BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.
The magazine of the British International Freight Association December 2024 BIFA link Has the golden age of trade come to an end?
INSIDE: Montreal Convention amended • Entry Summary Declarations delay • IFF: Paving the way • NCTS 5 - What is changing? • Fraud warning • Awards fi nalists
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Issue: 412
Steve Parker’s Column
Christmas is coming
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266 (A company limited by guarantee. Registered in England: 00391973. VAT Registration: 216476363) Director General Steve Parker s.parker@bifa.org Member Policy & Compliance Director Robert Windsor r.windsor@bifa.org Member Support Director Spencer Stevenson s.stevenson@bifa.org Member Services Director Carl Hobbis c.hobbis@bifa.org Member Engagement Director Denise Hill d.hill@bifa.org International Relations Advisor Robert Keen r.keen@bifa.org Policy & Compliance Frontier Policy Manager Pawel Jarza p.jarza@bifa.org Policy & Compliance Advisor – Customs Igor Popovics i.popovics@bifa.org Policy & Compliance Adviser – Sustainable Logistics Mike Jones m.jones@bifa.org Policy & Compliance Advisor – Air David Stroud d.stroud@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org Web site: www.bifa.org E-mail: bifa@bifa.org Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors Steve Parker, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Igor Popovics, Robert Keen, Denise Hill, Mike Jones, Pawel Jarza, Natalie Pitts Note to media: If you wish to use items in this magazine that are older than one month, please contact the editorial co- ordinator to ensure that the item in question still reflects the current circumstances. Please be advised that BIFA DOES NOT OFFER LEGAL ADVICE. BIFA is not a law firm and the authors of this publication are not legally qualified and do not have any legal training. The guidance and assistance set out herein are based on BIFA’s own experience with the issues concerned and should not be in any circumstances regarded or relied upon as legal advice. It is strongly recommended that anyone considering further action based on the information contained in this publication should seek the advice of a qualified professional.
F orgive me, as I write the December edition of the DG column, if I just consider for a moment what 2024 has given us. It feels like a few of our presents have come early. Some are good and some – well not so good. During 2024 there were some big-ticket items such as a new government, which has delivered a budget with issues that our sector has to contend with, the conflicts in the Middle East and Ukraine continue and there is a new President elect in the US. Added to this, and more operational, the changes that the TSA (and others) made and are making to the way we send airfreight is making the day-to-day more challenging, a situation that will roll into 2025. From a BIFA point of view it has, by and large, been a good year. The
number of BIFA Members is increasing; interaction continues to grow with more attending our regional meetings and policy groups than in past years; our training has remained solid, and we participated in a TV programme with ITN Business to bring awareness of our work to a wider audience. The new groups we launched last year have developed well and I am sure that both the Sustainable Logistics Policy Group and the Business Leaders Forum will help lead us into the future. We have enhanced our communication. Your daily dose of industry information now comes via BIFAlinkTV which, in a few short months, has become our main communications channel, supporting BIFAlink , our email releases and bifa.org. What about 2025? 2025 will see something that BIFA has not done in nearly 20 years, with a two-day conference planned for 14-15 May in Warwick. I have recorded a BIFAlink TV episode on this and the number of enquiries from Members has been excellent. We are now working on finalising the programme and speakers under the strapline Ignite Today – Accelerate Tomorrow . The first major event of the new year will, of course, be the BIFA Freight Service Awards ceremony on 16 January at the Brewery in London. It is another sell-out event and, regardless of who wins, a great opportunity to come together and celebrate our industry. If you see me there, I am always ready to talk about the industry and BIFA. Mine’s a Coke Zero! Also in 2025, BIFA will issue a revised set of Standard Trading Conditions (STC) to reflect changes in regulatory and market practices since the last review in 2020. To have your say in the consultation process ahead of the publication of new BIFA STC, complete the form at https://bifa.org/2024/11/01/bifa-standard-trading-condition-2024-25-review/ With the actual Christmas festivities taking place in just a few weeks’ time, it only remains for me to wish you all a happy and enjoyable time, as well as a healthy and prosperous 2025.
Director General
December 2024 | 3
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Industry News
Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business. Don’t miss Ian’s weekly news round up on BIFAlink TV, which can be seen on our You Tube channel.
