BIFAlink December 2021

BIFAlink December 2021

December 2021 The magazine of the British International Freight Association BIFA link Issue: 376 www.bifa.org

INSIDE

6: News National Apprenticeship Week 2022: Support our jobs fair 8: Policy & Compliance A hidden EU-Exit issue: Rules of Origin regulations 10: Policy & Compliance Customs controls: tips for hauliers 12: Events What a response! The BIFA Awards have attracted a big field of outstanding entries

Follow us @BIFA Multimodal is back! – Pages 18-19

Robert Keen’s Column

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Christmas deliveries in perspective

BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266

As I wrote this column there had been a flurry of headlines in the mainstream media suggesting that, as a result of the significant issues affecting global supply chains, Christmas would be cancelled this year. That prompted us to issue a statement urging the need to maintain a sense of perspective, or the headlines may become a self-fulfilling prophecy. In that statement we noted that more teu were shipped successfully in August 2021 than in August 2019 before the pandemic and plenty of cargo is being moved successfully.

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Director General Robert Keen [email protected] Executive Director Robert Windsor

The issues affecting supply chains were certainly a topic on everyone’s lips at the Multimodal 2021 conference and exhibition in October, where it was really good to meet so many BIFA Members. The hall was a bit smaller than previous years but as it was full, the show seemed as vibrant as past events. I was particularly pleased to see the high profile of the BIFA Freight Forwarder village at the show. Read the full report on pages 18-19. You may have noticed our increased emphasis on the younger generation in recent issues as we have encouraged BIFA Members to take on an apprentice. We are also reaching out to schools to raise the profile of logistics as a career. To repeat our recent calls, we need BIFA Members to assist us in this challenge, contact Carl ([email protected]) or Nezda ([email protected]) for information. We have some new faces at the Secretariat in Feltham and we welcome Sharon Sampeys as Training Administrator and Natalie Pitts as Communications Manager. Read more about Sharon and Natalie on page 22. Also, in this edition of BIFAlink you will find updated information on using the lien clause in the BIFA Standard Trading Conditions. Liens are a particularly tricky subject and we have had a couple of instances recently reported to us where there were problems for BIFA Members when attempting to apply a lien. More often than not, a lien is a way of focusing the customers attention and the matter is resolved without going to Court, however the need to have a suitable solicitor to advise you should not be forgotten, especially when there are Administrators or Liquidators involved. This seems an appropriate point to remind readers of the information we provide in our “Good Practice Toolbox” which you can find at www.bifa.org under the information tab. Here you will find a number of guides on a wide range of topics about which BIFA Members often call. Well, that’s the end of another year’s worth of BIFAlink and I hope you have benefited from the information we have been providing. You don’t need a crystal ball to realise that 2022 will be just as challenging with further changes to Customs procedures concerning EU Exit on 1 January and 1 July. Of course, BIFA Members will assist their customers in navigating the changing legislative landscape as EU movements continue the transition from being a simple delivery process back to being a full freight forwarding activity, cargo owners will benefit from the wide range of technical assistance that BIFA Members provide. To end, I would like to send you my very best wishes for a peaceful festive season and prosperous new year.

[email protected] Executive Director Spencer Stevenson [email protected] Executive Director Carl Hobbis [email protected] Policy & Compliance Advisor Pawel Jarza [email protected] Policy & Compliance Advisor David Stroud [email protected] Editorial Co-ordinator Sharon Hammond [email protected] Communications Manager Natalie Pitts [email protected] Membership Supervisor Sarah Milton [email protected] Published by Park Lane Publishing [email protected] Contributors

Robert Keen, Robert Windsor, Pawel Jarza, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Natalie Pitts, Nezda Leigh Note to media: If you wish to use items in this magazine that are older than 1 month, please contact the editor to ensure that the item in question still reflects the current circumstances. Please be advised that BIFA DOES NOT OFFER LEGAL ADVICE. BIFA is not a law firm and the authors of this publication are not legally qualified and do not have any legal training. The guidance and assistance set out herein are based on BIFA’s own experience with the issues concerned and should not be in any circumstances regarded or relied upon as legal advice. It is strongly recommended that anyone considering further action based on the information contained in this publication should seek the advice of a qualified professional.

