February 2017 www.bifa.org BIFAlink The magazine of the British International Freight Association Issue: 318 Champions: The BIFA Freight Service Awards – See pages 10-13 INSIDE 6: News Gotthard Tunnel opens up intermodal options 8: Policy & Compliance EU proposals to update VAT regime 14: Legal Eagle Tribunal confirms sea waybill is evidence of contract of carriage 15: Policy & Compliance The raw tobacco approval scheme Follow us @BIFA www.bifa.org BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266 Web site: www.bifa.org E-mail: [email protected] (A company limited by guarantee. Registered in England: 391973. VAT Registration: 216476363) Director General Robert Keen [email protected] Executive Director Robert Windsor [email protected] Executive Director Spencer Stevenson [email protected] Policy & Compliance Advisor Mike Jones [email protected] Training Development Manager Carl Hobbis [email protected] Editorial Co-ordinator Sharon Hammond [email protected] Administration Controller Jane Robinson [email protected] Published by Park Lane Publishing [email protected] Contributors Robert Keen, Robert Windsor, Mike Jones, Spencer Stevenson, Carl Hobbis, Sharon Hammond Regional Consultants to BIFA Scotland and the Borders Len Hobbs: [email protected] Northern Ireland Carson McMullan: [email protected] Midlands and the North Paul Young: [email protected] London West and the South West Colin Young: [email protected] Anglia, London East and the South East Paul Newman: [email protected] Subscription rates: UK £40 Rest of the World £52 Please be advised that BIFA DOES NOT OFFER LEGAL ADVICE. BIFA is not a law firm and the authors of this publication are not legally qualified and do not have any legal training. The guidance and assistance set out herein are based on BIFA’s own experience with the issues concerned and should not be in any circumstances regarded or relied upon as legal advice. It is strongly recommended that anyone considering further action based on the information contained in this publication should seek the advice of a qualified professional. February 2017 Robert Keen’s Column BIFAlink First lights in the Brexit fog Brexit trundles on with more questions than answers. We now know the UK will be leaving the Single Market and the Customs Union, but many questions remain regarding border transactions for EU goods, the implications of the common travel area with the Irish Republic and whether the planned replacement for CHIEF will cope with such a massive increase in entries? In our discussions with HM Revenue & Customs (HMRC), we still have no idea whether there will be enhanced facilitation for those companies that achieve the so-called ‘trusted trader’ status by becoming authorised economic operator (AEO) accredited. In last month’s edition of BIFAlink we published some Brexit views provided by BIFA Member Espace. We have had some feedback and I will run a follow-up item to balance opinion in the March edition. Last month I announced that Rachel Morley of Spatial Global had joined the BIFA Board as a non-Executive Director and this month I am pleased to congratulate my two Secretariat deputies, Robert Windsor and Spencer Stevenson, who are joining the Board as Executive Directors. We now have a full Board of ten people. I have written about the constitution of BIFA in the past but if you would like to know how the Association is run and did not see the earlier articles, please let me know. We are also looking to strengthen our representative role and have a vacancy in our policy and compliance team covering Customs work. Meanwhile, here at Feltham we decided to start January with a top-to-bottom look at how we are structured and how we provide services to BIFA Members. Such ‘brainstorming’ sessions are common in most companies and I remember a past US employer where they seemed to happen weekly. However, I was pleased to find that our internal criticisms of working procedures were few and we identified some areas where we can improve. One question we posed was, how do BIFA Members see us? I remember calling on a BIFA Member in Ipswich many years ago who was amazed I had shown up. He said he regarded BIFA as a “hidebound body pontificating to the Members from West London”. We are a forwarder club, but we treat Members as customers and I am certain that we are as modern and flexible in business practices as the Membership – but at the risk of ‘leading with my chin’, please let me know of gripes or moans. Another outcome was the need to get feedback on BIFAlink, so we will have an online survey available by March so you can let us know the highs and lows of reading your trade magazine. I aim to visit all BIFA Regional Meetings this year and in March I am visiting Manchester, the Midlands, Liverpool, Yorkshire and the Humber. Full details can be found on the Events section at www.bifa.org and I am looking forward to meeting regular attendees who I know, and some new faces. Lastly, well done to all of the BIFA Members that entered our annual awards. As usual it was a great showcase for the amazing tasks our Members perform. It is difficult to avoid the well-used phrases that accompany awards ceremonies, but I do know from being an observer at the judging meeting the high quality of the entries and the intense debates sparked among the judges as they decide the overall winners. I did mention in a BIFAlink last year that we need to reach a wider pool of entrants. Should we change the categories? Is the entry procedure too complex? How can we get smaller BIFA Members to enter who think the awards are “only for the big boys”? We have already had some feedback, but feel free to e-mail your opinion or call me. So, in conclusion, it is open season on BIFA and we want the Members to feed back opinions on what we do and tell us if we can do things better. Call or e-mail, and if possible come and meet me at a regional meeting. Robert Keen Director General 3 BIFAlink News Desk www.bifa.org Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business Emerging market trade drives Heathrow growth connecting to and from P&O Ferries services at Zeebrugge, offering departures from Bilbao and Santander on Wednesday, arriving in either Teesport or Tilbury the following Sunday. In the Air Heathrow Airport’s cargo volumes grew 3% to 1.54 million tonnes in 2016, driven by trade with emerging market destinations. In December, cargo was up 5.1% to 133,641 tonnes, driven by growth in emerging markets, with Brazil up 18.6%, India by 12.1% and China by 8.3%. Portside DP World has begun work on the second and final phase of the DP World London Gateway Logistics Centre. It will create 180,000 sq ft of cross-dock distribution warehousing and office space, in addition to the 207,000 sq ft created in phase 1, completed in early 2015. Phase Two will be available for occupation from May 2017. The International Air Transport Association (IATA) released data for global air freight markets showing that demand, measured in freight tonne kilometres (FTKs), rose 6.8% in November 2016 compared with the year-earlier period. This was a slight slowdown from the 8.4% annual growth recorded in October 2016 – which was a 20-month high – but was still more than 2.5 times the average annual monthly growth rate of 2.6% over the past decade. In Business The new version of the Harmonized System (HS) Nomenclature entered into force on January 1, 2017. Developed by the World Customs Organization (WCO) and adopted in 1983, it is the sixth edition of this global standard used by over 200 countries and economic or customs unions (including the 154 contracting parties to the HS Convention) for classifying goods in SEMI-EXPRESS SERVICES TO AND FROM THE WHOLE OF EUROPE Try our online calculator for a quote within a minute and no need to log in at www.simpex-express.com SEMI-EXPRESS SERVICE 24hrs to: Belgium, France, Germany, Ireland, Luxembourg & Netherlands. 