Cambodia Sea Container Hygiene System

AM Logistics together with the Department of Agriculture, Fisheries and Forestry implement a Sea Container Hygiene System in Cambodia to boost trade and reduce biosecurity risk.

Representatives from AM Logistics (AML) and the Department of Agriculture, Fisheries and Forestry (DAFF) travelled from Australia to conduct a Sea Container Hygiene System (SCHS) scoping audit in Cambodia.

The November 2023 itinerary included an overview of AML’s operation in Cambodia, a tour of the Sihanoukville port and meetings with officials.

Leading the way in biosecurity.

The SCHS project has been led by AML Director for Global Trade, Lindsay Rowlson who began working in November 2020 on a system to clean shipping containers at Sihanoukville prior to loading onboard the vessel. 

In collaboration with DAFF Sea Container Controls, Assistant Director Gayle and Senior Policy Officer Joanne, the AML Cambodia SCHS was implemented in December 2022.

The recent scoping audit conducted by DAFF’s Sea Container Controls team forms part of the final approval process as an SCHS Recognised Provider. 

The Sea Container Hygiene System in simple terms.

The Sea Container Hygiene System (SCHS) is an offshore process where DAFF and industry work together to mitigate biosecurity risk for Australia by significantly reducing the amount of contamination arriving on sea containers.

Recognised SCHS providers attract compliance-based intervention measures which can result in reduced inspections on arrival.

Benefits of reduced intervention.

AM Logistics expect to achieve reduced intervention measures from April 2024, which would see a reduction in GAS HELD inspections from Cambodia as a recognised SCHS provider, with the following benefits to industry:

  • Reduced intervention related costs for Australian importers
  • Reduced intervention related delays for Australian importers
  • Reduced biosecurity risk for Australian agriculture
  • Reduced operational costs for government and industry
  • More trade investment between Cambodia and Australia

Cambodia, the CAL, and the Giant African Snail.

The Country Action List (CAL) policy has been established by The Department of Agriculture, Fisheries and Forestry (DAFF) to protect Australia’s biosecurity.

Cambodia is listed on the Country Action List primarily because of the high risk of hitchhikers such as Giant African Snail, but also because of the risk of contaminants such as soil, seeds, plant material and snail eggs on shipping containers.

All containers from Cambodia must be inspected externally once discharged off the vessel at Australian ports.  Unfortunately, this converts into additional costs and clearance delays at the Australian border.

The AM Logistics solution.

AM Logistics is a recognised SCHS provider in Cambodia. Operationally located within the Sihanoukville port precinct, AML’s SCHS includes a verification inspection at each container touch point with a detailed cleaning and treatment process.

Actively managing the system end-to-end, the process includes empty container collection, inland transport, depot and terminal transfers, international shipping, customs and quarantine clearance, delivery and dehire.

During this process, containers are externally inspected, cleaned and treated for biosecurity risks.

More.

To learn more about the AM Logistics Sea Container Hygiene System and how it can benefit your business, contact us here and type “AML SCHS” in the message field.

Our AML Global Trade Advisory team will contact you and go through the next steps.

BMSB Seasonal Measures 2023/2024

What is BMSB?

Brown Marmorated Stink Bug (BMSB)

  • Known as the Brown Marmorated Stink Bug (BMSB)
  • Exotic to Australia and origins from Asia, North America, Europe, Oceania and South America
  • Described as a shield shaped marbled bug up to 17 mm long that eats crops and ornamental plants

The Brown Marmorated Stink Bug (BMSB) is a Halyomorpha halys and belongs to the Pentatomidae family.  Native to China, Japan, Korea and other Asian countries, it is now a pest that can enter from Asia, North America, Europe, Oceania, South America and the list continues to grow.

BMSB is shield shaped, mottled brown with a smooth rounded shoulder.  It can grow up to 17 mm long and feeds on crops and ornamental plants.  The bug produces an unpleasant odour when crushed.

BMSB is exotic to Australia and must be kept out. 

Why is BMSB a concern?

