The investigation will look into whether Australian producers have dumped ‘wines in containers holding 2 litres or less’ into the Chinese market below fair market value during the time period between Jan 1st 2019 to Dec 31st 2019.

So what is Anti-Dumping

Dumping 101 – sounds simple but it isn’t

Australia’s Anti-dumping and countervailing system

FAS should only be used for sea and inland waterway transport. Under the Incoterms® 2020 rules, FAS means the seller has fulfilled its obligation when the goods are placed alongside the ship. However, it is not recommended to use this rule if the buyer is not able to pay the costs related to the export of the goods.

The FAS Incoterms rule considers a delivery complete when the seller delivers the goods by placing them alongside the ship indicated by the buyer or at the point of loading/port (if any) or when purchasing already delivered goods.

In the case of FAS Incoterms, it is recommended to determine as clearly as possible the loading point at the named port of shipment where the goods are to be transferred from the quay or barge to the ship. This is because handling charges and the transport of goods from the quay or barge may vary depending on the port’s practice.

The risk or liability for the goods transfers from the seller to the buyer when the seller delivers the goods by placing them alongside the ship indicated by the buyer.

Quick overview

What are the seller’s obligations?

• Carrying out all the duties under the terms of delivery specified in the contract. This means delivery of the goods along with a commercial invoice in conformity with the contract of sale and other related documents.
• Delivering goods by placing them alongside the ship within the prior specified period and at the named port indicated by the buyer.
• Informing the buyer in advance of the delivery of the goods.
• Providing at his own expense a document confirming delivery of the goods to the buyer. If such proof is a transport document, the seller must assist the buyer, at his request, risk, and cost, in obtaining it.
• At the buyer request, risk and cost in obtaining any documents necessary for transit and import clearance formalities.
• Packaging and marking the goods.
• Operating according to all transport-related security requirements until delivery of the goods to the buyer.

What are the buyer’s obligations?

• Concluding the contract of carriage from the named port of shipment, except where the contract of carriage is made by the seller (at the buyer’s expense and risk).
• Assisting the seller, at his request, risk, and cost, in obtaining any documents necessary for the export clearance formalities.
• The buyer must notify the seller in advance of any safety requirements related to transport, ship name, loading point and the delivery date within the period agreed in the contract.

Incoterms 2020 FAS rules are used only and exclusively in maritime transport or inland waterway transport. The use of FAS is not recommended for container transport.

What are Incoterms® used for?

Incoterms® are primarily used for determining how the sale of equipment for delivery across international boundaries will be handled and who will pay for what in the transaction. They will not address the consequences of a breach of contract or exemptions of liability. Incoterms® relate to the terms between the exporter and importer.

Incoterms® cover the following broad points:

• Delivery – Incoterms® 2020 specify when seller delivers to buyer:
• Risk – Incoterms® 2020 specify when risk transfers from seller to buyer. Risk passes from seller to buyer when seller has fulfilled his obligation to deliver the goods
• Costs – Responsibility of costs passes from seller to buyer at a point up to which the seller is obliged to pay transport (and insurance) cost

If you missed our previous Incoterms® 2020 articles, you can catch on them here:

1. What Are the Incoterms® Rules?
2. EXW–Ex Works (Named Place) Incoterms® Rule
3. FCA–Free Carrier (Named Place) Incoterms® Rule
4. FOB – Free on Board (Named Place) Incoterms® Rule

Participating in the 2019 Australia Awards Women Trading Globally program delivered in Melbourne and Sydney motivated Taslima to implement fair trade principles in her business and to stay resilient in a time of crisis. As a result of COVID-19, Taslima is focusing on how to efficiently manufacture more standardised face masks for the local and global market. Taslima shares her inspiring story in the Q&A below:

Q&A with Taslima Miji, Managing Director, Leatherina Pvt Ltd

What led to you establishing your company, and what drove you to commence international expansion?

