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Loch M Fraser Logistics Pty Ltd
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Find Tailor Made Supply Chain Solution with Loch M Fraser Logistic | Personalized Customs Clearance, Quarantine Entry and Advice.
Find Tailor Made Supply Chain Solution with Loch M Fraser Logistic | Personalized Customs Clearance, Quarantine Entry and Advice.

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Importing and unexpected costs

As an importer your goal would be to provide goods to customers that may not be available locally and make money while doing it.

To ensure that your business is successful, your primary job is crunching numbers to ensure that the landed cost of your good is not higher than your sale price.

So what happens when additional costs of a random inspection or hold by authorities throws your figures off balance? We’ll explain further..

When you import goods into Australia you are governed by the Department’s that protect our borders. In this case, we’re referring to the Australian Border Force (ABF) and the Department of Agriculture and Water Resources (DAWR).

Protecting our borders is a shared responsibility – and the cost of this is borne by the importer. Random holds are often placed on goods by both the ABF and the DAWR for the following reasons (but not limited to)

ABF

Checking the integrity of the Customs Clearance process as a whole

Preventing the importation of prohibited goods into Australia by searching containers looking for illegal, incorrectly declared or dangerous goods

DAWR

Biosecurity risk management including timber pests, soil, plant and animal matter

Compliance with biosecurity conditions applicable at the time of entry

As these holds are random we do suggest that you allow for an amount in your costings to cover these possible unforeseen outlays.
Additional costs to protect our borders should be considered as a cost of business for doing international trade.

If you have questions regarding the any unexpected costs, or any of our servies, please do not hesitate to contact me direct.

Kinds regards,
Danny Cobb
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Australia-India Comprehensive Economic Cooperation Agreement

About the Australia-India Comprehensive Economic Cooperation Agreement negotiations

Recent years have seen remarkable growth in the trading relationship between India and Australia, fuelled by the many complementarities between the two economies. Two-way trade in goods and services has grown in value from $6.8 billion in FY2003-04 to $14.8 billion in FY2013-14.

India is the world's largest democracy and is a market of 1.2 billion people. Its youthful population, diversified economy and growth trajectory present significant opportunity for Australian business, especially in the agriculture, energy, manufacturing, mining and services sectors.

Negotiations to conclude a Comprehensive Economic Cooperation Agreement between Australia and India were launched in May 2011. There have been eight rounds of negotiations, the most recent of which was held in July 2015.

During official visits to India and Australia in September and November 2014 respectively, Prime Minister Tony Abbott and Prime Minister Shri Narendra Modi renewed both countries' commitment for an early conclusion of an equitable, balanced, comprehensive and high quality agreement.


The Department is seeking public submissions on the Comprehensive Economic Cooperation Agreement negotiations.

Key interests and benefits:

•A comprehensive agreement would assist in broadening the base of merchandise trade by addressing tariff barriers and behind the border restrictions on trade in goods.
•There is significant potential to expand trade in services between India and Australia. An FTA could facilitate growth in services trade by reducing barriers faced by Australian service suppliers and by increasing regulatory transparency.
•An FTA could facilitate and encourage investment by reducing barriers, increasing transparency and enhancing investment protections.

For business 

Visit our extensive India country guide to learn more about how to do business in India, and the opportunities available.

Austrade has identified potential opportunities for Australian suppliers of goods and services in a number of sectors. Austrade's India country page supplies general information on doing business and on specific export opportunities. The Austrade website has a database that can be searched by industry.

Contact us

Requests for information, advice or comments on the free trade agreement should be addressed to:

Email: David.Simmons@lochm.com.au

Source:DFAT
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Building products at risk of containing asbestos


The Department of Immigration and Border Protection assesses all goods imported into Australia against a
number of risks, including asbestos. Goods at risk of containing asbestos are targeted by the Australian
Border Force (ABF) for compliance and enforcement action.
To ensure the ongoing safety of Australian consumers and construction industry members, the Department
of Immigration and Border Protection is actively targeting imported building products at high risk of
containing asbestos.
The Department urges industry members to ensure they are aware of the import restrictions and border
requirements for products that may contain asbestos.
An Australia wide ban on the importation, manufacture and use of all types of asbestos and products
containing asbestos took effect on 31 December 2003. Import restrictions complement state and territory
work health and safety laws that prohibit the supply, transport, use, or handling of asbestos unless an
exception applies.
Despite the restrictions, asbestos has been detected in a diverse range of imported building products,
including Expanded Polystyrene Sandwich (EPS) panels and similar products of fibre/cement compound
board, bitumen products used for damp-proofing, heat resistant sealing and caulking compounds, heating
equipment, lagging, switchgear with washers, electrical panel partitioning, electrical cloths and tape.


