August 2008 Newsletter

Welcome

This month we welcome a new member to the Customs Clearance Ltd team. Scott Thomas has joined our Operations/Customer Services department. If you should speak to Scott when you call us, don’t forget to tell him what a great decision he made, joining the crew here at CCL.

This month we’re inviting our partners, associates, customers and suppliers to take advantage of the opportunity for some totally free advertising! That’s an offer you can’t refuse, right?! All you need to do is write a short publishable testimonial telling us what you most appreciate or value about doing business with Customs Clearance Ltd. When we use your testimonial in our newsletter or on the web site, we’ll put in a link to your own web site. Email your testimonials to rudeeb@customsclearanceuk.com.

Our coffee break story is back this month, and don’t forget, we’d love to hear your freighting and travel tales too. The coffee break stories are here to entertain our readership of importers, exporters and business and personal travellers and always have a travel or importation angle. We’re happy to edit your notes, redraft stories and change identities wherever needed.

Talking of entertaining, look out for CCL podcasts – coming soon. We know many of our readers spend a lot of their time travelling, so we’re going to be producing podcasts of our newsletters and coffee break stories. You’ll be able to download these to your MP3 player and listen ‘on the move’. Podcasts will be available free from the web site – we’ll let you know when they’re ready.

Enjoy the rest of this issue and don’t forget, for any customs and importation queries, make our friendly and approachable Customer Services team on +44 (0)20 8231 0900 your first port of call.

In this issue

AEO - What is it and should you be one?
Urgent Update on the Low Value Bulking Concession - Deadline 1st September!
Web site update - RSS feeds to keep you up-to-speed
Everything you wanted to know about our consultancy service, but were afraid to ask!
Coffee Break Story: It's a Stretch

AEO - What is it and should you be one?

We take a look at the status of AEO – Authorised Economic Operator – and help you assess whether your business would benefit from applying.

An AEO is a business involved in the international supply chain which has proved themselves to be compliant and trustworthy, and where applicable, safe and secure. It is in effect an internationally recognised quality mark which tells people that you can be considered a secure trader and a reliable trading partner. AEO status entered into force on 1 January 2008 across the EU.

AEOs benefit from facilitations for customs controls or simplifications for customs rules or both, depending on the type of AEO certificate. There are three types of AEO certification:

• Customs Simplifications: AEOs with this certification will be entitled to benefit from simplifications provided for under the customs rules.
• Security and Safety: AEOs with this certification will be entitled to benefit from facilitations of customs controls relating to security and safety at the entry of the goods into the customs territory of the Community, or when the goods leave the customs territory of the Community.
• Customs Simplifications/Security and Safety: AEOs with this certification will be entitled to benefit from both simplifications provided for under the customs rules and from facilitations of customs controls relating to security and safety. (This is in effect a combination of the other two types.)

What are the benefits of AEO certification?

Whichever certificate you hold, you’ll benefit from a recognised quality status across the EC and an industry ‘kite mark’ – a useful marketing tool. In addition, your certification will put you on the European Commission’s AEO database, where anyone – for example your commercial partners, customers, potential customers and agents etc – can see your status.

As well as the marketing advantage, there are also administrative benefits to becoming an AEO, which in turn could enable you to provide an improved quality and speed of service to your own customers or end-users. For example, you’ll gain quicker access to certain simplified customs procedures and may also be able to ‘fast-track your shipments through certain HMRC safety and security procedures.

Who can apply?

Any legal business entity (sole proprietor, partnership, limited or unlimited company) can apply for AEO status, whatever the size of their business, if they are involved in activities covered by customs legislation and forming part of the international (outside of the EU) supply chain. This includes manufacturers, importers, exporters, warehouse keepers, logistics operators, carriers, freight forwarders, customs agents and some other categories.

Should you apply?

To become an AEO, you will have to meet certain criteria relating to the reliability of your customs-related operations throughout the EC. This includes having an appropriate record of customs compliance and satisfactory management systems that allow appropriate customs controls and proven solvency. Additionally for Security and Safety, you will need to provide details of the security and safety standards to be met.

The decision on whether or not you should apply is of course a commercial one that you need to take once you have assessed the benefits for your business against the costs of applying for, and maintaining, the AEO standard. Business Link provides a comprehensive guide to the AEO status, the criteria you would be required to meet and instructions on how to apply. To access this, click here.

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Urgent Update on the Low Value Bulking Concession - Deadline 1st September!

An internal HMRC review of the low value bulking concession has found that there is widespread abuse of this measure and as a result, they’re introducing revised authorisation conditions. A go-live date for these changes of 1st July 2008 did not happen, however, we are assured that the changes will come into effect from the revised go-live date of 1st September 2008.

The HMRC have issued a document entitled “CIP (08)33 – Changes to the Authorisation Conditions for The Low Value Bulking Concession”. This impacts any and all businesses who have an interest in importing goods under the Low Value Bulking Concession. If that’s you – pay attention!

