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Australia-India Economic Cooperation and Trade Agreement (ECTA) – Effective 29.12.22 – (Information sourced from FTA) .

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received advice from Minister for Trade and Tourism Senator the Hon Don Farrell confirming the passage of legislation through the Parliament enabling free trade agreements with India

“The Albanese Government welcomes confirmation today, that the Indian Government has completed its domestic requirements to enable implementation of the Australia-India Economic Cooperation and Trade Agreement (ECTA).

This trade agreement will deliver new market access opportunities for Australian businesses and consumers from 29 December 2022.

Australia finalised its domestic requirements for the trade agreement last week with the unanimous passage the Government’s Bills through Parliament.

ECTA is a ground-breaking agreement that brings Australia and India’s economies closer together.

From 29 December, tariffs on 85 per cent of Australia’s exports to India will be eliminated and high tariffs on a further 5 per cent of goods will be phased down.

Entry into force of the agreement before the New Year delivers a double bonus of two tariff cuts in quick succession: one as the agreement comes into effect and a second on 1 January 2023.

ECTA will save Australian exporters around $2 billion a year in tariffs, while consumers and business will save around $500 million in tariffs on imports of finished goods, and inputs to our manufacturing sector.

The tariff commitments provided by India in the agreement will open up access for Australia’s exporters of products including critical minerals, pharmaceuticals, cosmetics, lentils, seafood, sheep meat, horticulture and wine.

Australian service suppliers will benefit from full or partial access across more than 85 Indian services sectors and subsectors. Australian suppliers across 31 sectors and subsectors will be guaranteed the highest standard of treatment that India grants to any future free trade agreement partner.

Australian services sectors to benefit include higher education and adult education, as well as business services such as tax, architecture and urban planning.

ECTA will support tourism and workforce needs in regional Australia by making 1000 Work and Holiday Program places available to young adventurous Indians. It maintains opportunities for Indian students graduating in Australia to undertake post-study work, with a bonus year of stay for high-performing STEM graduates.

Australia and India are now progressing a Comprehensive Economic Cooperation Agreement to build on ECTA. The Australian Government is pursuing further opportunities in goods and services, in addition to new commitments in areas such as digital trade, government procurement, and new areas of cooperation.

Quote attributable to the Hon Anthony Albanese MP, Prime Minister of Australia:

“Australia and India are increasingly working together as strategic and economic partners.

“We elevated our relationship with India to a Strategic Partnership in 2009 and to a Comprehensive Strategic Partnership in 2020.

“The Australia-India Economic Cooperation and Trade Agreement is the next step in elevating our relationship with India, the world’s fastest growing large economy.”

Quotes attributable to the Minister for Trade and Tourism, Senator the Hon Don Farrell:

“The ECTA’s two tariff cuts in quick succession intensify the up-front benefits of this agreement for our exporters.

“Businesses are encouraged to get on the front foot and prepare themselves now to take advantage of the substantial improvements in market access to India under the new agreement.”

“Austrade can assist existing and potential exporters benefit from the lowering of trade barriers into the Indian market.”

DOMESTIC FUEL SURCHARGE

Due to continuing fuel price fluctuations, domestic transport carriers apply a fuel surcharge to all shipments. With the rising costs of fuel triggering index points over the last few months, notices are received of fuel surcharges increases.

Despite rising prices over the last 8 weeks, our position was to hold the FSC at 26% for as long as possible. Unfortunately, the increases seem to be in an upward trajectory and leaves us no choice but to pass on the cost at the new level of 29%, effective 1st December.

Data from AIP is supplied below reflecting fuel prices.

DESCRIPTION : Retail Diesel Price (cents per litre, inclusive of GST) Retail data published by AIP in charts and tables is dependent on data availability from Motormouth. Data availability for individual locations can change week to week.

 

 

 

BIOSECURITY FEE INCREASE 16.01.23

 

The receipt of Import Industry Advice Notice  226-2022 clearly signals significant changes to Biosecurity charging arrangements in the year ahead.
The Department of Agriculture, Fisheries and Forestry stated that a FID increase will proceed on 16 January 2023 and provide the below explanation for same.

 

What has changed?

Australia’s biosecurity system is becoming more complex and like industry and the rest of the world, the department is continuing to respond to changing global and domestic travel, trade and climate patterns.

The demand for our regulatory activities has also increased, together with industry expectation of faster clearances and efficiencies at the border.

The department is progressing three related bodies of work to ensure it can fund existing and future regulatory activities, meet industry expectations, and continue to manage biosecurity risk effectively into the future.

This advice notice sets out details of this work which includes:

  • Proposed implementation of cost recovery to manage the risk of hitchhiker pests and diseases
  • A comprehensive review of the biosecurity cost recovery arrangement
  • Development of a sustainable funding and investment model for biosecurity.

Proposed commencement of cost recovery to manage the risk of hitchhiker pests and diseases – Sea FID charge increase

In the 2021-22 Budget, the Australian Government committed $96.9 million over 4 years to better manage the risk of hitchhiker pests and diseases that can cause considerable cost and disruption to agricultural production, the environment, and the way of life of all Australians. The program is to be funded through a combination of existing departmental sources and cost recovery from industry.

This commitment reflects the growing risk posed by hitchhikers because of rising trade volumes, supply chain complexities, and the concurrent movement of pests and diseases around the world.

The program addresses the risk of major hitchhiker pests, for example Khapra beetle and brown marmorated stink bug, that can be carried in and on containers and their contents (around 2.5 million containers arrive each year). Noting that it is not possible to check all containers and that increased screening effort potentially causes delays at ports, the funding aims to better manage the threat of hitchhiker pests through working with industry to design and introduce innovative ways to better profile risk and enable more rapid screening.

The department advised its intent to cost recover for its increased efforts to manage hitchhiker risks through the 2021–22 Biosecurity Cost Recovery Statement (CRIS), published on 25 March 2022. It has also been raised at various industry forums such as the Department’s Cargo Consultative Committee.

To achieve this, we intend to increase the Full Import Declaration charge for sea cargo (Sea FID) for each declared consignment arriving by sea from $49 to $58, commencing 16 January 2023.

Specific Freight will continue to monitor and update on all subject matter. Should you have any queries please contact our office direct.

 

 

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