Imported building products at risk of containing asbestos 

Asbestos is a naturally occurring mineral fibre, still widely used in some countries due to its flexibility,
tensile strength, insulation quality, chemical inertness and affordability. In a number of countries, unlike
Australia, there are few to no restrictions in the use and supply of asbestos. Local standards in some
countries may even classify goods as ‘asbestos-free’ where they meet a certain low level of asbestos
content. In Australia, a product found with any level of asbestos is prohibited for import or use. Importers
should be aware of the varying definitions and standards applied in the country of origin and/or supply.
Many products containing asbestos can be freely ordered on the internet and will often claim to be
asbestos-free.
As a consequence, asbestos can be unintentionally and unknowingly imported into Australia.
What can be done to ensure imported building products do not contain asbestos?
The onus is on importers to ensure they do not bring prohibited imports such as asbestos into Australia. All
goods imported into Australia are risk assessed and if there is a suspicion that goods arriving at the border
might contain asbestos, the goods are detained and documentation will be requested. 


The importer may be required to arrange for testing and certification to ensure that there is no presence of
asbestos.
In some cases, certification provided to importers from overseas manufacturers that goods are asbestosfree
has been proven incorrect or unreliable for the purposes of Australian Regulations.
The presence of asbestos in goods can only be confirmed by licensed competent persons1
taking and
sending samples to accredited laboratories for testing. The arrangement and cost of any independent
inspection, testing and storage of goods at risk of containing asbestos is the responsibility of the importer.

Guidance in regard to testing, certification and further information is available on the Department’s website
at border.gov.au/Busi/Impo/Proh/Asbestos

I hope this overview has given you an opportunity to consider any risk of importing these products and I would welcome an opportunity to arrange a time to meet with you and discuss further in person.

Regards,
Danny
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Dear Valued Clients,

We wish to advise that during the Christmas and New Year period of 2015 / 2016, Loch M. Fraser Logistics Pty Ltd will be operating to the following trading hours.


Christmas-New Year Trading Hours 

24th December  Half Day  7:30am to 11:30am
25th December  Public Holiday  Office Closed 

31st December  Half Day  8:00am to 12:00pm
1st January  Public Holiday  Office Closed

From 2nd January 2016, Loch M. Fraser Logistics Pty Ltd will return to normal trading hours.

We thank you for your support during 2015 and we would like to wish everyone a very Merry Christmas and a safe and prosperous New Year.
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After being kept secret for years, the wording of the Trans Pacific Partnership (TPP) has now finally been released. The wording contains practical guidance for traders on how to use the TPP.

The TPP is a free trade agreement (FTA) that if implemented will cover 40% of global GDP. The member countries are Australia, the US, Japan, Canada, Mexico, Vietnam, Singapore, Brunei, Malaysia, New Zealand, Chile and Peru. The TPP covers traditional FTA areas such as trade in goods, investment and services but also contains commitments regarding labour, competition and environment laws.

Some interesting points for those who trade in goods are set out below:

To claim the reduced duty rates offered under the TPP, an importer will need to present a certificate of origin. However, this certificate of origin can be prepared by the manufacturer, exporter or importer, and does not need to follow any particular form. This will make use of the TPP much easier than other FTA Australia has entered into.


1. The one certificate of origin can be used for multiple shipments over a 12-month period. Where you are trading in the same good over a continuous period, this provision will greatly cut down on the red tape associated with FTA use. This may be a reason why a party will seek to use the TPP over an alternative agreement such as the Japan Australia FTA.
2.
3. As expected, origin will be assessed by reference to content from all TPP countries. This will be particularly useful for goods exported from the US, where currently uncertainty about Mexican content can deter importers from using the US FTA. Under the TPP it will not matter if the US good contains content from Mexico, Canada or any other TPP member.

