BIFAlink January 23

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

January 2023 The magazine of the British International Freight Association BIFA link Issue: 389 www.bifa.org

INSIDE

6: News Recruiting for the future 8: Policy & Compliance Fuels of the future

Understanding General Average processes

12: Policy & Compliance The declarant’s liabilities under both Customs and excise laws 14: Policy & Compliance EU proposes new Euro 7 – will the UK follow?

– Pages 10-11

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Robert Keen’s Column

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Time to pass the baton

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

Web site: www.bifa.org E-mail: bifa@bifa.org

Welcome to 2023 and a new chapter for BIFA. Our new Director General has been chosen and I am pleased to welcome Steve Parker to the helm at the Secretariat. There will be a handover phase with Steve, but I anticipate that he will “hit the ground running” from day one. In cricketing parlance my last DG column sees me reach my century, being the 100th that I have written without a break since my first one in September 2014. Having been Director General for nearly eight years, I decided early last year that it was time for a change. My passion for the industry and my privileged role in representing BIFA members has not dimmed, but having joined the forwarding sector in 1970 I have clocked up 52 years and it is reluctantly time to pass the baton and for

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

r.windsor@bifa.org Executive Director Spencer Stevenson s.stevenson@bifa.org Executive Director Carl Hobbis c.hobbis@bifa.org Policy & Compliance Advisor – Customs Igor Popovics i.popovics@bifa.org Policy & Compliance Advisor – Air David Stroud d.stroud@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Communications Manager Natalie Pitts n.pitts@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org

fresh legs to undertake the next stretch. I am content that the association is in safe hands. I have known Steve for many years, initially at a rival forwarder before we both served as non-executive directors of the industry-owned software house Airport Bureau System at Heathrow. For the past few years Steve has been a non-executive director of BIFA and he was the National Chair from 2011 to 2013, so BIFA Members can be assured the new director general knows the ethos and aims of BIFA very well. There will be a profile of Steve in the February edition of BIFAlink . As for me, I am maintaining my role as secretary general of our global body FIATA until the end of my elected term, so I will remain associated with BIFA for a bit longer; but after the handover period life will be a little slower. Before I leave I have a project to investigate the many archive papers and industry artifacts we have at Redfern House and get them into chronological order to record the history of the association for posterity. I am looking forward to talking to some of the past chairs and industry elders to capture more about BIFA and the Institute of Freight Forwarders as well. Looking forward to 2023, we start the year without some of the big changes we have been through in the recent past. Import CDS seems to be settling down, much to the relief of Robert Windsor and his team who have grappled with EU Exit, CDS, the Northern Irish Protocol and many other legislative changes in the past few years. CDS for Export declarations is on the horizon, although December brought the news that HMRC has postponed the deadline for that move until 30 November, eight months later than previously announced. Nevertheless, this seems a good time to remind readers that our online CDS training course covers not only import CDS but export CDS as well. However, there are some other significant developments in the pipeline during 2023 and we anticipate ICS 2 will be a major topic together with CDS exports, the Single Trade Window and NCTS 5. In the maritime world, BIFA will be making representations to the Competition and Markets Authority as it prepares for the UK review of the Consortia Block Exemption Regulation. I started my work with BIFA in 1997 representing the BIFA Air Policy Group at FIATA in our battles with IATA. Twenty-five years on the battles remain and will be a large part of our policy and compliance work this year also. Finally, as anyone heading for retirement will tell you, your working life seems to pass in the blink of an eye. My memories of 1970 are still sharp, as is my recollection of my first day at Airport Courier Services walking around Heathrow from the airline sheds to the forwarders, and to the long room at Customs. Since then forwarding has given me many great memories and some great friends. I met my wife at Transglobal in the early 80s and even managed to get one of our sons to join the industry for a short while. We are part of a fantastic community and although our profile is often low, it is a sign that forwarders get on with the tasks at hand quietly, under the radar, which means that we are doing the job well.

Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors

Robert Keen, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Natalie Pitts, Igor Popovics, Brooke Neilson, Nezda Leigh 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

January 2023

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UK to invest £100 million in HGV roadside facilities Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business

geopolitical factors and rising inflationary pressures battering the larger economies. There are some 1,000 vessels already on order at various yards, while a few top carriers are close to signing fresh newbuilding contracts, according to market analyst Alphaliner. IN BUSINESS The International Transport Forum has published a study of actions to make deliveries in cities less disruptive and more sustainable. It focuses on the street space use of freight activities, as the way goods are distributed in urban environments profoundly affects metropolitan life. The study indicates that new partnerships, innovative methods, the use of data and intelligent space allocation are ways to ease the pressure on cities and their inhabitants. In early December, the European Parliament and EU states passed a law prohibiting the importation of certain commodities linked with global deforestation, meaning that companies will be obliged to provide documentation proving that their supply chains are not contributing to deforestation before goods will be allowed to travel into the EU.

