Weekly News Highlights & Activities Update October 20

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1 Weekly News Highlights & Activities Update October 20 AFIF - Not for Profit, by the Industry for the Industry. OTS Aircargo Security Changes from 1 November 2016 Free Information Sessions Perth Added The AFIF/OTS/Smiths Detection Aircargo Security Information Sessions continued in Brisbane and Sydney this week, with a great response from the industry. AFIF is pleased to announce an added date in Perth on Thursday 27 October. The sessions provide an update of the changes to the Air Cargo Security regulations in the Aviation Transport Security Amendments (Cargo) Regulation 2016 which is about to be passed into law from 1 November 2016 and the implications for business operations with the US TSA requirements for mandatory 100% piece-level screening commencing from 1 July Particularly RACA EACE Notice screening equipment requirements and options on airport and off airport. RACA, AACA & Known Consignor Programs, primary and secondary screening equipment types, secure land transport of aircargo consignments to CTO, Security Declaration & ChoCS, new ASIC Card, transition arrangements to the new programs, forwarders obligations and responsibilities are all covered. Clint Rosewarne, Project Manager Enhanced Air Cargo Examination and Assistant Director, Air Cargo Security Regulatory Reform, Office of Transport Security, provides a comprehensive update on the new Air Cargo Security Regulations and Enhanced Air Cargo Examination program. Jordan Thrupp, Director Sales, Australia & NZ, Smiths Detection provides an overview and information on the specific the types of screening equipment available to RACA EACE Notice providers, for those considering implementing screening equipment. Date Time City Location Comments Friday 21 October Tuesday 25 October 09:00-12:00 (noon) 13:00-16:00 Sydney Pullman Hotel Sydney Airport 191 O Riordan Street Mascot Melbourne Park Royal Hotel Melbourne Airport Arrival Tullamarine Drive Morning Tea, and Tea & Coffee provided Afternoon Tea, and Tea & Coffee provided Thursday 27 October 09: (noon) Perth Ascot Quays Hotel 150 Great Eastern Hwy Ascot Morning Tea, and Tea & Coffee provided

2 PLEASE NOTE: PERTH SESSION IS SUBJECT TO SUFFICIENT NUMBERS REGISTERING There are a few places remaining at the Sydney and Melbourne sessions, be quick to reserve yours. The sessions are Free of Charge. To secure your place at one of the sessions simply afif@afif.asn.au with the following information. Session City: Session Date: Name/s of Attendee: Position: Company Name: Address: Phone Number: Further information Contact Stuart McFarlane - AFIF (02) Stuart@afif.asn.au DIBP-ABF Goods Compliance Update October 2016 Welcome to the October 2016 edition of the Goods Compliance Update. This edition is significant as it marks a year since the Department of Immigration and Border Protection (the Department), the Australian Border Force (ABF) and industry to came together to openly discuss current issues in the trade and goods environment. One measure to assist with resolving issues has been the reinstatement of the Goods Compliance Update. I want to take this opportunity to remind everyone of their responsibility to not import or export prohibited items. The importation and exportation of prohibited goods is a key area of concern for the ABF. If you provide information to us directly or indirectly in the course of importing or exporting goods, you are responsible for the accuracy of that information. We advise you obtain adequate assurances and supporting information prior to making a declaration to us. In this edition we remind you of our compliance areas of focus for As communicated in previous editions of the Goods Compliance Update, we are committed to working with industry to identify and address compliance issues and to promote voluntary compliance. In 2016, we have been increasing our collaboration with industry to achieve improved compliance with requirements for cargo reporting, undervaluation, Tariff Concession Orders and Self-Assessed Clearance declarations. We are now incorporating the use of Treatment Code 744 (administered under the Enhanced Project By-Law Scheme (EPBS)) into our compliance areas of focus. I encourage you to familiarise yourself with your legislative obligations in these areas and to make use of voluntary disclosure provisions where relevant. We commit to continuing to communicate to you our compliance areas of focus and expectations. The Trade and Goods Compliance Advisory Group met again in September. This focus of the meeting was for the Department, ABF and industry to discuss compliance around the China and Australia Free Trade Agreement, asbestos, licensed premises and our overall approach to compliance. The minutes of this meeting will be made available on our website once endorsed. (AFIF is a member of TGCAG) As always, we welcome your feedback regarding the content of the Goods Compliance Update - October 2016.pdf at goodscompliance@border.gov.au Erin Dale I Commander I Customs Compliance I Australian Border Force

