Prepare for ChAFTA start on 20 December 2015 - if you can!
December 2015.
Andrew Hudson, Partner, Melbourne

At a recent ECA Ministerial Roundtable, the Minister for Trade and Investment indicated that he and his Chinese counterpart were working towards a commencement date for ChAFTA of 20 December 2015. Even so, there was no corresponding public announcement and some doubted that was to be the case.

However, during the course of the DFAT Trade Agreement Negotiations and Implementation meeting of Peak Organisations in Canberra on 8 December 2015 (which I attended on behalf of the ECA), DFAT confirmed that Australia and China were to exchange "Diplomatic Notes" today (9 December 2015) with the intent that ChAFTA would then commence on 20 December 2015.

The proposed commencement has a number of immediate consequences:

• It abridges the standard 30 day period for commencement following the exchange of Diplomatic Notes in the same manner as applied to the commencement of KAFTA.
• It will deliver one tariff cut for 2015 on commencement with one to follow on 1 January 2016.
• For those in the supply chain for goods including importers, exporters, producers and service providers such as licensed customs brokers and freight forwarders, it means a busy time. Parties will be scrambling to secure appropriate Certificates of Origin (CoO), Advance Rulings, Declarations of Origin (DoO) and to arrange freight to take advantage of ChAFTA from its commencement.
• The DIBP website (click here) includes some resources regarding the "customs" aspects of ChAFTA including details of the parties issuing CoO in China and Australia as well as the address for applications in Australia for Advance Rulings required for DoO.
• The DIBP website also contains some answers to FAQs – which represent the position of the DIBP on some important issues, although it must be said that I do not necessarily agree with all the comments.
• The issue regarding the consignment of goods to Australia through HK seems to have been remedied through the passage of a new Regulation summarised here. In essence the Regulation states that so long as goods are transported from China through the "Customs Territory of HK" they are deemed to be subject to customs control and remain entitled to retain the status as China originating goods. However, other acts in relation to goods in HK can still cause those goods to lose their status as China originating goods so care must be taken.
• The issue of consignment of Australian originating goods from Australia to China through HK (or other "non – parties") has yet to be resolved and is still a "work in progress". That will cause issues for Australian exporters.
• DFAT has advised that further information on ChAFTA commencement arrangements will be published on its website (click here) from the exchange of Diplomatic Notes today.

While I recognise the difficulties experienced in finalising the commencement arrangements for ChAFTA, I think it is fair to say (as DFAT did) that there may be some "teething problems" with these customs aspects of ChAFTA. We can only hope that the DIBP recognises those problems and puts away the Infringement Notice pad for inadvertent and innocent breaches of the ChAFTA origin procedures.

Streamlined trade a step closer
July 2015.

Streamlined trade is now a step closer with the launch of the highly anticipated Australian Trusted Trader.

Please click here to view

Implementation of Australian Trusted Trader
July 2015.

Australian Trusted Trader (ATT) is being implemented in a phased approach starting with limited participation to test and refine processes before it is opened more broadly.

Please click here to view

The China-Australia Free Trade Agreement
June 2015.

China is Australia’s largest trading partner. It buys almost a third of all Australian exports, valued at nearly $108 billion in 2013-14, and is our top overseas market for agriculture, resources and services exports. Chinese investment in Australia has been growing strongly in recent years, reaching almost $65 billion in 2014.

Please click here to view

Trade between Vietnam & Australia
september 2014.

Please view the latest data on trade between Vietnam & Australia.

Please click here to view

New office in HCM
June 2014.




It has been many years in the planning & we have arrived.

DA Global has opened their office in HCM.

With over 20 years’ experience in the Vietnam market, relocations of manufacturing plants, air & sea freight services to Australia, the US & Europe, it made perfect sense to utilise this experience along with our long term partner & formalise the new joint venture.

While the transport methods may not be your traditional type:



The friendly personal service synonymise to both Vietnam & Australia will be our focus.

More details to follow soon, as they say watch this space

Customs penalty regime
February 2014.

Customs penalty regime

ACBPN 2014/07  describes the start of the new Infringement Notice Scheme, which comes into effect on Saturday 1 February 2014.  Any offences committed on or after Saturday may be subject to significantly higher penalties than previously.  Also, a wider range of offences is now covered by the scheme.
 
For example: 

• If a licensed depot fails to satisfy one of the conditions of its licence, then the INS penalty would be $7,650 per offence.  In the past, the INS penalty was $1,700 per offence.
• If a company delivers a piece of cargo without approval (no Authority To Deal), the INS penalty would be $7,650 per offence.  In the past, it was $2,040. 
• If a brokerage is responsible for including false information in an import declaration, the INS penalty would be $7,630 per offence, or 75% of the short-paid duty, whichever is greater.  In the past, only the importer was liable for such errors, even if it wasn’t really their fault.
• If an import company or a broker fails to keep commercial documents for five years, or fails to produce those commercial documents when required to do so, the INS penalty would be $3,825 per offence.  In the past, there was no INS penalty and our only option was to prosecute the offender.

