Archives For Trade Facilitation

Ghana
Deputy Minister of Trade and Industry, Mr. Carlos Ahenkorah, says Ghana a signatory to the WTO Trade Facilitation Agreement is too small a country to have two Single Window operators.

He challenged the pioneer and only single window operator, Ghana Community Network Services Limited (GCNet) to speedily re-double its efforts in actualising the full breadth of Single Window operations in the country.

He recalled GCNet’s drive to automate trade facilitation and port clearance processes in the country and the difference that brought to trade and port operators.

He praised the Ghana Integrated Cargo Clearance Systems (GICCS) deployed by GCNet as efficient and robust enough to deliver on any valuation needs and address any bottlenecks in the overall clearance systems at the ports to deepen trade facilitation and enhance revenue mobilisation.

He noted that GCNet had taken too long in securing the manifest, the seed document in clearance processes at the ports from source, a situation that may have encouraged other operators to exploit the loophole to try to secure that right from the International Air Transport Association.

The Deputy Trade Minister, however, noted that if GCNet had connected Maersk Lines to transmit its manifest into the Ghana Customs Management System (GCMS) over the past three years then there was no way that it could not oblige other carriers to emulate that example and ensure that both air and sea manifest are transmitted expeditiously.

He also urged GRA (Customs Division) as the statutory body to assist GCNet to get all other carriers to do so with dispatch going forward.

Mr. Ahenkorah also charged GCNet to remain committed to their tenets of innovation and service delivery and work harder to expand the scope of its TradeNet Single Window platforms in order to ward off any superfluous and duplicitous competition.

On his part, the Chief Executive Officer of the Ghana Shippers Authority, Dr. Kofi Mbiah, challenged Government to be bold to speedily resolve critical issues militating against the full actualisation of Single Window implementation in the country.

He said Ghana having been acknowledged as a pioneer in Single Window operations by international bodies like the World Bank and a number of countries having undertaking familiarization visits to Ghana to learn about the GCNet experience.

Dr. Mbiah noted that in as much as there was the need for collaboration between GCNet and other operators, it was also extremely important to define the parameters of engagement to create a level playing field for all players in the trade facilitation and revenue mobilisation eco-system.

Welcoming guests earlier to the event, the Executive Chairman of GCNet, Dr. Nortey Omaboe, noted that as a Public Private Partnership (PPP) conceived since its inception, the model over time had proved to be the most effective way of executing such a national mandate to support revenue mobilisation by Government, foster trade facilitation and enhance business competitiveness.

Dr. Omaboe observed that Government’s quest for increased revenue in an environment of reduced taxes to stimulate private sector growth meant greater focus on GCNet to come up with new initiatives to support revenue mobilisation efforts.

He, therefore, outlined a number of initiatives that GCNet had proposed to Government to enhance revenue mobilization.

These include the need to improve upon the valuation of consignments, the need to invoke bonds for transit goods that do not exit the country after 14 days and the review of the paltry charges currently imposed, ensuring that warehoused goods are ex-warehoused within the stipulated time periods.

Also, tighter control of free zone operations and the duty and tax exemptions granted thereon, the assignment of all newly registered taxpayers to relevant GRA Tax Offices and ensuring they file tax returns, etc.

Dr. Omaboe however expressed concerned about non-clarity in the role of some entrants in the trade facilitation and revenue mobilisation space following the cessation of the destination inspection companies and called for urgent steps to address the worrying development; and its inherent duplications and hence unnecessary cost to Government.

He was confident that what he termed ‘unnecessary complication’ would eventually be resolved mindful of the consideration that the interest of the country should remain paramount and be protected.

Dr. Omaboe assured guests that GCNet was poised for further growth and development in the years ahead as it leverages upon its continuous innovations in deploying systems that bring greater value to the Government and people of Ghana. Source: Ghana News Agency, Two Single Window Operators too much for Ghana, April 19, 2017

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The WCO Private Sector Consultative Group (PSCG) met for the 41st time at the WCO headquarters on 3 and 4 July 2017. The meeting was chaired by Mr. John Mein from PROCOMEX and attended by representatives from 17 of the 21 PSCG members – AAEI, BMW, CATERPILLAR, E-BAY, FIATA, FONASBA, FONTERRA, GEA, HAIER, HUAWEI, IATA, ICC, IFCBA, MICROSOFT, OPORA, PROCOMEX and SAAFF.

