Priority Freight Group PANDEMIC, THEN BREXIT… WHAT’S NEXT? June 2020
ABOUT ME Andrew Austin Frequent public speaker championing thought leadership Director and board member at Priority Freight Experienced logistician With over 30 years’ experience
THE TIMELINE COVID-19 UK lockdown UK lockdown pandemic outbreak eases begins Jan 2020 Mar 2017 Feb 2020 Jul 2020 Dec 2020 Jan 2021 Mar 2020 Jul 2020 Dec 2019 Article 50 Deadline for Transition New UK-EU UK Brexit transition triggered leaves EU period begins transition extension period ends agreement begins
JANUARY 2021
INCOTERMS (EXW) EX-WORK (EXW) TRADE TERM FACTORY DESTINATION WAREHOUSE FIRST PLACE CARRIER SELLER’S BUYER’S OBLIGATION OBLIGATION ! TRANSFER OF RISK Buyer assumes all responsibilities and risks
INCOTERMS (FCA) FREE CARRIER (FCA) TRADE TERM FACTORY DESTINATION WAREHOUSE FIRST PLACE CARRIER SELLER’S BUYER’S OBLIGATION OBLIGATION ! TRANSFER OF RISK Delivery can be at seller’s facility, forwarder’s warehouse or airport terminal
POST-BREXIT CUSTOMS PROCESS Export procedures Customer books job. Goods collected by road completed in supplier Customer/shipper provides transport. Incoterm as country using Priority commercial documentation . specified by the customer. Freight/agent. EU Following export entry, Priority Freight to complete Permission to progress to Priority Freight ensures Good physically leave pre-entry or alert nominated port of exit provided by export EAD/MRN is issued country of origin. agent as appropriate. customs in supplier country. to driver. CUSTOMS Vehicle registration Goods move to load port and status autodetected (EU office of exit). Goods on arrival at port of exit Exit EU via port of exit. must be accompanied by or driver provides EAD/export MRN. EAD/export MRN. (Pre-entry completed by Priority Freight/agent) Good declared at import in Goods delivered to UK during transit to UK port. Driver quotes Any applicable taxes paid. customer’s specified minimise any customs import MRN/entry number. UK address. clearance delays). • EAD (export accompanying document) • MRN (movement reference number)
CHALLENGES 02 04 01 03 05 TRANSPORTATION SOLUTIONS STORAGE Management of Offer road, air, and Provide the additional the expedited facility of a customs sea-based solutions shipments in terms CUSTOMS CUSTOMS BROKER warehouse and an as appropriate. of their transportation. external temporary storage facility. Provide the support Offer customs to manage the clearance capability appropriate customs or management channels out of the of customs brokers country of origin to the as agreed with country of destination the customer. (from or to the UK from varied global locations).
CUSTOMS STORAGE EXTERNAL TEMPORARY CUSTOMS WAREHOUSING STORAGE FACILITY (ETSF) REQUIREMENTS REQUIREMENTS • Inventory link (CSP) • WMS system • CCG for potential debt • CCG for potential debt • Designated area & cage KEY POINTS KEY POINTS • Unlimited storage length • 90 days storage limit • Cargo must be cleared at arrival port • Permits movement of before moving to customs warehouse uncleared cargo inland • HMRC approved • Border Force controlled COMMON USES COMMON USES • To unload uncleared cargo • Long term storage of goods under prior to a customs entry being duty suspension completed – commonly used for groupage containers APPROVED CONSIGNEE/ CONSIGNOR FOR TRANSIT CFSP/EIDR FOR CUSTOMS WAREHOUSE
WHAT’S NEXT? UK lockdown eases Jul 2020 Dec 2020 Jan 2021 Jul 2020 Deadline for Transition New UK-EU transition extension period ends agreement begins
WHAT DOES THIS MEAN? Increased likelihood of a ‘no deal’ Brexit Trade terms set by World Trade Organisation (WTO) £ Tariffs affecting competitiveness of goods
A CHANGING LANDSCAPE
THANK YOU For more information about the implications of Brexit, visit: priorityfreight.com/Brexit A copy of these slides may be downloaded from: priorityfreight.com/AutomotiveEV
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