OVERLAND The UK government has announced an investment of up to £100 million to improve roadside facilities for HGV drivers, with truck-stop and road service operators now able to bid for a share of the government’s £32.5 million match-funding pot. This is in addition to the £20 million match-funding launched earlier this year by National Highways to improve roadside facilities and security for lorry drivers. A new intermodal train service connecting DP World’s container terminals in the UK, at London Gateway and Southampton, is expected to boost the resilience of

the customers’ supply chains and enable them to switch volumes quickly and easily between the two UK locations. It will take up to 120 lorries a week off the roads and cut carbon emissions. A new IRU report shows that truck, bus and coach driver shortages in Europe are spiralling out of control,

a significant role to push average European road freight rates up again in Q3, according to the IRU, despite lower consumer spending. However, data from later in the quarter shows prices softening towards the end the period. IN THE AIR Freight forwarders are taking a ‘wait and see’ approach before making long-term air cargo capacity commitments, according to a market update issued in early December by CLIVE Data Services, part of Xeneta. Airlines saw demand drop 2% month-over- month in November 2022 as general airfreight volumes dipped for a ninth consecutive month, dashing hopes of a late peak season boost.

fuelled by increased transport demand and an ageing driver population. A growing chasm

between retiring and new drivers is set to triple the rate of unfilled truck driver positions to over 60% by 2026.

Diesel prices, driver shortages and drought in Europe have all played

ON THE OCEAN The US Federal Maritime Commission is preparing to

investigate more than 175 shipper complaints lodged against ocean carriers under the Ocean Shipping Reform Act of 2022, signed into law in 2022. It also unveiled preliminary guidance on how it would handle potential charge violations of the act. Global container volumes declined in the last few months of 2022 as the historic growth cycle comes to an end, according to BIMCO. In September 2022, box volumes dropped below the numbers recorded in the same month in 2019 for the first time since mid- 2020, with statistics released in December by Container Trade Statistics confirming the trend. The global containership orderbook is swelling, despite weakening trade signs amid the dual headwinds of adverse

ON THE QUAYSIDE The UK’s first freeports –

Plymouth, Solent and Teesside – are now fully up and running after receiving final government approval on 7 December. Each of them will receive £25 million of seed funding and potentially hundreds of millions of pounds in locally retained business rates to upgrade local infrastructure and stimulate regeneration. Port of Felixstowe is one of the first ports in Europe to introduce autonomous terminal tractor units (ATs) into mixed-traffic container terminal operations, with the first two battery-powered units entering

service having been by manufactured Westwell.

January 2023

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The future of our industry

Look out for these up and coming stars, finalists in the BIFA Freight Service Awards 2022 APPRENTICE OF THE YEAR AWARD FINALISTS

Cameron Smith

Jacob Kennerley

Elliot Haldane

Kelly Bell

Thomas Low

Joel Amado

YOUNG FREIGHT FORWARDER OF THE YEAR AWARD FINALISTS

Dalya Henry

Jordan Prangnell

Cheryl Sullivan

Jenna Speed

Kyle Lawrence

Thomas Frost

January 2023

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Recruiting for the future

individuals from its pool of jobseekers and, after a rigorous selection process, place them on a three-week ‘job-ready’ programme providing relevant skills that will help them succeed in the workplace. Successful candidates, at the end of the three-week programme, will attend a one-day BIFA training course covering the basics of freight forwarding and Customs, giving the individual an insight into the supply chain and some of the terminology involved. Only on completion of both elements detailed above will the candidate receive the Freight Development Pathway certification. At this point Manpower will introduce the candidate to BIFA Members who are looking to employ entry level staff through their normal recruitment service agreements. Find out more It is not too late to sign-up for the launch information events taking place on 10 and 24 January. Scan the QR code to register on the event of your choice.

BIFA went into partnership with Manpower in December 2022 to launch the Freight Development Pathway. The mainstream media is full of reports of staff shortages and skills gaps in various industries including transport and logistics. This situation is not unique to the UK but the lack of awareness of our industry, particularly among school and college leavers, is a concern and one that BIFA is seeking to address through this partnership. The scheme will be open to all jobseekers, regardless of age, who are not currently in the industry and who may not have considered a career in freight forwarding. Positive response BIFA Members have responded positively to the launch of the BIFA Manpower Freight Development Pathway (as detailed in the December issue of BIFAlink ) with around 80 individuals signing up

How it works As part of the Manpower Group, Manpower offers recruitment solutions across a range of industries including freight and transport and logistics covering office-based and operational roles. Manpower will identify suitable

for the first four information events delivered by BIFA and Manpower in November and December. If you missed the launch events last year, further dates have been scheduled for this month – sign-up at www.bifa.org/events to find out more about the scheme.

