BIFAlink October 2022.web

BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.

October 2022 The magazine of the British International Freight Association BIFA link Issue: 386 Liner Shipping Consortia Block

Exemption Regulation: What next?

– Pages 12-13


6: News Freight forwarding included in new apprentice initiative 10: Policy & Compliance The organisation of cargo crime

16: BIFA Awards JCS Livestock, winner of the Cool & Special Cargoes Award 20: Policy & Compliance Make the most of EU procedures to minimise the impact of Brexit

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Robert Keen’s Column


Helping government develop policy

BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266

September provided further evidence of the important role that BIFA Members can sometimes play in helping government departments to develop public policy. HM Revenue & Customs (HMRC) approached BIFA’s policy team in early September asking how the trade association could help obtain feedback from its Members on their current experiences of using the Arrived Exports process within GVMS. Since the UK left the EU, full Customs controls were re-introduced on 1 January 2022, and two export processes are now in operation: Standard Export and Arrived Export. The Standard Export process involves most of the Customs formalities, such as checks on the Customs declaration and physical checks of the goods to take place after the goods arrive at the border location and are within the control of His Majesty’s

Web site: E-mail:

(A company limited by guarantee. Registered in England: 391973. VAT Registration: 216476363) Director General Robert Keen Executive Director Robert Windsor, Policy & Compliance – Surface & Legal

Government. However, for the Arrived Export process these formalities are carried out inland away from (and before the goods have travelled to) the port. When the Arrived Exports Model was first introduced, HMRC informed the industry of its plans to review the process at a later date, which is now being carried out, so that HMRC can focus on how the arrived exports process has operated over the last seven months, how it can be improved and how it will operate in the future. The response from Members to the online survey that the secretariat set up has been very good and I would like to thank all who submitted their comments. This is not the first time this year that the opinions of BIFA Members have been canvassed via the trade association. Earlier this year BIFA surveyed its Members on the thorny issues relating to the problems they have faced over the last several years in the maritime container shipping market. All respondents to BIFA’s survey were united in their opinion that there is a need to improve the regulatory monitoring of shipping line activities, in particular where they acted not only as carrier but also as logistics provider. Many of the responses to that survey helped BIFA to formulate its approaches to the Competition and Markets Authority (CMA) to raise Members’ concerns, as it reviews the retained Liner Shipping Consortia Block Exemption Regulation in order to inform its recommendation to Government on whether to keep it, replace it or drop it. The intricacies of the Liner Shipping Consortia Block Exemption Regulation are examined in the feature article on pages 12 to 13 of this issue and is well worth a read. BIFA will be very interested in seeing the outcome of the CMA review, and what it recommends the Government should do when the regulation expires in 2024. Once again, the Secretariat is ready to work with BIFA Members to make sure that their views are represented on issues such as rate fluctuations, service reliability, and whether there were (and still are) cases where independent freight forwarders believed themselves disadvantaged compared with a carrier’s ‘in-house’ forwarder. During the incredibly drawn out process of switching from CHIEF to CDS, I have sometimes been asked “what is BIFA doing about it?” I have often thought that it is an unfair implied criticism of the BIFA Customs Policy Group which, by raising constant questions, has put the necessary pressure on HMRC, leading to changes in the implementation timetable, as well as what is being implemented, that has helped BIFA Members. Having made further representations via the programme board seeking clarifications on behalf of our Members, we were pleased to hear HMRC announce its intention to allow CHIEF badge holders to apply for a discretionary extension to use CHIEF, which will give all concerned a further short grace period to finalise their transition and for software developers to complete their system development. However, we cautioned that the important thing to remember is that that this discretionary period is short and designed to facilitate those traders who are close to, but have not fully migrated to CDS. So anyone with their head in the sand over transition from CHIEF to CDS really needs to act fast. As you read this column, hopefully the work done by BIFA and its Members, to ensure that all parties connected with providing information and submitting Customs declarations via the Customs Declaration Service from 1 October, is achieving its goals. You can read the HMRC announcement as well as BIFA’s response on our website. Lastly, I was pleased to secure the services of Kevin Keegan to be our host at the BIFA Awards Lunch in January next year. Many of you may have seen Kevin at the 2021 MultiModal awards when he gave an entertaining talk until the fire alarm interrupted him. The talk will be different in 2023 for BIFA and I hope that many of you will be there as awards finalists to see him. Executive Director Spencer Stevenson Executive Director Carl Hobbis Policy & Compliance Advisor – Customs Igor Popovics Policy & Compliance Advisor – Air David Stroud Editorial Co-ordinator Sharon Hammond Communications Manager Natalie Pitts Membership Supervisor Sarah Milton

Published by Park Lane Publishing Contributors

Robert Keen, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Natalie Pitts, Igor Popovics Note to media: If you wish to use items in this magazine that are older than one month, please contact the editor 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.

