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 November 2023 BIFA link Acting as a sub-agent: What’s your exposure to risk?
INSIDE: Liverpool Dinner • The impact of ETS on shipping • Can sustainability create value? • Award-winning Uniserve • A day to remember for YFN members • Know your BIFA STC: Clause 20
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Issue: 399
Steve Parker’s Column
Adapt or die
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 Manager Robert Keen r.keen@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 bifacomms@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors Steve Parker, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Web site: www.bifa.org E-mail: bifa@bifa.org Sharon Hammond, Natalie Pitts, Igor Popovics, Brooke Neilson, Nezda Leigh, Robert Keen, Denise Hill 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 am sorry if this headline sounds a little dramatic or even the title of the next James Bond movie. It is not meant to, but rather to serve as a reminder of how adaptable our industry is. When I joined the industry in 1973 and started to work for Pandair, it was itself a new company formed from five smaller ones (EMG, Anglo Overseas and others that I cannot now recall). I remember being introduced to the various members of staff on my first day, who were all identified by the company they used to work for! The talk of the time was that small forwarders would not survive and that the industry would be dominated by a handful of major players. What rubbish it was then and still is today; most of BIFA’s Members are SMEs, earning a living out of moving freight and providing services that
not only support their customers, but the country as well. The past few years have shown how we can adapt. The pandemic was a tough time for all but our industry stood up and played its part so that not only did many Members survive this period, they also thrived. During the past year or so we have faced an economic crisis, rising costs for energy and staff and fluctuating freight rates across all modes, which have had to continually adapt. Business Leaders Forum The need to adapt does not stop now, nor will it in 2024. At our business leaders’ forum last month, we heard from Aidan Reilly, Director of Customs Policy & Strategy at HM Revenue & Customs, about all of the changes headed our way from that particular government department, remembering of course that NCTS5 is delayed until July 2024 and the TSS has been extended to support business to NI until the end of December 2024. We talked about the latest ruling from the European Commission on the Liner Shipping Consortia Block Exemption Regulations (CBER) and the impact that might have, as well as the Electronic Trade and Documents Act 2023 recently passed by our parliament. All things that emphasise the need to continue to adapt to changing circumstances. At BIFA Change is also happening at BIFA. In the 10 months I have been Director General, the need to adapt has been clear. That’s seen us make significant moves to improve our membership engagement. It has also led to the establishment of a new Sustainable Logistics Policy Group, which will hold its first meeting on 16 November, with a good number of Members already signed up to join and help BIFA to provide broader guidance on environmental issues. There is room for more members to get involved, contact Mike Jones, Policy Advisor Sustainability & the Environment (m.jones@bifa.org) for more information. We have also been upgrading and developing new courses in our provision of training. All is part of the evolution BIFA needs to go through, in order to best support our members and the industry. Lastly, just as with your business, we have had to review our finances in light of rising costs and the additional activity that we are undertaking. This will result in some changes to the cost of membership in 2024 with subscription rates increasing by 6.8% across all membership categories. We believe that this is a fair increase, bearing in mind the pressures our members face.
Director General
November 2023 | 3
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BIFA News
Boluda and Samskip launch UK-Spain service Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business
According to a report in Supply Management magazine, based on a recent study of one-hundred and twenty FTSE 350 firms, excluding financial services, the percentage of FTSE 350 companies with at least one board member listing supply chain or procurement among their skills increased from 11% to 20% between 2018 and 2022. Built on the foundations set by the UK Electronic Trade Documents Act (ETDA) and Facilitated by the British Chamber of Commerce in Singapore (Britcham), October saw the pilot of the world’s first digitalised cross- border movement of goods, shifting the gear towards transforming global trade to be more cost-effective, efficient, resilient and environmentally conscious, and marking a significant step forward in ensuring a fully digitalised process across the entire cargo supply chain. ON THE QUAYSIDE The main approach channel and Berths 8 & 9 at the port of Felixstowe have been deepened to 16 m and 18 m below chart datum, respectively, increasing the maximum size of vessel the port can handle. This also extends berthing windows for the biggest vessels and increases the number of ultra-large vessels that can enter or leave the port on each high tide. IN THE AIR Global air cargo data for August 2023, released by IATA in October, showed that year- on-year demand grew for the first time in 19 months by 1.5%, compared with the levels of August 2022 (with international operations showing a 2% increase). Capacity, measured in available cargo tonne- kilometres (ACTK), surged by 12.2% compared with August 2022 (11.8% for international operations).
