Surge in reporting errors puts organisations at risk
Surge in reporting errors puts organisations at risk
A recent goods compliance update from The Australian Border Force (ABF) has revealed a troubling increase in reporting errors, with key areas such as tariff classification, invoice term types, valuation dates, and delivery addresses frequently cited as sources of inaccuracies.
BDO tax partner, Leonie Ferretter, said these misclassifications can lead to significant over or underpayments of customs duty and GST, raising concerns for importers.
“The increase in reporting errors identified by the ABF presents significant challenges for importers. These errors can lead to heightened compliance risks, with potential penalties and audits becoming more likely,” Leonie said.
“Misclassifications and incorrect valuations not only impact cash flow but can also strain profit margins, leading to unexpected financial burdens.
“Additionally, operational delays caused by inaccurate declarations can disrupt supply chains, particularly for time-sensitive products, negatively affecting customer satisfaction and business reputation.”
However, these challenges also open up valuable opportunities.
“Businesses can enhance their compliance by investing in comprehensive training programs, ensuring staff are well-informed about customs regulations,” Leonie said.
“Adopting technology solutions, such as automated customs compliance software, can streamline processes and reduce human error.
“Engaging in voluntary disclosure programs also allows businesses to correct mistakes proactively, fostering a culture of transparency and accountability.”
Additionally, as businesses adapt to the evolving landscape of international trade, there is a growing emphasis on sustainability and ethical practices.
“Importers that prioritise compliance may also find new opportunities in aligning with global standards, appealing to environmentally conscious consumers.
“By integrating sustainability into their compliance strategies, businesses can enhance their brand reputation and capture new market segments.”
For media enquiries:
Tate Papworth
Manager, Media
E: tate.papworth@bdo.com.au
Ph: 0433 411 189