The Limits of Liability for Carriers

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outline to make Members aware of the initiatives, which are in all probability the first of many. In air, AF-KLM Cargo has launched a new way of offering sustainable aviation fuel (SAF) to customers by giving them an option of how much to use on each flight. It has introduced a ‘goSAF’ element to its booking portal, which can be set at one of four elements of contribution for each shipment, with an emission and cost calculator to help customers decide. Airlines are indicating that customers know something needs to be done but are wary of how much GHG emissions will be reduced by and the additional costs. SAF, which is in its infancy and not available globally, is four times as expensive as conventional aviation fuels. It is hoped that by giving customers the option of selecting an amount of SAF per flight, albeit at an increase in cost which might add 5% to 10%, this is seen as achievable. At the same time some airlines are already adding SAF to their aviation fuels. The amount may be small, between 0.5% and 1%, but it is seen as a step in the right direction. One of the biggest blockers to extending the use of SAF is refining capacity; it will be difficult to meet anticipated demand. In maritime we are seeing the development of sustainable biofuels and their use, particularly in the shortsea market. As in aviation, this is often mixed with conventional fuels. Bunkering arrangements are easier to establish on shorter routes with vessels more frequently returning to a specific port. Biofuels trials For instance, Samskip began biofuels trials in 2019, on board the 800 teu Samskip Endeavour as a routine part of services between the Netherlands and Ireland. This has now been extended, at the time of writing, to another three vessels. Initially using a biofuel blend achieved a 30% CO 2 reduction; more competitive pricing enabled the line to integrate a 100% biofuel from 2021, leading to a 90% reduction. These developments must be seen against the IMO’s 2030 target to cut greenhouse gas emissions from ships by 40%, with a 50% target set for 2050. Nobody is going to pretend that carbon reduction will be easy – it will not, it will be as big a change as the switches from sail to coal and then to oil as the motive power for ships. The elephant in the room is the cost, not just of producing the new fuel but also establishing the bunkering arrangements. One thing that has to be noted is that change has significant repercussions and the change to more sustainable fuels must not be achieved by creating negative environmental impacts elsewhere.

With ambitious targets in place to cut greenhouse gas emissions in the transport sector, BIFAlink takes a look at how changes in fuel are developing Fuels of the future

The transport sector is responsible for nearly a quarter of Europe’s greenhouse gas (GHG) emissions. In addition, this sector has proven difficult to decarbonise, having not shown the same decreases in GHG emissions since 1990 as other sectors. BIFA has maintained a watching brief on environmental issues over a period of time and has produced information as appropriate. The environment is a diverse subject; BIFA has for some time decided that it should focus on core subjects impacting its Members including low emission fuels and subjects such as waste, including packaging. Drivers of change Much is made of phrases such as ‘carbon neutral’ and ‘net-zero’; being realists, we believe that what will drive change will be the availability of new technology and consumer attitudes. It will need a reduction in consumer demand and a willingness to pay more for goods due to higher transport costs. We have seen the introduction of new fuels, but there have been some false starts. For instance Shell closed its three hydrogen filling stations due to a lack of demand, but the company emphasised that it would continue research in the potential use of the gas to fuel HGVs. Most organisations wish to portray a positive image; when something goes wrong a senior executive usually has to make a public apology. Similarly, fear of a negative reaction encourages the adoption of policies that it is hoped will find

public favour. For instance, the Ship It Zero campaign has recently heavily criticised Walmart for its failure to join in with emissions abatement measures, which would have included from our perspective the commitment to reduce emissions from its supply chains. This put the retailer out of step with three other large US retailers – IKEA, Amazon and Target – all of which have committed to decarbonising their supply chains by 2040. We have already

started to see banks favour sustainable investment, and now campaigners are

anticipating that the transition to carbon neutral supply chains will place pressure on carriers to shift to clean energy – in effect it will create zero emission demand. Whether it is a coincidence or not, since July 2021, Maersk has ordered 18 methanol-powered ships, and COSCO and CMA eight each. Also, in October, the European Parliament approved targets to cut the greenhouse gas intensity of energy in marine fuels under the Fuel EU Maritime Package. Reductions in energy – measured in grams of CO 2 equivalent per megajoule – begin at 2% from 1 January 2025, rising to 6% from 2030, 13% by 2035 and then five yearly increments thereafter to 80% by 2050. The curbs also require all containerships to connect to onshore power at berth for all port calls from 2030, unless they use zero emission technology. There have been developments in both the type of fuel available and schemes allowing users to pay for them. We would like to examine these in

January 2023

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2022 saw ASM successfully support nearly 500 organisations through the challenging migration of import customs declarations to the new Customs Declarations Service (CDS). Users of Sequoia have now processed over one million live CDS declarations and counting, whilst continuing to have access to CHIEF declarations and the CDS test (TDR) environment during the migration period.

