Is the Trusted Trader Program (TTP) the beginning of a “new trade era” for the Down Under?
You might be asking “What is it and how is it relevant to me?” The idea is that it is a modernized system developed by both Australian Customs and Border Protection (ACBPS) to enhance the competitiveness of Australian traders by relieving unnecessary administrative and regulatory burdens, whilst still protecting the borders from associated risk. The process being designed is in accordance with the trade facilitation measures outlined in the World Trade Organization’s Trade Facilitation Agreement, also known as the SAFE Framework.
The TTP will provide some clearance privileges to recognized trusted traders. In simple terms, think of the TTP as a relationship with the ACBPS built on trust and shared responsibility. Sounds like a marriage, right?
In the near, hopefully not-so-distant future, participants of the TTP may see; a decrease in delay at destination ports for both import and export, a systematic prioritization of cargo clearance, and an overall growth of the Australian Trade Industry. Unlike conventional marriages, this could save you time and money.
How can one qualify for this program?
In order to be eligible for the TTP, one must meet the requisite supply chain security and trade compliance practices through an accreditation process set out by the issuing authorities:
- Submission of a self-assessment (or ‘security plan’) against the TTP’s criteria.
- An on-site validation of the information provided in the self-assessment.
- Final determination on the eligibility of the applicant to join the TTP.
- The setting of terms and conditions in an agreement between the Customs administration and the
- Ongoing monitoring.
The important thing to note is that businesses that have been operational for less than 12 months will not be eligible to apply for the Trusted Trader Program as they cannot produce the necessary assurances about their compliance history.
Ok, so let’s not get ahead of ourselves and start jumping for joy just yet… The initial phase of the program’s pilot is scheduled for commencement on 1st July 2015 and is presented on a three staged phase which will operate for a period of 12 months with no timeframes dictated for each phase. It was estimated that at the end of the 12 month trial period, there would be an approximately 40 participants who will go on to become the very first full members in due.
So stay tuned for more developments and insights after the honeymoon period… I mean initial trial.