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Brexit Update

Brexit Update

Brexit Update

Now that the UK has officially left the EU albeit we are now in the Transition period where nothing much will change, it seems that the UK Government vision for Brexit is a UK which is completely independent from the EU, whereby the UK will no longer be aligned to EU rules.

This indicates that the UK will at the very best have a ‘Basic’ FTA with the EU. The Prime Minister Boris Johnson has stated that “There is no need for a free trade agreement to involve accepting EU rules,” and that he is seeking a ‘Canada Style’ Free Trade Agreement with the EU. Something we suggested would be the case over a year ago in an earlier blog. However, even a Canada Style FTA now sounds ambitious. If you would like details on the original blog please contact me.

Among individual countries, China is South Africa’s biggest trading partner, with imports and exports between the two nations totaling R263.9 billion in 2013.

It now appears that any trade deal with the EU will be subject to customs checks and for some goods border checks as well, there is now no guarantee that easements which were introduced as part of a cliff-edge Brexit will now be introduced such as TSP, zero temporary tariffs, and even VAT postponed accounting. The EU is now being talked about in the same vein as the USA and other Non-EU countries as being ‘the rest of the World’.

Added to this is the fact that the PM has said the Transition Period will not be extended beyond the end of 2020. Therefore it is very important that businesses start preparing for being ready which goes far deeper than just having your EORI number. Businesses that start planning now will ensure that they are ready for 2021. Hooper and Co will be hosting a number of Training workshops over the next few months these will cover ‘Getting ready for Brexit’, ‘Free Trade Agreements’, ‘Customs Procedures’ and ‘Origin of goods’, etc. If you are interested in attending one of these Workshops or finding out more please do not hesitate to contact me at david@hooperandco.com , there are discounts to existing Clients of Independent Freight and Hooper and Co.

Call us to obtain a free quotation on:  +44(0)2476 343037

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Air Freight

Tailor made solutions to meet your requirements

Sea Freight

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Please call us on

+44 (0) 247 6343 037

For more information on Imports and Exports after Brexit, one of our freight experts will be happy to help.

"

Prepare your business for Brexit.

A Comprehensive Brexit Planning Checklist

Trade between the UK & South Africa

Trade between the UK & South Africa

Trade between the UK & South Africa

When South Africa was pulled out of the Commonwealth of Nations in 1961, the United Kingdom opposed monetary and economic sanctions. Britain had many key trade links and, in particular, needed South Africa’s gold.

Exports today include corn, diamonds, fruits, gold, metals and minerals, sugar, and wool. Machinery and transportation equipment make up more than one-third of the value of the country’s imports. The country’s diamond industry is the fourth-largest in the world, with only Botswana, Canada, and Russia producing more diamonds each year.

Among individual countries, China is South Africa’s biggest trading partner, with imports and exports between the two nations totaling R263.9 billion in 2013.

The UK signed a continuity deal with six African nations – South Africa, Botswana, Lesotho, Namibia, Eswatini (formerly Swaziland) and Mozambique – on 9 October. Trade between the UK and these six countries was worth £10.2bn in 2018. 

As we leave the EU and create a new independent UK trade policy, we will build further on our £9 billion annual trade with South Africa, our biggest trading partner in Africa, and champion free trade to help developing countries combat poverty and grow their economies.

The UK remains an important strategic partner for South Africa globally. South Africa and the UK have enjoyed mutually beneficial preferential trade since the entry into force of the first reciprocal trade agreement between South Africa and the EU in January 2000.

If you need to ship goods to South Africa we offer a range of Professional Freight Shipping Services via Sea, Air & Road. Our Dedicated Customer Services Team at Independent Freight and Hooper & Co who are always on hand to help and solve your problems quickly and efficiently. 

Call us to obtain a free quotation on:  +44(0)2476 343037

Need more information?

Find out how we can help your business

Air Freight

Tailor made solutions to meet your requirements

Sea Freight

Comptitive rates ensuring cost efficiency + reliability

Please call us on

+44 (0) 247 6343 037

For more information on Imports and Exports after Brexit, one of our freight experts will be happy to help.

