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!

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.

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.