3 DIBP-ABF NSW Trade Facilitation Forum. Oct 20 - Takeaways The Trade Facilitation Forum with NSW ABF Regional Command was held in Sydney today. Some of the key takeaways Depots and Warehouses Instances of Cargo Delivered Without Authority has improved (see results in Goods Compliance Update October 2016, above) ABF continues to educate warehouse and depot operators on their obligations. Targeting: cargo held in bonds, where cargo is stored, cargo inspection facilities including examination tables and accessibility, updating bonded area site plans, compliance - cargo delivered without authority, withdrawal of underbond and re-reported cargo, access to bonded areas. Fit and Proper persons. Renewals of Licences: ABF will be checking correct addressees of Licence Renewals, to ensure the correct contact receives the documents. Cargo Examination appointments: ABF will be setting start and finish times to ensure officers time and appointments are maximised. Organised Crime in the Supply Chain The disbanding of Polaris Taskforce has led to ABF now taking the lead in targeting organised crime in the supply chain ABF will involve with other agencies in joint taskforces targeting specific organised crime activities Depots, Warehouses and Licenced Customs Brokers will continue to be monitored in this process ABF congratulated industry in their assistance with providing key information which led to major busts recently. ABF continues to seek industry s assistance in reporting suspicious behaviour of activity via Border Watch Hotline Australian Trusted Trader 413 Expressions of Interest have been submitted since July are being progressed currently 5 ATT - Fully Accredited companies 15 ATT - Interim Accreditation ongoing ABF holding SAQ Self Assessed Questionnaire Readiness Workshops to assist applicants through the process, which has increased processing efficiency. Next Benefit to flow to ATT program is the Differentiated Examination Benefit this will mean ATT s will have prioritised examinations. Asbestos Imports There is a lot of ABF Compliance activity in the area of asbestos importation monitoring. The list of product categories has expanded dramatically to over 1000 product profiles over 88 tariff items. There was a concern raised by industry concerning the lead-time for ABF responding to an Import Declaration lodged Redline. It has taken over 5 days to respond and issue the Query Memo and then arrange an inspection with the Health Office from NATA. All of which amounts to significant container storage and detention charges exposure. It was noted that this week there has been a noticeable improvement in ABF responding and processing these asbestos inspection requirements. ABF is responding as quickly as possible and Regional Commander, Tim Fitzgerald committed to allocating more resources to this area if necessary. The meeting was positive, despite the challenges both ABF & Industry face, with agreement that the opportunity to meet and discuss these issues was valuable and will be continued.

4 SOLAS - VGM AMSA Auditing and Enforcement - Reminder The SOLAS verified gross mass (VGM) regulations have been in place for 3 months. AMSA has supported an IMO advice to signatory countries to allow a 3 month transition of VGM introduction, to enable all stakeholders to come to grips with the rules and set processes in place. The 3 months concluded at the end of September. AMSA has underway a Concentrated Inspection Campaign (CIC) on Cargo Securing, which involves AMSA Surveyors in each port auditing and checking the securing of cargo on vessels, including containers. In the course of these CIC checks on Cargo Securing, the surveyors have been tasked with checking Verified Gross Mass (VGM) of containers. These checks have provided a source of data on VGM errors which is being gathered and will be analysed and compliance action taken with shippers. AMSA will be stepping up their compliance activity in the months ahead. AFIF would be interested to hear from members, if you or your customer has been audited by AMSA. We will keep you informed of progress. DAWR Nominations for the 2017 Australian Biosecurity Awards Reminder The Australian Biosecurity Awards recognise individuals, groups and organisations that show a commitment to working collaboratively with the Department of Agriculture and Water Resources to support and promote Australia's biosecurity and the systems that uphold it. There are three award categories: Industry Government David Banks Biosecurity Lifetime Achievement Award Nominations close on Monday 31 October For more information, go to Australian Biosecurity Awards.