Container line schedule reliability slips back
logistics hub, including heavy and light industrial space as well as a range of complementary leisure uses. Network Rail says the development will serve as a crucial last mile logistics facility for the capital, helping to take up to 90,000 HGV movements per year off the national road network and reduce congestion and emissions. GB Railfreight (GBRf) has started a daily service between the port of Felixstowe and Daventry, running five times every week, making this its 17th daily service from the port and its 54th nationally. IN BUSINESS A total 72% of FTSE 100 firms list threats to their supply chains among the principal risks facing their business, according to research from INVERTO, the specialist supply chain management arm of Boston Consulting Group. This underscores just how fundamental the smooth running of supply chains is to profitability and continuity at these major corporations. TT Club, together with the London-based Container Owners Association (COA), has published a Stop Loss handbook that focuses on bulk liquid flexitanks, defines safe operations and identifies risks. It highlights good practice and provides practical risk mitigation guidance for those in the supply chain who procure, fit, pack, unpack and handle cargoes being shipped in flexitanks. ON THE QUAYSIDE DP World’s London Gateway has marked the operational launch of what it claims is the world’s first all-electric berth, with the arrival and handling of MSC Sena at the port’s newly opened fourth berth. This follows the announcement of plans to invest £1 billion in two more berths at the terminal.
ON THE OCEAN Sea-Intelligence has reported that containerline schedule reliability decreased by 1.2% month-on-month to 51.4% in September, based on data from 34 trade channels and over 60 shipping lines. The data showed that the average delay for late vessel arrivals rose by 0.21 days each month to 5.67 days. VesselsValue, a maritime data intelligence company, has reported that orders for new containerships are up by 52% year-on-year, with 254 new orders placed in 2024, compared with 167 in the corresponding period of 2023. It added that with 362 new
containerships entering the market already this year and a further 169 due to be delivered by the end of 2024, it looks set to be a record- breaking year. IN THE AIR IATA has reported that global air cargo markets experienced 9.4% growth in demand for September 2024 compared with the same month in 2023. This marks the 14th consecutive month of growth, with international operations seeing a 10.5% increase. Capacity rose by 6.4% year-on-year, with international bellyhold capacity increasing by 10.3%. This extension of double-digit
annual capacity growth has now continued for 41 consecutive months. Boeing predicts that air cargo traffic will nearly double over the next 20 years, with growth of about 4% each year. That annual growth rate is 0.1% lower than the 4.1% that Boeing had forecast in July for the same timeframe. East and South Asian markets are expected to see the highest traffic. IAG Cargo, the cargo division of International Airlines Group (IAG), has announced its new 2024-25 winter schedule, which includes increased services to key destinations across the world. OVER THE BORDER HMRC has announced that for the 2025 to 2026 financial year there will be a pause in the development of the Single Trade Window programme, which aims to provide a single UK border service that streamlines data across government and trade, due to challenging fiscal issues. This decision means that the first strategic release of STW functionality, including the user interface for Safety and Security (S&S), will not be launched publicly this year. The government will now consider the role of the STW and will provide an update as part of the next phase of the Spending Review, reporting in late spring 2025. OVERLAND The London Legacy Development Corporation has unanimously approved an outline masterplan to transform over 30 acres of brownfield land at Bow Goods Yard in East London into a major new railfreight and
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4 | December 2024
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BIFA News
National Apprenticeship Week 2025 opportunities
BIFA Liverpool Region Dinner BIFA Members in the north-west will know that for many years, the BIFA Liverpool Region Annual Dinner has supported the local children's hospice, Zoë’s Place. In mid-October, Zoë’s Place Liverpool was facing closure, having failed to raise the funds needed to build a new home for the hospice, but thanks to a huge groundswell of support from the community, Zoë’s Place has now been saved. Friday 7 March 2025 will see the BIFA Liverpool Region annual dinner take place at The Hilton, Liverpool City Centre where guests can look forward to a night of entertainment, good food and after-dinner dancing, while raising further vital funds for Zoë’s Place. There are a limited number of places still available to book – go to www.bifa.org/ events to request your tickets for this black-tie event. BIFA is grateful to GenCo Logistics, Hapag-Lloyd, Maersk Logistics & Services, Peel Ports Group and Seacon SG for sponsoring the event.
