Risk Season 1 September 2018 – 30 April 2019

Every year the department of agriculture review import conditions in time for the BMSB season, which begins in September each year. These bugs are not found in Australia and need to be kept out due to the severe impact it could have on our agricultural industries. They can arrive in Australia on cargo and containers shipped between September and April, coinciding with late autumn and winter in the Northern Hemisphere. The next BMSB risk season will see an expanded target list of countries including USA, Italy, Germany, France, Russia, Greece, Hungary, Romania, Georgia and Japan. Increased measures will include mandatory treatment and increased intervention before arrival into Australia.

Target high risk goods

• break bulk, including vehicles, machinery, equipment and parts
• bricks, tiles, ceramics, steel, stone and cement
• goods likely to be stored in a manner that provides access for BMSB to overwinter.

Target risk goods

• chemicals, chemical products, salt, minerals, fertilisers
• plastics, wadding, tyres
• wood pulp, printed matter, straw, paper, cardboard.

Please refer here for further information including;

• Draft measures
• Target risk countries
• Target risk goods
• Target high risk goods
• Treatment options
• Registering offshore treatment providers

For further information on the requirements, please contact ICAL on 1300 00 4225

The introduction of GST on low value transactions

From July 1^st, goods with a customs value of A$1,000 or less may attract GST at the point of sale if imported by consumers in Australia.

A purchaser is a consumer if they are either;

• Not a business registered for Australian GST
• Registered for Australian GST but do not purchase imported services or digital products for use in their business

There will be no changes to:

• The A$1,000 threshold for reporting and collecting duties and taxes at the border
• The current requirements for tobacco, tobacco products or alcoholic beverages

Overseas suppliers will need to register with the Australian Taxation Office (ATO) if its current or anticipated annualised GST turnover equals or exceeds A$75,000 to consumers in Australia within a 12-month period. They will need to collect GST at the point of sale and remit that GST to the ATO. If suppliers don’t reach the threshold, they will not need to register with the ATO and therefore not charge GST at the point of sale to Australian consumers.

Country of Origin food labelling requirements from July 1st 2018

If you sell food in retail stores in Australia, the new Country of Origin Labelling laws will become mandatory on July 1^st  following a two-year transition period. This requirement means that products packaged from July 1st must display the new labels as per the Country of Origin Food Labelling Information Standard 2016. The ACCC will conduct market surveillance checks on food products to ensure businesses are correctly displaying the new labels. We trust that all food importers are aware of the news laws and will ensure they are complying with the  requirements.

ICAL Quarantine Clearance Fee

With the introduction of new Quarantine Regulations regarding both individual broker accreditation and company accreditation (Approved Arrangements), as of July 1 ICAL’s clearance fee for DAWR clearance will increase by $10.00 to $45.00

Airline Terminal Fee’s

Since the beginning of April we have seen an increase from all CTO’s on their terminal and document fees applicable to both imports and exports Australia wide.

As of July 1, the Import Terminal fee will increase by $0.06 per kg and Import Document Fee by $6.00 per Air waybill, on the Export side the Terminal fee will increase by $0.02 per kg and Import Document Fee by $5.00 per Air waybill

The Trans-Pacific Partnership

Just over a year after US President Donald Trump withdrew from the TPP, the remaining countries have signed the agreement in Chile, with hope to ratify it by 2019.

Whilst there has been criticism on the overlap between Australia’s existing free trade agreements, we currently have agreements in place with eight of the 10 other TPP members, it will have a big impact on Australian importers and exporters, some advantages include:

·         Opening up of the Canadian and Mexican markets

·         Easier certification requirements, it will be easier to qualify for lower duty rates under the TPP than under Australia’s existing free trade agreements.

·         New Countries are able to join, the more countries that join, the more likely the TPP could become the default free trade agreement.

·         One of the biggest benefits appears to be for farmers, the elimination on dairy products into Japan will be a highlight as in the past, the US has been a real cost competitor.

The TPP may also weaken the advantage Australia had over other countries, for example, not all TPP members had existing agreements with Japan. The entry of the TPP will mean Australia will again be on level pegging with other TPP members.

We will continue to monitor the progress of the agreement and once further information is available, we will be able to review and recommend options for our clients importing or exporting to/from a TPP member country.

