Henning Harders October 2018 Newsletter

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Table of Contents

Customs Updates

Cargo Security

As of 1 March 2019, all Air Cargo exports must be examined at piece level unless they originate from a Known Consignor.  Currently this applies to all US bound cargo but will be expanded to all cargo from 1 March.  This examination will delay the uplift of cargo and we encourage regular shippers to register as Known Consignors as this will alleviate the piece level inspection.  

If you would like to register as a Known Consignor, then please contact your Key Account Manager as they will be able to assist you with the process.

Department of Home Affairs Compliance Update

The Departments half yearly compliance update has been issued and once again most of the errors uncovered by the department relate to the valuation of goods.  It is imperative that importers check their copy of the Customs Entry when they receive them from their Broker to ensure the value of their goods declared reflects the price paid.  Often invoices received by your Broker come direct from your supplier.  Some suppliers believe they are performing a service by reducing the costs of the goods on the invoice supplied thereby unwittingly exposing you as the importer to penalties. 

Should you have any concerns regarding this matter then please contact your Account Manager


DAWR Updates

HCIP (Highly Compliant Importer Program)  

The Department of Agriculture and Water Resources (DAWR) has developed a Highly Compliant Importer Project (HCIP).  HCIP will result in reduced intervention from the department on importers who have demonstrated a high compliance over an extended period. 

Currently the project is undergoing development and only applies to a limited number of items (Furniture and Aircraft).  Importers that are identified as HCIP will not be notified, however they may find their consignments that are normally subject to Quarantine being released without intervention from the department.

The department is looking to expand the project to other commodities in the future and we will keep you informed as this project develops.

Infringement Notice Scheme for all Import Pathways

The Department of Agriculture and Water Resources (DAWR) has commenced enforcement of the Biosecurity Act by issuing infringements for breaches of the act.  A DAWR officer has the authority to issue Infringement notices for up to 52 prescribed offences. Offences such as refusing to provide requested information, failing to comply with a Quarantine direction through to interfering with goods under the Quarantine control are liable for penalties under the infringement notice scheme. Penalties vary but generally the amount payable is 12 penalty units (currently $2,520) for individuals and 60 penalty units (currently $12,600) for companies.

It is imperative that importers follow the instructions from a DAWR officer whether this be written or verbal.  

Should you have any issues with the instructions given, please contact your Account Manager who will be able to provide guidance.

Brown Marmorated Stink Bugs (BMSB) update 

Further to our earlier advice, the Department of Agriculture and Water Resources (DAWR) has provided additional clarification on the requirements to prevent the infestation of imported products with Brown Marmorated Stink Bugs (BMSB).  We had added this information to our previous update but highlighted the changes for ease of reference.

Goods imported from Target Risk Countries between 1 September 2018 and 30April 2019 will require treatment to prevent the importation of this devastating pest.

The following measures will be in place:

  • Goods imported from Target Risk Countries as Break Bulk, LCL, open top or flat rack containers will require mandatory offshore treatment prior to import. Goods not treated offshore will require re-export or destruction.
  • Goods imported as FCL or FCX containers will be able to be treated in Australia prior to delivery.
  • Treatment must be carried out by approved treatment providers. This list is evolving, and we can provide the latest list of approved providers on request.
  • The approved methods of treatment are Methyl Bromide, Sulfuryl Fluoride and Heat Treatment.
  • Not all goods are subject to these measures. A list of the target goods is available on request or on the web link below.
  • Goods originating from Target risk countries will be subject to heightened surveillance inspections.

Target risk countries: 
Cargo originating or shipping from the following countries are subject to these measures. Any vessels that tranship or load goods from these countries are also subject to heightened vessel surveillance.

  • United States of America 
  • Italy
  • Germany
  • France
  • Russia
  • Greece
  • Hungary
  • Romania
  • Georgia
  • Japan (heightened vessel surveillance will be the only measure applied). 

Goods originating from a target risk country prior to 1st September but shipped from a non-target risk country post 1st September.
The Department will require a declaration from the shipper of the goods stating that the goods were shipped from the Target risk country prior to 1stSeptember.

Goods originating from a target risk country post to 1st September but shipped from a non-target risk country. 
These goods must be treated within accordance with the requirements set out by the department. Full Container Loads may be treated post import, however all other goods (excluding airfreight) must be treated prior to shipment.

Treatment timeframes 
Good originating from Target risk Countries that require treatment must be exported within 120 hours of treatment.  Goods shipped in containers must be sealed in the container within 120 hours of treatment, there is no mandatory shipping timeframe for containerised cargo providing the goods remain sealed in the container post treatment.

