JUNE NEWSLETTER 2018
Welcome to the Orbit June Newsletter
We have a number of articles of interest this month. In particular news of a Worldwide to Australia B.A.F. Implementation, The implementation of a Port Infrastructure charge into Adelaide, and numerous government body changes to documentation requirements, regulations and customs clearance requirements.
Some of these include articles from the Department of Agriculture regarding ISPM Wood Packaging requirements for Export Cargo, The proposed implementation of a Bio-Security Imports Levy, changes to China Customs Manifest submissions and an up-date on the Brown Marmorated stink bug season.
There is also an interesting short article on how in conjunction with Symons CLark, Orbit Logistics assisted with the Importation and safe arrival of a dredger for the KDC.
As always, please contact our office with any inquiries on the Newsletter topics.
B.A.F. IMPLEMENTATION WORLD to AUSTRALIA & NEW ZEALAND
Due to the significant increase in Bunker fuel prices since the start of the year, majority of carriers will introduce a bunker recovery cost which will be applied to All Cargo on All Worldwide Trade Lanes into Australia & New Zealand.Where carriers are yet to announce their intention, B.A.F. will be charged to clients accordingly where applicable. This of course will apply to all FCL and LCL cargo.
Effective Date: 1st June, 2018
Origin: All Countries
Destination: Australia & New Zealand
Equipment: FCL Containers
|Equipment Type||Currency||20ft Containers||40ft GP Containers||40ft HC Containers|
|DRY||USD||USD 55.00 – 65.00||USD 110.00 – 130.00||USD 110.00 – 130.00|
|Equipment Type||Currency||20ft Containers||40ft GP Containers||40ft HC Containers|
|REEFER||USD||USD 85.00 – 95.00||USD 170.00 – 190.00||USD 170.00 – 190.00|
Effective Date: 1st June, 2018
Origin: All Countries
Destination: Australia & New Zealand
Equipment: LCL Cargo
Minimum: USD 2.50 Per M3 / Tonne
Maximum: USD 3.50 Per M3 / Tonne
- The Effective date is based on the Shipped on Board Date.
- Cost to be applied will be subject to carrier.
Carriers have advised the B.A.F. recovery amount will be reevaluated on a monthly basis. For more information, please contact email@example.com
New Packing Declarations Implementation
Further to the Department of Agriculture and Water Resources (the department) Import Industry Advice Notice 101-2017 – Implementation of revised Minimum Documentary and Import Declaration Requirements and Non Commodity Information Requirements Policies, we would like to remind you the department has now updated the packing declaration templates. The department has aligned the Non Commodity Information Requirements policy and the Non Commodity BICON Case with the import conditions for bamboo packaging. Bamboo packaging is now acceptable provided it is treated by an approved method prior to export or on arrival and does not need to be declared as unacceptable packaging.
The department will continue to accept packing declarations that are in the current format for consignments shipped on or before 30 June 2018. All consignments shipped on or after 1 July 2018, must be accompanied by a packaging declaration that meets the revised requirements.
Updated templates are now available on the Acceptable documentation templates webpage to enable you to advise your clients / suppliers to start using the new templates.
ISPM 15 Wood Packaging Requirements For Export Cargo
Please be advised ISPM 15 Wood Packaging requirements must be adhered to when export cargo from Australia. It is the responsibility of the shipper to ensure that any cargo containing wood and/or wood packaging is in line with the requirement of the country of destination.
Please note: Cargo may be delayed and additional costs incurred at shippers’ expense, if these requirements are not adhered to.
Please refer the below link to AQIS which provides further information regarding the ISPM 15 Standard, and information regarding the requirements of each country of destinations.
GST on Low Value Imported Goods
The Federal Parliament has passed law that will extend goods and services tax (GST) to low value imports of physical goods imported by consumers from 1 July 2018. Businesses that meet the A$75,000 registration threshold will need to take action now to review their business systems to ensure that they are able to comply.
- Register for GST
- charge GST on sales of low value imported goods (unless they are GST-free)
- lodge returns to the ATO.