ON THE OCEAN Boluda Lines and Samskip have launched a shortsea container service operated by the 803 teu capacity Lucía B, which leaves the port of Santander every Saturday for a three-day transit to Dublin, then Liverpool two days later, before returning to Spain. Sea-Intelligence’s global liner performance, providing schedule reliability data up to August 2023, showed that globally, schedule reliability slightly dipped to 63.2% in August, with minor fluctuations since March. However, year- on-year reliability improved by 17%, whilst late vessel arrivals saw a small monthly
increase of 0.07 days, but remained 1.23 days better than the previous year. Container shipping lines will no longer enjoy a decades- long exemption from EU rules against anti-competitive agreements because this derogation does not boost competition any more, the European Commission said in October. It will allow the Consortia Block Exemption Regulation (CBER), which was extended in 2014 and 2020, to lapse in April next year. According to Clarksons Research, ships in the containership sector have travelled at record slow
speeds this year, with average containership speeds between January and August down 3% on the 2022 average. Average speeds reached a record low of 13.7 knots in February and despite subsequently ticking up to 13.9 knots in Q3, remained below the lowest level on record prior to this year. Shipping lines will implement carbon emission surcharges in 2024 to comply with new European Union regulations aimed at reaching carbon neutrality. See the article on page 8 of this issue for further information. OVERLAND Freightliner launched 25 additional weekly rail services in the UK on 2 October, including a Felixstowe to Daventry connection, which is traditionally a competitive short-haul route for freight logistics. Other new services included Southampton to Cardiff, Grangemouth to Daventry, Southampton to Leeds, Felixstowe to Manchester, Manchester to Birmingham, Birmingham to London Gateway and Birmingham to Felixstowe. IN BUSINESS Transport Intelligence (Ti) said in October that it was seeing increased sell-side activity in the small and medium-sized logistics service provider (LSP) sector, experienced by most LSPs in 2021 and 2022, enabling many business owners to accelerate their exit strategies. Buyers, having experienced the same recent windfall, are in a strong financial position, enabling them to execute their M&A growth strategies. attributing this to the exceptional windfall
4 | November 2023
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BIFA News
The ladies of Uniexpress Ltd
YLP global winner revealed at FIATA World Congress
The global winner of this year’s Young Logistics Professionals Award (YLP) was announced at the prestigious 2023 FIATA World Congress in Brussels in early October by FIATA, the International Federation of Freight Forwarders Associations, and TT Club, the renowned international freight transport insurer. Representing the South African Association of Freight Forwarders, Andre Hein Gerber was revealed as the Young Logistics Professional 2023 Global Winner. Andre's dedication to the field, exemplified by his insightful dissertation focused on the import of a hydrogen desulphurisation reactor and the export of an entire sweet factory, truly embodied the YLP spirit. The YLP Award not only recognises excellence, but also addresses the industry’s challenge of finding talented and motivated candidates. This competition motivates, inspires, and elevates the career prospects of young logistics professionals, offering networking opportunities, skill development and exposure within the global freight forwarding community.
BIFA Liverpool region raises funds for charity in style
The freight forwarding and shipping community of Liverpool donned their best dresses, bow ties and dinner jackets to attend the BIFA Liverpool Region Annual Dinner on Friday 6 October at The Liner Hotel, with over 200 guests in attendance. The event was hosted by BIFA Liverpool Region Chair Keith Baguley who welcomed the Lord Mayor of Liverpool, Councillor Mary Rasmussen, and other distinguished guests to the dinner, which was generously sponsored by Genco Logistics, Hapag-Lloyd, Maersk, Peel Ports and Seacon SG. As has become traditional for this event, the top table was announced by the toastmaster and then took their seats to the sounds of the local Sea Cadet band who continued to play a medley of film music including the themes from Top Gun and Beauty & the Beast. After dinner the evening continued with entertainment from local comedian Mick Miller and was rounded off with a fundraising auction and raffle raising in excess of £6,000 to be donated to the Sea Cadets,
Guests gather for the BIFA Liverpool Region Annual Dinner and are entertained by the Sea Cadet band
local baby hospice Zoe’s Place, and Help 4 Heroes. Members in the Liverpool area may be interested to know that Zoe’s Place is moving premises in summer 2025 and in order to achieve this, has to raise an additional £3 million. It will be embarking on a capital appeal project to try to raise the funds to move into a fit- for-purpose hospice for the
families of Zoe’s Place. Follow their progress and make a donation by scanning the QR code. The full gallery of photos from the event can be viewed by scanning the QR code.
