BIFAlink is BIFA's monthly magazine covering issues of importance for the logistics and supply chain industry.
April 2022 The magazine of the British International Freight Association BIFA link Issue: 380 www.bifa.org
Tomorrow’s apprentices need you! – Pages 12-13
INSIDE
6: News A new face in BIFA’s training team 8: Policy & Compliance Call for evidence – an independent Customs regime
11: BIFA Awards How Kerry found radical solutions in the pandemic 18: Policy & Compliance Clarification on Rules of Origin
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Robert Keen’s Column
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Concern over self-declaration proposal
BIFAlink is the official magazine of the British International Freight Association Redfern House, Browells Lane, Feltham TW13 7EP Tel: 020 8844 2266
It is often said that “history repeats itself” or “there is nothing new under the sun”. On page 8 you will find an article written by my colleague Robert Windsor about a proposed ‘Single Trade Window’ to government, the concept of which I first came across in 1998 when I was the HM Customs and Excise (nowadays HMRC) resource for a freight software house. I attended a number of consultative meetings between 1998 and 2003 about the Single Trade Window concept, and here it is coming around again. This time, however, there are considerable resources being made available by government in a drive to reduce so-called red tape. There has been a fear expressed by some BIFA Members that this is the beginning of the end of Customs entry work, but it is my view this will not happen.
Web site: www.bifa.org E-mail: bifa@bifa.org
(A company limited by guarantee. Registered in England: 391973. VAT Registration: 216476363) Director General Robert Keen r.keen@bifa.org Executive Director Robert Windsor, Policy & Compliance – Surface & Legal
Before the Single Trade Window, some of the older ones among you may recall something colloquially known as ‘The Rickwood Report’ in the mid-1980s. Mike Rickwood was a senior officer at HMC&E who advanced the theory that well over 90% of businesses are legitimate so why not allow them to report imports in the same way that they complete a VAT return. It was too radical at the time, although I for one was worried that it was going to be the end of Customs brokerage. Of course, there was Period Entry which became EIDR and CFSP (now SDP), but until now most importers have not wanted to do their own entries. As technology improves, it is a logical step to offer traders this option but, in my experience, traders will always look to their forwarder to be an intermediary between them and HMRC. An old boss of mine often used to say that if you banned forwarding you would have to re-invent it the next day. There is often talk of disintermediation and although there have been many changes with online transactions in business, there is no obvious trend for importers to switch from forwarders and complete Customs declarations themselves. The potential of self-declaration of border data into the Single Trade Window is seen as detrimental to our sector and I encourage you to read the article and respond to the government consultation. The latest proposal for a Single Trade Window will be seen by many as another potential source of supply chain disruption if it is not created and managed properly. Whether it is the infamous pandemic, a ship stuck in a canal, cyberattacks, unprecedented swings in customer demand or territorial conflicts, it has become increasingly obvious over the last few years that it is a question of ‘when’ and not ‘if’ your business will feel the impact of supply chain disruptions. The old adages ‘Prevention is better than cure" and ‘A stitch in time saves nine’ are more relevant in the supply chain today than at any other time. Real-time visibility and transparency in supply chains could be the potential answer to mitigate supply chain disruptions, capable of saving you time, money and eventually your business. As I was writing the conclusion to my column for this issue, I got a sense of deja vu with the news that China’s zero-COVID-19 strategy has seen major cities lockdown in response to a surge in cases during March. Shanghai and Xi'an have implemented lockdown measures, while the port city of Shenzhen started a seven-day full lockdown on 14 March. Last year, a COVID-19 outbreak at Shenzhen’s Yantian port sent shockwaves through the supply chain. This time round, ports and terminals are said to be operating normally, but with landside logistics impacted there are bound to be implications for global trade. According to media reports, due to lack of labour, things were slower and less efficient. Individuals, especially truck drivers, had to show negative tests at checkpoints and when crossing city borders. The situation only served to exacerbate delays and create bottlenecks, adding further pressure to an already tense supply chain. Hopes that this year would see a stabilisation of rates, an opportunity for forward planning, or even a return to something close to normal are quickly dissipating, and as it stands now, 2022 has shaped up to be another year of firefighting for those managing international supply chains.
r.windsor@bifa.org Executive Director Spencer Stevenson s.stevenson@bifa.org Executive Director Carl Hobbis c.hobbis@bifa.org Policy & Compliance Advisor – Customs Igor Popovics i.popovics@bifa.org Policy & Compliance Advisor – Air David Stroud d.stroud@bifa.org Editorial Co-ordinator Sharon Hammond s.hammond@bifa.org Communications Manager Natalie Pitts n.pitts@bifa.org Membership Supervisor Sarah Milton s.milton@bifa.org
Published by Park Lane Publishing peter@parklanepublishingltd.com Contributors
Robert Keen, Robert Windsor, David Stroud, Spencer Stevenson, Carl Hobbis, Sharon Hammond, Natalie Pitts, Nezda Leigh Note to media: If you wish to use items in this magazine that are older than one month, please contact the editor to ensure that the item in question still reflects the current circumstances. Please be advised that BIFA DOES NOT OFFER LEGAL ADVICE. BIFA is not a law firm and the authors of this publication are not legally qualified and do not have any legal training. The guidance and assistance set out herein are based on BIFA’s own experience with the issues concerned and should not be in any circumstances regarded or relied upon as legal advice. It is strongly recommended that anyone considering further action based on the information contained in this publication should seek the advice of a qualified professional.
