The federal government’s Australian Trusted Trader Program (TTP) launched this month should cut red tape to enable exporters to get quicker clearance of goods at foreign ports.
Developed by the Australian Customs and Border Protection Service, the new program aims to streamline and facilitate trade, and enhance supply chain security.
The TTP is currently being developed by Australian Customs in consultation with importers, exporters and representative bodies.
Under the program "trusted traders" will be offered trade facilitation benefits where there is a secure supply chain.
Exporters that can demonstrate requirements relating to supply chain security and a history of trade compliance will be formally recognised as low-risk, and accredited as Trusted Traders.
Many countries have in place systems similar to Australia's proposed TTP (sometimes known as Authorised Economic Operator programs) whereby qualifying importers or exporters are treated more favourably than non-qualifying traders.
TTP is available to all Australian Business Number (ABN) holders that are actively involved in the international supply chain. This includes importers, exporters, domestic or international freight companies, ports, airports and brokers.
Under the program there are three tiers of certification, which recognise and manage different levels of risk associated with different businesses, goods and trade routes.
Each tier offers Trusted Traders benefits, which reward better supply chain management and cost savings.
- Faster clearance of goods
- Less interference by Customs
- A higher level of service from the Customs authority
The new program will be fully operational form July 1, next year.
The Australian Industry Group welcomed the launch of the new program.
“This initiative will ensure that Australian exporters and importers who already comply with the rules can focus their attention on building their businesses rather than being caught in a web of red tape,” AiGroup Chief Executive, Innes Willox, said.
“With our major trading partners already employing such a scheme, Australian companies can now realise the productivity gains across the supply chain that their competitors already enjoy.
“The Program that has been deployed is a good example of government working with industry to design a regime that is both business friendly and meets the government compliance requirements.”