Recently, Indonesia’s minister for Transport, Mr Ignasius Jonan signed an air cargo and supply chain safety regulation and figuratively stirred up a hornet’s nest. The irritation was felt almost globally. It has made the Indonesian industry feel uneasy. The freight forwarding companies are nervous. The financial problems that the decision causes are not very insignificant. The airport security rules are not the only ones to be changes.
The amendment brings a few changes into the world of freight, and especially into the air cargo branch of economy. One of the amendments is the raising of the minimum capital for logistics companies. The earlier amount of 200 million IDR has now been raised 20 25 billion IDR (EUR 1.78 Million/USD 1.93 Million), This has obviously stirred the anger of the Indonesian Logistics and Forwarders Association (ALFI). The association has threatened to pull the government into court and challenge the regulation.
The amendment foresees the change of air port security rules that are related to the regulated agent system (RA). The regulated agents will need to, as per the new rules, inspect the cargo in the unrestricted area (called LINE 2) . The freight will be move to the secure area (LINE 1) only after this inspection. This will increase the processing time for air cargo, which should, in fact, be handled fast. The new airport security rules is not going to help the economy, if the above mentioned fears are to come true
The difficulty is that most of the regulated agents do not have screening machines, as the investment is quite high. Once the freight is move to the secure area (LINE 2), the screening has to be done again, as there is the danger of the freight being manipulated during the transit. This will cause not only increase in investment but also the time used for handling. More staff need to be inducted and more money invested in screening machines. In addition to these expenditures the logistics companies have to increase their minimum capital.
The implementation of the new airport security rules will, if carried through, cause many medium level companies to lose business. the Jakarta Post reports that the minister has talked to the ALFI chairman, Mr Hanafi. As per the newspaper the ALFI is reported to have agreed to provide recommendations to companies that have a capital of less than 25 million IDR. Putting the changes into practice itself will need a lot of time and the International Air transport Authority (IATA) has criticised the move. It has also requested Indonesia to have a transition period of one year for the smooth shift to the new rules. IATA also criticised that Indonesia will not prove to be competitive if the new rules are implemented. As per Mr Albert Tjoeng, the director for IATA Asia-Pacific, this will go against the economic growth of the country.
Man’s greed for the exotic and the beautiful has led to terrible attacks on the natural bounty. Ivory has been a fascination for thousands of years, but modern man has been active in systematically destroying nature. The ivory trade has reduced the international elephant population.
In 1979 there were an estimated 1.3 million African elephants. A decade later, widespread poaching
had reduced that figure by more than half. Just 600,000 African elephants remained. — Bloody Ivory Org
There was a time, when piano keys were made from ivory but in the 70s the piano industry abandoned the practice. Africa and Asia were the two largest areas on our planet, where this trade flourished and even today, it is continuing. Although organisations have come up to protect the elephants, the mindless poaching and trading continues. The photo below shows a shocking example of what man can do.
China has been accused of playing a major role in illegal ivory trade. The booming e-commerce has given birth to many websites offering illegal products in this category. The British organisation TRAFFIC highlighted this in their report. According the report more than half of the illegal products offered consist of ivory items . The organisation has also reported a trebling of the number of ivory items for sale in Thailand. TRAFFIC has been monitoring the ivory trade there.
The number of worked ivory products found for sale rose from 5,865 in January 2013 to 14,512 by May this year,
while between January and December 2013, the number of ivory retail outlets rose from 61 to 105. TRAFFIC Report 2014
The World Wild Life Fund is one of the major organisations working to protect and conserve animals the world over. It has been active in Thailand, working to awaken public opinion against the ivory trade.
The most recent development in the campaign against the ivory trade is the announcement by Thai Airways International to fight this evil, by co-operating closely with the Thai customs authority. A welcome development in the international fight against the evil of ivory trade.
Attention all Air Cargo Freight Forwarders.. If you are flying consolidated freight into Philippines, you are required to file two documents in advance:
Mandatory with effect from 11. May 2015. The rule comes into force vide Customs Memorandum Order 10-2015 issued by John Phillip P. Sevilla, Customs Commissioner
e-IFM (electronic Inward Foreign Manifest)
e-CCM (electronic Consolidation Cargo Manifest)
The rule has been brought into force by The Bureau of Customs and has been passed to take effect from the 11. May 2015 and any freight that arrives unmanifested will be subject to forfeiture under Section 2530 (F) of the Tariff and Customs Code of the Philippines
Content And Applicability
The e-IFM should contain the list of the House Air Waybills (HAWB) and Master Airway Bills of the air cargo arriving on a flight. All the data of the air cargo covered by the Master Airway Bills (MAWB) will be contained in the e-CCM
Every MAWB covering air cargo consigned to airlines, air cargo forwarders, air express operators and cargo deconsolidators is subject to the above mentioned rule and an e-CCM is to be filed without delay.
If the airport of departure is in Asia the deadline is the upon arrival of the aircraft at the airport. For all the flights departing from abroad (non-Asian countries) the deadline is four hours before landing.
If the e-IFM has been filed on time the e-CCM may be filed one hour after the arrival of the flight. For e-IFMs that have been filed late, the corresponding e-CCM may be submitted within 24 hours of the e-IFM registration, in order to avoid penalty.
Penalty For Late Submission
Any late submission of e-IFM will invite a mandatory penalty of 10,000PHP (approximately 211EUR or 224USD). As mentioned above, any air cargo arriving unmanifested will be subject to forfeiture under Tariff and Customs Code of the Philippines (applicable section 2530(G) )