Robert Keen Director General
April 2022
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Ian Matheson, from Impress Communications, reviews some recent news that might impact on Members’ business Multimodal bill of lading data standard unveiled
during a call by the MSC Amelia in early March.This beat the 25,852 teu handled by the Moscow Maersk the previous week and 23,773 teu handled by the MSC Diletta in early January 2022. Thames Freeport says it is experiencing sky high demand from businesses wanting to relocate to its investment zone, 12 months after the government’s announcement that it would be one of the first eight freeports nationwide. An array of businesses from a diverse range of sectors are seeking to take advantage of the substantial financial incentives offered by freeport status. IN THE AIR Global air freight markets recorded slower growth in January 2022, IATA reported, as supply chain
ON THE OCEAN On 10 March, FIATA and the United Nations Economic Commission for Europe (UNECE) announced the official release of the electronic FIATA Multimodal Bill of Lading (eFBL) data standard. This was created on the basis of the mapping of the Negotiable FIATA Multimodal Transport Bill of Lading (FBL) with the UN/CEFACT MMT reference data model. It allows the exchange of BL data in a standardised way, facilitating interoperability between all modes of transport and industry stakeholders. The International Chamber of Shipping has warned of supply chain disruption should the free movement of Ukrainian and Russian seafarers be restricted as a result of the current situation in the Ukraine. These seafarers together represent 14.5% of a total global seafarer workforce of 1.89 million, operating over 74,000 vessels in the global merchant fleet. The US Department of Justice (DOJ) and the Federal Maritime Commission (FMC) have strengthened their partnership to jointly enforce antitrust and competition laws and to promote competition in the ocean freight transportation system. This follows the formalisation of their working relationship in July 2021 with the signing of a Memorandum of Understanding that established a framework for partnership between the FMC and the Justice Department’s Antitrust Division. Sea-Intelligence has reported that global container line schedule reliability dropped to a new low of 30.9% in January this year, the lowest level reported by the analyst since it started monitoring schedule reliability in 2011. It added that any
disruptions and capacity constraints, as well as a deterioration in economic
hope that this year would see an improvement in supply issues has been quickly dashed with container line delays getting worse not better. MDS Transmodal (MDST) research, commissioned by the Global Shippers Forum (GSF), found that global ports lost over a third of their expected capacity to ship containers during 2021.This was a result of scheduled port calls being skipped and blank sailings by lines, creating delays and disruption for shippers and economic harm to some smaller developing nations. The huge spike in bunker fuel prices in March, driven by oil market volatility after Russia’s invasion of Ukraine, promises significant increases to container freight rates via the traditional bunker adjustment factors (BAFs), which typically lag fuel price increases by one to two months. Forwarders and shippers already face record spot prices in many trades and elevated rates globally.
this summer, for the first time since the COVID-19 outbreak. It is planning sailings from Portsmouth to Bilbao; a weekly rotation between Portsmouth and Cherbourg; services between Portsmouth and St Malo; Plymouth to Santander and Roscoff; Poole to Cherbourg; and two round-trips a week for passengers as well as freight on the Roscoff to Cork route. ON THE QUAYSIDE The forces that influence UK port operations are evolving and as the sector responds to new demands, the challenge of creating more sustainable and digitally-optimised port operations is highly likely to impact on the pipeline of skills and labour requirements in the sector, according to the British Ports Association (BPA). Its new report outlines the future skills agenda for port operators and their supply chain partners. The Port of Felixstowe broke its own record for the most containers handled on a single ship for the third time in two months, when a total of 27,961 teu were handled
conditions for the sector, dampened demand. Although cargo demand is tracking above pre-COVID-19 levels, capacity is still constrained. OVERLAND The International Road Transport Union (IRU) has joined the cacophony of shouts from all quarters for governments to act on the steeply rising price of road fuel for commercial vehicles. It wants fuel prices capped and fuel taxation cut, which it says are essential to avert a wider economic crisis.
IN THE WAREHOUSE There are early signs of wood
availability returning to established seasonal patterns, according to the Timber Packaging & Pallet Confederation (TIMCON). However, supply chain difficulties continue to impact on the sector, including strong demand for timber from competing markets, higher raw material costs, widespread shortages of staff, and rising energy and fuel costs. The conflict in Ukraine has created further instability due to the country’s major role in pallet making.
Brittany Ferries is planning to operate a full complement of ships
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April 2022
The biggest change in nearly 30 years is happening in our industry over the next 6 months.
CDS is replacing CHIEF for import customs declarations at the end of September 2022. In times of great change and upheaval, you look to who stands beside you and with you. ASM is guiding and partnering more than 500 freight forwarders through migration to CDS.
Who s partner?
ASM. Here today. Here tomorrow.