To become compliant with the new authorisation conditions, you will need to apply to HMRC for authorisation, without delay. Once HMRC are satisfied with your application, they will award you authorisation to continue to clear bulk consignments for a 12-month period.

It’s important! This is a mandatory requirement. If you do not do this, you will face disruption to your importing process after 1st September 2008. This could have serious repercussions for your business.

Revised Bulk entry process:

From 1st September, the Bulk entry process will run in 2 parts.

1. CPC 40000004 = documents/brochures/ advertising material (no samples) / UK ONLY.

2. CPC 40000003 = (non excise) goods under GBP £18.00, per consignee / UK ONLY.

Documents and low value consignments for other EU destinations or the rest of the world CANNOT be bulked with the above. You will need to manifest them separately – this means separate “temporary storage” (transhipments) entries will have to be done for those destinations. If you do not have “temporary storage” authorisation, you will need to apply to HMRC immediately to rectify this.

From 1st September, Customs Clearance Ltd will be acting line with the changes and undertakes to submit the appropriate customs entries and comply with the revised rules regulations.

Please, don’t delay. If you haven’t done so already, contact HMRC now to avoid disruption to your import clearance facility.

Contacts:

Gerry Callaghan
Tel: 028 66 321222
e-mail: gerry.callaghan@hmrc.gsi.gov.uk

Mrs Attracta Burns
Tel: 028 66 321 227
e-mail: attracta.burns@hmrc.gsi.gov.uk

HMRC National Import Reliefs Unit. (NIRU)
Customs House, Killyhevlin, 15 Lough Yoan Way, Enniskillen, N. Ireland, BT74 4EJ
Application form(s) for the Bulk authorisation and the Temporary storage authorisation can be accessed on the HMRC web site, here.

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Web site update - RSS feeds to keep you up-to-speed

We’re continually evolving our web site with the aim that it be a useful and dynamic resource for our customers. This month we’ve launched an RSS feed page.

RSS (it stands for Really Simple Syndication) is a family of web feed formats used to publish frequently updated content such as blog entries, news headlines, and podcasts in a standardised format. RSS makes it possible for people to keep up with relevant web sites in an automated and systematic manner.

On our RSS page you’ll find links to the top five news headlines from Air Cargo News, BBC Business, BBC World, BAA and BIFA. Just click on a headline to access the full story.

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Everything you wanted to know about our consultancy service, but were afraid to ask!

This month, as we’re taking our usual ‘Q&A’ space to tell you a little more about our consultancy service, and its baby sister – Customs-On-Call.

CCL Consultancy:

Customs and import/export is a complex business, beset with rules and regulations with often severe penalties attaching, if you should fail to adhere to them. Our consultancy service can help those who have faced importation difficulties in the past, and want to avoid them in the future. We also help businesses who need the process of moving their goods across country borders to be more streamlined or cost-effective.

Rudee Bertie and Brian Kelly, joint MDs of Customs Clearance Ltd, conduct CCL’s consultancy assignments. With over 40 years experience of customs clearance and freight forwarding, they understand the challenges faced by organisations, in managing importations and deliveries efficiently and cost-effectively and maintaining high levels of customer satisfaction.

You can bring in Brian or Rudee to assess your freight movement systems, review efficiencies, value-for-money, suitability etc, and recommend improvements. They will give a balanced perspective, leaving you clear about your options and able to make better informed decisions.

If you would like Rudee or Brian to review your customs and importation processes, contact them on +44 (0)20 8231 0900 for further details and to book an appointment.

Customs-On-Call:

As customs gets ever more complex, we’re broadening the reach of our consultancy service to respond by email or phone to those one-off, tricky or complex customs/importation questions too. We’re calling this our Customs-On-Call service.

For example you may be investigating importing a new product and want to know the practicalities or implications, and need the associated regulations assessed, in order to help you establish whether your new venture is practical, or if it is, what you might need to charge your customers.

Customs Clearance Ltd can handle these shorter investigative or research challenges for you on an hourly chargeable basis. It works like this - you ring or email us with your query, and we estimate how long it will take to provide you the information you need – let’s say that might be 1 or 2 hours. Providing you’re happy with the fee, we then go ahead and, using a combination of our expert customs knowledge, our contacts and reference sources, we collate a response to your query and present this back to you by email or phone.

Don’t panic – this doesn’t mean we’ll be charging for simple advice! This is strictly for complex investigative queries with specific or detailed circumstances attaching. It’s chargeable by the hour, agreed up-front, and you only pay for the time it takes us to handle your query. It’s a bit like hiring your own customs expert, but just for an hour or two.

To access Customs-On-Call, just phone our usual number and discuss your requirement – it’s as easy as that!

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Coffee Break Story: It's a Stretch

We’re back again with another ‘coffee break’ story for you. Enjoy!