Robert Keen Director General

** Stop Press!! **

As this edition of BIFAlink went to print, HMRC released the official digital assets to support businesses with the changes coming into effect on 1 January 2022. Thorough communication of these changes is key to driving awareness and understanding so that our industry can make the necessary alterations to keep importing goods. Whilst BIFA has been sharing information about process changes and events originating from individual departments, the Cabinet Office has now shared with BIFA the official documents for our Members to use when communicating the new requirements. Examples of the assets provided include printable A4 posters, social media images and digital screen content. These documents have been presented to us using ‘Dropbox’ folders which are accessible by anyone with the relevant links. Please visit bifa.org > Information > EU Exit 2020 > Trade In Goods Post Transition to access these assets.

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BIFAlink

News Desk

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Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business

September 2019, despite the current restrictions on capacity which remains at 8.9% below September 2019, it said. Cargo that ends up in limbo in on- airport warehouses is exacerbating the congestion crisis, said panellists during a recent Air Cargo World webinar entitled ‘ Thinking outside the terminal: Cargo airports of the future’ . Quickly moving cargo off-airport and building a workforce sufficient to meet the handling needs are keys to efficient operations at major airports. The cost-competitiveness of air cargo relative to that of container shipping remains favourable, IATA said in November. Pre-crisis, the average price to move air cargo was 12.5 times more expensive than container shipping, whereas in September 2021 it was three times more expensive.

Rotterdam port highlights mega boxship pressures

ON THE OCEAN The pressures on port and landside operations across the different modes created by the introduction of containerships in the 23,000- 24,000 teu range was clearly explained by the Port of Rotterdam in a presentation. It said such vessels could be discharging or loading up to 10,000 teu in a call at one of its terminals, equating to around 6,000 moves. The rising number and increasing size of large insurance claims relating to containership operation is of mounting concern both to hull underwriters and P&I clubs. There have been more than 30 incidents requiring payouts from the 13- member International Group of P&I Clubs’ (IG) pooling arrangements since 2016, covering claims of between US$10 million and US$100 million. The rapid increase in ship size has been identified as a key factor across most risk sectors, as well as containership fires, whilst containers lost overboard and container stack collapses are also rising in frequency. Current container supply chain congestion is set to continue through 2022, with the delayed return to liner schedule reliability a key factor, according to the Port of

Rotterdam. It added that the situation is compounded by 25% of global containership capacity being essentially out of the market as it waits outside ports for berths – a chicken and egg situation with lines blaming their poor schedule reliability on delays and congestion at ports. OVERLAND A survey of 200 German transport companies found that entry barriers continue to prevent many forwarders from shifting truck transports to rail. Respondents said that major obstacles to switching include the effort required for planning, a lack of expertise, road haulage companies’ lack of loading units that can be lifted by a crane and loaded onto a train, the lack of awareness of the services and prices offered by combined transport (CT) operators, and lack of access to suitable CT train connections near their locations. Following an announcement during COP26, all new road vehicles in the UK will be zero emission within the next two decades, as 32 countries including the UK, six major vehicle manufacturers, 39 cities, states and regions, 28 fleets and 13 investors jointly set out their determination

for all new car and van sales to be zero emission by 2040 globally and by 2035 in leading markets. A UK government review will seek to improve compulsory ongoing training for HGV drivers. It will also evaluate whether the current requirement for drivers to undergo five days of training every five years, to ensure they remain fully qualified to drive HGV professionally and remain up to date with road safety standards, is fit for purpose or discouraging many drivers who have left the profession from returning. IN THE WAREHOUSE The current warehouse crunch is part of a complex web of overloaded infrastructure exposed by the COVID-19 pandemic and developers cannot build fast enough. Property group CBRE estimates that for every US$1 billion increase in online sales, there is a need for an additional 1 million sq ft of warehouse space. IN THE AIR Global air cargo markets saw a steady growth in demand during September, compared with pre- pandemic levels, IATA reported in November. Global demand increased by 9.1% compared with

ON THE QUAYSIDE According to the Marine Exchange

of Southern California, on 9 November there were 81

containerships either at anchor or loitering in drift areas in San Pedro Bay waiting to dock at the ports of Los Angeles and Long Beach. This surpassed the previous record of 79 boxships queued on 21 October. The Port of Felixstowe has announced a major investment in new equipment to help decarbonise its operations, placing orders for 48 battery-powered terminal tractors and 17 zero- emission remote-controlled electric rubber-tyred gantry cranes. IN BUSINESS As labour shortages across the supply chain hit the front pages, the cry goes up from the more excitable elements of the media to ‘save Christmas’. Unfortunately, as businesses and politicians are beginning to realise, the skills and labour crisis is of long standing and will not be properly resolved in three months by any number of quick fixes.