Let us know if you would like a conversation. admin@asm.org.uk
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Invitation to Members: Database of PR/Media contacts Some time ago, we invited Members to provide the name and contact details of the relevant employee who would handle media enquiries; or, if you work with a PR company, the name and contact details of the relevant person there. The reason? To enable BIFA to be more proactive with requests from mainstream broadcast and print media, as well as the trade media, to comment on topical issues, as well as to provide a Member contact for them to speak to. To date, in order not to be seen to favour one Member over another, we have suggested they search through the membership list on the BIFA website. However, the purpose of sending out the invitation was so that we could create a database of the relevant media contacts among BIFA Members, which would enable us to be more responsive to such requests. The response has been underwhelming, although those companies that did respond have seen some excellent media coverage about them as a result. Hence this repeat request. If you would like your company to be on that database, could you please provide the name and contact details of the relevant employee who would handle media enquiries; or, if you work with a PR company, the name and contact details of the relevant person there? BIFA’s long-standing PR consultant, Impress Communications, will be coordinating this project, so please email Ian Matheson with the information requested, or call him if you would like further information. Ian’s contact details are: Tel: 07894 406762 or via email at ian@impresscommunications.org
A new face in BIFA’s training team
Despite having to deliver the entire portfolio of BIFA courses online in 2021, it was an excellent year for our training programme, culminating in the decision to appoint an additional full-time trainer to the training delivery team. Lisa Rose (pictured) joins BIFA as Trainer – Freight and Customs Procedures, giving the trade association a four-strong team based in Manchester, Birmingham and Feltham, enabling it to deliver more training days virtually and in person during 2022. Lisa, who joins BIFA from Intelligent Global Logistics, will be based in the Midlands. She has over
Global Logistics, she worked in senior roles at Air Menzies International for over a decade. Carl Hobbis, Executive Director and Training Development Manager, added: “It is a pleasure to welcome Lisa to the team that delivers our freight and Customs training. She has extensive industry experience and in 2020 achieved a distinction in BIFA’s BTEC in Customs Export and Import Procedures, so has practical experience of the trade association’s training activities. Having her onboard will help us to further demonstrate that BIFA’s freight and Customs training programmes are the most engaging in the industry.”
20 years of experience in management and supervisory roles in freight forwarding and logistics, including as branch manager covering sales, Customs, customer service, documentation, special projects and key account management. Prior to Intelligent
Notice of Annual General Meeting
Notice is hereby given that the 33rd Annual General Meeting of the British International Freight Association (BIFA) will be held on Thursday 26 May 2022 (time to be advised) in order to: 1. Receive the Report of the Board of Directors. 2. Receive the accounts for the year ended 31 December 2021 and the Report of the Auditors thereon.
3. Appoint Auditors and authorise the Board to fix their remuneration. 4. In accordance with the Association’s Articles, to note and approve the election of Officers of the Association. 5. Transact any other business which may properly be transacted at an Annual General Meeting. Robert Keen, Director General 30 March 2022
A BIFA Member may nominate an attendee although there will be a limit on numbers once a quorum is achieved. Please email r.keen@bifa.org Note: Any Member entitled to vote at the above meeting may appoint a proxy to vote on a poll in his stead. A proxy need not be a Member of the Association. A form of proxy is available to download from the BIFA website www.bifa.org
Book your Multimodal LogPod now
Time is running out to reserve your own LogPod within the BIFA Village of Multimodal 2022. Now only two months away, the exhibition runs from Tuesday 14 to Thursday 16 June. For the bargain price of £950, you get a mini exhibition stand for the duration of the show at which you can meet with both existing and potential customers. Traditionally attracting some 9,000 participants over three days at the NEC, Multimodal is the only one-stop trade show for cargo owners in the UK, Ireland and Northern Europe, and is the established meeting place for the
industry. Since 2008, Multimodal has been bringing together shippers and cargo owners with exhibitors and sponsors who can offer products and services to help make their supply chains more efficient and more cost effective. Already confirmed for the BIFA Forwarders’ Village are: • ASM
• Peter Lole Insurance Brokers • Unsworth
• Vartan • YSDS
Don’t miss your opportunity to exhibit alongside these leading companies. For more information and to book your LogPod, go to www.multimodal.org.uk/exhibition/ exhibit Please note, your contract for a LogPod is with Clarion Events. You should read its terms before making a commitment as BIFA cannot intercede should there be any dispute.
• Brunel Shipping • Espace Europe • Eurosprint • HD Forwarding • Kerry Logistics • Mannson Freight
• MultiFreight • OIA Global
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Customers presenting you with their terms or asking for STC changes
Who is joining BIFA? Newmember applications are published monthly and listed on the BIFA website, www.bifa.org . You can find details of new member applications by selecting the tab MEMBERSHIP where you will see a separate page titled MEMBERSHIP APPLICATIONS. If you wish to bring any information to our attention regarding any application, an e-mail should be sent to Robert Windsor (r.windsor@bifa.org). BIFA has a Membership Group that can evaluate any applications, where such information has been submitted. We also list on the website those companies that have ceased membership. Register at https://bifa.org/ membership/website-registration to receive the BIFA e-Newsletter detailing member applications, news and industry information.