In what will be another challenging year, the focus is now switching to the migration of exports to CDS and the significant changes to transit movements under NCTS Phase 5, both of which will happen in 2023. You can rest assured we will be here to support all of our customers through these changes as well.

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Understanding General Average processes

Although General Average is something that will be infrequently encountered, it is important that Members have a clear understanding of the process and their general responsibilities

While most people directly involved in the freight supply chain will have an awareness of the principles of General Average, they might struggle to explain them to customers. General Average (GA) is a global legal principle of maritime law, dating back many hundreds of years, under which all interested parties to a ‘maritime adventure’ proportionally share any losses or expenses resulting from a voluntary and intentional act on the part of the ship or cargo in order to save the remainder in an emergency. The concept of ‘maritime adventure’ sounds quaint but describes the total group of stakeholders involved in the voyage. Typically, GA losses are relatively infrequent, but have in recent years resulted in greater impact to beneficial cargo owners (BCO) and freight forwarders, in part because container ships have continued to increase in size. Hundreds of years ago, a cargoship might have had 20 interested parties on board; today on the largest containerships there could easily be tens of thousands of interested parties aboard a single ship. This makes administering general average claims both time- consuming and complex – it is not uncommon for adjusters to take many years to settle all the claims. GA is the system whereby a party to the adventure (most often the shipowner) can recover the extraordinary expenses/sacrifices that are necessarily incurred following a maritime incident, such as happened when the Ever Given grounded in the Suez Canal during 2021, in protecting the cargo and/or preserving the ship. The parties who would typically contribute in a GA loss would be: the shipowner, the beneficial owner of the cargo on board, the owners of any bunkers and stores aboard the ship, and finally the owner of the containers and carrying equipment on board, all in proportion to their value. Recognising that GA losses are each having a greater impact (due to increased containership capacity), coupled with a lack of understanding of the processes involved, TT Club has published a new guidance document titled Demystifying General Average . The guidance aims to outline the process in a logical chronological order. It provides a transparent review of the concept of GA, what it is, the purpose it serves, which parties are impacted and how. Because GA losses are infrequent, a freight forwarder or BCO might never have to deal with one of these cases. The process is complex and, where cargo insurance is not in place, can be expensive for the BCO. If the concept and processes

are not well understood, it could come as quite a surprise when a request for security is made.

The concept of security for the loss In practice, the first that the BCO, freight forwarder or NVOC might learn of a GA event is often the request for security from the General Average adjuster. The request for payment or a guarantee may cause confusion. In order to ensure that payment will be received, the adjuster requires each party interested in the voyage to provide a GA bond as security. Since this is done at the outset, before the full value of the loss is known, the adjuster will necessarily estimate the size of the loss and level of the guarantee required. A GA bond is a promise to pay whatever contribution will later be assessed by the adjuster, backed up by a GA guarantee from a bank or insurance company. Alongside this, the General Average adjuster will request landed values of carrying equipment, and bills of lading and commercial invoices detailing CIF values for cargo in order to work out the contributions for all interested parties. Ordinarily, where BCO interests are concerned, the General Average adjuster will identify the interested parties through a review of the bills of lading issued by the carriers. The global supply chain, however, is complex and it is not uncommon for an initial request to be made to a freight forwarder or NVOC in error. In such circumstances, the freight forwarder or NVOC should pass the demand immediately to its customer. Ensure the correct insurance cover is in place The process can become problematic for a BCO who does not have cargo insurance in place. It is estimated that over 50% of consignments are transported through the global supply chain without cargo insurance. Standard marine cargo insurance policies cover the costs associated with GA losses. In the event of a GA loss, the cargo insurer will typically take over the process for the BCO, ensuring that the required securities are placed, and that the cargo will be released at destination. Where cargo insurance is not in place, it falls to the BCO to respond to the request and provide sufficient security. In such circumstances, the BCO should not ignore the request; it is prudent to act quickly to resolve the matter and arrange security. Failure to do so will result in the cargo being held from release at the destination port, with the risk that a lien is held over the cargo to satisfy the due costs.

