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 2024 BIFA link Incorporation of the BIFA Standard Trading Conditions
INSIDE: Post-Brexit border checks • CDS and tokens • Spring Budget consultations • Know your BIFA STC • Awards category sponsors • Regional meetings
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Issue: 401
Steve Parker’s Column
What bringeth the New Year? L et me start 2024 by being one of the fi rst to wish everyone a Happy New Year. On a personal level, I hope 2024 sees you all in good health and ready for the year ahead. On a business level, I trust it looks positive, with volumes and profits improving.
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 Advisor – Customs Igor Popovics i.popovics@bifa.org Policy & Compliance Adviser – Sustainable Logistics Mike Jones m.jones@bifa.org Policy & Compliance Advisor – Air David Stroud d.stroud@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org Web site: www.bifa.org E-mail: bifa@bifa.org Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors Steve Parker, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Igor Popovics, Robert Keen, Denise Hill, Mike Jones 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.
I know from the economic forecast I see, and anecdotal evidence I get, that for many of our Members 2023 was more difficult than we would have liked. It is clear our industry is resetting following both Brexit and the pandemic. What I sense from all this is that the beginning of 2024 will be a time of stabilisation for us, and then, as the UK financial situation improves and we get an election out of the way, we kick on towards the end of the year and into 2025.
Resolutions As we enter 2024, I wonder what we as your association can do to help you be more successful? To give it a new year feel, what resolutions could we make to support our industry and bring a brighter outlook? During 2023 we had some successes. Our Member engagement has grown; the business leaders forum is up and running; we held the first meeting of our Sustainable Logistics Policy Group; we had positive news on the Consortia Block Exemption Review; and our training continues to attract good numbers of attendees (you might like to know we trained 1,001 people in 2023). In 2024, we plan to push all those topics with perhaps a bit of emphasis on training. As you know there are moves for a Voluntary Standard of Competence for our sector, and we are adding to the debate on this topic and watching the developments carefully. We are not sure what the outcome of this will be, but the direction of travel is for staff who are fully trained. We can support you with this and want to ensure we do so efficiently with the least business disruption possible. We are certainly starting the new year with a bang. With the next (and final) stage of migration from CHIEF to CDS for exports imminent, we are holding a seminar on Tuesday 9January in conjunction with ASM, which will provide an important update on what BIFA Members need to do to prepare to give you the best chance of successfully migrating. We will also discuss the revised timescale for the migration. Starting from January 2024, we will have a brand-new course as part of our one-day essential portfolio. Introduction to Freight is a practical course for beginners that will provide learners with a good foundation in the processes involved when importing and exporting goods. We want to serve BIFA Members as best as we can. Perhaps some of you could make it a resolution to attend one of our many meetings (whether regional, or policy group) and help us shape the direction of our industry. Awards I just wanted to update you on this, our chance to celebrate the great work of our industry. The awards ceremony is sold out with more people attending than ever before. We have worked hard with the Brewery (the home for the awards for 35 years) on squeezing a few more in. Suzi Perry “queen of the pit lane” is our guest and will bring some great insights from the world of broadcasting. I look forward to seeing many of you there, if you are at the bar mine is coke zero!
Director General
January 2024 | 3
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BIFA News
ABP buys land to target commercial opportunities Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
Exporting Excellence, a new report on the UK’s exporting businesses commissioned by Heathrow Airport, has found that a “shortage of exporting skills” and the complexity of Customs procedures are limiting the nation’s potential. It concluded that putting sustainability “at the heart of trade and export policy” should be part of a strategy to “maximise the UK’s strengths and counter its weaknesses” on global markets. Freight insurance specialist TT Club is urging procurement managers to be more vigilant in ensuring that they are not unwitting receivers of stolen property. It said they should check the provenance of all incoming goods and ensure that documentation such as bills of sale, invoices and shipping records are present. In early December, risk management solutions company Overhaul released its 2024 predictions on cargo theft trends, following a year marked by a significant increase in global strategic theft. It suggested that while cargo thefts increased 57% year over year in the second quarter of 2023, strategic thefts tripled, an indication that the number of thefts will continue to climb. OVERLAND Freightliner, one of the UK’s largest movers of containers by rail, has called on the government to set a target to treble rail freight volumes by 2050. It claims that, if achieved, this would result in over 20 million HGV journeys being removed from the motorways each year. IN THE AIR The air cargo market has undergone a “fundamental shift” to e-commerce over the last few months, which has helped support increases in airfreight rates, said Neil Wilson of airfreight rate data provider TAC Index, with general cargo volumes remaining soft.
