Policy & Compliance
BIFAlink
www.bifa.org
Customs cleared in 45 minutes from the time they enter the Shuttle and are already in free circulation as soon as they leave the train in France; • Veterinary and sanitary inspections (if any) are handled in one single country of entry; • Import VAT is deferred at the time of Customs clearance – no need then to pay it upfront. Essential steps in order to sell DDP through France to the wider EU? The UK exporter/shipper will need to: • Appoint a haulier and a Customs broker in the UK who will manage the transport of goods and take care of the Customs export declaration; • Employ a Customs broker in the EU and ask them to clear the goods in the UK exporter/shipper’s name in the EU and make the necessary fiscal arrangements; • The UK exporter/shipper will need to obtain an EU EORI number; • The UK exporter/shipper must register for VAT in France. A few words about VAT Under DDP terms, the UK exporter becomes the importer of record of its own goods in the EU through France, requiring it to register for VAT in France. Having a French VAT number allows the UK- based company to report to the tax authorities the operations that it will have in the EU such as imports of goods, local and intra-community sales and benefit from the import VAT deferment. Fiscal representation is a well-established regime in France and other EU member states, where legislation permits. However, BIFA is aware that the party providing the fiscal representative service, due to the tax liabilities, will often exclude work from certain sectors and apply strict credit policies, which have to be adhered to. For export traffic shipped to the EU, certain advantages are clear. However, as with any Incoterm there are certain disadvantages – it must be remembered that these terms are contractual, not legal. The most frequently asked question that BIFA receives concerns who pays for the cost of delays such as storage, demurrage and waiting time. BIFA’s advice on this is to always ensure that the buyers and sellers have discussed and agreed those sorts of pitfalls before moving cargo. BIFA would like to thank RM Boulanger for its assistance in the preparation of this article. Contact@rmboulanger.com
Surprise at the lack of cargo insurance Following the Ever Given incident (March 2021) in the Suez Canal, surprise has been expressed by analysts at the lack of cargo insurance purchased by cargo owners. BIFA Associate Member The Insurance Broker has contributed the following article about cargo insurance
Maritime Law dictates that should a marine venture come into problems, such as through high seas or an extraordinary maritime event such as grounding, the line can declare General Average and every cargo owner with cargo on board the vessel must contribute financially to the loss incurred by the vessel owner or indeed other cargo owners such as in the event of jettison. The master of the ship has the right to hold cargo until such time as the financial contribution has been received from the other cargo owners or a guarantee for the same has been received from a company of significant financial standing. Cargo insurance is usually sold on an ‘all risks’ basis covering many of the eventualities expected by importers and exporters. The cost of cover is remarkably cheap, sometimes as little as £1-3 per £1,000 of cover, dependent upon the nature of the cargo and the destination. This makes cargo insurance, in most cases, pound for pound cheaper than household buildings insurance and you would not do without that would you? Cover is simple to arrange and can usually be purchased in just a few clicks.
It would appear that the majority of cargo travels uninsured with cargo owners relying on carriers and/or freight forwarders for compensation. Using their Standard Trading Conditions and/or bills of lading, the carrier and/or freight forwarder can limit their financial responsibility to the cargo owner, which frequently results in a dissatisfied customer. In the transport sector, custom is very hard to win but can easily be lost if the customer believes that its expectations have not been managed particularly well in the event of a claim. Northern Marine Underwriters says it is estimated that “over half of goods transported around the globe remain uninsured”. (www.nmu.co.uk/taking-the-burden-out-of- cargo-claims/) A little-known free cover provided by cargo insurance is that of General Average. All cargo insurance policies automatically include General Average cover which can be particularly useful in the event of an incident such as that in relation to the Ever Given.
The Ever Given blocking the Suez Canal in 2021
October 2022
21
Made with FlippingBook Annual report maker