September Newsletter

Welcome

Welcome to the inaugural issue of the CUSTOMS CLEARANCE LIMITED e-newsletter. As our range of services broadens and the company grows, our regular newsletter will be a great way to keep in touch with customers past and present, prospects, partner companies and general enquirers alike, and let you know of the customs and importation issues affecting your business. Our aim is to keep you abreast of the latest developments in our business, and in the world of customs and importing in general.

This month sees the launch of our new web site. We hope you agree that it does a great job of illustrating our services and experience and answering your questions.

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

SAD Harmonisation - What it is and why you need to know about it
Customs Consultancy - When to ask the experts
What to do when shopping fever overtakes you abroad!!

SAD Harmonisation - What it is and why you need to know about it

SAD Harmonisation is a major step by the European Union towards aligning the rules for completion of SAD (Single Administrative Document) Customs declarations across all EU Member States. It introduces changes to the way that Import, Export, Warehousing, Transit and Community Status declarations are completed.

Whilst the paper document itself is not changing, there will be a significant change in the information input to many of the boxes, for example new and/or changed codes. For those who make customs declarations through a software package, your software will require updating. HMRC have advised that the planned implementation date of 1st July 2007 has been postponed to later in the year, with the date yet to be announced. From the revised 'SADH Day', there will be a 3-month period during which time any declarants who were not ready to make declarations in the new format on the implementation date must become 'SAD H-compliant'. This effectively means a dual running period, after which time only harmonised declarations will be accepted.

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.

Click here to access the HMRC web site SAD Harmonisation FAQs.

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Customs Consultancy - When to ask the experts

Are you a business which import goods on a regular basis? Perhaps you're a retailer or wholesale distributor, or a business involved in e-commerce. Maybe you deal in furniture or household goods, electronics and technology, CDs and DVDs, arts and giftware. If so, you may well have your own importation process. But is it serving you as well as it could be? Are you completely confident that you're moving your goods as swiftly as possible, at the lowest cost, and in the most efficient way? Or maybe you've faced importation difficulties in the past - something got stuck at customs for days on end, or perhaps you ended up paying far more duty than you expected.

When you're in doubt about the efficiency of your importation and customs processes, it's time to call in the experts.

Rudee Bertie and Brian Kelly are joint MDs of Customs Clearance Ltd. With over 40 years experience of customs clearance and freight forwarding between them, Rudee and Brian have a thorough understanding of the challenges faced by organisations of all sizes, in managing importations and deliveries efficiently and cost-effectively and maintaining high levels of customer satisfaction.

Highly qualified to analyse and advise on your importation processes, Rudee and Brian are available for consultancy assignments. They will: Listen and gather data on the full picture - import, export, pick-up, delivery, storage and customs clearance - and possible areas of weakness. Review current service provision and processes and assess their effectiveness, value-for-money, suitability etc.

Make recommendations, without prejudice, on how best to improve the processes. This could involve recommending different service providers, providing cost/price comparisons, and/or tailoring a solution specific to individual requirements. 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.

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What to do when shopping fever overtakes you abroad!

Here's a little 'coffee break' story for you...

You're on your way back from a long-weekend in New York. You've stretched your credit cards to their limit. You've bought designer labels. Originals? Maybe. Maybe not. You feel great: you've just had an amazing time in a place you've only ever seen on TV - until now. You recall Starsky & Hutch, Hill Street Blues, Charlie's Angels, Kojak and more, from way back. It makes you feel just a little long-in-the-tooth. But age is experience and experience is knowledge, isn't it?

You had to buy another case to carry what you bought on 4th and 5th Avenue and almost everywhere where you stopped long enough to be lured by the bright lights and the choice - the choice, all around! In and out of department stores, a wide-eyed wander around Tiffany's, Saks, Bloomingdales. The odd coffee to-go, bagels for lunch, a show on Broadway one evening - everything caught your eye and took your fancy, and you indulged, boy, did you indulge! Only then finally when your feet wouldn't carry you another step, it was back to the hotel for a meal and a glass of wine - then another, well, the exchange rate is so rich at the moment, and it is your last night. Now you're sloshed, seeing double, and because you travelled alone you engage with every Tom, Dick and Harry or Trudi, Debbie and Harriet, whatever takes your fancy. Anyway you pass the night away or maybe you just pass out. And you know you have a flight to catch the next day, back home to London.

You awake close to midday, your head is pounding. Everything's a little hazy - of course, you slept with your contact lenses in. You get the picture? So your hand lotion becomes toothpaste and the toothpaste gets massaged into your nails...

You make it down to reception. The bell boy arranges a taxi and carries your cases to the main entrance and now you feel shame because you don't even have any cash for a tip, so you say something stupid like, "Do you know where the cash point is?". He feels embarrassed too, so he says, "Don't worry, I'll catch you next time you're in town, and have a nice day!" Yeah, right. At check-out things get worse as clerk tells you your card is declined and asks for another form of payment. You take out your Visa, your Mastercard, Electron, Solo, even your Nectar card and good old Boots Advantage... How could this be? You know you didn't spend that much over the last four days. Or did you? Then you get the print-out from last night's lavish dinner.... Oh dear. You go weak at the knees. Money gone, credit all used up. What to do?