National Apprenticeship Week (NAW) will take place from 10 to 16 February 2025. It is an opportunity for businesses to celebrate the achievements of apprentices around the country, and the contribution they make to communities, businesses and the wider economy. To support this, a new website and communications toolkit has been launched which contains an array of information and useful assets that BIFA members could use and adapt – https://naw.appawards.co.uk/ toolkit The NAW website and toolkit contain support and guidance on how to get involved. This includes social media graphics, key apprenticeship messages, facts and figures, graduation toolkits, and advice so that individuals and businesses can explore the full range of benefits that services director, BIFA, said: “We encourage Members to get involved and share the good work apprentices do by promoting careers in logistics, apprenticeships offer. Carl Hobbis, member
Funding band revision for Urban Driver apprenticeship standard BIFA has learned that the funding band for Urban Driver Apprenticeships has been revised to band 11, with an upper limit of £8,000. This will be welcome news to both employers and training providers and encourage more starters for this growing apprenticeship. The apprenticeship is aimed at customer delivery drivers making multiple collections and deliveries in built up areas. This is another positive step for apprenticeships in transport and logistics and another recruitment pathway for BIFA Members to consider to help address the skills shortage across the sector. For more information about the content of the Urban Driver Apprenticeship standard see: www.instituteforapprenticeships.org/apprenticeship- standards/urban-driver-v1-1
and the apprenticeship pathway in particular as an excellent option to consider for young people wishing to start a career.”
If you would like to discuss apprenticeships and how they work, get in touch with Carl Hobbis at c.hobbis@bifa.org to set up a call.
Our quiz master extraordinaire!
In his role as chairman of UKACC (the United Kingdom Air Cargo Club), David Stroud, BIFA policy and compliance advisor (air), hosted the UKACC annual quiz in November raising in Fifteen teams took part from across the air cargo industry, with three representing BIFA. Quiz master David had prepared a range of fiendish questions on general knowledge, history, sport, science and nature, music and TV and film. The excess of £300 for the Alzheimer’s Society.
After a tense wait while the scores were checked and checked again, the team from BIFA comprising Bob, Spencer, Ramandeep and Sharon (Sampeys) were victorious. A great night was had by all, and our thanks go to David and the team of volunteers at UKACC for organising the event. To donate to the UKACC Alzheimer’s Society
challenge was on to take the title from three-time winners GEODIS Freight Forwarding UK.
fundraising page, scan the QR code.
6 | December 2024
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BIFA News
Montreal Convention liability limits amended
Effective 28 December 2024, the liability limits for passenger and cargo claims under the Montreal Convention of 1999 (MC99) will increase, as announced by the International Civil Aviation Organisation (ICAO). According to the changes, the limit for destruction, loss, damage or delay of cargo will rise from 22 SDR to 26 SDR per kilogram. The liability limits are indicated in Special Drawing Rights (SDR), a unit of account defined by the International Monetary Fund. For indicative purposes, 1SDR was valued at 25 years of service with BIFA Robert Keen, immediate past director general, and Sharon Hammond, events executive, both joined the secretariat staff in 1999 and have each recently clocked up 25 years’ service. BIFA colleagues arranged a small celebration for them and presented certificates to mark the occasion (pictured right).
GBP1.03843 on 21 November 2024. The limits are set to increase in line with the convention’s built-in review mechanism, to adjust for inflation every five years so as to ensure that passenger and cargo compensation remains appropriate over time. Next steps These updates will affect BIFA Members who will need to align their documentation and risk management processes when handling air shipments to ensure seamless compliance and account for
the increased liability limits. Freight forwarders are encouraged to: 1. Take note of the new liability limits; 2. Notify shippers and other stakeholders; 3. Review and adjust contracts to reflect these new terms; 4. Review liability insurance arrangements and consult with your insurer to ensure that your cover extends to these new limits. As informed by IATA, a six- month grace period after 28December 2024 has been given to air carriers to properly manage their AWB stock.
Glück to chair IATA FIATA consultative council BIFA extends its congratulations to Richard Glück on his unanimous election in October 2024 as the fi rst freight forwarder in memory to chair the IATA FIATA consultative council. He will be supported in this role by Stefan Amman from Lufthansa Cargo, who serves as the Cargo Agency Conference chair and will act as an advisor to Richard. The post of chair is held for two years. Both IATA and FIATA were delighted that the meeting proceeded smoothly, and that the decision was reached by full consensus, reflecting the commitment of both parties to a collaborative and constructive approach. Together, they are poised to make the vision of the Global Air Cargo Programme a reality.