ON THE QUAYSIDE Associated British Ports (ABP) has exchanged contracts on the purchase of the freehold of a 227.5-acre site known as Stallingborough Interchange next to the A180. Located two miles from the port of Immingham and six miles from the port of Grimsby, it is earmarked for commercial port opportunities including automotive, bulk warehousing, distribution and logistics uses, advanced manufacturing and green energy initiatives. ON THE OCEAN Media reports suggest that Hapag-Lloyd has unveiled a newbuilding concept design of a ship with a capacity of 4,500
Hapag-Lloyd’s sail containership concept
teu featuring eight sails with a total sail area of 3,000 sq m. The six rear sails are extendable and the front two retractable. The chief executives of leading global shipping lines issued a joint declaration at COP28
calling for an end date for fossil-only powered newbuilds. They urged the International Maritime Organisation (IMO), the global regulator, to create the regulatory conditions to accelerate the transition to green fuels. Hong Kong consultancy Linerlytica suggested late last year that container shipping lines were struggling to achieve the General Rate Increases (GRIs) that they had tried to impose amongst the increase in capacity and persistent low demand. This led the consultancy to predict that there will be greater capacity management and more cancelled sailings. The International Transport Intermediaries Club (Itic) has raised concerns about the financial impact of the EU’s Emissions Trading Scheme (ETS) on the shipping industry, predicting that costs could According to Straits Research, the global freight forwarding market was valued at USD210.07 billion in 2022 and is projected to reach USD314.88billion by 2031 – a compound annual growth rate of 4.6% during the forecast period (2023-2031). reach billions. IN BUSINESS
4 | January 2024
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Industry News
Get ready for the start of full Ireland-UK Customs control
In August 2023, the Border Target Operating Model (BTOM) revealed a signi fi cant development affecting the movement of goods directly from the island of Ireland to Great Britain. From 31 January 2024, the UK will implement full Customs controls for goods moving directly from ports in the Northern Ireland). This move is part of a comprehensive plan outlining the new approach to importing goods into the UK from the EU and protecting Northern Ireland’s status in the Union. The BTOM aims to ensure that Northern Ireland businesses enjoy uninterrupted access when transporting Qualifying Republic of Ireland (not moving from or through
processes if they are: • Non-Qualifying Northern Ireland goods; • Excise goods (alcohol, tobacco, and energy products) or; • Goods which do not move directly to an Irish port once they have left Northern Ireland, for example goods that are held in storage in the Republic of Ireland. Starting 31 January 2024, non-qualifying goods face tighter Customs controls and will require pre-notification and certification when moving directly from the Republic of Ireland to Great Britain. However, Northern Ireland ports’ procedures for such goods remain unchanged. Safeguarding QNIG, ensuring seamless movements both directly and
indirectly to Great Britain via the Republic of Ireland is one of the main priorities of the BTOM. To maintain this access, food and feed products must be owned or processed by a registered Northern Ireland business. In summary, businesses involved in the movement of goods from the island of Ireland to Great Britain should carefully review and prepare for the upcoming changes outlined in the Border Target Operating Model. More information is available by scanning the QR codes.
Northern Ireland Goods (QNIG) to Great Britain. This exemption extends to direct movements from Northern Ireland or indirect routes via the Republic of Ireland. Goods moving from Northern Ireland to Great Britain through Irish ports will also have to complete import
BIFA news
GOV.UK BTOM
NEW London East Charity Spring Ball
drinks), fundraising raffle and auction, and dancing to live music from the band Hit Parade. Sponsors BIFA would like to thank DP World London Gateway and Uniserve for their sponsorship. If you are interested in sponsoring the event, please contact Sharon Hammond (s.hammond@bifa.org) Appeal Are you able to offer an auction lot to support the selected charities? Contact Sharon Hammond (s.hammond@bifa.org) with details of your offer. Tickets Tickets are now on sale at £95.00 + vat per person. Go to https://bifa.org/events/ to book.
A brand-new event is being added to the BIFA calendar, book now to reserve your seats The London East Regional Committee is delighted to announce the inaugural, black-tie, London East Charity Spring Ball which will take place on Friday 22 March at Stockbrook Manor Country Club, near Billericay, Essex. Many BIFA Members are familiar with the annual Liverpool Region Charity Dinner which is well attended by personnel from near and far, selling out every year. BIFA London East Regional Chair, Scott Baker of Uniserve, and Lexi Leybourn of DP World hope that this new event will prove just as popular for networking in a social environment and the opportunity to raise much needed funds for local charities, the Karis May Darling
Foundation and Thurrock Foodbank. Don your best suit or some sparkles and high heels to enjoy a night to remember.