5 Brisbane West Wellcamp Airport Cathay Pacific Weekly Freighter Service Boeing 748-8F to Commence Flights from 22 November 2016 Almost one year to the day from its trial flight, Cathay Pacific Airways will commence freighter flights into Brisbane West Wellcamp Airport from 22 November 2016 with a weekly scheduled service, subject to government approval. It will be the only dedicated freighter service for this part of Queensland and will utilise a Boeing 747-8F. The decision comes after an extensive evaluation of the airport operations as well as demand for air freight services from businesses in southern Queensland. This included a successful trial flight on 23 November Nelson Chin, general manager, Cathay Pacific Airways Southwest Pacific said he was thrilled to see the realisation of the efforts of many to introduce this new service, and in particular the management of Brisbane West Wellcamp, Queensland and Federal governments, freight forwarders, local businesses and the Cathay Pacific Cargo teams in Australia and Hong Kong. We were enormously encouraged by the enthusiasm and support of everyone involved in this venture, the combination of primary producers in the Darling Downs area exporting beef, dairy and fresh produce, as well as significant mining and manufacturing businesses in southern Queensland makes it a truly dynamic part of Australia. China buys more of Australia s agricultural products than any other country and we are confident our new service will provide these businesses with a competitive advantage as the benefits of the new China-Australia Free Trade Agreement increase, he added. Cathay Pacific Airways operates two dedicated freighter flights a week from Australia to Hong Kong. The flight serving Brisbane West Wellcamp Airport will be CX022. It will operate on Tuesdays Sydney- Melbourne-Brisbane West Wellcamp, arriving into Queensland at 16:45 and departing at 18:15. The Boeing 747-8F has a cargo capacity of approximately 135,000 tonnes carrying 34 pallets on the main deck and 12 on the lower deck. It also features a cargo door in the nose of the aircraft which enables more efficient loading and unloading of cargo. The flight will arrive into Cathay Pacific Cargo Terminal in Hong Kong at 00:45 on Wednesdays enabling, for example, fresh produce to be delivered to the markets and restaurants in China later that morning as well as onto a vast number of destinations around the world. This facility is one of the biggest and most sophisticated cargo terminals in the world and it was built to set new standards in operational efficiency, environmental design and service levels. CX022 SYD-MEL 12:20 13:50 Tuesday MEL-WTB 15:35 16:45 WTB-HKG 18:15 00:45 +1 *All times tentative and subject to government approval For further information please contact: Gail D Arcy gail_d arcy@cathaypacific.com

6 INTERNATIONAL FIATA World Congress 2016 Dublin Young Australian Wins Global Award In an absolute first for Australia, a young Australian - Shanon Gould - has been recognised as the FIATA Young International Freight Forwarder of the Year. Her pathway to global glory commenced when Shanon was nominated by the CBFCA as its representative for the Asia-Pacific region where she was up against some highly skilled competition from within the Asia-Pacific area, especially the powerhouse logistics nation of Singapore. Shanon's very professional 6,000 words dissertation was highly regarded by the judges and enabled her to win the Asia-Pacific Regional Award which meant she was pitted against the very best-of-the-best from the other three Regions including the Americas, Europe and Africa/Middle East, to attain the global title. In a feat never before achieved previously by a candidate from Down Under, Shanon was awarded the title of Young International Freight Forwarder of The Year for 2016 in a glittering ceremony in Dublin, Ireland and in doing so has undoubtedly changed her life forever. As the winner of this prestigious global award, Shanon will take home the trophy but will also be entitled to a fully-funded trip to London to spend a week undertaking academic training in the offices of TT Club plus another week at an additional international destination where she will attain practical experience of that country's transport (multi-modal) infrastructure, with all travel and accommodation included in the prize. AFIF Chairman Paul Golland; AFIF CEO Brian Lovell and CBFCA CEO Steve Morris were present at the Award ceremony and congratulated Shanon on her well-deserved win. On behalf of industry, the CBFCA & AFIF congratulates Shanon Gould and we look forward to her contribution as one of our industry leaders of the future. Source: CBFCA with additional material from AFIF. Dublin's 2016 FIATA World Congress Successful On the occasion of FIATA's 90th birthday, FIATA held its 2016 World Congress in Dublin, Ireland. Hosted by the Irish International Freight Association (IIFA) working closely with FIATA, this congress presented a new format and welcomed an array of high level speakers to discuss the key topics of the industry, with a strong accent on innovation.