6 | November 2023
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BIFA News
FIATA Reference Handbook published As an extended bene fi t of membership, all BIFA trading members are automatically enrolled as individual members of FIATA, the International Federation of Freight Forwarders Associations. Headquartered in Switzerland, FIATA manages a number of advisory bodies and institutes protecting the interests of the freight forwarding and logistics industry across more than 150 countries. To understand more about the remit and activities of FIATA, take a look at the recently published FIATA Reference Handbook which outlines the work of the advisory bodies and details current projects including: • FIATA digital strategy • FIATA documents and forms • FIATA Foundation • FIATA training programmes • FIATA young logistics professionals award • Towards a FIATA Global Air Cargo Programme • ICAO-FIATA Dangerous Goods by Air Training Programme • Trade facilitation initiative. To download the handbook, scan the QR code or visit www.fiata.org
Transaid cyclists complete London to Paris charity ride
A team of 40 riders drawn from across the transport and logistics sector have completed a 187-mile cycle ride from London to Paris to raise funds for Transaid’s work in sub-Saharan Africa, which is focused on improving road safety and access to healthcare services for rural communities. The adventure began on 22 September with a 65-mile ride from London’s Greenwich Observatory to Newhaven, where the riders boarded a ferry bound for Dieppe. On Saturday they rode 70 miles to Beauvais. Despite using mostly dedicated cycle paths, they collectively suffered 20 punctures in a single day, before the final 54-mile push on Sunday to reach the Eiffel Tower.
Upon reaching the French capital the group had already raised more than £65,000 before costs, with fresh sponsorships still coming in. This has been aided by generous funding from headline sponsor uTrack Software and support sponsor DP World. Commenting after the group’s arrival in Paris, Florence Bearman, Transaid’s Head of Fundraising, said: “This has been an incredible way to mark our silver jubilee and a massive thank you goes to everyone who either jumped in the saddle to support us, or who sponsored one of the riders. “Once again we have shown how the industry comes together to support Transaid, raising vital
unrestricted funds that will help us to save more lives through our vital road safety and access to healthcare projects.” Next year Transaid’s cycle challenge will return to Africa for its 11th such event on the continent, with riders taking on a six-day, 474 km journey on two wheels across majestic Kenya – where Transaid is currently undertaking a major project funded by the FIA Foundation. Taking place from 4-13 October 2024, riders are invited
to sign up for this adventure (scan the QR code for more information), travelling from Nyeri at the foothills of Mount Kenya, to Lake Victoria. The Limits of Liability for Carriers
In association with
By air – Warsaw Convention (17 SDR): £18.33 per kg
By sea – Hague Visby rules (2 SDR): £2.16 per kg £718.89 per package
BIFA STC: (2 SDR): £2.16 per kg
By road – CMR (8.33 SDR): £8.98 per kg
Insurance for the Marine & Logistics industries
(The SDR rate on 16 October 2023,
By air – Montreal Convention (22 SDR): £23.72 per kg
according to the IMF website, was 1.07833)
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November 2023 | 7
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Policy & Compliance
Maersk has issued guidance on the expected cost increase
The impact of European Emissions Trading Scheme (ETS) on shipping
Shipping companies will from next year have to buy and surrender ETS allowances for the emissions from their ships. Some lines have begun issuing guidance on likely surcharges
This wide difference highlights the uncertainties of additional costs related to the introduction of ETS in maritime shipping. As noted by the ITF report on carbon pricing in shipping, many parameters should be taken into account to assess the final costs to customers, such as the price of ETS allowance (currently around €85 per tonne of CO 2 , but likely to increase), operational decisions from carriers (slow steaming, rationalised journey planning) or even the likelihood of the extra costs being passed on to customers. Green exemptions Finally, both carriers announced that customers using their green fuel programmes would be exempt from ETS surcharges as it would reduce their overall GHG emissions. Obviously other lines will be publishing guidance on their anticipated charges; it will be interesting to see what level of charges are incurred and how this will drive change in the sector. The impact on businesses and where they manufacture goods and how they transport them is the bigger long-term question. That has not yet been answered.
