Known Consignor Scheme

25 March 2019

Leading audit, accounting and advisory firm BDO has today outlined the increased complexity for Aussie Exporters with the introduction of a new consignment process by the Government.

At the beginning of this month The Government introduced the Known Consignor scheme which adds an additional layer of verification regarding the contents of cargo exported by air transport.

From 1 March, all air cargo being transported overseas from Australia will need to be examined at piece-level (box, carton, other similar item) by technology or physically, or originate from a Known Consigner.

BDO Partner, International Trade, Bill Cole said:

“We’ve identified 3 industries that will be impacted:

1. Agribusiness - fresh produce will undergo compulsory security screening via x-ray or metal detector if it arrives at airports without prior security clearance under the Known Consignor scheme. This could result in perishable air cargo potentially suffering from time delays. Excessive wait times at terminal operators may also lead to shipments missing their planned flights as shipments which are not from RACA or known consignors are pre-screened.

Exports of fruit and vegetables is a specialised market requiring attention and detail to cultural sensitivities, biosecurity, packaging, market access and entry and transportation. Exporters of fruit and vegetables who have not already done so, should consider packaging of products, handling of consolidated cargo, scheduling of deliveries, and how cargo is transported to reduce possible changes to delivery times and increased costs to reduce delays.

2. Automotive - Australia’s automotive manufacturing industry is in a state of transition from manufacturing to sales and distribution, engineering services and design and product development. Any automotive industry business receiving or sending goods via air will need to subject the cargo to third party scrutiny or become accredited as a Known Consignor. Automotive industry businesses will need to consider the impact on time, cost, potential interference with automotive parts and accessories etc. when exporting under Government programs. Automotive industry businesses are still well placed however, to address the significant security and governance requirements under the Known Consignor scheme due to existing arrangements.

3. Defence - The Known Consignor scheme seeks to secure the movement of cargo by addressing terrorist threats using air cargo as a vector. Any defence industry business receiving or sending goods via air will need to subject the cargo to third party scrutiny or become accredited as a Known Consignor. Defence industry businesses will need to consider the impact on security of classified information designs and continuity of movement when exporting under Government programs. Defence industry businesses are still well placed however, to address the significant security and governance requirements under the Known Consignor scheme due to existing arrangements.

For more information, visit: Known Consignor Scheme.