"

Prepare your business for Brexit.

A Comprehensive Brexit Planning Checklist

Brexit Outcomes – November Update

Brexit Outcomes – November Update

Brexit Outcomes – November Update

By David Hooper, November 19th, 2019, Category: General News

The outcome of Brexit now depends on political developments and the outcome of the General Election on the 12 December. This article aims to summarise some of the possibilities following the outcome of the General Election and identify how this will affect businesses involved in international trade with the EU.

Withdrawal Act is Approved

The Government put forward the Withdrawal Act and Parliament approves it before the end of January – this would result in the UK leaving the EU before the end of January 2020. However, under this scenario it’s likely that there would be a 12 month transitional phase. Therefore there would be no significant change to the way businesses export and import to and from the EU until the end of this transitional phase.

Withdrawal Act Removed or Rejected

The Withdrawal Act could be removed by Government or rejected again. This may lead to a further extension of Article 50. However, the EU would need to approve this. Under this scenario nothing would change but would lead to more uncertainty.

Leave with no-deal in Jan 2020

The UK could leave the EU without a deal before the end of Jan 2020. This scenario does not go away and businesses would again need to prepare in the same way as before. This would result in overnight changes to the way shipments are exported and imported to the EU at the end of January.

Revoke Article 50

The new Government could revoke article 50 and cancel Brexit. This would obviously result in the UK staying in the EU and procedures would remain the same.

Extend Article 50 or Another Referendum

A new Government could hold another referendum and ask for article 50 to be extended. Again this would be at the discretion of all the EU member states. Procedures would remain unchanged until this outcome was resolved.

In the end, all options are still very much on the table, if option 1 does go ahead and trade talks breakdown a No-Deal Brexit could still happen at the end of that period. If a Free Trade Agreement under option 1 is agreed then goods non-originating in the UK and EU would still be subject to tariff measures.

Our Advice to You

Therefore we recommend that businesses use this time to ensure they are prepared for a hard Brexit. We have already worked with a large number of our clients to ensure that they are prepared for this scenario. Some clients have also used this opportunity to start exploring new markets further afield. If you need advice or are planning on entering new markets, contact us and we can advise you on your options for sea freight and air freight to these new countries. Don’t forget we operate as a customs broker and can work with you to ensure all your paperwork is compliant.

Please call us on

+44 (0) 247 6343 037

For more information on Imports and Exports after Brexit, one of our freight experts will be happy to help.

"

Prepare your business for Brexit.

A Comprehensive Brexit Planning Checklist

Changes to the New International Incoterms Rules

Changes to the New International Incoterms Rules

Changes to the New International Incoterms Rules

By David Hooper, September 22, 2019, Category: General News

As most people will be aware following our recent blogs and Newsletters the Incoterms® rules have now been updated for 2020.

On the release of Incoterms® 2020, ICC Secretary General John W.H. Denton AO said:

“Incoterms® 2020 rules make business work for everyone by facilitating trillions of dollars in global trade annually. Because they help importers and exporters around the world to understand their responsibilities and avoid costly misunderstandings, the rules form the language of international sales transactions, and help build confidence in our valuable global trading system.”

What are the main differences between the 2010 and 2020 rules?

The ICC have stated that there is a clearer demarcation and connection between the sale contract and ancillary contracts, a re-ordering within the Incoterms® rules giving delivery and risk more prominence, plus other changes which though cosmetic in appearance, are in reality substantial attempts on the part of the ICC to assist the international trading community towards smoother export/import transactions.

One of the major changes has been the change from DAT (Delivered at Terminal) to DPU (Delivered at Place Unloaded). For Incoterms 2010 there was little difference between DAT and DAP, other than for DAT the seller delivered the goods once unloaded from the arriving means of transport into a ‘terminal’ whereas in DAP, the seller delivered the goods when the goods were placed at the disposal of the buyer on the arriving means of transport for unloading. The terms have been changed to DPU to reflect the reality that the place of destination could be any place and not a ‘terminal’. If not a terminal the seller must ensure it is a place where they can unload the goods. As the seller is responsible for the unloading, the order of the terms has been changed so that DPU comes after DAP.

