Author: GPSM

Our Indian partners have advised us of the following information on a new GST to apply to all services in India from 1st July 2017.

The Government of India is planning to implement GST to all services in India with effect from 1st of July 2017.

Goods and Services Tax (GST) is one indirect uniform tax throughout India to replace indirect taxes levied by the central and state governments, thereby making India one unified common market.

Though GST is a tax reform, it is going to impact every sphere of business activity and replaces multiple taxes such as Central Excise Duty, Service Tax, Commercial Tax, Value Added Tax (VAT), Central Sales Tax (CST), Octroi etc. levied by the Central and state governments. It is essentially a tax only on value addition at each stage of the supply chain hence no cascading effect

Under present indirect tax regime, freight charges on exports are considered exports of services and are exempted from the applicable Service Tax.

However, export freight is subject to 18% GST under the newly introduced GST rules. Due to this the freight forwarding industry has lobbied with the Indian government to obtain exemption of export freight services in new GST tax regime as well. So far the government has not indicated that export related costs and freight charges will be exempted but the trade representatives with the help of the subject government ministry advisers are continuing to negotiate to obtain the exemption.

Therefore, as the government has not issued a communique at this time, exempting freight charges, all freight charges (that are prepaid in India) will be subject to GST of 18 % wef 01st July 2017. For sea freight shipments routed from Australian clients via GPSM on freight collect basis, there will be no change to ocean freight arrangements as the freight is paid by GPSM to the line in Australia.

For airfreight shipments, there will be tax payable as all airfreight costs are paid to the airline in India to avoid the incredibly high Currency Adjustment Factor billed by airlines in Australia when cargo arrives on a “collect” basis.

Such increase will apply to entire shipping fraternity without any exemption

Patrick’s Infrastructure Surcharge

Following the Implementation by DP World Port Terminals of an Infrastructure Surcharge on all containers moving through the Australian ports, Patrick’s Terminals are also implementing a similar charge effective from 10th July, 2017 to all Australian terminals. This action comes as no surprise and has been expected for the last few months.

Infrastructure investment, port rental charges and operating costs are being blamed for the increase, why the costs are not being passed onto the terminal’s clients (the shipping lines) we will never know. Unfairly, in our opinion, there has been no room for negotiation and we believe the additional costs form part of Terminal Handling Charges that have been traditionally paid by us on your behalf to shipping lines, why these costs are now being levied directly on importers and exporters via their nominated trucking companies is a mystery.

Air Cargo Security Screening Requirements for all cargo shipped to USA.

From 1st July, 2017, United States Legislation requires that all air cargo being transported to USA is required to be examined at piece level or be supplied by a Known Shipper. The new screening requirements will result in delays to cargo departure, particularly if cargo is delivered directly to the airline, the sheer volume of cargo being received will be too great for the airline screening equipment to handle efficiently and quickly. The new screening requirements will also add extra costs to every shipment, we are negotiating costs at present and will update same to all clients as soon as possible.

GPSM are pleased to confirm that all the Australian off-airport warehouses we use for all export cargo from Australia are now fitted with the latest screening equipment, thus we will be able to avoid the expected airline screening congestion and departure delays.

While the new measures are applicable at this time only to cargo exported to USA, it is not inconceivable to expect that the requirements will be extended to several other destinations in the future.

Los Angeles/Long Beach Ports Truck Drivers and warehouse workers to Strike from June 19, 2017.

Southern Californian Trucking company drivers and warehouse workers who serve the Los Angeles/Long Beach port complex are striking from June 19th in their latest protest against what they say are “greedy corporations” that are “illegally exploiting them”. The labour action is the latest in more than a dozen disputes that have been held at the port complex over the last few years as workers attempt to gain recognition as employees by the companies they work for, instead of being treated as independent owner-operators or contractors.

It is expected the strike action will last for five (5) days from June 19-23 and that 100 drivers and warehouse workers are expected to participate. It is expected there could be some disruptions to some local deliveries to/from the port complex. Notably, the strike has not gained the support of the International Longshore and Warehouse Union, which has not honoured the trucker’s picket lines.

