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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.

A beginners guide to sea freight

A beginners guide to sea freight

Whether your UK business is importing or exporting goods, it’s important to research the most cost-effective shipping methods. In most cases, sea freight will be far more affordable than air freight, however, time constraints can be a drawback and it’s also not the most cost-effective method of shipping smaller packages.

That said, here are the Independent Freight guidelines to sea freight shipping for your information.

Different types of sea freight

You can choose a range of solutions when you send goods by sea. These include:

– Full container load shipments where all your goods are loaded into one container (these can be varying lengths).

– Shared container shipments, known as less than container load, which can be arranged by your freight forwarding company.

– Roll on and roll off shipments, which as the name suggests relate to lorry loads which can be driven onto the cargo ship and then driven off at the arrival port.

– Dry bulk shipping is reserved for dry materials, like aggregates and metals which can simply be poured into the hold of the cargo ship, then offloaded at arrival ports.

Benefits of sea freight

One of the main advantages of sea freight is that it’s so cost-efficient for transporting larger quantities and heavier loads over long distances. When you shop around you will find that sea freight can be up to six times cheaper than air freight. Many countries apply lower duties to goods arriving by sea, as these are often calculated as a percentage total cost of goods. In addition, from an environmental perspective sea freight is far less harmful to the planet.

If you would like to learn more about sea freight into or out of the UK, why not speak to the experts here at Independent Freight? We also offer a Customs Clearance Service and a Brokerage Service. Get in touch today to find out more!

Urgent shipments? We have the solution!

Urgent shipments? We have the solution!

No matter what time of day, when you have urgent shipments to organise you can rely on Independent Freight to provide the best possible, hassle-free, and speedy service. We’re your “go-to” forwarding company, based in Nuneaton, in the very heart of the UK. Whether you’re overseas and need to arrange UK freight forwarding or you’re in the UK and desperately need to get your sea freight to its final destination, the experts here at Independent Freight will handle your logistics problem swiftly and without any fuss.

What we do

Our logistics service includes:

– Customs clearance
– Speedy courier services
– Road freight throughout the UK and Europe
– Air freight and sea freight
– Warehouse and storage

Customs clearance for air cargo and sea freight is a breeze when you use Independent Freight

Many UK businesses are struggling with the sort of customs clearance issues they will face following any potential No Deal Brexit, but when you opt for our services you can rely on us to ensure your freight arrives at European destinations on time. We’re also happy to expedite your European freight into the UK, in the same effective manner, and can provide storage facilities if needed.

We also handle freight forwarding to any global destination, whether you need air or sea cargo, and are happy to deal with all associated customs clearance administration on your behalf.

Why choose us for your urgent shipments?

We’re proud of our fantastic reputation as one of the best freight forwarders in the UK, and offer all customers the same courteous service. No matter whether you’re an e-commerce startup needing to send a couple of packages overseas each month or a larger organisation with more complex freight shipping requirements, the experts at Independent Freight can deliver on every logistics problem.

Get in touch today to find out more!

Invitation to the ‘no jargon’ approach to BREXIT

Invitation to the ‘no jargon’ approach to BREXIT

Invitation to the ‘no jargon’ approach to BREXIT

By David Hooper, September 24, 2019, Category: General News

We would love you to join us at this invitation only event on the 17th October 2019 at Mallory Court Hotel and Spa, Royal Leamington Spa Warwickshire CV33 9QB

Are you a business importing and exporting goods into the EU after Brexit? Gain an understanding of how customs procedures will impact on your business as well as your EU Suppliers and Customers.

Our very own industry expert David Hooper will be partnering with the ‘no jargon’ team to give his invaluable advice on importing and exporting after BREXIT.

If you are interested in this event please register your interest by contacting Tracey: tracey@hrdept.co.uk please note places for this event are restricted, so be quick to secure your place!

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 visit our website and 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.

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 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 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.