Free Trade India – Australia to commence 29th December 2022

Schedule 10A of the Customs Tariff Act 1995 (Customs Tariff Act) sets out the preferential rates of customs duty that apply to goods deemed to be Indian originating.

Indian originating goods classified to any tariff subheadings that are not listed in Schedule 10A have a ‘Free’ rate of customs duty from 29 December 2022

Indian originating goods are those that meet the requirements of Division 1JA of Part VIII of the Customs Act 1901 (Customs Act).

Further information about determining the originating status of goods and materials for the purposes of the ECTA is available on the Australian Border Force (ABF) ECTA

webpage at: https://www.abf.gov.au/importing-exporting-and-manufacturing/free-trade-agreements/india

Attachment: ACN 2022_52 – Australia-India Economic Cooperation and Trade Agreement – Entry into Force.pdf

LCL Booking Fees

LCL container unpack depots have been increasing their vehicle booking fees over recent weeks, we regret the need to increase costs but we are unable to absorb these out of pocket expenses.

Effective from 19th December, 2023, the new rates will be $ 30.00 per LCL booking, and rates will be updated to the GPSM rates portal accordingly.

New market access for Export trade with India from 29 Dec 2022

The Albanese Government welcomes confirmation today, that the Indian Government has completed its domestic requirements to enable implementation of the Australia-India Economic Cooperation and Trade Agreement (ECTA).

This trade agreement will deliver new market access opportunities for Australian businesses and consumers from 29 December 2022.

Australia finalized its domestic requirements for the trade agreement last week with the unanimous passage the Government’s Bills through Parliament.

ECTA is a ground-breaking agreement that brings Australia and India’s economies closer together.

From 29 December, tariffs on 85 per cent of Australia’s exports to India will be eliminated and high tariffs on a further 5 per cent of goods will be phased down.

Entry into force of the agreement before the New Year delivers a double bonus of two tariff cuts in quick succession: one as the agreement comes into effect and a second on 1 January 2023.

ECTA will save Australian exporters around $2 billion a year in tariffs, while consumers and business will save around $500 million in tariffs on imports of finished goods, and inputs to our manufacturing sector.

The tariff commitments provided by India in the agreement will open up access for Australia’s exporters of products including critical minerals, pharmaceuticals, cosmetics, lentils, seafood, sheep meat, horticulture and wine.

Australian service suppliers will benefit from full or partial access across more than 85 Indian services sectors and subsectors. Australian suppliers across 31 sectors and subsectors will be guaranteed the highest standard of treatment that India grants to any future free trade agreement partner.

Australian services sectors to benefit include higher education and adult education, as well as business services such as tax, architecture and urban planning.

ECTA will support tourism and workforce needs in regional Australia by making 1000 Work and Holiday Program places available to young adventurous Indians. It maintains opportunities for Indian students graduating in Australia to undertake post-study work, with a bonus year of stay for high-performing STEM graduates.

Australia and India are now progressing a Comprehensive Economic Cooperation Agreement to build on ECTA. The Australian Government is pursuing further opportunities in goods and services, in addition to new commitments in areas such as digital trade, government procurement, and new areas of cooperation.

Trade Deals with India and The United Kingdom

Trade deals with India and the United Kingdom

 

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received advice from Minister for Trade and Tourism Senator the Hon Don Farrell confirming the passage of legislation through the Parliament enabling free trade agreements with India and the Untited Kingdom.

“The Australia-India Economic Cooperation and Trade Agreement (ECTA) is a great opportunity for Australian businesses as it will open up new markets to reach around 1.4 billion consumers in the world’s fastest growing major economy.”

“The Australia-United Kingdom Free Trade Agreement (A-UKFTA) is the first full trade agreement the UK negotiated from scratch following Brexit. The A-UKFTA will deepen our already strong economic relationship with the UK and offer greater opportunities for our businesses to diversify their trade markets.”

“The ECTA and A-UKFTA will enter into force 30 days (or another mutually agreed time) after the respective parties have confirmed in writing that they have completed their domestic requirements.”

Quotes attributable to the Prime Minister, Anthony Albanese:

  • “New trade agreements with India and the UK will strengthen our existing trade and economic relationships. These new agreements will create new opportunities for trade diversification and great outcomes for Australian business and Australian families.”
  • “Today’s passage of legislation demonstrates Australia’s commitment to free trade and the rules-based trading system. It is an acknowledgement of the centrality of trade to our economic resilience and ongoing prosperity.”

Quotes attributable to Minister for Trade and Tourism, Senator the Hon Don Farrell:

  • “These agreements will support our businesses to grow, to offer more employment opportunities, and will give Australian consumers more choice at the checkout.”
  • “We are ready to implement these deals and will continue working closely with the UK and Indian Governments to implement the trade agreements as soon as possible.”

Sal Milici – Head of Border & Biosecurity – FTA / APSA

Copyright © 2022 Freight & Trade Alliance (FTA) Pty Ltd, All rights reserved.

Quarantine Fees due to rise 16th January 2023

In response to increased biosecurity complexity, the department is progressing three related bodies of work to ensure it can fund existing and future regulatory activities, meet industry expectations, and continue to manage biosecurity risk effectively into the future.

