The Department of Agriculture has begun changing the way it ensures that importers of regulated timber products are complying with the Illegal Logging Act 2012 and the Illegal Logging Prohibition Regulation 2012.

Until now the process was that customs brokers required importers to complete a form indicating whether they had undertaken due diligence with regard to the sustainability credentials of their imported products.

Beginning with businesses that import large amounts of regulated timber, paper or wooden furniture products DAFF has implemented a system of audits to assess how businesses are complying with their regulatory obligations.  They are also assessing businesses that have volunteered for a compliance assessment as a health check of their due diligence practices.  Some businesses are being contacted directly with a Request for Information Notice and once complete DAFF will provide them with feedback on where the due diligence practices meet requirements and where improvements are required.

This will not just impact importers as there are also plans to assess some processors of Australian grown raw logs late in 2015.


Additional compliance requirements and audits will be in place As of May 2016. Penalties for non-compliance do not currently apply, but you may be liable from May 2016.  If your business does not meet your regulatory obligations by this time we expect that your ability to import timber products will be impacted and you may also be subject to financial penalties.

What you can do:

Contact Magellan and we can advise you if a Voluntary Assessment by DAFF is an option for you.  We can also give you feedback on how you are currently complying and where improvements can be made.

For more information:

Container ship at harbour  at night iStock_000012921264Large

The Department of Immigration and Border Patrol (formerly the Australian Customs and Border Protection Service) announced in its Blueprint for Reform 2013 – 2018 document its intent to introduce a Trusted Trader Program (TTP).

The TTP is currently being developed by Australian Customs in consultation with importers, exporters and representative bodies. It represents a shift in the approach of Australian Customs from monitoring and enforcement to self-regulation and trust.


Many countries have in place systems similar to the one being proposed in Australia. Sometimes known as Authorised Economic Operator programs, qualifying importers or exporters are treated more favourably than non-qualifying traders. Qualification is usually based on supply chain security and a high level of compliance with Customs laws.

The TTP will provide approved participants with trade facilitation benefits and reduced regulatory and administrative burdens. Those remaining outside of the program will be the main focus of Australian Customs’ compliance activities. In order to participate in the program a Trusted Trader (TT) would need to demonstrate a secure supply chain with a demonstrated history of compliance that meet international supply chain security and trade compliance standards.

Under the Australian Trusted Trader Program participants will receive trade facilitation benefits in exchange for demonstrating a high level of trade compliance and supply chain security.

The program will adopt a tiered model with the benefits linked to the tier of the participant. Initial qualification will be by completion of a self-assessment questionnaire. This will qualify a participant for an interim tier 1 status. Within 12 months Australian Customs will carry out a physical audit which may lead to tier 2 or tier 3 status. Accreditation at any status will require participants to enter into a Trusted Trader Agreement with Australian Customs which will set out the benefits and obligations of the participant.

The program is expected to officially commence in mid-late 2016.


• Less interference by Customs
• Faster clearance of goods
• A higher level of service from the Customs authority including a dedicated Client Service Manager
• The possibility of deferred duty payments
• Fewer examinations and priority consideration of applications for advance rulings, duty drawbacks and tariff advice reviews


• Undertake a review of historical activities to ensure compliance with existing requirements
• Rectify any non-compliance issues through clarification or voluntary disclosure
• Identify controls (or lack of) through the use of system based auditing techniques
• Implement secure and robust solutions that will give confidence to Australian Customs


A pilot of the program commenced in this month with 4 exporters:
• Boeing Aerostructures Australia
• Devondale Murray Goulburn
• Techwool Trading
• Mondelez Australia

The pilot is expected to expand to 40 importers, exporters and service providers by mid-2016. While the initial focus of the pilot is on export containerised cargo ex-Melbourne, the ensuing phases of the programme will be rolled out nationally and include airfreight and imports and expand to service providers such as customs brokers, freight forwarders, transport and depot operators, etc


Magellan Logistics is well placed to assist you with gaining TTP acceptance through the provision of expert advice and guidance. Should you wish to pursue this line of inquiry please contact Jeff Kershaw on 0418 543 994 or by email at Jeff@maglog.com.au

Damaged cargo2

Magellan’s number one priority is to ensure that your cargo arrives at its final destination in full, on time, and importantly, undamaged.  Although we select our airlines, shipping lines and sub-contractors carefully based on their ability to ensure this, the reality is that cargo will occasionally be damaged or pilfered in transit.

The following 4 important points will help you minimize any potential loss if something does go wrong.

