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MGMT5520 Legal Principles For Management

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MGMT5520 Legal Principles For Management

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MGMT5520 Legal Principles For Management

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Course Code: MGMT5520
University: The University Of Western Australia

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Country: Australia

Question:

Identify the commercial and transport information which would normally be generated for the importation of a quantity of shoes into your country by air freight. Identify which pieces of information would assist Customs to control cargo and explain why it would be useful. In providing your answer please refer to specific standards or recommended practices of the Revised Kyoto Convention or other agreements, where appropriate.
 
Succinctly and expertly explain the information and documents commonly used in international trade and their relevance to the control of cargoIdentify and explain the processes and procedures Customs uses to maintain control over cargoIdentify and explain the impact of relevant international organisations, conventions and treaties on how Customs controls cargo use reliable sources and credible and relevant information to support your position

Answer:

Introduction
INTERNATIONAL CONVEYANCE is one of the competitive company worldwide. There is a daily collaboration of multiple industries and players in the transportation market, therefore there is the need for a consistent reshaping of the intercontinental shipping arena. For the purpose of gaining success and meeting the ever-varying expectations of the customers, the professionals of the industry are required to implement the rightful strategies to gain more profits, and to be more competitive as well as increase their shipment arrangement quality (Wolffgang & Dallimore, 2012).
The transportation information that is generated for the product importation
For any imports made in the country, they are required to be cleared at the border. In Australia, the department of home affairs provides information that is required during importing which include Import clearance requirements, import permits, and prohibited goods. Depending on the type of goods there is a cost involved. They include clearance fee, customs tax for goods and services (McLinden, 2009).
Customs clearance: For all commercial cargo that has been imported into Australia the importer has to do the clearing of the goods through the customs barriers. It involves the preparation of all documents and submissions that the tax can be calculated and the taxes are paid (Wolffgang & Dallimore, 2012). Standard importing of goods requires a commercial invoice, quarantine packing declaration, packaging list, bill of landing and insurance certificate.
Import license: This refers to permits that give authority to an importer to bring certain quantities of goods into a country within a certain period of time. The permits restrict the outflow of foreign currency which helps in improving the balance of payments of a country. They enable control of dangerous goods and protects the local industry from foreign competition (McLinden, 2009).
The information that assists Customs to control cargo; referring to the revised Kyoto convention
Report on all goods that are being imported. A cargo reporter is required to report a separate cargo report for each consigner or consignee combination. The report enables the customs to control cargo, to identify the risks and act upon them and they are able to make sure suitable revenues are paid before the release of the cargo (Abeyratne, 2018).
Declaration in relation to the cargo: These declarations provide information about the cargo from which they determine whether they will clear the cargo or retain it following with more investigation. Details enable to check if the cargo has been declared correctly with the right amount of duty paid (Abeyratne, 2018).
The information and documents used in international trade and the document’s relevance in controlling cargo
Sale contract: This refers to an agreement between the seller and buyer, giving details and the transaction they are carrying out. It is a legal document in which during preparation the exporter and the importer gets legal advice (Cantens, Raballand, & Bilangna, 2010).
Insurance certificate: These are the documents that satisfy that a certain cargo has been insured under a given policy which enables covering for the loss or damages that may occur during transit. This document is prepared by the insurer (McLinden, 2009).
Pro forma invoice: This is an invoice provided by the seller before the shipment of goods which gives the buyer information on the kind quantity and quality of goods. It also involves the weight and size. This document can be used in order to apply for the import permit or license (McLinden, 2009).
Inspection certificate: This refers to a report issued by the by the inspection company on the cargo which includes price, quantity, and quality. The certificate is issued after the inspection company is fully convinced that the cargo is of good quality to be released to the country (Wolffgang & Dallimore, 2012).
