New Addition to the Customs Team

FLS is delighted to introduce a new senior member of our Customs team Paula Sekei

Born and grew up in Transylvania, at 17 Paula won a Maths Scholarship to The London School of Economics, on completion, she was recruited by Dachser initially as a customs coordinator, then moving through the customs ranks across 14 years, managing accounts such is Aldi and specialising in controlled excise goods and setting up bonded warehouses completing her experience as Excise Customs Manager.

Paula then decided to go back into Education and took a second degree in Forensic Psychology in Northampton before in 2020 during Brexit after being headhunted by Ziegler to provide customs mainly for London Gateway – Paula set up an office in Newport where over just 3 years expanded her team to 11 export and 12 import agents across all international trade process.

Based in Cardiff, in her spare time Paula likes to hang out with family, walking her Cavapoo, cycling, cooking and she likes to read, do puzzles dance classes (Latin Salsa, Zuma), travel and of course flip and upcycle furniture.

Ieuan Rosser CEO commented ‘fantastic to get Paula onboard, she is a significant addition to our expanding customs team, her knowledge of excise, bonded process and complex customs is unprecedented, she speaks 4 languages on top of Romanian and is a delight to work with, welcome to the FLS family’.

New Addition to the Customs Team

International team imports Emily Perkins into Silverstone

We are very pleased to introduce Emily Perkins, our newest Freight Forwarder joining the international team in our Silverstone office. Born in Northampton she went to Wollaston School in Wellingborough before studying Hairdressing at Northampton College.

After short spells working for Subway and then Holiday Inn, whilst there Emily landed a job with Kuehne+Nagel in the international customer services team. There she managed the Costa Coffee and Whitbread international shipping accounts.

After three years she moved to the PSL Group in Essex, managing German imports then migrated for another two and a half years to Yusen Logistics as Logistics coordinator then Transport Manager

Sadly, Emily is a Chelsea supporter and Northampton fan, but she loves cooking, film, music and is a self-described Friends addict (Joey is her favourite) and currently on the hunt for a Cavapoo!

Gary Murray – Operations Manager of FLS International added ‘FLS international offering has been growing steadily especially around customs and Emily has been a fantastic addition to the team, she has had a surprising detailed quality experience in the for such a young person and I’m super happy to have her on the team.’

CORONAVIRUS – Operations Update

Ieuan Rosser – Managing Director

I’m contacting all of our customers and carriers with a reassuring update for you on FLS’ current position regarding the spread of the Coronavirus and its potential threat to your logistics requirements.

FLS continues to operate as normal 24/7

Drivers and Transport – whilst the Government are predicting between 20%-40% reduction in driver availability, no significant impact is currently being felt at FLS. We have worked very hard to create a supply chain of quality carriers to support the growing business demand, and the vast amount of carriers and vehicles available to FLS will no doubt support you in mitigating potential negative impacts on your business through vehicle availability or time delays.

Border closures – generally the restrictions do not apply to freight drivers and the transportation of goods and as yet we have no issues shipping freight through any of our European lanes including Italy and Slovakia, it’s still business as usual with some small delays at delivery sites and borders with drivers being asked to complete self-assessment health questionnaires. FLS are again taking proactive measures to mitigate any issues by gaining completed questionnaires from any driver with cross border commitments.

Import – China seems to be slowly returning back to normal and we expect supply chains into the UK to return to previous levels over the next few weeks.

For Carriers – If you find yourself with increased availability please let us know we will do our best to try and help you. Also please make sure you keep your fleet profile UpToDate on the FLS Carrier Portal (https://fls.haulageexchange.co.uk/) where you can see all our available jobs when logged in – for access details give us a call or email: [email protected]

FLS operational coverage – We have no issues at present but we would like to highlight how we will ensure the continuity of the service we provide.

• All our systems are agile cloud-based solutions that operate completely independently of operator location, so we are well set from a business continuity perspective.
• We are preventing all drivers of vehicles originating from ‘locked down’ countries from coming into contact with employees when/if delivering to our on-site facilities and they are also being asked to complete a health questionnaire.
• We have vigorously tested all functions within the business, and have no issues in functioning in any office restriction scenarios for any of the business departments.
• We are offering all clients the option to conduct operations meetings via video conference.
• All purchasing and finance functions have been tested, to ensure continuity of payment to all key suppliers.
• Along with implementing “less contact” and “social distancing” protocols for all personnel, we have introduced additional cleaning schedules and provided sanitising stations and supplies across all business areas.
• We are displaying NHS and government advice across all areas and continually updating.
• In the unfortunate situation of complete remote working, all our staff has laptops, with all phone and business systems cloud-based to continue providing services as normal.