Robert Keen Director General

October 2022



News Desk

most tonnage in 2021 (more than 5 million tonnes), beating last year’s top-ranking Memphis International Airport, which was positioned second. How to decarbonise heavy duty trucks Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business

ON THE OCEAN Ocean carriers will withdraw around 8.8% of capacity on the Asia- Europe route over the next few months, The Loadstar reported in September. CMA CGM is to blank five sailings in the period surrounding China’s Golden Week, removing close to 100,000 teu from the Asia to Europe trades. The 2M Alliance will pull 10% of its capacity on the trade between now and the Chinese holiday, blanking seven sailings, while THE Alliance will pull 18%, blanking 10 sailings. The Drewry Global Container Port Throughput Index reports an overall increase in global container trade of 2% between May 2021 and May 2022, driven by China (4.9%) and North America (5.6%). It blames the war in Ukraine, for holding back Europe, which saw a decline of 4.3%. IN BUSINESS Prime Minister Liz Truss has named former trade secretary Anne-Marie Trevelyan MP as the government’s new transport secretary. MP for the Berwick-upon-Tweed constituency since 2015, Trevelyan also ran the international development department until it was folded into the Foreign, Commonwealth and Development Office. IN THE WAREHOUSE An independent research report produced by specialist consultancy Delta Energy & Environment has highlighted huge potential benefits for the UK, and for the warehousing and logistics sector, of installing solar photovoltaic (PV) systems on the nation’s warehouse rooftops. It suggests that with a third of all

OVERLAND The International Transport Forum has published a report investigating the feasibility of decarbonising heavy-duty trucks in Europe with zero-emission powertrain technologies, including how cost uncertainty of these vehicles can be minimised. It gives six recommendations to accelerate the transition to zero-emission trucks, including the provision of necessary infrastructure. In response to the ongoing crisis in European energy markets, which has a significant impact on all sectors, the European railway sector has called on the European

Commission and member states to develop a strategy to protect the EU’s modal shift objectives and to ensure uninterrupted affordable energy supply for rail transportation.

during August 2022 – a 1% increase on the year before. Since the beginning of the year it has seen almost 1 million trucks take its Short Straits crossing. IN THE AIR Global air cargo demand, measured in cargo tonne kilometres (CTK), fell 9.7% overall in July 2022 compared with July 2021, according to IATA statistics. It fell 10.2% for international operations, with demand standing at minus 3.5% compared with July 2019, while overall capacity was 3.6% above July 2021 (up 6.8% for international operations) but still 7.8% below July 2019 levels. According to CLIVE Data Services, part of Xeneta, August offered a glimmer of hope for the global air cargo market as the decline in demand of the previous four months slowed and general air cargo rates between Europe and North America stabilised. General air freight spot rates averaged US$3.61 per kg in August, the lowest since September last year, benefiting from the cut in jet fuel prices from the historical peak in June. Hong Kong International Airport has been recognised for its cargo proficiency and been named the world’s busiest cargo airport. According to the Airports Council International (ACI), it carried the

Eurotunnel Le Shuttle Freight transported almost 107,000 trucks

commercial roof space, the warehousing sector has the

potential to double the UK’s solar PV capacity, delivering up to 15 GW of new solar power.


October 2022




News Desk

RHA pursues collective claim on overcharging BIFA has previously notified Members about a legal case where European truck manufacturers were found guilty of operating a cartel, a serious abuse of EU competition rules. The Road Haulage Association (RHA) is bringing a collective claim for compensation on behalf of operators (both members and non-members alike) before the Competition Appeal Tribunal. This is because it believes that they paid too much for the vehicles they purchased or leased during the cartel and for a period afterwards. Claimants do not need to be traditional haulage, transport or logistics businesses and below is a summary of those businesses that are eligible to join the claim. Who can be part of the RHA’s claim? Any business, regardless of its size, engaged in road haulage operations for (a) hire and reward or (b) own-account business can be part of the claim if it entered into a contract for the purchase or lease of: • A new truck between 17 January 1997 and 31 January 2014, where the truck weighed 6 tonnes or over and was registered in the UK; • A used truck between 17 January 1997 and 31 January 2015 where the truck weighed 6 tonnes or over and was registered in the UK. Businesses (including sole traders and partnerships) that meet the above criteria are entitled to join the collective action.