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December 2021

And the Grinch, with his Grinch-feet ice cold in the snow, stood puzzling and puzzling, how could it be so? It came without ribbons. It came without tags. It came without packages, boxes or bags. And he puzzled and puzzled 'til his puzzler was sore. Then the Grinch thought of something he hadn't before. What if Christmas, he thought, doesn't come from a store. What if Christmas, perhaps, means a little bit more.

- Dr. Seuss, How the Grinch Stole Christmas!

Wishing all our customers a very happy Christmas and a prosperous new year from all of us at ASM.

   




 


BIFAlink

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Revised BIFA advice on taking a lien published The BIFA Standard Trading Conditions (STC) contain a useful tool in clause 8, known as the lien clause. Liens are common in many aspects of business when goods are not released until payment has been made, and the term “possession is nine tenths of the law” is often used when the topic is discussed. However, there can be complications regarding ownership and following the correct procedures is essential if you find the matter before a court. If you are thinking of using the lien clause in the BIFA STC, basic advice might be to consult a solicitor. BIFA Members quite often have the ability to use a lien to focus their customers’ attention on paying their invoice(s) and quite often the threat is enough to secure payment. There are, however, often situations where the advice of a solicitor is essential such as, if the goods are branded, or if the customer has failed and an administrator has been appointed. We have reviewed our published information and consolidated it into a single document, ‘Exercising a lien using the BIFA Standard Trading Conditions’. This guide can be found on the

National Apprenticeship Week 2022: Support our jobs fair

BIFA launched the School Engagement Programme in September, promoting the freight forwarding and logistics industry within schools and colleges in England. With the skills shortage mentioned regularly by our Members, our aim is to educate young people and inspire them to start their career as an apprentice within the sector. We are partnering with one school in each of our main regions – Heathrow, Essex & London East, Anglia, Midlands, Manchester, Liverpool and Solent. We will then add other regions. BIFA and some of our Members have already attended a handful of career-based events at our partner schools and students are showing a keen interest. National Apprenticeship Week is taking place from 7-11 February 2022 and we are excited to join forces with the Logic Studio School, near Heathrow, where we will hold a Logistics Careers Fair for Years 10-13 on Wednesday 9 February. It is our intention to do something similar in other regions.

How Can You Help? We need you to attend this event, and other career- based events, held in our partner schools. We have been invited to attend careers fairs, speed networking, lunch and learn, and mock interviews. These are a great way to make students aware of our industry and recruit strong candidates as an apprentice for your company. If you can support our Student Engagement Programme, please contact Nezda Leigh on [email protected] to hear about events in your region.

What are your out-of-hours availability?

HMRC is urging forwarders to plan out-of-hours coverage. As traders prepare for the introduction of full Customs controls on 1 January 2022, it is important that you take time to think about the out-of-hours services that you provide to customers. Trade in goods is a 24/7 operation and traders may require your support when they move goods through the UK Border outside your standard business operating hours. This could be for a number of reasons, for example if their goods require additional checks or some required information is missing. If this is the case, HMRC or UK border officials may need to contact you to supply additional information on behalf of your customers; if we are unable to do so, this can cause significant delays to the goods’ onward journey and generate extra costs. Now is the time to consider the

BIFA website under the tab Information > Good Practice Toolbox – BIFA.

Of necessity, the document has been written in formal legal terms and should be read carefully. There are many issues to consider so we have presented the information in a Do and Don’t format. We have incorporated into the document guidance on how to draft a lien letter. A key recommendation is to use a solicitor who is well versed in the intricacies of freight forwarding.

procedures that you have in place, to support your customers when they need to move goods through the UK border outside your usual business hours. To help traders find the appropriate intermediary for their needs, you should make it clear what your operating hours are to both your current and potential customers. When you provide guidance about the out-of-hours service that

you can provide to customers, you will ensure that unnecessary delays are avoided when your customers move their goods. There is also lots of useful information on www.gov.uk that will

help your customers as they prepare for the changes from 1 January 2022. Find out more at www.gov.uk/guidance/brexit- guidance-for-business

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December 2021

News Desk

BIFAlink

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Scamdemic – a price of lockdown

