Harders Contract Logistics – Truganina Bond License
Our Truganina Warehouse is now licensed to store goods subject to customs control (excluding petroleum and petroleum products). The licence permits Harders Contract Logistics to store goods entered on warehousing entries – including excise equivalent alcoholic goods – deferring payment of import duty and GST until the goods are delivered into home consumption.
In addition, the Truganina Warehouse has also secured a storage licence from the ATO to store excisable (domestic) alcohol products, deferring the payment of excise to ATO until the goods are delivered into home consumption.
To comply with related regulations:
- excisable goods remain under ATO control
- the physical security of goods in our warehouse is guaranteed
- electronic systems are utilised to maintain inventory integrity
- warehouse personnel are subject to additional security checks
Advantages of warehousing excisable and excise equivalent goods
- improved cash flow, as Customs duty and import GST or excise is not payable until your beer, wine, spirits are entered for home consumption
- businesses may be eligible to release goods into home consumption without upfront payment with relevant settlement permissions from ATO
- we can assist with establishment of continuing movement permissions where under bond alcohol can be moved to other Customs warehouses and excise storage locations without duty or excise payment, for example to airport duty free stores
- we can also set up and maintain a dedicated bond register to monitor stock receipts and movements. These records ensure accurate values can be recorded on clearances ex-warehouse, and also allow for reconciliation against physical stock during stocktake.
Our services include
- Ambient storage of 12,500 pallet positions
- Customs consultancy
- Duty minimisation techniques
- Auditing services – Duty / Excise / Taxation
- Bond register set up and maintenance
- Underbond solutions
- in-house fully accredited (DAFF – Department of Agriculture, Fisheries and Forestry) licensed Customs Brokers
- value-added services such as unpacking and repacking
Landside Logistics
Continued Disruptions at DP World
Active protected industrial action continued throughout the last month impacting imports and exports in and out of DP World. Planned stoppages have been extended through the Christmas period and until the 31st December. This is a double whammy as trucking companies now deal with public holidays and Industrial Action impacting their ability to service customers over the last week of December.
With no apparent end in sight, DP World requested a ‘cooling off’ period to allow operations to continue (with minimal delays) whilst negotiations are still in play. This request was subsequently declined by the Fair Work Commission.
Industry associations are calling for the Victorian Department of Transport and Planning to declare a ‘disruption event’ to convene a response group to help facilitate negotiations. If this is achieved, this should also allow the group to communicate the operational environment to all impacted to make informed commercial decisions about their shipments.
Please ensure that discussions are had with your Account Manager concerning how these delays impact your shipments and managing shipping line detention.
Department of Agriculture, Fisheries and Forestry – Document Assessment Activities
The Department of Agriculture, Fisheries and Forestry has released advice to industry participants regarding measures taken to mitigate the delays currently being experienced with document assessment.
The department acknowledges the delays that importers and their brokers have experienced in receiving directions and is making all efforts to manage increased workloads in order to meet published service standards, while continuing to effectively manage biosecurity and imported food risks.
These measures include:
- The recruitment, onboarding and training of ne biosecurity officers.
- The training of additional Imported Food Assessment officers.
- Continuation of industry requested overtime to process lodgements (subject to resource availability).
- System enhancements to provide greater automation of services.
- Ongoing expansion of eligible Compliance-Based Intervention (CBIS) commodities.
- Ongoing expansion of the commodity eligibility list for AA Class 19.2 automatic entry processing for commodities (AEPCOMM).
The above measures represent a positive step by the department to remedy the issues currently experienced by industry. We hope to see the delays reduced to meet service standards in due course.
Australian Border Force
Prohibited Exports and Imports Regulation Updated
Effective the 13th December 2013, Customs Prohibited Exports and Import regulations have been amended to impose control on the importation and exportation of several new substances, under the United Nations Convention against illicit Traffic in Narcotic Drugs and Psychotropic Substances.
As Australia is a signatory to the conventions, it is obliged to impose controls on import and export of these substances.
The new substances now prohibited for import or export: 4‑AP (N‑Phenyl‑4‑piperidinamine),
Boc‑4‑AP (tert‑butyl 4‑(phenylamino)piperidine‑1‑carboxylate), Brorphine, Cumyl‑Pegaclone, Diphenidine, Eutylone, Isotonitazene, MDMB‑4en‑PINACA, 3‑methoxyphencyclidine, Metonitazene
and Norfentanyl.
