MAY NEWSLETTER 2020

Posted by ORBIT LOGISTICS
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Welcome to this month’s edition of the Orbit Logistics Newsletter.

Dear Valued Customer

Everyone at Orbit hopes you, your family, loved ones gets through this ongoing and developing crisis.

Its been a challenge to the supply chain during this period, with shipping lines reducing capacity and the airlines reliant on cargo only planes.

The team at Orbit Logistics works everyday to ensure they minimise any delays to your supply chain.

We are continuously reviewing supply chain costs to ensure our clients are either better than or in line with the market.

The release of restrictions is welcome and hopefully as Australians we continue to do the right thing and do our part to get back to life as “normal”as possible.

During these times we appreciate the support of our customers as we all look to get through this together.

The team and I at Orbit fully appreciate this and it drives us to play our part in your business success.

If any anytime you need me please don’t hesitate to reach out and I can look to assist you.

If you need to contact me and you cant get me at the office my mobile number is +61 404 444 447.

Glenn Allison

Managing Director


Customer Advisory – Rate Restoration – Korea, China, Taiwan, Hong Kong to Australia Trade – 1st May 2020

Shipping lines are advising of a potential rate restoration of approximately US$200 / 20’ and US$400 / 40’ from 1st of May 2020, for both dry and refrigerated cargoes in the base ocean freight for cargoes from Korea, China, Taiwan and Hong Kong to ports and points in Australia.

This potential increase will be applied in full on top of existing ongoing market rates to all shipments based on shipment onboard date, and will be subject to ancillary surcharges applicable at the time of shipment.

We will keep you updated when confirmation is received as to the actual quantum of any potential increase.


Web Based Tools to Track your Vessel or Container

The below allows you to track where a ship is on its voyage – This is a virtual map.  You can search by Vessel Name

https://www.myshiptracking.com

The below allows you to track where a container is on its voyage.  You need to enter your container number into the application for the information to be displayed.

https://wheremy.com/container-tracking/

 


Advisory to Customers – 8 Digit HS Code

Dubai Customs has modified the Manifest system to accept Eight-digit HS code used globally instead of existing six-digit in Manifest files. This will help gain data accuracy and identify cargo types including perishable goods well in advance to speed up the process of container clearance at the terminals.

This change in implementation of Eight-digit HS code will be applicable for all the vessels arriving Jebel Ali on 01st June 2020.

 


ACN 2020-20 – Free Rate of Customs Duty 01/02 – 31/07 for hygiene or medical related to COVID-19

 

As outlined in recent Freight & Trade Alliance (FTA) member notices, the Australian Border Force (ABF) has delivered a temporary elimination of customs duties on certain imported medical and hygiene products essential to combatting the COVID-19 pandemic through a new item in the 4th Schedule to Customs Tariff Act 1995. Details of the new Item (concessional item 57) are in Australian Customs Notice (ACN) 2020/20 which gives guidance on claiming the concession and the scope of goods covered by the related by-law.

The new concessional item delivers on a Prime Ministerial direction outlined in an exchange of letters between the Prime Minister and Minister for Trade and Investment.

  • The customs duty reduction applies to imports for the period 1 February to 31 July 2020
  • The Department of Industry, Science, Energy and Resources was involved in determining the goods covered by the measure. Details of the prescribed goods are in the accompanying by-law (by-law 2019608)
  • The measure will streamline trade and make Australia a more competitive market for securing supplies of these essential goods.

Since the ACN was published, FTA has been advised that the ABF has been contacted by a number of customs brokers and importers with questions to clarify the scope of the items. The ABF will be updating the ACN to add the following text for clarification and to address some of the questions.

Concessional Item 57 has been designed to be as broad as possible to ensure the majority of goods required to respond to the current COVID‑19 pandemic can be imported free of customs duty. Goods covered by the concession need to be of a kind that would be commonly accepted as being able to fulfil the criteria set out in parts (a) and (b) of Item 57 and part 3 of by-law No. 2019608.

Concessional Item 57 has been designed to be as broad as possible to ensure the majority of goods required to respond to the current COVID‑19 pandemic can be imported free of customs duty. Goods covered by the concession need to be of a kind that would be commonly accepted as being able to fulfil the criteria set out in parts (a) and (b) of Item 57 and part 3 of by-law No. 2019608.

Please note that in determining eligibility for the concession, it is it not a requirement that the goods are approved by the Therapeutic Goods Administration (TGA). The ABF acknowledges that for many items, particularly personal protective equipment items listed in Part 3(a) of by-law 2019608, there will be some ambiguity as to what goods are covered. In applying the criteria specified in the Item and by-law, the ABF expects importers to apply a degree of common sense.