TT Club – demystifying General Average

January 2023

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General Average was declared after the Ever Given grounded in the Suez Canal during 2021.

It is prudent to ensure that cargo insurance is in place – the costs following a GA incident can be significant

In order to protect BIFA Members, Clause 20 (d) of BIFA’s STC deals with the situation where a Member finds itself liable for a GA claim for contribution either as a shipper or consignee, where it is mentioned on the bill of lading. However, liability for the General Average contribution should fall on the cargo owner who is the party responsible for arranging the relevant cover from their cargo insurer. Clause 22 of the BIFA STC clearly places responsibility for promptly providing proper security for goods subject to General Average on the customer. Conclusion While infrequent, the risk of GA losses should not be overlooked. It is prudent to ensure that cargo insurance is in

place – the costs following a GA incident can be significant. The final General Average demand in a recent case exceeded 60% of contributory values. As GA is something that will be infrequently encountered, it is important to ensure that Members have a clear understanding of the process and their general responsibilities. Also, Members should fully understand requests being made of them and the repercussions should the process not be followed.

BIFA would like to thank the TT Club for allowing BIFA to re-use information included in this article

January 2023

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The declarant’s liabilities under both Customs law and excise law

Guidance on the difference between a declarant’s liabilities under Customs law and excise law

Brexit, in many ways, has increased the risks for declarants when making Customs declarations. Many more Customs entries have to be submitted and certain trades, by their very nature, attract more severe penalties. HM Revenue & Customs (HMRC) pays particular attention to excise fraud and because of the amount of wines, spirits and petroleum goods imported from the EU, such movements are carefully scrutinised. Excise goods are covered by specific legislation in addition to general Customs-related processes. This is reflected in the BIFA STC which cover all goods, not just excise goods. Clause 7 of the STC empowers any BIFA Member to act as a Direct Customs Representative. When read in conjunction with the definition of ‘Direct Customs Agent’ in clause 1, it clearly states that Direct Customs Representation is only applicable to the following legislation: “The Company acting in the name of and on behalf of the Customer and/or Owner with HM Revenue and Customs as defined by the Taxation (Cross Border Trade) Act 2018, Clause 21.1(a), or as amended.” Excise-related goods For excise-related goods, the Holding and Movement Duty Point Regulations 2010 are also applicable and Section 12 (1) is relevant and has an effect on the general position of Direct Representation. The text of this section is reproduced below. “Goods released for consumption in the United Kingdom – persons liable to pay 12 (1) The person liable to pay the duty when excise goods are released for consumption by virtue of regulation 6(1) (d) (importation of excise goods that have not been produced or are not in free circulation in the EU) is the person who declares the excise goods or on whose behalf they are declared upon importation.

(2)In the case of an irregular importation any person involved in the importation is liable to pay the duty. (3)Where more than one person is involved in the irregular importation, each person is jointly and severally liable to pay the duty.” This clause 12 imposes specific legal responsibilities on specific entities involved in the importation of excise goods. It would not be appropriate to contain a provision in the BIFA STC to cover this clause as it only relates to excise goods and not all Members deal in excise goods. The Holding and Movement Duty Point Regulations 2010 are specific regulations dealing with goods released into the UK and the duty point when tax is payable. Clause 12 (1) relates to excise goods released for consumption in the

UK and liability to pay. If the goods are not in free circulation but have been released (ie, the excise duty has not been paid when it should have been paid), then the liable party is the declarant or the party on whose behalf they act, and each party is liable to pay that duty jointly and severally – in other words both are liable together and HMRC may recover from both in shares of the sum due or one of them the total sum due. HMRC tends to pursue the party who made the declaration unless that party can show someone else is ready to pay. However, it is still important for forwarding companies to continue to obtain a Direct Representation Authorisation in relation to excise goods being declared. In law, when making a Customs declaration, the import agent must declare itself as either a direct or indirect representative, as whenever entries are made the

January 2023

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signing party must identify the capacity in which it signs. If it does not hold an authority to act as claimed, HMRC may decide that it is “self- representing” and thus fully liable for any debt. Direct Representatives are not normally liable for payments to HMRC, or fines, unless the goods are excise goods and there has been an irregular importation under the above-mentioned regulations. This is because the duty point is in the UK as goods are bonded and it is the party in the UK handling that importation who is seen as the party with primary liability, though it is shared with the importer. It is that party’s duty to ensure no release of the excise goods within the UK until duty has been paid and liability for wrongful release is joint and several with the importer. Clarification examples It is hoped that the following examples will clarify the situation: • The import agent (declarant) brings an import consignment of 80 cases of wine into the UK, entering the goods for consumption in the UK. At the point of clearance into the UK the