The Limits of Liability for Carriers
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By air – Warsaw Convention (17 SDR): £17.65 per kg
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By road – CMR (8.33 SDR): £8.65 per kg
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By air – Montreal Convention (22 SDR): £22.85 per kg
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December 2024 | 7
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Policy & Compliance
Entry Summary Declarations – another last minute delay
Delayed implementation of Entry Summary Declarations is likely to add more pressure on UK-based freight forwarders and Customs agents, and encourage increasing non-compliance
B IFA has been writing about the Safety and Security regime for goods imported from the EU for at least six months, but when we thought we were almost there (31October 2024) we were told there would be another delay. Is it the final one? At the time of writing this article we cannot provide a convincing answer, but we already know a little more about the technical side of lodging entry summary declarations (ENS). Following the budget announcement on 30 October 2024, it became clear that one of the government IT developments, the Single Trade Window (STW), was going to be temporarily paused. Under other circumstances this would only attract a brief mention as most of the functionalities it was supposed to deliver had never been clearly identified, but this time it requires more attention. Important functionality The reason for this is the fact that it was supposed to deliver a functionality important in the context of safety and security declarations. The STW was going to provide a web level access to the Safety and Security GB (S&S GB) system that would allow filers without specialised software or an API connection to lodge safety and security declarations in the S&S GB. That is not now going to be the case, which effectively means that anyone who would like to lodge an ENS may need to speak to their software provider about alternatives. As a consequence, BIFA believes that this may add more pressure on UK-based freight forwarders and
Customs agents as those carriers (mostly road hauliers) who were considering lodging their own declarations using the online service would need to find an alternative. This may also lead to more widespread non-compliance as some may simply ignore the requirement. Although not specifically IT- related, it is also important to mention that it will not be possible to lodge multiple consignments under one ENS, despite previous assurances by HMRC that this would be the case. This time the reason is legal, as the data model used for safety and security purposes is based on the EU legislation which requires specific data elements to be provided on header level, thus potentially preventing multiple consignments being lodged under one ENS if header and item level data differ.
BIFA believes that this approach lacks pragmatism and has called on HMRC to review the practical application of certain pieces of the assimilated legislation. BIFA also believes that this may further exacerbate non-compliant behaviour patterns as many traders will not declare all data required by the data model. BIFA concerns Adding in the facts that it will not be mandatory to include ENS reference in GVMS and a generally low level of awareness amongst hauliers, BIFA is concerned about how this system will operate and whether it will deliver the desired effects. BIFA will work with Members, authorities and partners in the EU to address the concerns raised in this article and will update members as appropriate.
“ BIFA is concerned about how this system will operate and whether it will deliver the desired effects
8 | December 2024
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Wishing you all a very merry Christmas and a prosperous new year
From everyone at ASM
Policy & Compliance
Has the golden age of trade come to an end? BIFA’s member policy & compliance director looks at issues affecting the maritime sector today and into the new year “ One of the biggest
As BIFA has warned many times, this will contribute to increasing shipping costs, which depending on the statistics used are anything up to 80% higher than in 2019. Continuing geopolitical instability remains a significant concern for 2025. The unresolved tensions in regions like the Red Sea and Persian Gulf could impact shipping operations well into the future. When announcing its services for 2025, MSC did indicate that at least some services would revert to using that route. However, given the increasing strength of the Houthis, most observers do not expect a resumption to full-scale operations until at least 2026, keeping carriers reliant on alternate routes around the Cape of Good Hope. This has become the ‘new normal’, adding perspective, this longer route restricts available shipping capacity, which keeps the pressure on rates. When researching this article, the writer discovered that this is not the first time that the Suez Canal has been subject to significant disruption. After the 1967 Six Day War, it was closed for eight years by the Egyptians – unlike the current situation where the canal to transit times, costs and emissions. From a wider
2 024 has been a troubled year for the deepsea container market, although many analysts believed that shipping lines would have suffered a poorer 2024 than has been the outcome. The Red Sea crisis, by forcing the re-routing of vessels via the lengthier Cape of Good Hope route, has saved shipping lines from having to deal with issues surrounding over-capacity as new vessels ordered during the pandemic were delivered during the year. Despite an increase in fleet capacity with newbuilds entering service, it is anticipated that further market disruptions could occur, offsetting the factors that could lead to a decrease in freight rates. The possibility of more US East Coast port strikes creates uncertainty; for instance Drewry has created scenarios both with
and without a strike in January. In both cases, it found that freight rates would continue to rise. Port strikes “will have significant inflationary impact on spot rates, not just on the US”. It has to be remembered that shipping acts on a global basis and impacts in one area will have knock-on effects in others, as vessels are redeployed and sailing schedules amended. Environmental legislation One of the biggest influences of recent years is the phasing-in of additional environmental legislation. As this is done piecemeal by jurisdiction, it adds complexity. The EU Emissions Trading Scheme (ETS) is being extended in 2025 when 70% of verified emissions will need to be covered by ETS allowances (up from 40%).
