s border processes depend not only on robust enforcement but also on a strong, skilled and sustainable customs broking profession. Updating outdated restrictions is one way to ensure the sector remains viable, responsive and aligned with contemporary trade realities. 

 

Posted by Sal Milici

Sal Milici is General Manager - Trade Policy and Operations at Freight & Trade Alliance

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