Freight forwarding included in new apprentice initiative

The Department for Education (DfE), in partnership with the Institute for Apprenticeships and Technical Education (IfATE), has launched a new initiative to raise awareness of apprenticeship opportunities. The Career Starter Apprenticeships campaign aims to promote existing apprenticeships and encourage more young people to consider this route when making their career choices. Research conducted by the DfE indicates that many young people do not consider the full range of apprenticeships that are available. By promoting certain standards as being particularly suitable for those with little or no work experience, this initiative aims to raise awareness of the opportunities created through apprenticeships to parents, teachers and employers too. The first Career Starter Apprenticeship material has now been published and the International Freight Forwarding standard has

been selected as one of the apprenticeships that will be

promoted as part of the campaign. As one of the stakeholders involved in the creation of this standard, BIFA feels this is another step forward in attracting more talent to our industry. The information being shared contains case studies, details about day-to-day activities, salaries, durations and context for each of these occupations. Three long-

standing members of BIFA’s Young Forwarder Network community have been featured, all of whom entered the industry as apprentices and have already progressed their careers. The DfE continues to promote Career Starter Apprenticeships to young people in schools and colleges across the country through its Apprenticeships Support and

Knowledge (ASK) programme. The DfE is also collaborating with the Department for Work and Pensions

and Jobcentre Plus advisers to promote freight forwarding, where there are vacancies.

QR code: The Freight Forwarding Specialist Apprenticeship standard

Turkey or Türkiye? Does the name change affect you?

BIFA has received several enquiries over the last few weeks regarding the impact of Turkey’s name change from its anglicised version to the Turkish version Türkiye. International organisations like the United Nations, the World Trade Organization and NATO have already adopted Türkiye following a formal request from the Turkish authorities. BIFA contacted HMRC on this

matter, which had to liaise with other government departments potentially impacted by the name change. We have established, and been asked by HMRC, to advise our Members that government will continue to refer to ‘Turkey’ in its guidance and other public materials. Therefore, there is no intention to amend, or expectation for industry to amend, certificates of origin,

carnets or invoices. In most cases, it is expected that invoices and other commercial documents will use a two-character country code anyway, which would reflect either name reference; in Turkey’s (or should it be Türkiye’s) case this would be the identifier, ‘TR’. If this information changes, we will update Members.

For more information contact the RHA at: 01733261131 or email address


October 2022

News Desk


Young Forwarder Network event round-up

Two Young Forwarder Network (YFN) events took place in August, one face-to-face and one virtual, with another virtual event taking place in early September. Face-to-face in Manchester The second YFN NW event of 2022 was held at the Nest, Manchester, in August and was another success. Around 20 individuals attended the event and everyone, both attendees and organisers, said how much they enjoyed it. For some it was their first time, having been prevented from joining live events during the COVID-19 pandemic. All were welcomed by BIFA staff and YFN committee members Joel, Jacob, Lydia and Georgia. Carl Hobbis, executive director at BIFA, gave an update on what is happening with the virtual YFN and in other areas of the country. The highlight of the afternoon was a brilliant, inspirational talk by Adam Williams of Maltacourt about the highs and lows in his career so far, encouraging the YFN members present to develop their own careers and invest in themselves. Lots of great questions followed and Adam generously shared his time and ideas with the YFN. After the event itself, a lovely buffet and networking opportunity was available, allowing attendees to meet others and share experiences.

indicated that their companies were already offering railfreight as a transport option to customers. A lively Q&A session at the end of the event confirmed that there is great interest in developing railfreight services further to a wide range of customers. YFN – BIFA Awards In early September the BIFA Awards were the subject of a virtual YFN, with attendees being encouraged to consider both the company categories and the two categories for individuals. The 2021 winners of the Apprentice of the Year and Young Freight Forwarder of the Year Awards are none other than the current YFN chair, Herbie Cobby, and the immediate past chair, Laura Hobby. Following a presentation on the BIFA Awards by Sharon Hammond, events and communications executive at BIFA, both Herbie and Laura shared their personal experience of the awards entry process, their reasons for entering and the benefits they have enjoyed since as a result of the publicity. Future events See for details of future events. All apprentices and new staff of BIFA members are welcome to join the Young Forwarder Network and attend events. To be added to the YFN mailing list, email

YFN Northwest committee members with guest speaker Adam Williams (centre)

YFN – Railfreight options Towards the end of August there was one of the highest ever turnouts for the virtual YFN event presented by well-known railfreight consultant and guru David Cross. David has spent over 30-years

working in railfreight and spoke with passion about the developments in, and uses of, this mode of transport, particularly in the drive to net-zero and reducing the number of HGVs on our road network. Of those present, around 50%