During the COVID-19 crisis we have received many more reports of, and questions about, cybercrime in its many guises. The advice is largely the same in all cases – for instance, e-mails from an unknown source should be carefully checked and company procedures followed prior to opening. However, Members are asking us who suspicious messages should be reported to? The UK has established the National Cyber Security Centre (NCSC) and it is to this agency that such suspicious messages should be reported. As of 31 August, a total of 7,250,000 suspicious messages have been reported, with the removal of 59,000 scams and 112,000 Unique Reference Locators (URLs). The correct address to report all scam e-mails to is [email protected] It is emphasised that you should not report a suspected crime to the NCSC. If you think you may have been a victim of fraud or cybercrime, you should report it to: • Action Fraud if you live in England, Wales or Northern Ireland, www.actionfraud.police.uk, or call 0300 123 2040.

• Police Scotland if you live in Scotland – call 101. After reporting a suspicious communication, the NCSC acknowledges its receipt providing generic information on how the matter will be dealt with. We have been informed by parties who had been receiving scam e-mails that after the matter has been reported to the NCSC, there

is a noticeable reduction in such messages. The perpetrators sending such emails rely on the fact that many recipients simply do not know what course of remedial action to take. By reporting spam emails, etc, to the NCSC, it gives it the opportunity to investigate and at least disrupt the flow of such malicious e-mails.

INDEPENDENT CUSTOMS CLEARANCE SPECIALIST

Contact Universal Customs Clearance today to see how we can assist you with quick and reliable customs clearances

Call Nigel to discuss your requirements on [email protected] +44 (0)1304 801087

A very Merry Christmas to everyone and wishing you all good fortune in 2022!

By air – Warsaw Convention (17 SDR): £17.68 per kg

By sea – Hague Visby rules (2 SDR): £2.08 per kg £693.37 per package

BIFA STC: (2 SDR): £2.08 per kg

By road – CMR (8.33 SDR): £8.66 per kg

(The SDR rate on 17 November 2021, according to the IMF website, was 1.04005)

By air – Montreal Convention (22 SDR): £22.88 per kg

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Policy & Compliance

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A hidden EU-Exit issue

criteria or not. Also there have been reports of preference being claimed where there has been insufficient processing of the product. For instance, simply placing a ‘Made in UK’ sticker on goods manufactured in China would not qualify the goods as being of UK origin. Up to a point, EU officials have been relatively relaxed about enforcing such regulations. However, BIFA is aware that stricter enforcement is imminent. Since 2016, Dutch Customs have employed 900 additional officers and have now advised that they will be conducting random checks and enforcing origin rules more strictly. Duty charges The impact of this approach will be that duty will be charged at the time of import on goods that do not comply with the origin rules, thus increasing the cost of such goods being imported into the EU; in a way, it is a method of imposing controls to ensure that correct tariffs are collected. Forwarders, particularly those clearing goods under Delivery Duty Paid (DDP) terms, should consider how to handle the scenario where they have acted on an ‘indirect’ basis for a non- established importer and the goods fail the origin criteria. Almost inevitably previous shipments will be investigated with the potential for a significant post-entry clearance demand being issued. On a more day-to-day basis, it is important to ensure that all parties are aware of who will be responsible for any additional costs if a vehicle is delayed whilst checks are carried out, or where the entry has to be amended to reflect the true origin. It is important that traders are made aware of these facts and Members should consider reminding their customers of this important and often overlooked issue.

It is understood that some EU countries will soon be more strictly enforcing Rules of Origin regulations and applying duty on the spot. Forwarders should consider how to handle such potential scenarios

When forwarders and Customs agents act as intermediaries, they are reliant on the information provided to them by their customer. It is taken on trust that the customer has performed their role correctly and this premise is enshrined in Clause 17 of the BIFA STC. Full and accurate information is required for a variety of purposes – for instance ensuring the correct transportation/stowage of cargoes and all aspects of regulatory compliance such as preparing and submitting Customs declarations. A major element of this is ensuring that the correct duty is paid. Since 1 January 2021, for trade with the EU, this has meant that preference can be claimed where shipments meet the applicable rules of origin... but do they? The Trade Agreement Annexes 2 and 3 cover many of the Rules of Origin, while Annex 7 provides the specific wording for the invoice declaration confirming the product’s origin. These rules are product- specific and complex. The certification requirements, which allow for goods to be imported duty free into the destination country, apply equally to UK exporters shipping to the EU and to EU producers shipping to the UK. However, to

