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Issue 5 2012


BIFA to help boost Britain’s trade skills


The British International Freight Association (BIFA) has been asked to chair Skills for Logistics’ International Trade Occupational Craſt Skills Group and has been canvassing its membership to identify employers that can help. The group’s main purpose is to provide leadership and advice on skills issues relating to occupations in international trade, to identify skills issues across the UK and priorities for action and advise on specific solutions and skills products such as apprenticeships. Skills for Logistics (SfL) is the


Sector Skills Council for the UK’s freight logistics industries and is licensed by the Government


to


tackle the skills and productivity needs of employers in the logistics sector.


It has recently divided the core parts of the sector into BIFA hopes to hold an inaugural


meeting in September and would be happy to hear from anyone who wishes to get involved. Contact Robert Keen at: r.keen@bifa.org BIFA executive director Robert


Robert Keen


occupational craſt skills groups covering international trade, logistics


operations, mail


packages, supply chain operations management, terminal operations, warehousing, finally wholesaling, driving and fleet management.


and


Keen said that the Association would be canvassing opinion both from its regional groups and its policy groups over the next few months. He welcomed the Skills for Logistics move, saying that it would be a possible conduit to obtaining government funding for training for freight forwarders, something the industry has struggled to achieve in the past due to repeated changes in Government policy. “The criteria for obtaining funding are very strict, but if we could achieve SfL or National Skills Academy accreditation for our training, it would open up many possibilities


for us,” Mr Keen commented. BIFA’s long-term aim is to set


up its own validated qualification, probably based on distance and online learning, something which has not been available since the winding up of the old Institute of Freight Forwarders qualification about ten years ago. Although the new group will be


branded the International Trade Occupational Craſt Skills Group, its main focus will be forwarding and international logistics, he pointed out. Training of people such as shipping managers will continue to be carried out by bodies such as the Institute of Export. In part, one of the reasons for the


new group’s name is that the term freight forwarding is not widely understood outside the industry itself.


ERTS talks reach impasse


Talks between the freight industry and HM Revenue and Customs on future controls for goods moving to Enhanced Remote Transit Sheds broke up without any firm agreement on 30 August. The trade is pressing for the status quo to be maintained aſter the review highlighted some different interpretations of the current law, between the trade and HMRC. Neither side significantly shiſted its position during the talks in London last Thursday.


Current rules, which were


formulated many years ago and in fact have never been formalised, are flexible and there is little evidence of widespread tax and duty evasion, argued Peter MacSwiney, chairman of freight


soſtware firm Agency


Sector Management. “There are no written procedures for goods moving under what is referred to as ‘Simplified Transit’ or ‘Movement of Goods Under Temporary Storage within a CSP


System to ERTS facilities, but we would want to continue doing what we’ve been doing. HMRC are saying that we should not be able to clear goods before they physically get to the ERTS facility, which will add 12-15 hours to clearance times. But we argue that current procedures do protect revenue while preserving transit times – in effect, if it ain’t broke, don’t fix it. But unfortunately HMRC don’t agree.” MacSwiney, who interrupted


his holiday to attend the meeting, added that he was disappointed that HMRC did not seem to be willing to be more robust in its defence of the current system in a forthcoming EU audit. \Agreement about the existing


system is necessary as existing Customs law ceases in July 2013 and is due to be replaced by the EU’s new Union Customs Code, which


is still in the


process of finalistaion – further developments can be expected.


Ad hoc approach ‘driving up security costs’


Ad hoc directives and impractical rules on advance electronic information could hit air cargo security and drive up costs, warns the Global Air Cargo Advisory Group (GACAG). It is calling for regulators to work more closely with the air cargo industry to develop rules and regulations and for broad industry participation in the ongoing Air Cargo Advance Screening (ACAS) pilot under way in the US. All parties should consider the results of that pilot in developing global standards. CAGAG chairman, Michael Steen,


said: “We are a global industry and it is critical that we work with regulators to develop a global, harmonised approach in this area. We believe there will be great value from our industry members’ participation in the ACAS


pilot in the U.S., and on drawing lessons from that pilot towards a globalised and harmonized outcome.” In its new position paper on Air