Please ensure contact your Account Manager for all BMSB updates or questions prior to shipping from the target risk countries.

Changes to the competent authority issuing Government Quarantine certification in China

Official Government Certification issued in the People’s Republic of China is now issued by the General Administration of Customs of the People’s Republic of China (GACC). As a result, new certificates are being issued with new stamps.

The security features remain unchanged with visible indicators on the documents, these include the GACC logo in the left-hand top of the certificate as shown in the below sample.

Other security features include:

  • The diagonal “copy” watermark repeated throughout the documents when scanned or copied
  • Logo watermark in the centre
  • Barcode in the bottom right have corner of the first page
  • New stamp for the 42 different GACC districts

Unfortunately, the Department of Agriculture has not yet provided a sample copy of the new certificate or the names of the 42 approved GACC districts, therefore we recommend you contact your Account Manager if you are unsure of the validity of your certificate and they will arrange for it to be verified.


Landside Logistics Update

What is ‘CoR’?

Chain of Responsibility (CoR) is legislation which affects any person or company that has influence over the transportation of goods. It is legislation designed to keep road users safe and ensure companies and individuals follow strict safety guidelines and legal obligations.  Note the terms ‘any person’  and ‘company’  used  above. This means both individuals and/or companies can be prosecuted, so it is important to be aware of your responsibilities and adhere to the legislation. 

CoR is legislation designed to make our roads safer by reducing road law breaches.

Chain of Responsibility laws take effect this month (Oct 2018) and the maximum penalties for breaching the new Heavy Vehicle National Law are as follows;

* Up to 3 million dollars for Corporations; and

* Up to $300,000 and up to five years in prison for individuals.

What have you done to ensure you are meeting the obligations under these new laws?  Whether you are a shipper, consignee or managing any part of the supply chain you have obligations and therefore may be prosecuted under the new laws if the regulator believes you have committed an offence.

Henning Harders are undertaking important training by outside facilitators to ensure our commitment in achieving CoR compliance.  Auditing of our transport activities and providers will be carried out to ensure they are also compliant with CoR laws. 

As Importers and Exporters, you are required to identify your obligations under the law in ensuring the elimination or minimise the risk and potential harm or loss is ‘so far as is reasonably practicable’ to ensure the safety of the public and all workers.  Have you notified your suppliers to ensure that all goods are secured inside containers?  Are they aware of the load restraints and container weight distribution?

If you require more information, please contact your Account Manager.

DP World Announces Infrastructure Charge Increases

DP World Australia last week announced increases in their Infrastructure Charges levied on landside cartage operators in Melbourne, Sydney and Brisbane. This was also coupled with an increase in the Vehicle Booking System (VBS) in all Australian container terminals.

From the 1 January 2019 the terminal will increase the Infrastructure Surcharge over 50% claiming the charges are vital for ongoing infrastructure investment across the business.

It is expected that the other terminals will follow suit amid growing discontent amongst industry bodies who demand regulatory investigation and intervention. 

Please contact your Account Manager on how these charges will affect your business in the coming months.


Shipping Updates

Peak Season 2018 

Peak season is bearing down, and the next three months will see some instability in the market and scheduling which effects the industry in this volatile time of the year.

The most affected areas include North East China and South East Asia where there have been some significant service changes in the past month. 

A consortium of three lines – Evergreen, APL and Hyundai have introduced a new weekly service with five classic Panamax ships averaging 4,600 TEU.  Regular ports include Ningbo, Shanghai, Yantian, Sydney Melbourne and Brisbane.

For South East Asia a reintroduction of the AAA service also commenced in August providing improved coverage and capacity with 2 loops (AAA1 & AAA2).  This is a welcomed improvement given the ongoing capacity and scheduling issues last year at this time. 

Little has improved though with the increasing demand on the transhipment ports such as Singapore and Kelang. These are extremely busy and congested ports and should be avoided where possible.

In North East Asia we will start to see blank sailings by the lines to improve vessel utilisation and maintain scheduling during this busy period. The next lot of blank sailings will start in mid-October and will take industry by surprise if not fully informed.

Shipping lines will look to initiate rate restoration programs, General Rate Increases (GRI’s) and Bunker adjustments whilst vessel utilisation remains high. This will not only be for shipments ex Asia but from Europe and other parts of the world.

During his time, we always encourage forward planning of orders and shipments to allow for any potential delays in transit.  

Please ensure you contact your Account Manager to plan for this challenging time and to avoid disappointment. 

IMPORTANT NOTICE

Import and Export Rules and Customs Regulations as described in this newsletter are subject to constant changes. Please check our website regularly for any updates.

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