Increasing the ratio of Customs Inspections for Export Cargo in China.
The export cargo inspections ratio from Customs in China, and in particular at Xiamen and Huangpu have been increasing during this year for export shipments to all international ports. When cargo is held for pre-export inspection, this affects the export clearance process, to the extent that shipments may not meet the intended booked vessel. We have noted that pre-export inspections by Chinese Customs can take up to 3 days. It is a random process that is done within the complete control and direction of Chinese Customs.
We recommend a further allowance when delivering export cargo to the receival depots and wharf terminals of 3-4 days before the closing date for FCL & LCL shipments.
Single Buyer Consolidations from various suppliers in different provinces
In the case of buyer consolidations (BCN) that may involve various suppliers from different Chinese provinces, we need to allow longer transits for the domestic transfer to the receival depot. We recommend instructions are given to your suppliers to allow at least 4 days prior to vessel close-off to cover any delays, to ensure adequate time to stuff the container and lodge it at the wharf terminals for export.
For more information please contact your account manager or the customs team on 1300 651 888.
M.V. Xin Chi Wan v.140s was involved in a collision with MV Bani Bhum at the Ma Wan anchorage off Hong Kong on 3rd Nov., whilst both vessels sustained damages, there was not any reported damages to the containers. The operators of the vessel have now advised the following contingency plans:-
The MV Xin Chi Wan will be taken to a local shipyard for assessments and repairs to damages on the hull.
Should you need further information, please do not hesitate to contact our Customer Service team on 1300 651 888.
In essence, legislation was passed for a reduction to 5% in the general rate of Customs duty applicable to a range of products, which in particular includes garments, some home-wares and other made up textile articles that are imported into Australia from 1st January 2015.
If any goods that you import currently attracts a 10% rate of duty, that rate may now be reduced to 5%. Should you need clarification if your imported goods are subject to the duty reduction, please contact one of Magellan Logistics’ Customs Brokers on 1300 651 888.
If you have shipments planned to arrive towards the end of December 2014, and they are cleared before the 1st January 2015, then the current duty rate of 10% will apply.
Rather than delaying shipments until arrival after 1st January to gain benefit from the lower duty rates, we can assist by arranging to have your shipments held for a few extra days either in storage or “under bond” (moved to a Customs approved warehouse/depot). The duty rate reduction will be applicable to any Customs declarations made on or after 1st January 2015, rather than on the date the shipment actually arrives in Australia.
Before making this commitment, we can assist in a costing exercise in weighing up the added storage, demurrage & handling costs compared to the duty savings.
As this period will also impact over the traditional holiday close-downs for much of industry, storage is usually always at a premium across Australian ports. So if you intend to hold any of your shipments in storage for a short period to take advantage of the duty reductions, we suggest you let us know your plans as soon as possible, so we can make appropriate planning decisions in your best interests.
Please call 1300 351 888, email email@example.com, or contact one of our Customs Brokers or your Account Manager directly to further discuss the plans for this upcoming duty rate reduction.
When it comes to global trade opportunities for Australian exporters, free trade agreements (FTAs) play an important role. For any locally based business wishing to expand their international reach, they are a way of linking otherwise unconnected economies and establishing new markets for reciprocal exchange of goods and services, as well as investments.
Those in the business of international shipping from here in Australia have previously enjoyed seven different FTAs with countries across the globe, including New Zealand, Singapore, Thailand, US, Chile, the Association of South East Asian Nations (ASEAN) (with New Zealand) and Malaysia.
In addition to allowing trades of goods and services, FTAs also typically encompass a range of other trading potential, such as the exchange of intellectual property rights, government procurement and also competition policy.
All exporters in any industry that freights goods internationally can benefit from FTAs. The fashion, textiles & footwear freight industry for example, under these established FTAs, make up around 26% of Australia’s total trade – a substantial figure and one that is now set to grow further. The addition of FTAs for Japan and Korea will be of interest to Australian garment manufacturers and local fashion exporters.
In April 2014, those in the Australian export business were pleased that Australia signed an FTA with Korea.
In other positive news for the local retail industry, in July 2014, Australia also signed an Economic Partnership Agreement (EPA) with Japan. An EPA is an economic arrangement – often described as a premium variation of a general free trade agreement – that opens up free movement of goods, services and investment between countries. It’s good news for anyone in the business of fashion freight shipments, whether as an importer, or exporter of garments and other goods – but also a positive step for any local retailer or manufacturer keen to tap into a wider international audience.
Then, there are economic partnerships, which are sometimes described as high standard variants of free trade agreements.
