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 January 2025 BIFA link Safety & Security GB declarations: Your liabilities
INSIDE: UKACC 2000 charity record • Dangerous Goods Notes • Licence documentation waivers • Scams update • Awards set to sparkle
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Issue: 413
Steve Parker’s Column
Happy New Year
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 Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors Steve Parker, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Web site: www.bifa.org E-mail: bifa@bifa.org 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.
First of all, let me take this opportunity to wish all our Members a happy and great new year. What brings 2025? As we enter 2025, and in an effort to understand what this year might do for our industry, I have been reading the forecasts being provided by many publications. Most are positive and suggest 2025 will be buoyant with increased growth and even strong investment in both hard assets and software (you notice I didn’t say AI). This positivity is almost always followed by cautionary notes about the various situations around the globe. As I wrote this column, shippers were
being warned of a potentially chaotic start to 2025 for container shipping. Increased tariffs from the Trump 2.0 administration, a possible US East Coast ports strike, and alliance restructuring, all pose the threat of turbulence. All that notwithstanding, the forecasts look good and we can prepare for a strong 2025. What is BIFA doing? As we move into the new year, BIFA will continue to support you as best as we can and ensure that everything that we do is easy for you to access and brings benefits. Hence, we will continue with and enhance BIFAlink TV making it our best daily source of information. Since its launch we have learnt a lot on how to do this and will continue to improve the channel as the year progresses. We are transitioning the most popular elements of our training to bitesize eLearning modules. This was more difficult than we thought it would be at the outset, but these courses will come online during January, followed by our new and improved CDS/Compliance courses by the end of Q1. Remember these modules are all included in your membership fee, meaning there is no cost as you and your colleagues undertake them. We will update Members with details of their release and instructions for registration through BIFAlink TV. All the usual policy group and regional meetings, which saw increased attendance in 2024, have been planned (dates available at https://bifa.org/events/). They are a great way to share information and discuss both national and local issues and I encourage you to come along to your local meeting. As well as our longstanding awards ceremony, we are planning a national conference for 14 and 15 May 2025 – see page 12 for more information. Added to all this our Young Forwarder Network (YFN) continues to grow, although the number of individuals starting the on the International Freight Forwarding Specialist Apprenticeship fell in 2024, and we will be working to push greater take up in 2025 – see page 6 to find out how to become involved in the re-formed apprenticeship trailblazer group. What do we ask our Members to do? Keep close to BIFAlink TV and either join or encourage your team members to join our various meetings; this will help keep you up to date with the possible impact of regulatory and industry changes. In freight forwarding and logistics, it is often the case that issues only come when something unplanned pops up. In container shipping, we know the forthcoming alliance reshuffle is coming. Carriers and freight services have already planned and catered to that. Shippers should expect some disruption while the new alliances bed down, but barring any exceptions, eventually we are hopeful that the new networks deliver the improved service levels that carriers are promising.
All the very best for 2025.
Director General
January 2025 | 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. Subscribe by scanning the QR code.
Jersey appoints DFDS to operate freight services
berth expected to become operational by the summer of 2025. IN TRADE Global goods trade continued to expand at a moderate pace in the fourth quarter of 2024, according to December’s WTO Goods Trade Barometer. However, prospects for trade in 2025 are uncertain as they may be affected by possible trade policy shifts, leading the WTO to predict that trade volume growth in 2025 is expected to reach 3%. The Future International Trade Alliance has called on stakeholders from across the industry to join the other 200+ visionary companies and sign its electronic Bill of Lading Declaration to promote adoption of eBL to facilitate the digital transformation of the global supply chain. A British Chambers of Commerce (BCC) survey has found that UK firms still regard problems at Customs as their major block to exporting, with many saying that these difficulties have not been helped by the constant postponing of measures expected to make trading easier. IN BUSINESS BIFA and the TT Club hosted delegates from Clecat and the FIATA Working Group Sea in late November for two days of meetings and port visits in London. Delegates had the opportunity to discuss the latest developments regarding maritime logistics at global level and potential initiatives to ensure a fair and competition and business relations throughout the maritime supply chain, ICS2 release 3 and global shipping decarbonisation measures. On day two, delegates toured the port and terminal facilities at DP World London Gateway. level playing field for its resilience. Topics under discussion included fair