in fl uences of recent years is the phasing-in of additional environ - mental legislation. As this is done piecemeal by jurisdiction, it adds complexity
10 | December 2024
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Policy & Compliance
remains open but risk, commercial and insurance considerations are factors leading to many shipping lines not using the route. In addition, significant problems with port congestion in Europe are anticipated when container lines decide to route their vessels through the Suez Canal. The danger is that those transiting via the Suez Canal would catch up with those using the Cape and arrive at the same time in Europe. Growing tensions One other geographical area that is not attracting the attention it should in Europe is the growing tension in the South China Seas, as highlighted by the Institute of Chartered Shipbrokers during the October BIFA Business Leaders Forum, which could significantly disrupt trade flows in the region. The planned realignment of shipping alliances in 2025 is expected to cause some issues with teething problems almost inevitable as new partners get used to one another. In particular, the spotlight will be on the Gemini
Alliance of Maersk and Hapag Lloyd. This Alliance is relying on a ‘hub and spoke’ model. Recent events have highlighted that in disrupted markets this approach can cause particular problems, as recently reported, for example, at Barcelona and Singapore. Vessels were diverted to these destinations to unload cargo for transhipment by feeder vessel to a final destination, rather than the original vessel sailing to the correct destination. As congestion built up at the two aforementioned ports, delays and missed connections ensued. All these factors and more, including attacks by the Russians in the Black Sea on vessels carrying grain exports from Ukraine, increase uncertainty and will contribute to elevated freight rates. Currently, shipping lines are reporting significant profits, particularly for Q3 of 2024, but these are expected to decline in Q4. Spot rates have declined in recent months, although this trend was reversed in late October and early November 2024. These rate fluctuations will have an impact on
the contract rates being negotiated for 2025. There are potential Customs tariff changes being proposed, particularly in the US and EU, with both considering increased duties on Chinese goods, particularly electric vehicles, which may prompt shippers to bring forward export shipments. The US President elect is proposing a wide range of tariffs on US imports regardless of origin. However, the longer-term impacts are not as clear but could reduce the movement of goods and hence the demand for capacity. All of this leads to the question: what will 2025 bring for the maritime industry? The answer is that we do not know. However, there are factors outside the sector’s control which, depending on their outcome, could prove to be beneficial or not for trade and the maritime sector. After many years of stability, the maritime industry as a whole is having to adjust to a global situation where instability is prevalent and the unanswered question remains – ‘Has the golden age of trade come to an end?’
“ After many years of stability, the maritime industry as a whole is having to adjust to a global situation where instability is prevalent
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December 2024 | 11
BIFA History
Paving the way for BIFA: The Institute of Freight Forwarders Robert Keen , immediate past director general of BIFA, delves into the archives to report on a signi fi cant milestone in the evolution of BIFA and the individuals who steered events
D ecember 2024 sees the 80th anniversary of the formal incorporation of the Institute of Shipping and Forwarding Agents (ISFA) which, in 1970 became the Institute of Freight Forwarders (IFF), from where BIFA emerged in the late 1980s. At BIFA, there are many Institute publications and items of memorabilia that have assisted me in researching the history of the past 80 years. Representative trade bodies have existed for centuries with guilds, livery companies, trade unions, etc, and whilst it is likely that freight forwarders’ organisations existed earlier, there are no formal records prior to 1897 when the London Shipping and Forwarding Agents Conference was constituted as a body to represent freight forwarders. During 1943, a process began to form a professional body from the port forwarder communities of Liverpool, London, Manchester, Southampton, Bristol, Glasgow and
“ A key goal of the new Institute was to raise the status of shipping and forwarding agents and their staff
Hull. The Institute of Shipping & Forwarding Agents (ISFA) was formally registered on 19 December 1944 to act as a body representing the general interests of all agents throughout the UK. Great foresight From the early days, the Institute showed great foresight in identifying a need for standard terms and conditions that would protect the shipping and forwarding agent. The establishment, maintenance and continuing development of the BIFA Standard Trading Conditions is a fundamental reason for the success of the Institute and its successor BIFA. Another key goal of the new Institute was to raise the status of shipping and forwarding agents and their staff. An early initiative was licensing, but unlike professions
12 | December 2024
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BIFA History
“ From the early days, the Institute showed great foresight in identifying a need for standard terms and conditions that would protect the shipping and forwarding agent
Brian Kelleher: FIATA president 1995-1997
Derek Heys: FIATA president 1967-1971
