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New packing declarations for bamboo – 1 July 2018

The Australian Department of Agriculture and Water Resources has again changed the format of packing declarations as a result of bamboo being classified as an acceptable packaging material. 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.

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Illegal Logging – Back on the Agenda

We wrote in August 2015 advising of the Department of Agriculture and Water Resources’ intention to renew its emphasis on ensuring that importers of timber and timber products complied with the Illegal Logging Act 2012 and the Illegal Logging Prohibition Regulation 2012, by instituting a system of audits.

These regulations aim to reduce the impact of illegal logging on the environment by requiring due diligence in order to reduce the theft, laundering and trade of

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Changed requirements: Highly Manufactured Wooden Articles

The Department of Agriculture and Water Resources (DAWR) has announced changes to the treatment requirements for goods considered to be highly manufactured wooden articles as they are deemed to pose a low biosecurity risk and can be released with minimal biosecurity intervention.

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Be clear on your biosecurity reporting obligations

Recently the Department of Agriculture and Water Resources (incorporating AQIS) announced changes in biosecurity reporting obligations and penalties that may be imposed for failing to correctly report goods subject to a biosecurity control.

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Brown Marmorated Stink Bugs – shipping lines on notice

It’s that time of year again.  The Brown Marmorated Stink Bug is spreading throughout Europe and Department of Agriculture and Water Resources is now monitoring all cargo originating in Europe.

These bugs represent a considerable threat to Australia’s agricultural industry, not to mention what a nuisance they can be when the invade homes and buildings seeking warmth. Due to the cooperation of shipping lines, port authorities, importers and manufacturers, Australia is free from this damaging pest.

So let’s keep it that way

So far this season the pest has only been detected at low levels in shipments, but should that change the Department will institute pre-shipment treatments similar to what’s in place for the US.  It is hoped that this, and the ensuing delays it causes won’t be necessary.

To that end DAWR has issued a letter to shipping lines outlining some of the preventative steps they and their clients can take to halt the spread of the pest.

We understand that the Department is also preparing an Industry Notice to inform importers and other interested parties of the preventative measures that shipping lines may be adopting, and the reasons why.

In the meantime, if you have any questions about Brown Marmorated Stink Bug or the preventative measures, please get in touch with me via alex@maglog.com.au or call your Magellan Customer Service Team member on 1300 651 888.

2017-01-30 – Final – Notice to shipping lines.pdf
2017-01-31 – Letter to Freight and Trade Alliance.pdf

Source:
Freight & Trade Alliance

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CHAFTA DUTY RATES TO COME DOWN IN 2017

The nature of retailing is continually changing.  If it’s not the recent growth of online retail and rapidly changing consumer preferences that is keeping you on your toes; then it will be the need to stay on top of distribution chain productivity improvements to remain competitive that’s keeping you up at night.

Although the cost structure of retail goods has been broadly stable over the last 10 or so years, this is in spite of an upward trend in the prices of inputs to the retail supply chain; in particular, those involved in distributing goods.  With roughly half the cost of getting goods from factory to the consumer attributable to distribution, any relief on this front is good news.

The good news – ChAFTA duty rates to come down

As of 1 January 2017, there will be a change in duty rates for most tariff categories covered under the ChAFTA agreement.

For simplicity, we have summarised the tariff classifications as follows:

chafta duty rates

To take advantage of the new reduced tariffs on your imported cargo you will need to lodge entry after 1 January next year.

With this in mind, now might be a good time be thinking about the cost of goods sold in your upcoming shipments and your available options.  Moving your goods into bond until after the New Year might be worth your while.

When the time is right, talk to us to find out if it is the right solution for you.

Magellan Logistics has been navigating global supply chains for Australian fashion, footwear, textiles and retail businesses for 20 years.

We have your back on this and any other customs or freight-forwarding topic.  If you would like to discuss the ChAFTA duty rates reduction and how you can take early advantage of them with me further please get in touch on 1300 651 888 or via alex@maglog.com.au.