We are committed to continuing our successful operations and keeping both our employees and those of our customers safe through these difficult times and we will continue to monitor the situation as it develops and update you of any significant changes to our contingency planning.

Should you have any questions or wish for any further information, please do not hesitate to contact me.

Ieuan Rosser

CORONAVIRUS – China Freight

With the number of official cases approaching 22000, over 10% of them in a critical condition and more than 430 deaths in China, the outbreak of the Coronavirus, is extremely distressing and our thoughts go out to all those affected.

As a result of the outbreak, The General Office of the State Council has extended the Lunar New Year and Spring Festival until Sunday, 2nd February, and Monday, 3rd February. However, municipalities including Shanghai, Suzhou, Nanjing, Wuxi, Hangzhou, Ningbo as well as Guangzhou and Shenzhen have already announced the holiday will be extended until Monday, 10th February. It is anticipated that other provinces may follow the same direction as authorities attempt to slow the spread of the virus.

WHAT DOES THIS MEAN FOR YOUR SHIPMENTS?

Ports, airports, rail and China customs are still operating as per normal during the holiday period (except Wuhan which remains largely locked down). However, congestion is expected due to the limited number of trailers available.

The initial proposal to extend the holiday until 3rd February will cause delays in shipments being able to be booked. Many people in China, especially factory workers, may also be hesitant to return to work, which could impact production and lead to still further delays.

The first two weeks following this holiday are usually a peak period, meaning there’s no guarantee of securing vessel space.

We also expect to see reduced availability over Air freight as carrier modes are switched for more urgent loads.

Please advise your purchasing/planning departments to take this into consideration, as it will undoubtedly cause significant disruption to your supply chain but rest assured FLS will work hard to minimise this wherever possible.

If you have concerns regarding freight due to move in the near future, please do not hesitate to speak to your usual contact at FLS, who will be able to provide you with the latest information and alternative transport options dependant on the urgency of your product.

We will continue to keep you updated and will do our utmost to minimise the impact on your business. We would additionally urge you to monitor media/government body outlets for developments as the situation evolves, as well as keeping in touch with your suppliers.

Brexit Update – 31st Jan

The UK will be exiting the European Union, following the result of the national referendum on 23 June 2016, which is now currently scheduled for 31 January 2020.

The current rules on trade, travel, and business for the UK and EU will continue to apply during the transition period, and customs clearance documentation is not required. So from an import and export with Europe point of view, it is business as usual for FLS including rates, vehicle availability and transit times.

As previously advised we would suggest that you should be providing commercial invoices and packing lists for your European shipments in readiness for future customs clearance requirements.

Once any deals, and requirements are released we will be providing all customers with full details and will be available to talk through what might affect your business and its supply chain.

… your business can take some actions now to prepare for 2021.

You should also decide how you want to make customs declarations and whether you need our support with this. As we’ve heard a no-deal Brexit, is still on the cards, and if implemented will involve a significant increase in customs administration. HMRC is recommending you engage a customs partner to assist you during this period and FLS is perfectly placed to assist you with your customs activity during this period and beyond whilst still providing first-class freight transport options.

A summary of issues, concerns and actions follow below:

Whether you trade with the EU, operate in the EU or rely on companies based there, It’s going to affect your business and FLS will do our best to keep you updated with all Brexit-related developments in the logistics industry and to make your operations as Brexit-proof as possible.

Day 1 No Deal Scenario

Main Concerns

In a no-deal scenario: –

• Businesses will not have enough skills and capacity to comply with customs declarations on day 1
• Agent capacity is unlikely to meet demand
• Many small businesses may cease to trade

Summary of Day 1 easements

• Agents may be reluctant to take on business from new customers lacking knowledge of international trade and/customs procedures

HMG Government objectives:-

• Maintain security
• Facilitate the flow of goods
• Protect revenue and ensure compliance with standards

Day 1 easements:-

• RoRo locations
• Transitional Simplified Procedures
• Guarantee Relaxations

Longer-term:-

• Data-driven solutions are being reviewed for smarter borders

Health Warning

• Many matters are still under discussion
• Some look good on paper but are unproven
• Nothing about Ireland
• More changes are expected: –
• Policy
• Procedures

Ro-Ro Day One – Import

• The importer must have an EORI number
• Pre-lodge import declaration in CHIEF or use EIDR
• Entry Reference or EORI number to be provided to the carrier
• Safety and Security declaration to be submitted and ENS reference to be provided to the carrier prior to boarding
• Authorities indicated that additional checks will be kept to a minimum – intelligence-led
• As goods pre-entered and have safety and security declarations submitted, they should be free to leave the UK port of arrival
• Goods have to arrive into the UK- entry updated in CHIEF by close of business on the next working day

• Arrival creates the tax point –monies to be collected
• Carriers have to have the ENS or EORI number no legal requirement for this to be passed to the ferry operator.