such as solicitors or doctors, there was no measurement or certification in place so a professional qualification was devised. The course took three years to complete, with the first year being shared with The Institute of Exports. During my time as BIFA director general, I met or spoke to many past members of the Institute who had each made great contributions to our industry and deserve to be remembered. For reasons of space, I am detailing just two memories in this article to illustrate some of what the Institute achieved and to reflect on past working practices. Individual contributions Brian Kelleher (National Chairman 1982/3) joined LEP as a management trainee upon leaving the Army in 1955. It was expected as part of his progression that he would study for the Institute qualification as a vital stepping stone. Brian attended evening classes at the City of London College near Moorgate from 6.30 pm to 8.30 pm twice a week. The following eight subjects were studied: geography; commerce; law of contract; finance in international trade; sale of goods act; insurance; port transport; and Customs procedures. There were different lecturers for each discipline, with intermediate examinations held after two years and finals after three years. Brian was incentivised by a salary increase. He was earning £10/10 shillings (in 2024 equal to £10.50) and he received £1 extra a week for passing. Brian won the national prizes for both forwarding and airfreight. After a long career in forwarding, including holding the post of chairman of the IFF from 1982-1983, Brian was elected president of the global freight forwarders’ body, FIATA, from 1995-1997. There have been only two forwarders from the UK that achieved the career pinnacle of being FIATA president, the first being Derek Heys from 1967-1971. Derek was a stalwart of the Liverpool branch of the IFF and was national chairman in 1962. The featured photographs of Derek and Brian are copies of those displayed among all past FIATA presidents at the FIATA HQ in Geneva. When Brian joined the industry, airfreight was in its infancy and most forwarding activity in London was
based around the Pool of London. During his career the industry dispersed, with the London International Freight Terminal (LIFT) in Stratford and the expansion of the docks at Tilbury hastening the end of the London docks. The memories of David Ashford also reflect the way forwarding operated in the 1950s. After leaving grammar school in 1956, David joined Lambert Brothers in Cunard House, Leadenhall St, EC3, as a junior clerk. He became the ‘City Boy’, collecting and delivering various documents throughout the City. A regular call was to the Chamber of Commerce, then situated in Cannon Street. Promotion gave him a new role as the ‘West End Boy’. This entailed delivering consular documents to the various embassies which were sited mainly in the West End of London. He went twice a day to the Port of London Authority (PLA) in Trinity Square to pay ‘port rates’. From there to the Customs House Long Room in Billingsgate to lodge other documents and finally to The Entry Branch in Adelaide House on London Bridge, in order to lodge port entries and pay duty and tax. In between he would board a number 43 bus in Moorgate, with a collection of paperwork and entries for processing by HMC&E postal imports based at the Royal Agricultural Hall, Upper St London N1. In 1965, David successfully obtained a position as shipping clerk with an international road haulier who had just opened an office in the little-known port of Felixstowe, then known as Felixstowe Dock. The office was in an old seaplane hangar at the dock gate. It served the new roll- on/roll-off ferry service to Antwerp and Rotterdam operated by Transport Ferry Services, who were pioneers at the very start of the expansion of the port of Felixstowe. David founded one of the first independent forwarding agents in Felixstowe, Felixstowe International Shipping Ltd. It is impossible to detail the full history of the Institute, and those who built it, in a short magazine article. Certainly, there are many names that need to be remembered for their contributions. Memories and contributions If any members have information and memories of past stalwarts of BIFA and its forerunners, please get in touch with Robert Keen (r.keen@bifa.org).
December 2024 | 13
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Policy & Compliance
NCTS 5 - What is changing from 2025?
A number of changes in NCTS 5 will affect the Transit Accompanying Document, presentation of Movement Reference Numbers and the ability to amend a pre-lodged declaration, as explained here by Pawel Jarza , frontier policy manager
A s we approach a new year, the Customs landscape is set to undergo another signi fi cant transformation with the implementation of the fi nal state rules for NCTS 5, commencing 22January 2025. This transition, while promising enhanced efficiency and operational improvements, is not without challenges. The upcoming changes will require traders to adapt to new transit declaration completion requirements and processes, ensuring compliance with the updated regulations. One of the most notable changes is the removal of the mandatory requirement for a paper Transit Accompanying Document (TAD). Paper TADs will no longer be printed by Border Force as standard. Printed copies Instead, drivers will need to request a copy be printed, if required. By default, only the first page will be printed. If a full document is required, it must be specifically requested. Authorised consignors will be able to continue printing the papers at their premises. In addition to this, the electronic presentation of Movement Reference Numbers (MRNs) for inbound movements will be introduced. All TAD MRNs will need to be declared in the Goods Vehicle Movement Service (GVMS) for import movements. This change is expected to enhance the accuracy and speed of transit procedures. Another significant update involves commodity codes. The declaration of commodity codes will become mandatory, with six-digit
consignments cannot exceed the 1999-line items limit. NCTS 6 Looking ahead, NCTS 6 is planned to be implemented on 1 September 2025. Phase 6 will introduce some changes to the Office of Transit process, without affecting the border processes, and some minor changes to message structures. However, the long-waited Transit Security Accompanying Document (TSAD) declaration will not be one of the changes as the UK decided to opt out from its implementation at this stage, although HMRC reserves the right to opt-in at a future date. Members should prepare for these changes, ensuring that they are ready to adapt and comply with the new requirements. The journey ahead may be complex, but the destination promises a more robust and effective Customs framework in the long term. To view the latest Transit newsletters issued by HMRC, visit https://www.gov.uk/government/p ublications/community-common- transit-and-tir-newsletters
