Australia and New Zealand Sign Arrangement to Streamline Trade

Australian Border & Protection

Trusted Trans-Tasman exporters will be rewarded with fast-tracked customs processing at Australian and New Zealand borders under a new arrangement between the two countries.

The Australian Department of Immigration and Border Protection and New Zealand Customs Service (NZ Customs) signed a Mutual Recognition Arrangement (MRA) last Friday, to recognise the supply chain security programmes of both countries.

Australian Border Force (ABF) Commissioner Roman Quaedvlieg, and NZ Customs Comptroller, Carolyn Tremain, met at the World Customs Organization’s sessions in Brussels to sign the MRA.

Commissioner Quaedvlieg said the arrangement would benefit members of the Australian Trusted Trader (ATT) programme and the NZ Customs Secure Export Scheme (SES).

“It is anticipated that the MRA will allow $3 billion of New Zealand exports to Australia to be fast tracked,” Commissioner Quaedvlieg said.

“As we increase membership of the ATT programme, we expect that $7.5 billion of Australian exports to New Zealand will benefit from the MRA by 2020.

“The MRA provides benefits to trusted traders of both countries and provides border agencies greater end-to-end assurance of imports and exports.

“Reducing the regulatory duplication between the two schemes will make it easier for Australian and New Zealand businesses to trade with each other and boost the international competitiveness of both countries.”

NZ Customs Comptroller Carolyn Tremain said the two agencies already work closely together and this arrangement will provide further assurance over trans-Tasman trade for both countries.

“The MRA means New Zealand’s Secure Export Scheme members will benefit from a faster and smoother border experience with our closest neighbour, and gives traders on both side of the Tasman a competitive advantage,” Ms Tremain said.

Source: Australian Border & Protection 

ANL, Coscon and OOCL under A3 alliance to launch Asia-Oz loops

OOCL has unveiled the joint services it will operate in conjunction with partners ANL and Coscon under the newly formed Asia Australia Consortium (A3) that will focus on the trade between North East Asia and Australia.

The A3 will launch three dedicated services, namely the Northern Express, Central Express and Southern Express, connecting 10 major North East Asia ports with Sydney, Melbourne and Brisbane.

Subject to regulatory approval, the A3 plans to launch the new services starting from September or October.

The port rotation for the weekly Northern Express is Yokohama, Osaka, Busan, Qingdao, Shanghai, Kaohsiung, Melbourne, Sydney, Brisbane and back to Yokohama.

The Central Express is also a weekly service, with the following port rotation: Shanghai, Ningbo, Sydney, Melbourne, Brisbane, and back to Shanghai.

The port rotation for the weekly Southern Express is Kaohsiung, Xiamen, Shenzhen-Shekou, Hong Kong, Sydney, Melbourne, Brisbane and back to Kaohsiung

Illegal Logging Laws: Extension to 'soft-start' compliance period

On 25 February 2016, the Australian Government released the final report of the KPMG led Independent review of the impact of the illegal logging regulations on small business.

The report proposed a package of regulatory and non-regulatory reforms to minimise the costs of complying with the Regulation.

In light of this process and the potential for further changes to the Regulation, the department has decided to extend the initial 'soft-start' compliance period until any amendments from the KPMG review have been finalised. This is expected to extend the soft-start period until late 2016 or early 2017.

​A further Compliance Advice Notice will be released to advise when the 'soft-start' compliance period will end.​

20Cube are available to discuss further and assist clients with ensuring they comply with the Regulations.

Changes to Import Requirements for Used Machinery, Used Equipment & Used Parts

The Department of Agriculture & Water Resources has issued an industry advice notice regarding the importation of used machinery, equipment and parts.

Importers, customs agents and brokers have been advised that from 16 June, 2016, an import permit will no longer be required, a change that coincides with the commencement of the Biosecurity Act 2015.

How does this affect you?

If you're an importer of used machinery, equipment and parts, then you will no longer need to obtain a permit. The aim of the new arrangment is to reduce costs and regulatory burden to importers.

BICON was updated on 16 June to reflect the change.

Your opportunity to contribute to revised import conditions

The Department of Agriculture and Water Resources has commenced a review into the management of biosecurity risks associated with imported used machinery and equipment, which may result in further changes to import conditions​ for these goods. 

A discussion paper is expected to be released in July/August 2016 outlining the proposed changes and affected stakeholders will be invited to provide comment.   

  

Further information

Any enquiries regarding this change, please contact your 20Cube team for more information.

Reminder: Import permits required prior to arrival of goods

With the commencement of the new Biosecurity Act 2015 on 16 June 2016, importers are reminded of the need to obtain any relevant import permits prior to the arrival of goods in Australia.

If you intend to import goods into Australia that require import permits eg fertilizer products, you must comply with the new legislation.

Under the Biosecurity Act 2015, the department cannot issue an import permit for goods that have already landed. In the past, the department has facilitated imports that have landed without a permit by allowing importers to apply for a permit. This will no longer be the case.

For more information, please visit the DAWR website.

AADA increases China-Australia rate US$300/TEU from July 1

Member lines of the Asia Australia Discussion Agreement (AADA) will levy a US$300 per TEU rate increase from July 1 on cargo from mainland China and Hong Kong to ports and points in Australia.

This increase will apply in full on top of existing ongoing market rates and will be subject to accessorial surcharges applicable at the time of shipment.

AADA is a voluntary discussion forum of 16 ocean carriers serving the trade from North and East Asia to destinations in Australia.

Members include ANL Singapore, APL, China Shipping Container Line (HK), Cosco, Evergreen Line, Hamburg Sud, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, "K" Line, Maersk Line, MSC, MOL, NYK, OOCL, PIL, Sinotrans Container Lines, TS Lines and Yang Ming.