 Brown Marmorated Stink Bug (BMSB) Risk Season 

The department of agriculture have now introduced further measures to control the risk of cross contamination of containers and other goods. Effective from March 15th, any containers arriving from Italian ports and containing goods originating from Italy, shipped as LCL consignments will be held by the department under biosecurity control at the wharf.  The new measures now apply to goods of Italian origin that ship from other countries to Australia. Containers of LCL consignments will require treatment at either the wharf or an approved arrangement site. The measures will be in place till the end of BMSB risk season, which is goods shipped until the 30th of April 2018 inclusive.

We would like to remind our clients about the measures being introduced and encourage those importing from Italy to be familiar with the requirements and for those who import from Europe to be aware that the next risk season may affect your imports. For further information regarding the requirements, please contact your ICAL representative. In the meantime, we will continue to monitor and update of changes made by the department of agriculture.

X2 Best Sales Award

 Earlier this year, our directors attended the annual X2 conference in Thailand. During the conference, ICAL received the ‘Best Sales’ award in the Oceania region. The X2 network allows ICAL to connect with logistic companies globally, not only to expand our service offerings but to ensure we are working with reputable logistics providers worldwide.

As you may be aware there has been a recent policy change of the major shipping lines into Australia with lines now directing empty containers to be de-hired directly to the stevedore terminals rather than the Empty Container Parks. Whilst this may result in a saving to each shipping line, it will significantly increase the handling costs for transport companies operating at the wharf.

Procedure has dictated in the past that empties are to be de-hired at dedicated Empty Container Depots whose sole purpose is to unload, survey, clean and/or repair if required and then release for export bookings. At its peak around 40% of these containers are transferred to the terminal to be exported empty at the shipping lines expense.

This direction will remove much needed flexibility around the return of empties, as well as the increase possibility of waiting time which is not normally seen at empty de-hire yards. At the moment there is no need to pre-book the delivery of empty containers to De-Hire parks, whilst Direct to Terminal De-Hires do require a time slot. This will place additional pressure on the supply chain, along with the danger of exceeding the carriers free time hire of the container.

At this stage we have been advised to expect a “Direct to Terminal De-hire” Charge of anywhere between $60.00 – $110.00 per container + GST. The de-hire location will be determined at the time of import on the delivery order, and we will endeavour to have any extra costs issued on our initial invoice.

Further reading from the Container Transport Alliance Australia  can be found here.

Over the coming months ICAL Management will be closely monitoring the situation and supporting those carriers who are offering us the opportunity to de-hire at the dedicated empty yards

As always if you have any questions or would like to discuss further, please contact Nicholas Watts on 1300 00 4225 or email nicholas.watts@ical.com.au

Chinese New Year

We would like to inform all our clients of the upcoming Chinese New Year holiday for 2018 from Feb 15^th to Feb 21^st. Based on the Lunar Calendar, 2018 represents the year of the Dog. Whilst the holiday officially begins Feb 15^th, we expect operations to begin winding down on Monday Feb 12^th as people begin heading home for the week-long holiday, ensuring they are home for the traditional New Year’s Eve reunion dinner. As more trucker’s wind down, those still operating often increase their rates as demand increases so if you have plans to move any cargo before the holiday please let us know this week so we can start the booking process.

Mandatory treatment for containerized goods from Italy

DAWR have recently advised for all containerised cargo arriving between 17th January 2018 and 30th April 2018, mandatory treatment will be required onshore prior to release of cargo. This is a result of the ongoing risk of the Brown Marmorated Stink Bug (BMSB). For LCL cargo we expect an additional cost of approximately AUD$20.00 – $25.00 per m3 and for FCL approx. AUD$500.00 per TEU. If you are importing from Italy and feel the treatment may negatively affect your goods, please contact ICAL for further advice. More information can also be found on the following issued notice from DAWR – http://www.agriculture.gov.au/import/industry-advice/2018/04-2018

ICAL International Customs & Logistics – Your Cross Trade Specialists

Ever wondered how you can ship goods directly from your supplier in one country to the end buyer in another country without having to bring the goods into Australia, eliminating the need for double handling, potential duties and taxes, time, and most importantly wasted costs? The Answer – “Cross Trade Shipments” also commonly referred to as Triangle shipments, Cross Trades are a specialised forwarding service where 3 countries and 3 companies are involved in 1 transaction.  The purpose of a Cross Trade shipment is for ICAL to move your goods directly from an overseas supplier, to an end buyer, whilst keeping the details of each confidential from each other. Whilst complicated to some, ICAL has extensive experience in the organization of Cross Trades and access to hundreds of trusted partners around the globe to ensure 100% confidentially.

