Since 1st January 2021, GB Importers and EU Exporters have been experiencing delays at the UK Customs Border Control for several different reasons; but one obstacle that can easily be eliminated is ensuring that the goods arrive at the border with the correct documentation, detailing the correct information.
Goods arriving at the UK Customs Border must have the following documents available:
Commercial Invoice (with specific information detailed on it).
Packing List (showing detailed line items with weights).
CMR Document (which matches the information detailed on the first two documents).
AGGREEING INCOTERMS EARLY To facilitate commerce around the world, the International Chamber of Commerce (ICC) publishes a set of Incoterms, officially known as International Commercial Terms. Globally recognised, Incoterms prevent confusion in foreign trade contracts by clarifying the obligations of buyers and sellers; these need to be stated and agreed by all parties. GB Buyers should ensure that the correct Incoterms have been agreed with the Seller at the point of accepting their Quotation. The table below shows the three main Incoterms that are applicable to Elevator Equipment arriving by Road Freight into GB.
Ex Works (EXE)
EXW means the buyer must arrange all transport, export documentation, cover all freight charges, and fulfil the importation and delivery process. Once the goods are collected from the seller’s property, the risk is transferred to the buyer.
This is the most advantageous choice for the seller as they have no responsibility apart from making the goods available.
This type of transport leaves all risk and responsibility on the buyer, so newbies and buyers unfamiliar with exporting are advised to use a freighting and logistics company to avoid errors and unforeseen costs associated with shipping and transporting the goods.
Free Carrier (FCA)
This Incoterm provides the buyer with flexibility, as they can arrange carriage, frequently at a better price than what their seller might quote. While the buyer assumes all risks and responsibilities once the goods reach the point of export.
Delivered at Place (DAP)
DAP is where the seller is responsible for all costs and risks associated with the delivery of the goods to the final agreed-upon place, usually the buyer’s premises, the buyer is only responsible for importing and unloading the cargo.
Buyers need to understand DAP does not mean there will be no additional charges outside of the DAP product cost. They will still need to factor in freight insurance (if required), import taxes (currently zero rated), customs brokerage, and any expenses incurred to unload the cargo at the destination.
CHECKING THE COMMERCIAL INVOICE AND PACKING LIST
Adept Elevator Storage & Distribution have created a seventeen-point checklist to ensure that the required information is present on all documents, before they are presented at the UK Customs Border Control; we provide a Report detailing any anomalies to enable you to avoid delays due to information shortfall.
GB CUSTOMS CLEARANCE
GB Buyers should be aware that in all instances, they will be responsible for paying Import Duty (currently zero rated), VAT and GB Customs Clearance. Adept Elevator Storage & Distribution can obtain the GB Customs Clearance on your behalf; click here for a Free Quotation.
CONCLUSION
Make sure that they have agreed the best Incoterms that suit their company’s desired goals.
Take steps to ensure that the Customs Documentation is complete and correct.