Become an Australian Trusted Trader

As global supply chains grow longer and more complex, and commerce moves at increasing speeds through an array of intermediaries, government regulation, systems are constantly evolving to keep pace. Over 50,000 Australian businesses are engaged in international trade, with an ever-growing public appetite for international e-commerce. These transactions are regulated by more than 30 Government agencies operating under approximately 200 pieces of legislation. With this increasing complexity, the need for best practice intensifies, and so too does the need for trust and confidence between the people and organisations involved.

On 1 July 2016, the Australian Trusted Trader Program (ATT) commenced following a successful pilot phase that began on 1 July 2015. The Australian Government has recognised the importance of integrity in the supply chain and sought to foster an environment of global competitiveness with the introduction of the Australian Trusted Trader Program.

The Australian Trusted Trader is a voluntary program that recognises Australian businesses meeting international supply chain security and trade compliance standards. The program has been designed and developed in partnership between the Australian Government and industry, with the aim of creating a fast and seamless trade experience for Trusted Traders. The ATT is a move towards modernising the border environment, aiming to foster streamlined, reliable, predictable, and, most importantly, secure trade by pre-screening businesses and their supply chains, rather than assessing risk on each shipment.

By the end of 2020, the program was expected to have 1,000 participants from across all sectors of the supply chain. Border Force aims to have 80% of trade covered by the Trusted Trader program within five years. This will enable Border Force and other Government Departments to provide flexible outcomes to Trusted Traders regarding the import and export of goods.

What are the benefits of being an Australian Trusted Trader?

Once accredited, businesses have access to a growing range of benefits that simplify their customs processes, save them time and money, and provide a significant competitive advantage.

• International Standing and Recognition: Sixty-four countries (including all of Australia’s major trading partners) have some form of trusted trader program, with over 40,000 international business participants. A further 16 countries are developing Trusted Trader programs. Australian Trusted Traders are recognised globally for their compliant and trustworthy security and trade practices.
• Enhanced Supply Chain Security and Global Competitiveness: The ATT contributes to economic growth and prosperity and was included in the Australian Government’s G20 growth strategy. Through the ATT, the Australian Government develops bilateral Mutual Recognition Arrangements (MRAs).
• Reduced Intervention for Legitimate Trade / Lighter Touch at the Border: The introduction of the ATT marks a step away from the one-size-fits-all approach to clearing goods crossing the border. By removing unnecessary burdens on compliant entities and increasing focus on high-risk and unknown entities, the ATT ensures the accelerated clearance of low-risk transactions and allocates increased resources to high-risk and unknown entities. This provides faster border clearance for Trusted Traders in recognition of the lower risk that they present at the border.
• Dedicated ABF Account Manager: Trusted Traders receive a dedicated account manager who will be the primary point of contact between the Trusted Trader and the Australian Border Force, helping to unblock log jams that arise.
• Priority Trade Services and Advanced Rulings: Trusted Traders have access to advanced rulings for requests on tariff advice, valuations, and origin rulings. This includes the Origin Advance Ruling available exclusively for Trusted Traders who import goods under the China-Australia Free Trade Agreement (ChAFTA). This special ruling replaces the need for multiple conventional advance rulings, is valid for five years, and can be applied to multiple tariff classifications and rules of origin criteria. Preliminary findings indicate savings of up to $1.6 million each year for one Trusted Trader under ChAFTA alone.
• Differentiated and Prioritised Examinations: Trusted Traders are recognised as low risk and are subject to faster border clearance. They can also look forward to reduced border holds, and if they do receive a border hold, their containers will be x-rayed before containers of non-Trusted Traders.
• Mutual Recognition Agreements (MRAs): Trusted Traders have access to trade facilitation benefits in countries with which Australia has signed an MRA. These growing numbers of MRAs provide priority treatment at the border and are estimated to provide industry with benefits of more than $175 million over the next 10 years. There are now six MRAs in place with New Zealand, the People’s Republic of China, Canada, Hong Kong, and Singapore. Preparations for an MRA with the United States of America and Japan are in progress. The full implementation of the Australian-Korean MRA, for example, improves predictability, certainty, and speed to market through expedited clearance, reduced documentation and cargo inspections, and minimises disruption to trade flows.
• Streamlined Reporting Arrangements: From the 2017-2018 financial year, alternative clearance arrangements are available to Trusted Traders which reduce the administrative burden on clearing goods. This includes Consolidated Cargo Clearance for Importers, meaning one form and one charge for consolidated cargo for all sea and air cargo types.
• Duty Deferral: From the beginning of the 2018-2019 financial year, duty payments on imported goods will be deferred for a set period, improving cash flow and reducing delays at the border by enabling Trusted Traders who defer GST to be able to defer the payment of some customs duties on goods.
• No Need for Certificate or Declaration of Origin (CoO/DoO): Australian Trusted Trader importers will no longer have to obtain a Certificate of Origin (CoO) to claim preferential rates of duty under more free trade agreements, including the Australia-Chile Free Trade Agreement, Japan-Australia Economic Partnership Agreement, Korea-Australia Free Trade Agreement, Malaysia-Australia Free Trade Agreement, Singapore-Australia Free Trade Agreement, and Thailand-Australia Free Trade Agreement.
• Trader Identification Number (TIN): Implementation of a TIN unique to each Trusted Trader will expedite recognition by MRA partners to reduce red tape and improve the efficiency of the border clearance process.
• Streamlined Visa Access: Accredited businesses gain streamlined access to the Temporary Skilled Shortage (TSS) visa and the APEC Business Travel Card.
• A ‘Seat at the Table’: Providing an opportunity to help shape the program and its associated benefits.
• New Business Opportunities: Accredited businesses have reported that the competitive advantage offered by ATT has helped them attract new business opportunities.