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By road – CMR (8.33 SDR): £9.43 per kg

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October 2022



Young Forwarder Network

Young Forwarder Network gets even more organised

To keep the Young Forwarder Network (YFN) fresh and relevant, we have created a more consistent structure to the regional and virtual YFN groups with the appointment of six chairs. Carl Hobbis, executive director at BIFA, who has management responsibility for the trade association’s training and development services, said: “In the spring, we held an event in each region attracting an average of 20 attendees. Going forward we are determined to grow these events. “You cannot put a value on benefits gained by young people through the networking side of the in-person events, and this is the distinct advantage the face-to-face YFN has over the virtual format. “By having the groups more organised we will not only have fresh ideas every 12 months, but it also gives young people a taste of leadership and the opportunity to develop other skills associated with organising events. To allow the YFN more autonomy and to facilitate personal progression, each YFN group will also appoint a vice-chair at a suitable time. Six regional chairs have been appointed to continue the development of the Young Forwarder Network. BIFAlink introduces them here

Bobbie Costin

Brooke Jennings

Nathan Ainsworth

Lexi Laybourn

Georgia Gibson

Herbie Cobby

Earlier this year she spoke in front of over 200 year-10 students at the Felixstowe School and, in the summer, attended a careers fair there. She works within a commercial role and has been in logistics since 2017.

region. She is looking forward to bringing energy, commitment and enthusiasm to the region and working with the other committee members. She has a First-Class Honours Degree in Business with Supply Chain Management. Virtual YFN Herbie Cobby, GEODIS Current apprentice of the year, Herbie’s appointment was featured in the September issue of BIFAlink . He is looking forward to chairing the virtual YFN events and hopes one day to be involved in the formation of a Yorkshire/Humberside region to meet like- minded people who are enthusiastic about the industry. The above individuals give their time freely for the benefit of the YFN and are supported by local committees. Encourage your team members to attend YFN events to broaden their knowledge and, when they feel ready, join the local organising committee. You can find the listing of forthcoming events at

Midlands Nathan Ainsworth, Metro Shipping

Nathan was one of the panellists at Multimodal 2022 and has been involved in the YFN since it started. He has worked in the industry for over four years and is now in a supervisory role. London East Lexi Laybourn, DP WORLD London Gateway Lexi got involved in the YFN after attending an event in November 2019. She quickly made her mark as a committee member by organising port tours. During the pandemic she came up with the idea of a virtual port tour. She has shown over 1,500 people round the port using this format. Northwest Georgia Gibson, Cargo Partner Georgia is the new chair for the North West

Meet the chairs The chairs for 12 months from September are:

London Heathrow Bobbie Costin, CH Robinson

Bobbie has been working in the industry since 2016 and has been an active member of the Heathrow committee from the start. She has supported BIFA by speaking at school and college careers events during National Apprenticeship Week.

Anglia Brooke Jennings, Burhill Logistics

Brooke is always keen to promote the logistics industry as a career within the Anglia region.


October 2022


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Policy & Compliance

fleets, logistical systems, warehouses and outlets to dispose of goods wholesale. They have a detailed and intimate knowledge of how supply chains operate; they have inside agents and other informants in shipping lines and logistic companies to provide information and tip-offs. The OCG will have core members and many affiliates to be called upon when required. They have qualified lorry drivers and links into transport companies who conduct a legitimate or semi-legitimate trade, as well as being involved in cargo theft. Just as legitimate trucks will take a load from one location and return with another, these thieves do the same. It is not unusual for stolen cargoes to be re-distributed in a matter of hours following a theft. Criminals use the latest technology to aid their operations, such as trackers, GPS jammers and encrypted mobile phones. They know the primary highways, motorways and service areas. They use spotter vehicles to both identify possible targets, accompany stolen loads and watch out for the police. Fraud is another strategy used by criminals to good effect, with fraudsters impersonating a freight forwarder, a trucking company or sometimes an authority to access their target cargo. Impersonating police officers is not new and, indeed, it is an offence in its own right. Perfect storm The perfect storm of labour shortages, the COVID-19 pandemic and more recently events in Eastern Europe has resulted in large-scale congestion at many ports and unprecedented stresses through the supply chain. Businesses are likely to be under increasing pressures, whether operational or financial. Changes, particularly concerning security provisions, should be closely managed; those involved in cargo crime are waiting and watching. This article is reproduced from the TT Club Loss Prevention Supply Chain Security Bulletin (July 2022) and was written by David Thompson. David Thompson joined Signum Services in January 2013 following his retirement from the Metropolitan Police. Signum Services is the in-