You hold a board meeting with yourself and with a stroke of genius you remember you have the saviour, the company credit card - the good old company credit card that only comes out in emergencies. Naughty, but they'll forgive you this once, won't they?

Onwards and upwards to the airport...

Into the cab for the 45-minute run. You already know you have no cash so you start reading through the information printed in front of you. What next? You strike up a friendly conversation with the driver and just to make sure that you're reading it right, you say, "Excuse me, you do take Visa don't you?". The driver pauses slightly and replies, "Sure." though you can tell he's not thrilled. It's a relief because with only your company card to get you home, you'd have been walking the rest of the way to the airport.

At the airport terminal the driver helps you with your cases. You tip him royally, courtesy of your company. You make the payment as the bags are being wrenched from your grip by the kerbside check-in. Now you're being challenged by the ground staff - guess what, with all that shopping, your baggage is overweight and now you have an excess baggage fare to stump up. But for all those 'bargains'! You hand over the king-of-kings, the McDaddy company card, one more time.

And there you are, a little flustered, going through security at the back of that long line of people unbuckling the belts from their trousers, taking off their shoes and jewellery. Hand baggage, coats, jackets - it's all off and on to the conveyor belt security check - and all you can think about is getting on to the plane and catching up on your sleep.

At last you're at the departure gate and your flight is called. You board the plane, take your seat, settle yourself in and after listening to a few announcements and having a small cup of orange juice and the obligatory handful of peanuts, you fall deeply asleep. The next thing you know, you're being awakened for landing.

So you missed the airline breakfast. Not such a bad thing really, but what you really wanted was a nice hot, strong black coffee to get you started. Not to worry, you make your way to baggage reclaim. You're still half-asleep so you hire a porter to carry the burden of your wares and head for the customs channels - blue, green, and red in front of you. The porter, noting the scale of your luggage, instinctively heads towards the red 'goods to declare' channel. You shout forward, "What are you doing? That's the wrong way!" You've done the unthinkable and brought attention to yourself - now there's a swarm of uniformed customs officers surrounding your trolley. They escort you to the red channel - goods most definitely to declare.

The officer asks where you have travelled from and what was your flight number - and whether you have goods to declare... You mumble the answers sheepishly - it's as if you were already under arrest. The officer is annoyed and asks you to speak up. You finally get the words out as your goods are laid out before you. You're told you owe £450 pounds import duty and VAT - on top of what you had already paid for all your prized purchases. You owe it, there's no escape.

Here we go again - you might as well use the company credit card one more time. Might as well be hung for a sheep as for a lamb. But you're wrong... this is a business card with a strict limit and guess what, you've reached it already. Your last-resort card has been declined. What about cash? There are plenty of cash points in the arrivals terminal. To save face in front of strangers and other passengers pointing and staring in your direction, you plead ignorance and say, "There must be a problem with the card - let me go to the cash point or the bureau de change and get some money." Security will escort you out and, they'll escort you back in. While in the terminal you find that long-awaited hot black coffee, and a few minutes to sit and think. You have goods in your baggage that you can't afford to pay the tax on. You have no choice but to go back to the customs officer in the red channel and come clean - tell him you have no way of paying the charges today. So you get to security and tell them that you need to go back to the customs area. The security guard responds, "Oh, you mean the MIB area?". You're confused. MIB? What's that? What's that got to do with customs and the red channel? But you keep quiet and simply nod, not wishing to appear stupid, and the security guard leads the way.

Back in what you now know as the MIB area you approach the officer at the bench and you at last tell him the truth, holding your head in shame - but his response isn't what you expect. "No worry," he says, "you have two choices. You can call a broker from this list straight away and make arrangements with them to clear your baggage through. They will make the customs declaration on your behalf and then make arrangements with you to collect any payments due. Or, you can leave your baggage here now. I'll write you up a detention notice and then you need to go find a broker to clear your property through customs at a later date. But you have to make your arrangements directly with them. Just hand them this notice with the reference number and everything will be handled from there." Was it really that simple?

After all that, you breathe a sigh of relief, thank the officer rather too effusively and before you turn away to decide what to do next you ask, "What does MIB stand for then?". You know it isn't "Men in Black" as there's no sign of Will Smith and the other dude. The officer smiles and says, "MIB means Merchandise In Baggage". That's your purchases, in your own private luggage. What the broker will do for you now will be classified as an 'MIB clearance'."

Your decision made, you take a few numbers from the directory on the board and walk away from the red channel with your detention notice. Now it's over to the customs broker to clear your 'merchandise in baggage' - you're off to smooth things over with the boss! So who do you call? Not Ghostbusters... Call Customs Clearance Limited. And remember - never leave home for an overseas shopping trip without first arranging for your Customs Clearance broker meet you at MIB. He's the only 'Man in Black' you'll need!

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