Port Charge Increase Delayed

Further to our below Newsflash distributed earlier this month, please note the start date for the new Port Infrastructure Charge for Sydney has now been delayed until 17th April 2017.

The deferred start date is a direct result of Industry Lobby Groups expressing their displeasure at the short notice of the implementation date initially given by DP World.

We shall keep you advised of further updates if and when same are received.

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Sydney and Melbourne Import Charges to Increase

Increased Port Charges Sydney and Melbourne:

DP World (DPW) a major port operator in Sydney and Melbourne have announced they are implementing a “Port Infrastructure Charge” effective from 3rd April 2017 covering all import and export containers moving through both ports.

Melbourne port already has an infrastructure charge as part of the port charges paid to the shipping lines however the DPW charge is an additional cost that is being blamed on critical infrastructure investment, terminal upkeep and general operating expenses that have been absorbed by DPW over the last few years.

The DPW charge is expected to be $ 32.60 per container and same will be collected from the trucking companies via the electronic container booking system and will apply to all containers collected or delivered by road and rail at the port. As this cost will be an out of pocket expense GPSM will be forced to add these costs to each invoice raised to all clients.

Melbourne Toll Charges Increases:

The heavy transport industry is facing significant toll charge increases on trans-urban roads in Melbourne of up to 225% effective from 1st April 2017. The increases will apply to CityLink, Tullamarine Freeway and Monash Freeway to and from the Port of Melbourne.

The increases will only be applied to trucks, cars will not face the increased tolls. The toll increases will be used to fund the Citylink Tulla Widening (CTW) project.

Toll charges in Melbourne have generally been absorbed by trucking companies but given the huge impending increases, the Container Transport Alliance Australia (CTAA) the container transport industry body, have advised that this will no longer be the practices and all members will now be passing on the new tolls to all clients.

CTAA have advised that a truck leaving Melbourne port on a return day trip to Dandenong area will face tolls of close to $ 60.00 per trip. Similar costs will also been incurred for movements to/from other major supply chain areas in Melbourne.

We regret the need to pass on these increased tolls to GPSM clients, however, we are confident you understand that trucking rates have not been increased in Melbourne for some years and these added costs cannot continue to be absorbed.

Why your quotes take so long to receive ?

Have you ever asked your Freight Forwarder or Customs Broker for a shipping quote, only to have to wait up to 48 hours for an outcome?

According to a recent study conducted by Maritime Research Consulting and Financial Advisory Service, Drewry, Freight forwarders spend 24.4 million hours of labour a year to find and manage carrier rates for clients, for an estimated labour cost of $500 million.

Is it any wonder ocean rates and costs are never up to date?

Understanding the enormity of the exercise to keep rates current and to deliver clients rate shipping cost enquiries at the touch of a key, GPSM has developed a number of unique technological processes to provide its clients with Freight Calculator.

Freight Calculator harnesses the multitude of rates in the marketplace, instantly provides a sell price and incorporates all destination charges, including trucking to destination, all in an easy to read format.

Freight Calculator is great for sales departments looking to cost upcoming orders or for quoting customer enquiries. It is also useful for Accounts when it comes to checking their Freight Forwarders invoice.

Freight Calculator is designed to provide shippers with accurate, current freight rates and charges, all at the click of a button.

Please contact billh@gpsm.com.au If you would like a demonstration of Freight Calculator or other GPSM supply chain management technology.

Valuation of Free of Charge Goods

All goods imported into Australia must be assigned a Customs value, even if they were provided free of charge. This includes gifts, bonus goods, samples, and promotional goods.

The most common method for valuing any import is to use the ” Transaction Value”, which is the price the importer actually paid ( or is going to pay ) for the goods. In the case of Free of charge goods we are not able to use Transaction Value for your import declaration.

In this case you must provide Customs “The price of identical goods sold for export to Australia” or similar goods value for goods exported to Australia.

Failing to provide this information will delay the release of your cargo at the barrier leading to potential additional storage costs.

Pro Forma Invoice

Pro-Forma Invoices are not acceptable by Australian Border Force (ABF ), a Pro-Forma is not a demand for payment and may not provide sufficient evidence to determine the actual price paid for the goods. Importers should not rely on Pro-Forma documents for processing of customs entries, as they will not be acceptable to support statements made in customs declarations without further verification by ABF. The Australian border force has found that these documents are highly inaccurate in a significant number of cases.

This policy is also adopted regarding the use of Electronic invoices, some importers create an electronic invoice in order to establish a record of the value of goods, the ABF has found that they do not reflect important details of sales transactions Including the value of the goods, and as such are also unacceptable.

