Are You Using Regime 42 For Your DDP EU Exports?

By using the DDP Regime 42 scheme, Simarco are able to improve EU customs efficiencies, and even reduce door to door transit times, for DDP export shipments moving to European Union countries.

Regime 42 allows for an intra-community supply of goods to another EU Member State.  Under this scheme, we can present goods to our French partner to clear into EU free circulation at the time of arrival at the French border (Calais or Dunkirk). An intra-community supply is then made for the goods to the destination EU Member State (if located outside France).

The benefits include:

• Simarco can customs clear goods at the EU frontier SMART border (Calais or Dunkirk) and defer the payment of Import VAT, so no monies need to be exchanged.  Should duty be incurred, this cost will be charged back to the GB exporter.
• This avoids delays in delivering goods, or waiting for consignees to pay Import VAT or duty before the release of goods at destination.
• Larger shipments can deliver directly on an international trailer, rather than transhipping via one of our partner hubs, by removing the barrier of customs clearance and/or payment delays at final destination.

Simarco are able to set these benefits up in as little as 2 days, but we do require some forms completed to do so:

• Power of Attorney (authorising our customs partner to fulfil the import formalities on your behalf in France).
• Fiscal Mandate (appointing our tax partner as your Tax Agent, who then register you for VAT in France and report the transactions to French Tax Authorities for VAT and Intrastat purposes).
• EU EORI Application (unless you already have an EORI).
• Regime 42 Process Document to be signed by the consignee. (If goods are for delivery outside of France, they need to sign this to confirm their understanding of the goods being cleared in France, but still need to enter the purchase into their records as usual).

Unfortunately, for French deliveries, the process of registering for VAT takes approximately 3 months. However, during this time, you can share your Tax Agents global VAT number and still use Regime 42 for DDP sales into all other EU countries.

Once set up, there will be specific requirements for the export commercial invoice and a need to provide the consignee with a copy of the customs entry, but Simarco will guide you through this process at the time.

If you would like to find out more about the above feature, then please do not hesitate to contact us.

China: Covid Lockdowns Impacting Exports

Cities throughout China are still battling Covid with lockdown measures, which has impacted export production in many areas.

Right now, there are believed to be 33 cities in the country that have partial or full Covid restrictions in place, which is affecting 65 million people.

Chengdu was the most recent city to go into full lockdown earlier this month. With 21.5 million residents, this became the largest lockdown since Shanghai’s eight week closure in June. It’s citizens have endured heatwaves, power cuts, food shortages, quarantine and last week an earthquake that killed 65 people.

Other key economic centres, including the port cities of Shenzhen, Guangzhou, Dalian and Tianjin have also been subject to Covid measures. Most of the 18 million people in the city of Shenzhen remain under some form of restrictions.

There has been a general dip in demand for Chinese products, which followed the post outbreak period of astronomical ocean freight rates. Therefore, with the country also still enforcing its zero tolerance approach to Covid, there looks to be challenging times ahead for the country and its export production.

New Felixstowe Port Strike Set

Workers from the Unite Union at the Port of Felixstowe have now decided on another eight day strike from September 27th 2022.

The confirmed date for the industrial action is due to overlap with the upcoming walk out at the Port of Liverpool, which is set for two weeks from Monday. Unite and their members are responsible for both strikes.

Management at Felixstowe had started the process of paying their last wage offer to workers without the approval of the union, in what looked like an attempt to convince workers not to walk out. However, despite their willingness to apply the 7% + £500 increase and backdate it to January, the latest ballot resulted in an overwhelming vote to strike.

Both parties are unsurprisingly blaming each other, although the Port are confident that with declining Asia volumes, the disruption will be kept to a minimum.

Simarco are continuing to monitor the situation and will update on any major developments.

National Mourning and Bank Holiday

On Thursday 8th September 2022 we were saddened to hear that Queen Elizabeth II had passed away, at the age of 96.  We send our heartfelt condolences and deepest sympathies to the Royal family at this difficult time.

The UK government has announced that Queen Elizabeth II’s state funeral will be on Monday 19^th September, when a national bank holiday will mark the final day of the period of national mourning. 

In a mark of respect and in line with government advice, Simarco will be observing the Bank Holiday and closing for the day.

Port Of Liverpool Strike Dates Confirmed

Dock workers at the Port of Liverpool are now set to strike for two weeks from September 19th to October 3rd, as confirmed by the Unite trade union.

The upcoming strike follows a balot of the union’s Liverpool members which overwhelmingly resulted in a vote for industrial action over pay.

Unite are also the union that led workers out from Felixstowe port last month, another dispute over pay which remains ongoing and is expected to see further walk outs.

