Unit of competency details

Unit Descriptor 

This unit involves the skills and knowledge required to carry out complex customs valuation in accordance with Customs and related legislation and workplace requirements. It includes applying the relevant method for the complex customs valuation required; identifying the contract for customs valuation purposes; determining the price and elements of adjusted price; and identifying elements of price related costs. It also includes calculating customs value through the application of currency conversion and factorisation principles, and recording valuation information on customs entry/declaration. Note: A primary responsibility of a customs broker is to ensure compliance with Australian Customs and other related legislation. Licensing, legislative, regulatory or certification requirements are applicable to this unit.

Application of the Unit 

This unit applies to individuals working as a customs broker. Work must be carried out in compliance with the relevant Customs and related legislation and workplace requirements concerning customs valuation functions. Work is undertaken in a range of environments including small to large worksites in the customs broking and international trade industries. Work at this level is performed by those who provide leadership of others individually or in teams.

This unit is normally packaged at AQF IV or above.

Employability Skills 

This unit contains employability skills.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the required performance needed to demonstrate achievement of the element. Assessment of performance is to be consistent with the evidence guide.

ELEMENT 

PERFORMANCE CRITERIA 

1 Apply the relevant valuation method 

1.1 Situations where the transaction value method applies are recognised

1.2 Situations where alternate methods of valuation apply are recognised

1.3 Situations where there is insufficient reliable information are identified

1.4 An appropriate valuation method is selected and applied for the complex customs valuation situation identified

2 Identify the sales transaction 

2.1 Importer and seller are identified

2.2 Relevant contract or contracts are identified

2.3 Invoice terms relevant to the contract are identified

3 Identify the import sales transaction 

3.1 Import sales transaction is identified

4 Determine the price in the import sales transaction 

4.1 The price in the relevant import sales transaction is identified

5 Determine the elements of adjusted price for a valuation 

5.1 The correct adjusted price deductions are made, taking into account the relevant legislation and terms of trade

6 Identify elements of price related costs for a valuation 

6.1 Correct price related costs are made, taking into account the relevant legislation and terms of trade

7 Calculate customs value for a valuation 

7.1 The date and place of export are determined in accordance with the Customs Act 1901

7.2 Valuation elements against imported goods using factorisation are apportioned

7.3 Alternate valuation methods are applied where necessary

7.4 Transaction value is calculated by applying applicable rate of exchange

7.5 Valuation Advice Request is prepared in response to identified problems

7.6 The requirement for a Valuation Advice Request is identified

8 Record valuation information on customs declaration in accordance with legislative requirements 

8.1 Valuation related fields on a customs declaration are identified

8.2 Valuation information is entered correctly on customs declaration

8.3 Calculations are checked for accuracy and verified as required

8.4 Completed documentation is retained by relevant personnel in the enterprise in accordance with the requirements of Customs and related legislation and workplace procedures

8.5 Post entry valuation advice to the client is initiated where required

8.6 Relevant documentation is passed on to the client

REQUIRED KNOWLEDGE AND SKILLS 

This describes the essential knowledge and skills and their level required for this unit.

Required knowledge :

• Customs Act 1901and related legislation relevant to the conduct of a custom valuation

• Relevant OH&S and environmental protection procedures and guidelines

• Workplace procedures and policies for carrying out customs valuation

• Focus of operation of work systems, equipment, management and site operating systems for carrying out customs valuation

• Problems that may occur when carrying out customs valuation and appropriate action that can be taken to resolve the problems

• Information on relevant aspects of customs valuation

• Types of goods and related handling and documentation requirements including dangerous goods and hazardous substances

• Sources of information on new developments in customs valuation practices

• Ways of learning the skills and knowledge required for new developments in customs valuation practices

• Cultural differences amongst customers, internal and external freight contacts and within the customer service team and their implications when providing customs valuation services

• Documentation requirements for customs valuations

• Penalties and the infringement notice scheme as it applies to goods incorrectly valued

Required skills :

• Negotiate, communicate and liaise effectively with clients and others when conducting customs valuations

• Read and interpret instructions, procedures and information relevant to the conduct of customs valuations

• Select and use appropriate workplace colloquial and technical language and communication technologies in the workplace context

• Identify, interpret and learn skills and knowledge required for relevant new developments in customs valuation practices

• Follow the designated plan for the customs valuation work

• Maintain work records

• Select and use relevant computer/communication/office equipment when carrying out customs valuations

• Enter information using appropriate technology when carrying out customs valuations

• Work collaboratively as part of an operational team

• Modify activities depending on differing workplace contexts, risk situations and environments, including taking appropriate initiatives within allowable limits

• Solve problems that may arise when carrying out customs valuations

• Adapt appropriately to cultural differences in the workplace, including modes of behaviour and interactions with others