We occasionally get enquiries from BIFA Members when their customer requests that a clause in the BIFA Standard Trading Conditions (BIFA STC) be deleted or amended. Another regular issue is the customer presenting the forwarder with its own terms. Remember that you are the service provider, and it is your STC that will be paramount and need to be embodied into any contract. However tempting it might be to agree to customer demands in order to secure an apparently lucrative contract, there are many fundamental defences in the STC that are indispensable. This is not to say that the BIFA STC cannot be extended. In such circumstances, however, always consult your liability insurer and a solicitor with appropriate transport-related experience. The BIFA STC cannot be changed to suit individual Member contracts as they would not then be standard. It is a strength of the STC that a customer using a BIFA Member knows that the trading conditions are common across the industry. If a customer has requirements that your liability insurer is comfortable with, then you should negotiate a separate logistics contract with the BIFA STC at the
heart of it. You can find guidance at bifa.org under the INFORMATION tab. Look for the GOOD PRACTICE TOOLBOX tab where you will find guidance on drafting a logistics contract. There are many other guides such as agency agreements, Incoterms or dealing with personal effects. Lastly, beware of customers varying the contract in ways that are not obvious. You might send an e-mail quotation stating the BIFA STC apply and the customer responds accepting your quote, but within the acceptance there could be wording that in effect sets aside a particular clause. If you do not challenge such a variation then it can count as an amendment in law.
INDEPENDENT CUSTOMS CLEARANCE SPECIALIST
Contact Universal Customs Clearance today to see how we can assist you with quick and reliable customs clearances
Call Nigel to discuss your requirements on sales@universalcustomsclearance.co.uk +44 (0)1304 801087
By air – Warsaw Convention (17 SDR): £17.96 per kg
By sea – Hague Visby rules (2 SDR): £2.11 per kg £704.37 per package
BIFA STC: (2 SDR): £2.11 per kg
By road – CMR (8.33 SDR): £8.80 per kg
(The SDR rate on 15 March 2022,
By air – Montreal Convention (22 SDR): £23.24 per kg
according to the IMF website, was 1.05655)
April 2022
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Policy & Compliance
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Current model
UK Single Trade Window
HMRC
HMRC
UK Single Trade Window
DEFRA
DEFRA
Home Office
Home Office
Trader/ intermediary
Trader/ intermediary
Call for evidence – an independent Customs regime
11:45pm on 2 May 2022) inviting respondents’ views on: • The Customs intermediary sector; • The Simplified Customs Declaration Process (SCDP); • The transit facilitation. The consultation document makes it clear that government intends to look at all aspects of how the frontier functions. The document clearly states: “This call for evidence (CfE) therefore includes a section to test with business whether the services the UK Customs intermediary sector currently provides are easily accessible, high- quality and cost effective.” BIFA will engage at every opportunity on this subject but, the structure and nature of the questions within the CfE require Members to respond in person.
The government wants your views on the Single Trade Window. While at the moment there is a lack of clarity about the functionality of this, the government seems to believe there are significant possibilities for cutting red tape
The freight forwarding/Customs intermediary sector – due to EU-Exit, COVID-19 and significant changes to IT systems – has endured a period of unprecedented change and stress over the last five years. Part of BIFA’s role is to represent its Members’ views to government and to promote the sector’s importance. For as long as the writer can remember, there has been talk of a Single Trade Window, but technology was never sufficiently advanced to allow it to function properly – now it is, in all probability. Up to a point government knows that it has increased the administrative burden on those trading with our former EU partners. So, it has to offset this as much as it can by simplifying all global trade, including with the EU. Unprecedented growth Government should remember that the systems and players who have made the frontier work have served trade well for many years. These players have facilitated an unprecedented growth in trade levels and successfully coped with the twin challenges of new systems resulting from the UK’s exit from the EU and the disruption due to the COVID-19 pandemic. The Single Trade Window (STW) has significant government funding – to the tune of
The questionnaire The document can be viewed at
Scan to access consultation
www.gov.uk/government/consultations/call-for- evidence-an-independent-customs-regime?utm _medium=email&utm_campaign=govuk- notifications-topic&utm_source=24ec9056-46cb -4759-b739-238f03c3788f&utm_content=daily Via its policy and regional structure, BIFA will consult with Members to ascertain their views, which can be fed back to government. However, the Association would encourage all Members to consider replying directly to government. If any Member wishes to discuss this consultation, please contact Robert Windsor (r.windsor@bifa.org) with a synopsis of your enquiry and the BIFA Secretariat will contact you as soon as possible.