The non-exhaustive list of tariff classifications, provided in ACN 2020/20, is to help identify prescribed goods. Some goods classified to these subheadings will not be eligible, as they do not satisfy the criteria of Item 57 and the by-law. Equally, there may be other goods classified to subheadings not listed that will be eligible for concessional treatment under Item 57.

All importers must be able to provide a justification that the goods claimed under Item 57 meet the criteria specified in the item and prescribed by-law, if requested to do so by the ABF.


Malaysia now issuing Electronic AANZFTA Certificate of Origin

Orbit Logistics has received advice from the Department of Foreign Affairs and Trade (DFAT) of the following change regarding the issuance of AANZFTA Certificate of Origins from Malaysia

Malaysia’s Ministry of International Trade and Industry have implemented (starting 13 April 2020) electronic endorsement of the Preferential Certificate of Origin by affixing electronic signature and official seal through their ePCO system. The Australian Border Force will accept electronic Certificates of Origin.

For further details on Malaysia’s new process you can visit the MITI website here

Any specific questions relating to importation into Australia, definitive advice can be sought fromOrbit Logistics.

 


Regulatory Issues – Ethanol & Hand Sanitiser

Alcohol-based hand sanitisers and their main components, ethanol and isopropanol, are flammable liquids and transport and storage controlled as Dangerous Goods (DG). If imported goods have been manufactured to WHO guidelines then they will also contain hydrogen peroxide, a strong oxidising agent and another DG.

As most brokers and forwarders will be aware, there is a high risk of serious injury or death if these substances are not handled correctly. In the current environment, however, many new and inexperienced importers are now seeking assistance with transport and importation of these goods and, anecdotally, sometimes purchasing from unknown overseas suppliers and manufacturers. The below guidance may therefore be of assistance to brokers, forwarders and importers.

Materials to assist businesses understand regulations around hand sanitiser include:


NICNAS- Stakeholder Update

The Australian Industrial Chemicals Introduction Scheme (AICIS) will replace NICNAS on 1 July 2020 as the new national regulator of the importation and manufacture of industrial chemicals in Australia.

Anyone who imports or manufactures (introduce) industrial chemicals — or products that release industrial chemicals — into Australia for commercial purposes must:

  • register their business with AICIS and pay a fee
  • categorise each chemical importation or manufacture (introduction) into 1 of 5 categories

Refer to below link to NICNAS Stakeholder Update – April 2020 for latest updates on the Australian regulation of industrial chemicals manufacture and importation, which may be of interest to you and any clients that import industrial chemicals.

To download the NICNAS Stakeholder Update click HERE

 


New empty container park at Port Botany creates supply chain efficiencies

NSW Ports continues to invest in the creation of sustainable and efficient port supply chains with the construction of a new 2.4 hectare empty container park at Port Botany.

Located within the port on Simblist Road, the new empty container park is leased by Tyne Container Services and will operate 24/7, providing a full service facility when it opens in June 2020. It adjoins the existing Tyne (MT Movements) container park to effectively ‘super-size’ the site, delivering an additional 5,000 TEU in empty container capacity.

NSW Ports CEO Marika Calfas said the decision to utilise the port land for empty container storage will deliver much needed empty container capacity to support growth and efficiencies in the container supply chain.

“NSW is an import dominant container market, which can lead to high demand for empty container storage capacity during peak seasons. We continue to invest in Port Botany to ensure its ability to efficiently and sustainably cater for trade growth, and through this development we have optimised the utilisation of existing land to create an additional 5000 TEU in container storage capacity to enhance the productivity and efficiency of empty container movements,” she said.

Tyne Container Services Director, Aaron Powell said, “Through clever design and construction, we’ve been able to create further operational capacity and expand our ability to handle empty container volumes. The new empty container park will have capacity to handle both empty containers bound for overseas re-deployment as well as empty containers for re-use as full exports. This coordinated container movement means we can better service our shipping line customers and we look forward to commencing our new operations in June.”

Construction of the new empty container park was delivered by Ward Civil and took 4 months to complete.


 

 

 

 


 

NSW Announces $2.3BN Economic Stimulus

THE New South Wales government has announced a $2.3bn economic stimulus and health package in the face of the coronavirus.

This package provides $700m in extra health funding and $1.6bn in tax cuts to support jobs.

Key elements include:

  • $450m for the waiver of payroll tax

 

Indonesia-Australia Comprehensive Economic Partnership Agreement

Freight and Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) has received confirmation that on 6 May the Indonesian Government ratified the Indonesia-Australia Comprehensive Economic Partnership Agreement.  This Free Trade Agreement will commence 60 days after ratification, expected to be 6 July.

Those involved in international trade will be aware that Indonesia and Australia are both members of the ASEAN-Australia-New Zealand Free Trade Agreement.  Under this existing Free Trade Agreement most imports of Indonesia goods into Australia are entitled to duty free entry.  This means that the benefits of the Indonesian Free Trade Agreement will be most strongly felt by Australian exporters and service providers who will see improved market access.