7 During the Congress FIATA and IATA signed the new air cargo cooperation agreement and likewise FIATA and OSJD signed a Memorandum. Other agreements at government level were prominently featured and attracted global and regional attention. The event also featured important networking opportunities for delegates and a great number of technology vendors in the exhibition hall. This newly introduced approach will be useful in turning the page toward Kuala Lumpur for the 2017 FIATA World Congress. Most Congress proceedings are already published on the FIATA website and many more documents and presentations will be published in the near future on: LH Cargo - DB Schenker Draw Positive Interim Result on their Climate Initiative Since signing the Carbon Reduction Agreement last year, both parties have managed to save 10,000 tons of carbon dioxide up- to- date. The program, which is part of a five year lasting strategic partnership between both players, continues in the coming years, reducing greenhouse gas emissions through combined efforts by an additional 10,000 tons until Lightweights like these Jettainer boxes reduce fuel burn - courtesy LHC This is a figure which has food for thought: roughly 40 percent of all direct and indirect greenhouse gas emissions set free by logistics giant DB Schenker results from the transport of air cargo. Way too much, thought the management. It's time to take action. As a leading logistics service provider, "we bear a particular responsibility when it comes to planning and implementing our emissions-intensive transports," emphasizes Dorothea Schoen, who is responsible for climate protection and CO2 controlling at the Deutsche Bahn company. Therefore, pacting with LH Cargo was a logical step for DB Schenker, since the freight carrier is at the forefront of the climate saving issue for some time now. This is confirmed by Bettina Jansen, LH Cargo's Head of Environmental Management when presenting various fields of activities that led to successive fuel savings and reduced CO2 emissions, lowering the carriage costs as well According to Bettina, her company's mixed freighter fleet only needs 1.89 litres of fuel on average to transport 100 kilograms over a distance of 100 kilometers. Mrs Jansen states: "We are putting in an enormous effort to continuously reduce our fleet's fuel consumption." She goes on to say: "In addition to this, we are using particularly lightweight containers, polishing even our turbine blades for gaining maximum operational efficiency and are constantly driving the digitization of air cargo documents together with our business partners further ahead." This way, the airline has become a benchmark for the air freight industry regarding environmental achievements. Initiatives, that are fully in line with DB Schenker's own objectives, as Dorothea Schoen remarks: "Leading air freight companies such as Lufthansa Cargo are playing a pivotal role in our improved environmental performance. The joint environmental steps agreed by DB Schenker and partner LH Cargo "are milestones as they allow us to incorporate sustainability aspects into business relationships," concludes Andrea. LH Cargo speaker Andreas Pauker told Cargo Forwarder Global that in addition to DB Schenker his company cooperates with Kuehne + Nagel, DHL and Hellmann Worldwide Logistics in environmental issues. Source: CargoForwarder Global

