The new 2020 Incoterms to replace the current 2010 versions are now published. When negotiating freight terms in contracts it is important to be clear which Incoterms are being used. If not specified from the 1st January it will be assume that the new version applies. Efforts have been made by International Chamber of Commerce (ICC) to make the terms much easier to use. They have adopted a new layout in the hope of reducing the common error of using the wrong Incoterms. Often both shippers and buyers have not released they are selling or buying under the wrong term until something goes wrong.

The new format endeavours to make it much easier to establish the differences and the responsibilities which each Incoterm comes with.

It is important for all shippers and buyers remember Incoterms are contractual and failure to supply the goods under these terms or as a buyer understand which term you are buying on may leave you liable for additional costs

The international Chamber of Commerce have highlighted the following rule changes:

Our Incoterms will be update to reflect the new 2020 terms.

We are still seeing potential shippers and consignees trying to ship extra goods in containers without declaring them. Most of the time these goods are either personal effects or gifts being sent without any commercial transaction being involved. Simply there is space left in the shipping container and it seems an obvious option to use it up.

You CANNOT do this without declaring the items on the packing list/shipping manifest. Even if they are you own goods they still MUST be declared. If you container is inspected by the local importing customs officials they will be a best unhappy and worst seize the goods (or even the entire container). This applies to virtually all countries.

The goods can be just given a nominal value on any shipping invoice if they are gifts or in the case of personal effects all items must be fully listed. Note you cannot declare a 5000USD item as a 10USD gift. Most customs have systems in place to notice undervalued items and will issue there own valuation and also a fine.

In summary again everything must be declared. If unsure you should speak to you importing customs broker or freight forwarder BEFORE the container is shipped

The UK Customs has changed the way to apply for EORI numbers in the UK. They are no longer accepting any more emailed C220 application forms and it all applications now have to be submitted through an online form @ www.hmrc.gov.uk. This applies to both non-VAT and VAT registered applicants.
If you are already vat registered in the UK you can check if your VAT number is set up as an EORI by adding ‘000’ to the end of it and then entering it in the EORI checker at this address by clicking here: EU EORI Validation Checker (takes you off this site to the EU site). If it confirms valid then you do not need to do anything further.
If it says invalid then you need to apply to have your VAT number registered as an EORI by filling in the form at this address on the HM Customs site: EORI VAT Registered in the UK
If you are not VAT registered within the UK, depending on whether you are importing or exporting, you need to apply for an EORI number on the HM Customs site. For Imports you need to got to this form here: EORI Non VAT Registered – Import and for exports you need to go here: EORI Non VAT Registered – Export

We cannot no longer submit EORI applications on you behalf. If you have any queries regarding the application process you need to use the HM Customs help for here: EORI Contact Form.

 

 

It is always important to ensure who ever is packing your goods into shipping containers knows how to correctly stow them. We see many containers where the goods packaging has been damaged and in some cases the actual goods as well. Damage to the cartons is particularly important if they are going straight out to the end buyer. Nobody likes receiving boxes which are squashed, torn  or generally misshapen.

 

Often the issues we see could have been avoided with a little care. As seen in the photo below. The box on top of the other box probably was fine when initially packed in, but due to not being stacked directly on top of the other one and combined with being some space inside the box. As the container has move it resulted in the box settling and distorting. All because a little care was not taken when initially loaded.

Squashed Boxes

Poor stacking which causes boxes collapsed

 

 

Crush damage due too much weight being placed ontop of another box is further typically seen issue. Again what often happens is that boxs which can be stacked say 5 high in stable warehouse, when loaded into a container which then spends 4 weeks rocking back and forth while in transit, causes the bottom boxes to become squashed and in worst cases torn open. It is important to ensure that the cartons goods are shipped in are strong enough to be stacked the same in container as in a warehouse

One of the most common requests we receive is importing motorcycles such as Goldstars, and triumphs both restored and those to be restored and the ever  popular lambretta scooter. We have added a dedicated page to our site covering the main points of import a motorbike from India.

 

The easiest way to import is to use a dealer/supplier who has exported before. If you buy you motorcycle / scooter  on the terms FOB this had the advantage of the the shipper worrying about all the local India charges. They will arrange to crate the motorbike for shipment, ensure all the relevent export documentation is filed, and get it to the container loading terminal.  If you buy ex-works you will require us to arrange all this on your behalf and as it can be time-consuming the charge can be as much as what you would pay buying FOB.

 

If in doubt we are always happy to check for free if your supplier is correctly registered or if you are going to have to use an agent for the export documentation.