Bio Security Requirements Pacific Islands

Bio Security requirements throughout all countries in the Pacific Islands are now being strictly monitored with imported containers being inspected for untreated and infested timber pallets, timber packaging material ad timber crates. In timer material that contravenes the local Bio Security requirements will be directed for fumigation.

To avoid the additional costs and delays in obtaining cargo, we suggest all cargo should only be loaded on treated timber or plastic pallets. Below is the international mark authorised for all treated timber pallets and packaging material, it is essential this trademark be clearly visible:

The Australian Border Force is experiencing significant Customs Entry processing issues that are affecting all processing of Import and Export Customs Entries. This may lead to some delays in cargo deliveries.

The Department is investigating the issues as a matter of urgency and will continue to keep all Freight Forwarders and Customs Brokers updated as  appropriate

Please take a moment to look at new forms that have been posted in Communicater.

Go to View -> Resources -> Download Forms

Information has been added for topics on Asbestos, Fumigation, Certificate of Origin, Plywood declaration.

Download Documents:

Asbestos Supplier Declaration

Asbestos Importer Due Diligence Declaration

DEPARTMENT OF IMMIGRATION AND BORDER PROTECTION NOTICE

AFAS – METHYL BROMIDE FUMIGATION CERTIFICATE

Based on the further information we have obtained from the Australian Border Force (ABF) regarding the importation of goods which may contain Asbestos, we have had to update the Declaration Forms.

To satisfy the ABF’s requirements that the imported goods do not contain Asbestos and to be compliant with the requirements for lodgement of customs entries, we have prepared forms that need to be completed by both your supplier and a form by the importer confirming they have completed due diligence requirements.

Please refer to the link below for previous newsletters.

CLICK HERE

Download Documents:

Asbestos Supplier Declaration

Asbestos Importer Due Diligence Declaration

DEPARTMENT OF IMMIGRATION AND BORDER PROTECTION NOTICE

While rates from above ports have remained quite stable for the past 4-5 months, we are again now receiving notices from shipping lines that they will be applying rate increases effective 1st July 2017.

These notices are not uncommon and while the current notices are indicating a General Rate Increase of USD 300.00/20ft and USD 600.00/40ft container, we do not believe this level of rate increment will be introduced. Last year we received the same notices from 1st July and the resultant increases were determined by the market, some increases were as low as USD 25.00/20ft and USD 50.00/40ft FCL.

Naturally, GPSM will be negotiating with the lines throughout June 2017 in an effort to minimise cost increases and we will, of course, keep all clients advised of any movements in the market.

Dear Clients,

Our China partners have advised that several shipping lines have advised there could be a shortage of empty containers in China, particularly in Shanghai, in coming weeks.

This is a result of the following factors:

The export boom during Chinese New Year period.

Recent congestion in the Yangtze River Delta Area resulting in delayed ocean vessel departures.

The unusual number of exports from Australia in recent months not allowing the normal high number of empty containers returned to China on northbound sailings.

The above may incur longer waiting times than normal waiting for empty container pick-ups in China, we would advise all clients it is suggested that bookings be made as early as possible so we can secure empty equipment at the earliest opportunity.

Please be advised that the industrial action at the Patrick Terminal Port Botany is continuing. All slots have been cancelled until 16:00 today. The latest Terminal update has indicated “still no news on return to work”.

GPSM has cleared all available containers prior to the stoppage. Patrick has arranged vessels to be worked at DPW during this period to reduce any negative impact on imports.

GPSM will be making every effort to move containers in a timely manner without interruption to our customers.

Thank you for being patient during this interruption to services.

For many Importers, searching for shipments or Purchase Orders on web based track and trace systems has always been done by using Purchase Order, Bill of Lading or Container numbers. Some Importers like to create a “shipment reference “ of their own once their PO’s become a shipment, however, up until now, this was not a searchable field for many of tracking sites.

Apart from giving users of GPSM’s unique Supply Chain Management tool, Communicater, over 15 different search criteria for their Purchase Orders and Shipments, Communicater now gives users the opportunity to add shipment reference values of their preference so that everyone in the organisation can search for supply chain information

Please ask your Customer Service contact for more details how to use this new feature

For those Importers who can provide us with a downloadable format of their Purchase Order , searching to a product level is also possible

It’s just another way that Communicater has been developed for its users from the Importers perspective.