The evening will commence with a drinks reception followed by a three-course meal with drinks included (house wine, house beers, soft
6 | January 2024
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Industry News
Post-Brexit border checks commence this month
UK permits fi rst transatlantic SAF fl ight A Virgin Atlantic passenger jet powered by 100% sustainable aviation fuels (SAF) took off from London Heathrow to New York on 28 November 2023. The groundbreaking flight was approved by the UK regulator, the CAA, and was an initiative aimed at testing and demonstrating the feasibility of powering aircraft by SAF. The aviation industry is particularly difficult to decarbonise, but SAF are seen as the most effective way to help airlines bring their net emissions down to zero. SAF can be made from a variety of sources, including crops, household waste and cooking oils. They produce lower carbon emissions than traditional aviation fuel. They are already used in small amounts, blended with traditional jet fuel, but account for less than 0.1% of the aviation fuel consumed around the world. For this flight, a Boeing 787 was filled with 50 tonnes of SAF. Two types were used, with 88% derived from waste fats and the rest from the wastes of corn production. The UK government plans to require 10% of aviation fuel to be SAF by 2030.
Post-Brexit border checks on goods entering Britain from the EU will go ahead as planned this month, the government has stated. The Border Target Operating Model (BTOM) will implement controls through three major milestones: • 31 January 2024: The introduction of health certification on imports of medium risk animal products, plants, plant products and high risk food (and feed) of non-animal origin from the EU. ● 30 April 2024: The introduction of documentary and risk-based identity and physical checks on medium risk animal products, plants, plant products and high risk food (and feed) of non- animal origin from the EU. ● 31 October 2024: Safety and security declarations for EU imports will come into force from 31 October 2024. Alongside this, government will introduce a reduced dataset for imports and use of the UK single trade window will remove duplication where possible across different pre-arrival datasets. In addition to these dates, there are other important dates in the purely Customs arena for Members to monitor.
From 1 July 2024, Members will have to submit NCTS declarations via the new NCTS 5 system. This has certain specific differences compared with NCTS 4. There will: • No longer be a requirement to print and provide drivers with a paper copy of the Transit Accompanying Document (TAD). • Be the introduction of the ‘Office of incident’. • Be a requirement to submit Customs commodity (HS) codes as part of the declaration. • Be the ability to amend pre- lodged NCTS declarations. The implementation dates for the Customs Declaration Service for Exports in the UK need to be monitored. Given the history of CDS Imports, there has to be a very real concern regarding possible slippage for the dates. In Europe, to compensate for a difficult introduction of the Import Control System 2 in the
air environment, there are significant changes to the enactment schedule of the new Safety and Security regime referred to as Import Control System 2 (ICS2) where a number of national and carrier derogations have been introduced in order to allow for an extended administrative introduction . This has led the European Commission to re-schedule the timeframe for introducing ICS 2 in the surface modes. The amended dates are as follows: • Maritime carriers: from 3 June 2024 to 4 December 2024. • Maritime house level filers: from 4 December 2024 to 1 April 2025 The implementation date for road and rail has been delayed from 1 April 2025 to 1September 2025. These dates are correct at time of going to press and BIFA will advise Members of any changes to these dates.
The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £18.02 per kg
By sea – Hague Visby rules (2 SDR): £2.12 per kg £706.70 per package
BIFA STC: (2 SDR): £2.12 per kg
By road – CMR (8.33 SDR): £8.33 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 13 December 2023, according to the IMF website, was 1.06004)
By air – Montreal Convention (22 SDR): £23.32 per kg
+44 (0) 1628 532613
macbeths.co.uk
January 2024 | 7
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Policy & Compliance
The Customs Declaration Service and tokens: how they work
Steve Bartlett of the Association of Freight Software Suppliers explains how Customs Declaration Service tokens work and how to ensure you do not encounter problems
T he Customs Declaration Service (CDS) introduced that have impacted Customs procedures and working practices. Whilst Members have become used to processing entries through the system, some of the ‘maintenance’ procedures need closer attention. One case in point is ‘tokens’, which are an essential part of the system. They are valid for a maximum period of time and have to be renewed. Failure to do so, as some Members have found to their cost, will prevent the processing of entries within CDS. many new working procedures However, as this article highlights, there are numerous systems that require a token to operate and in all probability these will increase over time as new ones are activated. BIFA is grateful to Steve Bartlett of the Association of Freight Software Suppliers for assisting in answering the following questions. What is a token? • A token is a form of authentication, a sort of password but used machine to machine, rather than input by a human, each time a connection or transaction is attempted. What are the likely GOV systems that will need tokens? • Going forward, we expect all government systems to employ this method of security. They already have the infrastructure in place through the government gateway. Currently the following require token-based access: - CDS declarations, - CDS document upload service, - CTC (transit through NCTS), - CDS ILE (inventory linked
exports – consolidation and movement messaging), - GVMS, - S&S GB (ICS safety and
months after authorisation; they then automatically email users one month, two weeks, one week and one day before this expiry date, and sometimes follow up manually. Who should the forwarder liaise with to make sure everything goes well? • First contact point would be with the software developer’s service desk. Based on this information it is important for Members to ensure that they have their own procedures in place to monitor which tokens they require and in particular their expiry dates. It should be noted that most software providers will mange the process for their customers, but not all do. Therefore, it is important for Members to liaise with software providers as a first step and develop their own internal monitoring systems to ensure that they maintain the validity of their tokens.