T here is an increasing amount of environmental regulation being implemented that will impact on the shipping and transport industry. Whilst it is unclear what the precise impact of this regulation will be, there are clearly increased cost implications. In many ways, the consumer has been shielded by business from these higher costs. However, some of these additional costs will have an impact on the cost of finished goods and it will be interesting to see whether that curbs enthusiasm for de-carbonisation, etc. Surcharge guidance As the inclusion of maritime emissions into the European Emissions Trading Scheme (ETS) will start in 2024, ocean shipping companies have started to issue guidance on the level of ETS surcharges that will likely be added to their freight rates. For reference, shipping companies will have to buy and surrender ETS allowances for the emissions from
their ships. 100% of emissions on intra-EU journeys will be taken into account, and 50% of emissions for journeys to/from an EU port to/from a third country. It will be implemented in phases, with 40% of greenhouse gas (GHG) emissions to be paid in September 2025, but covering the period from 1 January 2024. In 2026, carriers will pay for 70% of emissions generated in 2025 and, from 2027, carriers will have to pay for 100% of the emissions generated in 2026 and onwards. Maersk and Hapag-Lloyd have both issued guidance on the expected cost increase, providing several surcharge rates according to the route and the type of container (normal or reefer). However, they differed wildly on the expected level of the additional costs; while Hapag-Lloyd estimated that a container shipped from Asia to North Europe would incur €12 per teu in ETS surcharges and €31 for a reefer, Maersk advised that the same journey would cost customers an additional €70 per teu and €105 per reefer.
“ Maersk and Hapag- Lloyd have differed wildly on the expected level of the additional costs
8 | November 2023
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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
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Sustainable Logistics
improve their impact on our planet and society; that expectation is influencing change across supply chains, including logistics partners. Additional questions are being seen in tenders today that are representative of more than just a tick box exercise, and your clients are requesting more information to align to their organisation’s internal sustainability objectives. However, sustainability is a difficult environmental and societal topics that require specialist knowledge, it requires both board support and ongoing leadership engagement to embed in everyday decision-making. Board support Gaining board support is the number one priority in driving sustainability, I have seen firsthand that those who have not conquered board discussions fail within the first three months. To engage with your board it is discipline to navigate for any business leader. Apart from representing a vast array of important that you understand the business case, where a business can drive profitable gains and create new opportunities. Key areas to consider include: • Aligning to current and future client requirements improves client retention, • Creating green partner credentials attracts new clients, • New value propositions help penetrate new sectors, • Planning ensures future legislation requirements are met, thus avoiding fines, • Roadmaps help achieve future investment, • Purpose improves employee retention and attracts new talent. Remember, sustainability is a journey that requires a considered starting point and the conviction from all employees to make a real difference. This article was supplied to BIFA by Kelly Hobson of Shape Tomorrow – kelly.hobson@shapetomorrow.co.uk Next month Kelly will be discussing environmental topics in more detail, including how carbon data can positively influence client behaviour when businesses translate information into meaningful actions.
This month Kelly Hobson, founder of UK consultancy Shape Tomorrow and sustainability expert, explains how embedding sustainable thinking across a business can create ongoing opportunities for freight forwarders to thrive Can sustainability create commercial value?
A s the UK logistics sector improve its overall impact on climate change, I am conscious many business leaders are ignoring the need to include all areas of sustainability with as much conviction. Many businesses capturing scope 1, 2 and 3 data are essentially levelling the playing field. Carbon emission data is a necessity, it defines one chapter of your story and demonstrates your remains under scrutiny and tirelessly seeks ways to intent to make a difference in helping to tackle a priority topic. But carbon data is an enabler for industry-wide change and future actions are heavily influenced by the UK government agenda, or unfortunately the lack of it. Meaning as a standalone sustainability initiative your business will not shine brighter than the competition and your business will eventually be left behind as others move quickly to embrace new opportunities. To be recognised as a truly sustainable business you need to
be able to demonstrate real intent by implementing societal and environmental initiatives aligned to the United Nations Sustainable Development Goals. The recommendation to BIFA Members is always to start your sustainability journey by understanding all significant impact areas across your value chain. Consumers today are demanding brands do more to 1. Energy consumption 2. Waste management 3. Water management 4. Biodiversity impact Top societal topics to consider: 1. DEI (Diversity, Equity and Inclusion) 2. Health and safety 3. Local community and charity support 4. Employee training and development Top environmental topics to consider dependent on owned assets:
“ Carbon data is an enabler for industry- wide change – Kelly Hobson
10 | November 2023
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Policy & Compliance
T he European Commission published a press release in October announcing that it has decided not to extend the Consortia Block Exemption Regulation (CBER) for liner shipping. Within the EU, there had been growing opposition to renewing the CBER, with CLECAT being one of the leading voices against retaining the CBER. BIFA congratulates it on its successful campaign on behalf of the EU forwarding community to ensure that shipping lines will in future be subject to competition law. In the UK, the Competition and Markets Authority (CMA) has been undertaking a similar review of the UK’s CBER, with BIFA submitting evidence on behalf of its Members. At the time of writing, the result of this review was not known. Scan the QR
EU ends Consortia Block Exemption Regulation
code to read the European Commission’s Q&A document.