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Become an Australian Trusted Trader

On 1 July 2016 the Australian Trusted Trader Program (ATT) commenced following a successful pilot phase that commenced on the 1st July 2015.

The Australian Trusted Trader is a voluntary program that recognises Australian businesses that meet 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 to create a fast and seamless trade experience for Trusted Traders.  The ATT is a move towards modernisation of the border environment with the aim of fostering streamlined, reliable, predictable and most importantly secure trade.

By the end of 2020 the program envisages 1000 participants from across all sectors of the supply chain.

What are the benefits of being an Australian Trusted Trader ?

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.

Enhancing supply chain security and global competitiveness:  The ATT will contribute to economic growth and prosperity and was included in the Australian Government’s G20 growth strategy.  Through the ATT the Australian Government will develop bilateral Mutual Recognition Arrangements. This will enable participants to access faster clearance times for goods entering our trading partners markets.  Currently the Australian Government is working on Mutual Recognition Arrangements with China, New Zealand, Korea, Canada, the USA, the European Union, Japan and Singapore.

Reduced intervention for legitimate trade:  The introduction of the ATT is a step away from the one size fits all approach to the clearance of goods crossing the border. By removing unnecessary burden to compliant entities and increasing focus on high risk and unknown entities, the ATT will ensure accelerated clearance of low-risk transactions and increased resources allocated to high-risk and unknown entities.

Industry benefits of ATT:  Trusted Traders will be offered a number of benefits which will help foster trade including;

Dedicated Account Manager:  Trusted Traders will receive a dedicated account manager who will be the primary contact between the Trusted Trader and the Australian Border Force.

Priority trade services:  Trusted Traders will have access to advanced rulings for requests on tariff advice, valuations and origin rulings.

Differentiated and prioritised examinations:  Trusted Traders will be recognised as low risk and will be subject to faster border clearance.

Mutual Recognition Agreements:  Trusted Traders will have access to trade facilitation benefits in countries with which Australia has signed a Mutual Recognition Agreement.

Streamlined reporting arrangements (from 2017-2018 financial year):  Alternative clearance arrangements will be available to trusted traders which will reduce the administrative burden on clearing goods.

Duty Deferral (from 2018-2019 financial year):  Duty payments on imported goods will be deferred for a set period from the beginning of 2018-2019 financial year.

What are the costs?

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

How to become part of the ATT?

The ATT program is open to all Australian Businesses that hold an ABN, that are actively involved in the international supply chain and have two or more years of trading and compliance history.

      1. Check that the ATT is right 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 help you complete an SAQ. The questions in the SAQ explore the business’s international supply chain activities and trade compliance practices
      4. An Australian Border Force officer will visit the business site to undertake a physical validation.

If accepted, the business will be offered a range of benefits designed to enable easier interaction within the international supply chain regulatory environment.

Magellan Logistics is well placed to assist you with gaining ATT acceptance through the provision of expert advice and guidance.  If would like to discuss whether the ATT program is right for your business please get in touch with me on 1300 651 888 or via alex@maglog.com.au.

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Biosecurity Act 2015

The following is an excerpt from the Department of Agriculture and Water Resources relating to thew Biosecurity Act 2015.

From 16 June 2016 the Department of Agriculture and Water Resources will be working under the Biosecurity Act 2015. At a  but 108 years of quarantine operations cannot be erased overnight.

The Biosecurity Consequential Amendments and Transitional Provisions Act 2015 will support the smooth transition to the new laws. Some aspects of the biosecurity legislation that commence on 16 June 2016 will do so under transitional arrangements to enable the department and our industry clients to adjust incrementally to the new operating environment.

Preparing our clients and stakeholders

We know that it is vital to engage with and support our clients and stakeholders to prepare for commencement of the new laws. We have developed a series of audience specific pages that outline the key changes that clients and stakeholders can expect from the introduction of the biosecurity legislation.

