October Newsletter

Welcome

The feedback we received from our first newsletter served to reinforce our belief that customs and importation can be a very murky and confusing area for many people. At Customs Clearance, we make it our business to understand the process, interpret the official language for you, and help you to make confident decisions based on accurate information.

In this, the second issue of our newsletter, we're offering you some advice on an increasingly common scenario - buying goods from abroad over the internet. We also answer some of your more specific questions relating to customs and importation, and there's another of our 'coffee break' stories with a customs clearance message at its heart.

At Customs Clearance Ltd, our aim is always to give you the confidence that when you entrust your consignments to us, whether simply to clear customs or to move around the globe, they're in good hands. So remember, for any customs and importation issues, make our friendly and approachable Customer Services team on +44 (0)20 8231 0900 your first port of call.

In this issue

Buying from Abroad over the Internet
Q&A - Everything you wanted to know about importing, but were afraid to ask!
SAD Harmonisation Update
Making a Buying Trip run like Clockwork

Buying from Abroad over the Internet

We alert you to some of the pitfalls and show you how to get best value

These days, it's possible to buy almost anything from almost anywhere, over the internet; The on-trend fashion house in New York, the specialist jeweller in Hong Kong, those fabulous silks from India... all are accessible for a few clicks of the mouse. But when you click on "buy", just what is included in the cost? We highlight some of the charges associated with buying from countries outside the UK and Europe that often get overlooked, and look at the process of importation.

When buying from abroad on the internet, you will usually be purchasing through the seller's e-shop, from which they will sell the majority of their goods to buyers within their own country. For this reason, prices can often be deceptive and it pays to be very clear what the advertised price includes. For example, your goods may appear to be very reasonably priced, but what happens once you factor in the exchange rate, and the cost of packing and international shipping? And what about importation and customs charges? It's almost certain that these will not be included in the advertised prices, as the seller is unlikely to be handling these for you.

Once you've handed over your credit card details, paid for your goods and the postage and packing/shipping charges, that might be just the start.

Here's what else you may need to be prepared for:

• On anything valued at £18 or over, you will be charged VAT. Only if you are VAT registered will you be able to reclaim this via your quarterly VAT Return
• Driven by the value of the imported goods, there will be import duty. If this amounts to £7 or more, it will be charged to you
• There will be a Customs charge
• There will be a Customs clearance fee - that's a fee for administrating the process of customs clearance and completing the importation of your goods legally into the UK.

Once your order is shipped, your goods will arrive by a variety of means. Smaller items will usually arrive by post or by ParcelForce, handled by the local sorting office. If you are out, they should leave a card to say they have attempted a delivery, with instructions on how to obtain your goods. Some consignments will arrive via courier delivery services who will leave similar notification in the event of a failed delivery attempt.

Larger consignments or bulk purchases may arrive through a freight forwarder. They will contact you prior to delivery and there may be additional charges including airline handling fees, storage and delivery fees for example, or further fees which could be determined by the issuer.

It's practical, it's enjoyable and it can be very advantageous to buy from overseas. By paying close attention to the additional fees and fully understanding the means by which your goods are to be shipped, you can go a long way towards avoiding nasty surprises and making sure your internet buying experience is a good one.

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Q&A - Everything you wanted to know about importing, but were afraid to ask!

In this and future newsletters, we answer in brief some of your more specific customs and importation questions.

Q: When will I need to go through the RED Channel?

A: You must go through the RED point or the RED channel and declare your goods, if they:

• exceed your duty-free allowance limits
• are prohibited or restricted*
• are intended for sale
• include belongings or vehicles which need to be declared (we'll be tackling the issue of importing a vehicle in more detail in our next issue).

*Prohibited goods are those banned completely. They include unlicensed drugs, offensive weapons, indecent/pornographic material, counterfeit and pirated goods, meat, milk and other animal products. Restricted goods are those which you cannot import without authority such as a licence. They include firearms, explosives and ammunition, live animals, endangered species, certain plants and their produce, and radio transmitters. If in doubt, go through the red channel, tell the customs officer what goods you have arrived with and they can advise you whether or not they need to be officially declared.

Q: My goods are not actually going to be with me when I arrive back in the UK. What do I do?

A: If your goods arrive before you, or after you, you will need to complete multiple forms and make a signed declaration. These forms can be quite complex and this is why most people employ a customs broker or clearing agent to take care of them. At Customs Clearance, we provide all the forms you need and guide you through completion.

Situations which are likely to require these forms and declarations include:

• Importing personal effects (including pets), if you are importing them into the UK for a temporary period
• Importing your belongings, if they are being either permanently imported, or, for example, if you are a student coming into the UK for a period of full-time study
• Permanently importing a pet
• Furnishing a second home within the EC
• Importing a private motor vehicle and setting up your main home in the EC
• In the event you are importing a private aircraft!
• Bringing your own private motor vehicle back into the EC.