During their two-day meeting, the PSCG discussed a number of very topical matters and developments, including current threats of protectionism to free trade, the state of trade facilitation and the implementation of the WTO TFA agreement and e-commerce. WCO members also attended part of the meeting and presented current WCO work programmes, including the upcoming review of the Revised Kyoto Convention and encouraged PSCG members to take an active role in this review work. The Secretary General, Kunio Mikuriya, also addressed the PSCG on its first day on issues relating to the current state of international trade.

Following the PSCG meeting, a dialogue between Policy Commission and PSCG members including Trade Observers was held to discuss current challenges with regard to free trade and globalization.  During break-out groups representatives from both the Customs administrations and private sector discussed the current problem landscape and what the international Customs community can do in collaboration with the private sector to support economic and social development and growth through the application of trade facilitation principles and measures. Source: WCO

WCO News June 2017

The WCO has published the 83rd edition of WCO News, the Organization’s flagship magazine aimed at the Customs community, which provides a selection of informative articles that touch the international Customs and trade landscape.

This edition features a special dossier on the use of collective action to fight corruption and how it can apply in the Customs context, and includes both country-specific experiences as well as the views of Customs’ partners.

It also puts a spotlight, in its focus section, on the WCO Mercator Programme, the capacity building programme designed by the WCO to assist governments in implementing the Customs trade facilitation measures outlined in the WTO Agreement on Trade Facilitation.

Other highlights include articles on the implementation of a new standard to ensure that men and women receive equal pay for equal work, enhanced control of light aviation in West Africa, the use of basic mathematics to fight corruption and bad practices, and much more.

The magazine is published and distributed free of charge three times a year, in February, June and October, and is available online or in paper format. Source: WCO

big_data

Historically, a customs officer’s “intuition” backed up by his/her knowledge and experience served as the means for effective risk management. In the old days (20 years ago and back) there wasn’t any need for all this ‘Big Data’ mumbo jumbo as the customs officer learnt his/her skill through painful, but real-life experience, often under bad and inhospitable conditions.

Today we are a lot more softer. The age of technology has superseded, rightly or wrongly, the human brain. Nonetheless, governments thrive on their big-spend technology budgets to ensure the safety of their economies and supply chains.

No less, the big multinational corporations whose ‘in-house’ business is no longer confined by national boundaries or continents are responsible for the generation of huge amounts of data which need to extend  to the limits of their operations. When the products of such business are required to traverse national boundaries and continents,  their logistics and transport intermediaries, financiers, and insurers become themselves tied up in the vicious cycle of data generation and transfer, also spanning national boundaries to ensure those products arrive at their intended destinations – intact, in time and fit for purpose. Hence we have what as become known as the international supply chain.

It does not end there. Besides the Customs authorities, what about the myriad of other government regulatory authorities who themselves have a plethora of forms and information requirements which must be administered and approved prior to departure and upon arrival of goods at their destination.

Inefficiencies along the supply chain culminate in delays with added cost which dictates the viability for sale and use of the product during delivery. These may constitute what is called non-tariff barriers (or NTBs) which negatively impact the suppliers credibility in international trade.

The bulk of this information is nowadays digitised in some for or other. It is obviously not all standardised and structured which makes it difficult to align, compare or assimilate. For Customs it poses a significant opportunity to tap into and utilise for verification or risk management purposes.

The term ‘Big Data’ embraces a broad category of data or datasets that, in order to be fully exploited, require advanced technologies to be used in parallel. Many big data applications have the potential to optimize organizations’ performance, (and here we have it) the optimal allocation of human or financial resources in a manner that maximizes outputs.

At this point, let me introduce one of the latest WCO research papers – “Implications of Big Data for Customs – How It Can Support Risk Management Capabilities” by Yotaro Okazaki.

The purpose of this paper is to discuss the implications of the aforementioned big data for Customs, particularly in terms of risk management. To ensure that better informed and smarter decisions are taken, some Customs administrations have already embarked on big data initiatives, leveraging the power of analytics, ensuring the quality of data (regarding cargos, shipments and conveyances), and widening the scope of data they could use for analytical purposes. This paper illustrates these initiatives based on the information shared by five Customs administrations: Canada Border Services Agency (CBSA); Customs and Excise Department, Hong Kong, China (‘Hong Kong China Customs); New Zealand Customs Service (‘New Zealand Customs’); Her Majesty’s Revenue and Customs (HMRC), the United Kingdom; and U.S. Customs and Border Protection (USCBP). Source: WCO

International trading involves many participants all around the globe. These participants may not necessarily have the needed trust of all parties, especially at the initial stages, when newcomers join the trade. Blockchain can provide the needed trust to capture key transaction activities as immutable records, as well as storing and sharing encrypted legal and financial documents.

