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to be careful that it doesn’t


swamp us. Aſter all, we are not just a brokerage – we have other activities like forwarding that we still need to take care of.” Brunel, he added, “had just


about hit its limit” in terms of the amount of extra clearance business it could take on. However, customs brokers


needed to be wary in adding extra capacity and recruiting new staff. It was possible that measures would be put in place to ease the customs burden in ports like Dover. Moreover, when faced with customs clearance bills running into thousands of pounds, it was likely that many customers would adapt their supply chains


to reduce this. Multi-franchise


operations, placing separate orders from an EU supplier might in future create a single UK buying organisation, for example. Wholesalers might be set up to consolidate purchases into larger loads and so reduce the number of individual customs clearances. And there could of course be a vast reduction in companies clearing goods in the UK and exporting them to the EU (quite a number of e-Commerce firms used to do this before Brexit) as UK-cleared goods will no longer be in free circulation with the EU. Taken together, all these factors


could ensure that any boom in the number of customs clearances will be short lived.


New business welcome at Grimsby agent


While much has been said about the impending shortage of customs clearance agents in the run up to Brexit at the end of 2020, Grimsby-based Gaston Schul is “still trying to accept new clients”, says manager customs and trade UK, Rob Flowers. These could be new as well as existing customers, he adds. Gaston Schul has taken on


and trained additional staff to cope with any increase in customs clearance work, both experienced people and trainees, he says,


taking advantage of


government support schemes for customs-related training or IT. It’s hard to say how well


prepared businesses are for the end of the Brexit transition period, Flowers continues. However: “Personally I think it will be OK,” he adds. The fact that talks over the


free trade deal between the UK and EU dragged on until the last moment should not really affect things


too much, in


The philosophy of the new Customs X service launched by international


freight


Issue 1 2021 - Freight Business Journal


27 forwarder


Robert Falconer on 6 November in the run-up to the end of Brexit transition is as much about ideology as technology, he says. The service has been set up as a neutral operation – unlike some of the customs agencies that have been created by forwarders, there is no obligation on Customs X customers to use his services. The service is open to traders and hauliers, among others. Nor is there any obligation


on customers of Falconer’s groupage services between the UK and Europe to use Customs X for clearance, though he would encourage them to do so. Falconer says: “There is no


Flowers’


Opinion. “VAT is postponed for most importers and a lot are looking to sell DDP (delivered duty-paid),” he points out. A ‘No deal’ would mean only a slight increase in the number of additional customs tasks that would need to be performed, he believes.


Dover agent in the eye of the storm


Customs clearance agents in the Channel ports are in the eye of the Brexit storm and it is there that the sector is under the greatest pressure. Dover agent Samphire Cargo says it is now at full at capacity and unable to take on any more work, despite tripling its staff strength. Managing director, Gary


Smith-Watson explains that the company has taken on new customers as well as servicing the greater needs of existing ones. To cope with the increased


pressure, Samphire Cargo has increased its staff numbers from six to 18 since October in preparation for the changes. The company has also improved and increased its IT systems and


soſtware, taking advantage of the government grants that are available. However, in Smith-Watson’s


experience business in general is not very well prepared for the Brexit changes. Many companies, even in early January, were still contacting Samphire and asking what they have to do. The way in which Brexit


negotiations dragged on until the very last moment in December has also made it hard for Samphire Cargo to make its own preparations, though thankfully the industry was spared the ordeal of a ‘No deal’ Brexit. Gary Smith-Watson says: “Thankfully it didn’t come to that as it would have meant more work for us as an intermediary.”


need to change carriers or freight forwarders. The idea behind Customs X is just to insert ourselves into the supply chain at the border rather than requiring the need to change companies supply chains.” Customs X has offices in East


London and near Calais, the main port of entry for exports from the UK to the EU. It also uses sophisticated


systems to ease the burden of making customs entries as far as possible. Customs X’s system, says Falconer, “allows us to process data a lot quicker and push more entries through the system, using less labour.” Companies are being


encouraged to set up EDI links with Customs X. While there is a task involved in structuring the data, it will take a lot of the work out of data entry and in effect, create what amounts to a pre-lodged entry. Entries can also be accepted through emails or even on paper, but for these manual data will probably be needed. Setting up EDI links would also probably not be viable for small volumes of entries. Falconer adds: “We are also


working on how to use the GVMS (Goods


Vehicle Management


System, the front end between hauliers and the customs system currently under development).” However, at the time of writing, details of GVMS and its state of readiness were still sparse. Automating customs entry will


save firms both time and money by ensuring all documentation is fully compliant with customs


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regulations and allow business owners to focus solely on their core business. It could also ultimately avoid unnecessary costs from fines due to human error. There is also a bolt-on training


service to educate businesses on


responsibilities


understanding in


their performing


trade under a given contract. Falconer commented: “Customs X will be predominantly aimed at supporting those in the SME sector who may not have a full understanding of their individual Incoterms, as each market works in different ways. Usually SMEs have little to no understanding of their Incoterms, which can lead to issues down the line through the supply chain – which affects payment of goods, delivery


the entire process and takes away the headache of becoming Brexit- complaint.” While Customs X’s automated


systems will take a lot of the data entry burden off companies’ shoulders, it cannot remove the need for human intervention entirely,


Falconer continues.


“You still need to have a person checking the entry, and there is a shortage of people with customs knowledge in the industry. However, we have restructured internally and trained more of our staff in customs procedures.” Recruiting experienced staff for


schedules, increased costs and negative customer interactions. “The speed of Customs X will


also provide businesses with the competitive edge as it streamlines


the office in Calais has also proved challenging as it is a long time since customs clearances were routinely performed at the ro ro port.


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