• Work systematically with required attention to detail without injury to self or others, or damage to goods or equipment

• Select and use required personal protective equipment conforming to industry and OH&S standards

EVIDENCE GUIDE 

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required knowledge and skills, the range statement and the assessment guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

• The evidence required to demonstrate competency in this unit must be relevant to and satisfy all of the requirements of the elements and performance criteria of this unit and include demonstration of:

• applying the relevant method for a customs valuation
• identifying the import sales transaction for customs valuation purposes
• recording valuation information on customs entry/declaration
• calculating customs value for a customs valuation
• identifying elements of price related costs for a customs valuation
• determining the price and elements of adjusted price for a complex customs valuation

Context of and specific resources for assessment 

• Performance is demonstrated consistently over a period of time and in a suitable range of contexts
• Resources for assessment include:

• a range of relevant exercises, case studies and/or other simulated practical and knowledge assessment, and/or
• access to an appropriate range of relevant operational situations in the workplace

• In both real and simulated environments, access is required to:

• relevant and appropriate materials and equipment, and
• applicable documentation including workplace procedures, regulations, codes of practice and operation manuals

Method of assessment 

• Assessment of this unit must be undertaken by a registered training organisation
• As a minimum, assessment of knowledge must be conducted through appropriate written/oral tests
• Practical assessment must occur:

• through activities in an appropriately simulated environment at the registered training organisation, and/or
• in an appropriate range of situations in the workplace

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance.

Information on relevant aspects of customs valuation may include:

• identification and calculation of various aspects kinds of valuation such as:

• royalties and licence fees
• commissions
• rebates
• packing costs
• rejection of transaction value
• related parties
• transfer pricing

• alternate valuation methods
• case law as it applies to valuation
• Valuation Advice Request and rulings

Transaction value is:

• the main method for valuing goods for customs purposes

Alternate valuation methods may include:

• Identical Goods Valuation
• Similar Goods Valuation
• Deductive Goods Method
• Computed Value Method
• Fall Back Method

INCOTERMS 2000 are:

• the ICC Official Rules for the Interpretation of Trade Terms, International Chamber of Commerce, 1999

Adjusted price may include:

• deductible financing costs
• post importation costs
• Australian inland freight and insurance
• deductible administrative costs
• overseas freight and insurance

Price related costs may include:

• production assist costs
• packing costs
• foreign inland freight and insurance
• commissions
• royalties and licence fees
• proceeds of resale

Factorisation means:

• the apportionment of costs over a line value (each line of the import declaration for which there is a separate classification)

Valuation advice may include:

• the completion and lodgement of an official Valuation Advice Request with Australian Customs
• advice to the client to pay under protest

Post entry valuation advice may include:

• advising the client what options are available if there is disagreement with the customs value

Verification may include:

• other colleagues within the enterprise
• customs brokers

New developments in complex customs valuation practices including changes in:

• case law
• technology
• products
• regulations
• legislation
• processes
• systems

Information on new developments in customs valuation practices may be obtained from:

• internal networks such as: own operational team, staff in other departments, support staff, managers, training staff, etc.
• regulatory authority, WTO, WCO
• bulletins, journals, magazines, books, etc.
• internet websites
• internal and external training programs

Ways of learning skills and knowledge required for new developments in customs valuation practices may include:

• external training programs
• internal training programs
• reading independently
• coaching in the workplace
• online learning on a computer
• networking with relevant internal and external contacts

Depending on the organisation concerned, workplace procedures may be called:

• standard operating procedures (SOPs)
• company procedures
• enterprise procedures
• organisational procedures
• established procedures

Communication in the work area may include:

• phone
• electronic data interchange (EDI)
• fax
• email
• internet
• RF systems
• oral, aural or signed communications

Documentation and records may include:

• Customs Act 1901 and related legislation
• World Trade Organisation Valuation Agreement
• Australian Customs Manual on Valuation
• INCOTERMS 2000 ICC Official Rules for the Interpretation of Trade Terms, International Chamber of Commerce, 1999
• manifests, delivery notes, special clearances, consignment notes, authorised weighbridge certificates, and special clearances
• internal documentation used for customs valuation
• operations manuals, job specifications and induction documentation
• manufacturers specifications for equipment
• workplace procedures and policies
• client instructions
• award, enterprise bargaining agreement, other industrial arrangements
• quality assurance procedures
• emergency procedures

Applicable legislation and regulations may include:

• Customs Act 1901and related legislation
• privacy legislation
• export/import/quarantine/bond requirements
• workplace relations regulations
• equal opportunity legislation
• equal employment opportunity and affirmative action legislation
• relevant state/territory OH&S and environmental protection legislation

Competency Field 

A - Handling Cargo/Stock