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January 2020 Newsletter

January 2020

 

Methyl Bromide Shortages in Singapore

Treatment providers in Singapore have advised there is a shortage of Methyl Bromide gas for treatment of cargoes. The main reason is due to the increased number of transit cargoes being treated for Brown Marmorated Stink Bug (BMSB) in Singapore, however this is further compounded by a wider global shortage of bromine used to produce Methyl Bromide.

The freight industry in Singapore has been requested to assist in this time of shortage by requesting treatment of only the most urgent items in the short-term. Stocks of Methyl Bromide are expected to be replenished by mid-February.

A proposal was put forward to the Department of Agriculture to use Phosphine as an alternative to Methyl Bromide, however this was rejected by the Department who advised they are unable to accept any other treatments besides those already approved for BMSB.

Henning Harders is monitoring the situation and will update if further information arises.

 

Suspension of BMSB Fumigation Providers

The Department of Agriculture has published a Notice to Industry advising of the immediate suspension of two Brown Marmorated Stink Bug treatment providers. This brings the total number of currently suspended providers to five, as detailed below.

  • Centro Disinfestazione Livornese Srl, Livorno, Italy (AEI: IT4004SB);
  • Future Wang Rony (KLG) Sdn Bhd, Selangor, Malaysia (AEI: MY0121MB);
  • National Fumigation & Termite Service, Baytown, TX, USA (AEI: US4039SB);
  • Yakutlar Liman Hizmetleri Ilaclama Tas. San Ve Tic Ltd Sti, Izmir, Turkey (AEI: TR4014SB); 
  • Success Pest Control Sdn. Bhd, Port Klang, Malaysia (AEI: MY0145MB).

 

If your suppliers are currently using any of these providers for export cargo treatments, alternative providers should be sought. Any goods en-route to Australia treated by these providers will need to be treated again upon arrival.

If you require any further information or have any concerns, please contact your Key Account Manager.

 

Australian Border Force Press Releases

The Australian Border Force (ABF) had a busy month in December, with various detections of contraband items imported into Australia through its seaports and airports. Significant detections include smuggled tobacco, drugs, firearms and explicit material which have resulted in multiple arrests in cooperation with the Australian Federal Police (AFP).

These detections highlight the vigilance of the authorities however it is important to note that many of these events come to their notice with support from the community. If you see or hear of anything concerning, please report it to Borderwatch online through the ABF website, or contact the National Security Hotline on 1800 123 400.

 For further information please refer to the ABF Newsroom or contact us.

 

Australia Hong Kong and Peru Australia Free Trade Agreements

The Australia Hong Kong Free Trade Agreement (A-HKFTA) has entered into force on 17th January 2020. This agreement is another significant step forward for Australia, however the entry into force of this particular agreement came with much less ceremony than that of many other agreements.

To substantiate a claim for preferential duty rates under this agreement, a declaration of origin from the exporter, producer or importer must be available, similar to that for the Japan Australia Economic Partnership Agreement (JAEPA).  A certificate of origin is not required.

In addition to the above agreement, the Peru Australia Free Trade Agreement (PAFTA) is expected to enter into force on 11th February 2020. Further details for this agreement will be made available as they are released.

If you require any further information regarding these agreements or advice on how to substantiate any claim for preference, please contact Harders Advisory.

 

Incoterms 2020

Incoterms 2020 has been released. The good news for many is that there are only minor changes from Incoterms 2010 with the addition of a Delivered at Place Unloaded (DPU) incoterm, and removal of the Delivered at Terminal (DAT) incoterm.

DPU allows for sales contracts to specify delivery unloaded to any named place, however does not include payment of duty like a Delivery Duty Paid (DDP) contract.

For further information please contact your Key Account Manager or Harders Advisory.

 

Changes to service standards for Department of Agriculture Inspection Bookings

The Department of Agriculture has notified industry of a change to the inspection booking service standards.

Effective immediately, the Department will confirm receipt of a booking request, cancellation or amendment within one business day, rather than confirmation of a booking. The Department believes that this change will allow their booking teams additional time to consider all variables for each inspection, such as officer availability and matching skillsets. This is hoped to help reduce lengthy wait times for inspections.

Henning Harders will monitor the situation and provide updates where available, however if you have any concerns, please contact us.

 

Australian Border Force Releases its December 2019 Goods Compliance Update

The December issue of the Goods Compliance Update has been released. It is evident that Australian Border Force (ABF) has stepped up its compliance activities with the number and value of infringement notices issued to industry in Q1 2019-20 already approaching that of the entire financial year 2018-19.  This is further proof of the compliance driven approach adopted by ABF in recent years.

Henning Harders has always acted in the compliant manner befitting of any professional services business, which is aided by the compliant nature of all stakeholders. If the above is of any concern however please contact Harders Advisory for more information. 

   

Coronavirus and extension of Lunar New Year

The outbreak of the coronavirus that began in the Chinese city of Wuhan has since spread through all provinces of China, and we are now seeing an international risk to countries worldwide.

In efforts to contain the virus, the China Central Government has announced an extension to the Lunar New Year holiday to up to 9th Feb, depending on the municipal area. It’s a responsible and necessary step to reduce the spread in China, and to assist with reducing global infection.

This will likely disrupt normal production and freight handling after Chinese New Year, as factories will be closed for longer and will have a lack of staff to complete orders.

 

If you have any questions or comments regarding this newsletter please contact your Henning Harders Key Account Manager