Are you ready for the BREXIT?
In our previous mailing we gave you more information about the Incoterms Mainfreight will initially support (EXW, DAP, DDP). After a tour of our major customers it appears that the majority will use the Incoterm DAP. This is also the Incoterm that we as Mainfreight recommend to our customers:
“The seller must arrange the export declaration with the customs. Furthermore, he is responsible for arranging an export license or other export documents, if necessary. For imports into the destination country, the buyer arranges the customs formalities and the payment of any import taxes. If necessary, the buyer also requests local import documents (e.g. an import permit).”
Benefits customs clearance by Mainfreight
Mainfreight is with its own customs department your reliable partner for customs clearance: reporting goods leaving the Netherlands or reporting goods entering the NL. With our specialist knowledge we are able to offer solutions for all your customs duties that match your logistic process. Mainfreight is AEO certified, allowing shipments subject to customs regulations to be handled quickly and efficiently. All you have to do is hand over your commercial invoice and packing list digitally and we take care of all customs formalities for you.
Mainfreight recommends that for your groupage shipments (1-5 pallets) you advise your consignee to use our partner Davies Turner to take care of the import into the UK. This with the reason that our daily shipping services will be provided with a transit document. This transit document ensures that the goods are cleared not at the border but at Davies Turner's customs depots in Dartford and Coleshill. In this way we ensure that we avoid the expected hustle and bustle at the border as much as possible. Davies Turner has in-house customs departments which ensure that your shipment can be delivered without delay. The advantage of working with the combination Davies Turner - Mainfreight is that we already share all documentation received from you with Davies Turner before the truck arrives at their customs depots. This ensures that the customs clearance process is completed as quickly as possible.
Your consignee in the UK can contact Davies Turner for the import of groupage shipments (firstname.lastname@example.org) and for LTL/FTL shipments with Mainfreight London (email@example.com).
If you choose to have your customs issues handled by a 3rd party, there will be additional costs involved in Mainfreight providing information and clearing your (export) document on a collective transit document. We will share these extra costs with you in our next newsletter.
Direct representation and Power of Attorney of the Chamber of Commerce
If you would like Mainfreight to take care of your customs clearance please mail us your signed form Direct Representation in advance. If you would like Mainfreight to arrange your Certificate of Origin with the Chamber of Commerce, please provide us with the signed form Power of Attorney Chamber of Commerce. Both forms can be downloaded here
Packing wood for import and export after Brexit
Do not take any risk in your trade with the United Kingdom. Use only packaging wood (such as pallets, wooden crates, boxes, cable reel and dunnage to secure the load) that has been treated against pests and marked according to the international standard ISPM 15. This standard becomes mandatory after Brexit. The Packaging department of Mainfreight can help you with the purchase of these pallets (firstname.lastname@example.org).
Volumes and capacity Q4 2020
We are currently seeing a significant increase in volumes to and from the United Kingdom. We see these pre-Brexit volumes with our own customers and in the market. Waiting times within the various links of the logistics chain are increasing, causing delays in delivery. We will keep you informed via SCEU/Mainchain. You can also contact our UK department (email@example.com).
Have your invoice and packing list checked before January 1st
We would like to offer you as a service to share your invoice and packing list with firstname.lastname@example.org. We will then check for you whether your invoice and packing list meet all the requirements to take care of the declaration of your goods. To know what information your invoice and packing list should contain, please refer to our Brexit presentation (sheet 15) on our Brexit website. If any of your details are missing, or your goods description is not correct, or your documents reach us after 16.00 hours, we will not be able to ship your shipment to the UK after 1 January. Your shipment will then unfortunately be delayed. By using our control now you still have enough time to mention missing information on your invoice or packing list before January 1st. You will then be fully Brexit-ready!
When you book a shipment to the UK via SCEU since this week, you will receive a notification that your goods are leaving the EU with a request to share your invoice and packing list with us. From 1 January it is possible to share your documents with us in this way.
Veterinary and phytosanitary products
When you have veterinary or phytosanitary products transported by us which, after the Brexit, need to be provided with extra documentation, we kindly ask you to contact us.
For the time being, you can continue to send shipments to and from the United Kingdom as usual. If there is more clarity about the exact details and consequences of the Brexit, we will inform you about this.
We have completely updated our Brexit website with the latest information. Here you will also find a presentation that answers the most frequently asked questions and the form for 'Direct Representation'. Do you still have questions or would you like to talk further about the Brexit? Please contact your account manager or our customs department at email@example.com.
Deal or no-deal: customs formalities are an established fact. The current negotiations between the European Union and the UK are difficult. Clarity on the outcome is expected in the short term. Regardless of whether this results in a deal or a no-deal: from 1 January 2021, customs formalities will always apply to goods traded with the UK.
In recent months we as Mainfreight have therefore continued our preparations for the Brexit. We also have the ECMT permit which means that we can continue to drive to the UK with Mainfreight vehicles even in case of a no-deal Brexit with Mainfreight. We will also use the next 80 days to take care of final preparations. It’s now time to finalize the best solution together with you. We ask you to think about the incoterms and the execution of customs activities. Something where we also like to be of service to you.
Advantages customs clearance by Mainfreight
Mainfreight, with its own customsteams, is your reliable partner for handling all your customs formalities. With our specialist knowledge we are able to offer solutions for all your customs obligations that match your logistic process. Mainfreight is AEO certified with which shipments subject to customs regulations are handled quickly and efficiently.
