Customs reform and (lack of) FTA uptake of interest and concern to all of Industry
Cargo Archive Stories issue 232
Monday, 01 September 2014
GREETINGS to all of you from my new ‘home’ at Gadens. I have been busy with work and out on the road including presenting CPD in person and on-line for the CBFCA. I have also started publishing regular Industry Updates, so don’t hesitate to ask to be included on the list of recipients.
In this column I thought I would bring you a summary of work on current reforms of interest.
The Customs reform agenda I recently spent two exciting days with the Australian Customs and Border Protection Service (Customs) which included the Industry Summit, the National Consultative Committee meeting and the first meeting of the Trusted Trader Advisory Group.
Some of the highlights of the Summit included:
• An opening address by assistant minister senator Cash; • Addresses and engagement by the ceo of Customs and the secretary of the Department of Immigration and Border Protection; • A full day of panel discussions around the four main themes of travel, border, trade & goods and strategy; • Presentations on the implementation and impact of the merger of Customs and the Department of Immigration; • Discussions on the proposed reinvigoration of industry engagement and the development of the new Trusted Trader Program.
Next day, a smaller group attended the inaugural meeting of the Trusted Trader Advisory Group. Members of the Group included representatives of industry associations, Customs, other Government agencies and some of the large multinationals such as Boeing, IBM and GM Holden who are members of similar programs overseas. The meeting set the scene for the proposed development and introduction of the Program, addressed some preliminary issues on the parameters of the Program and set out an ambitious timetable for further meetings and the development of the Program and associated legislation so its first iteration would be in place by 1 July 2015 as promised.
(Non) use of FTAs – release of the HSBC Survey As many of you would be aware, through my practice and involvement with industry associations I have been engaged in the development of the Australian Free Trade Agreement (FTA) agenda, which has included advice on the usage of the FTA as well as compliance issues.
However, an ongoing issue has been the apparent under-utilisation of FTAs and how that can be remedied given the work undertaken to put them into place and the very real benefits which can accrue from use of the FTAs. This is a live issue given the recent completion of FTAs with Korea and Japan and the potential FTA with the PRC along with the work on the TPP and RCEP.
The issue of use of FTAs was a focus of the Productivity Commission Research Report entitled ‘Bilateral and Regional Trade Agreements’ issued in November 2010 and in the recent B20 Trade Recommendations of the B20 Trade Taskforce The issue was also investigated and addressed in the Survey entitled ‘FTAs ; fantastic, fine or futile? Business views on Trade Agreements in Asia’ from The Economist Intelligence Unit, which was sponsored by HSBC and released in August 2014. In my capacity as a director of the Export Council of Australia and chair of the Trade Policy Committee of the ECA I was fortunate to be invited to a media launch of the Survey.
One of the most striking findings of the Survey was the low usage of FTAs in the region including a mere usage of 19 per cent in Australia. Ironically, the Survey also recorded that those respondents which did use FTAs reported an 85 per cent increase in trade.
The Survey identified some reasons for low usage including: - lack of awareness; - complexity; - the need for Government to supply better information.
The need to address these issues also was discussed at the Summit, with Industry providing reasons for lack of use of FTAs and how that use may be increased.
Need for work by Government and Industry in both areas Given the massive amount of work being undertaken in both areas and the potential significant benefits through these areas, there is a clear message in all of this. Both Government and Industry need to improve their engagement with each other to make sure that this work is properly developed and implemented and that all parties secure the maximum results from their investment.
written by Andrew Hudson, partner, Gadens Melbourne. E: This email address is being protected from spambots. You need JavaScript enabled to view it.
Customs reform and (lack of) FTA uptake of interest and concern to all of Industry
Cargo Archive Stories issue 232
Monday, 01 September 2014
GREETINGS to all of you from my new ‘home’ at Gadens. I have been busy with work and out on the road including presenting CPD in person and on-line for the CBFCA. I have also started publishing regular Industry Updates, so don’t hesitate to ask to be included on the list of recipients.
In this column I thought I would bring you a summary of work on current reforms of interest.
The Customs reform agenda I recently spent two exciting days with the Australian Customs and Border Protection Service (Customs) which included the Industry Summit, the National Consultative Committee meeting and the first meeting of the Trusted Trader Advisory Group.
Some of the highlights of the Summit included:
• An opening address by assistant minister senator Cash; • Addresses and engagement by the ceo of Customs and the secretary of the Department of Immigration and Border Protection; • A full day of panel discussions around the four main themes of travel, border, trade & goods and strategy; • Presentations on the implementation and impact of the merger of Customs and the Department of Immigration; • Discussions on the proposed reinvigoration of industry engagement and the development of the new Trusted Trader Program.
Next day, a smaller group attended the inaugural meeting of the Trusted Trader Advisory Group. Members of the Group included representatives of industry associations, Customs, other Government agencies and some of the large multinationals such as Boeing, IBM and GM Holden who are members of similar programs overseas. The meeting set the scene for the proposed development and introduction of the Program, addressed some preliminary issues on the parameters of the Program and set out an ambitious timetable for further meetings and the development of the Program and associated legislation so its first iteration would be in place by 1 July 2015 as promised.
(Non) use of FTAs – release of the HSBC Survey As many of you would be aware, through my practice and involvement with industry associations I have been engaged in the development of the Australian Free Trade Agreement (FTA) agenda, which has included advice on the usage of the FTA as well as compliance issues.
However, an ongoing issue has been the apparent under-utilisation of FTAs and how that can be remedied given the work undertaken to put them into place and the very real benefits which can accrue from use of the FTAs. This is a live issue given the recent completion of FTAs with Korea and Japan and the potential FTA with the PRC along with the work on the TPP and RCEP.
The issue of use of FTAs was a focus of the Productivity Commission Research Report entitled ‘Bilateral and Regional Trade Agreements’ issued in November 2010 and in the recent B20 Trade Recommendations of the B20 Trade Taskforce The issue was also investigated and addressed in the Survey entitled ‘FTAs ; fantastic, fine or futile? Business views on Trade Agreements in Asia’ from The Economist Intelligence Unit, which was sponsored by HSBC and released in August 2014. In my capacity as a director of the Export Council of Australia and chair of the Trade Policy Committee of the ECA I was fortunate to be invited to a media launch of the Survey.
One of the most striking findings of the Survey was the low usage of FTAs in the region including a mere usage of 19 per cent in Australia. Ironically, the Survey also recorded that those respondents which did use FTAs reported an 85 per cent increase in trade.
The Survey identified some reasons for low usage including: - lack of awareness; - complexity; - the need for Government to supply better information.
The need to address these issues also was discussed at the Summit, with Industry providing reasons for lack of use of FTAs and how that use may be increased.
Need for work by Government and Industry in both areas Given the massive amount of work being undertaken in both areas and the potential significant benefits through these areas, there is a clear message in all of this. Both Government and Industry need to improve their engagement with each other to make sure that this work is properly developed and implemented and that all parties secure the maximum results from their investment.
written by Andrew Hudson, partner, Gadens Melbourne. E: This email address is being protected from spambots. You need JavaScript enabled to view it.