Paul Zalai
Director FTA

CLICK HERE TO FIND OUT MORE ABOUT THE BORDER COMPLIANCE PROGRAM - CPD

New Regulations from the Chinese Ministry of Transport
January 2014.

Notification on Implementation of New Regulations from the Chinese Ministry of Transport (MoT) Maersk Line would like to inform you that the Chinese Ministry of Transport (MoT) has issued a circular related to international maritime transportation of cargo. New regulations are applicable to export shipments from China across the globe.

In order to promote fair market practices for the regulated trade lanes, MoT has appointed Shanghai Shipping Exchange (SSE) to provide a freight and tariff filing system for all carriers. Effective 15 February 2014, the Chinese government will audit our contract filings for these regulated trade lanes in accordance with the below mentioned rules.

Rules:

• A carrier can only enter into contracts with actual cargo owners and MoT certified NVOCCs.
• All service contracts and negotiated rates need to be filed with SSE prior to their use by carriers and their customers.
• If you are an NVOCC who accepts liability as a carrier, a business engagement with carriers is possible only when you are registered with MoT with your name listed in the MoT certified NVOCC list on the MoT official website.
• A contract can only be used by the contractual customer and its associates “who are a part of the contract”.
• Only the contractual customer name or that of its associated entities for a service contract can appear on the Bill of Lading (B/L).
• An e-mail confirmation from the customer will be needed to accept an engagement as a contractual engagement in case of absence of a formal document.
• Contract price will only be valid 24 hours after filing with the Chinese regulatory. 

Consequence of Non-compliance:

• Income earned out of non-compliance to the regulations by a non-registered NVOCC will be considered illegal income. This will be confiscated by the Chinese government.
• A fine equivalent to 5 times the illegal income earned is payable in case of non-compliance to these regulations.
• Any deviation from these regulations if discovered by MoT will be considered an abuse of contract and shall be considered a violation to international maritime rules.
• Penalties for a Carrier can include cancellation of business license to operate in China or compulsory reduction of port calls.

Logistics company swings into action as key sponsor
November 2013.



DA Global Logistics, has joined the quest for a cure by becoming the naming sponsor of the swimathon which will be held in February.

Please read the latest Newspaper Articles.
Macarthur Advertiser : Open in pdf
Camden - Narellan Advertiser : Open in pdf
Wollondilly Advertiser : Open in pdf

September Newsletter
Monday 3rd of September 2012.

RATES TO GO UP?

The Shipping lines have announced an increase effective 1 September 2010. This is the third announcement since July of pending increases with the other 2 being shelved:

To maintain a high standard of service the participating member lines of AADA (Asia Australia Discussion Agreement) will be implementing a Peak Season Surcharge (PSS) effective  1st September, 2010 . The PSS is necessary to assist carriers to recover in part the extra cost incurred due to upsurge of cargo movement.

From 1st September, 2010 outward shipments with origin in Korea, China, Hong Kong and Taiwan  to ports and points in Australia will be levied a PSS of  US$300/20’ and US$600/40’ on top of the ocean freight.

The peak season surcharge will be applied for all cargo on the basis of B/L (Bill of Lading) dates.

NEW LINES TAKE A FOOTHOLD.

Since the introduction of TS Line & POS, there has been an increase in capacity for the Australian Trade. This has resulted in rates remaining low in a usually active market. Every year from July, we have historically seen increases in sea freight charges resulting in a doubling of rates. While this year we have not seen the increase we also did not see the very low rates of last year. Stability is not such a bad thing in the market.

FOR THE STATISCALLY MINDED OR WHO’S IMPORTANT THEN?

Below are some interesting statistics compiled by the Australian Government, whoever they are today?

Australia's trade and investment relationship with China:

Australian merchandise trade with China, 2009: Total share:   Rank:    Growth (yoy):

Exports to China (A$m): 42,353                            21.6%             1st       31.0%
Imports from China (A$m): 35,782                        17.8%            1st        1.5%
Total trade (exports + imports) (A$m): 78,135      19.7%              1st      15.6%

Major Australian exports, 2009 (A$m):           Major Australian imports, 2009 (A$m):
Iron ore & concentrates 21,700                           Clothing 3,959
Coal 5,633                                                            Telecom equipment & parts 3,251
Wool & other animal hair (incl tops) 1,382          Computers 2,903
Copper ores & concentrates 1,028                      Prams, toys, games & sporting goods 2,128                         

 

INDONESIA, ON THE UP?

Indonesia’s economy has posted robust growth in 2008 and one of the rare countries which successfully posted a positive growth rate in 2009, navigating through the global financial turmoil and economic slowdown. In preliminary figures for 2009, the economy charted fairly vigorous growth at 4.3% (yoy) and it is projected at 5.5% in 2010, meanwhile, inflation is predicted to be around 5 percent in 2010.

Indonesia Vice President Boediono said Indonesia’s economy would grow by 7 percent in 2010 as the government plans to boost infrastructure and investment amid the recovery of global economy.