ON THE OCEAN The government of Jersey has appointed DFDS as its preferred bidder to operate the island’s UK and French passenger and freight services from 28 March 2025. For freight users, this is expected to mean a flat rate card (rather than volume- based pricing) to provide greater certainty and improve freight competitiveness, as well as more regular freight sailings to and from the UK and France at peak times. Shipbroker Braemar says the delivery of newbuildings in 2025 is likely to lead to
oversupply of container shipping capacity from 3-4% in 2024 to 7-8% in 2025. IN THE AIR Global air cargo demand showed no signs of slowing down last November as volumes recorded a 13th
consecutive month of double- digit growth, with load factors hitting their highest level since April 2022, according to the latest market analysis by Xeneta, published in early December. IATA has forecast cargo demand growth at an all-time high of 11.8% for 2024 and predicted continuing growth, at around 6%, in 2025. However, the association warned of possible headwinds from tariffs that could be imposed by the incoming Trump administration. Boeing said in its latest Air Cargo Forecast 2024-2043, published in December, that it expects global air freight to grow by 3.4% annually, with express outgrowing standard freight. It added that the continuing diversity of supply chains will benefit countries in Southeast Asia, Latin America Peel Ports Group is committing GB£30 million to a new in-river RoRo berth and floating pontoon at the port of Sheerness to meet increasing demand from both new and existing customers, whilst enhancing the port’s capacity to handle rolling cargo and accommodate larger vessels. On-site construction is due to start in March 2025, with the and Eastern Europe. ON THE QUAYSIDE
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4 | January 2025
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BIFA News
Apprenticeship Trailblazer group seeks participants
It is eight years since a BIFA- led Trailblazer group got together and crafted the content of the now well- established International Freight Forwarding Specialist Apprenticeship standard. Now, we want to create a new Trailblazer group and decide what is next on the skills landscape. We are looking for Members to get involved. Initially, we are interested to hear from HR, talent, learning and development, end-point assessors and training providers
to kick-off the first meeting. Carl Hobbis, Member Services Director, explained: “Since the Trailblazer group was formed back in 2016, many participants have moved in different directions, so it is essential that we refresh the group. “A new group will show initiative and give us fantastic opportunities to discuss ways of encouraging fresh talent into the industry, as well as stimulating a discussion on the skills agenda within logistics. “We need a mix of
organisations of all sizes, and rules stipulate that a certain percentage of participants should be from companies employing fewer than 50 staff. “I don’t see this being much work, possibly the odd Zoom/Teams meeting every quarter and being part of the group is a good way of giving back to the industry.” To register your interest in joining the group, get in touch with Carl Hobbis at c.hobbis@bifa.org
Apprentice success for Shelby
Just over 18 months ago, in May 2023, Shelby Merchant joined the Secretariat at BIFA as Events Assistant apprentice working alongside Sharon Hammond and Denise Hill in bringing the ever- expanding portfolio of events to BIFA Members in all regions of the UK. Soon after joining the team, Shelby was enrolled on the event assistant apprenticeship programme and in early December 2024 she successfully completed her end-point-assessment (EPA), presenting a case study on the behind-the- scenes work that is carried out to bring events such as the BIFA Business Leaders Forum to Members. Sharon Hammond, BIFA Events Executive, said: “Shelby has become an integral member of the team here at the Secretariat, working on the full range of BIFA events, but in particular the multiple regional member meetings that take place every quarter in venues around the country. She has worked hard over the course of her apprenticeship and fully deserves the success that she has achieved.”
UKACC 2000 raises record charity total
BIFA Air Policy Advisor, David Stroud continued his tenure as chair of the UK Air Cargo Club (UKACC 2000 Ltd) with a hugely successful Christmas luncheon that took place last month at the Castle Hotel, Windsor. Over 260 attendees from airlines, handling agents and freight forwarders came together to celebrate the season and to raise awareness and money for Alzheimer’s UK.
A UKACC Christmas lunch record total of £4,205 was raised by the event that will contribute to the ongoing research, education and support services provided by Alzheimer’s UK to sufferers of the range of dementia illnesses, and their families. Opening the event by asking for a show of hands from those who have a family member or friend affected by dementia, David demonstrated that few
people are untouched by this debilitating and progressive disease. Thank you to everyone that came along to the Christmas lunch and donated with such generosity. If you were unable to make it and would still like to make a donation,
please scan the QR code.