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November 2023 | 11
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Policy & Compliance
Acting as a sub-agent: What risk are you exposed to? In this article, Robert Windsor of the BIFA Policy and Compliance team considers the appointment of an agent and sub-agent in CDS and provides guidance to declare the parties in the import Customs declaration
S ince its Customs Representation and sub-agents. This article aims to clarify the situation, although it is a dif fi cult subject to cover. We must emphasise that there is no speci fi c legislation covering this function. In the TCTA 2018, ‘sub-agent’ is not even mentioned. This guidance must be read in conjunction with CDS Declaration Instructions for Imports – Group 3 Parties – see QR code. As we have discussed many times with Members, both verbally and in writing, HMRC should always check the paperwork trail to see who has authorised whom, to do what, and in what circumstances. What we must emphasise is that the importer must have authorised a Customs agent on its behalf, whether it be in a ‘direct’ or ‘indirect’ capacity. However, the importer must also empower its Customs agent to delegate Customs clearance to sub-agents. CDS completion rules Establishment online webinar, BIFA has received numerous calls regarding the responsibilities of CDS declaration completion rules require the detail of all parties involved to be included in the Customs entry, such as the importer, master-agent (representative), and sub-agent (declarant). The importer’s details must be declared in DE 3/15 or 3/16. Please note: the EORI number is declared in DE 3/16; where this is not held the importer’s full name and address is declared in DE 3/15. The details of the sub-agent (declarant) must be entered in DE 3/17 or 3/18. Please refer to the CDS Completion Rules for detailed completion guidance. As the guidance clearly states: “A representative should only be declared to CDS where the representative [party who will be responsible for the Customs formalities] differs from the declarant declared in DE 3/17 and/or DE 3/18. For example, where the representative contracts with a sub-agent to submit the Customs declaration. The sub-agent’s details are to be entered in the declarant’s data elements; the representative [who holds the contract with the importer to complete the Customs formalities] will be entered in the representative’s data elements.” The guidance continues: “If a representative sub- contracts the completion of the declaration to a third party, the sub-agent submitting the declaration must declare its details in DE 3/17 or 3/18 [declarant] and
the details of the representative that employed it must be declared in DE 3/19 or 3/20
[representative].” Representation
Direct representation and sub-agents: Where the importer appoints a Customs agent to act as a direct Customs agent on the former’s behalf, but this agent does not have a badge to undertake Customs clearance at a specific location, the use of a sub-agent will be required. In order to be compliant, the agreement between the importer and Customs agent must permit the latter to pass on the empowerment to a sub-agent to act in a direct capacity. The following guidance from Customs debt liability – GOV.UK (www.gov.uk) is clear on the subject. “If the agent wants to delegate tasks to a sub- agent, the agreement between the agent and the principal must make an allowance for this. If it does not, the sub-agent will not be empowered to directly represent the principal and will be considered as acting on its own behalf, and fully liable for any Customs debt that occurs.” In an ideal world the agent should pass on a copy of its original agreement with the importer which must, from the sub-agent’s viewpoint, include confirmation that the importer has appointed the agent as its Customs representative and the latter is entitled to pass the empowerment on to a sub-agent. If the agent (representative) is not in a position to pass on the original correspondence from the importer but has been authorised by the importer to pass on the empowerment, they need to authorise in writing the sub-agent in line with the original authorisation to act as the direct Customs agent of the importer in all dealings with HMRC. The agent confirms that it is empowered to pass on the relevant empowerment, that documentary evidence of the original authorisation is retained and will be made available on request, such as HMRC inspection, etc. The importance, from the sub-agent’s viewpoint, of being correctly empowered is clear, because as per the above HMRC guidance if it is not, it runs the very serious risk of being liable for Customs debts. At this point it has to be emphasised that this empowerment can be passed on only once from agent (representative) to sub-agent (declarant). The sub-agent cannot pass this empowerment on to another agent. It is essential that the agent and sub-agents agree operational procedures between themselves; these
“ CDS declaration completion requires the detail of all parties involved to be included in the Customs entry
12 | November
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Policy & Compliance
because it was not correctly empowered and thus became jointly and severally liable for the Customs debt. Our suggestion is that, at the very least, the sub- agent should conduct due diligence checks on the agent on whose behalf it is acting. This check should include questions to the master agent about what due diligence checks are undertaken by it on its customers. We accept that this is additional work but in 2023, a significant upturn in HMRC compliance activity has been noted and this is impacting on Members. Liability for a debt HMRC guidance clearly states that where the direct Customs agent makes a deliberate or unreasonable error or acts without empowerment, that it may become jointly and severally liable for the Customs debt due. Further guidance is available in the following document Customs debt liability – GOV.UK (www.gov.uk) . Indirect Customs agents are always jointly and severally liable for Customs debts. Having read available guidance, the agent (representative) has significant responsibilities to ensure that the correct empowerment from the importer is in place and passed on as appropriate. Also, from the sub-agent’s perspective, it is essential that it checks the documentation and especially the empowerment to ensure that the agent confirms that its principal has empowered it to pass it on to a sub-agent. Whilst not preparing the Customs declaration, the agent is responsible for checking it to ensure that it has been completed in line with their instructions. Please note, the above guidance is drafted based on the information currently available on various government sources and is valid at the time of writing.
