DHL GLOBAL FORWARDING AUSTRALIA - LATEST INDUSTRY NEWS
With the signs of an early peak season in Ocean Freight as highlighted in this newsletter, it is timely that we have both our Head of Asia Pacific and Australian / New Zealand Ocean Freight lined up for this month’s webinar on Ocean Freight. This is a good opportunity to understand a little more about the trends and changes along with an opportunity for question and qnswers. There is still time to
Head of Sales and Marketing Australia
Strengthened Aviation Security Requirements - 100% Screening for all Export Air Cargo
The Australian Government announced a range of measures to further strengthen aviation security in Australia. In addition to the announced measures, including changes that all export cargo must be examined at the piece level prior to Air Export with effective date of 1 March 2019.
Piece-level refers to examination of export air cargo at the lowest level of consolidation (that is, each individual box, carton or other similar item) by a Regulated Air Cargo Agent (RACA) under an Enhanced Air Cargo (EACE) Notice. Examination must occur at piece-level before cargo can be uplifted onto an aircraft.
Cargo that originates from a known consignor, and is securely transported to the CTO/RACA by the known consignor or an AACA (Accredited Air Cargo Agent), is considered to be piece-level examined and will not need to be examined again prior to being uplifted for export.
Cargo is often consolidated on pallets (for example, boxes stacked and wrapped in plastic) or in unit load devices. Examination at the consolidated level will not be acceptable for export air cargo after 1 March 2019. Uncleared cargo will need to be piece-level examined prior to consolidation.
This change will bring all export destination countries into line with the piece-level examination practices in place for the United States (US), and is considered the most effective way to address current and emerging threats to air cargo.
DHL Presents at World Customs Organisation Conference, Fiji
With the theme “Border Management Solutions: the Way forward”, this Conference highlighted the importance of different types of solutions and best practices which can have beneficial application to member countries for the management and security of their borders.
DHL spoke to the audience about the role of a service provider in interacting with Border and Taxation Regulators on behalf of clients to meet the high compliance and reporting standards set by Government whilst also meeting the needs of our customers on timely transit and cost reduction.
World Customs Organisation (WCO) Asia Pacific vice chair Mr Visvanath Das spoke of the trend for Service Providers, Governments and Community working together to create secure supply chains whilst remaining in competitive markets. “With globalisation and trade liberalisation the world has only become smaller”, Mr Das said, “the challenge is about awareness and collaboration between relevant government agencies and private sector in raising a countries competitiveness at the global stage”. He went on to comment “it is a shared responsibility rather than an individual one”.
DHL Australia national customs compliance manager Bill Wray presented to the audience on the value of partnering with government though initiatives like the Australian Trusted Trader Program where a key benefit is “a seat at the table with Government” opening opportunities and benefits to those who can demonstrate high compliance with regulations and a secure end to end supply chain. Benefits available include streamlined reporting, duty deferral, improved transit through a lighter touch at the border by regulators and access to Mutual Recognition Arrangements (MRAs) for exporters.
DHL have been at the table with the program since the pilot phase and is now a valued partner under the scheme.
GST on Low Value Goods
From 1 July 2018, Australian goods and services tax (GST) will apply to sales of low value goods imported by consumers into Australia.
Businesses that meet the registration threshold of A$75,000 will need to:
- Register for GST.
- Charge GST on sales of low value imported goods (unless they are GST-free).
- Lodge returns to the Australian Taxation Office.
These businesses may be merchants who sell goods, electronic distribution platform operators or re-deliverers. For goods imported in a consignment over A$1,000, any GST, customs duty and clearance charges will be charged to the importer at the border under existing processes.
GST on low value imported goods will be collected by merchants, online marketplaces or re-deliverers when you order goods. Importers of goods who have paid GST on low value goods should notify their DHL Customs Broker before clearance of this fact as there is no mechanism for refunds of duplicate or overpayments under this process.
The existing processes to collect GST on imports above A$1,000 at the border are unchanged.