Calm…. centred… balanced…. Lateral breathing, outwards from the chest…. In through the nose, out through the mouth. Slowly roll down, shoulders loose, hands on the floor, head tucked under…. Feel the stretch…. Hold for a second, then slowly roll back up again. Let your breathing guide the length of the movement. Wind chimes in the distance, ambient vibes on the iPod – those neat white speakers were a good investment.

At just 8.30 am, it’s my first class of the day, and the weather is being kind, so we’re outside on the deck, me and my five ‘sunrise’ students. There’s a soft breeze and the sun is warming the wood under our feet. It’s going to be a hot day, but right now, it’s just about perfect for some gentle stretching and strengthening.

It’s all about the core, Pilates. (You thought it was yoga, right?) Building your core strength through slow, controlled, carefully executed movements. It does wonders for your posture, and if you’re one of the millions who claim to have a ‘bad back’, it’d do wonders for you too. And I should know, since I was there, five years ago, creaking in the mornings, slumped in my chair bent over a PC for hours, aching by the evenings – still in my thirties and feeling… old. Pilates changed all that – and since I really got the bug and went from trainee to trainer, it’s changed my life.

Even now, after five years, I can hardly believe I’m earning my living doing something I love so much. It wasn’t easy, and it did take a bit of commitment, but the time, money and sheer hard work I threw at the training and those qualifications is really paying off now. My schedule is packed with classes and one-on-one’s – I could maybe squeeze in another couple of sessions but that would be it. And much though I love my job I need my ‘me’ time just like anybody, so those spare evenings are going to stay spare.

So it’s crunch-time. Do I stick-or-twist? Stick with the hourly sessions format with all its limitations, or take a risk and move up a gear? Good question – but I made my decision a few weeks ago, as it happens. I’m going for it, care of a business loan the size of a house and no small amount of support and encouragement from friends and family. I’ve signed a lease on a small studio down the road and soon, instead of hiring rooms by-the-hour, I’ll be working in my own place. Actually, it’s mine already, as of last Friday. Now all it needs is a quick coat of paint on the walls, a couple of big mirrors and a new wood floor, and that’s all being taken care of over the weekend. We open on Monday – I can hardly wait.

All this means I can get some proper kit now too. Having my own studio means I can move on from a few roll-up mats and rubber bands in the back of the car and get some of the fun stuff, so I’ve been shopping too. I’ve a dozen stability balls, same number of Gym-sticks and a big box of small hand weights arriving tomorrow.

Then I went a bit nuts.

There are some amazing pieces of equipment – serious engineering – you can get for a Pilates studio. Reformers, wunda chairs, cadillacs – daft names for brilliant kit. And I’ve gone for it – my first cadillac and three reformers are on a boat from the States as we speak. You can get basic stuff here in the UK of course, but the Real McCoy? What you might call ‘industrial strength’ equipment – kit you can use for 15 hours a day, every day – comes from the USA. And we’re talking a few thousand pounds apiece, so thank-you Mr Bank Manager, Sir, and away we go…! I’m feeling a bit light-headed, as it’s quite an investment, but I’m also really juiced. I’m confident (yeah?!) (it’s a brave smile and brown paper bag to stop me hyperventilating) … confident…. it’ll pay for itself in a few months.

The crack-of-dawn class is over and the day begins in earnest. Just time to grab a quick cappuccino-to-go and check my voicemail before jumping in the car and heading across to the other health club for my next class. Yes, I’ll be glad when I can stay in one place for the day.

Coffee served, check the phone, and there’s a message – they start early at Tilbury but - yesss!! - my shipment has arrived, safe and sound and I need to call and make arrangements to pay the import taxes and clear customs.

Whaaaat??!….. He said the word ‘pay’. Then he said the word ‘taxes’…. The world just stopped turning. Never mind the kit, I paid enough for the shipping, thanks very much. Now what’s all this about import taxes? I’m feeling a bit weak.

It turns out, there’s no escape from taxes (is there ever?) and ‘I didn’t realise’ is no excuse. I’ve got to pay, and it’s not pennies either. Just when I’ve maxed-out my cards on all the fittings for the studio. If I can’t pay, they hold my goods until I can, but guess what… yes… then there are nightmare warehousing fees as well. It’s clear I need to move fast, but I have a full schedule ahead of me today and it would create way too much of a problem to cancel everything at such short notice.

The guy I spoke to at Tilbury was helpful, as far as he could be under the circumstances. He emailed me a list of customs brokers (quick salute to Blackberry, email on the move) who he said could probably help me and I gave Customs Clearance Ltd a call. They answered my call fast, and answered my questions even faster. I could download the forms from their web site and set up an account for my business that same day. They could sort everything out for me with customs and arrange to deliver my new equipment to the studio at a time to suit me. Is there a charge for their clearance and delivery service? Yes, of course there is! But it’s fair and reasonable, and it gets my goods out of customs in record time, avoiding those warehousing fees. It saves me the embarrassment of begging a big loan off a friend and roaring off to Tilbury in a rental van - and it means I can get on with my day, and my week, without having to cancel any classes or sacrifice any fees.

And it means I can breathe-easy again…

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