Visibility of transaction records and documents are tightly controlled by blockchain, permitting sharing only among entrusted and allowed parties. In this demo, IBM demonstrates how blockchain may support such an application.

The blockchain solution being built by the two companies is expected to be made available to the ocean shipping industry later this year, according to a joint statement from International Business Machines Corp and the container unit of A.P. Moller-Maersk. It would help manage and track the paper trail of tens of millions of shipping containers globally by digitizing the supply chain process from end to end.

This will enhance transparency and make the sharing of information among trading partners more secure.

When adopted at scale, the solution based on the Linux Foundation’s open source Hyperledger platform has the potential to save the industry billions of dollars, the companies said.

“Working closely with Maersk for years, we’ve long understood the challenges facing the supply chain and logistics industry and quickly recognized the opportunity for blockchain to provide massive savings when used broadly across the ocean shipping industry ecosystem,” said Bridget van Kralingen, senior vice president, industry platforms, at IBM.

IBM and Maersk intend to work with a network of shippers, freight forwarders, ocean carriers, ports and customs authorities to build the new global trade digitization product, the companies said.

The product is also designed to help reduce or eliminate fraud and errors and minimize the time products spend in the transit and shipping process.

For instance, Maersk found that in 2014, just a simple shipment of refrigerated goods from East Africa to Europe can go through nearly 30 people and organizations, including more than 200 different communications among them.

The new blockchain solution would enable the real-time exchange of original supply chain transactions and documents through a digital infrastructure that connects the participants within the network, according to IBM and Maersk. Source: Reuters

wto-tfa-enters-into-force

Trade Facilitation Agreement, 22 February 2017.

A major milestone for the global trading system was reached on 22 February 2017 when the first multilateral deal concluded in the 21 year history of the World Trade Organization entered into force. In receiving four more ratifications for the Trade Facilitation Agreement (TFA), the WTO has obtained the two-thirds acceptance of the agreement from its 164 members needed to bring the TFA into force.

Rwanda, Oman, Chad and Jordan (pictured above) submitted their instruments of acceptance to WTO Director-General Roberto Azevêdo, bringing the total number of ratifications over the required threshold of 110. The entry into force of this agreement, which seeks to expedite the movement, release and clearance of goods across borders, launches a new phase for trade facilitation reforms all over the world and creates a significant boost for commerce and the multilateral trading system as a whole.

Full implementation of the TFA is forecast to slash members’ trade costs by an average of 14.3 per cent, with developing countries having the most to gain, according to a 2015 study carried out by WTO economists. The TFA is also likely to reduce the time needed to import goods by over a day and a half and to export goods by almost two days, representing a reduction of 47 per cent and 91 per cent respectively over the current average.

Implementing the TFA is also expected to help new firms export for the first time. Moreover, once the TFA is fully implemented, developing countries are predicted to increase the number of new products exported by as much as 20 per cent, with least developed countries (LDCs) likely to see an increase of up to 35 per cent, according to the WTO study.

At present, 10 out of 24 Members of East and Southern Africa (ESA) have ratified the TFA. These are; Mauritius, Botswana, Lesotho, Kenya, Zambia, Seychelles, Madagascar, Swaziland, Mozambique and Rwanda. So where to now South Africa?

wco-icd2017As national Customs administrations and border agencies celebrate International Customs Day, no doubt showcasing their recent ICT endeavours, it is good to reflect not only on the available standards and tools which are becoming more available to Customs and Border Management Agencies.

The WCO spearheads and supports several initiatives aimed at fostering increased coperation and collaboration between member states under the banner of ‘Digital Customs’. In the post security era, throught is capacity building arm, the WCO champions global development of its Digital Customs concept and strategy. The WCO’s work programme in this regard covers a broad area of focus, for example:

  • to support the WTO Trade Facilitation Agreement,
  • the updating of related WCO instruments and tools,
  • ongoing promotion and maintainance of the WCO Data Model,
  • monitoring of new and emerging technological developments (3D printing, Big Data, Predictive Analytics, Drones and Blockchain),
  • promotion of e-services and apps,
  • exchange of information between stakeholders nationally and accross borders, and
  • promotion of the Single Window concept.