BMSB poses a significant risk to Australia’s agriculture

  • Damages agricultural crops, fruits, nursery stock and ornamental plants
  • Feeds on over 300 plant species
  • A smelly nuisance in homes and buildings
  • Hitchhike on imported goods

BMSB is exotic to Australia and must be kept out.  They hitchhike on imported goods, including personal items, machinery, vehicles, ships, boats and aircraft.

The bugs damage agriculture crops, nursery stock and ornamental plants.  They feed on over 300 plant species, including sweet corn, tree nuts and fruits such as apricots, figs, apples, peaches and citrus.

The bugs pierce through the skin/surface of fruits and inject saliva, feeding on the juices of the fruit. This leaves dimpling on the externals, rotting and corking of the insides of the fruit. If impacted fruit is used for juice production, it could ruin the entire batch.

Who does BMSB affect?

There are seasonal measures that affect importers of targeted goods from targeted countries

  • New Zealand and Australian importers of;
  • Targeted goods from;
  • Target risk countries and;
  • Shipped via Seafreight between;
  • 01 September 2023 to 30 April 2024 (inclusive)

BMSB seasonal measures affect importers of targeted goods that are manufactured in or shipped from target risk countries, and have shipped via seafreight between 01 September and 30 April(inclusive).  BMSB measures also apply to vessels that berth, load or tranship from target risk countries within the same period.

What are the BMSB seasonal measures?

Seasonal measures include specific treatment methodologies which are subjective to different types of sea cargo

  • Target high risk goods require mandatory treatment
  • Target risk goods are subject to random inspection
  • Standard FCL & LCL can be treated offshore or onshore
  • Breakbulk must be treated offshore only
  • Heat, Methyl Bromide and Sulfuryl Fluoride treatment only
  • Specific packing requirements to be followed

Goods that are classed as target high risk require mandatory treatment.  Goods that are classed as target risk are subject to random inspection.  Goods that are not targeted are not subject to BMSB measures unless packed with targeted goods.

Target high risk goods must be treated by an ‘approved’ treatment provider.  Treatment certificates will not be accepted from treatment providers that are unregistered, suspended, withdrawn or under review.

Standard FCL and LCL consignments can be treated offshore or onshore, whereas Breakbulk must be treated offshore only.

  • LCL must be treated at the container level
  • Breakbulk (includes Open Top, Flat Rack and Modified Containers) will be directed for export if not treated offshore

Treatment options currently include Heat Treatment, Methyl Bromide Fumigation and Sulfuryl Fluoride Fumigation.

Treated consignments maybe subject to random verification inspections.

There are specific packing requirements that allow treatments to work effectively.  Consignments that are not packed to the required standard will be directed to a 4.7 depot for a complete unpack and fumigation, which may require to perforate packaging.

Who are the target risk countries?

There are many countries that have been identified as Target Risk and Emerging Risk

  • There is a list of Target Risk Countries that are subject to BMSB measures for targeted goods
  • There is a list of Emerging Risk Countries that may be selected for random onshore inspection
  • These lists are subject to change and continuous review

Target Risk Countries currently include Albania – Andorra – Armenia – Austria – Azerbaijan – Belgium – Bosnia and Herzegovina – Bulgaria – Canada – Croatia – Czechia – France – Japan (heightened vessel surveillance only) – Georgia – Germany – Greece – Hungary – Italy – Kazakhstan – Kosovo – Liechtenstein – Luxembourg – Montenegro – Moldova – Netherlands – Poland – Portugal – Republic of North Macedonia – Romania – Russia – Serbia – Slovakia – Slovenia – Spain – Switzerland – Turkey – Ukraine – United States of America – Uzbekistan.

Emerging Risk Countries currently include United Kingdom and China – Target High Risk goods do not require mandatory treatment, however subject to increased intervention through random inspection.

What are the targeted goods?

