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www.bifa.org


Robert Keen’s Column


BIFAlink


BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266 Web site: www.bifa.org E-mail: bifa@bifa.org (A company limited by guarantee. Registered in England: 391973. VAT Registration: 216476363)


Director General Robert Keen r.keen@bifa.org Executive Director Robert Windsor r.windsor@bifa.org Executive Director Spencer Stevenson s.stevenson@bifa.org Policy & Compliance Advisor Mike Jones m.jones@bifa.org Policy & Compliance Advisor Pawel Jarza p.jarza@bifa.org Policy & Compliance Advisor David Stroud d.stroud@bifa.org Training Development Manager Carl Hobbis c.hobbis@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org


Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors Robert Keen, Robert Windsor, Mike Jones, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Pawel Jarza


Regional Consultants to BIFA Scotland and the Borders Len Hobbs: bifa.scot@gmail.com Northern Ireland Carson McMullan: carsonconluce@aol.com Midlands and the North Paul Young: youngyes@aol.com London West and the South West Mike Jones: m.jones@bifa.org


Anglia, London East and the South East Paul Newman: paul@pnauk.com


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.


January 2020


Regulators tighten up compliance


Welcome to 2020 – and it would seem life is going to get even tougher for the forwarding sector with an increased emphasis from the regulators on compliance. If you only look at one item in this month’s BIFAlink, I recommend that you read the article on page 10-11 which is titled ‘Protect your staff over due diligence’. Whilst the message from BIFA of ‘Know your Customer’ has been consistent for many years, a recent issue involving a BIFA Member has led us to write this item.


Many years ago when I was an entry clerk, I was fined for using the wrong currency


code on a declaration. Whilst from my perspective I had simply made an error under the Customs and Excise Management Act (CEMA), I had committed an offence. Using


CEMA, an entry clerk can be charged with acting recklessly with severe penalties. Further essential reading for anyone completing Customs declarations or managing an import entry


department is our Good Practice Guide on Representation. It can be found with other BIFA guidance on our website. Click on the Tab INFORMATION and look for THE GOOD PRACTICE TOOLBOX.


Whatever your view on the outcome of the General Election, the result means the UK will leave the EU at the


end of January. Furthermore, with a transition period BIFA Members can now use 2020 for a more orderly period of preparation. “Business needs certainty” has been a constant refrain of the Confederation of British Industry (CBI) for the past few years as the UK negotiated the terms of leaving the European Union. BIFA Members have echoed this message to us as we passed on the proposed solutions for border activity from government departments, which have been lacking in detail at times. Whilst there is much concern that the negotiation of a trade deal with our EU neighbours within a year is a tall order, we currently have complete regulatory alignment with the EU so with goodwill on both sides this may be possible (although BIFA is not venturing into political predictions!)


Do you use a credit referencing agency? Our friends at the European Freight Trades Association (EFTA) were


recently made aware of a company where a winding up petition had been issued and publicly advertised. Despite this, a credit referencing agency was giving a score of 90 out of 100 with a recommended credit limit of £195,000 and a contract limit of £775,000. The accounts of the company looked very impressive, although they had not been prepared by a firm of accountants. EFTA continues to warn its members that credit referencing agencies simply cannot spot too-good-to-be-true accounts and that you should be on your guard at all times. EFTA is a credit agency and a BIFA Associate Member. Membership costs less than £1 per day (with BIFA Members getting a 25% discount on the first year).


Lastly, Incoterms® 2020 has now come into effect but do not expect interpretation to be any simpler.


Incoterms® are often called rules, but there is no means to arbitrate disputes which are left to commercial negotiation. The first formalised International Chamber of Commerce (ICC) guidance was issued in 1936 in an attempt to codify existing trade terms such as CIF or FOB that had been in existence for many years prior to 1936. For the guidelines in the latest Incoterms® book to be followed, an invoice or contract stipulation of the term should be used, followed by Incoterms® 2020. It is my view that the majority of international traders will continue to use just the three-word term, so there may still be grey areas where the actual intention of the parties will need to be understood.


In the February edition of BIFAlink we will be publishing an infographic guide to Incoterms® 2020.


Robert Keen Director General


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