TALKING POINTS - The unfortunate norm for imports

I refer to Jeff Harrod’s comments, regarding the collection of duty and GST from the importing community (Lloyd's List DCN Online, May 19).

This has been an ongoing scenario (problem), since I first joined this industry.

Too many years ago to remember!

It has always been, and I believe will continue to be, the  established practice that importers believed that the brokering community is their second and even third bank.

Unfortunately it has become the norm, for those who provided credit on duty, GST and freight, as a means to obtaining and keeping work; not relying on their expertise, skills, experience and ability.

Brokers cannot expect the logistics industry, be it brokerage or forwarding, to police the problem for them, by having some form of industry charter.

It’s a hard world and very much a laissez faire based commercial world, especially in the international trade logistics environment.

The industry compounds the problem by continuing to provide credit to these importers who seek it and even to those that don’t; and most do it without obtaining a Director’s Guarantee from those businesses.

The answer is simply: Don’t provide credit or if you do, then ensure you personally police it and obtain Director’s Guarantees or ensure you obtain payment up front, prior to release of the consignment.

Peter A Hodder
Managing Director
Peter Hodder & Associates Pty Ltd

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