Goods that fall within the following tariff classifications have been categorised as Target High Risk Goods or Target Risk Goods

Target High Risk Goods include;

44 – Wood and articles of wood; wood charcoal

45 – Cork and articles of cork

57 – Carpets and other textile floor coverings

68 – Articles of stone, plaster, cement, asbestos, mica or similar materials

69 – Ceramic products

70 – Glass and glass ware

72 – Iron and steel

73 – Articles of iron or steel

74 – Copper and articles thereof

75 – Nickel and articles thereof

76 – Aluminium and articles thereof

78 – Lead and articles thereof

79 – Zinc and articles thereof

80 – Tin and articles thereof

81 – Other base metals; cermets; articles thereof

82 – Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal

Target Risk Goods include;

27 – Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes

28 – Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes

29 – Organic chemicals

38 – Miscellaneous chemical products

39 – Plastics and articles

40 – Rubber and articles thereof

48 – Paper and paperboard; articles of paper pulp, of paper or of paperboard

49 – Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans

56 – Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof

Heat Treatment

Heat treatment is one of the three approved options for BMSB treatment

Heat treatment by an ‘approved’ provider can be used for all good types and sizes.

  • 56°C or higher at the coldest surface of the goods, for a minimum of 30 minutes, or;
  • for individual goods weighing less than 3000 kg shipped as break bulk only, 60°C or higher at the coldest surface of the goods, for a minimum of 10 minutes

Note: Individual goods shipped as break bulk weighing less than 3000kg treated at 60°C for 10 minutes require evidence within shipping documentation that they are less than 3000kg for these treatments to be accepted.

Methyl Bromide Fumigation

Methyl Bromide Fumigation is one of the three approved options for BMSB treatment

Fumigation using Methyl Bromide by an ‘approved’ provider can be used.

  • A dose of 24 g/m³ or above, at 10°C or above, for a minimum of 12 hours (but less than 24 hours), and a minimum end point reading of 12 g/m³, or;
  • A dose of 24 g/m³ or above, at 10°C or above, for 24 hours or longer, and a minimum end point reading of 8 g/m³

Note:

  • All start time concentration readings must be above 24 g/m³.
  • Dose increases to compensate for temperatures less than 10°C is NOT permitted.
  • Topping up with additional fumigant at the end of treatment is NOT permitted.
  • If the concentration of fumigant falls below the minimum end point reading at any point during the treatment, the treatment has failed.

Sulfuryl Fluoride Fumigation

Sulfuryl Fluoride Fumigation is one of the three approved options for BMSB treatment

Fumigation using Sulfuryl Fluoride by an ‘approved’ provider can be used.

  • A dose of 24 g/m³ or above, at 10°C or above, for a minimum of 12 hours (but less than 24 hours), and a minimum end point reading of 12 g/m³, or;
  • A dose of 24 g/m³ or above, at 10°C or above, for 24 hours or longer, and a minimum end point reading of 8 g/m³

Note:

  • All start time concentration readings must be above 24 g/m³.
  • Dose increases to compensate for temperatures less than 10°C is NOT permitted.
  • Topping up with additional fumigant at the end of treatment is NOT permitted.
  • If the concentration of fumigant falls below the minimum end point reading at any point during the treatment, the treatment has failed.

Packing Requirements

There are specific packing requirements that allow treatments to work effectively

  • Containers must be packed to allow sufficient free air space for fumigation gasses or heat treatment
  • Plastic wrapping must be clearly perforated
  • Detailed packing requirements can be found on the fumigation methodology document

There must be free space throughout the container to allow the fumigant or heat treatment to freely circulate around the target of the fumigation and to permit the positioning of sampling tubes.

The free air space requirements for effective treatment of a consignment will vary depending on the commodity and the method of packing.  As a guide, there should be at least 350 mm of free airspace in total, including 200 mm free air space above the commodity, 50 mm below and the remaining 100 mm at the sides and between the commodities, with a maximum load factor of 80%.

Where commodities are stacked on the floor there must be sufficient free air space between individual items to allow the treatment to reach throughout the entire enclosure.

If there is insufficient space to allow the monitoring tubes to be positioned according to AFAS requirements, then it is also unlikely that there will be enough free air space in the fumigation enclosure to allow for an effective fumigation.

Plastic wrapping must be clearly perforated to allow for effective treatment.

Untreated timber products must have at least one physical dimension which is less than 200 mm thick.