The organisation of cargo crime

Freight forwarders face an ever-increasing threat from organised crime, which is becoming increasingly sophisticated, writes David Thompson (pictured)

It is an unfortunate reality that in the world of cargo theft, ‘organised’ crime has rarely been so organised. Unsurprisingly, there are ever- increasing numbers of criminals seeing lucrative opportunities in this type of low-risk, high-reward crime. There exists a whole network of active thieves and handlers of stolen goods operating across the globe and they conduct their activity much as legitimate businesses do. Old and new scams The criminal gangs that operate in the cargo crime arena are quick to seize on any chance or moment that comes their way and are adept at altering their practices either to avoid capture by the long arm of the law, or to find new moneymaking opportunities. That said, we still see a number of methods that have been in common use for many years, such as curtain slashing for example. These organised criminals are adaptive and are now moving to areas such as the internet to find information, locate targets and become more streamlined. Their operations are becoming ever more

house investigative team that conducts criminal investigations on behalf of members of the TT Club, UK P&I Club, the UK Defence Club and ITIC.

sophisticated and efficient. These organised crime groups or ‘OCGs’ have dedicated roles, intelligence networks, vehicle


October 2022


Policy & Compliance

Liner Shipping Consortia Block Exemption Regulation

At a time when many Members are unhappy with how they have been treated by carriers, the Competition and Markets Authority is set to review and consult on the Liner Shipping Consortia Block Exemption Regulation

Over the last two years, one of the most difficult subjects that BIFA has dealt with relates to problems in the maritime container market. In particular, Members have voiced concerns about carriers, including their unilateral withdrawal of contract rates from the former, poor customer service levels, and the charging of quay rent and demurrage even when it has resulted from poor carrier performance. BIFA surveyed its membership, and the subject has been

discussed at length at the regular Surface Policy Group meetings. One matter that all respondents to BIFA’s survey agreed upon was the need to improve the regulatory monitoring of shipping line activities, in particular where they acted not only as carrier but also as logistics provider. BIFA has been in regular contact with the Competition and Markets Authority (CMA) to raise Members’ concerns. Given the impact of high freight rates on trade and consumers,


October 2022

Policy & Compliance


The retained CBER, which expires on 25 April 2024, sets out an automatic exemption for certain agreements between liner shipping companies, allowing them to cooperate and provide joint services through ‘consortia’. This includes the joint operation of liner shipping services, capacity adjustments in response to fluctuations in supply and demand, the joint operation or use of port terminals, and certain other ancillary activities. The CBER does not allow liner shipping companies to agree to fix prices, otherwise limit capacity or sales, or allocate markets or customers. The CMA’s review will assess whether the retained CBER meets its intended purpose in order to make a recommendation to government on whether to replace or vary it when it expires. In carrying out its review, the CMA will take account of specific features of the UK economy serving the interests of UK businesses and consumers. It will also consider the possible implications for the retained CBER in light of recent developments in the liner shipping sector, including the impact of global supply chain difficulties. Judgment call The CMA has to determine whether the block exemption remains fit for purpose producing efficiencies for carriers, and lower prices and a better quality of service for consumers. Many argue that given market consolidation, the containerised carriers accrue all the benefits from their trade, certainly in relation to economies of scale and efficiencies. Many forwarders and shippers argue that the system is too tilted in favour of the lines; this has been demonstrated by recent events where there have been record high rates, which have coincided with the lowest ever recorded vessel reliability schedules. The CMA expects to consult on its proposed recommendation in 2023 and that the review process will be similar to that of previously reviewed retained block exemptions. BIFA has noted that in Europe, the Commission has directly approached a number of supply chain participants with a detailed questionnaire to establish their recent experiences of the maritime container industry. It is believed that details of the consultation will be posted on the CMA’s website later in 2022, in accordance with the Competition Act 1998. The CMA is responsible for advising the Secretary of State for Business, Energy and Industrial Strategy on varying or revoking retained block exemption regulations, or replacing them with UK legislation when they expire. It is anticipated that the CMA will ask for detailed information regarding rate fluctuations, service reliability and if there were and still are cases where independent freight forwarders believed themselves disadvantaged compared with a carrier’s ‘in-house’ forwarder. Having reviewed the long and complex European Questionnaire, there are some interesting questions asking for comparisons and/or contrasts between those carriers operating in an alliance/consortia and those who have remained independent. The complexity of this review of the CBER should not be under-estimated and BIFA will be encouraging Members engaged in container shipping to respond to the questionnaire from the CMA.

