It has been two years since the launch of the Personal Property Securities register but many jewellery suppliers remain unaware of its ramifications, according to the JAA.
Ian Hadassin, the CEO of the JAA, said many jewellery suppliers still don’t realise that their retention of title clauses have been obsolete and unenforceable since the new PPSR legislation commenced in 2012.
“The JAA has informed the industry in emails and has published several articles on PPSR over the last two years, but yet very few jewellery industry suppliers have registered their security over unpaid goods and goods on consignment,” he said.
“We need everyone to be aware of what is at risk,” he said.
“We are concerned about those in the industry who may be burying their head in the sand.”
JAA Board member Colin Pocklington, who has over ten years experience of working with similar PPSR legislation in New Zealand and has implemented the PPSR system for the Nationwide Jewellers group in Australia, recently conducted a PPSR webinar for JAA members.
Speaking after the seminar, he said “it was evident that some suppliers were under the misapprehension that they need to register each and every shipment” but this is “totally incorrect”.
“Suppliers only need to register each customer, and then they are covered for all goods delivered subsequent to registration,” he said.
“It also seems that the vast majority of suppliers still do not realise that if a retailer becomes insolvent their existing retention of title clauses will not allow them to recover unpaid goods, and they will also lose any goods on consignment or appro.”
The PPSR commenced on 30 January 2012, replacing a number of registers including, most relevantly for general commercial purposes, the ASIC register of company charges and the various State bill of sale registers.
According to the JAA, the PPSR is the most significant legislation affecting businesses in Australia since GST.