8 Transport & Logistics Sector Women s Leadership Scholarship Grants In 2015 & 2016, AFIF has promoted Women & Leadership Australia s national initiative to support the development of female leaders across the transport and logistics sectors. AFIF has received the following update announcement. Women & Leadership Australia has just launched a third program in our portfolio of women s leadership development programs. With this third program we now have an unprecedented line up of leadership programs specifically designed for women: Advanced Leadership Program Aimed at senior managers, directors and executive level women Executive Ready Aimed at mid-level managers and leaders looking to take the next step into an executive role Accelerated Leadership Performance Program Aimed at aspiring talent and women starting their journeys in managerial roles. We have secured scholarship funding for the Transport & Logistics sector across all three programs. To ensure as many women in the Transport & Logistics sector are aware of this funding opportunity, we are inviting respected associations such as Australian Federation of International Forwarders to share this information with your members. FUNDING GRANTS FOR WOMEN S LEADERSHIP DEVELOPMENT In 2016 Women & Leadership Australia is administering a national initiative to support the development of female leaders across the all industry sectors. From September 21 st 2016 the initiative will provide women with grants for leadership development. More specifically, grant applications are open for women at three levels. Click program link for details. The deadline for expressing your interest for this funding in your sector ends on December 15 th. 1. Senior management and executive level women leaders can apply for $8,000 partscholarships to undertake the Advanced Leadership Program 2. Mid-level female managers and leaders can apply for $4,000 part-scholarships to undertake the Executive Ready Program 3. Aspiring talent and emerging women managers can apply for $3,000 part-scholarships to undertake the Accelerated Leadership Performance Program. Expressions of Interest form or can be downloaded here. Should you wish to discuss the initiative in more detail please contact Ian Johnson at the office of the National Industry Scholarship Program, Women and Leadership Australia on or via ijohnson@wla.edu.au. EVENTS VALE Hart Krtschil - Industry Farewell Function Reminder Dear Industry Colleagues, Further to the tribute in last week s AFIF Weekly News, following the sad departure of industry icon and friend Hart Krtschil on Saturday 24 September, we are planning a gathering of industry and Govt. Biosecurity department colleagues to bid Hart a final farewell.

9 So if you have served with Hart on a committee, worked with him in any capacity, or just want to say goodbye in the company of your friends and colleagues, join us at the following venue for some finger food and drink: Location: South Sydney Graphic Arts Club, Coward St, Mascot, NSW 2020 Date: Time: Thursday November 3rd 4pm - 7pm For catering purposes, please afif@afif.asn.au with the following information: Name: Company: Tel / Mobile nbr: We look forward to 'Raising a Glass for Hart' on 3 November. AFIF Team Lloyds List Australia DCN 21 st Australian Shipping and Maritime Awards The 21 st Annual Australian Shipping & Maritime Industry Awards will take place on Wednesday 16 November at the Dockside Pavilion Darling Harbour Sydney. The 21st annual awards will again host the who s who of the industry for a night of excellent entertainment and networking. A champagne welcome will be followed by a sumptuous dinner and drinks, and presentation of the awards throughout the evening. Book a table or register single places at the awards Contact Joseph D Albora on or Joseph.DAlbora@informa.com.au Further Information SAFETY CARGO RESTRICTION ON ALL SAMSUNG GALAXY NOTE 7 MOBILE PHONES Qantas Freight are no longer accepting or transporting shipments of Samsung's Galaxy Note7 mobile phones across all Qantas Group aircraft, including the new replacement model.

10 Samsung have decided to stop manufacturing Note7s for the sake of consumer safety following on from three separate reported smoking/fire occurrences involving the newer model of the mobile phone. This restriction does not apply to Qantas Freight s cargo consignments of any other Samsung portable electronic devices. Thanks for your attention and understanding. Sincerely, Maryanne Galea Head of Freight Services 13 October 2016 New AFIF Lithium Batteries Training Course for Shippers and Forwarders AFIF has commenced a Lithium Batteries Training Course. Participant feedback has been positive and praised the course for providing a clear direction on the packing and shipping of lithium ion and lithium metal cells and batteries by air. Please check the AFIF Website for the full programme of upcoming course sessions in Sydney, Melbourne & Brisbane. Click here to make your booking The new course designed for Shippers of Lithium Ion and Lithium Metal Batteries. The new Shipping Lithium Batteries by Air Transport Course is a 1 day course giving Shippers of Lithium Ion and Lithium Metal Batteries the skills and knowledge to pack and ship lithium ion and lithium metals cells and batteries by air transport, in compliance with Australian Legislation and the IATA DG Regulations. Course Description Understand the basis and applicability of the IATA DGR Apply the states and operation variations Identify and classify the 9 hazard classes including provisions of lithium batteries Apply the applicable special provisions Apply the provisions for packing, marking and labelling of shipments containing lithium batteries Complete the Shipper s Declaration and any other accompanied documents related to the transport of lithium batteries Duration: 1 day (9.00am 4.00pm) Please note: This course is approved by CASA for Group F employees only - Shippers. Freight Forwarders can complete this course for further knowledge on the handling of lithium battery shipments, however are still required to attend the Dangerous Goods Acceptance (Air) course for full accreditation.

