Specialist Customs Clearance Services
Who are Cargo Flow Agency?
Cargo Flow Agency is a modern business, designed to meet the trading and customs needs of the independent United Kingdom. from the 1st January 2021.
Our Offices in Newhaven Harbour, East Sussex are conveniently located within the Newhaven ferry port and are supported by highly experienced international transport and customs specialists.
Why Choose Cargo Flow Agency?
In the build-up towards the reintroduction of customs controls for cargo to and from the European Union territories, our role will be to attempt to advise traders, with the intention of providing a platform for a smooth transition into 2021.
This will require us to continue to keep in touch with developments. The negotiations are ongoing, with resultant decisions on customs process being decided as a result. Therefore, any advice which we provide will be based on the best available current information.
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Customs Clearance Explained?
Customs Clearance is a process compulsory for all goods entering or leaving the EU. Customs clearance allows HM Customs & Excise to account for any due charges, ensure correct documentation has been used and conformity to EU law. It also allows Customs to monitor which goods are coming into or leaving the UK.
Ensure that the shipper is a registered EORI trader before attempting to export cargo.
Identify the Commodity Codes of all products to be shipped.
Ensure that the cargo is packed in accordance with the requirements of the
destination country. For example, the use of ISPM15 standard-compliant timber for pallets.
Produce a customs invoice, this will include details of the shipper, purchaser, cargo type and quantity, commodity code, value, selling terms. The invoice must also feature any declarations, for example, confirmation of origin, which are a requirement of the destination country.
In advance of the loading, provide the invoice to the appointed NES connected clearing agent. They will prepare the export declaration, based on the data which has been supplied to them. Notify the appointed transporter of the agent’s contact information.
The clearing agent will provide a copy of the NES declaration. This is a vital document; it will act as your proof of export in your dealings with HMRC
Ensure that the importer is a registered EORI trader, without registration, importation cannot commence.
If the selling terms, agreed with the supplier, require it, appoint a clearing agent to handle either specific transport routes or for all routes. The appointment will be confirmed through a formal appointment document, authorising an agent to represent the importer. Charges and terms will also be a part of the agency agreement.
If non-VAT registered, be prepared to pay the VAT immediately upon importation.
If VAT registered, the value of the transaction will usually be accounted for in your regular return to HMRC.
The clearing agent will receive the overseas export entry, usually electronically. This will be used, in association with the invoice, to prepare an import clearance entry.
If import duty is payable, the agent will notify the importer of the amount payable. This will be paid to HMRC by the importer, either as a single payment or through a Customs Deferment Account.
The clearing agent will supply you with a copy of the declaration, this is used for your verification of accuracy. It is, therefore, an important document.
Importers and exporters must remain aware that their appointed agent is acting on their behalves. Therefore, the accuracy of the data which the agent enters will depend on that which is provided to the agent. The legal responsibility for accurate submission will rest with the trader, not with the agent unless that agent is themselves responsible for wrongly entering otherwise accurate data.
The appointed agent will usually present the electronic export or import entry to the customs portal. The current system used by HMRC for import entries is known as CHIEF, this is due to be replaced with a modified system referred to as CDS. The change of portals may occur in March 2021.=
Export clearances are handled by NES.
Foreign customs agencies use similar digital platforms, for the purposes of reporting, calculation and statistical analysis.
Traders are not bound to use an agent. There is nothing to prevent a company from investing in the systems and expertise needed, enabling them to make their own declaration.
The person responsible for the entry will collate the data supplied by either the export trader through their invoice or in the case of an import the overseas export declaration and the relevant supplier’s documentation, in conjunction with any additional data required from the importer. This information will then be translated into an electronic file, which is lodged with HMRC.
Importations from non-EU sources are already subject to the payment of customs duties on importation. The rates of duty are defined within the UK Customs Tariff.
Variations in duty amounts are also described in the Tariff. Those variations may be favourable, which will occur when a Trade Deal is in place with a particular trading partner, or otherwise when HMRC or another agency determines that particular cargo types or sources will be liable to additional considerations. These may include anti-dumping duties, enhanced duty amounts, licencing, quotas, or other sanctions to retain the competitiveness of local markets.
The future trading relationship between the United Kingdom and the remaining 27 EU Member states, remains in September 2020, the subject of inter-Governmental negotiations. If a Trade deal is agreed, this may include a waiver of duty on most transactions between the parties involved. However, without a Trade deal, the rates defined by the UK Customs Tariff shall apply on importation.
These duty amounts will usually become payable at the time of declaration. This will require payment by bank transfer for each import transaction. A Duty Deferment
account will delay the duty payment, with the accumulated amounts of duty being paid on a monthly basis. A trader can apply for a Deferment Account, which will be subject to some fairly strict criteria.
VAT also becomes accountable on declaration. The amount payable will form a part of each trader’s periodic return. Non-VAT registered importers will have to pay the VAT amount immediately on import.
The declaration for import can be delayed. If the cargo is being moved to an AEO Approved warehouse, they can be stored for a defined period, until required. Prior to release from the warehouse, a declaration must be made, and payment made according to the usual HMRC requirements.