Using the fashion industry again for a quick snapshot, at the moment, Korea accounts for around 5% of Australia’s total trade, with Japan accounting for around 11%. With the increasing number of FTAs currently in negotiation to help Australian exporters access new markets and expand trade in existing markets, this is expected to increase.
If you’re an existing Magellan Logistics client, currently enjoying the export and import opportunities for your business, we’d encourage you to actively review your current marketing plans and shipment strategies to analyse whether these latest FTAs will be of benefit for your business.
To find out how your business can benefit from these new Free Trade Agreements, speak to our trusted freight specialist team here at Magellan Logistics, for more information on 1300 651 888.
FTD Magazine is a New Zealand based trade supply chain management publication, which focuses on quality articles and case studies with a skew towards New Zealand based products, services and individuals.
Magellan’s operations manager, Chris Barbour, hails from Christchurch and after working in the logistics field and studying for a number of years, he joined our team in early 2014.
This article that appeared in the October FTD Magazine edition, takes you through his journey so far.
We warmly congratulate Chris on his achievement in being featured, appreciate his hard work and having him as part of the Magellan team.
The Department of Agriculture (otherwise known as Quarantine) announced that from 15th October 2014 they will no longer be accepting documents for processing over the counter. This applies to all offices Australia-wide.
Customs brokers including Magellan Logistics, will now be required to email all commercial documents subject to quarantine. Previously customs brokers could send a courier to the quarantine office and get documents processed on the spot, which resulted in fast turnaround.
With the new process and requirement now in place to email documents beforehand, the response time will be approximately 24 hours.
Importers should take this additional time into account when preparing their documents to be sent to their customs broker, to ensure that goods can be cleared through Customs and Quarantine in a timely manner.
This will assist in avoiding delays and additional charges once the goods are available.
If you have any questions regarding this matter, please contact our Customs team on 1300 651 888.
Diwali, the happiest and grandest celebration in India, signifies the start of the Hindu New Year. It celebrates the victory of good over evil, brightness over darkness.
Literally the festival of lights, Diwali is celebrated by illuminating the whole country with small clay lamps (diyas) and candles, with fireworks being set off everywhere.
Diwali is derived from the Sanskrit words dipa (“light” or “lamp”) and avali (“series, line, row”). Dipavali or Deepavalli thus means a series of lights. A variation of spelling and pronunciation depends on the diverse languages of India, where the popular variation is Diwali.
Diwali is a five day festival that usually falls in October or November, depending on the cycle of the moon. This year Diwali begins on October 21st 2014.
The main festivities take place on the third day and the fourth day is celebrated as New Year’s Day. The fifth and last day is celebrated by family getting together, sharing food, and honouring the bond between them.
Diwali is an important celebration for Hindus and is celebrated all over India, with exception to the state of Kerala where the festival is not widely celebrated. According to IMRB, market research firm in India, 91% of Indians celebrate Diwali, making it the biggest celebration in the country.
The grand celebration creates an opportunity for retailers and consumer goods producers to increase sales domestically. Factories and manufacturers typically double their output in the weeks and months prior to Diwali, as both local and export spending increases prior to the festival.
Within India, logistics service providers usually see an increase in volumes prior to the Diwali season, with a surge in movement of apparel, consumer goods and automobiles.
The textile and clothing industry for instance, where India is a significant player, boost output in the weeks leading up to Diwali, as export demands increase dramatically. To allow for this surge in demand and possible backlog, importers of Indian manufactured goods are encouraged to plan ahead to minimise possible delays.
Talk to Magellan Logistics today to plan your Indian imported goods shipments in advance.
Call 1300 351 888, email firstname.lastname@example.org or speak with your account manager directly.
Throughout August 2014, three of our talented team members, Ashley Schmidt and Chris Bray representing the Victorian team and Beau Ruane representing the Fusion team, attended the Darrell Holt Tenpin Bowling Carnival, held in Hobart, Tasmania.
Since 2007, Holt Challenge incorporated (known as Holt), has conducted a highly successful event known as the Darrell Holt Tenpin Bowling Carnival, during which numerous challenges and trophy events are hotly contested. Held from 10th – 22nd August at AMF Moonah, the event attracts in excess of 300 competitors and spectators from all states and territories across Australia. The event also attracts interstate followers, who are provided with live score and web feeds.
Below are the results of the carnival, and as you can see, the Victorian team did extremely well, placing first overall in the combined scoreboard and third in the men’s. Special mention to Ashley who made it to the semi finals of the restricted Masters and placed equal third.
Magellan supported the team’s expenses through making a donation and by way of thanks, our logo appeared on all the VIC team member shirts. On behalf of the management and staff of Magellan Logistics, we warmly congratulate the boys on their fantastic achievement!
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.