£180 million, a clear indication of commitment and intent. However, at the moment there is a lack of clarity about its functionality and how it will be used. At the simplest level it is a portal to allow data to be submitted once and then disseminated to multiple government agencies. However, many of the discussions indicate that government feels that a STW could do much more, allowing much wider access to IT systems including multiple filing of data. On 7 February 2022, the government announced a 12-week consultation (closing at
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SAVE THE DATE 14 - 16 JUNE 2022 NEC BIRMINGHAM
Free to attend
We have already quoted on several jobs and made some fantastic new contacts. We also met with existing customers and was able to have a face to face conversation for the first time in a long time. We have already rebooked for next year. Joanne Gumery, Warehouse Commercial Manager
Multimodal 2022 celebrates 15 years of placing shippers, retailers, wholesalers, importers and exporters in front of exhibitors who offer the latest logistics and supply chain solutions. Whether you are a forwarder, 3PL, shipping line, haulier, port or equipment supplier, Multimodal offers a unique opportunity to make valuable face to face contact with new prospects and existing companies. LOGISTICS & SUPPLY CHAIN MANAGEMENT FOR CARGO OWNERS
Howard Tenens has met some of its largest customers over the years at Multimodal which is why we continue to exhibit each year. We are already counting down to the 2022 show! Elliot Ashton, Development Manager
Multimodal is a great place to meet up with customers and find new ones. Our return on investment has been excellent.. Tony Shally
EXHIBITION SEMINARS NETWORKING AWARDS
Contact us now for exhibiting and sponsorship opportunities www.multimodal.org.uk/exhibition +44 (0)20 7384 7760 | multimodalteam@clarionevents.com
BIFA Awards
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Among the aircraft that Kerry used to keep goods moving during the pandemic was the Antonov AN-124
AIR CARGO SERVICES AWARD SPONSOR
capacity all the more important. “Another success was that our sea-air service was probably as effective as waiting for conventional airfreight space,” Mallinson said. “We stole a march there – before things got really difficult at Jebel Ali, for instance, we had smooth ocean departures and 24- or 48-hour turnarounds at our facilities in Dubai and into the UK. We had to find what would be off-the-wall solutions under normal circumstances – and fortunately we are nimble and have an exceptional network.” Nothing was off the table, Mallinson said, highlighting the value of a flexible approach. Kerry had that mindset and found service partners with the same strategy. Fantastic service For instance, recalled Mallinson: “When London Heathrow was really struggling with queue times and handling issues, we were able to use some of the UK’s strong regional locations besides airports like Heathrow, Gatwick and Stansted. We had fantastic service at Glasgow Prestwick and Doncaster.” He expects that the industry is due for more of the same uncertainties and challenges in 2022. “Globally, as of 31 January there were still 36% less revenue flights than in 2020. That is quite a drop, considering 80% of global air freight moves on passenger flights,” he pointed out. “I still think there are more questions than answers in 2022. Of course we all crave normality – but there is nothing that perturbs us here at Kerry too much at the moment. “From our operatives’ point of view, they are looking to the future with more confidence and belief since the pandemic. They execute their tasks with more assurance that there are people in the business that they can lean on for advice, which increases their confidence in their decision-making process; they can think outside the box safe in the knowledge that nothing is unprecedented anymore.” This is the 33rd year that IAG Cargo, the single business combining the strengths of British Airways, Iberia, Vueling, Aer Lingus and LEVEL, has sponsored the BIFA Awards. The success of the UK Freight Forwarding sector remains as important as ever to Britain’s place in international trade. Our sponsorship of these awards underlines our commitment to not only promote the sector, but to continue working closely with the freight forwarding community to deliver more connections and opportunities for global growth.
How Kerry found radical solutions in the pandemic
Kerry Logistics Network won the BIFA Air Cargo Services Award for its performance during the COVID-19 pandemic. Kerry
transported over 1 million tonnes of cargo from Asia to the UK and launched a new transpacific airfreight service and an air-sea service via South Korea to help keep freight moving
David Mallinson, director of airfreight at Kerry Logistics (UK), said: “How we, as a company, have managed to navigate the pandemic so far has been extraordinary. I am very proud to say that it has been a collective effort.” Kerry moved shipments of hand sanitiser as well as a great deal of distressed ocean freight, including industrial spares, automotive parts, air- conditioning units – anything and everything, according to Mallinson. “We were also still moving perishables to China and Hong Kong in record volumes,” he added. The company was already historically aligned with industries like fast-moving consumer goods and e-commerce, and it was fortunate too that the pandemic played out as it did in the Far East – its home market. And Kerry’s strong experience base was a big factor in its success. “In our air freight departments we have people from an airline background who know how airlines work, and people from the charter market who understand how to get the best out of different aircraft in terms of loadability,” Mallinson said.
David Mallinson with the BIFA Air Cargo Services trophy
“For instance, with a passenger-to-freighter configuration, the initial cost was higher but we realised that by bringing inventory and volumes forward we could give a better performance at a lower cost than other options. You have to understand how a particular product will get the best value out of a particular aircraft.” It has been difficult to source aircraft during the pandemic, of course, making an understanding of how to make the most of any
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Tomorrow’s apprentices need you With skills shortages in many areas of the logistics sector, why not consider using apprenticeships to add talent to your workforce. They are not only great value but will add a new dynamic to your business. Here we provide a useful insight to how they work.
Non-levy payers only have to pay 5% of the cost to run the apprenticeship
Back in February, during National Apprenticeship Week (NAW2022), we held an online event for Members with apprenticeship expert James Billingham who kicked things off by dispelling a few myths. Myths • Apprenticeships are just for school / college leavers – FALSE! • They are just for people who underperformed at school – NOT TRUE! • They are just for new recruits – INCORRECT! • Apprentices will need to spend a lot of time away fromwork – FAKE NEWS! • Only big companies can afford to take on an apprentice – BUSTED! The basics Apprenticeships must last a specific time. For example, the International Freight Forwarding Specialist (IFFS) must last at least 18 months. During this time, the apprentice must spend 20% of his or her time off the job. Now, this does not have to be day release, but this type of learning must be relevant to the apprenticeship. There are many activities that can count towards this; the apprenticeship provider will be able to help you monitor this. All apprenticeships have key knowledge, skills and behaviours that apprentices must demonstrate. Towards the end of the apprenticeship, the learner must then go through an end-point assessment (EPA) with an independent company – again your apprenticeship provider will manage this. Business plan/considerations One of the fundamentals in making apprenticeships work is to get business buy-in; start planning early and make sure that
the line managers/mentors have time to spend with apprentices. If you can, take on more than one apprentice; that way they go on the journey together and share experiences along the way. It really helps. Make sure you recruit apprentices that suit the business needs. Ask yourself the following questions: • What is your staff retention rate? • What are your hardest-to-fill roles? • Are you clear on your commitment as an employer? • What would a job description look like? • Do you have the right staff to manage and support an apprentice? • What would success look like and how would it be measured? Also remember, that you could upskill existing staff via an apprenticeship. For example, they could do a degree apprenticeship and or development programme.