These businesses may be merchants who sell goods, electronic distribution platform operators or re-deliverers. For goods imported in a consignment over A$1,000, any GST, customs duty and clearance charges will be charged to the importer at the border under existing processes. This new law is designed so that businesses:
- will not charge GST on a sale when GST will be charged at the border, because an item is either
- worth over A$1,000
- a tobacco product
- an alcoholic beverage
- will not need to charge GST on a sale if it is clear that multiple goods will be shipped to Australia in one consignment worth over A$1,000 – GST will be charged at the border instead.
The existing processes to collect GST on imports above $1,000 at the border are unchanged.
In summary, the reforms:
- make supplies of goods valued at A$1,000 or less at the time of supply connected with Australia if the goods are purchased by consumers and are brought into Australia with the assistance of the supplier
- treat the operator of an electronic distribution platform (EDP) as the supplier of low value goods if the goods are purchased through the platform by consumers and brought into Australia with the assistance of either the supplier or the operator
- treat re-deliverers as the suppliers of low value goods if the goods are delivered outside of Australia as part of the supply, and the re-deliverer assists with their delivery into Australia as part of a shopping or mailbox service that it provides under an arrangement with the consumer
- allow non-resident suppliers of low value goods that are connected with Australia to elect to access the simplified registration and reporting system
- prevent double taxation.
Biosecurity Imports Levy
During the conference question and answer session, a delegate strongly advised against issuing any levy against the stevedore operator with concerns that these costs would most likely be recovered against transport operators via the Vehicle Booking System (VBS). This in turn is likely to be passed down the supply chain with the addition of GST and administrative fees as witnessed with the recent introduction of infrastructure surcharges administered by the stevedores resulting in inflated costs by the time the end importer or exporters is billed.
Another conference delegate (Rod Nairn, CEO Shipping Australia Ltd) raised concerns about the fee on non-containerised sea cargo using an example of a vessel discharging 50,000 tonne of bulk liquids would be liable for a cost recovery fee of $50,000.
In response, Matthew Koval stated that these matters will be further considered as a part of a co-design process. FTA has subsequently communicated with the department putting forward a view that any form of import cost recovery against containerised cargo is best placed against the Full Import Declaration via the Integrated Cargo System (ICS) where the net cost is passed onto the shipper.
World’s Largest Freight Ship Rolled Off the Slipway Yesterday in Shanghai
Universe, with a deadweight of 198,000 tons the world’s largest container ship, launched in Shanghai yesterday. China independently developed and built this leviathan, which has a maximum load capacity of 21,237 standard containers. Universe marks a breakthrough in Chinese high-end ship building and will further hone the country’s competence in marine architecture and transoceanic transport, as China Central Television reported.
At 400 meters long and 58.6 meters wide, the ship’s designed speed is up to about 23 knots (42 kilometers per hour). This craft is the first among the six 21,000-container ultra-large container ships Jiangnan Shipyard (Group) is building for state-backed marine transport and logistics behemoth China COSCO Shipping. Both these shipping concerns are based in Shanghai.
The Universe will mainly ply Asia-Europe shipping lanes. Large container ships sailing these routes can now only carry around 14,000 containers.
Ultra-large container ships have become a major force in the marine transport market in recent years, with over 50 vessels of this type delivered worldwide that are able to accommodate 18,000 to 21,000 containers. More than 50 of these new jumbo container ships will launch in the next two years. Shipyards able to build such high-end types have hitherto mainly been South Korean.
Universe’s launch also signifies China’s maturing ability to build the mega-container ships which will become of ever-increasing importance in cargo carriage along the Maritime Silk Road segments of China’s One Belt, One Road initiative to resurrect its ancient trade routes.
Non-prohibited Goods Without Import Permit
The Department of Agriculture and Water Resources has published Industry advice notice 33-2018 detailing how conditionally non-prohibited goods will be managed if they arrive without a required import permit. http://www.agriculture.gov.au/import/industry-advice/2018/33-2018
Who does this notice affect?
