Henning Harders Tradeline March Newsletter

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Khapra Beetle (Trogoderma granarium)  Update

Recent Situation

The Department of Agriculture, Water and the Environment (DAWE), along with its state and territory counterparts, is responding to detections of khapra beetle in imported goods. Our understanding is that the two detections listed below, took DAWE over 20,000 hours to mitigate the risk.

In August 2020 khapra beetle was found in the packaging of a new fridge, by a resident in Canberra, ACT. In late October, also in Canberra, another resident found khapra beetle in the packaging of a new highchair.

The tiny adult Khapra beetle (top) and juvenile larvae (bottom) pictured on grains of rice.

Fridges

The Canberra resident who discovered insects in the fridge packaging quickly reported their find to the department. An immediate response was launched, with tracing activities identifying that the fridge was one of 76 imported in one infested shipping container. The fridges had been distributed to various locations across NSW and the ACT, by the one retailer. Detections of the insect have been made at multiple sites. The department has located, inspected, and removed the fridges from this consignment, and all have been fumigated under a Biosecurity Order. The locations where the fridges were stored and used, have been treated and are now undergoing monitoring to verify that khapra beetle is absent from all sites.

Highchairs

Upon receiving the report of khapra beetle in the highchair, the department launched a second response. Tracing efforts identified that 320 highchairs were imported in one single infested shipping container. The highchairs in this consignment were distributed nationally to 57 retail stores (owned by the one company) and two distribution/handling facilities.

Affected highchairs that remained at the retail premises were immediately removed and secured by the department under a Biosecurity Order. These highchairs and the areas where they were stored have been inspected and treated.

The remaining highchairs were sold to the public. Inspections and treatments of these highchairs are nearing completion, with a small number yet to be located. All highchairs that have been located have been removed and fumigated. Residences with an affected highchair have been inspected and treated, regardless of whether khapra beetle is found. Food stuffs which are attractive to khapra beetle such as flour, grains, dried fruit, pulses, spices, and dried pet food have been removed.

Packaging

Packaging infested with Khapra Beetle larvae.

Advice for Henning Harders Customers, If you work with or unpack imported goods, you need to be vigilant for khapra beetle and other pests found with shipping containers, if you detect any such infestations, please secure the container and contact your local Key Account Manager.


Australian Border Force (ABF)

Customs Tariff Amendment (Incorporation of Proposals and Other Measures) Act 2021

The Customs Tariff Amendment (Incorporation of Proposals and Other Measures) Act 2021 has now received Royal Assent. The consequential amendments to the Tariff should therefore commence on 29 March 2021.

The amendments to the Tariff include:

  • New subheadings for specifically formulated caffeinated beverages, formulated supplementary sports foods and formulated supplementary foods.
  • A new Note providing that products such as the gummi bears in Pharmacare are not classified medicaments of Chapter 30 , but as food supplements of 2106, unless another classification applies.
  • A new Note that wheelie bins are not classified to Chapter 87, and therefore their wheels are classified to Chapter 39 or Section XV as appropriate.
  • New Notes that provide that plates, rods, angles, shapes, sections, tubes, pipes and the like requiring further modification prior to being used cannot be classified as parts. New Chapter notes have been added to Chapters 73 and 76.

If these tariff amendments impact on your business and you would like additional information, please contact Steve Butler, our Head of Advisory Victoria.


Australian Trusted Trader (ATT) Update

There are currently 793 approved participants of the scheme with 227 applications currently progressing.

Following are some statistics provided by Australian Border Force resulting from the scheme:

Participants have saved approximately $4.7m in import processing charges resulting from the Consolidated Cargo Clearance benefit.

On average, Trusted Trader cargo is cleared in around half the time that non-trusted cargo is cleared at the border.

Direct debit reporting benefit – allows brokers to monitor direct debit functionality in advance and ensure any DD does not expire. 

Expansion of duty deferral benefit – reduces cashflow burden by allowing all import declaration charges to be deferred (except Excise Equivalent Goods duties) including Import Processing Charge / Wine Equalisation Tax / Luxury Car Tax / GST / Wood Levy

New Concept being considered – RCEP DOO – relevant to ATT exporters – will allow RCEP approved exporters allowed to sign the own Declaration Of Origin (DOO).  If you are a trusted trader you would become approved for this scheme to sign DOO for exports to 13 of the 14 RCEP countries.

For ATT importers RCEP is expected to be included on origin waiver benefit.  More information on this to follow as it is made available.

There was a slowdown in ATT operations due to Covid. Pre-validations and validation audits are now back up and running, albeit Covid-safe. Those businesses with applications pending should be contacted soon if they have not already.

A reminder was also issued for any approved participants to complete and return any annual declarations to ATT. 

Revalidations are on a four year cycle, so the earliest Trusted Traders will be undergoing revalidations soon.

A service provider specific team will be activated within ABF for ATT service providers. This will allow for the more in-depth requests and requirements of these members to be met in a timely fashion. Highly skilled officers will make up the team and it will allow a more consistent approach to assisting service providers.  Some approved participants may find a change to account manager over the next few months as the new team is stood up.

Australian Border Force Intervention was another topic:

Advice that from April they will again be actively targeting products that may contain asbestos, particularly from countries that do not have asbestos regulations that comply with Australian law.

Broker shopping will also be on the agenda as ABF has noted a spike in this practice. Importers that regularly change broker may attract extra scrutiny.

Cargo reporting compliance both for timeliness and accuracy.  If not timely and accurate, ABF risk assessment suffers and border clearance may be delayed as a result.

Secure Trade Lane Initiative – Australian and New Zealand commitment to improve movement of goods between countries. Paper based trial for low risk air cargo underway with further trials to follow.

Counter-proliferation – ABF presented their role in counter-proliferation and explained exactly what it means. It would seem that some exporters are unaware that the goods they export may have a dual-use and as such require permission to export from the Department of Defence and on occasion the Department of Foreign Affairs and Trade where exports to a country with active sanctions. Exporters are urged to work with their service providers to ensure compliance as exports of goods not covered by relevant permissions attract significant penalties.

If you require any further information relating to any of the above topics, or to discuss how they may affect your business, please contact Harders Advisory.

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