In terms of the actual abbreviations themselves the rest are the same as 2010, with EXW, FCA , CPT, CIP, DAP, DPU and DDP for any mode of transport and FAS, FOB, CFR, CIF for sea and inland waterway only. As before each of the Incoterms® needs to be carefully checked and agreed in the contract with the seller using the correct terminology, the port, place or point of delivery needs to be clearly stated to ensure the transfers of risks are visibly stated.

Our next blog will again look at Incoterms but from the perspective of Brexit, as when we leave the EU, customs procedures will become common and the Incoterms® will become extremely important in the future.

To keep up to date with other freight-related news and articles please follow us on LinkedIn to stay informed.

If you have any upcoming projects that we can support you on, please contact us directly on +44(0) 2476 343 037 and we’d be happy to help manage your freight journey.

Need more information?

Find out how we can help your business

Air Freight

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Sea Freight

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Please call us on

+44 (0) 247 6343 037

For more information about new international incoterms. One of our freight experts will be happy to help.

"

Prepare your business for Brexit.

A Comprehensive Brexit Planning Checklist

5 Things you need to know about Customs after Brexit

5 Things you need to know about Customs after Brexit

5 things you need to know about customs after Brexit

By David Hooper, September 5, 2019, Category: General News

As the political situation stands, the UK is set to leave the European Union on the 31st of October 2019, regardless of whether the government secures a deal.

  “It is therefore important that you have some understanding of what to expect after this time to enable you to make the necessary preparations.”

1. An end to the customs union

The customs union that is currently in place makes sure that every member of the EU equally charges import duties to those outside the EU. This means that members of the EU are free to trade without being checked at borders. However, Brexit will see an end to this union. This means that you can expect customs checks at borders for both air freight and sea freight.

1. An end to the customs union

The customs union that is currently in place makes sure that every member of the EU equally charges import duties to those outside the EU. This means that members of the EU are free to trade without being checked at borders. However, Brexit will see an end to this union. This means that you can expect customs checks at borders for both air freight and sea freight.

2. Be aware of the origin of your goods

Ensure you know the country of origin for your goods being exported – for the goods to be classed as being of UK Origin they must have been wholly produced in the UK or are items that have been sufficiently transformed during a manufacturing process. The Tariff Heading of the product will determine which rule applies.

3. A change of business in Ireland

One of the many areas of contention regarding the UK’s exit from the EU is Ireland. In the event of a no-deal Brexit, or an EU exit with ‘unfavourable’ terms, exports could be subject to high tariffs and border checks could be introduced, making trading extremely difficult. Since the Irish ‘backstop’ is yet to be agreed upon, exactly what trading will look like post-Brexit is unlikely to be made clear until this time comes.

4. You may need an import licence

On certain goods after Brexit, you may require an import licence to be able to import your goods into the UK. You will need to pay for customs clearance and declare your imports. A commercial invoice from your supplier, which states exactly what has been sold and the cost of the item, is also likely to be required.

5. A new trade authority

The current system which manages trade complaints with the EU is managed by the European Commission. If the UK leaves the EU without a deal, it is believed that a UK Trade Remedies Authority (TRA) will replace this infrastructure. This body will similarly investigate trading practices and increased imports which are deemed as unfair and that may have a negative effect on UK trade.

At Independent Freight, we will endeavour to continue to assist with your freight shipping, regardless of whether we leave the EU with or without a deal. We are the best freight forwarders that can help you to continue to successfully operate your business, even in times of significant change.

Need more information?

Find out how we can help your business

Air Freight

Tailor made solutions to meet your requirements

Sea Freight

Comptitive rates ensuring cost efficiency + reliability

Please call us on

+44 (0) 247 6343 037

For more information on Imports and Exports after Brexit, one of our freight experts will be happy to help.

"

Prepare your business for Brexit.

A Comprehensive Brexit Planning Checklist