48hrs to: Austria, Czech Republic, Denmark, Northern Italy, Poland, Spain & Switzerland. 72hrs to: Finland, Estonia, Latvia, Lithuania, Portugal, Romania, Slovakia, Slovenia, Southern Italy, Sweden VISIT WWW.SIMPEX-EXPRESS.COM OR CALL international trade. Following the success of its national launch just a couple of years ago, the creators of Business on the Move, an innovative supply chain board game, have already attracted backing for a global edition from leading global supply chain operators such as CHEP, DHL, DP World, FedEx, MSC, the TT Club, Unipart, Worldwide Chain Stores and XPO Logistics. On the Ocean Chronic overcapacity in the liner shipping industry led to the scrapping of a record 192 containerships totalling 654,900 teu in 2016. However, the demolitions failed to stop the idle fleet soaring to an all-time high of 1.59 million teu in October before ending the year at 1.42 million teu, Alphaliner data shows. Kitack Lim, Secretary-General of the International Maritime Organization, has written to senior European officials expressing his concern that including shipping in the European Union’s Emission Trading System (EU-ETS) could undermine efforts to reduce greenhouse gas (GHG) emissions from shipping on a global basis. In a letter to Martin Schulz (President of the European Parliament), JeanClaude Juncker (President of the European Commission) and Donald Tusk (President of the European Council), Mr Lim acknowledged that the EU has an ambitious policy for addressing emissions and recognised that member states might wish to enhance the progress made to date. However, he cautioned against extending the EU-ETS to include ships. 0121 782 4444 Finnlines has started a ferry service between North Spain and the UK, 4 As work forges ahead to create new facilities in Dover’s Western Docks, Dover Harbour Board has boosted the long-term prospects for cargo operations with an agreement to incorporate the port services division of George Hammond PLC into its wider business. George Hammond PLC developed the general cargo business in Dover more than 60 years ago and has operated the Dover Cargo Terminal since its inception in 1990. Overland A new freight train service from Yiwu in China to London, operated by Chinese trade service provider Yiwu Timex Industrial Investment Co, was launched on January 1, the China Daily newspaper reported. The service will cover the 12,000 km route in 18 days, crossing through Kazakhstan, Russia, Belarus, Poland, Germany, Belgium and France, before arriving in London. For the full year 2016, Eurotunnel reported that truck shuttle traffic increased by 11% compared with 2015, with an all-time record of 1,641,638 vehicles transported. For the 14th consecutive month, December 2016 saw recordbreaking monthly truck shuttle traffic compared with the corresponding period in previous years. February 2017 simplifying the supply chain FOR YOUR BUSINESS I Multi-modal Job Booking Facility I Customer Relationship Management I Accounts Management & Reporting I Warehousing Management I e-Doc File Management Facility I Microsoft Office Integration FOR YOUR BUSINESS nFOR Multi-modal Job Booking Facility YOUR CUSTOMERS nI Customer Relationship Management Shipment Tracking & Milestones nI Accounts & Reporting Job BookingManagement Facility nI Warehousing Management Purchase Order Creation & Tracking nI e-Doc FileStock Management Facility Warehouse Management nI Microsoft Office Integration KPI Reporting FOR YOUR CUSTOMERS n Shipment Tracking & Milestones boxto p.net BIFAlink News Desk www.bifa.org Gotthard Tunnel opens up Europe intermodal options The world’s longest and deepest rail tunnel − the Gotthard Base Tunnel, in Switzerland − entered commercial service for both freight and passenger traffic on December 11. Up to 260 freight trains and 65 passenger trains are expected to traverse the twotube tunnel on a daily basis. Vaunted as a major link in a pan-European railway corridor stretching from the port of Rotterdam, in the north, to Genoa, in the south, the 57 km long Gotthard Base Tunnel has taken 17 years to build at a cost of over CHF12 billion. Proponents believe the tunnel will significantly enhance rail freight transport through the Alps while also providing additional stimulus to the modal shift, from truck to train, for the shipment of goods. It will also facilitate a new operating concept, based on the European Train Control System (ETCS), which offers greater timetable stability and punctuality, while also providing sufficient capacity for future growth. CLECAT Newsletter 2016/46 An update on Transfer of Residence – withdrawal of C3 declaration BIFA published information on changes to the procedure for gaining Transfer of Residence (ToR) Relief in January 2017, however HMRC has advised an update to the dual-running period which is detailed here. This information should be read in conjunction with CIP 57 (2016), which covers the new procedures for Transfer of Residence (ToR) to the UK. A copy of the original information can be viewed at www.bifa.org/information/regulation ?p=2. These are fundamentally new procedures which must be fully understood in order to prevent unnecessary problems. The online application process was meant to be live from the 1 November 2016 but it was only in December that the GOV.UK website notified trade that the new form was available on-line. It should be remembered that ToR relief is only granted for UK residences and addresses. Initially Customs had stated that it would allow a dual running system of 6 using the electronic system alongside the existing C3 declaration until 31 December 2016. However, due to the delays in making the electronic form available, Customs has agreed to extend the dual-running period for three months up to 31 March 2017. Please note, any C3 forms received by HMRC from 1 April 2017 onwards will not be recognised as a valid customs declaration. C3 use will be obsolete and it will be fully withdrawn, and any concession will end. The online application process should be completed by any private individual planning to relocate his or her normal place of residence to the UK. Such an application must be made prior to shipping any consignments of household effects and personal property to UK. If successful in