goods are released from bond and the Customs agent and importer become jointly and severally responsible for the debt if it has not been paid, as the release is wrongful. • The same shipment arrives, and the import agent is instructed to enter the imported wine to Customs warehousing. The declarant’s liabilities are discharged once they are accepted at the Customs warehouse, if that is the point of delivery. The warehouse keeper is now responsible to ensure that the 80 cases of wine are not released until all Customs procedures have been completed. Wording in the authorisation agreement to act as Direct Representative can ensure financial protection for the forwarder against all debts, subject to overriding legislation such as The Holding and Movement Duty Point Regulations 2010. Similarly, it is important for Members to have incorporated the current BIFA STC as Clause 20 (A), The Indemnity Clause, would protect Members, so long as they have been following their clients’ instructions.

However, it is important to note that Clause 20 (A) does not afford protection where the Member’s negligence or error or omission is involved in the wrongful entry of excise goods into the UK. For example, if a driver refuses or fails to stop to present Customs documents then liability for unpaid taxes and penalties may become the Member’s responsibility. Know your customer In the final analysis, much rests upon ensuring that Members ‘know their customer’ and the appropriate suppliers and contractors, risk assess each shipment for each potential liability, and give clear instructions, preferably in writing, to parties acting on the Member’s behalf. Every shipment involves some risk; it is important to assess whether the business being done warrants that risk. In particular, for excise shipments, it is important for Members to control as much of the movement as possible, conduct stringent due diligence on their customers, and work with trusted and reliable suppliers in order to minimise risks.

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6) and lorries and buses (Euro VI). The Euro 7 standards bring emission limits for all motor vehicles – cars, vans, buses and lorries – under a single set of rules. The new rules are fuel- and technology-neutral, placing the same limits regardless of whether the vehicle uses petrol, diesel, electric drive-trains or alternative fuels. They will help to: • Better control emissions of air pollutants from all new vehicles: by broadening the range of driving conditions that are covered by the on-road emissions tests. These will now better reflect the range of conditions that vehicles can experience across Europe, including temperatures of up to 45°C or short trips typical of daily commutes. • Update and tighten the limits for pollutant emissions: limits will be tightened for lorries and buses while the lowest existing limits for cars and vans will now apply regardless of the fuel used by the vehicle. The new rules also set emission limits for previously unregulated pollutants, such as nitrous oxide emissions from heavy-duty vehicles. • Regulate emissions from brakes and tyres: the Euro 7 standards rules will be the first worldwide emission standards to move beyond regulating exhaust pipe emissions and set additional limits for particulate emissions from brakes and rules on microplastic emissions from tyres. These rules will apply to all vehicles, including electric ones. • Ensure that new cars stay clean for longer: all vehicles will need to comply with the rules for a longer period than has been the case until now. Compliance for cars and vans will be checked until these vehicles reach 200,000 km and 10 years of age. This doubles the durability requirements existing under Euro 6/VI rules (100,000 km and five years of age). Similar increases will take place for buses and lorries. • Support the deployment of electric vehicles: the new rules will regulate the durability of batteries installed in cars and vans in order to increase consumer confidence in electric vehicles. This will also reduce the need for replacing batteries early in the life of a vehicle, thus reducing the pressure for new critical raw materials required to produce batteries. • Make full use of digital possibilities: Euro 7 rules will ensure that vehicles are not tampered with, and emissions can be controlled by the authorities in an easy way by using sensors inside the vehicle to measure emissions throughout the lifetime of a vehicle.

Thierry Breton, European Commissioner for Internal Market, discusses Euro 7 standards at a press conference in Brussels on 10 November

EU proposes new Euro 7 – will the UK follow?

The new Euro 7 standards will ensure cleaner vehicles on the roads and improved air quality, protecting the health of citizens and the wider environment

Whilst the UK is no longer a member of the EU, legislative changes in the union can impact on the UK. On 10 November 2022, the Commission presented a proposal to reduce air pollution from new motor vehicles sold in the EU to meet the European Green Deal’s zero-pollution ambition. These changes will potentially impact UK businesses, either by influencing similar developments here or because businesses have to operate vehicles on the EU mainland. Road transport is the largest source of air pollution in cities. The new Euro 7 standards will ensure cleaner vehicles on the roads and improved air quality, protecting the health of citizens and the wider environment. Euro 7 standards and CO 2 emission standards for vehicles work hand-in-hand to deliver air quality for citizens. Notably the increased uptake of electric vehicles also creates certain air quality benefits. The new Euro 7 emission standards will ensure that cars, vans, lorries and buses are much cleaner, in real driving conditions that better reflect the situation in cities where air pollution problems are largest, and for a much longer period than under current rules. The proposal, in

