DHL GLOBAL FORWARDING AUSTRALIA - LATEST INDUSTRY NEWS
I really appreciated your involvement in our recent breakfast education session on Trade Compliance held across Australia last month. There were some good questions raised during the sessions and from the feedback we see there is a strong interest in local traders becoming registered on the Australian Trusted Trader scheme.
Should you need any assistance or direction on getting started on becoming an Australian Trusted Trader or have any questions regarding any information shared during the briefing our team is more than willing to help you.
Thank you for your ongoing support and feedback.
Head of Sales and Marketing Australia
Customs Updates - Changes to Import Requirements
- Brown Marmorated Stink Bug - Quarantine Fumigation on Italian Goods.
- GST and Low Value Goods, effective 1 July 2018.
- Illegal Logging.
- New Emissions Standards for imports of Non-road Spark Ignition Engines or Equipment, effective 1 July 2018.
As detailed in our recent Trade Compliance Education Breakfast Seminars held around Australia in March, there are a number of changes that have already come into force or are due for implementation by mid-2018. These changes are summarised below;
Brown Marmorated Stink Bug - Quarantine Fumigation on Italian Goods
All containerised goods (FCL or FCX) shipped between 17 January 2018 and 30 April 2018 (inclusive) via sea cargo that originate from Italy will be required to undergo an approved treatment.
This includes Italian goods in containers shipped from any port in any country.
Goods already treated offshore with one of the approved Brown Marmorated Stink Bug (BMSB) treatments, and where a valid treatment certificate is presented to the department, will not require further treatment.
Effective from 15 March 2018 any containers arriving from Italian ports and containing goods originating from Italy shipped as Less than Container Load (LCL) consignments will be held by the department under biosecurity control at the wharf and will require treatment at the container level at the wharf by methyl bromide fumigation.
GST and Low Value Goods
- Changes commence 1 July 2018.
- System of foreign vendor registration, collection and remission.
- Existing rules relating to GST on consignments over $1,000 are unchanged.
- Business imports unaffected.
- Special issues for electronic distribution platforms and redelivers.
- No impact on customs duty.
Make sure your suppliers know that you are a business customer and that they have your ABN. If GST is incorrectly charged by the supplier you can seek a refund by providing the supplier with evidence that GST was paid at the border.
- Laws have been in place since 2012.
- It is illegal to import illegally logged timber and timber products.
- Not a passive obligation - you must undertake due diligence.
- Border declaration required - “Has the importer complied with due diligence requirements of the Illegal Logging Act 2012 and associated regulations?”
- New “deemed to comply” - Timber Legality Framework.
- Penalties now apply if you cannot prove compliance.
What you need to do
- Have a documented due diligence system.
- Information gathering about the product.
- Risk assessment.
- If necessary, undertake additional mitigating actions to minimise the risk.
- Maintain suitable records.
Emissions Standards - Department of Environment and Energy
As of 1 July 2018 new emissions standards will be in place for imports of Non-road Spark Ignition Engines or Equipment (NRSIEE). You will need to supply your Broker with certification or exemption codes from the Department of the Environment demonstrating compliance with the new standards.
Further details can be found on the Department of Environment and Energy
Chain of Responsibility- Heavy Vehicle National Law Amendments
Heavy Vehicle National Law being reviewed to now include a broader and far reaching Safety Duties definition rather than Primary duty and penalties for breach increased to $3 Million for a corporation or $300,000 for an individual.
In earlier articles we indicated that the current Heavy Vehicle National Law is being reviewed with the Amendment Bill 2018 currently before parliament and was waiting approval as of 13 March 2018.
The Bill along with a raft of other changes introduces the concept of “Safety Duties” which identifies the “Duty for the executive of a legal entity” which includes the entire “Safety Duties” rather than Primary Duty as in the current legislation. The maximum penalty for a breach of the new legislation has increased from $1 Million to $3 Million for a corporation and $300,000 with a maximum of five years jail for an individual.
The legislation now recognises internal Chain of Compliance. Executive Officers are required to exercise reasonable diligence to ensure that their corporation does not commit a CoR offence. Executive officers may be defined as “Directors or any person engage or concerned in Management”.
To ensure your compliance with this legislation you may consider the following:
- Identify the risks to compliance when you are conducting your business.
- Develop and implement Policies and Procedures to mitigate identified risks.
- Ensure all staff are appropriately trained and knowledgeable.
- Ensure compliance conditions are included in all relevant contracts.
- Implement a system of audit (internal and external) to validate compliance.
- Ensure awareness and support across all levels of the organisation.
- Trade with partners who can demonstrate their commitment to compliance.
At DHL Global Forwarding we see CoR compliance as a pillar of our Safety First endeavours and plan to include regular helpful CoR information in our Customer Newsletters. If you require additional information a good website to visit is the National Heavy Vehicle Regulator (NHVR) .