“ It is important for Members to ensure that they have their own procedures in place to monitor which tokens they require and in particular their expiry dates
security declarations for mainland GB imports),
- Customs Declaration Information (CDS Enquiries). - EMCS will start when their current development comes to fruition, - ICS Arrivals API to use with ICS2 in Northern Ireland. How does a BIFA Member make sure it has valid tokens? • Most software developers • In the pipeline: manage the process for their customers. They guide their customers through the process through their online services platform and capture the tokens once the authorisation process is completed on the government gateway. They also capture the date these tokens were generated and therefore the expiry date(s) – typically 18
8 | January 2024
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Air Ocean Road Imports Exports ustoms declarations Worksheet automation Customs eTariff CFSP management Customs Warehousing Duty management Transit (NCTS) management Transit (CT) Guarantee management Import ETSF management CCS-UK electronic fallback Export DEP management Job costing and invoicing Air waybills and eAWB Bills of lading Barcoded cargo labels Consignment security declarations Collection and Delivery notes Consolidation management and Manifests eDocument management Archiving Limitless integration Limitless automation
Policy & Compliance
Incorporation of the BIFA Standard Trading Conditions The BIFA Standard Trading Conditions provide wide-ranging bene fi ts to BIFA Members, but they must be properly incorporated if you are to rely on them when things go wrong. Robert Windsor, Member Policy & Compliance Director, explains how and why
O ver the past two years in the pages of BIFAlink we have been running in-depth clause-by- clause articles regarding the BIFA Standard Trading Conditions (STC). Greater emphasis may be placed on some clauses than others and these have been emphasised in the aforementioned articles. The STC are well known in the freight industry. Their validity and fairness have been upheld in English Law over a long period of time. In effect, they have become the ‘rules of the game’ for the UK freight forwarding sector. At this point we have to emphasise that only BIFA Members can use these STC – they are a unique benefit to being a BIFA Member and are applicable to
all aspects of their business. The STC define the responsibilities and obligations of individual parties for the contract of carriage. In addition, they clearly cover key related areas such as insurance, liens and also, for UK ‘established’ traders, the appointment of the BIFA Member as a ‘Direct Customs Agent’. However, none of the above matters one iota if the STC have not been correctly incorporated into the contract between the BIFA Member and their client. At the BIFA Secretariat we receive numerous enquiries relating to disputes between Members and their clients; our first statement and/or question is: “Have
10 | January 2024
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Policy & Compliance
business should be undertaken until the terms have been accepted in writing or an acceptable electronic format. It is essential that all staff who have direct client liaison are advised of this policy. This becomes especially important where Members rely on Clause 7 appointing them as the Direct Customs Agent of a UK established entity. At this point we must emphasise that the STC must be brought to the attention of the client and incorporated into the forwarding contract at the earliest opportunity. The other point which we have already touched on is that agreement must be in some form of hard copy, whether it be a written acceptance or a client’s positive indicator of acceptance on its freight forwarder’s website. BIFA recommends, as previously indicated, that reference to the fact that the Member trades under the BIFA STC is included in all documentation and electronic mediums. The suggested wording is: “All business is transacted under the current edition of the BIFA STC, a copy can be viewed at https://bifa.org/information-guidance/trading- conditions/bifa-standard-trading-conditions-2021/ .” On certain documents, such as credit application forms where it is strongly recommended that the STC are printed in full, there must be a declaration to the effect that the customer has seen, read, understands and agrees that they apply to all aspects of the business relationship between it and the BIFA Member. BIFA also recommends that credit is only offered subject to the customer accepting the BIFA STC as applying to all business transactions. If reference is only made in a credit application document or online form to the application of the STC, they may be taken to apply only to the credit application/agreement between the two parties. The credit application should be signed by a suitably authorised person within the customer’s organisation. The other point to consider is whether or not Members are willing to accept electronic signatures? The assistance of a suitably qualified legal professional may be required to provide guidance on this matter. There is more information on this subject in the BIFA publication Guide to Due Diligence Regarding Credit Application Procedures, which can be found in the Good Practice Toolbox on the BIFA website. Scan the QR code on page 12 to access. At this point it is appropriate to recap on the previous points and highlight additional points. We are going to refer to the Six Golden Rules of Incorporation and we urge Members to adopt them – it could save you a lot of money one day. 1. Always highlight important terms – many Members, for instance, emphasise that goods are not insured and that liability for loss or damage is limited. 2. Incorporation statement - clearly state that the STC incorporated into the contract with the client are an integral part of the commercial agreement. 3. Request acceptance – seek documented and explicit acceptance of the STC from the contracting party. 4.Provide prior notice – Give the customer reasonable notice of the relevant terms.
