how the fta effects beverage shipping 6 nov 2012
TRANSCRIPT
Overview
• New Zealand-China Free Trade Agreement (FTA) o Dutyo How the FTA impacts shippingo How the FTA impacts documentationo Under the FTA, how you cope with shipping uncertaintieso How the FTA impacts on supply chain arrangement
• ASEAN-Australia-New Zealand Free Trade Area (AANZFTA )o AANZFTA Dutyo Singapore hub
• How can you cope with FTA in terms of shipping
New Zealand-China FTA: Duty Calculation
Standard DUTY and TAX calculation: Duty: CIF X 14%
Consumption: (CIF + Duty) x 10%
------------------------- = (CIF + Duty)/9
(1 - 10%)
VAT: (CIF + Duty+ Consumption) x17%
Total: CIF X 48.2%
Standard New Zealand Chile
2012 2013 2014 2015
Duty 14% 0% 4.20% 2.80% 1.40% 0%
VAT(Value Added Tax) 17% 17% 17% 17% 17% 17%
Consumption 10% 10% 10% 10% 10% 10%
CIFX48.2% CIF X30% CIFX35.46% CIFX33.64% CIFX31.82% CIF X30%
The importer/clearance broker needs to apply for preferential duty by providing all necessary paperwork.
Import Clearance Procedure (example only)
How the FTA impacts beverage shipping
• Full Container Load (FCL)o Direct vesselo Indirect vessel, transshipment porto Non-Manipulation Certificate
• Less than Container Load (LCL)o Transshipment porto Non-Manipulation Certificateo Where the import clearance needs to be done
How the FTA impacts documentation
Case study:
Importer said to winery:“If you can’t get the docs right first time, we will stop buying product from you.”
Don’t treat it as one country. Documentation requirements can vary from port to port and also from agent to agent.
Under the FTA, how you cope with shipping uncertainties?
Uncertainty is an inherent feature of the shipping industry. The challenge is how you handle this uncertainty.
Case Study:We booked a direct vessel to Ningbo, but the shipping line changed schedules as the vessel was phasing out and containers got transshipped over Hong Kong.
How the FTA impacts on supply chain arrangement
Hong Kong Wine Hub
Hong Kong, gateway storage and distribution facility to cater to the fast-growing Greater China wine market?
Talk to an experienced freight forwarder who knows the requirements of the FTA, and can understand how shipping uncertainties impact on the FTA application. This will make your trade with China a less daunting task.
How you can cope with the FTA in terms of shipping?