If you believe any of your products may contain any of the above chemicals, please reach out to your Key Account Manager to conduct an analysis and review on your behalf through our Harders Advisory division.
Sea Freight Market Update
The wave of disruptions and delays have skyrocketed this month with sailing schedules in turmoil.
As we finish off 2023 no-one could have predicted the exceptional issues that will have a major impact on supply chains, such as the DP World Protected Industrial Action, the recent Red Sea attacks on vessels, the Panama Canal drought and the new European Emissions Trading Scheme (ETS) all adding additional costs to industry and in turn to consumers.
The ongoing industrial action affecting national operations at DP World terminals is having a domino effect as carriers choose to bypass Australian ports or divert to other terminals.
This is having extra-ordinary affects as congestion mounts on an already suppressed market as pressure to combat the oversupply of vessels this month has led to half of the shipping capacity per week removed.
Unfortunately, there seems to be no end in sight to the terminal disruptions and we can expect this to continue well into Quarter 1 of 2024. The shortage of space on vessels from Northeast Asia to Australia and New Zealand, continues to put pressure on supply chains, despite the festive season upon us.
High shipping demand is expected in January with the traditional pre-Chinese New Year rush (held on February 10th, 2024, where the country celebrates for approximately two weeks).
This will create additional confidence amongst the shipping lines to push for further rate increases as another Rate Restoration (RR) of USD 300 per TEU is announced to the market on the Northeast Asia to Australia and New Zealand trade lane effective from January 1st, 2024. This increase will be on top of current FAK (freight of all kinds) and SPOT rates on this trade.
This week we have received confirmation from major shipping lines, Maersk, MSC, Hapag-Lloyd and CMA CGM to pause Red Sea transits and or reroute their vessels around the Cape of Good Hope, due to ongoing attacks on their vessels. This will add a minimum of 10 to 14 days onto the transit times, and we therefore urge our valued clients to plan for these increased delays. Each carrier will be monitoring the situation on a vessel-by-vessel basis to which our team will communicate to our valued customers accordingly.
The Panama Canal continues to experience severe low water levels and congestion is mounting. Shipping lines are advising that draft restrictions released by the Panama Canal Authority have limited the number of vessels that can transit daily through the Panama Canal which will reduce the capacity of container vessels.
Shipping lines will therefore be implementing Panama Canal Water Surcharges as increased turnaround times and operational costs will need to be recovered. These surcharges will no doubt impact our clients and will affect cargo moving via the Panama Canal to and via the US Atlantic and Gulf Coasts.
Please seek assistance on how these additional costs impact your supply chain via our Key Account Managers.
The European (EU) Emission Trading System (ETS) was first introduced in 2005, with the goal of reducing greenhouse gas emissions of high-polluting sectors through an emissions cap-and trade system. New regulations are being presented to incorporate the maritime industry into the ETS from January 1st, 2024. It will be the responsibility of shipping companies or ship owners to adhere to the EU ETS.
On an annual basis they will need to monitor and submit certified CO2 emissions to the governing authorities. As a result, shippers will have to pay surcharges – leading to a rise in shipping fees. Shipping lines have already outlined their ETS surcharges, which will apply on each trade lane to dry and reefer cargo and will be reviewed on a quarterly basis.
We encourage you to contact our team of professionals to see how these surcharges will affect you.
Air Freight Update
Air cargo demand remains steady, with a slight increase MoM, and remains flat YOY.
Capacity remains sufficient in most regions with no significant backlogs, except from Israel, Hong Kong, and China.
There is a slight capacity reduction as some airlines cut back passenger flights due to decreased winter travel demand.
Some seasonal upticks ex-China due to strong ecommerce growth.
We have weekly consoles from USA, Europe, China, and South Africa into AU.
Please contact our team of supply chain professionals who will continue to provide you with the most competitive options to support your supply chain needs.
2023 has been a whirlwind and a year unlike no other, we thank you for your continued trust while we navigate through the challenges and find solutions to exceed your expectations.
We take this opportunity to extend our warmest wishes to all our valued clients and their families for a safe and prosperous holiday season, filled with all the blessings that this time of year brings!