4. Not all imports into Australia will be immediately reduced to zero. However, generally it can be said that Australia’s tariff reductions under the TPP are quicker and wider than under other FTA. Examples of goods where the duty is phased out are:


• Footwear – reduced over 4 years;
• Herbicides – 5% for the first 3 years than reduced to zero;
• Many clothing and textiles items – 5% for the first 3 years than reduced to zero;
• Motor vehicle components – reduced over 3 years;
• Certain irons and steels – reduced over 3 years.

If implemented, the TPP will constitute the second or third FTA Australia has with all but three TPP members. Despite this, there will be reasons why using the TPP will be desirable.

The first will be more relaxed certificate of origin requirements. Self-certification (including by the importer) will make claiming an FTA preference under the TPP much easier than some alternative FTA.

Also, the ability to use the one certificate of origin over multiple consignments will provide enormous benefit.

For many, the main benefit will be that it will be easier to establish that a good is covered by the TPP than one of Australia’s bilateral FTA due to origin being based on content from all TPP members.

What’s next?

Now that the wording has been released, each TPP member country will need to obtain domestic approval of the agreement. The biggest stumbling block could be the US where there are many critics of the TPP. For instance, Hillary Clinton has opposed the TPP.

Given the TPP will be debated in a US election year the ratification and domestic implementation of the TPP is far from certain.

Despite its uncertainty, the TPP should still be taken into account when making long-term supply chain decisions or negotiating long term supply countries. However, in the medium term traders are encouraged to focus on Australia’s existing trade agreements with TPP members and ensure that these are fully utilised.

Kind regards,
Danny Cobb
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GST - TO BILL OR NOT TO BILL - THAT IS THE QUESTION

Did you hear the one about ...

I had several enquiries yesterday about the ATO Interpretive Decision 2015/26 (ATOID) in relation to Goods and Services Tax (GST) and charges by shipping companies who supply international transport, so I thought I would share my thoughts in a non-advisory fashion. 

A copy of the ATOID may be found at the following link

https://www.ato.gov.au/law/view/document?docid=%22AID%2FAID201526%2F00001%22

My understanding of the most important aspects of the ATOID is summarised in the following points:

1. The position of the ATO is explained under the heading Decision in the ATOID - the fees paid for loading, handling and associated activities form part of the consideration for a GST free supply of international transport made by the non-resident shipping line and are therefore GST free under item 5 in subsection 38 â?" 355(1) of the GST Act. The conclusion to be drawn from this statement is that if you are not a non-resident shipping line the ATOID does not relate to you and relates to whether or not a shipping company should be charging GST in the opinion of the ATO;

2. The ATO gives examples of the charges the ATOID refers to. These examples appear in paragraph 5 of the ATOID under the heading Facts. These charges  include Terminal Handling Charge (THC), ISPS Security Fee (SEC), Import Delivery Order Fee (DOC)  and Equipment Handover Charge (EHC);

3. Licensed customs brokers (broker) and freight forwarders (forwarder) are in some cases concerned as to whether or not they should be charging GST when billing these charges out as disbursements. I cannot see any need to do so because a disbursement merely passes through the accounts of a broker or a forwarder and are not charges which are related to a service provided by a broker or forwarder and by definition, can never be. If you are merely passing on a charge as a disbursement that does not include GST I cannot see why you would charge GST, unless there was something about your particular circumstances which requires you to do so;

4. The second paragraph of the ATOID provides protection and confirms that if you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be required to pay any penalty or interest. However, you will be required to pay any underpaid tax or repay any over claimed credit, grant or benefit.  The only person who could be asked to pay GST in this situation would be the shipping company as they are the supplier of the service that would be either taxable or GST free.

See http://bit.ly/1Y5a9Zq

My policy for charging GST has always been If in doubt, charge it out. If you decide to charge GST for these costs it matters little as the cost to business will be refunded via a Business Activity Statement, while the cost to non business users of your services will be minimal and may give you peace of mind.