For more information, please contact 20Cube.

AADA bunker surcharge rises to US$150/TEU, $300/FEU on June 18

Member lines of the Asia Australia Discussion Agreement (AADA) have increased the bunker surcharge US$150 per TEU and US$300 per FEU for dry and refrigerated containers from Japan, Korea, mainland China, Hong Kong and Taiwan to ports in Australia from June 18.

This reflects recent increases in the price of oil at Hong Kong and South Korea, the AADA said. Customers requiring further information concerning the bunker surcharge are to contact the member lines.

"AADA members have adopted voluntary policy guidelines and have reached a non-binding consensus on the above arrangement," the AADA statement said.

Member AADA lines are ANL Singapore, APL, China Shipping Container Line (HK), Cosco, Evergreen Line, Hamburg Sud, Hanjin Shipping, Hapag-Lloyd, Hyundai Merchant Marine, "K" Line, Maersk Line, MSC, MOL, NYK, OOCL, PIL, Sinotrans Container Lines, TS Lines and Yang Ming.

New Biosecurity Legislation in Effect from 16 June 2016

Important changes to Australia’s biosecurity system come into effect on 16 June 2016 with commencement of the Biosecurity Act 2015.

The Biosecurity Act 2015 replaces the Quarantine Act 1908. The Biosecurity Act introduces new requirements that will affect how the Department of Agriculture and Water Resources manages the biosecurity risks associated with goods, people and conveyances entering Australia. We aim to make compliance with the new laws easy for you and your business. 

Are you an importer? Find out more about what is changing for your business.

Update: Australian Trusted Trader Programme

T​he Australian T​rusted Trader​ Programme (ATTP)​ seeks to provide trade facilitation benefits to importers and exporters that demonstrate strong security practices and a history of​ ​compliance.

As previously advised, the ​ATTP is currently undergoing its pilot phase,and​ ​consists of three phases. Stage 1 had four initial Australian exporters participate and stage 2 targeted a further 20 Australian importers and exporters to also participate.​ ​Stage 3 commenced this year​ ​where more importers and exporters with complex supply chains​ ​were​ ​selected.

Service providers, including 20Cube,​ ​will also progress in participation, supporting a target to have between 40 and 50 companies participating in the pilot.​ ​It​ ​is ​​​​​​expected to be fully operational and open to all international supply chain participants from 1 July 2016 onwards.

Some benefits identified for importers and exporters who become​ ​part of the ATT​P will include​:​

• Reduced disruptions to supply chain processes (fewer interceptions at Customs barrier, and priority service)​ ​
• ​Reducing International Supply Chain costs and
• Decreasing stock transit time-frames​ ​Mutual Recognition Arrangements with Australia's key trading partners​ ​Priority consideration of trade advice rulings and applications

The DIBP​ (Customs)​ added that as the pilot develops, more Account Managers will be added to the programme as a single point of contact and to maintain the relationship between DIBP and ATT​P​​ participants​.

We've also learned that the ​Self Assessed Questionnaire (​SAQ​)​ stage takes longer to complete, due to the amount of information required, complexity/diversity of business models and competing priorities, which has resulted in the whole pilot process taking longer than anticipated.

For more information, visit the DIBP website. 

Protect or Perish - The Quandry for Government in a Free-Trade World

The recent announcement that steel producer Arrium was moving into voluntary administration threw up a number of comments that many of its problems arose from the alleged international “dumping” of steel products by Asian exporters.

There is no doubt that a glut of steel production in Asia has created issues for Arrium and for similar local steel producers in the EU and the USA.

However, at the same time that Arrium is experiencing difficulties, the other major Australian steel producer in BlueScope recorded excellent results, which would suggest that foreign competition is not the sole reason for Arrium’s problems.

Still, the media continues to carry regular stories regarding the evils of the foreign supply of goods, jobs and investment allegedly threatening Australian business, ownership and jobs.

This provides a quandry for all levels of government who welcome such foreign involvement and commit to it in free trade agreements (FTA).

It is especially an issue at the federal level in an election year – how to continue to promote the strong free trade agenda while still preserving some level of protection for legitimate local interests which may be “damaged” by that trade.

A brief summary of relevant considerations is set out below:

• No such thing as “total” free trade: There are many areas where regulation is permitted in the interests of ‘fair’ trade, such as the WTO agreements on anti-dumping and countervailing.
• Loophole closures: Our trade remedies regime has been subject to significant amendments in the last few years, much of which seems to have been aimed at “closing loopholes” or providing “further protection against unfair competition”.
• Australia’s Tariff Concession order regime: Put simply, the TCO is supposed to allow duty-free entry for goods for which there is no local production of ‘substitutable’ goods.
• Australian Quarantine measures: Our “quarantine” regime is also subject to international pressure. Government maintains that we have a robust and scientifically-based regime yet many of our trade partners see our regime as being unduly restrictive and a “non-tariff barrier” to trade.

In amongst this, there is the task for all Australian political parties to balance legitimate interests which can appear to be in direct competition.

Australian business wants open markets overseas for export of Australian goods and services as well as increased opportunities for outbound and inbound investment. It is hard to reconcile that to a 

politically expedient desire to close off parts of our economy in a way not supported by sound policy. Perhaps the real test of policy in this area is to help those whose lives are affected in the pursuit of trade outcomes of benefit to us all.

A final thought – there is evidence in the US that manufacturing jobs are being reintroduced there, turning back from China and elsewhere in Asia where production has become more expensive and less convenient. Over time there may be a similar turn in the wheel for other economies.

This article has been edited and reproduced with permission of Andrew Hudsons, Parnter of Melbourne office of Gadens. For the full unedited article, please visit the Gaden website