The Biosecurity Act explained for specific audiences

Preparing our information platforms and systems

We are currently undertaking an extensive body of work to prepare for commencement which includes:

  • training and preparing our staff
  • updating website content and client service systems
  • identifying and adjusting products including forms and communication materials
  • developing guidance and documentation.

While every effort is being made to update our information platforms to reflect the new legal framework, there may still be references to the Quarantine Act 1908 that require more time to update as part of broader systems reform – like the Vessels Management System that will remain untouched until the Maritime Arrivals and Reporting System is launched later in 2016.

Where you see outdated references to the Quarantine Act on our forms, systems or website, you can report it to the department online or by phoning 1800 040 629.

Changes in the way we interact with you

One of the more noticeable changes that clients can expect from us on 16 June 2016 is the way we communicate and interact with you. The Biosecurity Act introduces a range of new legal concepts and terminology. We will still be at the border managing the biosecurity risks of travellers, international mail, cargo, vessels and aircraft. From the outside our regulatory work will largely look the same, but we will be using new language and amended processes to undertake our important task of managing Australia’s biosecurity system.

On an operational level you can expect to notice very few changes to the way your usually go about things, but if you require assistance to understand the implications of the new legislation, please get in touch with me on 1300 651 888 or via alex@maglog.com.au, or call the department on 1800 040 629.  There is also an interactive learning package about the Biosecurity Act you can undertake online.

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Your obligations when importing timber products into Australia from China

All imported timber, wooden articles, bamboo and related products (whether for commercial or personal use) must comply with the Department of Agriculture and Water Resources Biosecurity Import Conditions system (BICON).  It should be noted that this includes timber packaging and pallets. The types of timber, wooden articles, bamboo, and related products page has definitions and links to the applicable import conditions in BICON for different types of timber, wooden articles, bamboo and related products.

In order to ensure a smooth importation process, importers of timber products from China that require fumigation prior to entry, must provide a Chinese Fumigation Certificate to Magellan Logistics on customs@maglog.com.au or your customs broker.

We have prepared a useful guide to outline the types of timber products and treatments required with links to the relevant information on the Government’s site as well as the process around the application for and provision of Chinese Fumigation Certificates.

If you would like some more information on importing timber products from China and Chinese Fumigation Certificates, please contact me or a member of our customs team at Magellan on 1300 651 888 or via email alex@maglog.com.au

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Bangladesh air cargo prohibition – new arrangements

The following advice regarding the Bangladesh air cargo prohibition has been received from the Air Cargo Security Taskforce, Office of Transport Security.

The Australian Government has modified the restrictions (originally introduced in December 2015) placed on air cargo originating from or transiting through Bangladesh.

Under the new arrangements air cargo that has originated from, or transited through, Bangladesh will be prohibited; unless it has undergone an appropriate security examination at an approved last port of call before travelling to Australia or is otherwise exempt from examination under Australian regulations.
• The approved examination methods are: X-ray; explosive trace detection; or physical examination.
• The approved last ports of call are: Dubai; Abu Dhabi; Doha; Singapore; Kuala Lumpur; Bangkok; Hong Kong; or Guangzhou.
• The exempt items are: mail items under 500 grams; cargo under 250 grams and shorter than 5 mm; live animals; human remains; biological tissues; legitimately prepared dangerous goods; Commonwealth Government articles; and diplomatic bags.

The new arrangements will take effect from 11 May 2016.

Failure to comply with the instruments
Non-compliance with the instrument (or restrictions set out in the instruments) is an offence of strict liability under the Aviation Transport Security Act 2004.

Review of the prohibition
The Australian Government, through the Office of Transport Security, will continue to monitor aviation security developments, in cooperation with our international partners. OTS will provide advice to the Government on adjustments to our air cargo security measures as necessary.

Should you need further clarification on this prohibition, or to arrange alternative movement of goods from Bangladesh to Australia, please do not hesitate to contact your Magellan Representative on 1300 651 888.

Links: https://infrastructure.gov.au/security/air-cargo/

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