Where timber is the target of the fumigation it must be separated by a minimum of 5 mm of airspace every 200 mm (Basically holes or slashing every 20 cm. This separation can be horizontal or vertical).

How to get more information

If you would like to organise a time to speak with us and discuss these measures in more detail or prepare a BMSB Seasonal Plan, please contact AM Logistics.

Supply Chain Assessment Tool

The AML Overview is a powerful supply chain assessment tool that has been carefully designed to grade risk, identify gaps and create opportunities across your international business operations.

Managing economic supply lines can present as a challenge to all businesses, from start-ups to multinational corporates.

Business growth can create gaps and blind spots in the supply chain, while business consolidation can lead to waste and lost efficiencies.

Risk profiles shift quickly in volatile conditions, opportunities can be missed in emerging markets and changes in global trade practices, compliance and laws can be missed.

The AML Overview is a tool used by our Global Trade Advisory team to quickly assess supply chain health, grade risk areas, identify how to close gaps and provide practical steps to implement.

Why it is important to review and update your supply chain strategy regularly

Changes to your business or the environment your business operates in can result in obsolete systems that no longer add value and disconnect important links in your supply chain.  A regular assessment of your supply chain can help business to:  

  1. Clarify insurance coverage, risk of carriage and cost of risk
  2. Understand areas of financial exposure and opportunities to improve cashflow
  3. Discover changes in global trade practices, compliance and laws
  4. Decipher ways for creating efficiency in procurement functions
  5. Achieve cost reduction in fulfilment operations
  6. Identify how to globalise and mitigate supply risks
  7. Create alignment with service providers

Expected Outcomes

  • Immediate Results. We help you to obtain a high-level overview of your supply chain health straight away.
  • Transparent Solutions. We help you to identify specific risk areas in order of priority and how to close gaps.
  • Practical Steps. We provide you with simple and practical steps to implement.

Key Assessment Areas

  • Insurance and Risk. Insurance, cost of risk and INCO Terms.
  • Finance. Payment terms and trade finance.
  • Trade and Compliance. Due Diligence, Chain of Responsibility, Illegal Logging, Modern Slavery, Sanctions, Trade Controls.
  • Procurement. Sourcing, ordering, purchasing and quality assurance.
  • Fulfilment. Delivery and distribution.
  • Supplier Management. Globalisation, supplier and product management.
  • Shipping and Logistics. Shipping, logistics, customs brokerage and tariffs.

Preparation

Minimal preparation is needed because the AML Overview starts with an initial assessment deigned to discover your objectives, challenges and blind spots.  A deeper review will be recommended for areas where gaps are identified.

How it works

The AML Overview is conducted in three phases.  First, an initial 45-minute consultation which includes a data-point assessment and discussion about the results.  Second, we conduct a deeper analysis of the assessment and provide you with a detailed report.  Third, we provide strategic recommendations and advice.

Creating more value

Some of our recommendations may include a deeper review, audit or steps to be taken.  In many cases you will be able to do this within your own business, however we may also offer additional services that create value.

How to get started

To get started, contact us here and type “AML Overview” in the message field.

Our AML Global Trade Advisory team will contact you and go through the next steps.

Australia-United Kingdom Free Trade Agreement

Australia and The United Kingdom have developed a Free Trade Agreement (A-UKFTA) that will enter into force on 31 May 2023.

The Free Trade Agreement between Australia and the United Kingdom of Great Britain and Northern Ireland (A-UKFTA) was signed virtually on 17 December 2021 by the Hon Dan Tehan MP, former Minister for Trade, Tourism and Investment and the Rt Hon Anne-Marie Trevelyan MP, Secretary of State for International Trade.

The implementing legislation received the Royal Assent on 23 November 2022 and will enter into force on 31 May 2023.

Benefits for Australian Industry

The A-UKFTA has been designed to create new opportunities for Australian industry and help strengthen trade diversification in key areas, including:

  • Services (mutual recognition of professional qualifications)
  • Digital Trade (reduce digital trade barriers)
  • Goods (elimination of tariffs)
  • Investment (create opportunities and innovation)
  • High-quality rules and standards (create a predictable business environment)
  • Ease of doing business (removal of trade-restrictive measures)

Further information on A-UKFTA benefits for Australian industry is available here

Declaration of Origin

There are requirements under the Rules of Origin and Origin Procedures to qualify for the A-UKFTA.