Acceptable commercial documents are:

Purchase order

Contact of sale

Order confirmation

Commercial invoice

Evidence of payment is :

Letter of credit

Bank Transfers

Receipts

Paypal

EFT

Credit card bank statements

Ocean Freight Rates from Far East Asia to Australia

The turmoil surrounding ocean freight rates from Hong Kong, China, Taiwan, Korea and Japan appears set to continue in 2017.

Following the rate reductions we negotiated for February 2017 shipment from the above areas, we have started receiving shipping line notices advising of increased rates effective from 1st March, 2017.

Per our earlier Newsletters, it is not uncommon to receive these notices, as under the terms of the Alliance agreement the lines are required by Law to advertise any increases in advance.

The increases being advised at present are USD 300.00/20ft container and USD 600.00/40ft container, this will be the maximum permitted but we would expect these increases will be mitigated according to market conditions. Further information will be advised as we near closer to the implementation date and we finalise our negotiations with the various lines.

Please note any substantial increases is expected to also lead to a rate increase on LCL traffic from above areas.

The rate variations have resulted the shipping lines suffering huge financial losses over the last few years and their confirmation that they are unable to sustain the low rate levels we have become accustomed to in non-peak periods. A number of factors has led to the decline in the industry, including the following:

The financial collapse of Hanjin Line in 2016.

The financial collapse of Great Southern Lines in 2016.

The merger between China Shipping Line and COSCO Line in 2016.

The takeover of Hamburg-SUD Line in 2017 by Maersk Line.

The merging of NYK, K Line and OML Lines in April 2017.

And more recently the announced Merger between Hapag Lloyd and United Arab Agencies expected in the new couple of months.

Imports Subject to Dumping

Do you import goods listed in the Dumping commodity schedule, if so you may be subject to paying dumping Duty.
Please take a moment to read the schedule and contact our office to discuss if any of these measures will
impact on the cargo you import.

Dumping Commodity Registers

Current measures are listed by commodity. Linked to each commodity is the dumping commodity register (DCR) which provides information when importing goods subject to measures.

DCRs notify the outcomes of finalised investigations and should be read in conjunction with any relevant current investigations, such as reviews and inquiries. Refer to the Cases page to review current cases by commodity.

Commodity Country(ies) of export Tariff Classification
2,4-Dichlorophenoxyacetic acid (2,4-D) (PDF 456KB) China 2918.99.00
3808.93.00
A4 Copy Paper (PDF 169KB) Brazil, China, Indonesia and Thailand 4802.56.10
Aluminium Extrusions (PDF 216KB) China, Vietnam and Malaysia 7604.10.00
7604.21.00
7604.29.00
7608.10.00
7608.20.00
7610.10.00
7610.90.00
Aluminium Road Wheels (PDF 194KB) China 8708.70.91
8708.70.99
8716.90.00
Aluminium Zinc Coated Steel (PDF 539KB) China and Korea 7210.61.00
Ammonium Nitrate (PDF 148KB) Russia and Russia via Estonia 3102.30.00
Chrome Bars (PDF 165KB) Romania 7215.90.00
7215.50.90
7228.30.10
7228.60.10
7228.60.90
Clear Float Glass (PDF 173KB) China, Indonesia and Thailand 7005.29.00
Currants, Processed Dried (PDF 197KB) Greece 0806.20.00
Deep Drawn Stainless Steel Sinks (PDF 215KB) China 7324.10.00
Grinding Balls (PDF 495KB) China 7325.91.00
7326.11.00
7326.90.90
Hollow Structural Sections (PDF 252KB) China, Korea, Malaysia and Taiwan 7306.30.00
7306.61.00
7306.69.00
Hollow Structural Sections (PDF 331KB) Thailand 7306.30.00
7306.50.00
7306.61.00
7306.69.00
7306.90.00
Hot Rolled Coil Steel (PDF 436KB) Japan, Korea, Malaysia and Taiwan 7208.25.00
7208.26.00
7208.27.00
7208.36.00
7208.37.00
7208.38.007208.39.00
7208.53.00
7208.54.00
7208.90.00
7211.14.00
7211.19.00
Hot Rolled Plate Steel (PDF 392KB) China, Indonesia, Japan, and Korea 7208.40.00
7208.51.00
7208.52.00
7225.40.00
Hot Rolled Structural Steel Sections (PDF 422KB) Japan, Korea, Taiwan and Thailand 7216.31.00
7216.32.00
7216.33.00
7216.40.00
7228.70.00
Pineapple Fruit – Consumer & FSI (PDF 209KB) Philippines and Thailand 2008.20.00
Power Transformers (PDF 158KB) Indonesia, Taiwan, Thailand 8504.22.00
8504.23.00
Quenched and Tempered Steel Plate (PDF 155KB) Finland, Japan and Sweden 7225.40.00
7225.99.00
Resealable Can End Closures (PDF 159KB) India, Malaysia, the Philippines and Singapore 8309.90.00
Rod in Coil (PDF 177KB) Taiwan and China 7213.91.00
7227.90.90
Silicon Metal (PDF 189KB) China 2804.69.00
Steel Reinforcing Bar (PDF 440KB) Korea, Singapore, Spain, Taiwan and China 7214.20.00
7228.30.90
7213.10.00
7227.90.90
7227.90.10
7228.30.10
7228.60.10
Tomatoes, Prepared or Preserved (PDF 367KB) Italy 2002.10.00
Wind Towers (PDF 189KB) China, Korea 7308.20.00
7308.90.00
8502.31.10
Zinc Coated (Galvanised) Steel (PDF 667KB) China, Korea and Taiwan 7210.49.00
7212.30.00
7225.92.00
7226.99.00

