CDS & BREXIT Lawrence Jasper Salim Kemal | AGENDA The new New - - PowerPoint PPT Presentation

CDS & BREXIT

Lawrence Jasper Salim Kemal

The new Customs Declaration Service New obligation

Brexit

| AGENDA

Legal Necessity A requirement to drill down to more relevant commercial data Biggest change since 1993 Much bigger than SAD H change in 2007 !

| CUSTOMS | DOUANE | ZOLL

On some entries Buyer and Seller required in addition to Consigner/Consignee Gross weights will be required More detailed INCOTERM information required Hugely more data on SFDs required (cost to rise to that of SDI or closer to it ?) More AI statements to add in, double to triple ?

| THE NEW CUSTOMS DECLARATION SERVICE

Multiple types of entries i.e. H1, I1, B1- Exports Less allowable mixing of customs procedure types so therefore they are like to be more entries. Allowed to have up to 999 lines on an entry so in this scenario a few less, but up to ten times larger, customs entries.

OTHER BIG CHANGES ARE

| CDS CUSTOMER MIGRATION | TIMELINE

Response messages & the notification of Duty and VAT taking place only after all the processing has been completed. Increased items per declaration – (999 items per entry) Additional declared parties - Buyer & Seller, Representatives (sub-agents), Holder-Authorisation. New look CPC’s, with multiple additional procedure codes. Multiple additional Tariff Codes for National measures such as Excise and VAT. Customs Entry Numbers are replaced with a declaration reference - looking similar to a Movement Reference Number (MRN) as seen on current CHIEF export declarations (much longer) Location of Goods (Change of codes). New Valuation data requirements (incoterm inflection points). Cannot mix main Customs Procedure Code types i.e. Free circ, IP, warehousing on same entry Reports will even larger and more complex !

| DESCRIPTIVELY SOME OF THE CHANGES ARE..

Prepare Exporters and Importers on the new requirements Change our procedures to harvest all necessary data Evaluate and then re-evaluate market for the charging costs for doing the new more detailed CDS entries (SFD !) Where are potential new clients going to be emerging from with BREXIT (massively increased volumes to process ! )?

| Logistics firm objectives

Up to 200,000 new (UK and a similar amount in the 27 MS) Exporters and importers who have not been performing EU exporting/importing EU but only dealing within EU New system to register. Those anticipating to commence export/import should acquire an EORI (VAT +3 digit) ASAP. Bolloré Logistics are No 1 in France and well represented in Belgium, Holland & other EU countries for integrated export/importing declaration (don’t forget ICS as well !).

| CUSTOMS CHALLENGES / OPPORTUNITIES:

CDS entries contain more data May take more time to complete Are currently harder to correct Have more stages of message responses to process

| CUSTOMS DECLARATION SERVICING

COSTS:

BREXIT timetable

Start of the interim period – March 30th 2019 End of the interim period – December 31st 2020

23/06/2016 19/06/2017 30/10/2018 29/03/2019

United Kingdom voted to leave the European Union End of UK-EU negotiations on withdrawal - proposal of a draft agreement by the EU negotiator to the EU Council Beginning of negotiations between the European Union and the United Kingdom

31/12/2020 End of the transition period, entry into force of the new agreement EU-UK 30/03/2019 Entry into force (possible) of the transition period until December 31th 2020 The UK is excepted to leave the EU

BREXIT numbers

Number of declarations predicted to quadruple ! From the current 65 million to 255 million declarations (one recent estimate) Modes of entries to/from Member States, modes Air, RoRo, Sea. RoRo being widely anticipated the one which we cause the most disruption due to lack of current infrastructure There is an increased value in UK Customs WH and Inward Processing regimes Increased value in being Trusted Trader i.e. AEO schemes to allow lower friction border.

BREXIT matters

Dover RoRo has up to 10,000 trucks a day (2,000 are automotive goods) Irish Land Border entries. Goods can cross several times in production cycle. Transit to and from Ireland going to/from France/Holland etc.. likely to expand hugely. Route 1 and Route 2 .i.e. paperwork and physical checks at the frontier to increase (already are ). Companies may need to vastly increase their deferment, call on international logistics company deferment may be too large to handle even for us in the industry.

UK Ports. There were over 2,000 Customs Officers and Agents on the South Coast alone. Dutch have already about thousand officers to prepare for CDS and BREXIT. France 250. UK?

BREXIT matters

A brand of

Q & A ?........