A Declaration of Origin (DOO) can be issued by the Exporter, Producer or Authorised Representative of the Exporter or Producer, and must contain the data elements listed in Annex 4A (Data Requirements).

A comprehensive list of the A-UKFTA Rules of Origin is available here

To receive a template DOO, please contact us here

Claiming a Duty Refund

The A-UKFTA will apply to import shipments with a valid A-UKFTA Declaration of Origin and where the customs entry is lodged after 31 May 2023.

Claiming a duty refund under the A-UKFTA is possible in instances where an importer has paid customs duty because a valid declaration of origin was not available at the time of entry. The importer would need a valid Declaration of Origin to claim a refund under section 23 of the Customs (International Obligations) Regulation 2015.

Further information on claiming a refund under the A-UKFTA is available here

Note – a customs entry lodged before 31 May 2023 cannot be amended to apply for a duty refund, even if a valid A-UKFTA Declaration of Origin is presented.

For more information, please contact us here

Ocean Freight Spend Forecasting Tool

The AML Forecaster has been carefully designed to provide importers and exporters with financial projections and customised strategies for their seasonal ocean freight trends.

It can be difficult to decide on the right ocean freight strategy in volatile markets, with so many options and tactics to consider.

Named Accounts and Annualised Contracts can afford volume importers and exporters with a greater level of consistency in pricing, transits and routes, but timing and conditions can be difficult to navigate.

Freight of All Kinds (FAK), Market and Spot rates offer flexibility and room to pivot in fluid conditions with more scope to capitalise on under-utilised voyages, but can expose importers and exporters to higher freight rates in peak periods.

Basket and Quarterly arrangements can act as a more balanced approach, but with more “pros and cons”.

Delivering accurate projections in a time of uncertainty

The AML Forecaster is a supply chain assessment tool designed to provide volume importers and exporters with an ocean freight spend projection across multiple scenarios so they can make informed decisions and adopt the right ocean freight strategy for their business.

How it works

First, we need to understand your seasonal trends in order to plot a monthly or weekly volume forecast. We recognise that ordering and shipping cycles can be difficult to predict especially in volatile markets, however our sophisticated analytics will allow us to use your previous year volume statistics.

Then with our AML modelling tools, we use your seasonal volumes to project an overall freight spend in each scenario.

This allows us to analyse named account, basket and market rate options for your business and provide strategic ocean freight recommendations supported by a summary of the powerful modelling used.

Expected outcomes

  • Compare the latest NAC, BA and FAK options
  • Obtain annual ocean freight spend projections
  • Determine most optimal ocean freight product for your business
  • Measure contractual, basket and market scenarios against your seasonal trends

How to get started

To get started, contact us here and type “AML Forecaster” in the message field.

An AML specialist will contact you and go through the next steps.

Australia-India Economic Cooperation and Trade Agreement

Australia and India have developed an Economic Cooperation and Trade Agreement (ECTA) that will enter into force on 29 December 2022.

The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) was signed virtually on 02 April 2022 by the Hon Dan Tehan MP, Minister for Trade, Tourism and Investment and Piyush Goyal, Minister of Commerce and Industry.

The implementing legislation received the Royal Assent on 23 November 2022 and will enter into force on 29 December 2022.

Further information from Australian Border Force on the AI-ECTA is available here

Benefits for Australian Exporters

The AI-ECTA has been designed to create new opportunities for Australian goods and service exporters.  Australian services suppliers across a range of sectors will receive preferential treatment, specifically in:

  • Higher education and adult education
  • Business services (tax, medical and dental, architectural and urban planning
  • Research and development
  • Communication, construction and engineering
  • Insurance and banking
  • Hospital, audiovisual and tourism and travel.

