The result is a reduction in the general rate of customs duty applicable to a range of garments, homewares and other madeup textile articles, to 5% from January 1, 2015.
For local fashion importers, the news presents a tangible, practical way to reduce expenses and increase profits – a shot in the arm for the fashion retail industry.
A little forward planning can be a profitable thing.
If your garment shipment arrives towards the end of December, 2014, you’ll slide in ahead of the potential savings. But ask our experienced team at Magellan Logistics to help and you can arrange to have your fashion freight shipment held for a few extra days so your business can benefit from the duty reduction on (and after) January 1, 2015. You will need, of course, to factor in demurrage and storage fees…BUT, with our Magellan Logistics’ staff on hand to help you crunch the numbers, together we’ll find the most cost-effective way to handle your garment imports.
It’s important to understand that, in your quest to reduce duty costs, you will not be alone. To ensure your business stays ahead of your competition, it will pay to plan for the potential backlog caused by other fashion importers who want to take advantage of post-January 1 deliveries.
Talk to Magellan Logistics today.
We’re here to help you find the garment freight solution that will help your business ship cost effectively.
Call 1300 351 888 or email email@example.com to further discuss the upcoming duty rate reduction.
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Magellan Logistics are thrilled to be included in the latest Ragtrader magazine August edition, alongside influential fashion powerhouses. We have been serving our fashion, textiles, retail and footwear clients for the past 17 years, and it’s feels great to share our brand with the rest of the fashion world.
Professionals in the fashion industry and business of exporting & importing garments have a lot to thank Albert J. Parkhouse for, since the employee for the Timberlake Wire And Novelty Co, invented wire coat-hangers back in 1903.
Parkhouse’s invention was originally created to make more space to hang bulky coats. As Magellan Logistics are specialists in fashion,
they ensure that the humble clothes-hanger delivers a new level of convenience.
Making shipping garments for international transportation, even easier and more cost-effective with its GOH service.
If you’re in the business of shipping fabric sensitive fashion garments – such as suits, ladies blouses, leather jackets, evening wear and similar – the option of garment transportation using GOH enables you to receive wrinkle-free clothing with either no or minimal re-work required after your goods arrive, allowing you to reduce costs and lead time.
To protect your garments, lining of containers is also undertaken. You can see the preparation of a container here, which adds peace of mind to your garment delivery and reduces packing and unpacking requirements significantly. Magellan has strategic partner connections across China and Asia, with extensive GOH experience, so your garment freight is in safe hands.
Not all clients have sufficient volume to fill their own container, so to meet their unique needs, we offer Less Container Load (LCL) GOH shipping. Furthermore, for urgent consignments that cannot be sent by sea, we also offer air freight GOH, utilising airline units fitted out with bars.
We’ve come a long way from the humble origins of that very first coat-hanger and when it comes to fashion freight, rest assured that Magellan is at the forefront.
If you are interested to explore GOH services further for your company, get in touch on
1300 651 888 or firstname.lastname@example.org and a Magellan representative will further explain how GOH could benefit your business.
Immigration Minister, Scott Morrison, announced to the Lowy Institute on Friday 9th May, the formation of the Australian Border Force (ABF). Effective 1st July 2015, a new agency will be established under the Department of Immigration and Border Protection, to take over the work of Australian Customs and Border Protection Service, which will enforce all customs and immigration laws.
Key points from the announcement are outlined here:
When importing your goods into Australia, you must include commerce markings (import labeling) on your goods, or risk substantial penalties and/or your goods seized and forfeited to the Crown for incorrectly labelled products. In Australia, the Commerce (Imports) Regulations 1940 and the Commerce (Trade Descriptions) Act 1905, outline all the requirements for imported goods. The Australian Customs and Border Protection Service (ACBPS) oversee this legislation. Together with these regulations, Standards Australia also set out labelling requirements which must be adhered to including AS/NZS 2392:1999 Textiles – Labelling of clothing, household textiles and furnishings.
What are commerce markings?
