H.M.Paperwork - Filling out the Forms!

Most of the information in this section has been taken from "The International Freight Guide" with the kind permission of the British International Freight Association.

Bill of Lading
Airway Bill
CMR Note
Standard Shipping Note
Certificates of Origin
ATA Carnet
Movement Certificates
The Role of Customs and International Trade
Customs Entry and Customs Procedure Codes
Community Transit & the Single Market Effect
EDI - Customs, Trade & the Future

EDI - CUSTOMS AND TRADE

Communication between the forwarder, their customer, and Customs is a crucial part of the clearance process. It involves a unique two-way contact to interpret the wishes of the shipper, while at the same time satisfying the legal requirements of Customs.

Increasingly, electronic data interchange (EDI) features in this communication chain, with data being downloaded from shippers' computer systems to the forwarder, then being further manipulated, before finally passing to Customs.

Most shipment data is passed to Customs via local port/airport direct trader input (DTI) communities, for example, the MCP operation at Felixstowe, or the ASM system at Heathrow, CNS at Southampton, etc.

These differences between the operating systems lead to complications and require different computer arrangements in each location to cope with the varying needs. The resulting extra cost is, of course, paid by shippers using the service.

In order to become a member of a community, the forwarder has to obtain a "badge" identity, which incurs an annual fee. Each shipment is then charged at a standard rate for use of the DTI community to arrange clearance.

One advantage of the community system is that it also provides an inventory control for all the goods at the location, and consequently interrogations can be made to ascertain the latest status of the cargo. This data can then be made available to shippers as part of the forwarder's tracking system.

Customs also makes use of community systems to broadcast messages to companies who are linked in, regarding changes in requirements, meetings and so on.

CUSTOMS "The Future"

So what of the future for Customs and associated activities? Traditionally, goods being imported or exported have been cleared at the port of departure or arrival. This seems bound to change as Customs are already actively encouraging shippers to arrange clearance inland at their own premises.

In order to support inland clearance, investigations are also being made into paperless declarations with the minimum of information at the port or airport, thereby allowing immediate movement to the customer's warehouse for clearance later.

Plans announced also include the greater use of customs warehousing to delay the payment of duty and VAT until the very last moment, thereby improving cashflow and business planning. Customs procedure codes and the rules which govern them also seem certain to be relaxed, and made more flexible.

Perhaps one of the major gains from the above proposals, however, will be to allow the customer to decide at the very last possible moment the customs' regime to which the goods are to be declared. This will lead to more simple controls by shippers and make customs reporting more easier.

Another gain if shippers elect to clear at their premises will come from the ability to make periodic declarations rather than consignment by consignment. Data accumulation over the period being reported is now increasingly handled via normal stock control systems, allowing automatic reporting to Customs at the end of the period. Often this stock control process is undertaken by a forwarder as part of the overall warehousing and distribution package.

While the overall trend is toward simplification at the point of arrival, the need to supply detailed information after shipment remains a major activity for all traders. Many of the new regulations will also require the use of the community transit system to achieve them, with consequent risks for proper discharge on arrival.

The need for community transit to be involved has inherent risks which the customer cannot expect a forwarder to handle without recompense. This is due to the high cost of the bank guarantee to establish the authorisation, and the increasing amount of fraud in the system as a whole. Consequently, it seems likely that many customers will seek the guarantee of release immediately on arrival, but then ask their forwarder to undertake the clearance at their premises on a periodic basis.

Shippers who do not wish to set up their own customs' arrangements are increasingly making use of forwarders' own customs warehouses, or enhanced remote transit shed (ERTS) facilities. Customs warehousing at the forwarder's premises allows shippers to take advantage of the delayed payments on imports, liable to duty and VAT, but leave the forwarder to handle the Customs' work.

ERTS facilities allow the forwarder to deal with customs' activities in their own premises, and thereby avoid any potential problems at the air or sea port while undergoing customs' clearance. Many forwarders already successfully operate the ERTS process.

Link all these changes to the greater role now being played by forwarders in the logistics chain and we can see some major advantages appearing. Aspects such as overall supply chain management, "just in time" delivery concepts, and warehousing and distribution controls, make for a challenging future. This is especially so for those shippers and forwarders who are at the forefront of, and take full advantage of, the many changes now taking place within customs and the transport community as a whole.

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