you incorporated the BIFA STC?” Too often the response is worryingly vague and fails to convince us that the terms have been correctly incorporated. The purpose of this article is to highlight the importance of correctly incorporating the STC and suggest points at which the Member can do so with its customer during routine business activities. Incorporation of the BIFA STC The first point to make is the times that the client has the opportunity to have the terms and conditions brought to its attention, thereby decreasing its ability to claim that it had not seen and agreed them. Some Members have sophisticated electronic systems including tick boxes where the customer has to indicate that it has seen, read, understood and agrees that business will be undertaken under the BIFA STC. The Association’s clear guidance is that no
“ Our first statement and/or question regarding a dispute is: “Have you incorporated the BIFA STC?”
January 2024 | 11 Continued on page 12
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Policy & Compliance
From Page 11 “ The STC are
amendments? What additional risk does this expose the Member to? 2 . The accepted terms must not undermine the fundamental nature of the BIFA STC. Which brings us onto requests for the lien clause to be set to one side or to increase the limits of liability. We have to emphasise that the inclusion of a lien clause in the BIFA STC is essential as it is a valuable tool for Members to ensure that they receive payment. Therefore, with general cargo, it is very unwise to consider removing it. However, some Members handle commodities such as arms and ammunition which would be illegal to sell in the UK – in those circumstances it may be pragmatic to set the clause to one side. Regarding the limits of liability – it has to be remembered that the freight forwarder’s liability is limited to the period when the goods are under its control. For a settlement to be made, it would have to be established that damage/loss had occurred whilst in its care. Cargo owners are best advised that insurance is a better option. Insurance is relatively inexpensive, provides a better scope of cover and settlement of claims is generally easier. The policy holder only has to establish that it has suffered a loss, but not which party is liable. Central pillar The STC are the central pillar of the relationship between these two parties defining individual rights and responsibilities. They must be incorporated as early as possible into the contractual arrangements between Member and customer. If a customer says that they are not fair, emphasise their balanced approach, the freight forwarder may be protected in many ways but it also has many obligations placed on it – the most fundamental being that it has to behave in a professional and diligent manner.
5. Plain language and visibility – Ensure that clear, precise and concise language is used. Also ensure that the recipient of the terms can actually read them. 6. Ensure accessibility – Ensure that the STC are easily accessible and can be downloaded, printed, saved, etc. Where these tips are followed Members can ensure clarity, minimise disputes and enhance enforceability. Other considerations Now we will briefly turn our attention to some other key points and questions that BIFA is regularly asked. The first is a legal point, Members have to be aware that the Unfair Contract Terms Act of 1977 at its core has a test of ‘reasonableness’, which applies to general terms such as the BIFA STC. This includes some guiding points such as whether or not both parties have equal bargaining power, whether or not each party is free to contract elsewhere and to negotiate terms. Where Members have to be especially careful is when dealing with the private individual. Clearly there is likely to be a greater likelihood for an imbalance of power and Members must make every effort to explain at least the most important parts of the STC to such clients. It is essential that the private individual understands them and acknowledges this fact. The other two areas relate to the ‘battle of the forms’ and liens. Regarding the first point, this is where the client submits to the Member either its own terms or modified BIFA terms stating that these will be the contractual terms. If accepted, this action over-rides the original BIFA terms submitted to the contracting party. There are two points to consider: 1. Are Members willing to accept the proposed
the central pillar of the relationship between these two parties de fi ning individual rights and respons - ibilities. They must be incorporated as early as possible into the contractual arrange - ments between Member and customer
BIFA Good Practice Toolbox
12 | January 2024
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Policy & Compliance
BIFA’s views on the voluntary standard for Customs intermediaries have not been taken on board Outcome of Spring Budget consultations
a financial guarantee; • Improving the Transit procedure, making movements cheaper, easier and more accessible. Unfortunately, BIFA’s views on the voluntary standard for Customs intermediaries were not taken on board as most traders wanted to see it introduced. The only good thing is that it is only ‘voluntary’ and AEO-C will be retained alongside it, at least for the time being, although it is noted that allowing more traders to use Customs facilitations without the need for a Customs guarantee further diminishes its importance. There is a little more hope relative to simplifying Customs declarations; 65% of all respondents believed that the requirement to declare buyer/seller information would be challenging, a view that HMRC seems likely to take on board. More information on the outcome of the consultations can be found by scanning the QR code.