Commerce markings are any descriptions, indications, statements or suggestions, direct or indirect with regard to the nature, quantity, quality, purity, grade, gauge, measure, size, and weight, country of origin, the manufacturer or ingredients of goods, among other specifications, which are applied directly on the items or on their packaging. More detail available here.
The above acts prohibit imports that have false commerce descriptions or those likely to mislead. Commerce markings are meant to give a factual description of the goods in question, to inform the customer about the nature of products.
All trade descriptions must
Commerce markings for clothing
All textile products and articles of apparel are required to bear true descriptions and their country of origin. Trousers, shorts and skirts should bear their description in their waistband, whilst shirt labels should be affixed in the collar and facing outwards. These labels should be obvious and not masked by other labels. An example of a correct description is ‘100% cotton’ on a shirt, providing this description is correct. If affixture to the goods is impracticable, the description must be added to the coverings containing the goods. Whilst customs may permit re-labelling of contravening goods where it is considered that the breach was neither intentional nor reckless, you may be asked to provide evidence that you have instructed your suppliers to correctly label goods in future.Click here for more information on labeling requirements for clothing.
To get more information on commerce markings specific for your products, contact our customs brokerage team on 1300 651 888.
On 7th March 2014, Magellan Logistics attended the Melbourne Port System Industry Induction (MPSII) Workshop and Tour offered by the Port of Melbourne Corporation.
The program provides an introduction and overview of the Melbourne Port System, giving the participants solid understanding of how the port operates. The program also gives information on how service providers work together and integrate with each other, resulting in more efficient freight movements.Participants received valuable information during the workshop and were given a tour in the port’s different facilities. During the event, our team learned these interesting facts:
The workshop enables those in the supply chain business to learn about current trends within the shipping industry, particularly in Melbourne.
Following the visit, a team member shared, “There was a panel of experts speaking, with time for Q&A, followed by a tour of the port. Listening to this panel gave some valuable insight on the challenges faced in the shipping environment, and the importance of partnerships between the major stakeholders including the importer/exporter, shipping lines, port operators, the Port of Melbourne Corporation, Australian Customs, customs brokers and freight forwarders.”
“It was great,” added Ashley Schmidt, Customs Broker at Magellan logistics. “I can see it would be really great for trainees to attend in future too.”
AN EASY REFERENCE GUIDE ON SHIPPING YOUR FASHION GOODS
When buying or selling garments or other goods across international boundaries, there are certain stringent terms of delivery that need to be adhered to for a successful importation. INCOTERMS are international trade terms which define all rules of engagement with regard to goods delivery to the intended destination or from the seller to the buyer.
INCOTERMS are the widely used standards that guide international trade. When it comes to international shipping, FOB and CIF are the most commonly used agreements which determine the responsibility of both the buyer and the seller. At the same time, it defines the point where this responsibility passes to either party.
Difference between FOB and CIF
First, it’s imperative to understand the difference between FOB and CIF. As mentioned above, both are INCOTERM agreements.
FOB stands for “Free On Board”. Under an FOB agreement, the seller shoulders all transportation costs up to the port of shipment. This includes all loading costs. On the other hand, the buyer is responsible for all marine freight, insurance, unloading costs right from the port of loading. Moreover, the buyer will meet all transportation costs from the destination port to his or her factory. It is important to note that all risk is transferred to the buyer when the goods are loaded on board at the port of shipment.
Under a CIF (Cost, Insurance, and Freight) agreement, the seller should provide minimum insurance for the goods in transit, pay for freight costs and is responsible for all costs of goods in transit up to the buyer’s preferred destination point.
Why should you consider FOB for your garment and textile import?
Having explained the two agreement terms above, considering FOB to import your garments and textiles will give you an upper hand in minimizing overall import costs and increasing your convenience. More often than not, first time importers and people importing small quantities use CIF where convenience is guaranteed. You don’t have to deal with unfamiliar shipping and freight details. Notwithstanding the convenience factor, you may end up paying a fortune to import your textile, garments and other goods under this agreement. This is because the seller will collaborate with his forwarder and is likely to mark up the costs charged by his forwarder to make a profit. As a buyer, you will have no control over the invoice.