For most customs and border administrators, they have somewhere heard of, or to some extent are aware of the ‘buzz words’. The various chapters of the WCO through the working groups provide up-to-date developments in all facets on developments in the modern Customs operating and global trade environment. These are ably supported by several internal business organisations and umbrella associations adding credence to the developmental work and ultimately the standards, policies and guidelines published by the WCO.

In this modern era of uncertainty – global political and socio-economic risks – International Customs Day should be a combined celebration not only for Customs, but moreover, the associated supply chain industries and business intermediaries. If there was no trade in goods there would be no Customs or WCO. Without the providers of ‘big data’ there would be no need for data analysis. Without illicit activities there would be no need for expensive enforcement technology and equipment and the application of risk management.

Thanks to an imperfect and unequal world the WCO, through its association with the world’s customs authorities, big business and ICT service providers is able to develop a Digital Customs Maturity Model, which provides a road map for administrations from the least to most developed (mature rather). The pace and extent of maturity is undoubtedly determined by a country’s discipline and agility based on a clear strategy with the support and commitment of government and allied industries.Happy Customs Day!

WTO LogoThe WTO announced that the following countries have submitted their instruments of acceptance to the WTO Trade Facilitation Agreement (TFA):

  • 104. Ghana (4 January 2017)
  • 105. Mozambique (6 January 2017)
  • 106. St. Vincent and the Grenadines (9 January 2017)

Only four more ratifications from members are needed to bring the TFA into force. The TFA will enter into force once two-thirds of the WTO membership has formally accepted the Agreement.

China Customs EmblemAudit firm KPMG reports that the General Administration of Customs (GAC) will reform the existing customs clearance procedure for imported goods, according to a GAC Circular on Carrying out Pilot Reform of Tax Collection and Administration Procedure issued on 29 October 2016. Under the current procedure, review of the customs declaration is required before goods are released. This reform is designed to further guide import and export enterprises to be self-disciplined and law-abiding, with the principle stated as “honesty and observance of the law brings convenience; dishonesty and irregularity leads to punishment” to improve customs clearance efficiency.

Content of pilot reform  includes the following elements:

Independent customs declaration and tax payment – when importing goods, enterprises should submit customs declarations truthfully and accurately in advance, calculate tax payable and surcharges and handle payment-related procedures on their own.

Review of elements relating to tax calculation after release of goods  – generally, goods will be released after enterprises complete the customs declarations and tax payment procedures on their own. Afterwards, the customs authority will spot-check and review the valuation, classification and origin of the imported goods of the enterprises. In special cases, the authority will inspect the customs declaration in advance.

Proactive disclosure scheme After release of goods – enterprises are encouraged to report to the authorities in writing if they are aware of any of their own violations against customs regulations. Enterprises which the customs authority believes to be voluntary disclosers of their own irregularities will be less punished or free from punishment. For enterprises which have disclosed their irregularities and paid back taxes proactively, late fees can be reduced or eliminated.

For more details access the KPMG report here! Source: KPMG

icc-2020

Who would have guessed that a collection of three-letter acronyms would have had such an impact on the development of international (and domestic) commercial transactions? A group of industrialists, financiers and traders whose determination to bring economic prosperity to a post-World War I era eventually led to the founding of the International Chamber of Commerce (ICC). With no global system of rules to govern trade, it was these businessmen who saw the opportunity to create an industry standard that would become known as the Incoterms rules.

To keep pace with the ever evolving global trade landscape, the latest update to the trade terms is currently in progress and is set to be unveiled in 2020. The Incoterms 2020 Drafting Group includes lawyers, traders and company representatives from around the world. The overall process will take two years as practical input on what works and what could possibly be improved will be collected from a range of Incoterms rules users worldwide and studied. For more information visit the ICC websiteSource: ICC 

sars-edi-user-manualSARS has been operating Electronic Data Interchange (EDI) with its external stakeholders since 2001. More than 98% of all customs declaration (CUSDEC) transactions are today submitted electronically to Customs and the electronic submission of multimodal cargo reports (CUSCAR) is steadily increasing. Today, declaration processing is fully electronic end-to-end thanks to the availability of highly established EDI and Customs software service providers supporting the local customs and logistics community. SARS has also recently introduced a benefit for compliant cargo reporters who will be absolved of certain manual (paper) submission requirements once they attain an acceptable level of electronic submission compliance and data accuracy.