I n the 2023 Spring Budget, the Chancellor of the Exchequer announced plans to simplify Customs Procedures with the aim to reduce administrative procedures for businesses. The proposals under consultation were a curious mix of tinkering with administrative procedures and some rather more fundamental structural changes. It is no secret that BIFA and its Members did not see the relevance of certain of the proposals, such as the voluntary standard for the Customs intermediary sector. The Association and its Members strongly argued in favour of increasing standards within the AEO regime. Rather cheekily, the Association suggested that there should be a similar voluntary scheme for importers and exporters. On 7 December 2023, the results of the consultation on potential
improvements outlined in the Spring Budget were announced. New measures The measures, set to be delivered across 2024 and 2025, include: • Introducing a voluntary standard for the Customs intermediary sector; • Simplifying Customs declarations by cutting the amount of data traders must provide by up to a quarter; • Supporting key sectors, including creative, arts and sports, with potential improvements to the procedure for temporarily importing goods; • Simplifying and digitising the Customs and excise authorisation systems; • Allowing more traders to use Customs facilitations that delay duty payment without the cost of
GOV.uk Customs Simplification Measures
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January 2024 | 13
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BIFA Awards
popular Project Forwarding Award category. Chartered accountants Menzies LLP is the latest company to join the sponsorship team, becoming the sponsor of the hugely popular Apprentice of the Year Award in 2023. Port Express, the Felixstowe- based UK container haulage company, recognised an affinity with the ocean freight sector and pledged its support for the Ocean Services Award in 2019. Irish software supplier Thyme IT became the sponsor of the Specialist Services Award, for Members providing services beyond the traditional repertoire of the freight forwarder, in 2022. TT Club is the second longest- serving sponsor, having been supporting the BIFA Freight Service Awards since 1990. For the past 15 years TT Club has sponsored the European Logistics Award open to those Members offering short-sea and overland services between the UK and continental Europe. Virgin Atlantic Cargo picked up the baton as sponsor of the Young Freight Forwarder (YFF) of the Year Award 12 years ago in 2011 and has generously included a behind-the- scenes tour of Virgin Atlantic Cargo facilities for the YFF category finalists. Independent judging BIFA is proud to say that judging of individuals representing each of the sponsor companies who meet in November each year to review the finalists’ submissions and select the winners. Did you know? the awards is carried out, independently of BIFA, by Previously known as Forwarder of the Year Awards, the BIFA Freight Service Awards were launched in September 1989 following the creation of the British International Freight Association in 1988, and are now in their 35th year. Winners The winners of the 2023 BIFA Freight Service Awards will be announced by the sponsors at the ceremony this month and a full report will be published in the February issue of BIFAlink.
A thank you to our category sponsors
Without BIFA’s loyal category sponsors the awards would not exist in their current hugely successful format
T his month sees the competition with the sold-out ceremony and luncheon taking place at the Brewery in central London on Thursday 18 January. Among the 570 guests present will be the category sponsors, without whom the BIFA Awards would not exist in the format they do. BIFA acknowledges the contribution of the following companies that have supported the BIFA Awards 2023: culmination of the BIFA Freight Service Awards 2023
Believing that people are a company’s greatest asset, software and IT systems provider Albacore Systems has sponsored the Staff Development Award since 2009. American Airlines Cargo joined the line-up in 2015, initially sponsoring the Cool Award. For 2023 it has given its backing to the new Sustainable Logistics and the Environment Award, which attracted a great deal of interest from Members. BoxTop Technologies began its sponsorship run in 2005 with the Special Services and Technology Awards before switching to the Supply Chain Management Award in 2009. With a mission to improve logistics and supply chain productivity, performance and security, Descartes proposed the Extra Mile Award in 2015 and has continued to sponsor this award ever since. The name of IAG Cargo first appeared as sponsor of the Air Cargo Services Award in 2012, but the category was previously sponsored by British Airways since the first year of the BIFA Freight Service Awards in 1989. Macbeth Insurance Brokers acquired Peter Lole Insurance Brokers in April 2021 and continued in its footsteps to support the BIFA Awards with sponsorship of the
“ BIFA is proud to say that judging of the awards is carried out, independ- ently of BIFA, by individuals representing each of the sponsor companies
14 | January 2024
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Legal
This month we return to Clause 21 which has four sub- clauses. Last month Clause 21A was covered and this month the remaining sub-clauses B, C and D are covered Know your BIFA STC 2021: Clause 21 (sub-clauses B to D)