Regards,
Danny
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Aircargo and lithium batteries

Recently Asian Shipper reported on an Alaska Airlines flight that had to make an unscheduled landing after a credit card reader that contained lithium ion batteries began smoking.  Here’s the article:
AN Alaska Airlines passenger 737 flight from Newark to Seattle made an emergency landing in Buffalo after a credit card reader, used as the point-of-sale for onboard purchases of food and beverages, began to smoke in the cabin of the aircraft.
The card reader, which was powered by a lithium-ion battery, was a new device recently introduced on Alaska aircraft. This, after the US Federal Aviation Authority (FAA) warned of the risks of unstoppable fires from lithium batteries,
Said the airline: “While there were no flames at any point during the flight, the flight crew did use a fire extinguisher to stop the device from smoking while arrangements were made for an emergency landing in Buffalo, New York.”
Alaska Airlines has now removed all of its electronic credit card reading machines from its fleet for inspection as a result of the incident, reported Atlanta area Air Cargo World.
The FAA has been warning carriers about the possible danger from lithium-ion batteries, a number of which have over-heated and created fires aboard other planes.
Incidents have mostly occurred in cargo compartments and have prompted the FAA to back a proposed international ban of the batteries as cargo on passenger flights in and out of the US.
There were no injuries to the 181 passengers and six crew members aboard Flight 17, a 737-900ER.
It is important that when you are traveling on a aircraft that you are conscious of any batteries that you might be carrying.  Equally as important is the knowledge that when moving airfreight (aircargo) around the world you are aware of restrictions that are in place.
Do you need a quote for airfreight? Contact us  today for a competitive comprehensive quote.
Source credit: Asian Shipper
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New Zealand fur seal still squatting on Opera House stairs one year on

A young New Zealand fur seal which stunned onlookers playing on the steps of the Sydney Opera House one year ago has bucked expert opinion and made the steps his permanent home.

The juvenile seal, believed to be about five years old, has been basking on the VIP steps at the Opera House since October 2, 2014.

NSW National Parks and Wildlife Service senior wildlife officer Geoff Ross said the seal's behaviour was an example of the health of the colony.

"What we are seeing with all the seals these days is a resumption of their traditional haul-out sites," Mr Ross said.

"The Opera House may not have been a traditional haunt for seals but certainly the rocks on the point there before the Opera House was built probably would have been in the 1800s."
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Port of Long Beach Sets Another Cargo Record

The Port of Long Beach last month achieved its busiest September ever, closing out a record quarter in the port’s 104-year history.

Measured by individual containers of freight, cargo volume at the Port of Long Beach climbed 4.1 percent in September compared to the same period last year to 655,624 TEUs. The year’s third quarter — July through September — topped 2 million TEUs in a first for the Port, and improved 14.8 percent over the third quarter of 2014.

In July and August of this year, the Port of Long Beach broke its all-time monthly cargo volume record with 690,244 TEUs and 703,652 TEUs, respectively.

“In recent months, Long Beach has seen a robust return of once-diverted cargo,” said Jon Slangerup, Port of Long Beach CEO. “We greatly appreciate our shippers’ continued confidence in the Port of Long Beach.”

Through the first nine months of 2015 the Port has seen a 5.2 percent increase in cargo volume compared to the same period last year. At this rate, the Port would finish the year with more than 7 million TEUs for only the third time in its history, the last time being 2007.

This year’s third quarter saw 10.6 percent more imports and 10.5 percent more exports, compared to the third quarter of 2014.

For September alone, imports dipped 1.9 percent compared to the same month last year, to 332,909 TEUs. Exports grew 6.1 percent to 125,639 TEUs. Empty containers rose 14.6 percent to 197,076 TEUs. With imports exceeding exports, empty containers are sent overseas to be refilled with goods.

The Port of Long Beach is currently investing $4 billion in improvements to prepare for even further growth. In 2016, the Port of Long Beach is expected to overtake neighboring Los Angeles as top container shipping gateway in the country.
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The Australian Border Force (ABF) today reached a major milestone with the naming of the newest vessel in the Cape Class patrol fleet, Australian Border Force Cutter Cape York.

Cape York will soon join the seven other vessels in the Cape Class fleet by playing a significant role right around Australia’s coastline, from south of Tasmania through to the Cocos and Keeling Islands.

ABF Deputy Commissioner Operations, Michael Outram said the completion of the state-of-the-art Cape Class vessels was an excellent example of government cooperation with Australian industry.

“The Cape Class fleet was specifically designed with 21st century maritime law enforcement in mind,” Deputy Commissioner Outram said.

“They will allow us to better respond to border incidents and suspected illegal activity in our maritime zones and will ensure that we can keep the Australian border as safe and secure as possible.”
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