Customs broking’s problem

The future of Australia’s customs brokers is in jeopardy, Sarah Vogler explains why

The pressure on the Australian customs brokerage community is rapidly mounting. Accompanying the gender disparity, the future of Australian customs brokers is jeopardised by two other disruptive forces: the age and skill gap.

According to data published by Australian Border Force in early 2021, roughly 65% of Australian customs brokers are older than 45. Deduct this from the quantity of current nominee brokers (1633) and you are left with approximately one-third of brokers remaining under age 60 in the next 15 years. With the retirement age in Australia being on average 67, the next two decades will see a significant shortage of brokers in the profession.

These numbers, of course, don’t take into consideration new customs brokers. However, if we look at the statistics between 2016 and 2020, there have been around 33 broker licenses granted per year, according to the ABF data. Adding this into the equation we see two thirds of broker numbers remaining in the next 20 or so years.

While this might not seem like a big concern, global trade markets show no signs of slowing. This is not to say that we won’t encounter some slower periods; however, overall, we need to seriously reflect on how we are going to fill the talent gap that’s left between the number of ageing brokers that retire and the number of younger aspiring brokers with the right skills and acquired experience to replace them.

THE OUTSOURCING PROBLEM

The age disparity is just one factor affecting the next prominent issue, and it’s not the biggest problem. Whilst we might be rapidly losing experienced workers due to retirement, and simple tasks, with the introduction of new artificial intelligence, the skills gaps’ largest issue is outsourcing.

Outsourcing is literally limiting the skills and opportunities that clerks, compilers and classifiers rely upon to gain the acquired experience to become licensed customs brokers. While outsourcing certain elements assists businesses in reducing costs, it creates a shallow pool of domestic talent.

Australia has some of the most complex laws and regulations when it comes to international trade (particularly customs requirements).

It takes several years for someone to complete the prerequisite diploma or other recognised relevant qualification (unless formally exempted from this condition), in addition to acquiring sufficient experience required to carry out the work of a licensed customs broker in a satisfactory and responsible manner.

Further to this prerequisite, prominent brokers are then required to complete an application that is then reviewed by the National Customs Brokerage Licensing Advisory Committee, where a recommendation is made to the Comptroller-General of Customs stipulating whether they support the suitability of the candidate’s aptitude. The process can feel like an eternity; however, it is, respectfully, the most suitable way to satisfy the demands that the profession is dependent on.

Lacking a solid platform in terms of experience poses a consequential problem for ambitious brokers. While businesses might save costs on data labour, they will eventually have to pay higher wages for licensed brokers and increased time barriers for clearances should these trends continue.

LOOKING TO THE FUTURE

Together, with the gender gap, it is clear that the profession is heavily exposed to an uncertain future. The objective here was to reveal our weaknesses and to raise awareness. The next phase is to take a proactive stance in the hope that we reserve the profession’s future.

I am committed to do whatever it takes to advocate, promote, protect and maintain this profession’s future.

But I can’t do it alone. I need your help and I need it now.

“Alone we can do so little; together we can do so much.” – Helen Keller