I started my business Leatherina after a huge loss in my previous business where I was selling IT hardware. In a business, all I wanted was making a significant contribution to my country’s economy besides making my own living. The journey aimed at finding a better living soon became my centre of all passion and dream. One of my major focuses is uplifting the manufacturing standard of leather bags in Bangladesh for the global market in a sustainable manner. My business model also includes social inclusion, fair trade, ethical business and reducing environmental harm in fashion goods manufacturing which is my socio-political commitment and I found my business a great field to work on these.

I chose to work in leather bags industry as I wanted to work with natural materials and thus I came into leather goods business. Typically leather industry in Bangladesh is a heavily male-dominated business. Naming my venture Leatherina was a candid reaction to doing the business from a woman’s perspective.

I named my leather bag brand “Gootipa” when I was looking for a name which is genuinely me and reflects what’s going in my own world. During my early days when my journey began, I thought Gootipa, which means baby steps in my language, is the name which talks about starting of my rocky journey in which I was none but a baby who wants to learn walking soon.

I was already into the export market with my leather bags before I participated the WTG program. I have been exporting to Netherlands since 2017 and at this moment I am working on expanding to the Australian and American market. After WTG, I am designing my business plan to expand in global market in a more constructive way.

What did you learn from participating in the Women Trading Globally program?

Among them: I learnt that export plan prior to approaching a new market is very important. I also learnt this is important to do enough research about the country’s trade policy, rules and regulation, preferential agreements, standard and persona of buyer and brand etc. The most important takeaway was the experiences to visit some Australian companies.

The program gave me the opportunity to meet a handful of successful South Asian women entrepreneurs who are showing the way to many in their respective societies. Sharing and learning with them had a powerful role in my understanding of global business. The course was designed well to fulfil our knowledge gap in understanding of global business. I believe knowledge is power and the training gave us an appropriate environment to enhance our business knowledge and thus empowered us. I believe I am more confident now than before dealing with my day to day business challenges.

The training gave me huge confidence besides learning technical issues. The sessions on digital media and branding classes have had an immense impact on my own brand building. I have used them in my building of brand identity and creating digital marketing policy. My local business has made a significant success in growth thanks to application in branding.

How have you been impacted by COVID-19 and how have you responded?

Like the rest of the world, my business has also been hit hard by the sudden pandemic. For a moment we felt we were suddenly nowhere and no hope in front of me when the home lockdown started without indication when it will stop. This situation left me hopeless with no work and no income with my team of 50 people. I started to look for a solution to it and I noticed the huge demand for cloth facemask as WHO was emphasizing on using a facemask in public settings to reduce pressure on medical masks supply chain. As a bag manufacturing company, I found my technical skill workable enough for making cloth masks to engage in crisis mitigation and at the same time to create a new business opportunity for me.

As the crisis is huge and there is a massive gap in the supply chain of facemasks in compared to the soaring demand I also intended sharing my knowledge of making masks with many other fellow entrepreneurs who became jobless due to COVID-19 pandemic. At this moment I am focusing on how to make more efficient facemasks, how to standardize them by testing to make them more effective and acceptable to users in the local and global market. I have already received many RFQs for facemask supply from overseas market. My latest development is deaf-care transparent facemasks, a special mask for people to communicate with hearing-impaired people.

Read more about Taslima’s response to COVID-19 here.

What inspires you?

I always get inspired by people around me in my society living in the ocean of crises, both man-made and natural, the courage and ability to thrive and smile amidst the challenges. Their struggle and staying resilient to troubles make me think, life is an endless struggle and I must do my part. A human’s opportunity lies within them and no one creates it unless we take an initiative. I have always found my spark in obstacles and I have discovered my sparks as early as my girlhood when I encountered gender discrimination and stereotype myself in my family and society. I thought I must do my part which would contribute to changing the system.

Deputy Premier and Minister for Regional NSW, Industry and Trade John Barilaro yesterday launched the NSW Government’s $12 million Going Global Package which includes grants of up to $10,000 for eligible businesses through the Export Assistance Grant scheme.

