Impact Publications : AirCargo_247
AIRCARGO ASIA-PACIFIC • FEB - MARCH 2017 • Page 15 ANDREW HUDSON E: AHudson@rigbycooke.com.au remit GST for the first time. That, in itself, creates a level of complex- ity and uncertainty which had not existed before. • At the same time that new par- ties will have obligations to report, collect and remit GST, they will also have new expenses to under- take those tasks - and new liabilities if those tasks are not done proper- ly. Hopefully, some form of mora- torium from liability will apply for errors which are inadvertent. • The new risks and liabilities may extend to the parties providing services to the EDPs, suppliers and ‘re – deliverers’. • The form of report is not yet clear and neither is whether there will be the use of an ‘adjusted’ SAC, full FID or revised cargo report in- cluding all the relevant information. • It will require additional exper- tise on low value transactions for the first time in terms of calcu- lating the exact GST and apply- ing the correct exchange rates. Expertise in VoTI will now be at a premium. • The imposition and collection of GST on imports may create an issue for returns of goods bought on line. Once a consumer has paid a price including GST, if he/she returns the goods he/she would want the costs refunded - even where the supplier or EDP cannot secure a refund directly and only secure a GST credit. That could create a direct cost to that supplier in having to effec- tively refund the GST from its own sources. • We have yet to hear whether the reports for these transactions which are now liable to GST will attract a processing fee, which is currently not payable on SACs. Giv- en the additional complexity of the system, presumably there will be a new charge as opposed to having the transactions ‘cross – subsidised’ by processing charges on FIDs as is currently the case. • There is still no transparency on whether the costs of the new sys- tem will be covered by the revenue recovered. If not, it may appear to be a case of the Federal Govern- ment effectively paying to ‘level the playing field’. It is fair to say that there is some tension associated with the new regime - which is not entirely con- sistent with international moves to facilitate trade and reduce costs in transactions at the border. We will keep you advised on de- velopments and, as always, if pain persists, see your lawyer. LM-100J roll-out LM-100J heads for flight testing after nearly two decades IT’s a project that has experienced more than the usual highs and lows, mainly because of market forces, but now the LM-100J freighter, the latest of the C-130J Super Hercules family, is on the move and looking for buyers. The prototype was rolled out with traditional rah-rah celebrations in Marietta, Georgia on February 9. Next step will be flight testing and a gradual work-through to an FAA civil type certificate update. Lockheed Martin began work on a commercial version of its very successful C130J military transport in the late 1990s, having always had such a unit in mind. In 2000 however, the company announced it was putting the project on the back burner because of demand for the militar y version and other equipment development. That decision was supported by the-then availability to operators of large numbers of freighters and P2F conversion opportunities. By 2014, however, the market had become warmer for such a freighter and Lockheed Martin was on top of its military production. The company formally re-launched the LM-100J program, committing significant personnel, production and funding resources. Its re-launch announcement talked of anticipating around 75 sales, a total deemed feasible by most observers given the interest shown by operators of existing L-100 fleets as well as new entrants. During the roll-out the FAA was praised as “an essential partner in this aircraft’s production”. During the roll-out the FAA was praised as “an essential partner in this aircraft’s production”.