obtaining ToR relief, the applicant will then be awarded unique declaration information that he or she or their third party agent must then present when making the import declaration using CPC 40 00 C01. Any entitlement to ToR still involves satisfying the qualifying criteria laid down in paragraph 5.1 of Notice 3. Applicants are encouraged to read this to ensure they can comply with that criteria and meet the post-entry obligations of the 12-month restriction period, also mentioned in paragraph 5.1. The new on line form can be viewed at: www.gov.uk/government /publications/application-fortransfer-of-residence-tor-relief-tor01. In response to Member enquiries, BIFA has asked Customs how the form should be submitted in order to prevent delays. We have been advised, once the form is completed and it is ready to print that it should be saved as a PDF, and then the submission be emailed into the Hub via [email protected]. T he applicant should also include an e-mail address for further communication to speed up the process. Robert Windsor and Spencer Stevenson join the BIFA Board The BIFA Board and Council recently approved the promotion of Robert Windsor (top) and Spencer Stevenson (above) to Directors of BIFA. Both have been with the Secretariat for quite a while and have excelled in their fields of responsibility. Robert will continue to lead our representational work with government and the plethora of other organisations who we seek to influence. We anticipate a greater workload once the details of Brexit are known, so Robert will add this to his existing portfolio. We are seeking a Customs Advisor (see advert on page 7) to assist in our policy and compliance area. Spencer will continue his role overseeing membership and training activity but will also coordinate the activities of Sharon Hammond and Carl Hobbis who share differing roles dealing with our training provision. February 2017 News Desk www.bifa.org Brexit questions for your business Whilst we wait for some tangible information on how the UK government’s plan for Brexit will affect our sector, BIFA Associate Member Menzies LLP has provided the infographic below giving business owners the key questions they should be asking themselves to help prepare their business for the UK’s exit from the EU. You can find the infographic at: www.menzies.co.uk/wp-content/ uploads/2016/11/Brexit-implicationsinfographic-final-version.pdf Menzies LLP offers a wide range of accountancy services and the contact is Sophie Said ([email protected]) CUSTOMS ADVISOR ROLE AT BIFA Due to expansion we wish to recruit a Customs Policy Adviser. The successful candidate will need to demonstrate a wide understanding of customs activities and have an appreciation of changes resulting from implementation of the UCC. For additional information please contact [email protected] BIFAlink BIFA publishes guidance on direct and indirect representation Further to the articles published in BIFAlink last autumn, our policy and compliance team, working with the BIFA Legal and Insurance Policy Group, has published a new Good Practice Guide. If you go to www.bifa.org, look for the INFORMATION tab and it will lead you to our GOOD PRACTICE TOOLBOX. There you will find guidance on a wide range of topics such as subcontracting or agency agreements. The representation guide is especially important as we are receiving many more calls from BIFA Members having problems when they become indirect representatives and are jointly liable for the customs debt with their customer. Furthermore, we have provided template declarations to cover differing circumstances in order to assist with your protection in this complex subject. If you have questions, please contact Robert Windsor [email protected] Don’t keep it to yourself Remember to circulate BIFAlink to your colleagues. Not your copy of BIFAlink? – register for your own copy by contacting Jane Robinson in membership ([email protected]). By sea – Hague Visby rules (2 SDR): £2.21 per kg £735.77 per package By road – CMR (8.33 SDR): £9.19 per kg By air – Montreal Convention (19 SDR): £20.97 per kg February 2017 By air – Warsaw Convention (17 SDR): £18.76 per kg BIFA STC: (2 SDR): £2.21per kg (The SDR rate on 18 January 2017, according to the IMF website, was 1.10365) 7 BIFAlink Policy & Compliance EU announces proposals to update VAT regime With online evasion of VAT costing the Exchequer up to £1.5 billion a year, the EC is proposing a simplification of e-services that should help reduce costs for the larger traders Value Added Tax (VAT) sparks much debate, if only because it is seen as being relatively complex. There are multiple rates in the UK ranging from zero up to 20% – and the tax is subject to widespread fraud. BIFA has been heavily involved in the UK Fulfilment House consultation, where official estimates indicate that fraud by overseas-based traders selling to UK traders online is costing the Exchequer approximately £1.5 billion per annum. On 1 December 2016, the European Commission (EC) unveiled proposals to improve the VAT environment for e-commerce businesses in the EU. The proposals have three core objectives: • To ensure the smooth functioning of the internal market; 8 • To ensure the competitiveness of European businesses; • To ensure that tax is correctly collected in today’s digital economy. When considering the proposals, it is important to remember that the main parties disadvantaged by fraud are legitimate EU companies who pay and account for VAT correctly, and the individual taxpayer. All governments are aware that current legislation was drawn up prior to the rise of the internet and its increasing use for online sales, which includes crossborder activities. Thresholds One area that is particularly vulnerable to fraud is the abuse of the low-value thresholds by online retailers. Having spoken to various customs authorities, one of their main concerns is the deliberate under-valuing of consignments to ensure that they fall below the appropriate threshold. Currently a small shipment imported into the EU with a value of less than €150 is exempted from import duty. If the value falls below €22, it is exempt from both import duty and VAT. Exemption removal As it is known that this exemption is widely abused, the EC is proposing that the VAT exemption on import shipments from outside the EU of less than €22 is removed. This will impact on certain costs and systems, but the view is that it will be small. Also, the EC has proposed that the simplification of e-services should be made available to online www.bifa.org sellers as well. Online sales will be taxed in the same way and at the same rates as their physical equivalent in shops. The VAT rate will be charged where the EU consumer is based, regardless of where the online trader is established. Non-EU based sellers will be able to register for the VAT one-stop-shop, but in line with the UCC, an EU-based intermediary has to be appointed to deal with VAT-related compliance. This proposed modernisation would facilitate the more effective use of a centralised customs clearance