codes required for Great Britain and six- but no more than eight-digit codes for Northern Ireland. The functionality to amend pre- lodged declarations will also go live. This will allow for more flexibility in making necessary changes to pre- lodged entries before the goods depart. Traders will be able to pre- lodge a declaration up to 30 days before leaving the country and amend the entry anytime within that time frame. To maintain the integrity and security of transit movements, the introduction of the Office of Incident will go live to record any incidents encountered en-route by reporting to a designated Customs office. These rules will affect how incidents during transit are reported and managed, ensuring that the details of any issues are promptly recorded by a Customs officer directly into NCTS 5. Multiple house consignments Lastly, the handling of multiple house consignments will be updated too. Declarants will be able to declare up to 1999 house consignments; however, one house consignment can have only up to 999-line items. In total, all house
“ The journey ahead may be complex, but the destination promises a more robust and effective Customs framework in the long term
14 | December 2024
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Policy & Compliance
One Member has been approached by fruit fraudsters for the second consecutive year. What are the warning signs you should look out for? Short- fi rm fraud warning – the great mango scam
disappeared, leaving the freight forwarder out of pocket. In late 2023 the commodity was mangoes, and the shipments originated from Dubai and the Indian sub-continent. We have recently been contacted by a Member who was a victim of the 2023 scam – luckily, they had a long memory. The company received an enquiry regarding the importation of fresh fruit, including mangoes, this time from Bangladesh. Due diligence Its due diligence revealed a UK Midlands-based company with very few assets, a ‘no credit’ financial rating and a Belgian director. The level of business proposed appeared to be out of proportion to its ability to finance it and a check on Google Maps indicated that the company address is actually a Regus office. The Member who reported the matter to us provided additional useful information regarding similarities between the business offered by the Preston-based
T he added pressure of the Christmas season gives commit certain scams and activities, and our sector is the victim of too many such crimes. As BIFA has warned over the past criminals more opportunity to year, this takes many forms, although usually theft from vehicles and fraud. The majority of businesses operate legally but there is a minority that do not, and in some cases these are actually established as a front for criminal activities. About this time last year, we highlighted the case of a Preston-based importer, with
Belgian connections, which accumulated large bills in a relatively short time with BIFA Members and then simply
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16 | December 2024
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Policy & Compliance
“ I have seen three short fi rm frauds in this industry [freight forwarding] in the last month and one of them involved mangoes from Pakistan/ Bangladesh. It is rife and innocent suppliers ought to be warned again – Fraud expert
• No record of them ever importing or exporting previously on the HMRC Traders’ website. • They have had directors leave and a new director confirmed. The new director is listed by credit checking agencies as of Belgian origin. ‘Due diligence’ checks As we have said earlier, most businesses are legitimate, but as this case highlights, by having good ‘due diligence’ checks in place the Member believes that it has avoided being the victim of a scam for the second time. BIFA discussed this matter with a contact specialising in industry- related fraud who commented: “I have seen three short firm frauds in this industry [freight forwarding] in the last month and one of them involved mangoes from Pakistan/Bangladesh. It is rife and innocent suppliers ought to be warned again.” This crime is very easy to commit; the only failsafe is to insist on seeing the latest edition of the trader’s accounts.
business in late 2023 and what is being offered now: • They only want us to handle the airfreight. No collection at destination and Customs clearance or delivery at destination. • Both request quotes to various
locations not just the UK. • Contact came to us without previous connections. • Large volumes of cargo. • Accepted our quote with no questions. • Both importing fruits, especially mangoes
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December 2024 | 17
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Policy & Compliance
The Economic Crime and Corporate Transparency Act 2023: An update
Companies House has provided a timeline for changes that will result in more reliable and accurate information on which to base key decisions
T he Economic Crime and into law on 26 October 2023. The Act results in substantive changes to Companies House (CH) that will affect BIFA Members. On 16 October 2024, BIFA attended the event 'Changes to UK Company Law’ held by CH to update stakeholders on its current and future changes. CH reported that it is undergoing its most significant change since 1884. Historically, CH has had limited ability to verify or challenge Corporate Transparency Act 2023 (The Act) was passed the information provided to the register; it also had very limited enforcement powers, with most cases requiring a court order, which is both time-consuming and expensive. This led to UK residents, without their consent or knowledge, having tens of thousands of companies using their residential address as a company address. These cases indicate a high incidence of economic crime, negatively affecting the wider economy. Widened remit The Act has widened CH’s remit to become an “active gatekeeper over company creation and custodian of more reliable data concerning companies”. This means that CH can now query, challenge and remove incorrect or false information without needing a court order. CH has also been provided with data- sharing powers so that it can work with public and private sector bodies to prevent economic crime. Since the implementation of the Act, CH has already removed false information relating to 72,000 UK companies and its intelligence
team has provided over 300 detailed reports to law enforcement agencies.