Ro-Ro Day One – Exports

• A combined customs export and safety and security declaration will be required
• Pre-lodge any supporting documents on relevant systems
• Exporter or f/fwdr advises hauler if P2P granted
• For interventions requiring a physical goods check the cargo must be taken to Designated Export Place (DEP)
• Hauler checks in for boarding
• General rule no departure message generated
• High-risk goods require a full departure message
• Check EU import processes Transitional simplified procedures
• Traders can register to use TSP to delay full declarations at RoRo locations
• TSP will be reviewed 3 to 6 months after 29 March 2019
• 12 Months’ notice will be given when HMG decides to withdraw

Transitional simplified procedures

To be eligible, traders must: –

• Be established in the UK
• Have the intention to import goods from EU into the UK
• Have an EORI number

Traders are not eligible if: –

• Goods are imported from outside the EU
• Goods are subject to a Customs Special Procedure or control
• They are an intermediary or acting on behalf of someone else
• History of non-compliance

Registration Process

Traders will require the following to register: –

• EORI number needed in order to trade with the EU
• Unique Taxpayer Reference (if applicable)
• VAT registration number (if applicable)
• Business name and UK address
• Contact details
• Online Registration available from 7th February TSP Declaration Process

Controlled Goods

• Controlled goods mainly need: –
• A licence
• Excise products such as tobacco or alcohol
• Send a simplified frontier declaration before goods are imported
• Ensure goods are accompanied by fulling supporting documentation e.g. licences etc

• Send a supplementary declaration by the fourth working day of the month following the arrival of goods into the UK
• HMRC will collect by direct debit on the 15th day of the month after the goods have arrived in the UK.

TSP Standard Goods process (Transitional simplified procedures are currently suspended)

• The trader makes a declaration directly into their commercial records when goods cross the border
• The trader will provide the hauler with their EORI number as proof that goods are subject to a TSP process
• This is followed by a supplementary declaration by the 4^th working day of the month following the arrival of goods in the UK
• All Duties and Taxes will be taken by Direct Debit on the 15th day of the month following the arrival of goods into the UK

Changes to CFSP  (Customs Freight Simplified Procedures)

Forwarders alternative to TSP

• The problem has been the question of Customs Representation where forwarder uses their own Deferment
• Easement to allow customs agents to act as a direct representation whilst using their own CFSP authorisation
• The trader will be solely liable for VAT
• The policy is time-limited, but HMRC will give 12 months’ notice period when this policy changes
• Applies to all ports in UK and trade lanes
• Easement limited to goods being released to free circulation

Duty Deferment

• Traders must have a duty deferment account to use TSP or agents CFSP: –
• Direct debit mandate required
• Allows HMRC to take a monthly payment of duties
• Direct debit taken by 15th day after the month that the supplementary declaration is submitted

Day 1 easements:-

• Traders will not be required to meet CCG criteria
• Traders will have until 30 June 2019 to submit a financial guarantee
• Traders can still apply for CCG, those with AEO-C can still seek a reduction/waiver from the guarantee
• Traders will not be required to meet CCG criteria nor provide a financial guarantee for:-
• Inward Processing
• Outward Processing
• Temporary Admission
• End-use
• Customs warehousing
• Still need to meet criteria for the special procedure
• The policy will be monitored, 12 months’ notice will be given of traders

Guarantees for transit

• Requirements for transit are governed by the CTC
• CCG will be required to cover several transit movements
• An individual guarantee can be used for several movements
• An individual guarantee can include a guarantor undertaking from a bank or financial institution and a cash deposit
• The level of guarantee depends on the territories being transited
• As guarantees can take several weeks to set up, traders should contact the appropriate financial provider-NOW

Parcels –day 1

• Low-value VAT relief on parcels removed
• For shipments valued at £135 or less, the overseas sender is liable for VAT
• An overseas trader must register and account for VAT showing an identifier on their paperwork
• Goods above £135 will incur VAT with declaration
• LVBI is still available in the short term

Value-added tax

• Basic VAT procedures to be kept the same where possible
• Postponed VAT accounting for imports to be reintroduced (for VAT registered traders only)
• Import VAT to reclaimed quarterly
• Non-postponed accounting will incur VAT immediately
• Import VAT statement similar to C79 will be available from the digital services: –
• The statement used to support VAT return
• The problem what to use as evidence of export where no departure message generated

If you move goods into or out of the EU, you must get an EORI number.