occasions when these rights will be very important and the Company will want to be able to use them. Comment on Clause 21(D) Until 2002 there was no legal right to interest on overdue charges unless the right was claimed by contract or unless interest was claimed when litigation was begun – London Chatham and Dover Railway v South Eastern Railway [1893] . The harshness of that situation was remedied by the Late Payment of Commercial Debts (Interest) Act 1998. The right to interest under the 1998 Act was introduced in stages according to whether the debtor or creditor was a small business, a large business or a public authority (all as defined in the Act) but by August 2002, all stages of implementation of the Act were completed. Thus, the Act refers to all commercial debts but not to debts owed by natural persons when they are consumers. Clause 21(D) merely states that the 1998 Act applies to sums due from the Customer. The 1998 Act would still apply if Clause 21(D) did not exist but it would not apply if Clause 21(D) provided an alternative remedy for interest. The rate of interest is fixed by Late Payment of Commercial Debts (Rate of Interest) Orders and that, introduced in 1998, fixed the rate of interest at 8% above the official dealing rate per annum, otherwise called the base rate of the London clearing banks, which varies according to decisions made by the Bank of England and which is announced in the financial media. Thus, the applicable rate of interest is subject to variation. Discretion must be used when adding interest to the amount of an overdue debt and much will depend on the commercial relationship between the BIFA Member and its debtor. In some circumstances, the right to claim interest on overdue debts without resorting to litigation is a useful benefit.
Clause 21 (sub-clauses B to D) Clause 21(B) In the event of any failure by the Customer to make full and punctual payment of any sum payable to the Company (in accordance with 21(A) above): (i) Any and all other sums properly earned by and/or otherwise due to the Company (but which, but for this Clause 21(B), would otherwise not yet be payable by the Customer, whether by virtue of an agreed credit period or otherwise) shall become immediately payable in full; and immediately payable shall be paid to the Company in cash, or as otherwise agreed, and without reduction or deferment on account of any claim, counterclaim, or set-off. (ii) Any sum thereby becoming Clause 21(C) No omission to seek compensation for breach of 21(A) and (B) above by the Company shall constitute a waiver or release to the Customer from any liability under 21(A) and (B) above during the application of these terms unless agreed in writing by authorised officers of the Company and Customer. Clause 21(D) The Late Payment of Commercial Debts (Interest) Act 1998, as amended, shall apply to all sums due from the Customer. Comment on Clause 21(B) This sub-clause goes on to develop the concept of time being of the essence and allows action to be taken in the event of any late payment of sums due and owing. It serves to extend the right of the Company to be paid any sums that at the time of the breach have not
been paid but are not as yet due. Therefore, even if credit has been afforded to the Customer, this will not be effective against this new sub-clause as the failure to pay due sums will mean that all sums, whether due and owing or not, will be payable immediately and on the same basis as those sums that were due and owing under Clause 21(A). This type of clause is known as an acceleration clause, in that it provides for sums becoming due when ordinarily they would not be so under the terms agreed. Comment on Clause 21(C) This sub-clause allows flexibility to the Company to decide when to invoke 21(A) or (B). Generally, if a contractual term is not enforced and there is no provision dealing with waiver, then the next time that term is breached and a party seeks to enforce it, the courts will not allow enforcement as the claimant will be taken to have waived the right to rely on the clause. This Clause 21(C) provides that there shall be no waiver if the Company does not rely on its rights under Clauses 21(A) and (B) unless the Company and Customer agree to the waiver in writing. This will be very helpful to the Company as it is not always necessary to rely on rights owing to late payment but there are
“ Clause 21(B) goes on to develop the concept of time being of the essence and allows action to be taken in the event of any late payment of sums due and owing
16 | January 2024
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Member Engagement
future trends that will change some key aspects of the security requirements. Stansted The Stansted meeting was joined by Trevor Pyett, interim head of aviation at London Stansted Airport, who commented on local issues. Key points from Trevor were that night slots remain restricted, and tonnage is up between 15% and 20% compared with last year, with consequent constraints on handling capacity. A detailed report from the Animal and Plant Health Agency (APHA) was provided. In early December, Denise Hill, BIFA Member Engagement Director, hosted regional meetings in Anglia and London East. Felixstowe Fifty-plus attendees were joined by representatives from NaVCIS (the National Vehicle Crime Investigation Service) who provided an insightful presentation on vehicle theft, including a videoclip showing a robbery conducted in less than 20 seconds. Members exporting vehicles in containers are invited to contact Ports@Navcis.police.uk with relevant documentation to check the validity of shipments. Liz Sumner from BIFA updated Members on training activity, emphasising the different delivery options: face-to-face, online or in- house. The new Introduction to Freight course for those new to the industry was outlined. London East The London East regional meeting, chaired by Scott Baker of Uniserve, was held at DP World London Gateway offices. A representative from Port Health provided an update on current activity and there was discussion around the examination of containers of West African origin as well as the BTOM requirements for foodstuff health certification. 2024 Dates for Regional Meetings for the first quarter of 2024 are now live at https://bifa.org/events/ All BIFA members are welcome, register online to attend.