  1. Prevention is always the best cure. Discussions with your manufacturer regarding suitable packaging ahead of shipping will be well worthwhile.  If your product or brand has appeal for the general public, we recommend that the outer packaging does not identify the contents.
  2. Immediately upon receipt of any consignment, check your cargo for signs of damage or loss, and note any discrepancies on the delivery paperwork. It is also important to notify your freight provider as soon as possible. This will provide the best chance of determining when and where the damage has occurred, and will also enable the claims process to begin. Your Magellan representative will report back to you throughout the investigation, and depending on their findings, will also guide you through the claims process.
  3. The legal side of freight forwarding is complicated; involving agency agreements, principals, liability limitations, terms & conditions and international conventions, etc…It is important to note that airlines, shipping lines and road transport operators operate under limited or nil legal liability. Because of this Magellan thoroughly recommends all importers & exporters arrange suitable marine insurance which will provide compensation in a relatively short timeframe for any damage or loss. Due to Australian insurance regulations, Magellan is unable provide advice directly relating to any insurance arrangement, but we can provide a referral to our preferred marine insurance provider, and facilitate either per shipment insurance or annual coverage. Detail can be found at on the Magellan website.
  4. Magellan can also provide advice on incoterms which will stipulate the point at which the risk and responsibility transfers from the seller to the buyer; an important point to consider when placing your order with the supplier or manufacturer. We can also provide information on the risks involved with international shipping and what can be done to mitigate those risks. Depending on when and from where your cargo departs, the risks can be greater than normal e.g. water damage due to local monsoon season, etc.

Contact Magellan today for further information on how we can protect your cargo based on your unique supply chain requirements on www.magellanlogistics.com.au or 1300 651 888.

Gujarat Pipavav Port Limited has advised that the restoration works of Pipavav Railway Corporation Limited (PRCL) rail line connecting Pipavav port has been completed.  Test runs carried out overnight on July 11 were successful and Indian Railways has declared the line open for business. The rail operators have also announced a resumption of normal services to and from Pipavav Port.

The railway tracks at Lilliya and Savarkundla (approximately 7 kms from port) were washed away due to incessant rain in June.

Flood waters damage rail line to Pipavav Port

Flood waters damage rail line to Pipavav Port (Image: Coordinate Home Buying Services)

Delays in shipping cased by the floods has been minimal with alternative ports being used, however due to a closure at Indian customs last weekend a large volume of custom entries and document releases all over India has caused delays in processing. The documents are taking 12 to 48 hours.

If you would like more information, please contact our office on 1300 651 888 (Aus) or (09) 974 4818 (NZ) or via email on info@maglog.com.au






In a recent letter to the freight forwarding industry the Department of Infrastructure and Regional Development has advised of the US Government’s decision to extend its recognition of Australia’s National Cargo Security Program until July 2017.

While this is still contingent on the agreement of a number of milestones, it offers Australian businesses some 2 years to prepare for the 100% piece level examination of US bound air cargo.

The attached letter outlines the timeline for the transition.

Department of Infrastructure & Regional Development advising AFIF of US Government's extension.

Department of Infrastructure & Regional Development advising AFIF of US Government’s extension.

If you would like more information, please contact our office on 1300 651 888 (Aus) or (09) 974 4818 (NZ) or via email on info@maglog.com.au



By Edi Lenkic

Edi Lenkic - a wealth of good advice for would-be importers

Edi Lenkic – a wealth of good advice for would-be importers.

In my experience, those who embark on the process of buying product from overseas can find it a bit of a challenge to select the right freight forwarder and customs broker for their business.  In many instances the intricacies of the logistics and supply chain process is not a core skill.

In general, as an importer you will – rightly – devote most of your attention to sourcing the right product, negotiating with overseas suppliers, obtaining product samples by international courier and/or visiting the overseas supplier abroad to meet with product managers, visit and inspect their site, quality control and obtaining an understanding of their manufacturing process.

When the overseas supplier assures you that they have their own forwarding agent with whom they regularly ship on a CFR (Cost of Goods and Freight) basis the challenge of the supply chain process and selecting a forwarding agent may seem to be alleviated.

So, job done – right?  Couldn’t be simpler to have the supplier handle the exporting too.  While this might seem like a big relief and a streamlining of a seemingly cumbersome process, there are often services and deals to be had by working with an Australian based freight forwarder and customs agent for two main reasons:

  1. The overseas supplier will book with their preferred agent, usually not to meet the needs of the importer, but to suit their own,
  2. CFR (Cost of Goods and Freight) is not the end of the story and often by the time the importers receive the invoice from the local receiving agent in Australia, a lot of unnecessary cost has been incurred which is often be due to the supplier’s handling of the negotiation. This is especially prevalent with LCL (Less than Container Load) cargo where, a whole system of rebates between the load port forwarding agent and the destination port forwarding agent are available.