could be in the form of written standing instructions regarding handling imports for specific clients. Alternatively, it may be that written instructions are provided for each and every clearance by the master agent to sub-agent. The representative retains responsibility for ensuring the declaration is made in accordance with the instructions provided by the importer. Indirect representation and sub-agents: Where an agent (representative) delegates the making of a Customs declaration to a sub-agent, in an ‘indirect’ capacity on behalf of the importer, the data elements within the Customs declaration must be completed as previously detailed in this article in CDS completion rules. It is the representative who retains joint and several liability with the importer for the Customs debt. It is permitted for the Customs agent (representative) to be appointed as the indirect Customs agent of the importer, but they can appoint the sub-agent to be a direct Customs agent to themselves. The relevant guidance in Customs debt liability – GOV.UK (www.gov.uk) is clear on the subject: “Agents acting as indirect representatives can ask sub- agents to represent them in a direct capacity. The sub-agent only becomes liable for the debt if they make a deliberate or unreasonable error that would make them jointly and severally liable”. From the sub-agent’s perspective, this is why it is essential that they are correctly empowered by the agent. One other area to consider is what due diligence checks a sub-agent should undertake on either the agent or importer. At BIFA we have been involved in two situations where the agent was not ‘established’ in the UK. This has significant detrimental liability on the sub-agent
“ HMRC guidance clearly states that where the direct Customs agent makes a deliberate or unreasonable error or acts without empower - ment, that it may become jointly and severally liable for the
Customs debt due
November 2023 | 13
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Member Engagement
BIFA’s Customs Policy Group and the Joint Customs Consultative Committee (JCCC), of which BIFA is a member. Steve then used the remaining time to provide attendees with an update on the other activities in which BIFA is currently engaged; providing news about the work of the trade association’s various policy groups, and encouraging any attendees not already involved to consider seeking membership of one of the groups for their company. Attendees received updates on the agreement that could set the relationship between freight forwarders and airlines for the next generation, as well as the current state of the liner shipping Consortia Block Exemption Regulation review being undertaken by the Competition and Markets Authority. Thorny issues Potential disruptions likely to result in the Customs environment in regards to the BTOM, CDS Exports, Windsor Framework, and Single Trade Window were also addressed, as well as the thorny issues of indirect and direct representation and establishment, which have occupied a good deal of the trade association’s time this year. Emphasising the importance that training has to all of the standards that underpin the activities of BIFA Members, such as AEO accreditation and the voluntary standard on which the government is consulting, Steve advised that BIFA plans to develop more training opportunities in 2024. Space does not permit a full account of the other issues that were covered, so if you want to learn more, make sure you keep your eyes peeled for news about the next BIFA Business Leaders Forum, which is likely to take place in spring 2024. Don’t miss out – contact bifacomms@bifa.org stating Business Leaders Forum to ensure that you are on the mailing list and receive notification about the next event.
Steve Parker takes questions from the floor during the second BIFA Business Leaders Forum
Lively debate at second Business Leaders Forum “ Considerable changes at the border are in the
T here were some very useful discussions at BIFA’s second Business Leaders Forum held in Central London on October 19, and attended by around 50 senior personnel from BIFA Members. During this event, BIFA’s Director General Steve Parker provided attendees with an overview on some of the numerous issues that BIFA feels will have an impact on the work of the freight forwarding and logistics companies in the near and longer term. Border changes Attendees were provided with an overview by Aidan Reilly, Director of Customs Policy and Strategy at HM Revenue & Customs (HMRC), in which he outlined the considerable changes at the border that are in the pipeline as part of the
government’s stated ambition to develop and implement a Single Trade Window. Aidan thanked BIFA and its Members for the valuable collaboration that they have with HMRC, which has really helped with the department’s work over the last few years. In acknowledging that a lot of that collaboration had previously been reactive to changes in Customs processes, he stressed that HMRC’s recent engagement had been proactive in regards to the delivery of new systems and procedures, and would continue to be so. There was a lively exchange of opinions between Aidan and the floor; he concluded his session by welcoming the challenges that BIFA and others in the industry present to HMRC in its engagement via
pipeline as part of the government’s stated ambition to develop and implement a Single Trade Window.
