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.

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

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