The ultimate objective is to ensure that all Customs-to-Business (C2B) transactions are electronic to enable full supply chain connectivity between the South African business community and Customs. This in turn enables the possibility of SARS accrediting or approving ‘supply chains’ as opposed to just individual trader segments (importers and exporters). The extent of electronic compliance is also a pivotal requirement for traders operating under the new Customs Control Act, to be enacted in the future.

SARS overall EDI capability extends further than declarations and cargo reports. In recent years Customs-to-Government (C2G) messaging has also been successfully established between SARS and the Department of Trade and Industry (dti) as well as the South African Reserve Bank (SARB). SARS is also engaging other government stakeholders concerning IT connectivity and data exchange.

Moreover, developments for cross-border Customs-to-Customs (C2C) data exchange are also in the pipeline and could come to fruition with the partner administrations in Mozambique and Swaziland in the foreseeable future. These initiatives will usher in increased supply chain connectivity through active use of the Unique Consignment Reference (UCR) between participating customs administrations. The ultimate objective here is the creation of mutual recognition benefits for local and cross-border traders based on their accreditation status agreed between the participating customs administrations.

The SARS Electronic Data Interchange (EDI) Manual (which can be downloaded from the SARS EDI webpage) has been updated with the latest versions of SARS Edifact Data Mapping Guides as well as improved diagrams explaining the functional composition of the various electronic messages specified for Customs processing. Also included are the requirements for registering as an EDI user with SARS.

The manual includes recent updates relating to cargo reporting (manifests) as well as the updated customs declaration message incorporating recent inclusion of customs surety, penalty and forfeiture requirements. The latter enhancement removes another document based requirement (the Form DA70 Provisional Payment) for Customs Brokers with the view streamlining data requirements, enhancing customs billing and customs status reporting with the trade and logistics community. This EDI Manual will be an important document over the coming months and years in that it will feature updated electronic requirements in support of the new Customs Control Act. Watch this space!

wco-news

This edition of WCO News features a special dossier on the 2016 Council Sessions, in particular the latest developments in the core WCO areas of work: tariff and trade affairs, trade facilitation, enforcement, and capacity building.

It also puts a spotlight, in its focus section, on the Customs brokers profession, including the practices adopted by some Customs administrations related to licensing and regulatory regimes.

Other highlights include articles covering the quantification and taxation of carbon emissions, the protection of cultural heritage through enhanced cooperation between Customs officers and museum professionals, and much more.

The magazine is published and distributed free of charge three times a year, in February, June and October, and is available online or in paper format.

If you do not want to miss future issues of WCO News, the WCO  invites you to fill out the online subscription form – click here!

Source: WCO

inland-port-7The World Customs Organization (WCO) organized a National Workshop on Inland Depots under the sponsorship of the Customs Cooperation Fund (CCF)/Japan and the Japan International Cooperation Agency (JICA). It was held from 20 to 22 September 2016 in Savannakhet Province, Lao People’s Democratic Republic.

Twenty six Customs officers from the Lao Customs Administration participated in the workshop, along with guest Customs experts from The Former Yugoslav Republic of Macedonia, Japan and JICA. Mr. Somphit Sengmanivong, Deputy Director General of the Lao Customs Administration, opened the workshop. He highlighted the importance of Inland Depots as a national strategy to secure his country’s economic growth and sought participants’ active participation in the discussions on this topic.

Presently, there is no clear definition of “Inland Depot” and many similar terms, such as Dry Port, Inland Terminal, Free Trade Zone and Special Economic Zones, are used in the international logistics. During the three-day workshop, participants discussed the functions and a possible definition of Inland Depot from a Customs perspective.

AmatiComment – Inland container terminals serve as important hubs or nodes for the distribution and consolidation of imported and export destined cargoes. There are 16 Landlocked countries in Africa, which signifies the importance of hinterland logistics development and its consequential impact on regional trade groupings. Consequentially, it behooves governments to understand and support the logistics supply chain industry in maximizing inland transportation (multi-modal) infrastructures to achieve a common and mutually beneficial economic environment. Furthermore, the more facilitative these arrangements, the better opportunity there is for success and longer-term economic sustainability.