Importers of conditionally non-prohibited goods that require an import permit and agents acting on importers’ behalf.
What has changed?
From 9 April 2018, the department will no longer facilitate the clearance of conditionally non-prohibited goods that arrive without the required import permit.
Goods that require a permit, but arrive without one, including where an application is currently under consideration, will be directed for export from Australian territory or required to be destroyed in an approved manner.
Why are permits required?
The Biosecurity (Prohibited and Conditionally Non-prohibited Goods) Determination 2016 (the Determination)specifies the alternative conditions for the import of conditionally non-prohibited goods. Where there are no alternative conditions for particular goods specified in the Determination an import permit is required.
The import permit assessment and approval process, as set out in the Biosecurity Act 2015 (the Act), provides the department with control over the import of certain biosecurity risk goods through the application of conditions based on technical, scientific, administrative requirements, and the fitness and propriety of the importer and their associates.
Conditionally non-prohibited goods must not be brought or imported into Australian territory, unless the specified conditions are complied with, including holding a valid import permit if required. The Act does not provide for permits to be issued after the goods have been brought into Australian territory, and to do so is a criminal offence with a penalty of 5 years imprisonment or 300 penalty units, or both. The penalty for this offence is 10 years imprisonment and/or 2,000 penalty units if a person obtains a commercial advantage over their competitors or potential competitors. Contravening the Act can also make a person liable to a civil penalty of up to 120 penalty units.
Check if your goods require an import permit by accessing the Biosecurity Import Conditions (BICON) system. If you have goods in transit that may arrive without an import permit contact Imports to discuss your options. www.agriculture.gov.au/about/contactus
Port Infrastructure Levy – Adelaide Terminals
Similar to other states, Flinders Terminal have also advised that due to land-side costs are on the increase, they have to also introduce a levy.Please therefore note that the varied costs will apply effective date are as follows:-
Effective Date: 1st July 2018
AU$38.50 – AU$55.00 Per 20ft or 40ft ContainerCosts are effective on containers entering the terminal on and after the above date. Should you need to discuss the above, please feel free to contact our office.
In the meantime, should you have any questions, please do not hesitate to call our office.
China – Regulatory Changes to China Customs Advance Manifest (CCAM) for All Inbound Cargo Imports
Please be informed that with effect from 01 June 2018 and as per the release of Order No. 56  by China Customs pertaining to changes in regulations to the CCAM, all shippers or parties with inbound cargo imports to China will be required to comply with the following additional regulatory requirements:
Additional Manifest Submission Requirements
• Submission must be made at least 24 hours prior to loading, for all vessels which are going to, via or out of any of the mainland ports in China
• Submission must also include an accurate and a total representation of all goods under the Bills of Lading (BL)
Additional Shipping Instruction (SI) Submission Requirements
|For Consignor||Company Code, Phone Number||Mandatory|
|Authorized Economic Operator (AEO) Status||Optional|
|For Consignee||Company Name||Mandatory|
|Company Code, Phone Number||Mandatory if not “To Order”|
|Contact Person’s Name and Number||Mandatory if not “To Order”|
|Authorized Economic Operator (AEO) Status||Optional|
|Notify Party’s Company Code, Phone Number||Mandatory if “To Order”|
Regulations for Importing Vehicles into Australia
A reminder to all clients Importing vehicles into Australia, that an Import Permit is required to be applied for.
An application for a Vehicle Import Approval, with all necessary supporting documentation will generally be assessed by the Department within 20 working days of receipt (including payment of the lodgement fee). This process will take longer if the necessary supporting documentation is not initially provided, if the original application is incomplete or any further information or clarification is required.
Obtaining a Vehicle Import Approval is only one step in the process of importing a vehicle into Australia. Depending on the type of vehicle, the processes may be complex, involve several organisations, and take many weeks. For an overview of the process, read the 8 steps to import a vehicle.
Permits are required for all of the following forms of vehicles.
