LOGISTICS, FREIGHT & TRANSPORTATION
BUSINESS NETWORK
Brexit and changing regulation for importers
By Andrew Ford, branch manager, Davies Turner & Co Ltd
magnitude of the changes. Having gone from a free border and limited documentation requirements
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to having to prepare import and export declarations and ensuring that the paperwork required is supplied correctly to meet the new requirements has caused confusion and delays. The first few weeks of the New Year brought a few delays as documents
has to be changed to meet the new regulations, however volumes were about a third of normal as the majority of companies were waiting to see how the new regulations affected them, although this gave companies and clearing agents time to sort through the issues and solve them, it highlighted the magnitude of how these changes will affect shipping as we know it
‘Some carriers are also only taking freight into the UK and going empty back to the EU as they cannot afford the delays on exporting from the UK’
Since then though the volumes have increased dramatically, due to documentation provided by some importer and exporters not meeting the new regulations - there has been backlogs built up at clearing hubs and warehouses as shipments are delayed while the incorrect documents are amended, now affecting cargo that is “OK to go” while the backlogs are cleared. This has resulted in some major logistic providers and courier operators suspending their services to clear these backlogs. Additionally, some carriers are also only taking freight into the UK and going empty back to the EU as they cannot afford the delays on exporting from the UK. This then results in an even more limited supply of freight services, which has impacted on freight rates, which have soared in the last few weeks. The main issue, especially with export, is that supplier invoices are
missing crucial information to meet the new regulations. The main things that need to be included are as follows:
ince the UK has left the EU the requirements to import/export to/from the EU have changed dramatically and although carriers, importer and exporters have tried over the last 12 months to get ready for the change through the advice given through various sources, they have not prepared them for the
• The EORI number. This is a must for all UK companies engaged in import and export. It can be obtained by visiting
www.gov.uk/eori
• The shipper’s full address, telephone number, as well as the importer’s EORI number, full address and telephone number. If there is a different delivery address then this must be shown along with the terms of sale (ie FCA, DAP, DDP - including named place).
• Invoice number and date along with full packaging details. Number of packages weight and dimensions. Also include the Currency of the values and a manual signature.
• The most challenging part is the description, as this needs to show a Commodity/HS Code (eight-digit code for Export and 10-digit for import) a value and country of origin also the net weight. If there are multiple Commodity/HS codes and Origins then these will have to be shown as separate lines including each of the above items which can mean invoices can become quite long.
• An origin statement on the invoice that is the following format ‘The exporter of the products covered by this document [exporter EORI] declares that, except where otherwise clearly indicated, these products are of [UK/EU delete as appropriate] preferential origin’
The above points will cover most of the issues currently causing delays but as multiple EU countries are interpreting the new regulations slightly differently there could still be issues. However these do cover the main issues occurring over the last few weeks. It has certainly been a shock to the system for us all; forwarders, importers and exporters alike.
business network March 2021 73
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