The Customs Brokers and Forwarders Council of Australia Inc. (CBFCA) notes the issues raised by the road transport sector as to congestion at empty container parks at Melbourne, Sydney and Fremantle ports. Specifically this congestion impacts and disrupts transport logistics with regular redirections to alternate sites for container de-hire and extensive truck waiting times at nominated sites.

The CBFCA understands that the situation has now reached the point where in Melbourne Hapag-Lloyd has been, at times, unable to nominate an empty container park for dehire and as such industry has been required to find alternate interim holding yards which then requires additional transport lifts and storage. Such costs are being passed on to CBFCA members, importers and exporters through higher transport rates, demurrage charges or other levies.

In what appears to be a significant change in practice and one which will impact on importers' cost base, Hapag-Lloyd is scheduled to implement a variation to its container detention calculation method effective 1 March 2010 (refer attached). It is also interesting to note that Hapag-Lloyd was reported in the Lloyds List Daily Commercial News of 18 February 2010 as "faces a year of challenges" (refer attached). As to this challenge it is wondered if the change of practice is part of the solution.

In response, the CBFCA has strongly urged Hapag-Lloyd to reconsider implementation as commencement of free time from day of discharge as this will have the effect of shortening the period to return empty containers and hence will further exacerbate existing container de-hire difficulties and costs.

The CBFCA has also raised its concerns with Shipping Australia Ltd and will be addressing associated issues with state based taskforces / Government Port Ministers, Port Corporations and the Federal Minister for Transport in the hope of bringing a rationalised response to the issue. The CBFCA will continue to keep members up to date on pertinent developments via regional and national member notices.

Incoterms are being updated

The standardised international trading terms known as Incoterms are being revised and are likely to be finalised later this year and then take effect 1 January 2011. Incoterms are extensively used in international sales contracts as they are widely recognised and understood commercially. Incoterms determine critical issues such as who will pay for the carriage of the goods and the point that risk passes between the parties.
Essentially, Incoterms 2010 are expected to be more user-friendly and the explanations of each Incoterm will be expanded to assist users of the Incoterms. Some of the specific changes that are expected include:
1. Clear distinction to be made between the multimodal Incoterms and Incoterms for marine use.
2. Cargo security to be covered to the extent possible with differing regulatory systems.
3. Elimination of some of the current 13 Incoterms. However, despite some speculation, Incoterm FAS is likely
to remain.
4. Inclusion of a new term for use in domestic transactions and transactions where no export or import clearance obligations exist.

New Tariff Concession Application System (Increased Obligation on Applicants)

Customs and Border Protection has introduced a new application form (B443) for Tariff Concession Orders (TCOs) to take effect 29 March 2010.

The new form reinforces obligations for TCO applicants to provide evidence that satisfies the CEO (Chief Executive Officer) that there are reasonable grounds for asserting that the TCO application meets core criteria.  Specifically, the legislation requires provision of all information that an applicant has, or can reasonably be expected to have, and all inquiries that an applicant has made or can reasonably be expected to make. (Section 269FA of the Customs Act 1901).