6 | January 2025
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BIFA News
Ital hosts dangerous goods workshop for YFN
Descartes Systems Group identi fi es supply chain challenges BIFA Associate member Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, has released fi ndings from its 2024 Supply Chain Intelligence Report: Escalating Challenges for Global Supply Chain Leaders survey. This examined the most signi fi cant global trade challenges facing logistics and supply chain leaders today. The study showed that 48% of respondents identified rising tariffs and trade barriers as their top concern, closely followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue, regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501- 1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing. The full report, analysing responses by country and
BIFA Member Ital Logistics hosted an exclusive and very interactive ADR awareness course for a small group from the Young Forwarder Network (YFN) in November 2024. Ital Logistics is synonymous with the carriage of dangerous goods, and BIFA was excited when it offered its services to support up-and-coming forwarders of the future. Adam Smethurst, one of the company’s DGSAs, and Simon Morley, managing director/DGSA of sister company Ital Transport, wrote and delivered the one-day course which was designed
specifically to teach freight forwarders what they ‘need to know’. A halfway house between a basic course and a step into the world of DGSA, the course was hands-on from the thumbing of the ADR book to marking and labelling
Freight forwarders are encouraged to: take note of the new liability limits; notify their shippers and other stakeholders; review and adjust contracts to reflect these new terms; review their liability insurance arrangements; and consult with their insurer to ensure that cover extends to these new limits. packages. The day received great feedback, with one attendee stating that the course was “very informative and the venue and staff were great”. Our thanks go to Adam, Simon and the rest of the team at Ital Logistics for their time
Montreal liability increase
Members are reminded that from 28 December 2024, the liability limits for passenger and cargo claims under the Montreal Convention of 1999 (MC99) have increased. According to the changes, the limit for destruction, loss, damage, or delay of cargo rose
from 22 SDRs to 26 SDRs per kilogram. (see Article 22, para. 3 MC99). The liability limits are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund. The listing below has been updated to reflect the new rate.
industry, can be downloaded by scanning the QR code.
The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £17.52 per kg
By sea – Hague Visby rules (2 SDR): £2.06 per kg £687.22 per package
BIFA STC: (2 SDR): £2.06 per kg
By road – CMR (8.33 SDR): £8.59 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 12 December 2024, according to the IMF website, was 1.03083)
By air – Montreal Convention (26 SDR): £26.80 per kg
+44 (0) 1628 532613
macbeths.co.uk
January 2025 | 7
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Policy & Compliance
Who is responsible for completing the Dangerous Goods Note?
The BIFA Secretariat has received several enquiries from Members about EXW shippers who declined to complete the Dangerous Goods Note (DGN). So who is responsible?
W hen dealing with Works (EXW) and Delivery Duty Paid (DDP). The most important point to make is that these are contractual terms and are overridden by law and international convention. Recently the BIFA Secretariat has received several enquiries from Members where EXW shippers declined to complete the Dangerous Goods Note (DGN). The argument was that they were not the exporter under the terms and that the buyer needed to complete the document. The essential point is that the Incoterms enquiries, two terms dominate – Ex Incoterms of a shipment do not have a bearing on the responsibility of the consignor for a dangerous goods (DG) shipment and the requirement to complete a DGN; this is defined in international convention. Logical conclusion In particular, please refer to IMDG Code Ref 5.4.1.6; this definition clearly does include the EXW shipper – in fact, logically, it is the only party who knows exactly what is packed for export, including quantities and precise nature of the goods. For IMDG Code DG shipments there are two signatures required: 1. IMDG Code Ref: 5.4.1.6: The consignor/shipper
The consignor is the only party that can make the declaration. The consignor, according to the IMDG, is the person or organisation that prepares a consignment for transport . The seller might be a different company/person altogether – for instance, the consignor may be a fulfilment company that prepares the consignment. 2. IMDG Code Ref 5.4.2: Container
packing certificate – This certification is for the container packer/loader. The person signing this is responsible for the compliance of all the DG in the container and the container itself. This cannot be anyone else apart from the person who is responsible for loading the container. Who signs? These two signatories can be the same person if the consignor is loading an FCL, in which case one DGN can be used with the consignor signing both the above. If the shipper is sending an LCL to an FCL consolidator, then the shipper need only sign the DGN
“ The essential point is that the Incoterms of a shipment do not have a bearing on the responsibility of the consignor for a dangerous goods (DG) shipment and the requirement to complete a DGN
certification box shall be signed and dated by the consignor – This is a declaration that the consignment/s has/have been prepared in accordance with the IMDG code – in other words classified, identified, packed, marked, labelled, etc.
once for its consignment and not for the container packing certificate. BIFA would like to thank Ascent Consultancy and Training
www.ascent-ct.com for their assistance in preparing
this article.
8 | January 2025
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Policy & Compliance
Your liabilities when completing Safety & Security GB declarations BIFA has consulted with legal experts on behalf of Members regarding potential liabilities stemming from the completion and submission of a S&S GB declaration. The discussion focused on accompanied RoRo movements for imports from Europe. It is felt that due to resources and knowledge, the haulier in such movements may not be able to complete this declaration.
