Australian Trusted Trader - Department of …

1 Chair: Teresa Conolan, Assistant Secretary Trusted Trader and Industry Branch Industry Summit Australian Trusted Trader (ATT) is a voluntary accreditation scheme that recognises secure and compliant industry supply chain practices. It offers tailored trade facilitation benefits to accredited businesses. ATT is a partnership between government and business, underpinned by shared responsibility and transparency. Accreditation is available to all Australian businesses, big and small, who are active in the international supply chain. Overview 2 Industry Summit Trusted traders have to establish and maintain supply chain security and trade compliance standards.

2 For example: ATT programme requirements 3 Supply chain security Physical security of premises and cargo Logistics security Personnel security and screening Trade compliance Strong procedures and practices in place Good track record Reporting integrity Industry Summit 4 Benefits Industry Summit Implementation commenced on 1 July 2015 with a 12 month pilot phase and four pilot partners: The pilot phase will grow over time to test a range of new processes and procedures. We look forward to welcoming industry to participate in the fully operational ATT programme from 1 July 2016. 5 Pilot phase 1 July 2015 1 July 2016 Stage 1 Stage 2 Stage 3 Industry Summit 6 Initial pilot participants Industry Summit Trader Location Industry Target Australia Pty Ltd North Geelong, VIC TCF importer Pacific Brands Holdings Pty Ltd Truganina, VIC TCF importer IBM Australia Ltd Went Pennant Hills, NSW Technology importer Matrix Composites & Engineering Ltd Henderson, WA Engineering manufacturer and exporter Apple Pty Ltd Sydney, NSW Technology importer Fletcher International Exports Pty Ltd Dubbo, NSW Meat exporter Hewlett-Packard Australia Pty Ltd Forest Hill.

3 VIC Technology importer IKEA Supply AG Moorebank, NSW Furniture importer Cochlear Limited Macquarie Park, NSW Medical Device importer Argyle Diamonds Limited (Rio Tinto) West Perth, WA Mining Industry GM Holden Port Melbourne, VIC Automotive Industry 7 New pilot participants Industry Summit Identified through initial and ongoing engagement: difficulty in identifying correct and multiple contacts in the Department difficulty re biosecurity and other government Department regulatory requirements that cause significant delays and waste cost of compliance request for bulk refunds and offsetting between financial years when lodging transfer pricing adjustments delays at overseas ports.

4 8 Feedback from industry Industry Summit MRA agenda is on schedule. Statement of Intent with New Zealand Customs Service was signed 5 November 2015. A number of other key trading partners have expressed very strong interest in MRA and we are working towards signing additional Statements of Intent in the near future. 9 Mutual Recognition Arrangements (MRAs) Industry Summit Director ATT Operations was contacted by a prospective pilot partner reporting an alleged theft within an imported container in South Australia. Director Ops contacted Account Manager in VIC who then liaised with relevant work area in ABF SA to inform them and seek advice on regional procedural requirements.

5 Advice was forwarded via phone and email to company representative in regards to the security protocols and process for application for refund. Internal company security investigation has found that the theft took place during train transportation from point of manufacture in Europe to port of export. 10 Case study one Industry Summit 11 Damage to container Industry Summit A potential Trusted Trader had changed broker and as a result the shipment had hit a profile and was held. The call centre was unable to advise why the goods were held or when they would be released. If this organisation had been a Trusted Trader , they would have advised us of the new broker arrangements.

6 Differentiated risk-assessment and targeting of Trusted Trader consignments may allow for waiving inspections following certain matches on a case-by-case basis. This and other opportunities are being discussed via the Australian Trusted Trader Differentiated and Priority Examinations Discussion Paper. Case study two 12 Industry Summit Programme is robust and is a thorough example of an AEO programme. Benefits of contact officer can be immediately utilised the bulk of industry wants to work in partnership. Having one point of contact within ABF is very useful. Some of the trade services that the ATT operations team provide may cross over with other operational work areas.

7 13 General feedback to date Industry Summit Early feedback shows that pilot participants are seeing value in the SAQ process. DIBP is getting unprecedented levels of access to the inner workings of our most successful importers and exporters, thus building an invaluable profile of what best practice looks like from a risk management perspective. The challenge and opportunity with this level of industry engagement is managing expectations. ATT process evaluation Industry Summit Mutual Recognition Arrangement strategy The Department is working with key customs administrations to fast track MRAs. ATT go live (1 July 2016) The Department will be communicating key updates in the lead up to go live so that you can stay well informed.

8 Discussion points 15 Industry Summit More information 16 Industry Summit What additional trade facilitation benefits could be considered as part of Australian Trusted Trader ? What technologies are you currently using/putting in place, which we could leverage to provide us additional information about the location and security of your goods? From your experiences and possible membership of other international AEO programmes, what works well and what does not? Questions?