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BIFA Awards
platform that manages products, people and processes, and provides full end-to-end visibility and management of the planned – and actual – supply chain. “Normally we would integrate the shipping lines into One World, and then be able to provide visibility of the goods they are carrying, although we would not be able to control them or their ships,” Cobbing explained. But during COVID-19 “there were serious struggles with the capacity, reliability or certainty that our customers needed to run their global businesses. “We therefore decided to launch our own shipping line and brought into service our own containerised ships, providing an express service from China and Vietnam to the UK.” Within six months, Uniserve captured 5% of the China-UK market and 7% of the Vietnam-UK market. Ship operators The company set up a dedicated team of ship operators in the UK, operating licences, and geared up small port operations to quickly and efficiently handle landside services at origin and destination – avoiding the larger, more congested gateways. “We integrated all ships’ operational software with the One World supply chain management platform, giving full visibility and operations management,” Cobbing added. Having attached its own shipping line to its supply chain management capabilities, Uniserve is now able to ensure that its customers’ products are delivered by sea with consistency and confidence. “Our strategy has been a complete change of direction from the traditional services,” Cobbing said. “We reduced port-to-port transit times between Asia and the UK (Tilbury) by an average of 14 days. Door-to-door transit times were reduced by anything up to 30 days.” In 2022 UniOcean was operating nine ships, with more joining its fleet in 2023. Its shortsea and transatlantic services around Europe were launched in the last quarter of 2022. Europe, China and Vietnam, obtained all the necessary
In 2022 UniOcean was operating nine ships, with more joining its fleet in 2023
Why Uniserve launched an award-winning line
When the Asia-Europe supply chain collapsed during COVID-19, Uniserve Group solved the problem by setting up its very own shipping line. The bold move was hugely successful and was recognised in the 2022 BIFA Ocean Services Award
“ To overcome the issues that the shipping lines were experiencing, we had to think differently
programme was the fulfilment of over two years’ hard work and investment to provide our clients with the fastest, most reliable and cost-effective seafreight product between Asia, the UK and Europe. “UniOcean harnessed an infrastructure investment of over US$1.5 billion through the contracting and purchasing of our own fleet of vessels and 25,000 brand new containers, plus Uniserve’s existing in-house software, One World,” Cobbing said. One World is a real-time
T he COVID-19 pandemic starts to fall apart under pressure, resulting in chaos, delays and high costs. This was clear in the shipping industry, which faced challenges such as product availability, landside operational closures, equipment misplacement, port congestion, schedule disruption and much more. Service levels demonstrated that a fragile and risky supply chain quickly Not only did this result in rising costs, it led to a drop in service levels and availability for seafreight customers, said Gary Cobbing, Uniserve’s chief operating officer. Cobbing recalled: “To overcome the issues that the shipping lines were experiencing, we had to think differently. The UniOcean
Ocean Services Award
Port Express was established in 2004 to provide a comprehensive range of container transport services to the supply chain industry. Specialising in UK container haulage, Port Express works in partnership with its clients to provide innovative cost- effective supply chain solutions. Due to our ongoing investment and development in new equipment and technology, Port Express operates from strategic locations throughout the UK ensuring the level of service we deliver remains among the very best in the industry. Port Express operates to the highest standards and is committed to the health and safety of its employees, customers and visitors.