verification transition and compliance activity by CH will commence. CH will provide further details on how to verify an individual’s identity by spring 2025. However, standard documents, such as passports or driving licences, will likely be accepted. We advise BIFA Members to comply with the identity verification requirements in good time to avoid non-compliance, which can result in financial penalties. Wide bene fi ts BIFA welcomes the efforts made by CH since the Act's implementation and we are hopeful that the continued work by CH will be beneficial to our Members and the wider UK economy. For instance, Members will benefit from having more reliable and accurate information on which to base key decisions as to whether a trader is ‘established’ in the UK or not. BIFA will keep Members up to date on any changes to CH’s provisional timeline.
The efforts of CH are of interest to BIFA Members because they have long struggled to trust the information stored by CH; this has made tasks such as undertaking due diligence on customers and suppliers more difficult. We are hopeful that the cleaning up and safeguarding of the information will enable our Members to have greater faith in the register’s integrity. CH provided stakeholders with the timeline for further changes, which is available at GOV.UK (see QR code). Members should note that CH is now implementing one of the changes with the Act, being the requirement for directors and people with significant control to verify their identity. This will be a phased approach and the (provisional) dates are as follows: • Spring 2025 – Individuals can voluntarily verify their identity. • Autumn 2025 – All existing directors and people with significant control must verify their identity within 12 months, and all new directors and people with significant control must verify their identity at the time of registration. • Spring 2026 – Anyone filing information with CH must verify their identity. • Autumn 2026 – End of identity
“ The Act has widened CH’s remit to become an “active gatekeeper over company creation and custodian of more reliable data concerning companies”
If you have any questions regarding the changes to CH, please contact the Policy and Compliance team (j.mckean@bifa.org and r.windsor@bifa.org).
Economic Crime and Corporate Transparency Act: outline transition plan for Companies House - GOV.UK
18 | December 2024
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Member Engagement
BIFA regional member meetings
Northern Ireland Regional representative Shauneen McConville was joined by 30+ Members at a lively meeting in Belfast during October where representatives from HMRC presented the latest updates on the Windsor framework. The duty reclaim service was explained and Members were advised that claims could be made for shipments dating back to 2021 with the necessary evidence. The Internal Market Movement Information (IMMI) service was discussed as well as the reduced dataset that will be required, details of which will be made available soon. For the Trader Goods Profile service, it was confirmed that the agent would need to be given access by the trader. HMRC is also working to use previous declaration data to pre-populate the database to help traders. There are two dedicated email addresses for NI related communication: • enquirieswindsorframework@ hmrc.gov.uk • nistakeholderengagementteam @hmrc.gov.uk Border Force representatives explained how the various governmental departments overlap and their specific areas of responsibility. The huge changes and additional tasks post-Brexit, including issues around CITES, transit and carnets, were discussed with Members welcoming the clarification. Steve Parker, BIFA director general, brought all up to speed with current BIFA activities and Igor Popovics, BIFA policy advisor Customs, updated Members on other Customs-related issues. BIFA personnel were out connecting with Members in Northern Ireland and the Midlands during October
Midlands October saw the last two Member meetings in the Midlands region for 2024, which took place in East Midlands and Coventry. Both meetings welcomed Lindsey Shantall of RailX as guest speaker promoting the use of rail as a viable and environmentally friendly way to move shipping containers into and out of the region. Members received the latest policy group updates from Regional Representative Andrew Melton, along with information of forthcoming BIFA events.
Top: The BIFA Regional meeting in Northern Ireland Above: BIFA Members attend the Midlands (South) meeting in Coventry
Staying in touch with freight issues BIFA regional member meetings are a great way to stay up to date with both regional and national issues. They provide the opportunity for discussion with subject-matter experts and for networking with industry peers. All BIFA Members are welcome at meetings – see www.bifa.org/events for full details of events near you.
20 | December 2024
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