regulators have monitored market conditions. It is noteworthy that within a relatively short timeframe both the European Commission and CMA have announced reviews of the Container Shipping Block Exemption Regulation. The CMA is reviewing the retained Liner Shipping Consortia Block Exemption Regulation (CBER) to inform its recommendation to government on whether to replace it. The Competition Act 1998 prohibits agreements between businesses that restrict competition in the UK unless they meet the conditions for exemption in section 9(1) of the Competition Act or are otherwise excluded. This is known as the Chapter I prohibition. Legal certainty An agreement is exempt from the Chapter I prohibition if it creates sufficient efficiencies and benefits to outweigh any anti-competitive effects. A ‘block exemption’ regulation automatically exempts agreements of a certain category from the Chapter I prohibition if the agreement satisfies the conditions set out in the regulation. In this way, a ‘block exemption’ provides legal certainty for businesses. Following the UK’s exit from the EU, the EU block exemption regulations that were in force under EU law at the end of the Transition Period on 31 December 2020 were retained in UK law.

The complexity of this review of the CBER should not be under- estimated and BIFA will be encouraging Members engaged in container shipping to respond to the questionnaire from the CMA

October 2022



Policy & Compliance

Cash flow payment proposals

The European Freight Trades Association (EFTA) has supplied another article this month. EFTA is the leading credit forum for UK and Irish-based logistics companies and many BIFA Members are EFTA members

With companies possibly facing cash flow issues due to the worsening economic climate, it may be that payment of a sum owed is delayed for an unacceptably long time causing you to stop/withdraw credit and seek repayment. In such circumstances, some debtor companies hold their hands up and say something along the lines of “we can’t pay at the moment, but we want to offer a payment proposal”. Whilst this is far from ideal, it is occasionally a better option than demanding immediate full payment, not getting it, instigating some sort of recovery/legal action and applying so much pressure that the debtor company collapses and you get nothing. A case of ‘you can’t have what they have not got’. Every situation needs to be treated on its individual merits. Quite often these agreements can be fairly loose, consisting of a brief exchange of emails. EFTA suggests that after establishing the best monthly sum that can be paid, an immediate first payment is insisted upon. Remember that BIFA Members have an acceleration clause in the BIFA Standard Trading Conditions (STC) and in the event of any default in payment you reserve the right to demand immediate full payment of the outstanding balance owed at the time, together with statutory late payment interest and statutory debt recovery compensation costs from when the entire debt first fell due. You might offer that, in return for strict adherence to the payment proposal, you will waive your entitlement to claim statutory late

payment interest and statutory debt collection compensation costs as this introduces a financial incentive for the debtor to make payment on time. ‘On account’ calculations State that all ‘on account’ payments will be allocated against the oldest outstanding invoices at the time. In the event of a default, and you going for statutory late payment interest, it will help you correctly calculate what that sum is and you do not want to give the errant debtor the chance to debate what invoices have or have not been paid by various ‘on account’ payments that might have been made. You should already have engaged your BIFA STC in contracts with the customer. Ensure this is again brought to their attention and you have

acknowledgment that the payment plan is covered by the BIFA STC as having been read and accepted. Once the above has been achieved, every time you receive a payment send a brief email along the lines of “We acknowledge receipt of, and thank you for, your ‘on account’ payment of (state the amount). The remaining balance is (state the amount) and your next payment is due on or before close of business on (state the next payment date). Thank you in anticipation of receipt of the above sum in a timely fashion.” Politeness can help and it does no harm to remind the debtor company when it is next expected to make a payment. For more information about EFTA visit


October 2022

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HMRC is retiring CHIEF. Is your business ready for CDS? The Customs Handling of Import and Export Freight (CHIEF) — the UK’s existing electronic system for handling customs declaration processes — will soon be retired and replaced by the new Customs Declaration Service (CDS). Anyone who imports or exports from the UK should be aware of the upcoming changes and have a plan for the transition. Adjusting processes is never easy, but with the right planning and support, you can adapt to CDS, continue to serve your clients, and protect your bottom line.