procedure. This simplification would authorise importers under specific conditions to pay customs duties and other taxes to customs in the country where they are established. In this case the customs debt will be regarded as being incurred in the member state where the authorisation is held. The EC believes that a centralised model with new VAT rules allowing companies to sell their goods online, coupled with the provision of an online portal hosted by their own tax administration in which to submit the relevant VAT declarations, would simplify matters for the trader and reduce fraud. In line with much of current customs thinking, it is clear that there are three main processes: firstly to link the ability to use such systems to an authorisation; to increase the traders’ or their representatives’ accountability and thus drive up compliance; and lastly to move to an electronic solution. There are elements of the proposals that will be controversial, such as abolishing the €22 threshold for VAT. However, the centralising of VAT accounting for larger traders, at least, may allow them to reduce their administration costs. February 2017 others promise, DataFreight delivers... THE FULLY INTEGRATED SOFTWARE Forwarding • Warehousing • CFSP • NCTS • Imports • Exports EMCS • ICS • Intrastat • Web-Tracking DataFreight launches NEW Analytics & CRM module Contact us now to book a demo Call +44 (0) 1489 795 160 or email [email protected] WWW.DATAFREIGHT.CO.UK BIFAlink Awards www.bifa.org The winners and their trophies Champion swimmer Sharron Davies MBE was the host for the 28th annual BIFA Freight Service Awards ceremony which took place at The Brewery in London last month. As ever, the BIFA Freight Service Awards recognises those Members selected by an independent panel of judges as winners in each of ten categories. Sponsors, finalists and guests gathered with an air of anticipation for the event which recognises the hard work, innovation and determination of forwarders in nine areas of their business, along with the inspiring candidates for the Young Freight Forwarder award. Before lunch the 38 finalists were welcomed on stage, to great applause, to collect their 10 BIFA Director General Robert Keen thanks the category sponsors certificates from Sharron Davies and BIFA President Sir Peter Bottomley. Following a delicious lunch the audience was enraptured by an amusing and energising speech from 20-time British swimming champion Sharron Davies whose Olympic career now spans an amazing 11 Olympic games, three as competitor and eight as television presenter with the BBC. Sharron’s determination to succeed shone through as she recounted training with two broken arms, plaster-casts protected by carrier bags, and touched on her involvement with the successful London 2012 bid. Then came the moment eagerly awaited by the finalists, the announcement of the category winners and presentation of trophies. The finalists and winners were: GENERAL CATEGORIES Project Forwarding Award – Sponsored by Peter Lole Insurance Brokers Winner: Ucargo LLP The judges commented: “Having secured the project, Ucargo found itself in the unusual position of having not one, but 35 clients as the owner-operators of the carnival equipment, all of whom had a vested interest in seeing their equipment handled correctly and returned to them safely. Ucargo demonstrated exceptional supervision and planning with a February 2017 Awards www.bifa.org very hands-on approach throughout this project.” Finalists: Laser Transport International; OIA Global; Panalpina World Transport. Specialist Services Award – Sponsored by Forward Computers Winner: Priority Freight The judges felt that Priority Freight demonstrated a high level of skill and specialism in the automotive industry by completing a multifaceted challenge in an extremely tight timeframe. The team at Priority Freight coordinated a charter aircraft, flight permits and overland transport to destination in extreme weather to deliver on time and prevent a major manufacturing shutdown Finalists: Blackthorne International Transport; Charles Kendall Packing; James Cargo Services. Staff Development Award – Sponsored by Albacore Systems Winner: DSV Road Demonstrating a commitment to staff from day one, the Young DSV programme sees trainees follow a two-year apprenticeship combining on-the-job training with classroom learning and examinations. Trainees are coached on all aspects of the industry as well as the DNA of DSV, ensuring true engagement with the DSV brand and reducing attrition. Highly commended: Customs Clearance Limited. Finalists: Expeditors (UK) Ltd; Uniserve Group. BIFAlink THE AWARD WINNERS Awards host Sharron Davies is in the left of every photo, with the sponsor on the right of every photo PROJECT FORWARDING: Ucargo LLP, Tony Kennedy – Peter Lole Insurance Brokers, Tracey Meaney SPECIALIST SERVICES: Priority Freight, Neal Williams – Forward Computers, Nigel Smith STAFF DEVELOPMENT: DSV Road, Jesper Hansen – Albacore Systems, Charlie Frost SUPPLY CHAIN MANAGEMENT: Unsworth Global Logistics, Charles Hogg – BoxTop Technologies, Paul Richardson YOUNG FREIGHT FORWARDER: Nikki Hall, Embassy Freight – Virgin Atlantic Cargo, Steve Buckerfield AIR CARGO SERVICES: Uniserve Group, Leighton Bonnett – IAG Cargo, Stuart Forsyth EUROPEAN LOGISTICS: Delamode, Dave Gladen – TT Club, Michael Yarwood OCEAN SERVICES: Greenshields Cowie, Ron Hooper – Port of Antwerp, Maartje Driessens Supply Chain Management Award – Sponsored by BoxTop Technologies Winner: Unsworth Global Logistics Unsworth demonstrated a proactive approach towards identifying bottlenecks in its customers’ supply chain. Its focus on improving efficiency far exceeded its expectations and consequently provided its customers with substantial cost savings, reduced its carbon footprint and streamlined the delivery process. February 2017 COOL AWARD: Panalpina, Dominic Neal – American Airlines Cargo, Tristan Koch EXTRA MILE AWARD: MIQ Logistics, Matt Fullard – Descartes, Martin Meacock 11 BIFAlink Awards www.bifa.org Finalists: Allport Cargo Services; Expeditors International (UK) Ltd; Ligentia UK. MODAL CATEGORIES Air Cargo Services Award – Sponsored by IAG Cargo Winner: Uniserve Group Commenting on Uniserve’s submission, the judges felt that its use of the 360ULD was an excellent response to changing logistics sectors and economic pressures. Showing clear evidence of cost savings, customers in the supply chain benefited in both product integrity and profitability. Finalists: 512 (Sheffield); MIQ Logistics; MOL Logistics. European Logistics Award – Sponsored by TT Club Winner: Delamode The judges agreed that Delamode had demonstrated the successful implementation of an innovative solution in providing a cost-effective parcel delivery service to the Romanian and Baltic state markets. The service solution provided costsaving benefits to the business whilst clearly benefiting the customer base in offering a more efficient delivery service. Finalists: Espace Europe; International Forwarding; Uniserve Group. Ocean Services Award – Sponsored by Port of Antwerp