With the target of fiscal deficit 1.6% of GDP in 2010 Budget, fiscal policy is taking into account the need to stimulate the economy and will continue at as lower pace in 2010. Tax policy reform continues with lower tariff and higher compliance.
The Government proposed to spend 61.2 trillion Rupiah in 2010 to boost Indonesia’
economy, slightly down from the 70 trillion Rupiah stimulus package in the 2009 budget, in an attempt to boost investment in the country, Indonesia is to further intensify law enforcement, harmonize investment laws and ameliorate the bureaucracy towards better public services.

SPORT
If you, like me are a soccer nut, then you will rejoice in the start of the EPL. If you are also a Liverpool supporter, prays are conducted every Friday.
Good luck to all teams.

 

See you next month

Editor in waiting
John Taylor

Customs Trade and Transport Update
Augsust 2012.

Please read the latest Customs Trade and Transport Update by Hnt & Hunt Lawyers Download here.

May Newsletter
Wednesday 9th of May 2012.

INDONESIA

Indonesia’s economy has posted robust growth in 2008 and one of the rare countries which successfully posted a positive growth rate in 2009, navigating through the global financial turmoil and economic slowdown. In preliminary figures for 2009, the economy charted fairly vigorous growth at 4.3% (yoy) and it is projected at 5.5% in 2010, meanwhile, inflation is predicted to be around 5 percent in 2010.

Indonesia Vice President Boediono said Indonesia’s economy would grow by 7 percent in 2010 as the government plans to boost infrastructure and investment amid the recovery of global economy.

With the target of fiscal deficit 1.6% of GDP in 2010 Budget, fiscal policy is taking into account the need to stimulate the economy and will continue at as lower pace in 2010. Tax policy reform continues with lower tariff and higher compliance.
The Government proposed to spend 61.2 trillion Rupiah in 2010 to boost Indonesia’
economy, slightly down from the 70 trillion Rupiah stimulus package in the 2009 budget, in an attempt to boost investment in the country, Indonesia is to further intensify law enforcement, harmonize investment laws and ameliorate the bureaucracy towards better public services.

INDIA

Economy :
The Rupee has become stronger by 5 percent in the month of March and I would expect Imports to increase during this period. At the same time Exports could go down or Export sell rates of Products would increase at this stage by 5 percent or so.

India Premier League:
1. As on Sunday morning : only Mumbai Indians are secured of the S/ F berth. The other 3 will be out of 5 teams and this intensely contested Event will go to the wire these last couple of days. These five are :
Royal Challengers Bangalore
Delhi Daredevils
Deccan Chargers Hyderabad
Chennai SuperKings
Kolkata Knight Riders.

2. The IPL 4 will have 2 new teams :
Kochi ( State of Kerala - promoted as God's Own Country on the Southern End of the West Coast ). The promoters bid was usd 380 million.
Pune ( a bustling city 160 kms East of Mumbai in the State of Maharahstra ). This was taken for USD 333 million.

3. Big Controversy has been blowing on the Kochi deal as Politicians, Cricket Stars, possible Underworld Dons have been exposed to have influenced and funded the Kochi consortium. This news has hit since 1 week and important Newspapers are devoting 2 full sheets and Front Page coverage each day.

 

CHINA

Shanghai's foreign trade up 36pc in February
SHANGHAI'S foreign trade value increased 35.8 per cent year on year to US$22.7 billion in February,
Export value grew 34.5 per cent to $11.4 billion. Import value went 37.2 per cent up to $11.3 billion.
Value of export under general trade surged 61.5 per cent to $39.8 billion, while import increased 38.8 per cent to $5 billion. Export of processing trade grew 19.4 per cent to $63.9 billion. Import value went 24.7  per cent up to $2.5 billion.Export of mechanical and electrical products rose 26.7 per cent to $8.3 billion, while import value increased 31.7 per cent to $6.4 billion. Hi-tech product exports rose 26 per cent to $5.3  billion while imports increased 27.7 per cent to $4 billion.
China's top 100 retailers see big sales rise in Jan-Feb
BEIJING - China's top 100 retailers reported sales increases of 24 percent on average in the first two months this year, indicating the retail market had rebounded to pre-crisis levels, according to figures released Wednesday by the Ministry of Industry and Information Technology.
The statistics showed the 100 retailers' sales growth rate increased by 15.3 percentage points year-on-year. In February alone, the retailers saw sales soar by 79.4 percent from a year earlier to 38.2 billion yuan ($5.6 billion).
Among the major commodities, jewelry, garment and household appliances recorded around 30 percent sales growth each in the Jan-Feb period due to the Spring Festival shopping spree.
Food sales skyrocketed by 91.1 percent last month due to the long holiday, last year's low comparison base and retail price rises.
Sales of cosmetics and daily necessities remained relatively stable in the first two months to stand at 2.8 billion yuan and 6.2 billion yuan, up by 17 percent and 20.2 percent respectively.