Five new benefits for Australian Trusted Traders were announced at the annual symposium held on 8 August 2018.
There are over 200 accredited Trusted Traders who are able to access these benefits with estimated savings of $3.2 billion projected for Australian business over the 10 year period to 2025.
The Australian Trusted Trader program is a partnership with industry and offers a range of benefits including streamlined border clearance saving time and money, as well as the opportunity to be a part of the conversation about future benefits and trade modernisation.
The new benefits available only to accredited Trusted Traders include:
1. Duty deferral: improving cash flow and reducing delays at the border by enabling Trusted Traders who defer GST to be able to defer the payment of some customs duties on goods.
2. Origin Advance Ruling: a special advance ruling exclusively for Trusted Traders who import goods under the China Australia Free Trade Agreement (ChAFTA). Preliminary estimates by one Trusted Trader in the pilot indicate that they could save up to $1.6 million each year due to reduced payments for the Certificates of Origin and time spent doing the paperwork. The ruling will be applied to multiple tariff classifications and rules of origin criterion.
3. Full implementation of the Republic of Korea Mutual Recognition Agreement (MRA): improving predictability, certainty, and speed to market for Trusted Traders through an agreement between Korean and Australian customs administrations. Now the MRA has been fully implemented, Trusted Traders will receive priority treatment of goods at the border through expedited clearance, reduced documentation and cargo inspections, and minimised disruption to trade flows.
4. Implementation of a unique Trader Identification Number (TIN): making it easier and more effective for Trusted Traders to be recognised by MRA partners—reducing red tape and improving the efficiency of the border clearance process. This requires standardisation of numbers globally and acceptance of the TIN by the systems used by MRA partners.
5. An even lighter touch at the border: providing faster border clearance for Trusted Traders in recognition of the lower risk that they present at the border. This will enable the Department and ABF to have a greater focus on areas of greater or unknown risks.
There has also been improvements to the application process, reducing red tape and improving accreditation time frames with most businesses able to be accredited with access to the benefits within 60 days of applying.
The new benefits and improved application process complement the existing benefits already in place for Trusted Traders, including a dedicated ABF account manager, a ‘seat at the table’—providing an opportunity to help shape the program and the associated benefits, priority trade services, streamlined access to the Temporary Skilled Shortage (TSS) visa, streamlined access to the APEC Business Travel Card, Consolidated Cargo Clearance and fee-free monthly reporting.
Trusted Traders can also benefit from the growing number of MRAs that provide priority treatment at the border—estimated to provide industry with benefits of more than $175 million over the next 10 years. There are now six MRAs in place with New Zealand, the People’s Republic of China, the Republic of Korea, Canada, Hong Kong and Singapore. Preparations for a MRA with the United States of America, Japan and Thailand among other partner countries are underway.
Trusted Traders are recognised worldwide as being Authorised Economic Operator (AEO) compliant—providing a globally recognised mark of trust for their security and trade practices. Trusted Traders have reported that this provides a competitive advantage, attracting new business and opportunities.
To find out more about Australian Trusted Trader or start an application go to www.abf.gov.au/trustedtrader