customs clearance - cmr

 

During 2004, EES Shipping Pty Ltd acquired full licensing to operate Customs Clearance Operations. This enables EES Shipping Pty Ltd to offer the following in-house services to our valued clients:

CMR in Detail

What is it & How Does it Work? 

Australian Customs is modernising the way businesses report the movement of goods across Australia's borders. These changes, a result of the Customs Cargo Management Re-engineering (CMR) project, have involved a major review of Customs practices. The CMR project includes changes to Customs IT systems and legislation.

 

Customs new IT system, the Integrated Cargo System (ICS) will replace existing reporting and processing procedures with one integrated IT system. The ICS will significantly enhance Customs risk management assessment at the border and assist industry track cargo movements more efficiently. The ICS will be phased in during 2004-5 to assist industry through the transition from the old to the new system.

 

Exporting and importing businesses, cargo handlers, cargo carriers and service providers will need to introduce new procedures and update their existing IT systems to comply with Customs new requirements.

 

Customs export entry and reporting system, EXIT, is no longer available. All export reporting must be completed through the Integrated Cargo System (ICS). Training and information sessions for the import component of ICS have been underway for a short time. ICS is due to be phased in mid 2005.

 

If businesses directly involved in the reporting of exports and imports have not updated their internal systems this may delay the movement of goods and result in additional costs.

 

EES Shipping Pty Ltd have taken the initiative, and have already moved to upgrade our systems and procedures. Whilst this has been at some cost, we see it as manditory to be ahead of the game. Meaning that the transition period will be smooth and pain free for both us and our clients.

Our staff have attended training seminars and are well versed on the new customs requirements, so you can rest assured that you will be receiving the high service levels that you have come to expect from EES Shipping Pty Ltd.

 

A key feature of the ICS is its improved security. Users and transactions will be protected by public key infrastructure (PKI). This involves the use of digital signature certificates, which are a proven way of providing confidentiality, authentication, non-repudiation and message integrity over open networks such as the Internet. All transactions will also be encrypted so that the data cannot be read by anyone other than the intended recipient. This technology requires individuals and businesses wishing to communicate electronically with Customs to purchase a digital certificate from a Customs approved Certification authority.

 

The implementation of CMR's major legislative changes coupled with the introduction of new technologies, such as the ICS, provide for the largest change in Customs in over 100 years.

 

Imports

This phase of CMR will replace COMPILE, ACA and SCA with the ICS functionality to handle import cargo reporting and import declarations. Clients would be able to use EDI messaging or the Customs Interactive (Internet-based access to the ICS) to comply with the requirements of the Customs Act. The Customs Interactive would also provide a 'diagnostic facility' to view the status of import transactions.

 

Clients will require PKI to communicate electronically with Customs to report import cargo and lodge import declarations. Legislation will enforce strict new time periods for when cargo needs to be reported. Sea Cargo will need to be lodged no later than 48 hours prior to the vessels arrival, and Air Cargo needs to be lodged no later than 2 hours before the flight touches down.

 

This phase will introduce the IT support for the import arrangements of the Accredited Client Program.

 

The relevant provisions of the trade modernisation legislation relating to imports will commence at this phase.

 

The imports phase is scheduled to commence in June 2004.

 

Exports

This phase of CMR will replace EXIT with the ICS functionality to handle export cargo reporting and export declarations. Clients will be able to use EDI messaging or the Customs Interactive (Internet-based access to the ICS) to comply with the requirements of the Customs Act. The Customs Interactive will also provide a 'diagnostic facility' to view the status of export transactions.

 

Clients will require PKI to communicate electronically with Customs to report export cargo and lodge export declarations.

 

This phase will introduce the IT support for the export arrangements of the Accredited Client Program.

 

The relevant provisions of the trade modernisation legislation relating to exports will commence at this time.

 

Penalties

Under CMR regulations, any errors or omissions to Sea/Air Cargo and ECN's will cause the issue of infringement notices. Depending on the severity of the error or mistiming of the lodgement fines will be issued accordingly. In order to avoid such penalties we have taken on the following procedures:

 

Import Penalties

The consignee is responsible for insuring that all information provided is correct and in a timely manner. Whilst our agents do provide us with information on the shipment, if any amendments are to be made EES Shipping Pty Ltd must be notified in writing 48 hours prior to the vessels arrival and 2 hours before the planes landing. If amendments need to be made after these time periods this will only be done on the proviso that the consignee issues us with signed written confirmation that they take responsibility for any penalties that may be incurred

 

Export Penalties

EES Shipping Pty Ltd will therefore require Commercial or Proforma Invoices from shippers before an ECN can be provided. Invoices must be faxed at least 48 hours prior to container / cargo being sent into wharf / depot. Under no circumstances will Dummy ECN's be provided. No Invoice no ECN.

 

We will require the following details to be included on all Commercial or Proforma Invoices:

 

• - Owners Name and ABN
• - Consignee Name (i.e. the final customer)
• - Country of Destination (i.e. the final destination)
• - Total FOB Value (i.e. the total costs to the vessel - excluding freight. Must have FOB value of goods)
• - AHECC (i.e. the eight digit classification code for the product/s being shipped)
• - Origin Code (i.e. state the goods were made in or if they were made in a foreign country)
• - Net quantity (i.e. the required quantity of the goods as per the AHECC)
• - Nett and Gross Weight of Goods
• - Permit number (if and where required) 
  
  

If a Proforma Invoice is given for an ECN application and there are changes made to final invoice and loading (i.e. change in number of packages, change in weights etc), then an amended invoice must be forwarded to EES Shipping Pty Ltd who will make the necessary amendments after the initial ECN has been lodged with Australian Customs.