One of the fundamentals in making apprentice- ships work is to get business buy-in
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Industry Promotion
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Benefits Apprenticeships can bring many benefits to businesses, they: • Demonstrate investment in your people; • Create a culture of professional development; • Develop knowledge, skills and behaviours; • Provide opportunities to upskill existing staff as well as new recruits; • Support succession planning. Training partner You will need to appoint an apprentice training partner to manage the apprentice’s programme and before you do this, you should ask it: • Does it have a delivery model? • What resources does it offer learners? • How will it report on the apprentice’s progress? • What are its success rates? • Can it support with recruitment? Recruitment Whilst training providers can help with recruitment, our advice would be to do this yourself. You could offer internal recommendation schemes, or post on local social media groups and engage with your local school or college. You can also advertise for free on the government’s ‘Find an Apprenticeship’ website. Carl Hobbis, executive director at BIFA and responsible for training, said: “During our Members event in NAW2022, 81% said Customs procedures was the biggest skills shortage in their organisation. So, why would you not consider the IFFS standard to help address this? It is the only apprenticeship standard to have Customs as a mandatory module. “We also asked Members, ‘What are the main barriers preventing you from employing an apprentice?’ 53% said not having an in-house expert to help support with recruitment. Well, a good training provider can help with this and as mentioned earlier, it is so important for line managers and mentors to have time to encourage and develop the apprentice. This is vital. Without the investment of time it is very likely that the employer-apprentice relationship will fail. “Retention was the third biggest issue. We are seeing the bar shifting higher with starting packages ranging between £15,000 and £21,000 for entry level staff. Incentivise them along the journey and reward them on completion. He concluded: “This may seem a high range, and it is not for me to say what companies should pay and I realise it is about affordability. “However, employers need to bear in mind that young people also have financial commitments, cars, insurance, holidays, etc.” If you want to discuss apprenticeships in more detail, contact Carl Hobbis via email at c.hobbis@bifa.org There is also a lot of useful information on our website at https://apprentices.bifa.org/
This is great value when you consider that apprentices will get a large amount of training
Process and financials So how does it all work? Businesses are split into two categories: apprenticeship levy payers and non-levy payers. Levy payers are those businesses with a payroll of £3 million or more annually. The levy is charged at 0.05% of annual payroll and goes into a digital account to be used towards the apprenticeship training. Non-levy payers must pay 5% of the cost to run the apprenticeship. The IFFS has one of the highest price tags that could be agreed at £9,000, but in this instance the employer would only need to pay £450 in total (the government will pay 100% of the cost if the apprentice is aged 16-18!). This is great value when you consider that apprentices will get a large amount of training, with many also doing BIFA courses including the BTEC Customs qualification, which equates to around £1,400. As the employer, you must pay them a salary; after all, apprenticeships are real jobs.
We would like to thank James Billingham, of Skills Office Network (Logical Training), for his contribution to this article. https://www.skillsofficenetwork.co.uk/
April 2022
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In association with
Supporting
Delivered by
SHOWCASING DIVERSITY ACROSS LOGISTICS 23 JUNE 2022 - NEWARK SHOWGROUND Back for its second year, the Big Logistics Diversity Challenge is designed to promote the importance of equality, diversity and inclusion across the logistics industry and the business benefits attained when companies improve diversity by engaging teams in a series of fun physical, practical and mental team challenges. The event will bring together logistics professionals to look at how we can tackle diversity collaboratively and collectively in an informal setting with many of the leading companies in attendance. The event offers a perfect platform for industry to share best practice, network, team build and help shape what the profession should do next to support a more inclusive sector.
Join the fun with over 300 industry personnel and promote the business benefits attained when engaging a diverse workforce.
Enter your team today T: 01780 432930
E: info@biglogisticsdiversity.co.uk W: www.biglogisticsdiversity.co.uk
@biglogisticsdc /biglogisticsdc
@biglogisticsdc
Big Logistics Diversity Challenge
BIFA Awards
BIFAlink
www.bifa.org
Herbie Cobby after receiving his trophy at the BIFA Awards from Karen Palfreyman
APPRENTICE OF THE YEAR AWARD SPONSOR
colleague who left the company. He recalled: “Previously, I had been helping a colleague with some of the air export work; taking over the whole lot was a bit daunting – but I have learnt a lot more since he left because I have been thrown in at the deep end!” For his air freight duties, Herbie took a dangerous goods course. He is also now a qualified first aider. “I am focusing on air exports, but eventually I would like to get into out-of-gauge goods. I think it would be a good challenge, moving things that are of abnormal size or out of the ordinary in some way,” he added. New apprentices Herbie has helped induct new apprentices for Seetec and is hoping to have the chance to train up an apprentice himself in the not-too-distant future. He is well aware of the difficulties of attracting young people into freight forwarding, though. “This is an ageing industry and a lot of people who were due to retire in a few years’ time decided not to come back after furlough. There is not much young blood coming through; most people do not ever think about logistics or really know what freight forwarding is.” Herbie highlighted the importance of the Young Forwarder Network (YFN) as a tool to promote careers in logistics. “It is also good for young forwarders to meet people outside our own companies,” he added. “Over the past year I have had the pleasure of helping facilitate YFN events remotely, giving me the chance to interact with some of the great minds in freight. I look forward to future events and hope one day to be involved in the formation of a Yorkshire/Humber region to meet like- minded, local people who are passionate about the industry like myself.” Seetec Outsource Training & Skills is a leading provider of innovative training, education and recruitment. Established in 2009 Seetec Outsource has delivered thousands of successful programmes to a range of small and large organisations nationwide and helped many people into employment. Seetec Outsource provides Apprenticeships and Traineeships on a range of subjects at various levels. In May 2016, Seetec Outsource Training & Skills became part of the Seetec Group. Seetec is one of the leading public and business service providers in the UK and Ireland. Established for over 30 years, Seetec has helped businesses to grow, communities to flourish and people from all walks of life to reach their full potential.