The WCO Secretariat made presentations on international standards for relevant procedures, including Customs warehouses, free zones, Customs transit, inward processing, clearance for home use and temporary admission. Experts from The Former Yugoslav Republic of Macedonia and Japan described their national and regional experience of Customs warehousing, and Customs transit procedures. The JICA expert presented the bonded procedures applied by neighbouring countries to Lao People’s Democratic Republic. Lao Customs administration explained their national system for Inland Depots and a logistics company of Lao PDR shared its expectations on inland depots.

On the last day, participants discussed the challenges and possible solutions to enhance the functional and efficiency of Lao’s Inland Depots. Possible solutions, such as the use of modern information technology, further cooperation with the private sector, clear regulations on relevant procedures, coordinated border management and international cooperation were considered. Source: WCO

Recommended reading

trusted-trader-transparent

A new customs program aimed at bringing Australia into line with other major trading nations could substantially cut costs when exporting to Asia.

The Department of Immigration and Border Protection (DIPB) believes that the benefits to the Australian economy of this streamlined export process could be worth up to $1.5 billion for every one per cent increase in efficiency of transport and logistics supply chains.

The pilot for the Australian Trusted Trader (ATT) program launched this month will eventually allow accredited export businesses to gain streamlined customs and security clearance in countries that have a mutual recognition agreement with Australia.

Similar programs have already been adopted by more than 58 international jurisdictions – including China, India, Japan, Singapore, Taiwan and South Korea – since being introduced by the World Customs Organisation (WCO) in 2005.

Known generally as Authorised Economic Operator (AEO) schemes, they provide a framework of standards for trading partners in recognising each other’s customs and security regimes.

According to the Centre for Customs and Excise Studies (CCES) at Charles Stuart University, the goods of exporters who are accredited to the New Zealand AEO scheme are 3.5 times less likely to be inspected or held up on arrival in the US.

Professor David Widdowson, head of school at CCES, and a leading advocate and advisor on the introduction of the ATT, says that accreditation to an AEO is often an imperative for many international supply chains.

“When exporters send goods overseas and they get held up, there’s basically two ways that countries are dealing with them,” he said. “There those that come from a known secure supply chain – such those where a mutual AEO agreement is in place – and they’re treated as low-risk; and then there’s the rest, which are treated as high-risk.

“Without being part of an AEO or trusted trader agreement, Australian exporters are more often likely to fall into the latter category.

“In some jurisdictions it can be very difficult to be accepted onto an AEO scheme as an importer, so big multinationals often actively look for partners and suppliers who are already accredited to a scheme in their own country – and won’t deal with anyone who isn’t. They don’t want to run the risk of their non-accredited parts of their supply chain compromising their status on the scheme.

“So we can see how AEOs are actually now being used by commerce as a key indicator of the standard that business is looking for in terms of protecting their international supply chain.”

The aims of the ATT include expedited border clearance, reduced or priority inspections and priority access to trade services. The DIPB will also explore the possibilities for duty deferral and streamlined reporting arrangements.

Accredited trusted traders are to be assigned an account manager within the DIPB, as a single point of contact to assist with customs and export issues across all federal departments.

To apply to enter the program, Australian exporters and supply-chain businesses – including freight-forwarders, brokers and logistics firms – first need to obtain a self-assessment questionnaire from DIPB.

The information submitted by the business is then audited by the DIPB to ensure that the necessary security systems and procedures are in place, before accreditation can be given. There is no licence or application fee for the program, and Prof Widdowson expects the process to take “a few weeks if it’s a major company or it could be a few days if it’s a medium-sized company”.

The pilot phase will be completed in this current financial year, and only four companies will be taking part initially: Boeing Aerostructures Australia, Devondale Murray Goulburn, Mondelez Australia and Techwool Trading.

Teresa Conolan, assistant secretary of the Trusted Trader and Industry Branch at the DIPB, said more companies would be included in the pilot as it progresses.

“We’re hoping to have around 40 companies over the 12 months in the pilot, across a range of business sectors, so we can actually test the processes and make sure they are not too burdensome,” she said.

“Over four years we’re expecting around 1500 companies to join the scheme – so it’s certainly not going to cover all business.”

Conolan added that preliminary discussions with some countries were already underway, though negotiations on agreements were unlikely to begin until the ATT was fully launched next July.

She said Australia’s key trading partners would be the priority, but expected the negotiations and implementation of agreements with some of them to take a further year.

The rollout of the pilot program follows years of pressure from the Australian business community to embrace AEO, after initial reluctance by the Australian Customs and Border Protection Service (ACBPS).