Australian exporters of certain goods will receive preferential tariffs:

  • Sheep Meat – elimination of tariffs on entry into force (EIF).
  • Wool – elimination of tariffs on EIF.
  • Seafood – elimination of tariffs on entry into force for fresh rock lobster and elimination of tariffs over 7 years for other fresh, frozen and processed seafood products.
  • Infant formula – elimination of tariffs over 7 years.
  • Barley, oats and lentils – locked-in duty-free entry for barley and oats and immediate 50% reduction for in- quota exports of lentils.
  • Nuts – elimination of tariffs over 7 years on cashews, macadamias, shelled pistachios and hazelnuts. For almonds, immediate 50% tariff reduction on in-quota exports.
  • Fruit and vegetables – elimination of tariffs over 7 years for avocados, onions, cherries and berries. Reduction of tariffs over 7 years for apricots and strawberries. For oranges, mandarins and pears, immediate 50% tariff reduction for in-quota exports.
  • Wine – tariff reductions over 10 years for bottles over import prices of US$5 and US$15 and guaranteed best market access by India in any future FTA.
  • Resources – elimination of tariffs on entry into force for coal, alumina, metallic ores such as copper, manganese and zirconium, titanium dioxide and certain non-ferrous metals. Tariffs on LNG will also be bound at 0 per cent on EIF.

Further information on AI-ECTA benefits for Australian goods exporters is available here

Australian manufacturers of certain goods will receive enhanced trade facilitation:

  • Pharmaceutical products – Elimination of 10% tariff
  • Cosmetics – Immediate elimination of 20% tariff
  • Vitamins – Elimination of 7.5% tariff
  • Wood and paper products – Elimination of tariffs of up to 20%
  • Liquid Pumps – Elimination of tariffs of up to 10% on a range of pumps
  • Furniture and bedding – Elimination of 25% tariff on furniture and bedding, including immediate removal of the tariff on spring mattresses
  • Water filters – Elimination of tariffs of up to 10%
  • Lifting machinery for mines – Elimination of tariffs of up to 7.5%
  • Excavating and boring parts – Elimination of tariffs on most parts for excavating and boring machines
  • Railway equipment parts – Immediate elimination of 10% tariff
  • Processed foods – Elimination of tariffs up to 50% for a wide range of food products including infant formula, certain chocolates, breakfast cereals, pasta, olive oil, protein concentrates, prepared nuts, coffees and teas
  • Processed fibres – Elimination of tariffs of up to 10% on processed wool and cotton fibres
  • Processed minerals – Elimination of tariffs of up to 10% on a wide range of processed minerals including alumina, titanium dioxide and critical minerals

Further information on AI-ECTA benefits for Australian manufacturers is available here

Benefits for Australian Importers

Australian importers of certain goods will receive preferential tariffs under the AI-ECTA product specific rules of origin, and in many instances would be duty free.

A comprehensive tariff list under the AI-ECTA product specific rules of origin is available here

Certificate of Origin

There are requirements under the rules of origin to qualify for the Australia-India ECTA.

An AI-ECTA certificate of origin must be issued by an official issuing body or authority of the exporting party. A written application for this document must be submitted by an exporter, producer or their representative and needs to meet the requirements of Article 4.15 of the agreement.

A certificate of origin must contain the data elements listed in Annex 4A (Minimum Information Requirements). The field Export Document Number in Box 12 of the certificate of origin only needs to be completed on a certificate of origin issued retrospectively.

A comprehensive list of the AI-ECTA Rules of Origin is available here

A comprehensive list of official issuing bodies is available here

Claiming a Duty Refund

The Australia-India ECTA will apply to import shipments with a valid AI-ECTA Certificate of Origin and where the customs entry is lodged after 29 December 2022.

Claiming a duty refund under the ECTA is possible in instances where an importer has paid customs duty because a valid certificate of origin was not available at the time of entry. The importer would need a valid AI-ECTA Certificate of Origin to claim a refund under section 23 of the Customs (International Obligations) Regulation 2015.

Further information on claiming a refund under the ECTA is available here

Note – a customs entry lodged before 29 December 2022 cannot be amended to apply for a duty refund, even if a valid AI-ECTA Certificate of Origin is presented.

For more information, please contact us here