  Quotation: This refers to an offer to sell goods and its states vividly the details of the quality, the quantity, the trade terms, delivery terms, the price and the mode of payment. This document is usually prepared by the seller of the exporter of the cargo (Wolffgang & Dallimore, 2012).
The process and procedure used by customs in controlling and maintaining cargo
Delivery of cargo report by the cargo reporter. The information stated in both the cargo port and the loading body should be similar
This information is required in cargo clearance as well. Inspection of cargo by the customs officers is also essential in this regard. One of the main important factors which the customs consider during the control of goods is to ensure that no illegal products are brought into the country. During the inspection, they are able to get rid of all the illegal products being brought into the country and they are able to clear all the other commodities required in the country which are legal.
Shipments that are being stored in warehouses are tax-free zones
The issue of documents to the custom: These documents include the bill of lading, commercial invoice, permits, and certificates in accordance with the legislation of the country. With the documents, customs offices are able to know if the cargo is supposed to be cleared to be given to the importer or should not. Clearance by customs which covers competition aspects, calculation of duties, inventory control, statistics, and accounting. After clearance, the goods or cargo are released to the importer (Wolffgang & Dallimore, 2012).
Airbill and Cargo declaration
Before the declaration of the Air Cargo department, they must ensure that the package is safe for shipment and inappropriate conditions for transportation following both national and international regulations. It is of great essence that the contents are fully labeled and described using the appropriate shipment names. The declaration form contains a section that assures the clients that their packages are handled carefully during transportation (Ndonga, 2013).
Impact of international organizations, conventions, and treaties on how customs controls cargo
The International Agreement on the harmonization and simplification of the customs process
The convention aimed at endeavoring in the elimination of the deviation between the contracting parties’ practices and the Customs procedures, contributing effectively to the establishment of international trade through the harmonization and simplification of customs practices and procedures and by nurturing international co-operation. The convention also identified the vital profits of facilitating international trade, and the benefits could be achieved without incorporating some of the Customs control standards (Zhang & Preece, 2011).
The harmonization and simplification of the customs practices can be accomplished via the application of the following principles: The application of programs meant to modernize the Customs practices and procedures continuously and therefore enhancing the effectiveness and efficiency of trading; The implementation of the Customs practices and procedures in a transparent, predictable and consistent manner is providing the relevant information about the Customs administrative guidelines, laws, regulations, practices and procedures to interested parties;  The acceptance of recent performances such as audit-based and risk management controls as well as practice the use of information technology. The co-operation with other state authorities, trading communities and Customs administrations is necessary in this cotenxt. The application of relevant intercontinental standards and providing the affected parties with an easily accessible procedure for judicial and administrative review (Norov & Akbarov, 2009).
The Revised Kyoto Convention (RKC)
The revised Kyoto Agreement is the major facilitator of the trade Customs Agreement. The convention was created by the World Customs Organization and the implementation of the convention has been started from 3rd February 2006. The convention is a revision and update of the International Agreement on the harmonization and simplification of the customs process that was adopted between 1974-1973. The objective of RKC is to facilitate trade by simplifying and harmonizing Customs practices and procedures. The Convention, therefore, offers recommended practices and standards for the modern Customs techniques and procedures (Rieley & Lubinaite, 2014).
The Agreement on Intercontinental Customs Transit Practices for the department of goods by railway under the cover of the SMGS Shipment notes
The aim of the Convention is to create a global Customs transportation process for the carriage of products commenced by the railway establishments, under the cover of a Shipment Note. The Parties that signed for the contract agreed that the “international Customs transit” term is the Customs process under which the cargo is transported from state to state under the controls of the Customs from the office of Customs at the point of departure to the office of Customs at the destination point (Van der, Meer & Ignacio, 2011). The Convention applies to the transportation of cargo under the cover of the Consignment Note that was agreed on by the Parties that signed to the contract and the Note was used according to the provision of the Convention as a document for Customs transit. The Convention also purposed not to modify the Consignment Note’s content or form without an initial settlement with the Administrative Committee of the Agreement (Zhang & Preece, 2011).
