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BIFAlink
The magazine of the
British International
Freight Association
Issue: 271
INSIDE
7: News
Port of Felixstowe
doubles rail freight
capacity
9: Legal Eagle
Know your BIFA
Standard Trading
Conditions
It’
’s time to look at Azyra.
It’s
May 2013 3
BIFAlink News Desk www.bifa.org
Ian Matheson, from Impress Communications, reviews some recent news that might impact on members’ business
On the waves
According to the latest Drewry
Logistics Executive Briefing for
importers and exporters, nearly 150
sailings were cancelled on the
transpacific and Asia-Europe routes
between October 2012 and February
2013. The report says that these
have had demonstrable effects on
freight rates and on the regularity of
service provided to shippers. Drewry
asks whether this carrier practice of
cancelling sailings will continue
beyond the winter months?
In business
Overland would like to see maximum HGV IATA is set for a major restructuring Since the launch of Real Time
Haulage operators should brace dimensions of 18.75 m in length this summer “to even better Information (RTI) submission of PAYE
themselves for a new round of and 44 tonnes for international address the needs of its 240 returns last month, HM Revenue &
merger and acquisition activity, as a transport, and the blocking of member airlines” said a statement. Customs has reported six-digit
series of curious circumstances cross-border traffic of mega trucks. volumes of activity. Under the new
begin to shape the industry, Emirates SkyCargo has become the PAYE reporting system, introduced
according to a new report from A Freedom of Information request first carrier to implement Electronic- on 6 April, employers report PAYE in
analyst Plimsoll Publishing. The from a local resident has revealed Air Waybill (e-AWB) shipments real time whenever they pay their
study warns that a combination of that St Albans District Council under the industry’s recently ratified employees, rather than annually.
stockpiling cash, difficult growth, spent almost £1 million in opposing multilateral e-AWB standard.
low interest rates and ageing a rail freight terminal being built in The CBI has demanded a new
directors has left at least 75 the city, with £937,880 having been Portside package of export-boosting
companies ripe for acquisition as spent on the application over the Construction is set to begin this measures to help British firms
the sector consolidates, evolves last four years, not including council summer on the Heysham to M6 link unlock overseas opportunities. They
and starts to prosper again. officers’ time. road, which was given the green include an incentivising tax break, a
light three years ago and will allow review of the practicalities of the
After an industry campaign, HM In the air traffic travelling to and from Bribery Act and making export
Revenue & Customs is set to The late timing of the Chinese New Heysham port to avoid Lancaster. finance schemes easier to access.
increase the overnight subsistence Year skewed global cargo statistics The link road is expected to be
allowance for HGV drivers. For in February, IATA figures show. completed in two years. The European Commission has
lorries without sleeper cabs, the Freight volumes stalled 6.2% from launched a €66.7 million call for
amount will rise to £35.90, an February 2012, though February Road haulage traffic at the Port of proposals to counter road
increase of £1.05, while the amount volumes actually rose 2%, on an Dover increased 6.75% to 518,979 congestion and make freight
for lorries with sleeper cabs will rise adjusted basis year-on-year. In fact, vehicles during the first quarter of transport more environmentally
to £26.20, an increase of 80p. seasonally adjusted freight volumes 2013 compared with one year friendly under the Marco Polo
were 2.5% higher than they were at earlier, helping the Kent gateway to programme, which funds
Lobby group Freight on Rail is the October 2012 low point. Both beat the UK’s economic trend with sustainable freight transportation.
calling on Brussels to set maximum North American and European positive traffic growth for the Project proposals must be
limits on the length and weight of cargo carriers also posted declines period. Last year, the cross-Channel submitted before 23 August 2013
HGVs in its new legislation. They in the month. market had only two ferry services from companies throughout the EU.
4 May 2013
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BIFAlink News Desk www.bifa.org
BIFA US legislative
changes planned
Members at the Federal
raise £10,000 Maritime
Commission
The BIFA Liverpool Region Annual It was back in 1990 that FIATA first
Dinner was a sell-out on petitioned the US Federal
22 February. Maritime Commission (FMC)
Hosted by Radio Merseyside regarding NVOCC tariff
broadcaster Willie Miller, and with exemptions.
entertainment provided by Since then there have been
acclaimed comedian Josh Daniels, many attempts to lobby for
the evening proved to be not only changes to these regulations, so
the most enjoyable in recent years, we were pleased to hear that
but also the most productive in during its meeting on 13 February,
raising over £10,000 on the night for and Zoe’s Place. the Liner at Liverpool Hotel on the FMC approved a proposed
the chosen charities, the Ellesmere Plans are already in place for Friday 28 February. Look out for new rule for public comment.
Port Sea Cadets, Help for Heroes 2014 when the event will be held at details when bookings open in June. Under the proposed rule,
foreign Ocean Transportation
Intermediaries will be able to enter
6 May 2013
www.bifa.org News Desk BIFAlink
May 2013 7
BIFAlink News Desk www.bifa.org
New outbreak
of piracy in the
Gulf of Guinea
Just as the number of attacks off
Somalia decreases there has
been an increase in piracy
incidents to the west of Africa.
The new high risk area is the
Gulf of Guinea.
So far this year there have
been 11 attacks in which three
vessels were hijacked. There
were 55 attacks last year.
Currently the main target is oil
and the hijacked ships have had
some product stolen. This
contrasts with Somali attacks
where the targets are held for
ransom.