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and special health certificates were required to comply with EU and federal German legislation. Sadly, there are many instances of animals being transported in vehicles that do not meet basic requirements such as proper temperature control and insulation. Knowles suggested more spotchecks could help improve the welfare of animals in transit. Animal transport experience JCS Livestock has been working in the field of live animal transport for over three decades. Examples of its broad experience include the movement of four male gorillas from the UK to Gabon and several leaf-eating gibbons back to Indonesia, all for release into the wild. On another occasion, the company assembled 21 scimitar-horned oryx from the UK, Ireland and Europe at a UK zoo for pre-export quarantine. “We made their crates and shipped the oryx from Heathrow to Dubai as part of an international breeding programme in the desert,” Knowles outlined. “Their direct offspring were airlifted into Chad and released into the wild – and our clients in the UAE have used our crates as a template for new shipping containers.” JCS Livestock has also worked with the Born Free Foundation, rescuing lions, tigers and leopards from circus trailers. “Every job is different, but they are all part of a conservation project, one way or another,” Knowles said. • Since winning the BIFA award, JCS Livestock has moved another group of penguins from the UK to Dublin, Ireland, in a temperature-controlled vehicle. In addition, said Knowles: “In February 2022, we moved a large number of adult birds to France to assist farmers who had not been able to truck day-old chicks over for several reasons, including avian influenza restrictions.” JCS Livestock flew a vast quantity of birds to Paris on three full chartered Boeing 737s within a two-week window during Storm Eunice and Storm Franklin. Together with wholly owned and third-party regional carriers operating as American Eagle, the airlines operate an average of approximately 6,700 flights per day to nearly 350 destinations in over 50 countries

Half of the penguins out and exploring their new pool

JCS Livestock picks up 14 stranded penguins

The winner of the 2021 Cool & Special Cargoes Award was JCS Livestock, which supported a breeding programme for rare Humboldt penguins, working around COVID-19 restrictions to deliver them safely to a new home

Philip Knowles: Every job is different, but they are all part of a conservation project, one way or another.

JCS Livestock (a division of James Cargo Services) provides live animal transport for over 40 British zoos and wildlife parks, said general manager Philip Knowles. Early in 2021, the company relocated a colony of 14 Humboldt penguins from Curraghs Wildlife Park on the Isle of Man to the Exploris Aquarium in Portaferry, Northern Ireland, as part of a European Endangered Species Programme breeding initiative.

having to go into a 14-day quarantine. Once loaded onto one of JCS Livestock’s temperature-controlled vehicles, which kept them cool, the birds crossed the Irish Sea back to England on a ferry. Humboldt penguins derive the moisture they need from their food, so they were offered sprats regularly during their 660- mile, 19-hour journey – which finally took them to Belfast Port and on to their new home. Also during 2021, JCS Livestock moved three lionesses from London Zoo to Germany. The big cats travelled on a direct flight to Frankfurt owing to limitations at the Border Control Post in Calais,

Circuitous route COVID-19, unsurprisingly, threw up

complications. The move should have been a simple boat trip across the Irish Sea; instead, JCS Livestock had to make alternative arrangements. A dispensation allowed staff to collect the penguins from Douglas Port without


October 2022

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instructing them, or • Indirect, where the Customs Agent shall act in his own name although instructed by a person. Paragraph 21(2) of TCTA 2018 states that both when a Customs Agent is appointed and when their appointment is withdrawn, this must be reported to HMRC in accordance with any regulations made by HMRC Commissioners. The effect of such an appointment as Customs Agent is dealt with under Paragraph 21(3), which states that anything done by or in relation to the agent under this part of the TCTA 2018 is regarded as having be done by or in relation to the Principal and not the agent – in other words, the instructing party. There is one exception to paragraph 21(3), being if a Customs Agent acts as an Indirect Agent. In such cases both the Indirect Agent and the instructing party who is referred to as ‘the principal’ are liable for the import duty Paragraph 21(6) deals with cases where the Direct Agent may still be liable for the import duty if the appointment of the Agent has not been disclosed to HMRC as required under paragraph 21(2) as set out above; and if the agent acts at a time where their appointment has been withdrawn; when the agent purports to have authority but has not been given such authority; and when the declaration made by the agent for a Customs procedure and the declaration has not been made in accordance with the simplified Customs declarations provisions. Customs debt Clause 7 of BIFA 2021 STC provides for the Company acting as Direct Agent for the Customer so that it is the Principal who is responsible for the Customs debt. It is advisable to get a signed authority to act as your Customer’s Direct Agent so that if you are requested to justify your authority you are able to produce this to HMRC. It is also advisable, just in case you are taken to be jointly and severally responsible for the import duty or deemed to be an Indirect Agent of a customer outside the UK, that you seek a deposit or guarantee from your customer to cover potential liabilities to avoid the need to recover the duty from your customer if HMRC seeks payment from you, particularly if they are in a jurisdiction where it may be difficult to make recovery. The text of Clause 7 of the BIFA 2021 STC is different to previous versions of the BIFA STC owing to the change in legal name and reference now being to ‘Direct Agent’ and the TCTA 2018.

