The November 2018 HIN event, attended by 12 industry organisations, focussed on horticultural exports particularly with respect to new export security regulations.

Presenters - details & topics

Dominic JenkinAustralian Horticultural Exporters' and Importers' Association (AHEIA)Regulatory and non-tariff measures impacting on trade in fresh produce (incl. new export security regulations)
Jennie MitchellAustralian Trusted Trader Program, Australian Border ForceWhat is the Trusted Trader program & Known Consignor scheme?
Amelia FyfieldAgriculture VictoriaUpdate on export projects from AV Agriculture Policy
Matt HillamKN Fresh Chain (Kuehne + Nagel)Visit to KN Fresh Chain

Key points

1. New export security regulations
  • Air cargo security requirements were announced in March 2018 by the Department of Home Affairs but there is low awareness within horticultural industries due to patchy communications, even though it will commence 1 March 2019
  • Two years ago, the Australian Government agreed to introduce specific measures for air cargo on passenger flight for the US on the back of the global security environment (one bomb threat since 1930s – Emirates plane out of Melbourne with possible bomb parts on it). This has seen a few delays due to input from industry, costs, communications etc.  The impact of regulation statement has been drawn up, including the option for all air cargo out of the country, as security of air cargo on passenger planes is a lot less than for luggage. Cyber and Infrastructure Security Centre
  • Screening requirements for air cargo to the United States (US) have changed. Requirements have been imposed on airlines by the US Government. The Australian Government is working with Australian businesses to help them comply with the US requirements, ensure readiness and reduce red tape while enabling a smooth transition.
  • These changes mean that all air cargo being transported to the US must either be examined at piece level (box, carton, pallet or another deconsolidated form of cargo) or originate from a Known Consignor.
  • Australian-based exporters, freight forwarders and airlines need to adopt new security measures to comply with the new US requirements.
  • Exporters have two options for meeting these requirements:
    1. Using an Australian Government-approved freight agent (see RACA scheme) who can examine your US-bound air cargo; or
    2. Being approved as a Known Consignor, so you can secure air cargo originating from your business to minimise potential delays and costs. To apply and become a Known Consignor, businesses need to complete an expression of interest.

Australian Horticulture Trade

2. Known consignor scheme
  • Businesses that use international best-practice security measures to prevent unlawful acts against aviation can apply to join the Known consignor scheme.
  • A known consignor is responsible for securing air cargo that originates from their business until the air cargo is provided to another regulated business.
  • The Known consignor scheme offers exporters an alternative way to meet US air cargo security requirements, rather than arranging for an approved business to conduct enhanced air cargo examination on their behalf.
  • Known consignors need to meet and maintain a high level of security to ensure cargo is safe to load on to an aircraft.
3. Trusted Trader Program
  • Australian Trusted Trader reduces red tape for Trusted Traders at the border, improves certainty in export markets, and expedites the flow of their cargo in and out of Australia, which means faster access to market.
  • Administered by Home Affairs with the Australian Border Force, Trusted Trader is free and accredits Australian businesses with compliant trade practices and a secure supply chain. Once accredited, businesses have access to a growing range of benefits that simplify their customs processes.
  • Eligible businesses are importers, exporters and service providers; active in the international supply chain for 2 years; financially solvent; and have an Australian Business Number.
  • 77 other countries have similar trusted trader programs (Australia eventually hopes to have mutual recognition arrangements (MRA) with all of them).
  • Accredited businesses can use the ATT logo on packaging & attend the quarterly Trusted Trader forums.

Australian Trusted Trader

4. AV Ag Policy export projects
  • New 3-year Growing Food & Fibre Markets Program
  • Aim to grow export trade by maintaining & enhancing Victoria's reputation as an exporter of high quality, premium food & fibre products
  • More detailed information available in the new year
5. KN Fresh Chain
  • Air & sea perishables freight forwarder and provider of innovative and fully integrated supply chain solutions
  • A multinational export/import business
  • Implementing new x-ray/metal detecting equipment for export screening requirements of cargo
  • Large cooling and fumigation facilities

Kuehne & Nagel  international freight forwarder

Industry feedback

"Will promote trusted trader & known consignor programs to industry; great VIC Govt programs – collaborative approach to partnering with industry to deliver great projects & outcomes; terrific forum – discussions always interesting"

"Important that state-based programs link with a national approach"

"Trusted trader was new to me; Dom was good and a wealth of info; DEDJTR update helpful"

"Complexity of exporting horticulture product from Australia and the challenges that are involved"

"The level of security for air transport was so low prior to now. I thought that the same precautions would have been applied for cargo as for passengers"

Industry next possible steps

"Need to work to align our own traceability with what other industries are doing so as to better improve our systems"

"Promote trusted trader & known consignor programs to industry"

"Contact speakers to present at grower workshop"