With FOB, you have total control over your freight costs. You have the benefit of hiring your own forwarder at an agreed freight rate, among other charges. You will also be able to get exact and timely information from your forwarder, hence solving any service issues or hassles during transit. You will also enjoy transparency on shipping movements, as you have a local contact to provide shipping information, quoted costs for both freight and locals. On the other hand, if you ship CIF, you may not know who the local handling agent is and what their charges will be, which may bring with it inconvenience and additional costs in handling your shipment.
Ultimately, if you decide to ship with an FOB agreement, you will be in control of your shipment. You will be in a position to choose a method of shipment, your own agents, organise for a convenient insurance policy and set your own transit time. With CIF, all the above-mentioned variables are controlled by the seller, which may disadvantage you.
For a quick reference guide of INCOTERMS, please refer to the Australian Customs and Border Protection Service Fact Sheet.
(Note this fact sheet is a general guide only)
To request more information on shipping your goods FOB and how we can assist you, contact a Magellan representative on 1300 651 888 or email us at email@example.com with your enquiry.
Magellan Logistics is a very proud sponsor of Fairhaven Surf Life Saving Club Nippers program, supporting the logistics and transport of gear packs for new and existing nippers with packs including a Cap; Broad brim sunhat; Blue sun protection rash vest; Towel, Drink Bottle and Gear Bag.
The Fairhaven SLSC Nippers has a proud history of teaching children how to have fun & keep safe on the beach since the summer of 1972/73.
The program is designed for children aged 5-14 & aims to teach them to be aware of important beach hazards (such as rips), as well as helping them to develop surf swimming & boarding skills.
It also provides a terrific opportunity for physical activity, social interaction with peers & to improve awareness regarding environmental issues affecting our beaches & waterways.
As Nippers move through the program they also acquire basic first aid & resuscitation skills.
Fairhaven is a beautiful surf beach located on the Great Ocean Road between Anglesea and Lorne. This magnificent stretch of sand and surf takes in Aireys Inlet, Fairhaven, Moggs Creek and Eastern View and is where founder and managing director of Magellan Logistics, David Thatcher, enjoys the New Year holidays with his family on the Victorian coastline.
For more information on the nippers program and Fairhaven SLSC http://www.fairhavenslsc.org/nippers/
Please note our office operating hours over the Christmas and New Year period
Tuesday 24th December 2013 Closing at 2pm
Thursday 26th December 2013 Closed Boxing Day holiday
Friday to Monday 27th – 30th Dec 2013 Normal Business hours 8.30am – 5pm
Tuesday 31st December 2013 Closed at 2pm
Wednesday 1st January 2014 Closed New Years Day holiday
Thursday 2nd January 2014 Resume of normal business hours
The Budget papers released in May, 2013 stated that the Government will restructure the Import Processing Charge (IPC) to recover the costs of import related cargo and trade functions undertaken by the Australian Customs and Border Protection Service (ACBP).
This Import Processing Charges Amendment Bill has now been passed through both Houses of Parliament without amendment.
On Magellan invoices IPC this shows up as “Declaration Processing Charge”. On a Customs Declaration/Entry, IPC forms part of the customs “other charges”, seen at the bottom of every electronic entry – Please note that the AQIS container and processing charges which also make up part of the other charges, will not change at this stage.
The Bill will increase the import declaration and warehouse declaration processing charges levied on air, sea and post consignments with a value of $10,000 and above effective from 1 January 2014.
For jobs valued over $10,000, please see the guide below for increase values.
FCL Other charges – Currently $88 will increase to $190.60
LCL Other Charges– Currently $70 will increase to $172.60
Airfreight Other Charges– Currently $55.20 will increase to $137.10
For consignments valued from $1,000 to $10,000 the customs “other charges” will remain at the current level of $88.70 for sea import declarations and $55.20 for air import declarations.
Clients should note these increases will become effective on 1 January 2014.
If you have any queries please feel free to contact Daniel Crawford – Daniel@maglog.com.au