Denise Hill addresses Members at the Anglia Regional meeting in November
Regional meetings
The BIFA team of representatives continue to be active around the country with the following meetings having taken place recently “ A survey of over 100 businesses in the sector, which found
T he November Stansted and Heathrow Regional Meetings covered some identical topics and some speci fi c to each region. The common topics: Paul Cunningham, BIFA Regional Representative for the South, started the meetings with a summary of key points that emerged from the BIFA Business Leaders meeting held in London in mid-October. These included the results of the ‘Logistics Confidence Index’, a survey of over 100 businesses in the sector, which found confidence to be at its second lowest level in recent years with freight forwarding feeling less optimistic than those businesses focusing on last mile delivery. Another important finding was that 88% of leaders are actively engaged in environmental, social and governance (ESG) activities. This aligns with BIFA’s recent creation of the Sustainable Logistics Policy Group led by Mike Jones as the BIFA Policy Advisor, Sustainability & Environment. Topics related to the air sector included the continuing discussions between FIATA and IATA, aviation security and progress and timescales on the implementation
of Import Control System 2 (ICS2). Updates on Customs and legal matters included CDS implementation and the extension of 999L, the need for vigilance on the risks around indirect representation and preparations for the first milestone of the Border Target Operating Model. The Electronic Trade Documents Act, which came into force on 20September 2023, was discussed along with the timing and implications of EU and UK sustainability and carbon reporting requirements. Meeting attendees were reminded that the highly popular BIFA training courses can be booked through the website and that the Young Forwarders Network and apprenticeships continue to thrive. Heathrow At the Heathrow meeting, Paul was delighted to welcome Tim Robertson, managing director of Cryptair, as a guest speaker. Tim has many years of experience in aviation security and presented and discussed the current situation that is impacting Members, as well as
con fi dence to be at its second lowest level in recent years with freight forwarding feeling less optimistic than those businesses focusing on
last mile delivery
18 | January 2024
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Policy & Compliance
Top fi ve questions on self-assessment answered
For those BIFA Members that have to complete self-assessment tax returns, HM Revenue and Customs (HMRC) has provided answers to the top fi ve questions asked on the self-assessment helpline. Do I need to fi ll in a tax return? Customers can use the online tool at www.gov.uk/check-if-you- need-tax-return to check whether they need to complete a tax return. They will need to answer a few simple questions and it will help them decide if they need to submit one. How do I fi ll in my online tax return? Customers can complete their tax return online using HMRC online services. For help filling in the return, follow HMRC’s YouTube videos and use the help sheets, notes and forms. How do I check how much tax I owe? HMRC works this out for customers
GOV.UK to check response times based on how and when the claim was made. What happens if I cannot pay my tax bill? If customers cannot pay any tax owed in full, they can set up a payment plan, known as a Time to Pay arrangement. Interest will be payable on any outstanding payments after the deadline. HM Revenue and Customs (HMRC) is urging self-assessment customers to use an ‘online first’ approach when seeking help to complete their tax return. There is a wealth of information and support available on GOV.UK to help customers complete their tax return for the 2022 to 2023 tax year ahead of the deadline on 31 January 2024. Anyone completing a tax return for the first time can use HMRC’s step-by-step guide (scan the QR code) which explains what they need to do.
HMRC Self- Assessment app
based on their completed tax return. They can easily check and pay any tax owed via the HMRC app (scan the QR code to download) or via the online service. Where’s my Self-Assessment tax refund? Use the where’s my reply tool on
HMRC Self- Assessment: First time guidance
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 Representative: London West, the South & the South Support your local Member group
Region
Date
Time
Venue
Scan to register
Liverpool
Tue 16 Jan 09:30 Old Cotton Exchange Building, Liverpool
Avonmouth
Tue 23 Jan 09:45
Davies Turner & Co Ltd
Stansted
Tue 27 Feb 09:30 Online – MS Teams
Solent
Thu 29 Feb 14:00
Venue: TBC
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 Training
January 2024 | 19
www.bifa.org
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