Brown Marmorated Stink Bug (BMSB) Risk Season 2017-18 Mandatory treatment for containerised goods from Italy
Mandatory BMSB treatment for containerised goods from Italy
We have received advice from the Department of Agriculture and Water Resources (DAWR) informing us that the department has found significant numbers of Brown Marmorated Stink Bugs (BMSB) on arrival in Australia in various types of containerised goods arriving from Italy.
DAWR advise that these detections indicate that BMSB are sheltering in a range of containers and goods outside of those captured by existing measures.
“To manage the risk posed by these goods, all containerised goods shipped via sea cargo (FCL, FCX and LCL) from Italy that arrive in Australia between 17 January 2018 and 30 April 2018 which includes those shipments already on route to Australia (including new and unused goods), will require treatment on arrival using methyl bromide, or another approved treatment for BMSB.
Goods already treated offshore with one of the approved BMSB treatments, and where a valid treatment certificate is presented to the department, will not require further treatment.
These measures apply to all target goods originating in Italy during BMSB season. This includes goods that may subsequently be loaded/transhipped to Australia through other countries in Europe for goods originating in Italy.
Exceptions from treatment apply to goods that fall within one of the excluded tariff groups: Fresh produce, including nursery stock and live plants, live animals, food for human consumption and seeds for sowing.”
The department has also published the following Import Industry Advice Notice “04-2018 – Brown Marmorated Stink Bug (BMSB) Risk Season 2017-18 Mandatory treatment for containerised goods from Italy” which can be found via the following link for your information http://agriculture.gov.au/import/industry-advice/2018/04-2018.
It is expected that cost for treatment of any LCL shipment will incur costs of approx. AUD 18.00 Per W/M to cover the costs for the fumigation/treatment of the full container loads.
We will be liaising with all customers affected by this situation, and communicating action required for all shipments either already in transit or due to depart ex Italy.
Should you require any additional information, please do not hesitate to contact us.
Further to the last round of Infrastructure Charges in April this year, DP World Australia (DPWA) have informed the industry that they will be increasing the “Infrastructure Charges” for import and export containers in Melbourne, Sydney and Brisbane.
The increases, scheduled to commence from 1st January 2018, will result in the following changes to the DPWA Infrastructure Surcharges:
• Melbourne: $32.50 to $49.20
• Brisbane: 32.74 to $38.75
• Sydney: $21.16 to $37.65
The Surcharge applies to full containers received or delivered via road or rail.
FYI – The DPWA Notice(s) to Customers can be downloaded below for your reference:
• Notice to Customers – Melbourne Terminal
The industry associations have advised the ACCC that such charges should be paid by DPWA customers being the “shipping lines” not transport operators and freight forwarders on behalf of importers / exporters, due to the lack of commercial relationship and inability to enter into commercial negotiations.
However, either way, we would expect this cost would be passed on to the end customer, whether via the Shipping Lines or Transport/Freight Forwarder operators.
Recently, ACCC issued the 2016-2017 Annual Container Stevedoring Monitoring Report which noted that the ‘new infrastructure charges’ raise issues for the port supply chain and will be interesting to see if ACCC will start to monitor such increases in infrastructure charges.
We will continue to keep you updated of this situation, and if any there are any changes to the above.
Please feel free to contact any one of our staff should you require any additional information.
