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Issue 1 2019 - Freight Business Journal


Pragmatism and flexibility will keep UK on the move other side – and the law is the law,” >> 1


only took a few seconds for a truck to make a


customs declaration, this was to ignore the 30 minutes or more that it took to prepare the declaration – and any traffic that had failed to go through this process on arrival in port had the potential to clog up the system.


Ferries and shuttles at the sharp end


One solution might be to put the onus on ferry companies and Eurotunnel not to accept freight bookings without a declaration. However, this presupposes that they would be willing and able to ‘police’ their own customers. The information on inbound


consignments could be transmitted directly into HMRC’s computer system - mostly likely the existing CHIEF system as it is now highly unlikely that


the replacement


Customs Declaration Service (CDS) will be ready in time for the majority of importers or exporters – where customs would be able to risk-profile it and, possibly, select specific trucks or consignments for further examination. However, it is still not known


how HMRC would communicate to truck drivers that they had been selected for intervention and what measures, if any, would be in place to stop or divert such vehicles. Nor is it clear, says Meacock, how to deal with any drivers that decided to ignore a request to pull into a customs bay on arrival in the UK and headed straight for the motorway. The other major unknown


factor was the level of veterinary and phytosanitary that could be imposed aſter Brexit and whether these could take place away from the physical border. MacSwiney pointed out that while HMRC is committed to facilitating trade, checks on inbound food consignments were the responsibility of UK Border Force


who might take a different view. Many of these issues could be


resolved if such physical checks could take place a few miles from the port or Tunnel - but that may not be legal under EU or World Trade Organisation rules, he said. The future status of the EU’s


ICS security regime and whether declarations would be required was still unclear, Meacock added. Draſt UK ICS specifications allow for new ro ro mode of transport codes which would at least suggest the requirement. Meacock suggests that those


traders and operators who are in a position to do so should consider making maximum use of trade facilitations. He points out: “Fortunately, The EU and the UK have agreed that the UK will remain in the Common Transit Convention. This will benefit trade in being able to start and terminate transit movements away from the immediate port of entry at inland clearance locations, customs warehouses or temporary storage facilities depending on national arrangements; in the UK, for example the use of External Temporary Storage Facilities (ETSF) can allow traders to move goods away from the bottleneck of the ports, airports and border crossing by using a customs approved electronic inventory system.” However, it was highly unlikely


that companies that had not yet started the process of obtaining the necessary authorisations would be able to have them in place by Brexit Day if there is no deal, he added. There are also concerns over


the ability of the customs broking industry to cope with an upsurge in entries. Meacock says: “Indications are though that if you do choose to use a broker to submit your declarations, they may not have the capacity in the case of a No Deal and could look for you to deliver data electronically to reduce data entry. If you are to be the first-time importer or exporter,


you need to ensure you have an EORI registration in the respective territory as mutual recognition of EORI will not exist in the case of no deal.” Companies should also check systems to ensure that any handling of UK/EU orders are adjusted to reflect the UK status as a third country. Companies that leave


arrangements to the last moment may find that they cannot get systems in place or resources available to assist them should there be a No Deal scenario. Whilst some traders may look to use a broker or forwarder to perform this on their behalf, traders with simple requirements might be able to lodge their own declarations or at least carry out the maximum pre- preparation work prior to handing over to their broker. Over many years soſtware has


been refined to make it as simple to use as possible. However, it was unlikely that firms that were not already in a position to do this would be able to do so in two months’ time.


Exports from the UK


For exports, pre-lodged declarations will be required (as is currently the case for all third country exports), but for ro ro exports, these will be declared as ‘arrived’. If the declaration receives ‘permission to progress’ (P2P) then the vehicle can proceed to the ferry as now. If selected for examination, the goods would have to be presented to Customs. Exports from the UK to the EU could in fact pose a greater problem than imports, MacSwiney said. France and other countries with


direct ro ro links to the UK would be bound by EU law to check and carry out full customs clearances, so Customs could well be more of an issue in this direction, said MacSwiney. “I think the UK could sort out its side of the border reasonably easily, but we cannot influence what happens on the


carriers notifying


he said. He added that it was unclear whether goods being arrived into the EU from the UK would need an Entry Summary Declaration as is normally made for all third country goods entering the EU. Meacock added that French Customs have planned for a pre-lodgement facility with


French Customs of loading and by using ANPR technology to manage vehicles selected for checks whilst allowing those not selected quick release from the port. Soſtware firms like ASM and


Descartes have been unable to get much of the information needed to modify their systems; indeed, there is as yet little clarity on what they would be changing their systems to do.


Non-disclosure agreements


The issue of post-Brexit customs had been conducted under Government Non-Disclosure Agreements which, while possibly helping to strengthen the UK’s hand in negotiations with the EU were also making it very hard to get meaningful


information out


to business. ASM itself has not yet been officially told what needed to be done, still less had shippers and importers been informed whether they would be asked to make customs entries. “ASM does have the technology


to automate entries – which would be realistically the only way of doing it – but we would need to be able to build links to commercial systems, and that would take a minimum of 18 months to do,” MacSwiney pointed out. ASM is anticipating that more


companies – traders, retailers and hauliers - will need to buy and install soſtware and train staff how to use it. It is also expecting an upsurge in enquiries for its helpdesk and has been trying to recruit extra staff. “However, the problem is that you cannot easily find such people,” says MacSwiney. Meacock said: “All we can do is make preparations, we haven’t yet been told definitively:


‘This is what you will need to do.’ Also, we are now fast approaching the two-month minimum period we would need to make any changes. And moreover, it’s not just our system – companies will also need to interface with us, and that takes time too.”


Keeping the country moving


Whether or not there could be total paralysis of the UK supply chain depended largely on the approach that HMRC, Border Force and other authorities chose to take, said both commentators. Meacock points


///NEWS


out that the UK Government has also admitted to the National Audit Office that in the case of No Deal, the border would be “less than optimal” - something everyone should be prepared and make allowances for. This almost amounts to a tacit admission that intervention by the authorities will have to be limited in the interests of keeping traffic flowing. He commented: “Will we see Armageddon? Probably not, but equally it won’t be a garden of roses either. There are ways you could keep things moving, largely by not doing certain things.”


Daily Groupage is star of the show at BIFA awards


Luke Brown of Daily Groupage Services has been named Young Freight Forwarder, just one of the 11 winners in this year’s BIFA UK Freight Service Awards, held in London on 17 January. The winner of the newly-


introduced Apprentice of the Year


category was Thomas


Turner of Panalpina World Transport. The winners of the nine


general, modal, and specialist categories were: Specialist


Logistics Services, Charles Kendall Freight, Hemisphere Freight Services, OIA Global, Metro Shipping, Uniserve Group, NNR Global Logistics, Bermuda Forwarders and Freightport Logistics. The awards luncheon was


hosted by double Olympic champion Colonel Dame Kelly Holmes who gave a motivational speech about what it takes to be a winner whilst dealing with physical and emotional issues.


Get in the running to pocket a Multimodal award


Snooker legend Steve Davis will host the 2019 FTA Multimodal Awards in Birmingham on 18 June. The Awards recognise best in class across all modes of transport and logistics services, including Shipper of the Year and Young Logistics Professional,


as well as the Multimodal Personality of the Year. Nominations for the awards can be made online until 29 March. Over 650 guests are expected


to attend the ceremony at the NEC, on the first day of Multimodal 2019.


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