These new benefits complement the existing benefits already in place for Trusted Traders.

The Impact of Not Being an Australian Trusted Trader

The ATT has been designed to free businesses from the regulatory burdens of international trade that they currently face. As volumes increase, those not in the program will be left in the go-slow queue. Can you afford not to be in the program? It should not be expected that remaining outside the ATT will simply mean the status quo remains.

The way your cargo is processed at the border has changed. The remaining 20% of trade (not covered by ATT) will become the focus of tactical intelligence and other compliance strategies. Importers who do not participate in the voluntary code will receive greater attention at clearance, which will have flow-on impacts on time and cost. It’s simple maths: through the accreditation of 80% of Australian businesses, the resources of Border Force will be significantly freed up to focus their activity on those who have either not sought or failed to gain accreditation. It’s easy to see that scrutiny will increase over time as it becomes apparent that these businesses pose an increased security risk.

Not only are your competitors enjoying the advantages of reducing their cost base associated with customs clearances, but they are also gaining the benefits of increasing their speed to market and reducing their standing inventory. This puts them in a better position to respond to your market and potentially your customers.

What are the Costs of Becoming an Australian Trusted Trader

There are no application or ongoing accreditation fees associated with the Australian Trusted Trader program. However, there may be some business costs associated with meeting the program’s required standards.

How to Become Part of the ATT?

The ATT program is open to all Australian Businesses that hold an ABN, are actively involved in the international supply chain, and have two or more years of trading and compliance history. As with many Government programs, even the idea of participating can feel daunting, but Border Force wants you involved. The more businesses that participate in the program, the more streamlined and efficient the clearance process will be, and more benefits will flow.

The application process has recently been improved, with red tape stripped out and accreditation timeframes sped up. Most businesses can now be accredited within 60 days of applying.

The steps to become part of the ATT are:

1. Verify if AT&T is the right fit for your business.
2. Complete an Expression of Interest form.
3. Complete the Self-Assessment Questionnaire (SAQ). Once the expression of interest is complete, an ABF account manager will assist you in completing an SAQ. The questions in the SAQ explore the business’s international supply chain activities and trade compliance practices.
4. Undergo a Physical Validation. An Australian Border Force officer will visit the business site to undertake a physical validation.
5. Receive Benefits if Accepted. If accepted, the business will be offered a range of benefits designed to enable easier interaction within the international supply chain regulatory environment.

Magellan achieved Australian Trusted Trader status in April 2018 because we wanted our clients to be confident that their supply chains were supported by accredited industry leaders. It also provided us with the experience and expertise to assist you throughout the process. Magellan helps businesses better navigate complex and uncertain global supply chain environments, enabling them to stay ahead and maintain a competitive edge.

Instead of weighing the benefits of accreditation, we urge you to consider the impact of being one of only a few businesses in your market that isn’t accredited. Why let your competitors have the advantage?

Get in touch with us on 1800 595 463 or via darko@maglog.com.au if you would like to discuss what Australian Trusted Trader means for your business and how Magellan Logistics is well placed to assist you with gaining ATT acceptance through the provision of expert advice and guidance.