Transcript JF Hillebrand How the FTA Effects Beverage Shipping

How the FTA Effects Beverage Shipping
6 Nov 2012
JF Hillebrand: Global wine specialist freight forwarding company
China
Overview
•
New Zealand-China Free Trade Agreement (FTA)
o
o
o
o
o
•
ASEAN-Australia-New Zealand Free Trade Area (AANZFTA )
o
o
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Duty
How the FTA impacts shipping
How the FTA impacts documentation
Under the FTA, how you cope with shipping uncertainties
How the FTA impacts on supply chain arrangement
AANZFTA Duty
Singapore hub
How can you cope with FTA in terms of shipping
New Zealand-China FTA: Duty
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
Chile
New Zealand
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%
Will China Customs automatically grant preferential
duty for NZ wine?
Import Clearance Procedure (example only)
The importer/clearance broker needs to apply for preferential duty by
providing all necessary paperwork.
How the FTA impacts beverage shipping
• Full Container Load (FCL)
o Direct vessel
o Indirect vessel, transshipment port
o Non-Manipulation Certificate
• Less than Container Load (LCL)
o Transshipment port
o Non-Manipulation Certificate
o 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?
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.
Uncertainty is an inherent feature of the shipping industry. The challenge is how you
handle this uncertainty.
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?
AANZFTA
ASEAN-Australia-New Zealand Free Trade Area
AANZFTA-DUTY
Singapore Hub
Singapore, gateway to South-east Asia?
How you can cope with the FTA in terms of shipping?
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.