Know your BIFA Standard Trading Conditions: Clause 7 In this month’s examination of the BIFA Standard Trading Conditions (STC) we reach Clause 7. Representation is a complex subject and BIFA members are recommended to study our publication A Guide on the Appointment and Responsibilities of a Customs Agent , which can be found at the BIFA website

Comment on Clause 7 Section 21 of the Taxation (Cross-border Trade) Act 2018 (TCTA 2018) states under the heading ‘Customs Agents’ at Section 21(1) that a person may appoint any other person (‘a Customs Agent’) to act on their behalf to either make Customs declarations in the name of the person they act for (‘a Direct Agent’) or to make Customs declarations in their own name (‘Indirect Agent’). Paragraph 21(1) (a) and (b) confirms the definition of each type of agent as follows: • Direct, where the Customs agent shall act in the name of and on behalf of the person

Freight Forwarders should always have evidence that their relationship with their customer is as a ‘Direct Agent’ and correct incorporation of the BIFA STC in contracts with the customer are another piece of evidence of this. CLAUSE 7 In all and any dealings with HMRC for and on behalf of the UK established Customer and/or Owner, the Company is deemed to be appointed, and duly empowered to act as a Direct Customs Agent only, to make Customs declarations in the name of the Customer (Principal) as its ‘Direct Agent’.


October 2022

Policy & Compliance


Winners of the Young Logistics Professional Award announced at FIATA World Congress

During the FIATA World Congress in Busan, Republic of Korea, last month, the global winner of the Young Logistics Professional Award was announced by FIATA and TT Club. Earlier in the year, four regional winners had been announced and these individuals were invited to Busan to present their dissertations to the selection committee. Representing the Canadian International Freight Forwarders Association (CIFFA), and having previously been announced the winner of

the Americas region, Karina Perez Perez was awarded the title of Young Logistics Professional of 2022. The other three finalists were: • Asia Pacific Winner – Avishkar Srivastava, Federation of Freight Forwarders’ Associations in India (FFFAI); • Africa and Middle East Winner – Ruvimbo Gukwe, Shipping and Forwarders’ Agents Association of Zimbabwe (SFAAZ); • Europe Winner – Maximilian Drüschler,

Bundesverband Spedition und Logistik (DSLV), Germany.

Previously known as the Young International Freight Forwarder of the Year Award, this competition has been running for over 20 years. The UK nomination from BIFA is the current holder of the BIFA Young Freight Forwarder of the Year award. To be in with your chance to represent the UK, enter the BIFA Awards now at

First six national associations implement eFBL with distribution agreement

Spotlight on safety

BIFA is proud to be one of the first six national associations who have now started their journey in the distribution of paperless FIATA bills of lading.

Following the successful re-introduction of the TT Club Innovation in Safety Award in 2021, with its record number of entries, the 2022 award will form the centrepiece of TT Club and ICHCA’s ongoing efforts to encourage players in the freight transport and cargo handling sectors to continue improving operational safety and efficiency through innovation. ICHCA International, the global cargo handling association, launched the 2022 TT Club Innovation in Safety Award in September, inviting entrants to submit details of their innovations by 11 November 2022. The award, which is open to an individual, team or company involved in cargo logistics, has seen the prestige associated with winning or being highly commended, grow year on year. Past winners have ranged from individual entrepreneurs and specialist suppliers to employee teams in major industry businesses. Entrants are required to show that a product, idea, solution, process, scheme or other innovation has resulted in a demonstrable improvement in safety. Details of how to submit entries, and of the judging criteria, can be found at: safety-awards

The other five are:

• ACTC – Brazil, • ALOG – Chile, • FFFAI – India, • TLF – France, • UTIKAD – Turkey.

In a recent press release, FIATA noted that the six national associations have led the way by being the pioneers on this digital journey. FIATA will update these records when the second group of associations has successfully signed the distribution agreement. BIFA Members are automatically FIATA members and therefore can benefit by using the eFBL to: • Save time and money – Sending electronic documents within seconds and paying up to three times* less than with paper processing. • Optimise processes – Issue paperless FBLs directly from TMS and avoid double data entry. • Bring trust and security – Give stakeholders the possibility to verify at any time the validity of the eFBL, its identity and the document

content integrity. • Achieve sustainability goals – Embrace a green solution, help saving paper and unnecessary courier services. For more information, Members are asked to head to this specially designated website: FIATA eFBL. *According to DCSA study content/uploads/2020/05/20200519-DCSA-takin g-on-eBL.pdf

October 2022


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