Because of this I always recommend the following to importers:

  • Find your own freight forwarder and import on an FOB (Free on Board) basis to ensure control of costs, visibility and flexibility.
  • Understand and extrapolate what it is you really want and what your logistics needs are now and in the future. Ask the appropriate questions to qualify your freight forwarder candidate.
  • Select a forwarder who specialises in the market or industry you participate in. For instance, if you are importing clothing or footwear, find a forwarder that specialises in this.  There are a number of players in the marketplace that specialise in apparel logistics – large, medium and boutique.  It can be a good idea to match your business size relative to your industry to that of your forwarder.  For example, if you are a medium sized or boutique business you will have specific needs and may require a bespoke service to meet them.  Forwarders that serve a niche market tend to be more agile, flexible and adapt quickly to sudden changes to your freight requirements.
  • Pricing is important and it is imperative to not leave your money on the table, it is also important to find a forwarder that has good systems and processes and a good reputation amongst your peers. Your industry networks and social media can help you find a reputable company.
  • Ensure you understand what you will pay for your consignment and beware of extra or hidden costs.
  • Seek full transparency and integrity from your forwarder.
  • Choose a forwarder with an appropriate reporting or tracking system for visibility.
  • And finally, many forwarders in Australia have a wealth of knowledge about your origin country and markets and in many instances can provide you with the benefit of this to save you time, money and anxiety at all stages of the importing process.


If you would like a confidential discussion about your  importing and freight forwarding needs please call Edi Lenkic on 1300 651 888,  or if you’re in New Zealand call Paul Knight (09) 974 4818.  Alternatively visit www.magellanlogistics.com.au for more information.

A recent US Transport Security Administration (TSA) revaluation of the air cargo security arrangements Australia has in place for exports to the USA has found that they do not meet US requirementsThe TSA has advised that Australia will need to screen 100% of export cargo carried on passenger aircraft to the US at piece level, in order to meet US requirements.

Delays expected

Delays expected

At this stage there is only a very limited capacity in Australia to screen and inspect every piece of every shipment that is tendered to the airlines for uplift to the USA, prior to being loaded on board an aircraft.

Australian Government’s Office of Transport Security (OTS) is working to quickly implement a two part strategy in cooperation with industry to meet these requirements, including:

1)      Allowing approved industry participants to examine air cargo off airport and

2)      Establishing a Known Consignor scheme.

The implementation deadline to comply with the USA regulations is 31st July 2015 – we do not expect that full industry wide arrangements to comply with the US regulations will be in place by that date.

What’s next?

We await advice from the Government OTS on its expectations of the Australian aircargo industry to address the issue of the available resources for screening of aircargo to USA.

As a consequence of the rushed application of these regulations, we foresee significant issues including:

  • Delays and costs in the immediate & longer term
  • Airline & airfreight terminals will be required to invest in new screening equipment and resourcing
  • Significant cargo congestion will be experienced at most Australian airports, with corresponding delays in uplift of cargo
  • At peak times there will be Airline cargo terminal space issues
  • Earlier receival cut-off times will be implemented for freight acceptance at airline and airfreight terminals
  • We expect that a new level of fees will be introduced to cover the costs associated with the application of these USA regulations
  • Confusion & chaos….


The application of any interim and long term solution will have an impact on exporters moving their product to the USA via airfreight.

Magellan’s priority at this stage is to find the best “work around” solution to minimise the impact on our customer’s aircargo moving to the USA.

If you would like more information, please contact our office on 1300 651 888 (Aus) or (09) 974 4818 (NZ) or via email on info@maglog.com.au


The long awaited agreement is expected to open the vast Chinese market for Australian products and services.










The China–Australia Free Trade Agreement (ChAFTA) is a bilateral Free Trade Agreement (FTA) between the governments of Australia and China.  Since the announcement of a joint feasibility study in early 2005, 21 negotiating rounds have been completed and the announcement of the conclusion of negotiations was made by Australia’s Prime Minister Tony Abbott and Chinese President Xi Jinping on 17th November 2014.

The long-awaited agreement was signed by Trade Minister Andrew Robb and Chinese Commerce Minister Gao Hucheng last Wednesday in Canberra.  The agreement is expected to open the vast Chinese market for Australian investment, primary products and services.

The agreement will ensure 85 per cent of all Australian exports will enter China tariff-free, rising to 93 per cent within four years and 95 per cent when it is in full force.

China is Australia’s largest trading partner, with the two-way flow of goods and services exceeding $160 billion last year.