New & Used Cars / Race/Rally car or Motorbike’s / New & Used Trucks / Motorbikes / Moped’s / Buses / Motor-homes / Trailers / Motorised Wheelchairs / Power assisted pedal cycle or motorised scooters / ATV’s / Quad Bikes / Go-Carts / Scooters / Small or mini motor-bikes / Any non standard vehicle/special purpose (eg: city utility vehicles – fire tenders, garbage trucks, sweepers, mobile cranes, mobile drilling rigs and mobile plant operators.
If you are unsure if you require a permit or have any questions, please follow the link below or contact our office for further details. https://infrastructure.gov.au/vehicles/imports/
Specific Commodity Name and 10 Digit HS Code Required for PVG Customs
As per Customs New Rules, all import transit cargo via PVG must provide the correct HS code that shows a 10 digit number. The HS code must correspond to the correct Chinese Contents. If not specific to the exact commodity, the cargo will not be prepared for transfer and Customs may reject the cargo in the future.Use this link to ensure the HS code is correct http://www.transcustoms.com/hscode/HScode_Search.asp
Customers exporting goods to China must now provide definitive cargo descriptions on all Export Bookings and Paperwork to avoid delays in Clearance & Delivery in China. Forwarders will need to be specific listing on the House Air Way Bill a detailed description including contents (IN CHINESE), also listing pieces & weight.
THAILAND MARKET: TEMPORARY BAN OF PLASTIC SCRAP SHIPMENTS
Please be informed that with immediate effect, APL Lines has announced a temporary ban of plastic scrap shipments to the following ports in Thailand: Laemchabang, Bangkok and Songhkla.
This is in response to the escalating number of idle containers of plastic scrap in the afore-mentioned ports. Any bookings in APL possession will remain as booked, however any bookings with no container activity will be cancelled accordingly.
Brown Marmorated Stink Bug Season
Further to the recent articles pertaining to the Brown Marmorated Stink Bug Season, the Department of Agriculture & Water Resources has advised that containerised goods from Italy will continue to be profiled (in the departments system) up until the middle of June and that document assessment will be required until the profiling is turned off.
The department has also confirmed that there will not be a charge for the assessment of documents for this service.
In Preparation for the 2018 – 2019 Season, the Department of Agriculture has released the following Information on their website. Please click on the link below.
For in-depth details of the affects the Brown Marmorated Stink Bug has on Australia, please view the below mentioned article.
QANTAS & AIR FRANCE RENEW PARTNERSHIP
- Renewed codeshare agreement between Air France and Qantas;
- Connecting Australia and Paris through Hong Kong and Singapore;
- Codeshare on more than 200(1) weekly flights from 20 July 2018;
- Simplified and improved travel experiences for customers.
Qantas and Air France customers will now have more options to travel between Europe and Australia via Asia following a renewed code share agreement between the two carriers.
Available for booking from 5 June for travel from 20 July 2018, Air France will add its code to Qantas flights between Hong Kong and Sydney, Melbourne and Brisbane and between Singapore and Sydney, Melbourne, Brisbane and Perth.
Air France customers will also be able to access codeshare services from Sydney to five cities on the Australian airline’s domestic network; Canberra, Hobart, Adelaide, Cairns and Darwin.
Under the reciprocal deal, Qantas will add its code to flights operated by Air France between Singapore and Hong Kong and Paris-Charles de Gaulle, as a continuation of flights from Sydney, Brisbane, Melbourne and Perth.
The new agreement will see the two airlines code share on a total of more than 200 flights per week.
Customers will benefit from more seamless travel experiences with single ticket itineraries and through-checked baggage as well as the opportunity to earn points on the new codeshare services.
Air France eligible customers will also be able to access Qantas lounges in Hong Kong, Singapore and Australia, as well as Qantas eligible customers to Air France lounges in Paris, Hong Kong and Singapore.
Patrick Alexandre, EVP Commercial Sales and Alliances at Air France-KLM, said: “We are very pleased to be re-establishing a partnership with Qantas. Thanks to this agreement, the Air France-KLM group will be able to offer one of the best possible travel solutions for its customers from Europe to Australia. It will also deliver a better travel experience for our Business customers, with connections in Singapore and Hong Kong, two of the most popular airports in the world. This new cooperation confirms our group’s desire to expand in the Asia-Pacific region.”