The following information has been received today, and has been provided by the Australian Border Force, and is forwarded for your attention.“The implementation of GST on low value imported goods was discussed at the CAG meeting on 20 June 2017 after the Treasury Laws Amendment (GST Low Value Goods) Bill 2017 passed the Senate. We can now advise that the legislation has passed Parliament and will come into force once it receives Royal Assent. The Bill is likely to receive Royal Assent before the end of July.Please find below an extract of advice Treasury has recently provided to stakeholders who had participated in the consultation conducted on the Bill. You will note the strong advice from Treasury that the vendor collection model is not conditional upon the outcome of the Productivity Commission review, and that businesses should start preparing for the changes now.Dear stakeholders,As you may be aware, the federal Parliament today passed the Treasury Laws Amendment (GST Low Value Goods) Bill 2017 with amendments. See the Treasurer’s Media release.Under the legislation passed by the Australian Parliament, from 1 July 2018, suppliers, online marketplaces and re-deliverers with an Australian GST turnover of $75,000 or more are required to register, charge, report and remit GST on sales of low value goods to consumers in Australia (vendor collection model). High value goods (with customs value greater than $1,000) will continue to be taxed at the border.As per the legislation, the vendor collection model will commence on 1 July 2018 and is not conditional on the outcome of a Productivity Commission Inquiry that is required to report on 31 October 2017. The Treasurer, the Hon. Scott Morrison, clarified in his speech to Parliament today that the Government’s policy is to implement the vendor collection model as legislated and that businesses should take the actions needed to implement it on the basis of the vendor model. The Treasurer went on to say the Government will not look kindly on businesses that in 6 months’ time say it is too difficult to implement because they have not prepared for compliance by 1 July 2018.With regard to the ICS changes, the additional fields and GST exemption code are available in the test environment and have been for some weeks. While the additional fields are also visible in the production environment, the GST exemption code of “already paid” will not be available in the production environment until the commencement of the legislation in 2018.Given the availability of the fields in the test environment, and the advice from Treasury above that businesses should start preparing for the vendor collection model now, the Department encourages you to commence work on your required preparations for these changes and advise your members, where applicable, of this advice.If you have any questions about scenarios where GST may or may not be payable on low value goods, you can contact .”
Less than three months after the announcement of an Infrastructure Surcharges imposed on container transport operators by DP World, rival stevedore, Patrick Terminals, has announced increased Infrastructure Surcharges in Melbourne, Sydney, Brisbane and Fremantle from 10th July 2017.
The Patrick Surcharges will be as follows:
Sydney: $25.45 per container
Fremantle: $4.76 per container
Brisbane: $32.55 per container
Melbourne: $32 per container
The Infrastructure Surcharges will be applied to both road and rail transport operators for all full container movements, both import and export.
Patrick’s announcement is as per link: http://www.patrick.com.au/documents/NewDocuments/Infrastructure-Notice-to-Customers-final-June-2017.pdf
In relation to these Infrastructure Surcharges, The Forwarding Industry is of the opinion that:
• The relevant Infrastructure Surcharge will not result in a net public benefit
• The VBS, being a mandatory and monopolistic arrangement for terminal vehicle access, is not the appropriate manner for any Infrastructure Surcharge cost recovery and its implementation
through the VBS. Noting access to the VBS is by way of a commercial arrangement between transport operators and 1-Stop, and these contracts have individual and cumulative downstream
effects on third party users
• There is a lack of transparency as to the determination of cost and the rationale for the Infrastructure Surcharge
Take it or Leave it
The Various Transport Alliances believe additional stevedoring competition on the east coast of Australia has naturally led to highly competitive market negotiations for stevedoring contracts, and a commercial reluctance by the stevedores to negotiate higher prices with Shipping Lines to cover their rising costs of doing business.
Perversely though, it seems that this doesn’t faze Patrick or DP World, because they can offset these costs with impunity by imposing Surcharges on other parties in the chain who can’t push back.
Seemingly too, regulators such as the ACCC and governments have abandoned the container logistics sector and are allowing the market to bear, even though it is clear that the stevedores have unfettered power to impose these charges on a “take it or leave it” basis.
The latest announcements by Patrick has been brought to the further attention of the ACCC and asked them again to intervene. Will the ACCC do so? That is a matter for the Competition Watchdog, but if it doesn’t, it’s a clear sign that the system of cost recovery and revenue generation in the container logistics chain in Australia is broken.
Service Level Agreements / Performance Measures:
The existing Carrier Access Arrangements have again been exposed during these last months as being wholly inadequate to underpin the relationship between the stevedores and transport operators into the future.
Transport Alliance companies will pursue dialogue with each stevedore to establish proper Service Level Agreements (SLAs), including agreed performance measures, and appropriate mechanisms to have a say in how the millions of dollars collected through these “taxes” are spent to improve landside container logistics efficiencies and productivity.
We will monitor any progress regarding these charges, but expect these will be implemented irrespective of any opposition raised.
Should there be any further information required, please do not hesitate to contact us.
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