 

If you do not want to deal direct with the Indian supplier then you can deal with our product manager from BusinessLink India who will ensure your contract for the shipment is valid and it will get fulfilled.

 

Golden rule – No full payment up front. Cash Against Documents is the accepted way for any reputable dealer/supplier. Here you only pay for the goods once the shipping documents have been issued. Once this is done then you pay the money and release and they release the documents including if valid. If your supplier wants payment upfront then walk away. Once they have shown proof that they have the product available and they want a deposit, pay no more than 25%.

 

Duties and Taxes

If you are importing into the EU (which includes the UK) you will pay duty and VAT at your countries set level. If you

 

Importing into the USA is slightly different to Europe. A lot of motorbikes and scooters will not meet current Environmental Protection Agency (EPA) rules. Unlike in for example in the UK where this means you simply could not use it on public highways. In the USA you have to bring the bike up to current standards before clearance. If you cannot do this then the bike has to be re-exported or destroyed. Make sure you can do this before you buy a machine.

 

Additionally in the USA while there is no VAT tax you will have to pay duty on the invoice value of the bike and this can be up to 2.4%. Note if you cannot prove the purchase value or customs officials think it is undeclared they will use the “Blue Book” value to assess the duty due.

 

If you have any doubts contact your local customs office or email us with what you are planning to buy, where from you want to export the motorbike and where in the world you are going to import the motorbike.

 

There are many types of shipping containers which we can supply to move goods around the world. The most popular are the 20ft dry van container, 40ft dry van container and 40ft high cube container. We have a chart available which shows the sizes both external and internal available to make it easier for you to decided which size you need. If your cargos is insufficent to fill half a 20ft container then you will need to look for an Less than Container load service which can be found here.

With the relaxation of sanctions for trading with country formally known as Burma. There is an increasing demand for both import and export services. There are several enterprise zones in operation in Myanmar. Internally the transportion struture not good, however considering it has been under sanctions from the West it is far better than some countries which have had money poured into, with investments begining to come in the infrastructure quality will no doubt rapidly increase.

Andrew James forwarding has been working at developing logistics four services within Myanmar.

Both Full container loads (FCL) and less than container loads (LCL) services to and from the UK and several EU countries, US and Canada.

Project Cargo consultation for new Oil and Gas contracts and finally general supply chain management,key if you are starting new manufacturing projects here.

Currently airfreight services will be offered at a later date.

 

Silly season is in full flow at the moment with some of the shipping lines.  Anybody planning to arrange some freight from Asia back to Europe either using us or anybody else should be aware of the large freight increases being imposed by the shipping lines in the form of General Rate Increases (GRI) and Emergency Rate Surcharges (ERS) along with other incidentals such as piracy surcharges and container inspection fees. The end result is that rates have gone up by approach 1000$USD (and more in some cases). Additionally we have not even start to see Peak Rate Surcharges yet (PRS).

If you are wondering why this is happening, well it is  due to the huge losses some of the shipping lines have made due to the constant downward pressure of rates over the past couple of years. Bigger and bigger vessels has resulted in a glut of capacity plus the additional aggressive pricing between the lines. However such a massive hike in rates is just probably going to make people reconsider shipping now and  either look elsewhere or hold off to later and wait till one of the lines to decide to rapidly cut rates to grab market share which will once again result in more losses, probably followed by another rapid rate hike.

So prepare for a roller coaster ride on shipping rates in 2012, it is going to be interesting how it all pans out by year end.

We handle a lot of shipments here where we are just doing the customs brokerage and final delivery for clients who have purchased goods in China and India and allowed the supplier to arrange the freight. They often get a suprise when they find the UK charges are much higher than what was orginally expected and initially despute the charges saying the must be wrong as they where told the freight was only $10. Unfortunately they have fallen into the India/China service trap of the appearance cheap freight due to the way freight forwards have to operate in these countries. As a result the additional freight costs have to be recovered at some point and this is when the China or India Service Fee comes into effect along with higher documentation charges and exchange rate charges.

When arranging the actual shipping from these two countries you are best to arrange the shipment with a local to agent to you whether it would be  us or someone else you know. This way you can get all the charges up front. While the freight costs will appear to be higher, the overall shipment costs will be lower.

If you want to to purchase your products direct from the supplier on an ex-works basis rather than an FOB we can now do this as well. Our services include collection of the goods, preperation of paperwork and the actual export. If your supplier is not registed with the government for exports then we can assist with this.