Chain reaction: Managing the CoR compliance of overseas third parties

  • Under the CoR laws, the operations and conduct of both you and your contractors/ supply chain partners must be compliant.
  • While overseas suppliers are not party to the Chain, they are nevertheless party in the supply chain.
  • Active compliance performance management of overseas suppliers

Broken  chain link

Parties along the entire supply chain must now adhere to strict Chain of Responsibility (CoR) laws in Australia. But how can you minimise your compliance risk when overseas third parties with whom you deal don’t have to directly comply with the CoR laws?

In this article, we focus on how to best manage the CoR compliance of overseas third parties, and also give an overview of these laws that are set to get even stronger mid-next year.

The Chain of Responsibility: A snapshot

The CoR laws recognise that the actions and inactions of parties right along the supply chain can have an adverse impact on heavy vehicle safety on the road. As a result, the CoR laws make every person in the heavy vehicle logistics supply chain potentially liable for any breach of heavy vehicle safety, even if: 

  • they do not own or operate a heavy vehicle
  • the breach was committed by another person within the supply chain.

The CoR laws apply under the Heavy Vehicle National Law in Queensland, New South Wales, Australian Capital Territory, Victoria, South Australia and Tasmania and in state-specific legislation in Western Australia. The CoR laws cover heavy vehicle:

  • mass, dimension, load restraint
  • speed, fatigue and roadworthiness management.

The CoR laws apply to every party in the heavy vehicle supply chain, including those who consign, pack, load, carry, unload and receive goods carried by road. Under amendments to come into force in mid-2018, maximum penalties will be increased to:

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