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Young Forwarder Network
In the cargo hold. L-R: Thomas Bedocs (DHL), Leanne Read (Neon Freight), Sophie Hammond (K+N), Bobbie Costin (B&H Worldwide) and Carl Hobbis (BIFA)
A special day to remember for YFN committee members
L ast month eight YFN committee members were lucky enough to experience a behind the scenes tour of Virgin Atlantic Cargo’s operation at London Heathrow. Kicking off with an insight into the off-airport warehouse operation, the group then moved airside to spend the afternoon amongst some of Virgin’s fleet on the terminal apron with Kirk Murray, manager cargo operations Heathrow, providing access to all
areas in relation to cargo and passenger operations. Those attending had the opportunity to sit in the pilot’s seat and the first class cabin, visit the crew lounge in the terminal, step onto the scissor lift to gain access to the cargohold and witness ULDs being loaded and, to cap it all, taking a seat alongside the tug driver while pushing back an aircraft ready for departure and listening to the discussion between the flight
deck and the ground staff. Carl Hobbis, executive director, BIFA said: “We really appreciate Virgin and its team for taking time out of their busy schedule to welcome the YFN members. In particular, our thanks go to Kirk Murray who was our guide; his knowledge and enthusiasm are immense.” One of the participants, Leanne Read, of Neon Freight, commented: “A huge thank you to Kirk for giving up his time and really making it a
“ A huge thank you to Kirk for giving up your time and really making it a once-in-a- lifetime experience. Thank you to BIFA for providing these experiences – Leanne Read
Herbie Cobby (GEODIS), Georgia Gibson (cargo partner), Connor Rochelle (Espace Europe) and Brooke Jennings (Burhill Logistics) on the apron
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Policy & Compliance
Beginning your sustainable logistics journey A report on BIFA’s fi rst webinar on the subject Calculating Freight Emissions B IFA has been monitoring environmental developments for 15 years and has noted that there has been signi fi cant additional interest in the subject over the last two years. The reasons for this are complex but increasing regulation, news reports and individual awareness are in all probability the main drivers. Over this two-year period BIFA has developed a partnership with Pledge.io, who have created an accurate carbon calculator to calculate and record emissions from international forwarding. Concurrently, the Association has appointed Mike Jones as Policy Advisor to cover this topic. On 11 October, in conjunction with Pledge.io, BIFA hosted its first online environmental event looking at the logistics industry’s contribution of 11% to global carbon emissions. The webinar looked at why it is so important to measure and record carbon emissions, including how this can be done via Pledge’s carbon calculator, which is accredited by the Smartfreight Centre to be GLEC (Global Logistics Emissions Council) compliant. The event was attended by 112 Members and concluded with a lively Q&A session indicating a high level of Member engagement on this ever more important issue. If you missed the webinar or require further information on this topic, contact Mike Jones, Policy Advisor Sustainable Logistics, by email at m.jones@bifa.org
Thomas Bedocs (DHL) sizing up an engine
Want to get experiences like this?
once-in-a-lifetime experience. Thank you to BIFA for providing these experiences.” Unforgettable experience Another, Bobbie Costin of CH Robinson, echoed: “I would like to say a massive thank you to Kirk Murray for being our knowledgeable host and giving up his day to show us around. An unforgettable experience.” You always need employer support to attend events, something Thomas Bedocs appreciates: “As always thank you to my team at DHL Global Forwarding for allowing me to attend events like these and to BIFA, for providing these platforms to broaden my knowledge.”
We are always on the lookout for committee members around the country to join either the regional or the virtual format of the YFN. We often get asked when people enquire about becoming more involved in the YFN committees, what is in it for me? By becoming more involved you are given an opportunity to: • Help shape the YFN and its future direction • Work closely with BIFA and other YFN committee members • Receive exclusive invites to events such as the Virgin Atlantic airside tour • Gain valuable experience to your skillsets, enhancing your employability. If you are interested or have any questions, please get in touch with Nezda Leigh n.leigh@bifa.org in the first instance.
Departure time: Sophie Hammond (K+N) and Leanne Read (Neon Freight) experience the tug driver’s view at pushback
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Young Forwarder Network
O n our arrival at London Heathrow’s Animal Reception Centre, Ross Hayes (Deputy Manager) gave YFN members a very interesting insight into how animals should be cared for in transit. Animal welfare must be of the Members of the Young Forwarder Network (YFN) were treated to an in depth ‘behind the scenes’ tour of London Heathrow’s Animal Reception Centre (ARC). Graeme Wilkinson , Training Development Manager, BIFA reports on the visit Stepping into the ARC “ This was an amazing highest standard and we were shown various examples of how they should be boxed in line with the IATA Live Animal Regulations. Unfortunately, not all animals are shipped in suitable carriers or crates, meaning many animals arrive overpacked and in poor
condition. The responsibility to ensure that animals are shipped correctly lies with the airline and penalties will be incurred for non- compliant shipments. Ross then gave us a tour of the export department, allowing those of us brave enough to handle tarantulas (in plastic boxes) before moving on to show us the import section. Dogs and cats Mammals, mainly dogs and cats, can be looked after for a maximum of 48 hours at this holding facility and are only handed over to their owners once the necessary ‘chip’ has been detected on the animal and all paperwork is completed correctly. Graeme Wilkinson, Training Development Manager, BIFA, said: “This was an amazing opportunity for our YFN members to see for themselves the shipping of animals and livestock and gain an understanding of the requirements involved. “Thank you, Ross for sharing your knowledge and passion and making a very enjoyable experience for all!” To join the Young Forwarder Network and benefit from opportunities such as this, contact bifacomms@bifa.org with your name and employer details to be added to the mailing list.
opportunity for our YFN members to see for
themselves the shipping of animals and livestock and gain an under - standing of the requirements involved. 20 | November 2023
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