qualify the goods have to meet the relevant origin criteria, which can be complex with rules varying from one product to another. One criterion is that sufficient processing takes place that changes the first four digits of the tariff heading, so for instance raw rubber becomes a tyre. From the UK’s perspective, another method of meeting the origin rules is to ensure that during the process sufficient UK-manufactured components are used, or enough value is added, to qualify the resulting product as being “made in the UK”. The rules apply in reverse for goods produced in the EU destined for the UK. One-year grace period Due to the complexity of the rules, exporters on both sides were given a one-year grace period that reduced the required documentation. During the one-year grace period, UK and EU companies were allowed to certify that their goods did qualify for zero-tariff access under the origin rules, even where they were unable to obtain the supporting evidence from their suppliers. There is evidence emerging, and being reported in the press, that UK companies are claiming the preferences when in fact they have no idea whether the product meets the origin

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December 2021

OPERATIONS

ACCOUNTS

CRM

BOXTRAX

WAREHOUSING

WEB API’S

PO MANAGEMENT



  

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to check how busy each site is before they travel so that they can avoid delays. To download the app, search ‘Attend an Inland Border Facility’ on the App Store or Google Play Store. For more information, go to www.gov.uk/going-to-an-inland-border- facility HM Revenue & Customs gives some advice for hauliers regarding the new Customs controls coming into operation from 1 January and also about attending UK-wide Inland Border Facilities Customs controls: tips for hauliers

• Ensure the driver has all the information and documents that he or she will need to present when arriving at the IBF. For outbound transit movements, you must have the Local Reference Number (LRN). LRNs can be entered into the ‘Attend an Inland Border Facility’ app where they can be associated with a vehicle registration number when booking a vehicle into an IBF. Where to find information You can find more information about when drivers need to go to an IBF, as well as a full list of IBF locations across the UK and what paperwork the driver will need to bring when they arrive at the IBF, at: www.gov.uk/government/publications/attending- an-inland-border-facility/attending-an-inland-bor der-facility If you would like more information on moving goods between Britain and the EU, including how to prepare for attending an IBF, you can

There are Inland Border Facilities (IBFs) located across the UK where drivers moving goods between the UK and EU can take their goods for Customs checks away from ports. From 1 January 2022, drivers who bring any goods into the UK through Dover, Eurotunnel or Holyhead will need to use the ‘check if you need to report for an inspection’ service before they get off the ferry or shuttle, to see whether they need to take their goods to an IBF for Customs checks. The ‘check if you need to report for an inspection’ service can be accessed at www.tax.service.gov.uk/driver-inspection- notification/start If drivers do not have a smartphone with internet access, the haulier manager will need to pass this message on to the driver by phone. When an ‘inspection needed’ message is displayed, the driver must go to an IBF as soon as he or she leaves the terminal. To use this service, and before drivers board

the ferry or shuttle, hauliers must: • Be registered for the Goods Vehicle Movement Service (GVMS), and • Ensure the driver has a Goods Movement Reference (GMR). Registering for GVMS You can find more information on how to register for GVMS and get a GMR at gov.uk/using- goods-vehicle-movement-service Drivers currently only need to attend an IBF if they are travelling through the port of Dover, Eurotunnel or Holyhead and they are moving goods that fall within certain categories; from 1 January this will change to cover all goods. To speed up drivers’ journeys and processing time when attending an IBF, you should: • Use the ‘Attend an Inland Border Facility’ online service to tell HMRC which IBF you are coming to. Drivers can do this themselves or the haulier manager can do it on their behalf. Drivers can also use the app

read the Haulier Handbook at www.gov.uk/haulier-handbook.

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December 2021

BREXIT. IT’S HERE, IT’S NOW. IMPLEMENT A PROVEN SOLUTION TO MEET YOUR CUSTOMS CHALLENGES. E-CUSTOMS SOLUTIONS The legislation around import and export declarations on goods going to and coming from Europe and Northern Ireland has changed. So have your obligations. As a result of this change many businesses like yours are facing new customs challenges; as one of more than 150,000 businesses in the UK that trade with the EU, you need to keep your business moving. Our tried, tested and trusted e-Customs software solution will help you take control of your import and export declarations, prioritise ! !!!   !    ! with your existing systems and grants you access to your >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24

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