Cargo Advance Electronic Information for Security Purposes, GACAG “fully endorses and supports” efforts to improve security and supports the use of advance electronic information for risk assessment purposes in accordance with the World Customs Organization’s SAFE Framework of Standards, but warns against national authorities taking a non-uniform approach to electronic data requirements. This could add bureaucracy and costs and result in less predictability for the aviation sector. GACAG also believes that consultation and collaboration


between regulators and industry are key to finding a workable approach. Steen added: “There has been


a recent significant increase in the number of countries seeking to implement advance electronic information but as some countries may not be following the advance electronic information standards published in the WCO SAFE Framework, it is creating confusion and additional costs...some countries have been releasing ad hoc directives - including consideration of advance electronic information prior


to


loading - without adequate time for discussion, resulting in regulations that the industry may be unable to fulfil.” GACAG is calling on the


authorities to recognize that


different segments of the air cargo industry have very different business models – for example, integrators consolidators or freight forwarders. Advance data requirements


for security risk


assessment purposes should allow for multiple originators of filings based on the availability of the information, while also limiting multiple submissions of the same information. GACAG also suggests that importers, exporters or their agents should provide authorities with goods declarations


such as house


waybill information for security risk assessment purposes as early as possible.


///NEWS Model customs solution for clay firm Clay supplier Sibelco UK has


become the latest company to implement


Pentant’s


service for clearance of shipments through the ports of


Plymouth and Teignmouth. HM Revenue & Customs no


longer have a presence in the small Devon ports, forcing Sibelco to complete manual forms and submit them by fax to HMRC’s central NCH facility in Manchester, in order to arrive and depart goods on HMRC’s CHIEF system. This proved to be both onerous, as there are oſten multiple entries per vessel, and frustrating as confirmations were not always received back. Sibelco UK customer service


manager, Tracy Ferris said: “We handle around 50 shipments a year from the Devon ports, totalling some 125,000 tonnes of clay and kaolin to non-EU destinations. The Pentant ‘CusLink’ service has provided an ideal solution for our requirements - the service speeds up the clearance process and provides better management and control. Many local EPUs in smaller ports


‘CusLink’ Bideford,


have closed and been replaced by a central facility. But at the same time, says Pentant managing director, Phil Waldron, HMRC policy is moving towards greater control of small ports and wharves, creating a requirement for inventory control using simple, cost effective solutions. “The Pentant CusLink system provides the necessary level of functionality without the high costs associated with major deep-sea systems,” he said. Cuslink is now installed at


locations including Dover, Portland, Scrabster, London (City) Airport, Warton (BAe Systems), Stop24 (Dover), Brise Norton and Thetford as well as express parcel operators, logistics service providers and a number of major importers and exporters. HMRC is likely to announce


further policy changes on soon, including a requirement for all approved port, wharf,


airport


and inland clearance facilities to have electronic inventory control systems in place by June 2013. Around 200 facilities are likely to be affected.


North-west logistics firm moves into forwarding


Third party logistics provider Torque is extending its services to include ocean, road and air freight following its move to new premises in Wigan. It has been actively building a network of clients in the North West. The company’s head of freight,


Paul Boland, commented that the move “will enable Torque to increase its coverage and presence throughout the UK as well as give clients a full end-to-end supply


chain solution with local contacts. In addition to rolling out our freight operation, we also anticipate using Liverpool Port in 2014, which will be ready to receive direct mother- ship vessels.” Torque plans to recruit people


with significant experience in the freight industry and knowledge of the local North West markets. Torque’s Wigan DC team will be exhibiting at Wigan Business Expo in October – www.wigan.gov.uk.


Cardinal Maritime completes buyout


Manchester-based logistics provider, Cardinal Maritime Group, has completed the transfer of its ownership from its founders to management via an employee trust. A deal with founder Brian Hay has delivered control of the business to the management team but


Mr Hay will continue as chief executive and maintain a 49% shareholding. The agreement, which valued


the business at £15m and was set up with the assistance of Grant Thornton and DWF, was funded by shareholder funds and funding from Barclays.


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