Page 136 - Export and Trade

Other Shipping Terms
Anti-dumping duties CAF Export Entry
These are duties which may be applied Currency Adjustment Factor is an An electronic application to NZ
by importing countries against goods adjustment of the freight rate caused Customs to obtain clearance to export
for which there is evidence that E\ D VLJQL¿FDQW FKDQJH LQ WKH UHODWLYH goods. NB: No goods can be exported
dumping is taking place. The aim of exchange rates in the shipping line’s from New Zealand without a valid
these duties is to raise the base level basket of currencies between export entry. It permits Customs to
price (before transport and other quotation of rate and shipment date. check the goods are not a prohibited
GXWLHV RI WKH LPSRUWHG JRRGV WR D 7KLV PD\ EH D SRVLWLYH VXUFKDUJH export nor in excess of current quotas.
level at least equivalent to those being RU QHJDWLYH UHEDWH DGMXVWPHQW 2Q The cargo details (with appropriate
sought within the country of origin. long-term contracts the CAF adjustment FRPPHUFLDO VHFXULW\ DUH IRUZDUGHG
BAF formula is usually agreed at the to Statistics New Zealand to permit
commencement of the contract. See national trading information to be
Bunker Adjustment Factor is a also CABAF. collated. The Customs website provides
surcharge levied by the shipping a brochure for new exporters.
company to cover any extra fuel costs Centralised or Aggregated rate
incurred between the time a rate is This term again relates to Export Subsidy
quoted and the time the goods are containerised cargo. Some shipping An export subsidy is a subsidy
shipped. BAF could be a rebate if companies prefer to limit the number (sometimes paid in the form of a
bunkering costs have decreased in of ports of loading and will pay the UHGXFWLRQ LQ LQFRPH WD[ SDLG WR
the meantime. On long-term contracts, forwarding cost from say, New exporters against exports made. The
the BAF adjustment format is usually Plymouth to Auckland, for containers aim of such subsidies is to encourage
agreed at the commencement of the being shipped to the Middle East. H[SRUWV E\ UDLVLQJ ¿QDO UHWXUQV SDLG WR
contract. See also CABAF. exporters above the level suggested by
Countervailing duties
Bills of Lading These are often confused with anti- international prices.
Applicable to shipment of goods, bills dumping duties. Countervailing duties For guidance, contact the Ministry of
Foreign Affairs and Trade or visit their
of lading may be prepared by the are levied against imports considered
exporter, its agent or the shipping WR EH VXEVLGLVHG VHH H[SRUW VXEVLG\ information packed website:
www.mfat.govt.nz
company. It gives legal title to the This in essence involves government
JRRGV DV ZHOO DV FRQ¿UPLQJ WKH support for an export industry, which FCL/LCL
contract of carriage. It is required by might provide the exporters of one FCL means Full Container Load, LCL
the importer to take possession of the country with an unfair price advantage means Less than Full Container Load.
goods on arrival. over the local industry. A countervailing New Zealand container services are
duty may be imposed to counteract built around the general concept that
Box Rate
these advantages. the shipper loads a container at their
$ VSHFL¿F IUHLJKW UDWH XVXDOO\ GH¿QHG
E\ LQGLYLGXDO FRPPRGLW\ IRU VKLSPHQW Dumping premises and presents it sealed to
the shipping company and that at
of a full container, irrespective of the Dumping is evidenced by the sale of
volume that it contains. Check imported goods on a foreign market the other end, the container is
delivered to the importer’s premises
whether heavyweight containers are at a price lower than that at which
acceptable, particularly if your the good is being offered for sale on also sealed and loaded. This
constitutes FCL. Some shippers do
product has a weight-to-volume ratio, its own local market. Dumping has
since you are often able to ship the potential to cause serious and QRW KDYH VXI¿FLHQW FDUJR DQG RU
VXI¿FLHQW IDFLOLWLHV WR ORDG D FRQWDLQHU
additional material without incurring unnecessary injury to local industries
extra freight costs. and is regarded as a source of unfair at their premises. In such a
situation, in the case of Trans-Tasman
CABAF competition. shipments, they may employ freight
An adjustment factor incorporating the forwarders, or in the case of other
bunker and currency adjustments. services present the cargo break-bulk to
be loaded by the shipping company into
containers at the port.
An LCL surcharge on the rate is usually
incurred. Cargo may be shipped by

134 NZ Export & Trade Handbook 2018