Winner: Greenshields Cowie & Co Greenshields Cowie demonstrated an effective use of ocean services from four continents in order to manage the delivery of solar panels and associated equipment to remote areas of Africa in a bid to bring clean energy to health facilities and schools in developing regions. The judges were impressed by ‘green’ spirit of the team at Greenshields Cowie. Finalists: 512 (Sheffield); Ucargo LLP. SPECIALIST CATEGORIES Cool Award – Sponsored by American Airlines Cargo 12 Category sponsors the Port of Antwerp and guests at the drinks reception. Winner: Panalpina World Transport Through its ‘Pan Cool’ product, Panalpina has proven itself to be the global leader in the cool chain sector. Using its own freighter aircraft it is able to offer unique cool chain solutions at a global level. Its continued commitment to innovation and development of the Pan Cool product is testimony to its professionalism and ambition. Finalists: Metro Shipping; Morgan Cargo. Extra Mile Award – Sponsored by Descartes Winner: MIQ Logistics MIQ Logistics went the extra mile by providing direct customer support on behalf of its client. In an area not traditionally supported by a logistics provider in the B2C supply chain, it added value to its client by securing increased purchases and ensuring customer satisfaction as a result. Finalists: OIA Global; Shippio Car & Motorcycle Shipping; Simarco International. INDIVIDUAL CATEGORY Midway through the ceremony, the focus switched away from companies to recognise a rising star of the forwarding industry with the announcement of the winner of the Young Freight Forwarder Award. Sponsored by Virgin Atlantic Cargo, the Young Freight Forwarder trophy went to Nikki Hall of Embassy Freight Services at Heathrow. Nikki joined Embassy Freight on leaving school and has not looked back. Her go-getting personality has enabled her to progress from trainee to business development manager with special focus on the India market which she has visited frequently in order to meet with customers and suppliers. Nikki now goes forward as the UK nomination in the FIATA TT Club Young International Freight Forwarder competition. Finalists: Simon Arnold (Unity Logistics); Adam Harris (Heritage International Freight); Lee Wells (512 (Sheffield). In his closing remarks, BIFA Director General Robert Keen thanked the category sponsors, the ceremony sponsors (K&L Freight, Lincoln Maritime, MCP plc, Menzies, Simpex Express, and The Woodland Group), the entrants and their guests for making this event the success that it is year after year. Following a short presentation on its work, the transport charity Transaid (www.transaid.org) was delighted to announce that a fantastic £2,089 was raised during lunch. This will support safe driving and transport infrastructure schemes in Africa in the belief that every driver should be able to leave for a day’s work without the fear he or she may not come home because of a lack of training, or dangerous vehicles and roads. www.bifa.org/awards February 2017 Freight Service Awards 2016 The Winners The following organisations and individuals have been recognised by the British International Freight Association as the ‘best in industry’ in the BIFA Freight Service Awards 2016 competition Modal Categories Modal Categories Specialist Categories Specialist Categories Project Forwarding Award Air Cargo Services Award Cool Award Sponsored by: Peter Lole Insurance Brokers Sponsored by: IAG Cargo Sponsored by: American Airlines Cargo Specialist Services Award European Logistics Award Extra Mile Award Sponsored by: Forward Computers Sponsored by: TT Club Sponsored by: Descartes Staff Development Award Ocean Services Award Sponsored by: Albacore Systems Sponsored by: Port of Antwerp General Categories Individual Category Young Freight Forwarder Award Sponsored by: Virgin Atlantic Cargo Highly Commended: Customs Clearance Nikki Hall of Embassy Freight Services Supply Chain Management Award Sponsored by: BoxTop Technologies To see the full list of our finalists visit bifa.org/finalists British International Freight Association Redfern House, Browells Lane, Feltham, Middlesex TW13 7EP United Kingdom T: +44 (0)20 8844 2266 E: [email protected] W: bifa.org/awards BIFAlink Legal Eagle www.bifa.org Both decisions involved claims filed by an Italian fruit trader for damages incurred to consignments of fruit transported by a liner shipping company. Tribunal confirms sea waybill is evidence of contract of carriage The following item was noted on the International Law Office (ILO) e-newsletter and although not UK law we thought it an interesting case study BIFA is grateful to the author Luca di Marco of Dardani Studio Legale (www.dardani.it) for permission to reproduce this article The Tribunal of Genoa recently issued two decisions dealing with the legal nature of sea waybills. In both decisions the tribunal considered the extent to which the content of a sea waybill is relevant when identifying the parties to the contract of carriage and, consequently, when deciding on the defence of title to be sued. Facts Both decisions involved claims filed by an Italian fruit trader for damages incurred to consignments of fruit transported from Italy to the Far East by a liner shipping company. Instead of filing claims against the shipping company, the plaintiff filed the claims against the shipping agent of the carrier, arguing that the relevant contracts 14 of carriage had been concluded with the agent. The shipping agent disputed the claims and raised the preliminary defence of lack of title to be sued, stating that it was not in fact a party to the contracts of carriage, which were concluded between the plaintiff and the shipping company. The shipping agent argued that it had signed the two sea waybills “only as agent for the carrier” and had listed specifically the liner shipping company as the carrier. Therefore, it did not act as carrier under the relevant contracts of carriage. The plaintiff responded that the sea waybill is a document that allows the consignee to obtain the delivery of goods at a destination simply by providing evidence of its identity (ie confirming that it is the party named in the document), but that it cannot be considered as evidence of the contract of carriage or be used to identify the parties to the contract. Decision The Tribunal of Genoa recognised the shipping agent’s defence of lack of title to be sued and rejected the plaintiff’s claims on the grounds of the sea waybill’s content. The tribunal explained that the sea waybill was introduced in response to: • Issues arising in the use of bills of lading; • Advancements in transport technology. The tribunal further stated that – in contrast to bills of lading – sea waybills are not negotiable documents of title, representing goods, and that the right to control the goods in transit and the right to claim their delivery at the destination port are not dependent on the sea waybill. The sea waybill acts as a nonnegotiable receipt that consignees need not present to obtain delivery of the goods; they need only proof of identity. However, after underlining the differences between the bill of lading and the sea waybill, the tribunal stated that the two documents are similar to the extent that both constitute proper evidence of the contract of carriage’s terms. In particular, the tribunal affirmed that the sea waybill is prima facie evidence of the contract of carriage since it is issued after the shipper has delivered the goods to the carrier and details the parties to the contract of carriage, the goods, the port of origin and the port of destination. On the issue of identifying the parties to the contract of carriage, the tribunal found that the shipping agent had signed the sea waybills as an agent for the carrier and therefore could not be considered a party to the contracts. The tribunal concluded that the plaintiff failed to identify the carrier and thus did not file action against the proper defendant. The claims were therefore rejected. ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. February 2017 www.bifa.org Policy & Compliance The Raw Tobacco Approval Scheme While the freight industry has not been kept well informed about the scheme, it is now clear that transporters of raw tobacco will be exempt from approval if they comply with a number of specific conditions BIFA has been contacted by some Members regarding the Raw Tobacco Approval Scheme, the impact of which is unclear. Our initial reaction is that most Members will not be impacted, but those who handle this product will have to hold an approval from HM Revenue & Customs (HMRC). Background Raw tobacco is not subject to excise duty, but a risk has been identified by HMRC after a recent rise in raw tobacco imports and seizures. From 1 April 2017, businesses or individuals who intend to carry out any activity involving raw tobacco must hold an approval from HMRC, unless an exemption applies. The Raw Tobacco Approval Scheme aims to: • Reduce the risk of excise duty evasion, • Prevent the illegal manufacture of tobacco products, • Control the movement of raw tobacco in the UK. The scheme aims to allow approval holders to demonstrate legitimate use instead of having to provide assurances for each consignment. For those traders who hold authorised economic operator (AEO) certification, HMRC will examine ways to fast-track the approval process. BIFA has advised HMRC that the freight and transport industry should have been informed of this change because there is an impact on imports between customs clearance and delivery to the February 2017 tobacco manufacturer. Due to the specialist nature of the trade, Customs seem to have consulted mainly with the tobacco industry and is relying on the manufacturers to provide the information regarding the supply chain. From our perspective, the crucial part of Excise Notice 2003 is Section 4.3, Transporting raw tobacco, which reads: “You will be exempt from approval as a transporter if you comply with all of the following conditions: • A single movement is not more than 200 kg, • A movement must be made to an approved person and to an approved address for holding raw tobacco, • Ensure that a record is made of the above, making sure it is held throughout the delivery of the raw tobacco and made available for inspection upon request to an Officer.” You will need to be approved if you wish to transport more than 200 kg in a single movement. HMRC has confirmed that ancillary services such as storage and warehousing will form part of the approval or the exemption – as an additional controlled activity – and will also include details of the BIFAlink associated premises for storage, etc. All raw tobacco packages are required to display the tobacco manufacturer’s approval number and the address of approved premises. Approval application and approval procedures HMRC will accept applications from businesses or individuals from 1 January 2017. Applications can be made in writing and there is a Detailed Guide available on gov.uk on how to apply and the information required: www.gov.uk/guidance/ how-to-apply-for-the-raw-tobaccoapproval-scheme. Full details of the scheme are set out in Notice 2003 – Raw Tobacco Approval Scheme: www.gov.uk/government/ publications/excise-notice-2003tobacco-duty-the-raw-tobaccoapproval-scheme. If a business or individual intends to carry out a controlled activity from 1 April 2017, then applications for approval should be received by HMRC by the end of January 2017 to allow sufficient time for processing of the application. Additional information is also available in CIP 68 (2018) and also Public Notice 476. Fit and proper criteria HMRC will review the application and undertake checks to confirm the information provided is full and accurate, and to verify that businesses and individuals are fit and proper for approval to the scheme. Sanctions From 1 April 2017, a person who carries on any activity involving raw tobacco without an approval, or fails to comply with the terms of an approval or exemption, is liable to penalties and the raw tobacco liable to seizure. If any Member has specific concerns or questions regarding this scheme, please e-mail Robert Windsor at [email protected] to forward to HMRC. 15 10 YEARS SOLUTIONS FOR CARGO OWNERS TO REDUCE COSTS AND CO2 BY RUNNING A SLICKER SUPPLY CHAIN Over three days you can: • • • • • • • discover the very latest freight solutions available from over 300 exhibitors; test and compare alternative ideas all in one place over three days – save time! your one stop shop to compare suppliers and modes; Free to attend inspirational seminars from CILT and FTA ; network with the industry’s elite and forge new business partnerships; participate in the exclusive Shippers’ Village to hold your own private discussions; dedicated pavilions representing FSDF: focusing on food and drink logistics; Air Cargo; Logistics Leaders’ Network & UK Warehousing Association; Whatever your role, whether you’re a retailer, manufacturer or import/exporter, you will find suppliers to solve your complex transport and logistics requirements. “ “ It enabled us to open our eyes as to other suppliers in the market place having been blinkered through using only a small number of suppliers for a number for years.” It was a useful visit. I managed to meet with a number of existing and potential suppliers and compare various new services all in one day.” BAE Systems Kingspan “ Very successful in finding new ideas for existing challenges.” British Museum “ “Excellent, I came with Great to keep in touch with the industry, see new equipment and ideas.” Unilever distinct goals on set products and they were fulfilled, along with this I gained new legislation information which I was not aware of.” Well worth the visit which allowed me to make new contacts within the business and meeting existing suppliers.” Scotmin Nutrition Stannah Stairlifts Ltd “ WWW.MULTIMODAL.ORG.UK Legal Eagle www.bifa.org BIFAlink Carriage of goods by road and the CMR Convention A look at the CMR Convention – when it applies, how it works, and how jurisdiction and liability apply BIFA is grateful to