If you would like some further information sent through or to discuss in more detail, please contact Nicholas Watts on 1300 00 4225

Asbestos in imported products

The importation of asbestos, or goods containing asbestos without permission is strictly prohibited. Australian Border Force (ABF) risk assess all imported goods and targets those which are considered to have a high risk of containing asbestos. From April 2016-2017, ABF detected asbestos at the border in a variety of products, some of which being, children’s crayons, brake pads, polystyrene cement boards, gaskets and associated motor vehicle parts. Any shipments of goods found to contain asbestos will be seized and importers can face penalties or prosecution.

Lognet Award

ICAL directors recently travelled to Miami, USA to attend the Annual Lognet conference. The Lognet network enables ICAL to connect to members globally, expanding our service offerings and ensuring we can offer competitive logistic solutions around the world. During the conference, ICAL was awarded second place, making it the fourth year in a row that ICAL have been nominated as a top three agent.

GST collection on low value goods has been deferred until July 1st 2018

Changes to the GST threshold were scheduled to take effect from July 1st 2017, however the proposed law has been delayed one year to allow retailers time to ensure they will comply. The bill which passed the Senate last week will see overseas businesses with an annual turnover of $75,000 or more to register with the ATO to collect GST on goods sold, including purchases under the current low-value threshold of $1,000. The change will see online sales platforms such as eBay and Amazon as the supplier, meaning they would be responsible for applying the tax.

Australian Order Fulfillment 

We recently launched a new website dedicated to the third party logistic (3PL) services that we offer.  We provide pick and pack, order fulfilment, eCommerce fulfilment, domestic/international distribution and inventory management. The benefit of outsourcing your distribution processes allows you to focus more on other aspects of your business. If you would like to hear more on how we can tailor a solution for you, get in contact with your ICAL representative today.  www.australianorderfulfillment.com

‘Best Operations’ Earlier this year, our Directors attended the Annual X2 Elite conference in Thailand. During the conference, ICAL was awarded ‘Best Operations’ in the Oceanic region.

New Security measures for USA bound Air Export Cargo come into effect July 1

As of July 1^st 2017, all cargo being transported via air to the USA must be either examined at piece level or originate from a Known Consignor. If your company is a frequent exporter to the USA, it may be beneficial to apply for a Known Consignor Status – more information can be found at https://infrastructure.gov.au/security/air-cargo/factsheet-known-consignor-scheme.aspx . For all other exporters, ICAL can arrange to have your cargo examined at piece level prior to uplift to the USA. We expect there to be some delays in the coming months as the new security measure take effect and additional screening fees will apply. If you would like further information on the new measures, please feel free to contact our Operations Manager, Nicholas Watts.  

To our valued customers,

Following on from our February newsletter advising of the proposed upcoming price increases affecting heavy vehicle road transport in Melbourne, we would like to alert our customers of the below increases to all container bookings from April 1^st onwards.

 Melbourne Wharf Infrastructure Fee – $36.00 per container + GST

 City Link Heavy Vehicle toll Fee　　 　　　　　　　　　　　　　　

• East and South Eastern suburbs utilising the Monash Freeway – $46.40 per container + GST 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　
• North and North Western Suburbs utilising the Tullamarine Freeway – $29.70 per container + GST

We understand this is a significant increase to our customers, however these increases have been forced upon the industry and we have no choice but to pass them on to continue a level of service acceptable to you, and which allows your business to continue running efficiently. Please also note City Link toll increases are valid from April 1^st to June 30^th only, and we will notify you of changes to the toll structure from July 1^st as soon as the information is made available. Whilst we realise such an unprecedented increase will hit everyone hard, we appreciate your understanding that these increases are too much for ICAL to absorb as we have with smaller fee increases in the past.

If you would like to discuss further please feel free to contact our operations manager, Nicholas Watts, or your ICAL customer service representative.

Spanish port strike / 6-25th of March

Spanish port workers have called a nine day strike after Spain’s cabinet passed a draft law to liberalise the hiring of port labour. The strike will commence on March 6th and will effect handling operations, vessel sailings and cause serious delays. Please contact us for further information if you have inbound/outbound freight calling Spanish ports.