“Helping home-grown businesses succeed in the global marketplace is more important than ever before and here in NSW we have some of the best produce in the world,” Mr Barilaro said.

“That is why the NSW Government is coordinating export assistance across a range of initiatives including market tailored workshops, business matching and exporter grants of up to $10,000.

“We are promoting NSW businesses globally, just like we promote our fantastic regional products state-wide through our Buy Regional campaign.

“Our Export Assistance Grants, together with intensive, direct assistance through the Going Global program will complement existing support and advice services to forge new business connections and sales offshore.”

The Going Global Package includes:

• A $1.8 million Going Global program which will provide export coaching, networking and in-market assistance for export-ready firms. The initiative includes 15 tailored programs covering nine markets and ten sectors.
• A $10 million Export Assistance Grant scheme reimbursing 50 per cent of eligible expenses up to a maximum of $10,000 per eligible business
• Connections to international consumers via the Buy Regional Goes Global initiative
• Online webinars to help businesses upskill
• Ongoing support through the NSW Government’s network of trade advisors in regional locations and Sydney, and its international trade and investment offices around the world
• Access to information on the Global NSW website
• Other support, tools and resources available online

Treasurer Dominic Perrottet said trade would be vital to restoring growth after COVID-19, with exports making up 16 per cent of the State economy before the global pandemic.
“We know our exporters have faced big hurdles in recent months, especially in regional areas also affected by bushfires and drought,” Mr Perrottet said.

“Applications for the Going Global program can be submitted now, and the Export Assistance Grants application will be available soon. I urge small and medium-sized firms in regional areas and across NSW to apply.”

Graham Gilmore from Black Springs-based agribusiness TattyKeel, said exporting was a great way for regional businesses to stay competitive and build resilience, despite the challenges of COVID-19.

“We’re a family farm that’s changing the boundaries. We’re doing R&D and we’re actually creating a new product that’s got some pretty unique eating qualities,” Mr Gilmore said.

“Developing markets overseas is an important part of our plan to support that work.”

TattyKeel’s innovative new brand Margra Lamb is among the enterprises profiled in Buy Regional.

In addition to the initiatives announced today, export advisors remain available to assist the business in regional locations throughout the State and, under the Global NSW strategy, the Government is expanding its network of trade and investment offices around the world from 11 to 21. The Buy Regional platform will continue to promote regional businesses and exporters.

More information is available at NSW Government webpage.

The government’s closure of Australia’s borders in March to stem the spread of COVID-19 has significantly reduced air freight capacity because around 80 per cent of air cargo is traditionally transported to and from Australia by passenger aircraft.

Export Council of Australia chair Dianne Tipping said a $350 million federal government scheme to subsidise air freight had been a “godsend” that ensured local agricultural and seafood products could get to lucrative overseas markets, especially in Asia.

However, with the scheme’s announced funding set to run out by the end of the year, she said further support would be needed to keep export channels open.

“I don’t see that January is going to be back to normal at all,” Ms Tipping said. “We need to consider that this will go on longer until flights are back to the normal sense of regularity.”

Data released by the Department of Infrastructure and Transport last week show that inbound and outbound air freight fell to 26,5151 tonnes in the four months from March to the end of June, a fall of 26 per cent from the same period last year and a 30 per cent drop from 2018.

Total exports of fresh and processed foods grew by 5 per cent in the year to June 30, according to the Department of Foreign Affairs and Trade.

Trade minister Simon Birmingham topped up the program’s initial $110 million funding with $242 million at the start of July, which he said would extend to program until the end of 2020. The program subsidises airlines to use empty passenger aircraft for otherwise unviable cargo-only flights and has so far supported 62,000 tonnes of exports to 63 destinations worth $1.1 billion.

Air cargo represents less than 1 per cent of Australia’s imports and exports by volume but accounts for 21 per cent by value, worth $43 billion a year, according to a 2019 report by Infrastructure Partnerships Australia and BIS Oxford Economics.