T he law is clear on the completion and submission of a S&S GB declaration (referred to as an Entry Summary (ENS)), it is the operator of the active means of transport who is responsible to submit the declaration or ensure that it has been done. In the driver accompanied RoRo environment, the haulier will be legally responsible for filing the S&S GB declaration. The second point to emphasise is that whilst requiring much of the same data as a fiscal declaration, the ENS is separate and has its own legal basis placing legal obligations on different parties within the supply chain. Potential scenarios However, it is clear that some (if not many) hauliers are not in a position to file this security declaration. The haulier can agree or decline to allow another party to submit an entry summary declaration. However, it is important to note that HMRC guidance indicates this has to be included in an agreement between the two parties. This means that another party, such as a freight forwarder or importer, may be the party submitting this declaration. If the freight forwarder agrees to be the party to submit the ENS, this is a commercial decision and it will have to consider contractual terms in order to protect itself. The following are the main scenarios that have been identified: 1. The BIFA Member (freight forwarder) arranges transport from origin, conducts all Customs activities including submitting the S&S GB at the importer’s request, and makes final delivery; 2. The importer arranges transport and requests the BIFA Member to arrange Customs and S&S GB declaration; 3. Delivery Duty Paid (DDP) shipment where there is no
importer established in the UK; 4. The haulier contracts with the freight forwarder for the latter to complete the S&S GB declaration on the first named party’s behalf. Effectively the haulier is sub- contracting this submission of the ENS to the freight forwarder in this scenario. The current legal view is, in at least the first three scenarios, separate contracts are not required and that incorporating the BIFA STC is sufficient, subject to the Member conducting its business in a diligent manner. The reasoning is straightforward, there is a contract in place between the BIFA Member and importer to undertake UK Customs formalities to clear the goods. The new S&S GB requirement, which as we have seen is legally separate from the fiscal declaration, is in addition to existing Customs procedures performed on behalf of the client. It will be for the agent to decide whether or not it wishes to submit the ENS declaration. In the first and second scenarios it will be on behalf of the client. The Member would be wise to confirm in writing: • That the service is subject to BIFA STC which have been incorporated into the contract; • Precisely what data is required and whether it is obtainable; • The importer’s responsibility to ensure that data provided is accurate; • The timeframes for receiving the information; • Who will be responsible for the invoice charges.
“ If the freight forwarder agrees to be the party to submit the ENS, then this is a commercial decision and it will have to consider contractual terms in order to protect itself
10 | January 2025
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Policy & Compliance
Submitting on behalf of the haulier The fourth mentioned option would be a new service and consideration, particularly regarding where and from whom the data to complete the declaration would originate. The BIFA STC are broad ranging and would cover a Member submitting a declaration on behalf of a haulier; the latter in effect would be a customer of the agent submitting the ENS. Considerations As submitting safety and security declarations for roadfreight from the EU is a new process, it is essential to consider a number of factors including: • Responsibilities for submitting the information that needs to be included in the ENS; • Timelines for submitting the data to government; • The importance of clearly incorporating BIFA STC in any and all contracts with parties on whose behalf Members act. In all situations the haulier retains responsibility for ensuring that the ENS is submitted (the provision of a valid MRN is thought to be sufficient evidence) while the responsibility for its accuracy rests with the party making the declaration. Due to this the haulier will have its own concerns, mainly centring around the consequences stemming from issues surrounding inaccurate data being included in the ENS. The CMR Convention does permit international hauliers to recover such costs, including for delays and demurrage, from their customer. BIFA Members should be vigilant to ensure that hauliers do not place any responsibilities on them greater than those in the relevant convention or BIFA STC. Government encouragement There is considerable confusion regarding the submission of the ENS particularly as, rather late in the implementation process and faced with hauliers advising that they are not willing or able to submit the declaration, government has started encouraging BIFA Members to undertake the task. Solicitors believe that BIFA STC are sufficiently broad to cover scenarios where Members complete and lodge an ENS. The crucial point is that the STC must be incorporated with the client, whoever they may be. It would be good practice to highlight that these cover all activity conducted on behalf of the client and do include the new requirement to submit the ENS. It must be remembered that this is generic information and Members should seek specific guidance from a suitably qualified legal expert on the contractual arrangements if they have any concerns. This is a complex and evolving situation, and to further assist Members we have arranged an online webinar with HMRC to be held on 7 January on this subject. Register to attend at https://bifa.org/event/webinar-ss- gb-declarations-from-the-eu-technical-discussion/.