of Seetec Outsource and Matt Dawson
Above and beyond
Herbie Cobby finished his apprenticeship in spring 2020 and has since been a full-time employee at GEODIS. Winning the BIFA Apprentice of the Year Award has cemented his determination to progress in the industry
Like many young people who complete A Levels, Herbie Cobby was uncertain what his next step should be. He felt university might not be for him and tried various jobs after leaving college, but while researching other options he came across the International Freight Forwarding apprenticeship and instantly thought this could be the right choice. “I had been interested in logistics and freight forwarding since studying economics and business at A Level – including modules on logistics, imports, exports and so on,” he said. “I wanted to be in an industry where I could grow and progress so I applied for the International Freight Forwarding apprenticeship with Seetec. “It was my two-year anniversary at GEODIS last week and if someone had told me before I started where I would be now, I would not have believed it,” Herbie went on. “Hull is a hard area for opportunities and when I was applying for jobs I knew I could do easily, but being rejected, I lost confidence in myself. When I was accepted onto the apprenticeship I was buzzing, and I have put a lot of effort into the job.”
Herbie hopes to focus on out-of-gauge goods in the future
That effort has certainly paid off, not only in terms of Herbie’s obvious confidence and enthusiasm, but also of course in the recognition he has won from BIFA – as well as from colleagues and clients who value his willingness to go above and beyond what is asked of him. Herbie started in sea imports and moved over to air exports when he took over the role of a
April 2022
15
PCB Project Cargo . Breakbulk
APRIL — 202
GRB CONVENTION HOUSTON TX USA CENTER
CONFERENCE & EXHIBITION
FUTURE PROJECTS: THE PREMIER EVENT FOR LOGISTICS PROCUREMENT FROM A PROJECT OWNER’S PERSPECTIVE Designed For Project Owners And Specialized Logisticians PCB Future Projects is a conference and exhibition developed with input from the project cargo and breakbulk community. Our mission is to create a more targeted and customer-focused event experience for visitors, speakers and exhibitors. Join market leading exhibitors that have asked for and helped to create an event that provides tangible return on investment.
The PCB Houston floorplan is now open and space is limited Visit www.pcb-expo.com to learn more.
PCB Project Cargo . Breakbulk
CONFERENCE & EXHIBITION
Events
BIFAlink
www.bifa.org
Face-to-face networking returns for our young forwarders
In February, BIFA’s Young Forwarder Network held its first networking event in two years in the London East region. With the pandemic having put sessions on pause, we were delighted to be able to bring our regional members together again. Whilst the virtual events have proved popular during the pandemic, enabling young forwarders to feel part of a community without restrictions, BIFA recognises the value that connecting freely face-to-face can add. At the event, we were joined by the fabulous Angie Belalij from Hyundai Merchant Marine as our guest speaker, who shared her ‘Famous 5’ career-boosting tips. With Members joining us from London, Essex and Heathrow, it was refreshing to step away from Zoom for the afternoon and network in person. If the enthusiasm of the London East region is anything to go by, BIFA is confident that the YOUNG FORWARDER NETWORK: Midlands: The logistics behind Birmingham 2022 Wednesday 27 April – 3:30 pm Guest speaker – Andy Blundell, general manager – expo, events & hospitality UK at Kuehne+Nagel.
Such inspirational people are coming up through this wonderful industry. I can’t wait to watch their careers develop. I am humbled and honoured to be invited as a speaker at the event. Angie Belalij, Hyundai Merchant Marine
future of our industry is in safe hands. Following the success of this event, we are
pleased to announce the details of two further events taking place in April:
YOUNG FORWARDER NETWORK: Heathrow: Handling air cargo Thursday 28 April – 3:30 pm Guest speaker – Mohammed Akhlaq, chief commercial officer UK & Europe at dnata.
Please note: These free events are just for young people or those new to the industry and only open to employees of BIFA Members.
To register for these events, scan this QR code to check out the event posts on our LinkedIn Page!