Liverpool port management state they have offered a well above average 8.3% increase, along with improvements to sick pay, pensions and shifts. Adding that wages at the port have grown by 42% in the past decade.

While the management are encouraging further talks, it seems likely that the walk out will still go ahead as planned, especially if the Felixstowe dispute is anything to go by.

Simarco are watching the situation closely and will continue to update with any major developments.

Simarco UAE Service Reducing Door Delivery Costs

Simarco’s air freight services to the United Arab Emirates are having a particularly big impact on customers who follow the full logistics costs to door.

In some cases, we have managed to provide UK exporters with DDU or DAP prices, in other words including the overseas local charges, that have been an improvement on existing rates which were priced to arrival.

Simarco’s services are based on direct services to Dubai, where our fantastic partner is able to clear customs and distribute throughout the seven Emirates at very competitive pricing.

Even for exporters that are not responsible for paying charges through to door, the ability to provide excellent local coverage at very reasonable prices can be viewed as a huge advantage for their customer(s) in the Emirates.

Our air freight team are so confident in the service that they are willing to offer free export and import clearance on the first shipment for new customers as a special promotional offer.

For a hassle free, ultra competitive price, please email george.fulcher@simarco.com

Import CDS Due Next Month – Are You Ready?

As we have communicated previously, HMRC will be changing the customs process for import and export ports by replacing the current CHIEF system. According to HMRC, the Customs Declaration Service (CDS) will be in place as outlined below.

• 30 September 2022 – CDS will replace CHIEF for UK import declarations.

• 31 March 2023 – CDS will replace CHIEF for UK export declarations..

Therefore, the import changes are effective NEXT MONTH.

ACTION IMPORTERS MUST TAKE NOW… 

1. All businesses MUST register themselves for CDS through their own Government Gateway portal. 
   Get access to the Customs Declaration Service – GOV.UK (www.gov.uk) 
   
   A trader checklist is available from the GOV.UK website. To download, please use this link: 
   UK Trader Checklist: Moving to CDS 
   
2. Importers with Customs Deferment facilities MUST set up a new direct debit for their accounts to work with CDS. The current CHIEF direct debit will not work after 30th September.
   Set up CDS Deferment Direct Debit

Please note that if you have not registered for CDS prior to the dates outlined above, an export or import declaration cannot be made on your behalf. This will mean your goods are unable to export from UK (for UK departures) or clear UK customs (for UK arrivals).

 If you have any questions, please contact cdsenquiries@simarco.com 

Liverpool Port Now Facing Strike Action

As the Felixstowe port strike looks increasingly likely to proceed next week, news has emerged that Liverpool dock workers have also decided to strike.

The Unite union, who’s members voted for the upcoming strike at Felixstowe, balloted 500 Liverpool dock workers recently and 99% of the votes cast were in favour of industrial action. Once more, the union has described the port’s wage offer as effectively being a wage reduction due to high inflation.

There are no dates set for the Liverpool strike action as of yet, with the Union believed to be closing a ballot of 60 port engineers on Wednesday 24th August. This would appear to make it unlikely that the Liverpool strike will coincide with Felixstowe’s action.

While Liverpool is not a major player in the mass market of Asia, like Felixstowe and Southampton, it remains one of the UK’s largest container ports.

Simarco will continue to monitor the situation at both ports and will advise of any major updates.

Felixstowe Port Strike Set For Eight Days

A port strike at Felixstowe has now been set by the Unite union which will last for eight days this month, starting Sunday 21st and ending on Monday 29th August.

The date has been set after the latest round of negotiations between the port management and the workers union broke down, even though a revised offer was made.

Last week, members of the union were balloted and 92% of the votes cast were in favour of striking.

Since then, a revised increased pay offer of 7%, up from 5%, was made, but Unite continue to argue that considering inflation, the offer is effectively a pay cut.

The expected strike, at the UK’s largest container port, will have a negative impact on many imports and exports. We are continuing to monitor the situation closely and will update any further developments.

Felixstowe Port Set For August Strike

Felixstowe looks set for a strike next month after the most recent negotiations between the port management and the workers union broke down recently.

As a result, members of the Unite union have been balloted and 92% of the votes cast were in favour of striking. While there are no specific dates set, it is reported that Unite have paused for ‘a short window of opportunity’, to allow the port time to consider its position.

The dispute follows an increased pay offer from the Port of 5%, which follows on from a 1.4% rise the workers received last year. Unite argue that considering inflation is over 11%, what the port has offered is effectively a pay cut.

Any strikes at the UK’s largest container port will have a negative impact on many imports and exports, therefore we are hoping that some last minute agreement can be made.

In the meantime, we are watching the situation closely and will update any significant developments.