Associate Member solicitors LA Marine for permission to reprint this article. Much of global trade is carried out by the carriage of goods by road. Carrying goods by road may be the mode of transport for the entire consignment, or may be part of a multimodal chain of transport. The CMR Convention 1956 is a legal framework facilitating and governing the transport of goods by road. The convention contains provisions regarding jurisdiction, limitation of liability and time-bars for claims that intend to give a uniform, global approach to issues arising out of the carriage of goods by road. The convention applies where carriage occurs between two or more states, where one is a signatory of the CMR Convention. The crucial document for most carriages is the CMR Consignment Note. This document is prima facie evidence of carriage of the goods by road and contains important information such as the shipper, the consignee, the final discharge point and a description of the goods being carried. Goods are often carried in a chain of carriers. The individual carrier’s liability starts the moment it takes over the goods and continues until the goods’ safe delivery at their destination, where the next successive carrier takes control of the goods. Support your local Member group BIFA holds Regional Member meetings around the UK and listed right are those due to occur soon. If you would like to attend and find out more about BIFA and what we do, then contact the appropriate Regional Consultant to BIFA. All BIFA Members are entitled and encouraged to attend their regional meetings however pre-booking with the named contact is essential. Full contact details are shown on page 3 of this issue. February 2017 Upon delivery at the final destination, it is recommended that the goods are checked and any damage is notified to the relevant carrier immediately, or at the least within seven days of taking delivery of the goods. Failure to do so would jeopardise the claimant’s ability to bring claims for damage/loss under articles 30 and 31 of the convention. Jurisdiction and liability Article 31 is the pertinent article when considering jurisdiction. Article 31 contains the states where it may be possible to commence actions for a recovery of loss. It is possible for legal proceedings to be brought in a “contracting country designated by agreement”, the place where a defendant is resident, or has his principal place of business, or the branch or agency through which the contract of carriage was made. Alternatively, “where the place where the goods were taken over by the carrier or the place designated for delivery is situated”. Jurisdiction can be a complicated issue so it is important to assess this in good time ahead of the one-year time-bar for claims that is imposed under Article 32. The other point to note is the limitation of liability contained at Article 23 of the convention. This article limits recoveries to 8.33 Special Drawing Rights per kilo gross of the damaged goods. This can have a significant impact on the quantum of any claim and ought to be checked thoroughly. Jonathan Biggins, Solicitor 023 8082 7483 [email protected] www.la-marine.co.uk Region Date Time Venue BIFA Contact Solent Regional Members’ meeting Heathrow Regional Members’ meeting Gatwick Regional Members’ meeting Stansted Regional Members’ meeting Manchester Regional Members’ meeting Liverpool Regional Members’ meeting Midlands Regional Members’ meeting Yorkshire Regional Members’ meeting Humber Regional Members’ meeting Heathrow Regional Members’ meeting Thu 23 Feb 0800 Duke of Wellington Colin Young Tue 28 Feb 1400 Colin Young Wed 1 Mar 1230 Wed 8 Mar 1130 BIFA, Redfern House, Feltham Air & Cargo Services, Crawley Stansted Airport Limited Thu 9 Mar 1030 Manchester Airport Paul Young Wed 15 Mar 1030 Royal Liver Building Paul Young Tue 21 Mar 1030 East Midlands Airport Paul Young Wed 22 Mar 1030 Holiday Inn, Leeds Paul Young Tue 28 Mar 1030 Hull Ionians RUFC Paul Young Thu 30 Mar 1400 ASM, Ashford Colin Young Colin Young Colin Young 17 BIFAlink Policy & Compliance www.bifa.org Do not become a victim of crime Billions of dollars of cargo are reportedly stolen every year, with at best minimal investigation by police. TT Club reports on some of the latest trends that forwarders should be aware of. Cargo theft continues to be a constant threat to the global supply chain and an increasing drain on the economies it serves. Alarming statistics regularly fill the pages of logistics publications globally, with billions of dollars of cargo reportedly stolen each year. TT Club, amongst other organisations, recognises that these statistics are drawn only from crimes that are reported. Arguably, therefore, they are not truly representative of the scale of the problem. Enforcement priorities Many law enforcement agencies locally, nationally and internationally are under tighter budgeting constraints and consequently need to marshal resources efficiently. Political and societal demands inevitably draw limited resource towards only the most serious of crimes, which will generally not be linked to the value of the cargo. Rarely do law enforcement agencies engage actively in investigating cargo theft crime, resulting in perpetrators not being apprehended, and also a very incomplete picture of the freight crime horizon. This is a ‘perfect storm’, the consequences of which are of great concern to the integrity of the supply chain. All too often, the law enforcement agencies are more akin to a reporting portal for cargo theft crimes, receiving reports of crimes and issuing a crime number. In many cases the fundamental formality of attending the scene of a reported crime is neglected, with reliance on an interview with the victim conducted remotely over the phone, often through a translator service. Where agencies do attend 18 a crime scene, critical forensics and other evidence such as CCTV footage are rarely collected. Further, the lack of appetite to investigate freight crime fully is often evidenced even in instances where bespoke cargo is stolen and discovered for sale on social media platforms. Reporting of a cargo theft crime is a simple task, largely without risk for those involved, providing further opportunity for any criminal organisation. This can be illustrated by a recent case where a driver, in his statement to the police, claimed not to have heard or felt any disturbance during the theft of 10,000 kg of cargo from his trailer. Another (unidentified) driver witnessed the theft, however, and noted the registration of the vehicle the thieves used to steal the cargo. The vehicle was in fact a small family car, which a more robust investigation could have identified and led to further critical enquiries being made. Instead, the police report was completed and filed. Assess the risks The targeted cargoes are often high value, specialist items such as computer components, sports equipment and copper cathode. Of the thousands of loaded trailers in transit at any one time, these shipments are clearly being singled out with the perpetrators almost certainly