Q: I've been working in Dubai for the last 2 years. I've taken another job in London that starts this week but I didn't have time to pack all of my belongings, so a friend has packed and shipped my things. What happens next?

A: The airline shipping your goods will contact you with a file reference number or airwaybill number which will identify your belongings as a consignment. The consignment will need to be cleared through Customs. Most likely, the airline will give you the option of finding your own customs broker or clearing agent, or else they will offer to handle clearance on your behalf. If you opt to assign a broker to clear your consignment, the airline will ask for your agent's renomination code. This code is made up of up to three character letters and identifies the customs broker/clearing agent. The airwaybill/consignment reference is then renominated to the said broker for allocation, to submit a customs entry to HM Revenue & Customs on your behalf. Once your consignment is customs cleared you can then make arrangements to collect it or have it delivered, and of course, pay any charges due.

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SAD Harmonisation Update

In our last issue we alerted you to the SAD (Single Administrative Document) Harmonisation process currently underway for Customs declarations across EU member states.

The original 'SAD H' Day (the implementation date for SAD Harmonisation) was postponed from earlier in the summer and is now 1st October 2007. All declarants who are ready to make declarations in the new format will be expected to do so from this date. Those declarants who are not ready to submit declarations in the new format will be given an additional period of time to become SAD H-compliant. This will run from 1st October 2007 to midnight on the 20th January 2008, during which time declarants will be able to continue to use old messages and old data.

It's a complex issue, so if you have any questions as to how SAD Harmonisation may impact your business, don't hesitate, call our Customer Services Team on +44 (0)20 8231 0900.

Click here to access further information on SAD Harmonisation from HMRC.

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Making a Buying Trip run like Clockwork

We continue our series of 'coffee break' stories for you. Enjoy!

The plan was to go to New York, then Miami, then on to Los Angeles - all in 5 days - and then fly into Toronto, Canada on the way back home to London. It wasn't any old business trip - you know, flying to one meeting after another, crumpled shirts and dry eyes all the way. Yes there would be five meetings in total - possibly more - but I needed to get back to London within the week, having closed deals with at least four different suppliers, and get the stock back to the office ready for redistribution by the beginning of the following week.

How was I to manage? How was it going to happen, given the time frame?

Last week the company had sent me to a trade show in Manchester. As all trade shows go, you walk around, making sure to be sociable, friendly and very professional. Oh, and you carry loads of business cards as you never know who you're going to meet. You know the routine, it's dull, boring and heavy on the feet, mixed with polite smiles, plenty of glad-handing and the odd bit of small talk. It's all a bit of a PR exercise really; being seen, networking in the right places, meeting the right sort of people. Before you know it, day turns into evening and the show wraps up. Now this can be a useful time - follow the crowd. Everybody heads for the nearest bar to loosen up and relax a little (in some cases a little too much - you know how it is…). During the day I'd collected a pocketful of business cards from a cross section of company reps. That's not bad going, and another handful to add to my Rolodex. Some might turn out to be useful.

Anyway, I digress - back to the trade show watering-hole. There was this one business card. I remember it because it was quite unusual - four-sided - and I couldn't put it down. It was very tactile and I couldn't stop playing with it, fiddling around, twisting through my fingers, twirling it over and over. The guy who had handed it to me earlier was at the bar, ordering drinks. He asked me what I was having. He was a sharp, witty, intelligent type - the sort who laughs at his own jokes. But you could tell he was competent and very knowledgeable.

I remember hearing the words 'import', 'export', 'collection and delivery', 'customs clearance' and 'distribution'. Far from being the big yawn you might think it to be, this guy was holding court and had his audience eating out of the palm of his hand - he was on a roll - all the things they didn't know about shipping, that were going to cost them time and money. Then it clicked. I took another look at his card and it all fell into place. This is perfect - he's the guy I need to talk to. He's the one that can make it all happen for me on this upcoming monster buying trip. Talk about being in the right place at the right time. Not only do I get a free drink or two but also a really important contact - someone capable of getting me and my shipments through the next week in one piece, leaving me to focus on how I'm going to pull off the best deals.

Later on that week I made the necessary follow-up call, explaining where I was going and why, what my time-frame was and the objectives of the trip. A few details were exchanged including zip codes and contact numbers and at the end of our conversation I was confident that it was all in hand - now that gives you peace of mind. Brilliant!

There's nothing more to say except I did my bit and the trip was a success. I made the right connections in good time; I didn't need to worry about my goods being collected from the suppliers and delivered on schedule; I just focused on the product and on closing the deals, on the trip, and back at home. It all went like clockwork and wouldn't you know, the combined consignment got back before I did, and you can imagine how happy my boss was, can't you?

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