Singapore Airlines, the biggest international air freight operator in Australia both before and since the pandemic, last week flew six dedicated freighter aircraft return flights to Australia, along with 26 flights using passenger jets carrying only cargo and 10 flights carrying both passengers and cargo.

Singapore Airlines’ general manager for cargo in Australia and New Zealand, Nicholas Kok, said many of its cargo flights would not be viable without the IFAM program.

“The very sudden removal of more than 80 per cent of our cargo capacity in March this year placed a huge strain on the cargo industry,” he said.

“We know in normal times, cargo operations make up a small percentage of our overall revenue. Now, it is the only meaningful source of revenue for the business.”

Ms Tipping said that exporters of non-perishable or non-urgent exports had largely been able to shift to sea freight.  Airlines are plotting a long recovery for passenger travel from the COVID-19 crisis. Qantas boss Alan Joyce said in June that he did not expect to be doing any meaningful flying within the next 12 months.

Some airlines have started to return capacity to Australia however, with Qatar Airways resuming twice-weekly flights from Adelaide to Doha on Sunday.

This article was first published in Sydney Morning Herald on 17 August 2020

News and articles:

• China Finalized the Long-Awaited Cosmetic Supervision and Administration Regulation
• Finalization of CSAR: A Milestone on Road to Modernization of China’s Cosmetic Sector
• Key Points in China Cosmetic Supervision and Administration Regulation (CSAR)
• Will China Remove Mandatory Animal Testing for Imported General Cosmetics

English Translations:

• Cosmetic Supervision and Administration Regulation 2020
• China Technical Guidelines for Cosmetic Safety Assessment (Draft for Comments)

Webinars:

• Interpretation of China’s Cosmetic Supervision and Administration Regulation (Final Version)

Featured page:

This information has been supplied by ChemLinked, Reach24h Consulting Group.

What are Incoterms used for?

Incoterms® are primarily used for determining how the sale of equipment for delivery across international boundaries will be handled and who will pay for what in the transaction. They will not address the consequences of a breach of contract or exemptions of liability. Incoterms® relate to the terms between the exporter and importer.

Incoterms® cover the following broad points:

• Delivery – Incoterms® 2020 specify when seller delivers to buyer:
• Risk – Incoterms® 2020 specify when risk transfers from seller to buyer. Risk passes from seller to buyer when seller has fulfilled his obligation to deliver the goods
• Costs – Responsibility of costs passes from seller to buyer at a point up to which the seller is obliged to pay transport (and insurance) costs

Our third Incoterm® is

• FOB – Free on Board (Named Place)

FOB should only be used for sea and inland waterway transport.

Under the Incoterms® 2020 rules, FOB means the seller has fulfilled its obligation when the goods are loaded on the vessel nominated by the buyer at the named port of shipment. With FOB, the seller is responsible for loading the goods on the vessel, while the buyer is responsible for everything else necessary to get the goods to the final destination.

The risk or liability for the goods transfers from the seller to the buyer when the goods are on board the vessel, and the buyer bears costs from that point forward.

Because the seller is responsible for the goods until they are loaded on the vessel, they need to ensure the goods arrive at the vessel. Since most goods are now delivered to container yards rather than right to a vessel, and if FOB is the agreed upon term, both buyer and seller must agree upon exactly what “loaded on board” means in the sales contract, because it can vary for different types of vessels and commodities.

Quick overview

Seller delivers when goods placed on board the vessel nominated by the buyer at named port of shipment:

• Cleared for export by seller
• Only to be used for sea transport
• If commercial practice or at buyer’s request, seller may (but is not required to) arrange transport at buyer’s cost and risk

Incoterms® 2020 FOB rules are used only and exclusively in maritime transport or inland waterway transport. Use of FOB is not recommended for container transport.

Missed the first three articles? Catch up on them here:

1. What Are the Incoterms® Rules?
2. EXW–Ex Works (Named Place) Incoterms® Rule
3. FCA–Free Carrier (Named Place) Incoterms® Rule