addition to tackling emissions from tailpipes, sets limits for emissions from brakes and tyres. It also contributes to achieving the new stricter air quality standards proposed by the Commission on 26 October 2022. While CO 2 emission rules will drive the deployment of zero-emission vehicles, it is important to ensure that all vehicles on our roads are much cleaner. In 2035, all cars and vans sold in the EU will have zero CO 2 emissions. In the UK, the sale of petrol and diesel cars will be banned from 2030 and hybrids from 2035. However, even in 2050, more than 20% of cars and vans and more than half of the heavier vehicles in the UK, are expected to continue to emit pollutants from the tailpipe. Battery electric vehicles are not the complete answer as they still cause pollution from brakes and microplastics from tyres. Euro 7 rules will reduce all these emissions and keep vehicles affordable to consumers. The new requirements based on the Euro 7 standards: The proposal replaces and simplifies previously separate emission rules for cars and vans (Euro

January 2023

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Policy & Compliance

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Kyle Lawrence

Georgia Sumner

Alfred Pryke

Apprentices: living proof that apprenticeships are working

What advice would you give to employers considering recruiting an apprentice? Give a young person a chance; an apprentice could be the future of your business. Kyle Lawrence, OIA Global, London What stage of your apprenticeship are you at? I finished my apprenticeship in 2019, so one of the first to complete it. How has your career progressed? I have progressed into full time employment and, recently, became the youngest ever supervisor at OIA Global, my current employer. I have had some good mentors along the way, which is vital. What is your proudest achievement? Five years ago, I was a finalist for Apprentice of The Year. In 2022, I was also asked to join the BIFA Council as recognition to my service to the Young Forwarder Network. If you could sum up your experience in three words, what would they be? Fun, challenging, rewarding. What advice would you give to employers considering recruiting an apprentice? I support apprenticeships as it gives employers the opportunity to take on a new employee who is a blank canvas that they can mould. What would you say to someone considering an apprenticeship in logistics? Consider an apprenticeship, you are provided with a structured programme, you can earn while you learn and potentially gain a full-time job at the end of it. There is also a good chance you will receive a recognised qualification as well.

With a proven pathway to futureproof your workforce, get out now to promote the great opportunities available in the logistics industry

Georgia Sumner, DHL, Birmingham How did you get into logistics? I had a few seasonal jobs and worked part-time in Costa. But, having grown up with my mum working in logistics it seemed like the natural route to take. The apprenticeship provided me with a perfect opportunity to gain a qualification, which I completed in June 2022. What area of the business do you work in and describe a typical day? I work on the customer specialist team, focusing on one main account. It is always busy and fast paced as I work in airfreight, but never the same. I am learning new parts of the business all the time, which I enjoy. What is your proudest achievement? Speaking on a panel at Multimodal about the next generation in logistics. Help promote your industry We urge all BIFA Members to do something for either National Apprenticeship Week (6-10 Feb) or National Careers Week (7-12 March) within their local community. If you need ideas, you can visit the BIFA website https://apprentices.bifa.org/ where you can find several resources to assist you. Please let us know what you are up to by emailing Nezda Leigh at n.leigh@bifa.org and we will showcase your activity across BIFA’s social media.

With National Apprenticeship Week taking place at the start of next month (6-10 February) we talk to three young people who have taken the apprenticeship pathway but are at different stages of their career. Alfred Pryke, Momart, London What stage of your apprenticeship are you at? I only started in July 2022, so I am currently five months into it. I work in the shipping department and my job is to deal with Customs entries for import and export shipments on a range of modes, but typically road and air. Why did you choose logistics? I chose logistics because I saw an industry in need of some youth that is crucial to the world running as we know it. It will always be needed and having such an infinite number of job opportunities and types within it was something that greatly interested me. Tell us about the best parts of the job? The best part of the job is the sense of community that I have found; this industry is full of welcoming friendly people with a diverse set of skills who want to help you progress. This is something I find extremely encouraging in the job. What advice would you give to employers considering recruiting an apprentice? I would say that it is a brilliant way to integrate youth into your company and make a necessary difference in what will otherwise become an ageing industry.