All you have to do is hand over your commercial invoice and packing list digitally and we take care of all customs formalities for you.
ICC Incoterms® 2020
In an international transaction, buyer and seller usually agree on an ICC Incoterms® 2020 rule. This determines the rights and obligations of both parties with regard to transport, insurance, permits and customs formalities. If you are not currently trading outside the EU, you may have agreed on conditions that are unfavorable after 1 January 2021. Therefore, please pay special attention to the application of the ICC Incoterms® 2020:
Ex Works (EXW)
The Incoterm® Ex Works (EXW) imposes the fewest obligations on the seller. All he has to do is place his goods at an agreed location - often his business premises, workshop or storage space - ready for the buyer.
EXW is an "unfriendly" Incoterm® for the buyer, because he has to arrange the entire transport himself. He bears all costs associated with transport to the final destination. He also bears the risk of loss or damage to the goods from the moment he takes delivery of the goods at the agreed place. The buyer is even responsible for loading the goods into the vehicle.
EXW is not suitable for export shipments. From October 1, 2020, the exporter named in the export declaration must be established in the EU. Therefore, the buyer from outside the EU will have to find another party, such as a logistics service provider or customs broker from the EU, willing to act as exporter for the export declaration.
It also applies that the buyer is responsible to EXW for arranging an export license or other export documents, should this be necessary.
Delivered At Place (DAP)
The Incoterm® Delivered At Place (DAP) entails many obligations for the seller. The seller arranges and pays for transportation to the agreed destination. He also bears the risk of loss or damage to the goods until he transfers the goods, not yet unloaded, to the buyer at this agreed place of destination (or place of delivery).
Describe at DAP the point within the agreed place of destination as clearly as possible. Because this is the place where the risk of loss or damage to the goods passes from the seller to the buyer (place of delivery). The buyer bears the costs of unloading at the agreed place of destination.
If the destination of the goods is outside the European Union (EU), the seller must arrange the export declaration with the customs. Furthermore, he is responsible for arranging an export license or other export documents, if necessary. For imports into the destination country, the buyer shall arrange customs formalities and payment of any import taxes. If necessary, the buyer also requests local import documents (e.g. an import permit).
Delivered Duty Paid (DDP)
The Incoterm® Delivered Duty Paid (DDP) brings with it most of the obligations for the seller. He arranges and pays for transportation to the agreed destination. He is responsible for customs clearance and pays any import duties in the destination country, such as import duties and/or import VAT. Furthermore, he bears the risk of loss or damage to the goods until he transfers the goods, not yet unloaded, to the buyer at the agreed place of destination (or place of delivery).
Please describe to DDP the point within the agreed place of destination as clearly as possible. Because this is the place where the risk of loss or damage to the goods passes from the seller to the buyer (place of delivery). The buyer bears the costs of unloading at the agreed place of destination.
At DDP, you are also responsible for customs clearance in the country of destination. In that case, you will bear the costs associated with customs clearance, including any import taxes due such as import duties, import VAT or other local import duties. You also have to provide any documents required to clear the goods, such as an import license.
Volumes and capacity Q4 2020
We are currently seeing an increase in volume from and to the United Kingdom among our customers. We expect 3 extra busy months of Brexit related volume. We ask you to inform us early on your increasing volumes so we can take this into account in our planning and capacity. Should it be the case that we cannot handle the increasing volumes in combination with the available capacity, we will inform you further.
What does all this mean for now? For the time being, you can continue to send shipments to and from the United Kingdom as usual. If there is more clarity about the exact details and consequences of the Brexit, we will inform you about this.
Business as usual
Do you still have questions about the above information or would you like to talk further about the Brexit? Please contact your account manager or our customs team at firstname.lastname@example.org.
However, the 27 (permanent) EU countries and the British government have decided to postpone the Brexit date by 31 October 2019. Unfortunately, there is still a chance that it will ultimately not be possible to reach agreements with the United Kingdom about the Brexit. So a so-called no-deal Brexit can still take place with immediate return of customs procedures. If the British Parliament still agrees with the Brexit agreement before 31 October, the UK will leave the EU on the first day of the following calendar month (no later than 1 November 2019). From this withdrawal, a transition phase goes into effect until December 31, 2020. During this period, all EU rules and laws for the UK remain in force. Virtually nothing changes for citizens and businesses. This transition period may be extended once for two years if necessary until 31 December 2022.
The resignation of May puts an end to the British government's efforts to get the UK out of the EU with a deal before installing the new MEPs. This was still the hope of many Brexiteers.
So the Brexit soap is entering a new phase until 31 October. The chance of a no-deal and a tough Brexit has not decreased in any case. That is why it remains necessary to be Brexit ready. Mainfreight is still working hard to limit the inconvenience after a no-deal. However, it is important that your company continues to prepare for all scenarios, including a no-deal.
Direct representativeAs an importer or exporter, determine whether you want to make Customs import or export declarations yourself after the Brexit, or whether you want to use Mainfreight for this. Mainfreight must then be authorized to arrange customs formalities for your company. You can arrange this authorization by signing our "Direct Representative" form and returning it to us. This authorization is revocable for you at any time.
You can print, sign and return the authorization to us by mail (email@example.com) or by post (Mainfreight, Customs team, Industriestraat 10, 7041 GD 's-Heerenberg, The Netherlands).
We have a Brexit FAQ page which we want to provide you with even more information. The Customs team of Mainfreight has a special team ready for all your questions about the Brexit. So do you want more information about the Brexit? Our specialists have the answer!