When importing goods into the UK you need to have a harmonised customs commodity code. This is to calculate customs duties and to know if you require any licences for that particular product. Due to the tariff system being complicated it is often very difficult for the first time importer and even experience ones to pick the correct code to use. Anybody who has looked at the online trade tariff available at the UK government site will see that is a complex document with hundreds of pages, covering every conceivable product. Most clearing agents can help you find a suitable code for your product, though importers should always remember this can only be given as a recommendation. It is possible that the even an experienced agent is unsure of which is the best tariff code code to use for that product. The importer at this point then needs to apply for a binding tariff information decision directly from HM Customs and Excise. This is a legally binding decision in the UK (and until December 2020 the EU) which is valid on all imports and exports for the next 3 years.
One you have obtained the decision you can then use this to look up the commodity code in the trade tariff. This will tell you:
- The basic duty rate for imports
- If VAT is applicable for imports
- Depending on the country of origin if a preference rate (reduced duty) is applicable
- Any licences required
- Any other restrictions or requirements
The government notice number 600 goes in to further details on what you need to have before applying and how to apply. You can apply directly by following this link which will take you directly to the HM login page. https://secure.hmce.gov.uk/ecom/login/index.html. This service is free from the HM Customs and any website which charges for this service should be avoided as only HM Customs can issue the official decision. The customs duty liability team will require from you a detailed packing list and photographs of the intended product to be imported or exported. Any additional information such as brochures and manuals are also beneficial when submitting a request. In some cases the customs duty liability team may require you to send them a sample of the product so they can properly assess it.
As an importer if you are using a broker to clear you goods remember to pass this information on to them. If you are unsure how to read the trade tariff ask your broker to check it for you. Ensure you ask the broker before the shipment leaves the loading port to allow you time in case you need to obtain any additional documentation. HM Customs always has the right to right to you and withdraw the decision. Importers should be aware that is not possible to retrospectively apply the decision to customs declarations already made. The binding decision is only applicable to the importer named and is not transferrable to another one. In this case a new application would have to be made.
Transshipment in logistics occurs when cargo either individual pallets or full containers are moved from one transporter to another while being moved from the collection place to the delivery place. This practice is frequently undertaken by shipping lines in order to maximise the cargo loading of their vessels. Transhipping containers allows shipping lines to serve smaller ports which the large ocean vessels (often called the Mother Vessel) are unable to enter due to their draft,length or width. These are called feeder services and allow the small ports to connect to other ports all over the world. For container ocean freight services one of the biggest transshipment port is Singapore in the Far East. Other major transshipment ports are Rotterdam in Europe which has many feeder services calling at UK ports , Jebel Ali in the Middle East and Hong Kong in China.
Transshipment is a regular feature of multi-model shipments. Containers moving from an inland destination may initially move from a inland terminal to a port by rail, they are then transshipped onto a vessel and taken to the nearest destination port. Next they are transhipped onto a train, and sent by rail to the destination terminal.
For shippers moving containers which are going to be transhipped it does not mean any additional paperwork. Shippers should be aware that ocean transit times will normally always be longer compared to a direct service as the container has to be off loaded to quay and then wait for the feeder vessel to arrive at the port before being reloaded. Depending on how close the port is to the final destination this additional transit time may be offset as the final on-carriage by road or rail will be shorter. For shippers the main benefit for a transshipment service from a main country port to another main port is cheaper freight rates. So for low value, or non time sensitive shipments these routes are worth considering in any supply chain planning.
Co-loaders who consolidate part cargoes from many shippers may transship cargoes at strategic ports locations around the world. This allows the co-loader to increase efficiency and reduce transport costs for shippers. A co-loader may ship from 6 ports spread around the two different regions. The cargo from each individual port is insufficient to fill a full container for the other five ports. So the co-loader has a central port where all the cargo is consolidate. Now the co-loader has sufficient cargo to fill a container for each port. Neither the shipper nor the consignee is effected is still going being moved as contracted, but all parties benefit from the lower costs. Shippers should always ensure their cargo is suitably packed to ensure the shipment withstand being handle multiple times.
[This is part of logistics help articles]
AJF main operations in the Middle East are in Jebel Ali, U.A.E. served by our experienced agents. We offer a range of logistics services in this important logistics hub serving not just only the Middle East but also Europe, Africa, USA/Canada and the rest of the Americas in co-operation with them. Due to the U.A.E geographical location it can serve as a practical location to serve Europe and Africa and the Far East including Australia. Companies with manufacturing facilities and supply chains which start in China can have the goods transport to Jebel Ali from various China ports. At Jebel Ali the goods can be devanned and then the products can be picked to assemble the final shipment from the individual factories to the final consignees’ requirements.
Below are the logistic operations which can be undertaken in Jebel Ali.
- Warehousing
- Transshipment
- Cargo Consolidation
- Cargo Splitting and Distribution
- Product Relabelling
- Order Fulfilment
Our warehousing services are available to all our clients who need to rework their products, have them stored for later distribution, or quality inspected. Where containers have been handball loaded at the manufacture we can destuff the container, repack on pallets, shrink-wrap and then export to the final delivery destination.
Our transshipping services allow importers and exporters to change containers, packaging marks and shipping documentation where the shipper may not want the receiver to know where the goods original origin was. This service is particularly useful where the shipper is acting as an agent only and never handles the goods directly themselves and wants to avoid the buyer contacting the supplier directly. It is is also useful for companies shipping to politically sensitive regions where there may be restrictions on them.
The consolidation service allows clients who source from various factories which are exported from various ports in the far east and have a central location to consolidate these shipments before transporting them to their final destination in the Middle East, Africa, or Europe. We take either Full Container Loads or part loads, store them and once we have sufficient goods in store we then load them into one container, arrange the new paperwork and then export them. The consolidation service can be used for multiple shipments from Europe to go to a Far East country or Australia.
Cargo Splitting and Distribution is the reverse to the consolidation service where a client has one supplier but multiple receiving destinations. We take into our warehousing the shipment which can consist of one or multiple containers. The shipment is then devanned from the container. Following the orders given from the client the cargo is split and packed onto pallets, relabelled where required and then exported to each destination. This allows the client to export in bulk from the supplier at more cost effective rate and if required make if more difficult for them to know the final destination.
The order fulfilment services are suitable for clients with international supply chains which need a location with good links to all worldwide locations. We can pick orders to a clients specific requirements and they can then be airfreighted out immediately to be with the end customer within 24hrs or to a clients distribution centre for them to manage the final delivery. This allows stock to be held in one central location which allow clients to be able to manage seasonal demands or environment where there may be a sudden demand for one product type in multiple locations.