January 2023

Legal Eagle

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Know your BIFA Standard Trading Conditions 2021: Clause 8 part 3, Clause 8 (B)

CLAUSE 8 (B) When the goods are liable to perish or deteriorate, the Company’s right to sell or dispose of or deal with the Goods shall arise immediately upon any sum becoming due to the Company, subject only to the Company taking reasonable steps to bring to the Customer’s attention its intention to sell or dispose of the Goods before doing so. COMMENT ON CLAUSE 8 (B) Clause 8 (A) (ii) of the BIFA 2021 STC confers the right to sell or dispose of goods on giving at least 21 days’ notice, which is a very reasonable and generous time scale. However, in the case of perishable goods or those likely to deteriorate, such a time scale would be useless and so Clause 8 (B) confers the right to sell or dispose of such goods immediately upon sums becoming due, provided that reasonable steps are taken to draw the defaulter’s attention to the intention to sell before doing so. Caution! Under S.8 of the Food Safety Act 1990 it is a criminal offence to sell or offer for This month we come to the end of Clause 8, which covers liens. We probably get more calls on this topic than any other at the secretariat and this article should be read in conjunction with the previous two BIFAlink issues

sale food that fails to comply with food safety requirements and the punishment can be a fine, a custodial sentence, or both. Clause 8 (B) gives by contract, the right to sell perishable goods when a lien is being exercised. No such right exists at common law and the only alternative remedy would be for the BIFA Member to make an application for a Court Order under Part 25.1 (1) (c) (v) of the Civil Procedure Rules, which came into force in 1999 and which states: “The court may grant the following interim remedies... an order... for the sale of relevant property which is of a perishable nature or which for any other good reason it is desirable to sell quickly”. The granting of such an Order is

discretionary. This facility may be sought when the goods are not perishable or likely to physically deteriorate but are likely to substantially lose their value or the whole point of their production within a short time and in less than the time needed to give at least 21 days’ notice. Liens are also covered in the BIFA Good Practice Guide, A Guide to Exercising a Lien Using the BIFA Standard Trading Conditions (BIFA STC). This is one of many good practice guides that can be found on the BIFA website www.bifa.org > INFORMATION > GOOD PRACTICE TOOLBOX Always remember that it is prudent to engage the services of a solicitor when applying a lien.

They have a vacancy for a Logistics Risk Manager based in London.

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international transport and logistics industry.

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To apply for this role email: recruitment@thomasmiller.com

www.ttclub.com

January 2023

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BIFA Awards

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Celebrating BIFA’s finest

The team from Hemisphere Freight Services celebrate the Extra Mile Award, January 2022

This month sees the 34th annual BIFA Freight Service Awards ceremony luncheon at the Brewery in central London. Over 540 guests will attend the sold-out event for a celebration of the finest BIFA Members. Open to all full trading Members of BIFA, regardless of number of offices, number of employees, kilos of freight handled or length of trading, the BIFA Freight Service Awards invites entries to a range of categories in the summer each year. After the closing date, all submissions are reviewed and a shortlist of finalists (https://awards.bifa.org/finalists/finalists-2022) for each category is announced who then go on to compete for the sponsors’ trophies. At the BIFA Awards 2022 luncheon, all 46 finalists will receive their certificates from Sir Peter Bottomley MP, BIFA President, and ceremony host Kevin Keegan MBE. This issue went to press one day after a thrilling World Cup final between Argentina and France, and we are sure that Kevin will comment on that final, the tournament in general, and on the performance of England and Wales in his own inimitable way after lunch. Announcement of winners Following the host’s speech, it will be time for the category sponsors to take centre stage to make the winner announcements. BIFA is grateful to the following companies for their support of the BIFA Freight Service Awards in 2022: • Albacore Systems – sponsor of the Staff Development Award • American Airlines Cargo – sponsor of the Cool & Special Cargoes Award • Boxtop – sponsor of the Supply Chain Management Award • Descartes – sponsor of the Extra Mile Award • IAG Cargo – sponsor of the Air Cargo Services Award • Macbeth – sponsor of the Project Forwarding Award • Port Express – sponsor of the Ocean Services Award • Seetec Outsource – sponsor of the Apprentice of the Year Award Over 540 guests will attend the sold-out celebrations hosted by Kevin Keegan

• Thyme IT – sponsor of the Specialist Services Award • TT Club – sponsor of the European Logistics Award • Virgin Atlantic Cargo – sponsor of the Young Freight Forwarder of the Year Award

Save the date If you missed the deadline to enter the BIFA Freight Service Awards in 2022, make a note that entries will open in June for the BIFA Awards 2023 competition, with submissions due by Thursday 5 October. If you think that you have a great story that deserves an award, make sure that you tell us about it – we cannot judge it if you do not enter. As well as a great day out at the ceremony, all finalists and winners benefit from extensive publicity around the event and reap the benefits into the future.

And, ceremony sponsors: • ASM UK • CNS UK • Forward Solutions • MCP PLC

• Simpex Express • Woodland Group

Category Sponsors

Ceremony Sponsors

January 2023

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