The A.T.A Convention
The states that signed to the Customs Convention (Australia is one of the parties) about the Carnet of A.T.A for the transitory admission of cargo, conducted a summit under the General Agreement on Tariffs and Trade, the United Nations Educational, Scientific and Cultural Organization and the Customs Co-operation Council (Pavlenko et al., 2013). The Convention agreed on the adoption of a mutual process for the momentary duty-free importation of cargo for the purpose of gaining advantages in regard to the cultural and international commercial activities. The convention also aimed at securing a greater degree of uniformity and harmony in the Customs organizations of the parties that sighed to the contract.
Customs Convention on Containers
The Convention was conducted at Geneva in the year 1972 (13th November – 2nd December) and it came into force on 6th December 1975. The summit was committed to undertake the decisions and resolutions made by the Social and Economic Council in 1970 (on 22nd May). The Seminar, therefore, accepted a Final Act that contained the 8 text resolutions of the council and the inter alia. The signatories to the contract involve Australia which signed in on 22nd may 1973 and it was approved on 17th June 1977, there were many other signatories such as Canada, Finland, and Greece (Album, 2009).
The Customs Agreement on the Intercontinental Transport of cargo under the Cover of the TIR Carnets
The parties that signed to the contract desired to simplify the intercontinental carriage of cargo through vehicle transportation on roads. The parties also considered the enhancement of the transport constitutes conditions which are an essential factor for the establishment of co-operation among the parties. The parties also declared themselves in favor of the harmonization and simplification of the administrative procedures in the international transportation field (Grainger, 2010). The convention applies to the transportation of goods without the intermediary restocking that is; in road automobiles, in containers or combinations of automobile, across borders between the Customs office at the point of departure of one of the Contracting party and the Customs office of the destination point of the other or same Party, provided that a portion of the voyage between the end and the beginning of the operation of TIR is prepared by road (Zhang & Preece, 2011).
Conclusion
The transportation industry is among the leading industries globally. It is a company that allows interaction of various nations and companies, therefore there is the need for restructuring of the shipment arena continuously. The strategies set for effective restructuring involve the creation and maintenance of various Customs Agreements that control cargo transfer.
References
Abeyratne, R. (2018). General Principles of the Carriage of Air Cargo. In Law and Regulation of Air Cargo (pp. 1-41). Springer, Cham. https://doi.org/10.1007/978-3-319-92489-2_1
Album, F. A. (2009). Regional Cooperation on Trade and Transport Facilitation. Impact of Trade Facilitation on Export Competitiveness: A Regional Perspective, 66, 71. 
Cantens, T., Raballand, G., & Bilangna, S. (2010). Reforming Customs by measuring performance: a Cameroon case study. World Customs Journal, 4(2), 55-74.
Grainger, A. (2010). The role of the private sector in border management reform. BORDER, 157.
McLinden, G. (2009). Integrity in customs. Customs modernization handbook, World Bank, Washington, DC, 67-89.
Ndonga, D. (2013). Managing the risk of corruption in Customs through single window systems. World Customs Journal, 7(2), 23-38.
Norov, L., & Akbarov, D. (2009). Customs—Time for a Change. Problems of Economic Transition, 52(2), 47-60.
Pavlenko, O., Triakina, O., Garmash, E., Bogdanova, E., Jeifets, V., Babayev, I., & Zafeiropoulos, P. (2013). Facilitation and security of international trade: innovative mechanisms and instruments. Customs Scientific Journal CUSTOMS, 3(1), 15-45. https://umsf.dp.ua/documents/Jurnal_gazeta_knigi/CJC_2013_01all.pdf
Rieley, J. O., & Lubinaite, S. (2014). International Conventions, Agencies, Agreements and Programmes-Implications for peat and peatland management. International Peat Society, Jyväskylä, Finland. International Peat Society, 3, 3.
Van der Meer, K., & Ignacio, L. (2011). Sanitary and phytosanitary measures and border management. BORDER, 263.
Wolffgang, H. M., & Dallimore, C. (2012). The World Customs Organization and its Role in the System of World Trade: An Overview. In European Yearbook of International Economic Law 2012 (pp. 613-633). Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23309-8_19
Zhang, S., & Preece, R. (2011). Designing and implementing Customs-Business partnerships: a possible framework for collaborative governance. World Customs Journal, 5(1), 43-62. https://www.akmal.gov.my/files/periodic/wco/WCJ_Volume_5_Number_1.pdf

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