The first measure is the proposed commencement of cost recovery to manage the risk of hitchhiker pests and diseases. The intention is to increase the Full Import Declaration charge for sea cargo (Sea FID) for each declared consignment arriving by sea from $49 to $58, commencing 16 January 2023

Tugs Industrial Action

SVITZER AUSTRALIA INDUSTRIAL ACTION UPDATE FOR CUSTOMERS & STAKEHOLDERS – 9 NOVEMBER:

Below message just received advising of industrial action across Australia from Thursday 10th November, 2022.

This action will severely dispute vessels arriving and departing all ports.

Svitzer Australia is experiencing a significant escalation in protected industrial action across Australia’s major ports with widespread stoppages scheduled from tomorrow (10 November) through to Tuesday (15 November).

The new protected industrial action contains more than 80 hours of work stoppages across Melbourne, Sydney and Brisbane. This is in addition to the work stoppages in WA and ongoing bans in ports across the country.

A summary of the new actions by the three maritime unions is provided below. All times provided are local time.

 

Brisbane:

An 8-hour stop work period by tug masters from 22:00 Saturday 12 November until 06:00 Sunday 13 November

An 8-hour stop work period by tug engineers from 06:01 until 14:01 Sunday 13 November

 

Melbourne & Westernport:

An 8-hour stop work period by deckhands, engineers and masters from 00:01 until 08:00 Monday 14 November

 

Sydney:

A 48-hour ban by tug masters on the performance of work on certain shipping line vessels on Saturday 12 November and Sunday 13 November (this customer has already been advised of the action).

A 48-hour stop-work period by casual and fixed term tug masters from 00:01, Saturday 12 November until 00:01, Monday 14 November

A 48-hour ban on performing recall and /or relief work from 00:01 Saturday 12 November until 00:01, Monday 14 November.

 

Western Australia :

The actions above are in addition to stop work periods in WA from tomorrow in Albany, Fremantle, Kwinana and Geraldton as advised in our last stakeholder update.

Integrated Cargo System (ICS) messaging delays

Freight & Trade Alliance (FTA) has received numerous reports from members of extensive messaging delays with the Integrated Cargo System (ICS).

FTA have addressed the matter with senior management of the ICS Systems team at Australian Border Force . This is delaying the processing of Customs entries through the Border Force system.

Bio Security processing delays continue

Freight & Trade Alliance (FTA) has received extensive feedback from members in relation to document assessment (three to seven days) and lengthy delays (in many instances, several weeks) in inspection booking responses and next available inspection times by the Department of Agriculture, Fisheries and Forestry (the department).

 As a result, recent feedback indicates that in addition to exorbitant container detention fees being paid to shipping lines for failing to return empty containers to nominated facilities within prescribed timeframes, high storage charges are being applied by terminals and depots until cargo is released by the department.

 This outcome is particularly alarming as it has occurred during a period that is typically regarded as ‘off peak’ in the lead up to the Brown marmorated stink bug (BMSB) seasonal measures commencing 1 September 2022.

 In the interim, in order to provide some visibility of the problem, FTA has been providing regular member updates, formal submissions (including to the Productivity Commission review of Australia’s Maritime Logistics Systems – recommendation 7) and media commentaries in relation to the ongoing challenges being faced by industry when having cargo assessed or inspected by the department.

Seasonal measures for Brown marmorated stink bug (BMSB) 2022-2023

BMSB seasonal measures will apply to targeted goods manufactured in or shipped from target risk countries, that have been shipped between 1 September and 30 April (inclusive), and to vessels that berth, load, or tranship from target risk countries within the same period.

  • All target high risk goods shipped as break bulk must be treated offshore prior to arrival into Australia.
  • Untreated break bulk will be directed for export.
  • Onshore treatment is not permitted.

Click here for more Details

Sydney Empty Container Congestion Spikes – A Broken System

Empty shipping container congestion has spiked again in Sydney in recent weeks, leaving importers and their transport providers incurring added costs from empty de-hire delays, yard storage of empties, futile trucks trips, and additional administration.

The congestion and delays come off the back of a relatively positive month in June when over 80,000 TEU (Twenty Foot Equivalent Units) of empties were evacuated by shipping lines through Port Botany, with a Load/Discharge Ratio of 1.07.

Unfortunately since then, weather events in Sydney have led to unforeseen reductions in the movement of empty containers away from Port Botany, leaving the main Empty Container Parks (ECPs) at or near capacity. The ECPs have not been able to accept additional empty equipment for their client shipping lines and are asking importers / transport operators to contact shipping lines for de-hire alternatives, which are not forthcoming.

The empty container chain in NSW is unfortunately broken. It takes only slightly higher import volumes, caused in large part by off-window vessel arrivals and bunching, and larger container exchanges from those vessels, coupled with delays due to weather events or other issues impacting on ECP capacity, and the system becomes chaotic and unsustainable.

Trucks are literally driving from ECP to ECP looking for a de-hire location, only to be told by ECP operations staff that they aren’t accepting that equipment anymore due to capacity constraints, or that a redirection has been notified. This is despite the transport operator having a valid Notification Window slot booking through the Container chain truck-arrival notification system which aren’t being accepted in good faith.

CTAA has seen numerous email exchanges with shipping lines where they have been unable to advise an alternative de-hire option, yet they are also reluctant to issue immediate waivers or extensions to container detention fee policies even though they cannot offer adequate de-hire capacity.