Packing Declaration Requirement Changes
The department reminds clients that all consignments of containerised goods subject to non-commodity reporting requirements shipped on or after 1 July 2018, must be accompanied by a packing declaration that meets the revised requirements.
The Department of Agriculture and Water Resources Industry Advice Notice 101 - 2017 detailed the implementation of the revised Minimum Documentary and Import Declaration Requirements Policy and the Non Commodity Information Requirements Policy.
The notice also provided details about the revised consignment specific and annual packing declarations that were implemented on 20 November 2017.
Ocean Market Trends and Updates
- Container volumes out of Asia reaching peak levels.
- Peak Season Surcharge announcement - Maersk.
- Increased fuel cost triggered a Temporary Emergency Bunker Surcharge by carriers.
- Emergency Bunker Surcharge for LCL Cargo.
- Hutchison Ports Sydney infrastructure fee.
- Flinders Adelaide Container Terminal - New charges.
Container volumes out of Asia reaching peak
During a typical lower volume period we are seeing high container space utilization at around 90% from Asia. This has been impacted by the rolling of cargo, fog issues in Shanghai and some blank sailings combined with the deployment of smaller vessels.
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 we see that higher paying freight is prioritised which will impact transit times in general. If a container is urgent and must meet a transit time a higher rate will need to be accepted to ensure priority is received.
Maersk - Peak Season Surcharge
Due to recent unexpected and very significant increases in key factors impacting shipping operational costs, Maersk Line is implementing an emergency Peak Season Surcharge (PSS) globally.
For all export shipments from China (excluding Hong Kong and Taiwan) an emergency PSS will be introduced effective from 1 June 2018.
For all export shipments to the USA and Puerto Rico the emergency PSS will be effective from 1 July 2018.
The emergency PSS for all Exports from China is as follows:
- USD 60 per 20’ Dry & Special Equipment container.
- USD 120 per 40’/45’ Dry & Special Equipment container.
- USD 90 per 20’ Reef container.
- USD 180 per 40’/45’ Reef container.
The emergency PSS will also to trade lanes that already have a PSS.
Maersk advise that this action is necessary to ensure a continued sustainable service to our customers. The emergency PSS will be reviewed when significant increases or reductions of key shipping cost elements occurs.
Introduction of a Temporary Emergency Bunker Surcharge
APL, PIL, MSC, Maersk and other carriers have advised the introduction of an Emergency Bunker Surcharge (EBS) effective 1 June 2018 worldwide (except USA), and from 1 July 2018 from the USA to Australia/New Zealand.
Charges vary from USD 30-60 per TEU depending on the shipping line for all FAK (Freight of all kind) container, Named accounts are not impacted by the surcharge.
The EBS will be review on a monthly basis.
Important to note that the EBS announcements are the official statements by the shipping lines amounts and start date might vary from shipping line to shipping line.
Emergency Bunker Surcharge for LCL Cargo
Effective from 1 June 2018 an Emergency Bunker Surcharge (EBS) of USD 3.00 per w/m will be implemented for all LCL cargo.
The EBS will be review on a monthly basis.
Hutchison Port Sydney infrastructure fee
Hutchison Ports Sydney has announced that effective 25 June 2018, an Infrastructure Levy of A$10.45 will apply to all laden import and export containers handled at the terminal by rail or road. The implementation of this levy has become necessary because of the high cost of additional equipment and infrastructure procured in recent years and used to provide and maintain an efficient terminal landside operation.
Flinders Adelaide Container Terminal - New charges
Flinders Adelaide Container Terminal (FACT) has advised that effective 1 July 2018, they will introduce an Infrastructure Levy of AUD 28.50 which will be applied to each full container lift and a Container Weighing Charge of AUD 10.00 for each full import container.
The Container Weighing Charge relates to the use of two new weigh-in-motion weighbridges recording heavy vehicle axle weights. These weighbridges have been installed to enable FACT to comply with its ‘chain of responsibility’ obligations under National Heavy Vehicle laws.
Ocean Freight - Online Sailing Schedules
For the latest Import Sailing Schedule or Export LCL Sailing schedule see the following links
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