BIFA has reviewed the S&S GB dataset and, after speaking to Members, it is felt that the following data will be difficult to obtain: • Identity of means of transport crossing the border (vehicle registration number); • Seal Number; • Country(ies) of routing codes; • Transport charges method of payment code. DDP shipments DDP shipments are more complex, particularly where there is no importer established in the UK. Solicitors feel that, in this situation, agreement will need to be reached at origin regarding responsibilities and allocation of costs. All charges, including for lodging an ENS, will be for the account of the origin seller/exporter. The party raising the final invoice to the seller/exporter is usually either the carrier or the origin agent. The UK Customs agent acts as a UK ‘Indirect Customs Agent’ on behalf of the non-established party when submitting the Customs declaration, and the agent should liaise with the party from whom it takes instruction and invoice it regarding submitting the ENS. Once again, BIFA STC should be incorporated in any contract. However, for DDP shipments where there is an established UK importer, agreement can be reached that the freight forwarder will make the ENS declaration on behalf of the importer. Although the cost will still be chargeable to the overseas seller.
“ Solicitors believe that BIFA STC are sufficiently broad to cover scenarios where Members complete and lodge an ENS
BIFA would like to thank Bruce Hailey of Salvus Law (email bh@salvuslaw.org) for his assistance in preparing this guidance.
January 2025 | 11
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Member Engagement
The Slate, Warwick Conferences
Revived BIFA conference set to present unrivalled opportunities
Further details of the conference programme will be released soon. Book now Tickets for the conference taking place on 14-15 May 2025 are now on sale and can be booked by visiting https://bifa.org/event/bifa- national-conference/. Your ticket includes: • Access to all conference sessions, • Access to the exhibition space, • Lunch and refreshments on both days, • Networking drinks reception and gala dinner with guest speaker Kriss Akabusi MBE. • Overnight accommodation, • Breakfast on day 2, • Car parking. The price for the full conference package (as above) is: • BIFA Members (trading and associate members) £595 + vat per delegate • Non-members (subject to availability) £695 + vat per delegate To enquire about sponsorship packages, contact Sharon Hammond, events executive (s.hammond@bifa.org).
The national conference to be held on 14-15 May 2025 will be BIFA’s fi rst for 19 years
Kriss Akabusi, MBE
“ Don’t miss this unrivalled opportunity to hear from a range of industry experts on topics that directly affect BIFA Members
B IFA Members are invited to attend the first BIFA National Conference for 19 years, which will bring together thought leaders and industry experts for two days of engagement and discussion under the headline ‘Ignite today – Accelerate tomorrow’. BIFA has chosen a centrally located, purpose-built conference centre, The Slate at Warwick University, where we will have exclusive use of a modern venue allowing for an extensive conference programme, space for exhibitors and a gala dinner.
Conference programme Don’t miss this unrivalled opportunity to hear from a range of industry experts on topics that directly affect the activity of BIFA Members. • Day 1 will include sessions on air freight, ocean freight, sustainable logistics, Customs insights and legal matters. • Day 2 will include an expert on cybersecurity, with other speakers to be confirmed. Sessions will be presented in a variety of formats with the opportunity for delegates to ask questions and provide feedback.
12 | January 2025
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Policy & Compliance
End of an era for licence documentation waivers Following removal of the 999L waiver codes on 31 January, traders will be required to use a relevant Y code for exports
to an end. For import CDS entries, the use of the 999L waiver codes ended on 31 January 2024. Due to a later introduction of the CDS export system, the removal of the waiver for goods leaving the UK is scheduled for 31 January 2025. New requirements Following the removal of the easement, traders will be required to use a relevant Y code applicable to the commodity code. The relevant Y codes can be found by using the Online Tariff Tool where detailed tariff information can be accessed, or by searching the HMRC list of codes available
F or readers familiar with the legacy of the Customs Handling of Import and Export Freight (CHIEF) system, the use of LIC99 code will still be well remembered. The LIC99 waiver code was introduced to be used in circumstances where declarants were certain that the imported or exported goods were not subject to licensing requirements. Positive statement Entering the code on the Customs entry was a positive statement that licensing requirements were not applicable to goods being imported or exported under the specific commodity code.
The waiver’s main use related to those commodity codes associated with goods potentially subject to dual-use, firearms, SPS (sanitary and phytosanitary), pharmaceutical, CITES or similar licences. With the introduction of the new Customs Declaration Service (CDS), which replaced CHIEF, HMRC introduced a similar easement using the 999L code. This decision, based on industry feedback, aimed to facilitate a smoother transition to CDS by temporarily waiving the need for additional documentation related to prohibitions and restrictions. However, with the new waiver code, HMRC set specific dates when the use of code would come
“ The relevant Y codes can be found by using the Online Tariff Tool
to download from the BIFA website or by scanning the QR code.