Alison Webster, CEO of Qantas International, added: “This is great news for our customers who want to travel to Europe via Asia, giving them another option to get to Paris and more opportunities to earn Frequent Flyer Points. The return of this popular code share delivers on our strategy of partnering to provide customers with access to an expanded network and more seamless travel experiences wherever they want to fly.”
CHANGES AHEAD FOR AIR CARGO SECURITY SCREENING
PIECE-level screening for air freight soon will be required for all air freight, and not just US-bound freight.
The announcement that the new requirements would come into effect on 1 March 2019 sparked much discussion at the recent Australian Federation of International Forwarders national conference. Office of Transport Security acting assistant secretary, air cargo policy branch Anita Langford said the change in requirements was influenced by July 2017’s terrorist plot to bomb a plane leaving Sydney Airport.
Ms Langford said authorities believe the bomb was built overseas and sent to Australia via air cargo.
“What the Sydney plot showed us is that extremists will use air cargo if they can to transport devices to other extremists who don’t have the capability to construct these kinds of weapons,” she said. “This was a game changer … we discounted a scenario where someone would fly a viable explosive device on an aircraft to use somewhere else. We assumed that if someone had access to such a device they would want to detonate it on the first flight and not take the risk of transporting it.”
She said it was now known air cargo could be a way of moving a bomb around the world, and also a vector for an in-flight attack.
“We now understand that extremists are better able to use air cargo and, given the change to the threat environment, we need to ensure that all items on an aircraft receive an equivalent level of security scrutiny,” she said. “There is no point putting passengers and their checked bags that have been through a high degree of security in the cabin, and then putting un-screened or low-screened cargo on the same plane.”
Ms Langford said there had been a good model for this with the piece-level screening requirements for US-bound air cargo. As part of a panel-discussion after Ms Langford’s presentation, Air Menzies International vice-president South Pacific Geoff Young and others discussed issues with the expansion of the rules.
Mr Young said while implementation of the US-bound freight requirements in July 2017 was a challenge, good systems are in place at the company’s locations.
TRADE RISE REPORTED AT MELBOURNE
In a statement released this week, total container throughput (full + empty) for April totalled 226,867 TEU which was 3% above April 2017 and up 8.4% for the financial year to date. Total container imports for the month were up 1.7% while total exports rose 4.3%. Motor vehicle trade was reported to have increased for the fourth consecutive month with a 21.4% rise over April 2017 to be up 9.4% for the 2017-18 financial year to date.
All monthly gains came from the import sector with overseas imports of new passenger vehicles up 26.6% and imports of transport equipment (commercial vehicles) up 29.9%. After three months of decline, liquid bulk trade returned a 21.6% increase over April 2017 to be up 1% on a year to date basis.
Imports of crude oil and petroleum products were the main commodities responsible for the monthly increase, with gains of 13.5% (+23,700 tonnes) and 40.0% (+79,600 tonnes) respectively. Other break bulk cargoes were described as performing strongly, rising 72.9% over April to be up 28.8% for the financial year to date. The majority of the monthly increase was attributed to imports of non-electrical machinery, iron and steel and metal manufactures.
NextPallet Completes Lightweight Pallet Testing
Start-up NextPallet says its new lightweight shipping pallets, which are lighter than wooden alternatives, have taken test loads of 20,000 pounds without sustaining any visible damage. The pallets use recycled corrugated material and an industrial adhesive instead of nails and staples. Pricing will be ‘competitive’ with regular wooden pallets.
CMA-CGM Deploys Container-Tracking Technology
THE French container liner CMA CGM announced it was deploying a new container-tracking technology on a large scale.The technology, called TRAXENS, allows clients to track shipments in near-real-time.The TRAXENS system centres around a box fixed on the container which measures the container’s position, intensity of potential shocks, outside temperature variations and doors opening and closing.There are plans to add measurement of temperature and humidity inside the container to the technology’s functions.CMA CGM senior vice-president commercial and agency network Mathieu Freidberg said the technology was in line with the company’s “customer centricity strategy”.