The UN Security Council
issued a series of resolutions
allowing foreign navies to
8 May 2013
www.bifa.org Legal Eagle BIFAlink
May 2013 9
BIFAlink Trade Services www.bifa.org
Temporary storage
rules take shape
In March, HM Revenue & Customs issued information paper (13) 16 entitled Update 1
– Review of ERTS & Temporary Storage Policy. Although it fails to provide complete
clarification of regulations, its main perceived benefit is that it will reduce overall costs
10 May 2013
www.bifa.org Trade Services BIFAlink
Members
would be
advised to
review their
existing
authorisation
in preparation
for the
forthcoming
changes
Since Customs Information Paper will allow carriers to renominate the movement. calculations. BIFA approached
(CIP) (11) 26 was issued, BIFA record to the ETSF operator or for After goods have arrived at the HMRC for its view on the matter. Its
along with other organisations has them to claim the UCR. ETSF, the freight forwarder can very prompt response was: “Your
been actively involved in the HM Goods are removed under Transit ‘unlock’ its records and submit astute Members are absolutely
Revenue & Customs (HMRC) (Stage Two) from the frontier to the routed entries in the normal manner. right. If goods are released at the
consultation process concerning ETSF on public roads using either Although no reference is made to UK frontier (in other words released
temporary storage and enhanced full Transit or Simplified Transit Route H entries in the CIP, it is for free circulation, with all customs
remote transit shed (ERTS) procedures. Discussions with important to note that procedures duties at import paid) they have the
operations. HMRC established that goods remain unchanged for this specific status of Community goods and do
During this period, HMRC entered transit when physically type of entry. not need to be placed under Transit
consulted with trade on many loaded onto a vehicle and are Looking into the future, BIFA is to move them to the ERTS, the
aspects of temporary storage. In discharged from it upon their arrival seeking clarification from the Border guarantee amount only needs to
March 2013, HMRC issued CIP (13) at the ETSF – Stage Three. Force on how to process Route 1, 2 cover the customs duties and other
16 entitled Update 1 – Review of and 5 entries being transferred from charges on the goods not in free
ERTS & Temporary Storage Policy. Agreement reached the frontier to the ETSF. BIFA circulation.”
The consensus amongst our During discussions with HMRC it believes that on an individual basis
Members is that HMRC missed an was agreed that freight forwarders the ETSF operator should discuss Benefits
opportunity to “provide point-blank could enter goods against their own with the Border Force and, if they In practice, this means that lower
clarification” of the regulations ETSF inventory record to a customs satisfy their requirements, a general sums need to be declared as being
surrounding the operation of an procedure or use prior to the authorisation could be written into in Transit, thus reducing the level of
ERTS. physical movement of the goods the ETSF Approval document guarantee required for those
This important CIP is nationally receiving a numbered and routed permitting them to remove Route 1 Members who do not benefit from a
applicable for all goods arriving at CHIEF (Customs Handling of Import and 2’s to the ETSF. 100% guarantee waiver. The main
the frontier, which are subsequently and Export Freight) entry. BIFA believes that shipments perceived benefit is that as the sum
removed to an ERTS (renamed as When the vehicle collects the should be removed to the ETSF for that needs to be guaranteed is
an External Temporary Storage goods to be moved to the ETSF, final examination and clearance, reduced, the overall cost will be
Facility (ETSF)) using Transit. The those consignments that have not and any frontier examinations reduced.
import process for handling the been declared to HMRC enter should only be undertaken in During 2013, it is anticipated that
goods from arrival at the frontier to Transit. It is only during the actual exceptional circumstances. This HMRC will issue further updates
arriving at the ETSF is in three movement of the vehicle from the concept is acknowledged within the regarding temporary storage. It is
stages: frontier to the ETSF that CIP where it states: “The Border important that Members keep up to
• Stage One – Frontier arrival declarations can no longer be Force may agree for physical date with these announcements. On
• Stage Two – Transit submitted. The freight forwarder will examination to take place at the 1 April 2013, a roll-out programme
• Stage Three – Arrival at the have to delay declarations for T1 ETSF whether on a specific or commenced to convert existing
ETSF. status goods in transit until they general basis.” ERTS to the new ETSF. In the light
have arrived at the ETSF. In effect, After publication of the CIP, some of this programme, Members would
At Stage One, a record is created the freight forwarder has to ‘lock’ its Members noted that cleared goods be advised to review their existing
to indicate that goods have arrived records to inhibit the submission of do not enter Transit and need not authorisation in preparation for the
or that their arrival is imminent. This a routed entry during the Transit be included in any guarantee forthcoming changes.
May 2013 11
BIFAlink Trade Services www.bifa.org
Reality dawns
So far so good, so during 2009/10
IATA and FIATA worked together to
develop a model e-AWB
agreement that the forwarder and
the airline would sign on a bilateral
basis before starting to submit
e-AWBs.
Subsequently though the reality
was that both parties soon realised
that having to sign numerous
separate agreements was simply
too onerous to undertake.
Moreover, the primary objective,
which of course was to promote
greater adoption of the e-AWB,
would be hampered. There was
nothing for it but to draw up a
standard multilateral agreement
that could be signed once by
airlines and forwarders with IATA
administering the project.
Legal framework
The multilateral e-AWB Agreement
provides the legal framework to
conclude air cargo contracts by
electronic means. It includes
provisions for the consent to do an
e-AWB, the rights and obligations
of the parties, and the
confidentiality and security of data.
Nothing in the agreement
changes the airlines’ conditions of
contract nor mandates that either
airlines or forwarders who
participate in the multilateral
agreement are obliged to have an
e-AWB with each other.
12 May 2013
BIFAlink Trade Services www.bifa.org
14 May 2013
www.bifa.org Legal Eagle BIFAlink
May 2013 15
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16 May 2013
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May 2013 17
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18 May 2013
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20 May 2013