BIFA advises its members to start using specific Y codes as soon as possible. Early adoption will help identify any gaps in code availability and allow sufficient time to address potential issues.
January 2025 | 13
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Policy & Compliance
Get smart – not scammed In a recent episode of BIFAlink TV, Member Policy and Compliance Director Robert Windsor discussed frauds that had been reported to the Association. The following is a summary of what was discussed.
M embers have increasingly been reporting to us that they have been a victim of fraud. Crime, including fraud, is a major problem for our sector – freight forwarders are being targeted. At any time of year it is essential that Members remember the most essential piece of advice BIFA has ever given – ‘Know your customer’. This can be achieved in a variety of ways but the most important is to have robust ‘due diligence’ procedures to gather and validate data on potential clients. Can you explain precisely the problems that Members have recently advised BIFA about? In 2023 we were made aware of the ‘Mango Scam’ and advised Members about it. It was a Europe- wide issue. Towards the end of 2024 we were approached by Members who used the phrase ‘Mango Scam’ to describe the situation. This time it is similar, but not the same. BIFA has noticed a very sharp increase in freight crime levels since the COVID-19 pandemic. What sort of monetary sums were involved ? The largest sum involved that we are aware of was £400k, one Member lost £156k and another £112K. A fourth Member lost £60k, but others were less willing to discuss their losses. Can you explain more about the differences and similarities in the 2023 and 2024 frauds? In 2023, the origin of the freight was wider – India, Pakistan and the Gulf States. There were connections to
Europe, particularly Belgium, and the commodity was almost always mangoes. In 2024 the consignments, in the main, originated from Bangladesh and were handled by an agent who is a member of a well-known agency network. Commodities have mainly been fresh fruit (including mangoes) but clothing has also been shipped under this scam. In all cases the fraudsters ran up large bills and then simply disappeared without settling their account. Is there anything unusual about the shipments? There are variations between each case, but the following common strands have been identified: • Often the fraudulent party only • Initial contact was unsolicited, with requests for quotations to various locations across Europe. • Large cargo volumes were proposed, despite the company’s limited financial capacity. • There was an acceptance of quotes without any inquiries or negotiations • The company address, listed as a Regus office, and the lack of prior import/export activity raised further concerns. • Directors associated with the fraudulent activity have recently changed, with the new director reportedly of Belgian origin and listed as having no significant assets. sought airfreight handling, without collection, Customs clearance, or destination delivery services.
“ In 2024 the (Mango Scam) consign - ments, in the main, originated from Bangladesh and were handled by an agent who is a member of
What types of fraud have BIFA Members been victim to? In effect there are two main types of fraud that we see: • Short firm fraud • Identity fraud. The former is particularly difficult to identify because the main issue is that a lot of people do not understand what short firm fraud is all about. An expert in dealing with fraud provided us with the following definition. It is where “fraudsters file bogus accounts at Companies House to generate massive credit recommendations from unwitting credit reference agencies, which are then used to enable goods and services to be obtained from suppliers who will never receive payment”. What can Members do to protect themselves? No process is 100% foolproof but
a well- known agency network
14 | January 2025
www.bifa.org
Policy & Compliance
include an attempt to assess whether it intends to pay. What can you do to limit damage if the due diligence check fails to spot a fraud? One thing that stood out in most of the cases highlighted, was that in too many instances, as one victim has told BIFA: “We were too busy doing the Customs clearance to keep an eye on the credit.” In other words, credit limits were either too generous or overlooked in a busy operational department. Two cases highlighted how good credit control policies limited damage. In one case the Member had agreed with the importer that it would expect payment of the first shipment handled before undertaking further work – when this was not forthcoming it simply refused to clear the next consignment until payment was received. The importer disappeared leaving it out of pocket, but for a manageable sum of money. Given the current issues, we have been advised that our old mantra of ‘know your customer’ has never been more relevant.