Following an article by The Australian Financial Review on March 20, 2013, which flagged Australia’s non-participation, business leaders sponsored a research study, undertaken by the CCES, which found that the scheme could be highly beneficial. Business groups began to lobby the federal government, by which time the ACBPS had reversed its attitude and agreed to consider implementing an Australian scheme.

For more information on the Australian Trusted Trader scheme, visit – trustedtraders@borders.gov.au

Also read:

containersThe following was penned by a long-time customs acquaintance Aires Nunes da Costa, who has kindly permitted me to post his article titled “Why unpack containers in Durban if you can have containers at your door step in Gauteng within 24 hours?” which first appeared on LinkedIN.

The Tambo Springs initiative involves creating a significantly improved intermodal capability for the movement of freight to and from Gauteng. This is to be achieved by the operational twinning of the inland port with other seaport, inland and cross border locations. The connectivity i.r.o. these twinned locations is achieved via sea, rail, road and air linkages, ideally involving seamless movement of freight between modes.

The Tambo Springs development incorporates a next generation inland port with a state of the art rail terminal facility designed to be developed in phases, with an ultimate capacity of 1 m TEU’S p.a., as well as, a sprinter freight land bridge.

The key elements are as follows:-

Direct Traditional Rail Link to Durban Harbour

The Tambo Springs Terminal will be linked to the Durban Container Terminal which currently handles the bulk of all container freight moving in and out of Gauteng, via an efficient rail service. The fixed rail infrastructure for this link already exists to the Tambo Springs site. This state of the art Terminal facility is designed to significantly increase the rail capacity for container freight to/from Gauteng, while simultaneously reducing real costs and significantly improving levels of service via:

  • a new technology “greenfields” terminal being more efficient;
  • a reduction of congestion issues in and out of the new inland port due to its location;
    improved efficiency of port operations;
  • having the facility serviced by improved rolling stock commissioned by Transnet;
    Sprinter Freight Rail Link to Ngqura Harbour In the Coega IDZ (Port Elizabeth)

In addition to the direct rail link with Durban harbour, the initial phase of this programme involves the twinning of the Coega IDZ and its adjoining Deep Water Container Terminal at the Port of Ngqura with Tambo Springs. This is to be undertaken by means of a Public Private Partnership type structure which utilizes the Transnet capability between the two locations as well as the participation of SARS.

The service level to be achieved for the movement of the freight via this land bridge has a goal of “24 hours” as opposed to the current 3 to 5 days service level achieved at City Deep. This is to be achieved by capitalizing on the creation of high efficiency intermodal activities integrated with the port functions and feeder network.

Truck Freight Movement

The Tambo Springs Inland Port will function as a multimodal logistics gateway serving the Gauteng Catchment area. It therefore provides ease of movement between individual transportation modes in addition to facilitating manufacturing, warehousing and distribution activities.

The operational plan is therefore designed to accommodate long distance (FTL) truck traffic in addition to regional (LTL) freight movement.

The principle truck markets the inland port will attract include:

  • FTL long distance movement of time sensitive freight from other ports or metropolitan areas. This includes both cross docking and stuffing/de-stuffing facilities within the inland port;
  • Rail/truck (intermodal) movement where product utilizing the rail links is transferred to truck in order to each its final destination;
  • LTL truck and Van short distance movement of freight, including a regional metropolitan distribution function.

The next generation inland port therefore capitalizes both on rail and road transportation modes with a focus on increased movement of long distance freight by sprinter rail.

Intermodal Movement

In order to achieve seamless intermodal movement of freight between sea, rail, road and air transport, it is essential to link Tambo Springs with other inland port and hub locations. The creation of such a twinned Inland Port Network provides a means to effectively participate in the Global Supply Chain in a manner which optimizes both existing and new facilities to enhance capacity. Hence, for example, Tambo Springs would be linked to City Deep via rail and road linkages and to other hub locations in Gauteng and elsewhere.

A principle element of this approach is to create an efficient transportation service between all the individual entry/exit ports providing an improved level of service over and above that provided by a traditional network. The key to this is to rethink existing processes with a focus on efficiency savings in terms of the inbound and outbound process flow at Tambo Springs. This has been incorporated into the operational concept and addresses both operational and customs and regulatory efficiency issues as part of the supply chain. Source: Aires Nunes da Costa (Customs & Excise Specialist)