April 2022
17
BIFAlink
Policy & Compliance
www.bifa.org
Clarification on Rules of Origin Here BIFAlink looks primarily at Rules of Origin relative to goods covered by the EU-UK Trade Co-operation Agreement (TCA). However, we also briefly examine the impact of the UK leaving the EU on goods originating from other destinations
specific rules of origin. They are needed as supporting evidence to confirm the origin of the goods when manufacture alone is not enough to meet the product specific rules of origin. UK businesses should obtain supplier declarations from: • UK suppliers – in two cases: - If the supplied goods are simply being exported under preference without any changes to them; - If the supplied materials are likely to be incorporated into other goods that are then exported from the UK under preference. • EU exporters - If the materials or goods imported from the EU do not meet the TCA rules of origin, so cannot claim the preferential tariff, but some production has been carried out on them in the EU. - If the UK business plans to use those
Since 1 January 2022, BIFA has been receiving an increased number of enquiries regarding rules of origin. This is a complex subject, so it is important that exporters and importers understand its impact on the goods they ship. BIFA is aware that forwarders have been asked questions on this matter by their customers who, due to being unfamiliar with this subject, require additional clarity on some of the current guidance. Between 1 January and 31 December 2021, there was an easement on the requirement for
exporters to physically be in possession of supplier declarations at the time they issue statements on origin. From 1 January 2022, where a supplier declaration is needed to support the preferential status of the goods, a business must hold this at the time that it issues a statement on origin. The three most important elements to be aware of regarding preference claims are: Supplier declarations: these are the documents that suppliers provide to help establish whether the goods being exported meet the product-
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April 2022
Policy & Compliance
BIFAlink
www.bifa.org
National Careers Week is an annual celebration of careers guidance across the UK taking place each March. With unemployment remaining high and BIFA Members concerned about the shortage of certain industry skills, there has never been a greater need for careers guidance to be promoted. The campaign is traditionally centred on those currently in education, to inform and inspire them as they enter the world of work. To support the next generation in their decision-making, BIFA executive director Carl Hobbis and YFN Chair for London East Kyle Lawrence hosted an online session called ‘10 Reasons to consider a career in Logistics’. Kyle was a finalist in 2018 for ‘Apprentice of the Year’ in the BIFA Freight Service Awards and spoke about his early work experiences within logistics and why it is a good industry to forge a career in. In addition to inspiring school/college leavers, BIFA believes that this week was also a great opportunity for those already in logistics to focus on the next step of their careers. To support Members with upskilling their existing workforce, BIFA teamed up again with James Billingham from Skills Office Network for a free online event exclusive to BIFA Members providing an insight into how the apprenticeships route can resolve their ongoing skills shortages. We also shared a range of resources on our social media pages to encourage Members to expand their own learning, showcasing the range of training courses available from BIFA’s Training team. BIFA’s Young Forwarder Network held its latest virtual event the same week and was joined by former apprentice Sam Greenhalgh, sales VP for Europe at Zencargo. Passionate about our industry, Sam also hosts the industry podcast ‘What’s In The Box?’, bringing industry leaders together to discuss the hot topics and trends in logistics. In essence, every week is National Careers Week for BIFA and we remain committed to promoting logistics as an industry of choice for the next generation, plus supporting our Members in achieving their own career ambitions. Championing industry talent through National Careers Week
it imports. This can be used instead of a statement on origin, but the information, which has to be held by the importer at time of import is more detailed than a supplier’s declaration. It must include details of the origin/value of the goods/input materials and production processes applied to them. Goods moving through the EU en-route to the UK from another country As Free Trade Agreements (FTA) proliferate, so do the complications stemming from these agreements. If the goods are in ‘transit’ from the originating country via the EU to the UK, in all probability origin is preserved and preference can be claimed. Most government guidance on this matter includes either this or a similar phrase: “Transit through any third country is possible provided your goods remain under Customs surveillance. Goods must not be altered in any way on their journey. However, a limited number of operations such as the adding or affixing of marks, labels and seals may be undertaken provided this takes place under Customs supervision. Consignments may also be split, again provided this takes place under Customs supervision.” However, the rules are complex and, in many cases, not fully understood. There is particular confusion when goods are sold by a company in, for example, Norway to an EU-based (eg German) company; the goods qualify for preference under the relevant FTA and can be imported into the EU and enter ‘free circulation’. The goods are then sold by the EU entity to the UK. As the UK has an FTA with both the EU and Norway, many assume that preference may be claimed at the time of import into the UK. In fact in many cases, unless the goods had been under some form of ‘Customs control’ for the period of their movement from Norway through Germany to the UK, it is likely that preference cannot now be claimed when imported into the UK. BIFA is aware that many importers and exporters do not understand these rules; in fact since 1993 there has been no need to. The freight forwarder/Customs agent may well have an understanding of these rules but will not have sufficient knowledge to determine the origin of the goods. It is essential to remember that determining goods’ origin and preparing the relevant declaration remains the responsibility of the exporter. Where importers rely on ‘importer’s knowledge’, the Customs agent should satisfy itself that the importer holds all the relevant information to justify the claim. This may include seeking written confirmation from the importer.
materials in the production of goods it wants to export to the EU under preference, it can ask the EU exporter to issue a supplier declaration for non- originating goods with the details of the EU processing that has taken place. The UK producer can then include the EU production towards meeting the rules of origin, to apply bilateral cumulation to export the final product back to the EU under preference. Statements on origin: to benefit from preferential tariffs when importing into the UK from the EU (or exporting to the EU from the UK), the importer needs to declare how they know that the goods qualify for a preferential duty rate. One of the primary methods of evidencing this is the statement on origin completed by the exporter on the export invoice or as an annual statement. Importer’s knowledge: in the EU-UK TCA, an importer can claim preference using knowledge it (the importer) holds about the manufacturing/production process of the goods
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