In particularly, there will be significantly reduced duty rates for agricultural exporters.

However, the existence of the ASEAN Free Trade Agreement does not mean that the Indonesian Free Trade Agreement should be ignored by importers.   A significant benefit of the Indonesian Free Trade Agreement is a system for using declarations of origin rather than certificates of origin issued by an official body.  An exporter will be able to use declarations of origin after the following occurs:

  • Indonesia notifies Australia that it will implement the declaration of origin system; and
  • the exporter is registered or certified by Indonesia.

The declaration of origin can be made on an invoice, delivery note or other commercial document provided it contains certain mandatory fields.  Declarations of origin:

  • can be made after exportation;
  • can be in electronic format;
  • do not need to be in any prescribed form;
  • only apply to a single importation; and
  • are valid for 12 months after the date of issue.

The ability for declarations to be issued post importation will facilitate the claiming of refunds where a declaration or certificate of origin was not available at the time of import.

The Indonesia Free Trade Agreement also permits Australia to waive the requires for documentary evidence.  This means that there is the potential for the Trusted Traded Origin Waiver Benefit to apply to this FTA.  This benefit is not currently available for the ASEAN Free Trade Agreement. Interestingly, the Indonesian Free Trade Agreement imposes strict requirements on the issuing of a certificate of origin.  The Free Trade Agreement envisages a system of exporters applying for a pre-exportation examination of the origin of the goods to be exporter.  However, the pre-exportation examination need not apply to a good which, by its nature, origin can be easily determined.

It will be interesting to see if Australian bodies issuing certificates of origin engage in physical examination of goods or production facilities before issuing certificates of origin. The Indonesian Free Trade Agreement will apply to goods in transit, or which have not been cleared for entry, on the date of commencement.

We suggest that importers and exports now review what trade with Indonesia is currently attracting customs duty.  Consideration should be given to whether those goods will satisfy the origin requirement of the Indonesia Free Trade Agreement.  If the lack of use of the ASEAN Free Trade Agreement is due to the administrative burden of obtaining certificates of origin, the flexibility of the Indonesian Free Trade Agreement may be the answer to this.

As with any FTA, it is important to review its specific terms and not assume the outcomes regarding origin and duty rates under the Indonesian Free Trade Agreement will be the same as the ASEAN Free Trade Agreement.


Customer Advisory – Important notice on strengthening the accurate declaration of VGM

Ministry of Transport of the People ’s Republic of China recently promulgated the “Decision on Amending the ‘Rules of the People ’s Republic of China on Ship Safety Supervision’ (Ministry decree No. 6 of 2020). The decision once again made it clear that “ the container intended to be delivered to ships for international transport, before delivery of shipping, shipper shall take the whole weighing method or the accumulative calculation method to verify the weight of the container, ensure the
container verified weight does not exceed its normal maximum service quality, and the error of the actual weight less than 5% and the maximum error shall not exceed 1 ton, indicate the authentication information such as the verified weight, the verification method, the validation statement on the transport document and provide to carrier.

The decision specified the circumstances which the shipper is penalized as the subject of liability:

-The error between VGM and the actual weight exceeds 5% or exceeds 1 ton;

-The error between VGM and actual weight is small, but causes the actual cargo weight exceeds the container’s maximum operating gross mass.

The decision will take effect on June 1, 2020. Please visit the official website of the Ministry of Transport of the People’s Republic of China (link here) to browse the full text of the regulation for details. To ensure the safety of cargo transportation, it is essential to create a safe, standardized and orderly market environment. Shipping Lines once again reminds you to submit verified gross mass (VGM) before the deadline and ensure the data accuracy.

Since August 1, 2019, our company has strengthened the control of the accuracy of VGM, the customer who misdeclared VGM for any reason will be charged Heavy Weight – Export Surcharge.  Heavy Weight – Export will be changed to Weight Discrepancy Fee recently. For the losses resulting from the misdeclared VGM, shipping lines have the right to make a claim against the responsible party.


Weight Discrepancy Fee

Effective 01-June-2020, we will verify & compare the declared weight.

The 3 Checks will be performed are:
1. Discrepancy between VGM and weight in shipping instruction is +/- 5000 kgs.
2. Declared VGM exceeds allowable payload as per CSC Plate (excluding SOC)
3. Declared VGM is less than Tare Weight of the container.

Any failures to these checks will result in a Weight discrepancy fee of USD 100 per bill of lading.

We encourage you to declare the correct weight via your preferred channels


Import THC Revision – OOG Cargo *Revised*

 

We have been advised by ANL / CMA-CGM the following change. There has been a change to the import OOG THC for non-standard lifts (no change to standard-lift OOG THC). Please see below changes highlighted.