Now that both sides have completed the legal review and translation of the text of the Agreement the signature of the Agreement;

What happens next…

  • The text of the Agreement, accompanied by a National Interest Analysis, will then be tabled in the Australian Parliament for 20 joint sitting days;
  • Following tabling, the Joint Standing Committee on Treaties (JSCOT) will conduct an inquiry into the Agreement and will report back to Parliament;
  • Legislation will be introduced to make any necessary amendments to existing legislation and will be considered by the Parliament;
  • Relevant Regulations would also be amended in due course;
  • During this time, the Chinese Government will undertake its own domestic treaty-making processes;
  • When Australia and China have completed their domestic processes, both countries will exchange diplomatic notes to certify that they are ready for the Agreement to enter into force;
  • 30 days after this exchange or on a date otherwise agreed, ChAFTA will enter into force.

Because it is expected that the above processes will take some time, the agreement is not anticipated to take effect until sometime in early 2016.

If there is any further specific detail required please contact Jeff Kershaw on 0418 543 994 or by email on Jeff@maglog.com.au.



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Magellan Logistics New Zealand Limited has officially opened it’s doors in Auckland, with Paul Knight appointed as Magellan’s New Zealand Manager.

Paul has over 30 years experience in the logistics and transportation industries in both New Zealand and internationally.

Paul’s experience covers a wide range of business development and sales management roles, having been exposed to most industries, including working with clients in the textiles, footwear and clothing markets, across both imports and exports.

His wealth of experience has positioned Paul to appreciate that freight forwarders do more than just move freight – they provide a service which impacts a client’s profits which is affected by timeliness of both response and delivery. Excellence in service has been the single most important factor in successfully looking after his clients.

We are very pleased to have Paul join the Magellan team and the positive and pro-active approach that he brings with him.

Magellan has recognised the opportunity within the New Zealand market to both broaden the current services to our existing Australian clients who ship from both Australian and overseas direct to New Zealand, as well as offering the same high service standards to New Zealand based businesses. Magellan envisions replicating the great success and growth experienced in Australia, in this new and exciting marketplace.

“The role will be challenging as well as satisfying and rewarding for all involved and especially clients looking for extraordinary service levels, in the freight forwarding industry”, Paul shares.

Standing by his commitment to the Magellan values.

Paul Knight standing by his commitment to the Magellan values.

Our New Zealand office contact details:

Suite 5, Level 1, 75J Porana Road,
Wairau Valley, Auckland, NZ 0760

International Telephone:

+64 9 974 4818 or
+64 9 974 4817

International Facsimile:

+64 9 974 4819

Postal Address:

PO Box 316-024,
Wairau Valley Post Centre,
Wairau Valley, Auckland, NZ 0760


We extend a warm invitation for New Zealand specific enquiries. Please contact Paul directly at paul@maglog.co.nz  or in the office on +64 9 974 4818 or +64 9 974 4817, or via mobile on 021 497024.

Or alternatively, you can reach our customer service team in our Melbourne head office on info@maglog.com.au or 1300 651 888

We look forward to assisting our existing and future New Zealand based clients, and our Australian clients with their freight forwarding, customs clearance and 3PL needs into and out of New Zealand.

Protecting your intellectual property is essential in this day and age as it provides a company or individual with a competitive advantage over other players in the industry. Most companies do not regard their supply base as intellectual property but they do so at their peril. Exposing your supply base to your customers can have dramatic consequences – the worst of which is the danger of your customer going directly to your supplier.


Australian retailers are well placed to deal directly with offshore manufacturers and indeed most of them have some direct supply in their product offerings. If you are currently supplying the larger retail chains with product you source from overseas you will have noticed an increased pressure to provide that product on an FOB basis rather than the traditional free into store approach. One of the dangers of agreeing to provide product on an FOB basis is the potential exposure of your supplier information to your customer – who could then quite realistically become your competitor.

Normally, when shipping goods from, say, China to Australia a bill of lading is cut with the consignor and consignee details listed on the bill. In normal circumstances the consignor would be the offshore manufacturer and the consignee would be the name of the entity that is to take delivery of the product. In the above FOB scenario the consignor would be your supplier and the consignee would be your customer. So it is easy to see that in this case your supply base is exposed. However, Magellan Logistics can help you with protecting your supplier information by manipulating the documentation to provide you with comfort that your valuable IP is being hidden.

The export documentation will be produced as normal and used for clearing the goods through the offshore Customs authority. However, once export formalities have been completed Magellan Logistics will raise a separate house bill of lading to indicate that you are the consignor and your customer is the consignee. Further, the invoice accompanying the shipment will be the FOB invoice raised by you on your customer. This documentation will be used to clear the goods through Customs in Australia. In this way, your supplier information is hidden from your customer and should go some way towards providing you with peace of mind.

As this is an extremely commercially sensitive area of concern we suggest that a Standard Operating Procedure (SOP) should be developed to ensure that all stake holders are fully aware of their obligations at each step of the way.

If you would like to discuss this issue further please contact Jeff Kershaw on 0418 543 994 or at jeff@maglog.com.au