China Australia Free Trade Agreement (CHAFTA) Update

We wish to bring to your attention important key elements of Certificates of origin issued form China. The following is a list that you need to make your suppliers aware could invalidate Certificates issued rendering it unacceptable for customs clearance purposes requiring the payment of import duty.

The HS code in section 9 must be to 6 digits.

There must be a HS code for all items on commercial invoice you cannot group all items under one HS code.

If you are importing machinery you must have one HS code for that and any spare parts must be listed under their own HS code.

The origin criterion in section 10 you must ensure that your supplier has used the correct Rule of origin i.e.: WO , WP or PSR

There must be a numerical link in section 12

If there is a third party billing , the details must be provided in section 5 remarks column providing the invoice number or Purchase order number for goods shipped.

Could you please forward this onto all your suppliers and ensure that they comply with these conditions on order to have a valid Certificate of origin

Ocean Rates from Far East Asia / Australian Trucking Rates

Ocean Freight Rates from Far East Asia:

GPSM are pleased to advise all clients that we have negotiated reduced FCL rates for February 2017 shipments from Taiwan, Korea, China and Hong Kong.

As all will be aware the rates had remained at quite high levels leading up to the earlier than usual Chinese New Year period. It is expected that traffic volumes will reduce in February as many factories will take some time to gear-up again for production after the holiday close-down.

The updated rates have been added to our web rate portal and are available on “Freight Calculator” or View Rates modules.

Please also be aware that we have starting receiving advices from shipping lines that they intend to increase rates again from 1st March 2017, this is a standard procedure to ensure they are covered for regulatory rate filing 30 days in advance of implementation date, they are quoting increases of USD 300.00/20ft and USD 600.00/40ft container, however it is generally the market that will determine the increment closer to the effective date.

GPSM will keep all clients advised of further developments in due course.

Trucking Detention Rates in Brisbane, Melbourne, Adelaide and Fremantle:

Trucking companies in above listed cities have advised of an increase in waiting time charges once the free allowance time period has expired.

Effective from 1st February, the rates will increase by $ 10.00 per truck hour for both standard and side-loader trailers deliveries. The detention rates have remained fixed for the past 5 years without any increases in this period.

As all deliveries in Sydney are handled by GPSM own trucking fleet, we are pleased to advise that current detention rates will remain unchanged for all Sydney FCL deliveries.

Rates from China, Hong Kong, Taiwan, Korea and Japan

We indicated in our last Newsflash that it was expected that lines would increase rates from Far East Asian ports to Australia in January, 2017, in a “last-ditched” effort to gain as much income as possible prior to the Chinese New Year shutdown.

The initial indications were that a General Rate Increase of USD 500.00/20ft and USD 1000.00/40ft container would be implemented, however the increases applied are more in the range of USD 250.00/20ft and USD 500.00/40ft container.

GPSM have been working closely with the lines in an effort to minimise the cost increases and we have been very successful in reducing the impact from many ports.

Some carriers have proven difficult to deal with as space is also at a premium for January shipments, the lines take the attitude they can auction the space to the highest bidder, it is a seller’s market in their eyes at present. GPSM are fortunate that we have space allocations with some carriers that are generally honoured without question so we are able to avoid the space auction scenario in most cases.

The new rates are currently being updated to our web rate portal and we are keeping a very close eye on developments, we shall keep all clients informed on any developments as soon as we have further information.

A reminder that space for January is extremely tight so early bookings are essential to ensure all shipments depart prior to the Chinese New Year shutdown.