forwarders need to start asking more questions when being approached to provide their services. As one expert credit controller put it: “Presume the worst until the potential client has passed all the checks.” We have been advised never to trust data from any one source until you have examined and checked it out for yourself. The data at Companies House, although improving, is still flawed. Credit reference agencies provide a useful service but, in all probability, there is too much reliance placed on them and their outputs. They will collect information on companies, but they do not always spot bogus accounts. The only way to detect short firm fraud is for Members to actually inspect the accounts and other data filed at Companies House and ensure that they fully
understand how to spot potential points of concern which include, but are not limited to: • Changes of company ownership/directorships; • Change of activity – one company attracting attention at the moment was previously a cleaning contractor. Now it imports fresh fruit; • A sudden increase in profitability from one year to the next; • Too prompt a history of filing accounts at Companies House - no company files their accounts only 15 days after their end of financial year for instance. This is not an exhaustive list but provides some indicators of what to look out for when considering whether to do business with a potential customer. Due diligence checks used to be made to establish the credit worthiness, etc, of a customer; nowadays they
“ In all cases the fraudsters ran up large bills and then simply disappeared without settling their account
BIFA Good Practice Toolbox For further information BIFA
members should refer to the BIFA Good Practice Guide - A Guide to Due Diligence regarding credit application Procedures available to download from: https://bifa.org/information- guidance/technical-information/ good-practice-toolbox-bifa/
January 2025 | 15
www.bifa.org
Training
compliance team, we have also crafted a CDS compliance course. The first part is mandatory and based around an import home- use declaration. Then by the end of Q1, we will add additional regimes as optional modules covering a standard export, export processing and temporary admission amongst others.” Remote access Steve Parker, director general, added: “These training options will allow your staff, once registered, to access modules remotely, allowing employees to work at their own pace at a time convenient for everyone. Being included in your membership subscription, courses can be accessed without the delay and fuss surrounding approval of funds.” “We still have our popular BTEC qualifications and trainer led courses which, we all know, give a better and more in-depth learner experience compared with eLearning. “However, we believe that offering more alternative routes to access training is a significant step toward making each of your staff more professional.” You will be able to access this training via the member portal and we will provide further communication when appropriate.
Bitesize eLearning courses will be available to full Members this year. Courses will be accessed via the BIFA website Inclusive training for Members – coming soon
A s mentioned in the a variety of bitesize eLearning courses will be available to full Members this year. The courses will be accessed via the BIFA website by the end of January and there is no limit on learners per Member. Carl Hobbis, member services subscription renewal letters that went out in November,
director with responsibility for training, explained: “We have produced some short courses, based on extracts from our freight forwarding and Customs essentials courses, giving an overview of certain topics. The first batch of these will be available when the portal goes live. “Working with our policy and
Fear of cyber attack outweighs investment in supply chain security An article in the Loadstar recently caught our attention and we precis it here. The full article can be viewed by scanning the QR code
The authors of the white paper note that most supply chains operate on a broad mix of systems, which offers criminals multiple points of vulnerability to attack. The high level of concern apparently does not translate into a sense of urgency to take protective action with only 31% of the firms polled investing money in cyber security last year. At the very least, with or without investment in cyber security, companies need a response plan to spell out what to do in the event of an attack. Cybersecurity is a key topic for BIFA Members and will feature as a key session during the BIFA National Conference. To attend, book your tickets at https://bifa.org/event/bifa- national-conference/
Cyber-attacks targeting supply chains have surged 431% since 2021, according to a report published in November 2024 by insurance provider Cowbell. Based on three years of data from over 46 million SMEs across the US, UK and Japan, the OpenText Cybersecurity 2024 Global Ransomware Survey found that 73% of respondents had experienced
companies’ defences. In another survey, recently published in a white paper by Reuters and Cargowise, 94% of supply chain executives expressed concern over vulnerability in their technology stack, with 24% very or extremely concerned. Cyber security emerged as the second-biggest global risk in respondents’ eyes, trailing geopolitical tensions.
a ransomware attack in 2024. It is not only the volume of cyber-attacks that has risen, but also the quality. The OpenText survey noted that the new generation of threats were more targeted, and increasingly used AI in ‘phishing’ attacks to breach
16 | January 2025
www.bifa.org
BIFA Awards
Awards set to bring a sparkle to winter gloom
rowing success and the extreme adventures that he has tackled since his retirement from competitive rowing. The ceremony will culminate with the announcement of winners by the category sponsors and presentation of trophies. For the very first time, the winners will be invited to give a quick interview to BIFAlink TV and a post-event showreel will be released. There are a very limited number of tickets still available for the BIFA Freight Service Awards ceremony. If you would like to attend, please visit https://awards.bifa.org/request- tickets/ to book.
A s the Christmas festivities and promise of the New Year celebrations fade, with the cold, dark days of January stretching ahead, it is easy to think that the British winter will never end. However, the BIFA Freight Service Awards luncheon ceremony on the third Thursday of January always provides a spark of excitement in the darkness.
