June 2010 - Boating Industry Association of NSW

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Maximise your ‘Letter of Credit’ by lowering the cost The BIA and Associated Foreign Exchange (AFEX) have identified a need for foreign exchange risk management and the benefits of these services to boat importers and exporters. In today’s highly competitive market place it has never been of more importance to understand and effectively manage the risks involved with importing or exporting. Andrew Cardis, Senior FX Broker for Associated Foreign Exchange, discusses currency management and Letters of Credit. Over the last year the Australian Dollar (AUD) has suffered from extreme international risk aversion and benefited from strong risk appetite as a higher yielding currency. The volatility range for the AUD/USD in 2009 was in excess of 50% and this uncertainty has had a major impact on the profit and loss of many boating companies engaged in international commerce, therefore managing and alleviating this risk has become a necessity for protecting profits. There are a number of methods by which a company can actively take control of its exchange rate risk and by utilising the services of a specialist foreign exchange broker to assist in these transactions you gain access to a variety of solutions not traditionally offered by major banks and Foreign Exchange houses. In addition to currency management AFEX can also help boating importers/exporters with Letters of Credit commonly referred to as ‘LC’s’. Firstly, what is a letter of credit? A letter of credit is a document issued by a bank that guarantees the payment of a customer's invoice on any given date in the future; it substitutes the bank's credit for the customer's credit and allows the seller to ‘ship’ (no pun intended) the goods to the buyer. A simplified LC process would take place as follows: • Buyer and seller agree terms of trade (price, specification, shipping etc) • Buyer applies for LC from issuing bank. NEW MEMBERS The BIA Board of Directors welcome the following new members: National Marine Services Pty. Ltd. Watt2c Pty.Ltd. Luxury Design Motoryachts Pty. Ltd. Morris Global Pty. Ltd. Fleming Yachts Construction (hk) Ltd. Motohansa Pty. Ltd. Lakeside Boating Service G W Marine Pty. Ltd, T/as Windy Boats Australia North Coast Mobile Marine Superyacht Marina Pty. Ltd. Mattrix Marine Tork Communications Pty Ltd. Charles Parsons & Co. Pty.Ltd. T/as Line 7 7 Seas Pty. Ltd. Kargil Holdings Pty. Ltd. T/as Maurice Drent Boating Services, • Issuing Bank sends LC to seller’s bank. • Seller sends goods to buyer. • Assuming agreed terms are met, issuing bank pays the seller. Now here’s where AFEX come in Ordinarily, the issuing bank would debit the importer's account in their local currency, and convert it at the bank's chosen rate to pay the seller in the foreign currency. By advising their bank not to proceed with the debit of their bank account, an importer can have AFEX make the conversion. Payment would then be made to the issuing bank in the foreign currency. To summarise, the bank still make the payment to the boat suppliers, however AFEX completes the letter of credit transaction by supplying the USD or Euro to the bank so they can process the payment on. The benefit to the boat importer is significant AU dollar savings gained from the preferential rate of exchange offered to all BIA members. Associated Foreign Exchange has been offering its clients this method of managing international payments since 1979. Currently they have 21,000 clients worldwide and process over a million transactions a month and over $14 billion a year. AFEX do not charge extra for Letters of Credit services, LC payments still attract the same competitive exchange rates and by using AFEX in this way the savings can be substantial. AFEX operates under Australian Financial services license number 305246 and all account executives are RG146 accredited. For more information please visit www.afex.com or contact: Andrew Cardis, Corporate Account Manager, acardis@afex.com and QUOTE: BIA. Associated Foreign Exchange, Level 38, Citigroup Centre, 2 Park Street, Sydney, NSW, 2000. The information contained herein is intended as general advice and does not take into account your specific circumstances. Budget reform to boost Australian exports The Australian government has agreed to remove the GST payable on all boats purchased by overseas buyers, provided the boat is used for recreational purposes in Australian waters for 12 months. In the past, GST was payable on all overseas boat purchases unless the boat was exported within 60 days. AIMEX, the Australian International Marine Export Group, has campaigned tirelessly for the case. "Buyers will be able to sail new Australian-made boats in our waters for up to 12 months without paying GST on the sale price, resulting in economic benefits for Australia's coastal regions," said Assistant Treasurer Hon Nick Sherry at the budget announcement. The Australian marine industry is said to provide $1.2bn in export revenue and is a huge employer. Of the nine companies directly canvassed by AIMEX, Australian boatbuilders have lost more than $40m in export sales due to the restriction. "It is of great relief that the treasury have recognised the need for this rule change," said AIMEX CEO Mary Anne Edwards. "Once applied, boatbuilders, the industry and nation will reap rewards in return." The removal of the GST barrier is due to come into effect from June 2010. For more information contact Mary Anne Edwards (03) 9682 1255; www.aimex.asn.au 12 - June 2010 BIA of NSW LOGBOOK
Marmong Point Marina expansion approved Lake Macquarie's Marmong Point Marina has been given planning approval for a $3.1million expansion which will provide a local tourism and employment boost. Minister Assisting the Minister for Planning, Barbara Perry, said the marina expansion will meet a growing demand for boat storage on Lake Macquarie and the redevelopment is expected to generate 25 construction jobs and produce significant economic gains for the Lake Macquarie region. An additional 85 berths will be constructed by Marmong Point Marina Pty Ltd, bringing the total capacity of the marina to 245 berths. Other improvements to the area will include the construction of a public foreshore boardwalk and a publicly-accessible sewer pump-out facility that ensures waste disposal in accordance with current environmental standards. Minister Perry said a number of design options were canvassed by the proponent in its pre-lodgement community consultation and the final design was the most compact plan and provided the best protection for the environment. A number of swing moorings will be relocated while ten commercial moorings will be removed under the proposal. No recreational moorings will be lost. Ms Perry said that the proposal complies with navigation and entrance channel requirements. "As part of the proposal, a 30 metre wide navigation channel will be put in place around the marina, which will allow safer movements to and from the public boat ramp," she said. "The public will continue to have access to the marina's fuel berth via the proposed navigation channel." Ms Perry also said the proposal ensured that the eastern shore of Marmong Cove would be upgraded to include a foreshore boardwalk and would continue to be fully accessible by the public for recreational activities such as swimming, kayaking and fishing. New dinghy storage racks to be supplied by the proponent will tidy up the foreshore and reduce foreshore damage. Conditions of approval include controls during construction and operation, and ongoing monitoring to ensure the marina operates in accordance with strict environmental controls. The conditions of approval also include measures to protect any Aboriginal cultural heritage values discovered on the site in consultation with the local Aboriginal community. Marmong Point Marina has been a member of the BIA since 2005. Manage your workplace issues with confidence Workplace Advice Line As a member of the Boating Industry Association you have access to the ABL State Chamber Workplace Advice Line. The Advice Line provides comprehensive advice on the day to day management of industrial relations and employment relations issues including: • Wage rates • State, Interstate and Federal awards provision • Superannuation payments • Redundancy and termination • Workplace policies • Workers compensation • WorkChoices The advisors can help solve your workplace issues with confidence. Call the Advice Line today 13 29 59 Monday – Friday 8:30am to 5:30pm ABL 758 BIA of NSW LOGBOOK June 2010 - 13
Page 1 and 2: LOGBOOK NEWSLETTER The official new
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Page 19 and 20: to compete in and enjoy but incredi
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June 2010 - Boating Industry Association of NSW

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