11 AFIF Expands Dangerous Goods Training to Perth, Adelaide, Darwin and Hobart AFIF has expanded Dangerous Goods training courses to Perth, Adelaide, Darwin and Hobart. To date, AFIF has provided Dangerous Goods by Air & IMDG Dangerous Goods by Sea training in Sydney, Melbourne and Brisbane. The addition of these cities provides AFIF members with national coverage and a regular program of DG Training courses. Dangerous Goods by Air Acceptance 3 days course IMDG Dangerous Goods by Sea Acceptance 2 days course AFIF Training Schedule for October/November (full schedule on AFIF Website) SYDNEY: 24 October Lithium Batteries 7 November Dangerous Goods Recertification Air 8-10 November Dangerous Goods Acceptance Air 17 November Claims Course 23 November Lithium Batteries 30 Nov - 1 Dec IMDG (Dangerous Goods by Sea) Full Acceptance MELBOURNE: 14 November Dangerous Goods Recertification Air November Dangerous Goods Acceptance Air November Import and Export Sea Freight Procedures 24 November Import Airfreight Procedures 30 November Claims Course BRISBANE: October Import and Export Sea Freight Procedures 8-9 November IMDG (Dangerous Goods by Sea) Full Acceptance 21 November Dangerous Goods Recertification Air November Dangerous Goods Acceptance Air Also refer to the scheduled dates for each course on the AFIF Website under the Training Tab. For training enquiries contact Juana Mulherin or Jodie Murray on or afif@afif.asn.au

12 IATA and OAG PUBLICATIONS 58th Edition of the IATA Dangerous Goods by Air Regulations 2017 and associated products available Place your Order Now 57th Edition will be out of date 31 December 2016 The 2017, 58 th Edition of the DGR and associated products are now available for pre-order! Expected delivery is end October/early November There are a large number of changes in the new edition of the IATA DGR Manual so make sure you order your new copy to reflect these changes. Click here to view the complete list of the significant changes and amendments to the 58 th Edition During the year further amendments and supplements may be issued. These will be posted on to our website as they become available To place your order now for the 2017 (58 th ) Edition of the IATA Dangerous Goods Regulations and all other current IATA Publications click on the link below: Your order will be sent as soon as the Publications become available and payment has been made. AFIF is the Official IATA and OAG Publications Distribution Agent for Australia and all publications can be ordered and purchased through dedicated pages on our Website. AFIF Model Standard Trading Conditions of Contract Updated for Current Regulatory Changes AFIF has received an overwhelmingly positive response following the release of the updated AFIF Model Standard Trading Conditions of Contract. AFIF Members can obtain their copy and the

13 accompanying User Guide as an included benefit of their AFIF Membership by contacting The updated model STCs cover modifications to a number of legal developments that impact the terms and effect of the AFIF STCs and in particular on the issues of: The law is extending unfair contract term protections to small business contracts. Compliance with the Chain of Responsibility (CoR) regime under the Heavy Vehicle National Law. The Verified Gross Mass requirements under the SOLAS amendments. A more balanced approach to the division of risk with a customer/contractor. The effectiveness of the consequential loss provisions giving recent case law developments. In addition to the updated Model STCs, there is a User Guide to explain the current proposed amendments and have regard to whether you are using the STCs in a customer relationship or with a contractor where different considerations might apply. Because our Members have different business models, customers and varied transactions, it is important to consider the comments in the User Guide and only adopt those aspects of the AFIF STCs that apply to your business and to do this in consultation with your legal advisers and insurers. The AFIF Model STC document has been revised in 2008, 2011 and 2013, with a major re-write undertaken in 2016 to incorporate these significant changes in relevant legislation. As your not-for-profit industry association, AFIF provides the Model Standard Trading Conditions as a core service to Members. Despite the considerable legal cost of this complete re-write of the Model Standard Trading Conditions and User Guide, AFIF Members can continue to access these documents for their use as an included benefit of their AFIF membership. To obtain a copy of Model Standard Trading Conditions and User Guide please afif@afif.asn.au Thanks for your continued involvement and support! AFIF Team