having inside knowledge of the supply chain and predesignated markets for the stolen goods. Furthermore, where significant volumes of cargo are stolen, planning is required, involving the use of large vans or trucks and the deployment of multiple personnel. Instances where outwardly unattractive freight, which is in fact high value, is targeted raise further concerns in respect of the flow of information through the supply chain, concluding that opportunism is being replaced by informed, lowrisk organised criminal activity. Trend observation TT Club has previously highlighted theft from various angles in the US and Europe, including freight exchange internet sites and identity theft which continue to be prevalent. However, whilst the targeted cargoes, routes and location of the thefts themselves remain varied and without pattern, there have been multiple cases in recent months where investigations have identified the driver concerned, whilst working for haulage operators all over Europe, to be of Romanian nationality. Recent trends suggest that haulage operators and drivers from some Eastern European states offer their services at extremely low rates compared with industry averages. In the economic climate such savings are inevitably attractive. There is, however, an old adage, ‘if it seems too good to be true, then it probably is’. Further, it would seem that drivers are regularly claiming to have been “gassed” to justify the fact that they had apparently slept for 12 hours and had not been aware of the hours of activity whereby gangs entered their vehicle to steal cargo. There is scepticism surrounding this theory which is supported by the UK’s Royal College of Anaesthetists, given not only the difficulty in administering a gas into a vehicle, but also the equipment required, the volume of gas necessary to render a victim unconscious and, not least, the cost involved. Such assertions stretch credibility. Anaesthetics are obviously very dangerous; doctors have to undergo many years of training to administer such drugs safely. In untrained hands, administering uncontrolled doses would likely be fatal, effectively constituting attempted murder in each case. The fact is that TT Club has not witnessed either fatal incidents or escalated investigations from respective law enforcement agencies. Be alert Such developments are highlighted in order to encourage logistics operators and freight forwarders to maintain robust due diligence procedures. Good practice necessarily extends beyond the initial selection of subcontractors to the close management of all contractors throughout the supply chain. Particular attention should be given also to designated overnight parking areas, particularly avoiding insecure areas close to the collection or delivery points. With many thanks to Peregrine Storrs-Fox, risk management director, TT Club for allowing the reproduction of this article. February 2017 Training www.bifa.org BIFAlink Training courses: February-April 2017 AIR CARGO (REGULATED AGENTS) SECURITY TRAINING NEW level CASP CO COS CS CM OLD Level A/B D E F G Air Cargo Security – CASP (Cargo Aviation Security Principles) Air Cargo Security – CO (Cargo Operative) Air Cargo Security – COS (Cargo Operative Screening) 1 February Feltham, West London 20 February Feltham, West London 2 March Feltham, West London 20 March Feltham, West London 10 April Feltham, West London 25 April Feltham, West London Air Cargo Security – CS (Cargo Supervisor) Air Cargo Security – CM (Cargo Manager) 20-21 February Feltham, West London 20-21 March Feltham, West London 25-26 April Feltham, West London Air Cargo Security – Refresher COS (am session) Air Cargo Security – Refresher CS & CM (pm session) 28 February Feltham, West London 29 March Feltham, West London 24 April Feltham, West London Aviation Security Cargo X-Ray Operator (module 14) Available as an in-house course, contact BIFA to schedule a date Aviation Security NXCT NB – test session only – no training takes place By arrangement, please contact [email protected] CUSTOMS PROCEDURES Customs Procedures for Export Cargo (CM1) 7 February Feltham, West London 24 April Midlands Customs Procedures for Import Cargo (CM2) 8 February Feltham, West London 25 April Midlands BTEC Intermediate Award in Customs Export & Import Procedures (CM3) NB: attendance required on all five dates See www.bifa.org for future presentations DANGEROUS GOODS Dangerous Goods by Air (DGA1) 6-8 February Glasgow 6-8 February Feltham, West London 13-15 February Leeds Bradford 20-22 February Manchester 6-8 March Bournemouth 6-8 March Feltham, West London 13-15 March Midlands 20-22 March Bristol 27-29 March Feltham, West London 24-26 April Newcastle 24-26 April Feltham, West London Dangerous Goods by Air – Revalidation (DGA2) 9-10 February Glasgow 9-10 February Feltham, West London 16-17 February Leeds Bradford 23-24 February Manchester 9-10 March Bournemouth 9-10 March Feltham, West London 16-17 March Midlands 23-24 March Bristol 30-31 March Feltham, West London 25-26 April Newcastle 27-28 April Feltham, West London Dangerous Goods by Road (DGR1) 20-22 February Midlands 13-15 March Manchester 20-22 March Feltham, West London Dangerous Goods by Road – Revalidation (DGR2) Days 2 and 3 of the above Dangerous Goods by Road course (DGR1) FREIGHT FORWARDING AND INTERNATIONAL TRADE Exports for Beginners (EXP1) 8 March Feltham, West London 28 March Manchester Imports for Beginners (IMP1) 9 March Feltham, West London 29 March Manchester BTEC Intermediate Award in Multimodal International Freight Procedures (MFT1) - NB: attendance required on all five dates 15, 22 Feb, 1, 15 + 22 March Feltham, West London 20, 27 April, 4, 11 + 25 May Feltham, West London Sea Freight: The Basics (SF1) 27 March Feltham, West London Introduction to Letters of Credit 28 March Feltham, West London ONLINE COURSES The following Air Cargo Security courses are available online to Regulated Agents at initial and refresher levels: • Cargo Aviation Security Principles (CASP) • Cargo Aviation Security Principles – Driver (CASP-D) • Cargo Operative (CO) See bifa.org/training to register KNOWN CONSIGNORS – courses covering the modules required by Known Consignors are also available online. Dangerous Goods by Sea (DGS1) 23-24 February Midlands 16-17 March Manchester 23-24 March Feltham, West London 27-28 April Glasgow Dangerous Goods Safety Adviser (DGSA) 27 February – 3 March Feltham, West London 27 February – 3 March Manchester Radioactive Goods by Air (DGA3) 6-7 April Feltham, West London Radioactive Goods by Air – Revalidation (DGA4) 7 April Feltham, West London Infectious Substances by Air (DGA5) 2 February Watford Carriage of Lithium Batteries by Air, Road & Sea (modules available individually) See www.bifa.org for future presentations To view course content or to make a booking, go to www.bifa.org and click on training BIFA is a member of: #BIFATraining February 2017 19 AVIATION SECURITY TRAINING FROM THE PRIME INDUSTRY ASSOCIATION CALL BIFA TRAINING 0208 844 3625 [email protected] www.bifa.org
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