Representatives from the 39 BIFA member companies vying for the winner’s trophies will gather with their colleagues and guests to enjoy their moment in the spotlight as finalist certificates are presented ahead of a delicious three course luncheon. After lunch, ceremony host, James Cracknell OBE will take the stage to talk about his Olympic
Thank you The sponsors of the BIFA Freight Service Awards are hugely important to the success of the event and BIFA is grateful for their support year after year. The 2024 competition has been sponsored by:
Descartes www.descartes.com/home – Extra Mile Award
Port Express https://port-express.com/ – Ocean Services Award
Simpex www.simpex.co.uk/ – ceremony tickets
Albacore IT for Business
Descartes + Boxtop Technologies
Macbeth Insurance Brokers www.macbeths.co.uk/busines
s/specialist/marine- insurance/ – Project Forwarding Award
www.boxtop.net/ – Supply Chain Management Award
Albacore Systems www.albacore.co.uk/ – Staff Development Award
TT Club www.ttclub.com/ – European Logistics Award
American Airlines Cargo www.aacargo.com/index.htm l – Sustainable Logistics & the Environment Award
Descartes + Thyme IT www.thyme-it.com/ – Specialist Services Award
Maersk www.maersk.com/ – staging and lighting
Virgin Atlantic Cargo www.virginatlanticcargo.com /gb/en.html – Young Freight Forwarder of the Year Award
Elite Global Logistics Network www.elitegln.com/Home – table wines
MCP PLC www.mcpplc.com/ – finalists’ certificates
ASM (UK) www.asm.org.uk/en/home/ – contribution to host
Woodland Group www.woodlandgroup.com/ – Winners’ trophies
Menzies LLP www.menzies.co.uk/sector/tr ansport-logistics/ – Apprentice of the Year Award
CNS www.cnsonline.co.uk/cargoes / – ceremony programme
IAG Cargo www.iagcargo.com/en/home / – Air Cargo Services Award
January 2025 | 17
www.bifa.org
Member Engagement
BIFA Members attend the Heathrow regional meeting on 12 December 2024
Round-up of December events
T he final regional Member held in London East, Gatwick, Anglia, Avonmouth, Heathrow and Manchester. Each meeting had a packed agenda with speakers covering the new Safety & Security GB Entry Summary (ENS) declarations for goods arriving from the EU by road, development of the cargo terminal events for 2024 took place in December with meetings
at London Heathrow Airport, the potential for artificial intelligence (AI) in freight forwarding, and BIFA news from the policy groups (air, Customs, legal and insurance, surface and sustainable logistics), events and training. BIFA STC Review All Members are reminded of the current review of the BIFA
Standard Trading Conditions. To add your comments to the consultation visit https://bifa.org/2024/11/01/bifa- standard-trading-condition-2024 -25-review/. The consultation closes on Friday 7 February when all suggestions will be reviewed and shared with BIFA’s solicitors and BIFA Members assisting with the redrafting of the Standard Trading Conditions.
Support your local Member group
Region
Date
Venue
Kent & East Sussex
Wed 8 Jan Tue 14 Jan Tue 21 Jan Thu 30 Jan Tue 11 Feb Wed 12 Feb
Ashford Borough Council, Civic Offices
Midlands Liverpool
Birmingham Airport Hill Dickinson Solicitors
Solent
TBC
Yorkshire Humber
Cedar Court Hotel, Bradford
BIFA utilises a network of Regional Representatives around the UK to act as a conduit for the dissemination of information and to seek local Member views on topics of interest. Forthcoming meetings are listed here. All BIFA Members are encouraged to attend their regional meetings, however pre-booking is essential. If there is no event listed in your region see www.bifa.org/events for future dates or contact your local Regional
Hampton by Hilton, Humberside Airport
Representative: London West, the South & the South West – Paul Cunningham p.cunningham@bifa.org Scotland and the Borders – Chris Curtin c.curtin@bifa.org Northern England and the Midlands – Andrew Melton a.melton@bifa.org Anglia, London East & South East -
Paul Newman paul@pnauk.com Northern Ireland – Shauneen McConville shauneenm@tr- logistics.com BIFA Young Forwarders’ Network FREE networking and information events for younger team members, see www.bifa.org/events
Reporting Freight Related Crime to Border Force – Operations Pegasus and Pandora Please note that there are different numbers for air and ocean. Border Force has confirmed that all reports will be treated in the strictest confidence. Air Contact Numbers Tel: 0203 196 2456 (0700-2000) Tel: 0203 014 5604 (24-hours) Crimestoppers: 0800 555111 or 101 quoting reference Pegasus Ocean Contact Numbers Tel: 01394 303 116 (Office hours) Tel: 07920 587808 (24-hours) Quoting the reference Pandora.
BIFA Events
18 | January 2025
www.bifa.org
14 - 15 May 2025 The Slate, Warwick Conferences, Coventry BIFA National Conference
bifa.org/event/bifa-national-conference
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