Welcome to our last newsletter of 2018!
Table of Contents
With the backend of peak season now upon us our minds are preparing for 2019.
It is important not to let our guard down believing that the shipping industry slows down over the Christmas and New Year periods. Over the past decade or so this time of the year has proven to be just as busy as any other time of the year and with Chinese New Year in early February importers and exporters need to be aware of pending space difficulties.
From South East and North East Asia, blank sailings will also occur in this period catching businesses unaware so please ensure you continue to place any orders early to avoid disappointment going into 2019.
Australia – EU FTA
Among other potential Free Trade Agreements, Australia is looking at a new agreement with the European Union worth an estimated US$17.3 trillion and accessing over 500 million consumers.
We will keep you up to date on the development of this important FTA over the next 12 months.
A Modern Slavery Bill looks set to be passed by the Senate in the coming months that will see new reporting requirements by over 3000 business and other entities. It is believed that there are 40 million victims of forced labour globally, many of whom are exploited in global supply chains.
We are yet to see how this impacts importers, however it is thought a new raft of declarations may need to be presented at the time of customs lodgement to ensure importers are complying to the new rules and regulations set out in the bill.
Any new information that comes to light will be presented through your Account Manager.
Australian Trusted Trader
Do you know all the benefits of becoming a Trusted Trader with Border Force? Henning Harders are a proud Australian Trusted Trader and were one of the very first Customs Brokers in Australia to be part of the governments pilot scheme within this important project. There are now over 320 Trusted Traders who are benefiting from this program and the Australian Border Force are well on their way to securing +1000 businesses.
Some benefits include:
- Priority Processing
- Data Reporting
- Advance Rulings
- Mutual Recognition Arrangements with New Zealand, Korea, Canada, Hong Kong and China
- Duty Deferral
- Lighter touch at the border
Don’t be left behind. For more information and to gain an understanding of how we can assist you with the process, please talk to your Account Manager who will introduce you to the team at Harders Advisory.
Brown Marmorated Stink Bug Update
We are almost half way through the BMSB season and it has been quite a journey to date.
This week we saw the DAWR (Dept. Agriculture, Water and Resources) cargo system fail delaying forwarders lodging important reports for screening purposes. Contingency procedures were available however backlogs occurred.
DAWR last month turned around a RO/RO vessel where a significant number of exotic bugs (including BMSB) were found. This is a timely reminder that the DAWR have the power to make such decisions where the risk requires such a dramatic determination. This also should provide a reminder to importers and exporters regarding Marine Insurance and coverage in case your shipments are affected by such decisions.
The DAWR has proposed a new Biosecurity Levy planned for implementation on 1 July 2019. It is proposed that the levy will be imposed on vessel owners, operators and their agents. The DAWR expects to raise over $120 million per annum from this levy alone in order to continue a high level of Biosecurity activities including detection, surveillance, response, recovery or adaption. In layman’s terms the levy will cost importers and exporters around $10.02 per TEU.
As more information is available to us this will be passed on through our Account managers.
Landside Logistics Updates
Like Melbourne last month, NSW Ports Sydney have now also announced the expansion of on dock rail infrastructure at Port Botany. Extra rail sidings are aimed to increase the use of rail out of the port to 28% of the total number of containers leaving the terminal.
Over the past number of weeks, we have been faced with several terminal closures around the country due to minor industrial action and Mother Nature. It is important to understand what potentially one day terminal delay will have in respect to costs within the supply chain. Not only do importers receive their cargo later, the time to unpack and de-hire containers becomes more challenging. Many shipping lines have decreased the number of ‘free’ days allowed to de-hire empty containers. When you factor in any delay on delivery this can add hundreds of dollars in detention fees. Some points to assist importers to reduce detention fees;
- Always know and understand the number of free days you have (this includes weekends and public holidays)
- Make the time and effort to take delivery as soon as practicably possible
- Where containers are placed on the ground, ensure containers are emptied where possible the same day as delivery then email your Account Manager as soon as it is emptied
- Control your shipping and freight costs and buy FOB or EXW where possible. This will give you the ability to discuss with your Account Manager the potential to negotiate additional free time on arrival.
It is important to note that in cases where Henning Harders have not shipped your container to Australia we cannot be held liable for detention where delays are not in our control.
Terminal Infrastructure Fees
In October this year we flagged the increase in Terminal Infrastructure and booking fees effective 1 January 2019. Please be aware that these increases will affect every container entering and exiting DP World terminals across the country.
Please contact your Account Manager to understand how these increases will affect your business.
Chain of Responsibility
Chain of Responsibility is impacting businesses throughout the supply chain. We are starting to see fees levied by terminals and other providers to cover the costs to implement important changes and ongoing training for CoR compliance. Over 100 staff members from Henning Harders have recently undergone training to comply and keep up to date with this legislation. Each of our suppliers will be audited and procedures implemented across the board which will be an ongoing process. To ensure this level of training and implementation Henning Harders will charge a CoR levy of $12.00 per container from the 1 January 2019. If you need more information, please contact your Account Manager.
Festive Season Trading Hours
Henning Harders will be closed on the following dates – Australian offices:
December 24 – from 3pm
December 31 – from 3pm
Should you have an emergency over this period, please contact: Shelley Tegg – 0438 854 875