“With nearly 19m containers carried in 2017, the generalisation of smart containers in the group’s fleet will allow to collect and analyse a lot of information necessary to improve the service offered to customers and will help them optimize their supply chain,” he said.CMA CGM invested in TRAXENS and participated in its development, leading tests of the technology.
Ombudsman Recommends Increase Container X-raying at Smaller Ports
INCREASED X-RAY capacity at smaller ports was one recommendation handed down by the Commonwealth Ombudsman following a report into the administration of the Customs Act. According to a document released by the office of the Ombudsman, representatives of the Customs Brokers and Freight Forwarders Council of Australia approached them in late 2016 concerned about unnecessary delays from the Australian Border Force’s administration of its customs-related powers.Since July 2012 and prior to the commencement of this investigation, the Office has received 356 approaches related to the border control area of the ABF. The issues complained about were varied, however some of the reasons for delays in inbound freight raised concerns regarding the reasonableness and consistency of the ABF’s handling of the clearance of inbound containerised sea cargo.
In May 2017 the Commonwealth Ombudsman’s Office began an investigation, a report being released a year later.
- The Department increase x-ray capacity at smaller ports to increase inspection capacity and reduce inspection time frames and the need to physically unpack containers and pallets;
- The ABF, in consultation with industry, develop and make publicly available on its website plain English guidance information on the potential messaging capabilities of the Integrated Cargo System when used in conjunction with appropriate software;
- The Department consider one or more of the following: (a) increasing staffing levels at CEFs by placing a lower operational priority on another activity, or (b) proactively adjusting the number of containers inspected in line with operational capacity, or (c) better utilising the surge model at CEFs to increase inspection capacity in periods of peak work load, and (d) increasing the pool of ABF officers who are trained in the inspection and examination technologies employed at CEFs;
- The Department: (a) introduce service standards for container inspection based on the three day free storage period that require the majority of containers selected for inspection to be processed within three days, unless a detection has been made, and (b) maintain annual statistics on the time taken to inspect containers;
- The Department improve complaint handling by providing timely and detailed responses to complainants using subject matter experts;
- In cases where the ABF has been unable to process containers efficiently, consideration should be given to advising complainants of compensation schemes available under the Public Governance, Performance and Accountability Act 2013;
- The ABF work with industry to improve asbestos risk assessment to reduce the repeated targeting of importers with a history of compliance, except where new information suggests such targeting is appropriate;
- The ABF review its website to increase its functionality and user-friendliness for those seeking to import freight by sea and ensure information and links are clearly laid out and updated on a regular basis;
- The Department and DAWR increase collaboration for container inspections and where possible, conduct inspections in the same location and at the same time;
- DAWR revise its cost recovery model to ensure importers are charged the same for the assessment of identical import declarations based on the real cost of proficient operational activity.
This investigation sought to gain an understanding of how the ABF manages border compliance in the containerised sea cargo environment, and how this affects the legitimate supply chain. The investigation was explanded to include the biosecurity functions of the Department of Agriculture and Water Resources (DAWR) as it works collaboratively with the ABF in this space. The Ombudsman described the containerised sea cargo industry as “a complex commercial environment.
Orbit Staff Updates
This month, Orbit Logistics welcomes aboard two new team members.Yvette Boyd joined the Orbit Team May 29 in a part-time Customs Brokerage role, primarily working on our Trusted Trade Application.
We also welcome aboard Gerard Reed.
Gerard commenced with us on the 12th June into the Orbit Sales Team as Sales Business Development. Gerard possesses a high level of Sales knowledge, and is an individual who brings a wealth of experience and energy to the Orbit Team.
Gerard will play a major role in the Business Development of Orbit whilst also maintaining current client relationships.
National and Public Holidays
Around the world in the next month:
Monday 02nd July Canada New Foundland & Labrador
Monday 02nd July Hong Kong Establishment Day