The NHVR is the administrator of Heavy Vehicle legislation in all states with the exception of Western Australia and Northern Territory who maintain their own legislative regime. If it is deemed appropriate contact us for further advice.
Ocean Market Trends and Updates
- Container space availability on vessels to Australia continues to be in short supply and is expected to remain so until the end of April.
- General Rate Increases from North China is expected by all carriers.
- Australia Port Infrastructure fees increases.
- Return of Empty Containers - Expected cost increases.
- Ocean Network Express - Continer Shipping Service commences 1 April 2018.
Asia to Australia
The space situation from Asia is still very tight. More blank sailings have been announced for April.
Early booking are recommended for all origins, this space situation is not expected to improve for at least the next 3-4 months.
During this period shipping lines will also try to optimize their profitability and will therefor always prioritise higher paying freight. If a container is urgent and must meet a transit time a higher rate will need to be accepted to ensure priority is received.
North Asia to Australia
All shipping lines will try to implement a GRI (General Rate Increase) of USD 300 per TEU, effective from 1 April 2018.
Important to note that these GRI and PSS (Peak Season Surcharge) announcements are the official statements by the shipping lines. Amounts and start dates might vary from shipping line to shipping line.
Europe to Australia
Transhipment services from Europe via Singapore and Port Kelang has also been impacted. More blank sailings have been announced for April.
We recommend that all customers discuss their space requirements with your DHL Global Forwarding customer service representative at least 2-3 weeks prior to the intended sailing date otherwise space / equipment cannot be guaranteed and delays may occur.
Trucking problem in the USA intensifies.
Australian Port Charges
We have been advised that Australian Port Charges are expected to increase for all carriers. The increases and effective dates will vary from carrier to carrier.
Australia Port Infrastructure Fees
Following the DP World announcement regarding increasing their Infrastructure Surcharge, effective 1 January 2018, Patrick have also announced an increase to their Infrastructure Surcharge, effective 12 March 2018.
Return of Empty Containers
As you have been informed previously, major shipping lines have commenced implementing changes to their process for rehiring empty containers. They will now be rehiring their containers directly into stevedore terminals, rather than designated empty container parks. This will affect all port and will add more costs to the supply chain of importers.
DHL Global Forwarding will manage the returns of your containers and will pass on any costs incurred if your container is de-hired at the terminals and not the empty container parks.
As of 1 April 2018 additional charges which will be incurred due to the revised process, unfortunately we don’t have a choice and any additional costs will need to be passed on to our customers.
Ocean Network Express (ONE)
Ocean Network Express (ONE), is the joint venture regrouping the container shipping businesses of K Line, MOL and NYK, announced that it has started accepting bookings for its container shipping services that will begin operating from 1 April 2018.
During the interim period preceding the official commencement of ONE on 1 April, there will be up to four companies operating on the same service until the three pre-existing lines completely stop operating vessels. The transition is expected to be smooth, with customers expected to shift over to the new network with minimal disruptions during the switchover.
Only minor changes to the service offerings are planned, with no significant fleet rationalizations. The largest overlaps between the three liners are limited to the intra-Asia trade.
Ocean Freight - Online Sailing Schedules
For the latest Import Sailing Schedule or Export LCL Sailing schedule see the following links
DHL Expands Its Global Cargo Insurance Service
DHL Global Forwarding has expanded its ‘all-risk’ Cargo Insurance service.
DHL Global Forwarding has developed Cargo Insurance service to protect customers against damage or loss during transportation. With its latest expansion, DHL Cargo Insurance service is now available for customers from all industries across 74 countries worldwide.
“With DHL Cargo Insurance we are offering our customers an opportunity to minimize potential impact of unforeseen external events. Our scale means we can arrange coverage between almost any country in the world and for any type of cargo including specialist, high risk or high-value goods. By continuously expanding our service we can support our customers where they operate, even in emerging and high-risk markets” says Angelos Orfanos, Global Head of Marketing & Sales, DHL Global Forwarding.
DHL Cargo Insurance is developed by DHL’s in-house Insurance & Risk Management group and underwritten by a major global insurer. The service is designed with customers' convenience and ease of use in mind. It can be arranged as an annual policy to cover all the shipments transported with DHL Global Forwarding, or on ad-hoc basis per shipment when booking an air, ocean road or rail freight shipment. In detail, the insurer’s policy covers the full commercial value of customers’ goods as well as the transportation costs proportional to the loss or damage and additional 10% of the goods value and freight.
Although Cargo Insurance is a global service, customers raising a claim will have access to a local service desk with agents who speak the local language and will settle the claim in local currency. With Cargo insurance service DHL targets a maximum 30 day claim resolution time. By this, the customers’ cash flow and reputation can be protected and financial penalties might be avoided. DHL Cargo Insurance can be ordered without additional time or effort together with the booking of Air, Ocean, Road and Rail Freight shipments.
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