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Tag: customs

Platform for Preparation of Digital Customs Declarations

Posted on by David Priestman

Customs Support Group (CSG), provider of customs clearance and trade solutions, is introducing a new AI-powered Customs SmartAssist solution for documentation processing at all its locations in Europe to significantly enhance documentation efficiency and quality, while enabling faster movement of goods across borders.

As a specialist in customs digitalisation and automation, CSG already processes every second customs declaration digitally. With the Europe-wide rollout of AI-based document processing, this share is expected to grow even further – potentially setting a new benchmark for the industry.

The Customs SmartAssist solution uses artificial intelligence (AI), machine learning, and Optical Character Recognition (OCR) to process documents accurately in various formats and qualities – including handwritten information or low-resolution copies and mobile phone photos. The tool also takes language complexity away by automatically extracting all relevant customs-specific information and instantaneously translating it.

Designed to be self-learning, the SmartAssist solution flags any unclear data fields for CSG experts to review before submission. Once corrections are made, the AI learns from the feedback and continuously improves its ability to interpret and process similar documents accurately in the future. This minimises errors and significantly reduces processing times.

Thanks to its scalability, the SmartAssist solution can efficiently handle large volumes of documents. After the first round of testing in the United Kingdom, the efficiency of documentation processing improved by over 30 per cent even for complex goods declarations

John Wegman, CEO of Customs Support Group, confirmed: “Transferring, consolidating, and processing information from various documents consumes valuable time and is prone to omissions or errors, which can lead to delays in customs clearance, non-compliance risks or even fines. AI-powered document processing eliminates manual data entry, freeing our customs experts to focus on higher-value tasks such as reviewing customs declarations, resolving complex issues, and delivering personalised client support.”

Customs SmartAssist is already operational across CSG’s offices in the UK, Netherlands, Belgium, Italy and Ireland, marking a major milestone in the company’s drive to support its customers both physically and digitally. With a presence in 14 countries across Europe, CSG aims to achieve a wider rollout network in the second half of 2025, while increasing efficiencies by up to 50%.

As the demand for digital customs services continues to increase, the company anticipates passing over one million customs declarations through the SmartAssist system this year – focusing primarily on high-volume transactions. Given the scale and geographic reach of CSG’s operations, this initiative is poised to set a new benchmark for digitalization and efficiency in the global customs industry.

“A customs declarant typically needs several hours to input and check the data,” added Wegman. “AI and automation can do this in a fraction of the time. However, the finalisation of the customs declaration remains with our experts. Once the document has been completed by the AI, it still requires the complex expertise and judgement of our customs professionals – ‘Real Intelligence’ – to review all entries, sign off the declaration, and submit it to the authorities.”

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Navigating Peak Season Challenges in 2024

Posted on by David Priestman

The upcoming peak season in logistics presents a unique set of challenges influenced by multiple factors such as shifting consumer behaviors, economic fluctuations, and evolving technological trends. As retailers and supply chain operators gear up for this busy period, concerns are mounting about the potential impact of external disruptions, ranging from economic instability to global events. These variables create a complex environment in which even small changes can have significant ripple effects on supply chain performance. Businesses must remain agile and prepared to adapt quickly to maintain seamless operations and meet heightened demand during this critical time.

The Increasing Role of AI and Automation

Amid these uncertainties, AI and automation are poised to become key differentiators in how companies manage peak season logistics. Recent examples illustrate this trend. For instance, Amazon has been expanding its use of robotics and AI in fulfillment centers to handle increased order volumes more efficiently. The company’s use of AI-powered forecasting and route optimization tools has allowed it to manage inventory better and reduce delivery times, even as demand spikes during peak periods.

Similarly, FedEx has invested heavily in AI and machine learning to improve package sorting and tracking. During peak season, when millions of packages move through their network daily, this technology helps predict potential bottlenecks and reroute shipments accordingly. By integrating AI and automation into their operations, companies are building more resilient supply chains capable of adapting quickly to sudden changes like last-minute surges in order volumes or supply disruptions.

Monitoring Economic and Geopolitical Factors

Another significant concern for this peak season lies in the broader economic and geopolitical landscape. For example, recent reports highlight the impact of global inflation and fluctuating energy prices on logistics costs. Rising fuel prices, driven by geopolitical tensions and market instability, have pushed up transportation expenses, leading to higher shipping rates during peak periods.

In Europe, companies are also facing additional challenges linked to ongoing Brexit complications. UK retailers, for instance, continue to experience delays and increased costs due to new customs regulations and border checks when trading with EU countries. These disruptions are particularly evident during peak season, as the volume of goods moving across borders intensifies. Major European logistics firms like DHL and DPD have responded by investing in more automated sorting centers and AI-driven customs management systems to reduce the impact of these bottlenecks.

Moreover, the ongoing conflict in Ukraine has disrupted key supply routes and strained global trade, forcing companies to reassess their logistics strategies. Businesses reliant on goods moving through affected regions have faced delays, prompting many to seek alternative suppliers or routes. The recent instability in supply chains has underscored the importance of proactive planning and diversification.

Preparing for an Uncertain Peak Season

The convergence of these factors makes this peak season particularly challenging. Companies must prepare for multiple scenarios, as seen with retailers like Walmart and Target, who have been building up inventories early in anticipation of potential supply chain disruptions. In Europe, supermarkets and large retailers are doing the same, aiming to avoid stockouts during the critical holiday season. By leveraging technology, monitoring external influences, and developing flexible strategies, businesses are positioning themselves to manage the pressures of peak season more effectively.

The key to success lies in a proactive approach that balances efficiency with resilience, ensuring that supply chains can withstand both anticipated and unexpected disruptions during the busiest time of the year. With the holiday season approaching, those who have invested in predictive analytics, automation, and diversified logistics strategies will be better equipped to handle the challenges ahead.

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Certifications Enhance Trade and Compliance

Posted on by Keith McKinley

Third-party logistics (3PL) provider Kammac has been awarded both the Authorised Economic Operator (AEO) and the Fulfilment House Due Diligence Scheme (FHDDS) certifications, underscoring the company’s commitment to secure, efficient, and compliant supply chain services.

The AEO certification, endorsed by the World Customs Organisation (WCO), aims to improve international supply chain security and trade efficiency. Recognised in over 70 countries, certification holders work together to reduce customs restrictions and enhance cross-border trade operations.

As an AEO certified company, Kammac now benefits from prioritised customs procedures, enabling faster and more efficient import and export processes, including filings, inspections, and clearances.

“Achieving AEO status following HM Revenue and Custom’s (HMRC) rigorous six-month approval process marks a significant milestone for us,” said Leanne Lidell (pictured), Director of Compliance at Kammac. “The certification ensures simplified customs clearances and priority handling, meaning we can offer our customers more streamlined and reliable logistics services.”

In response to the needs of a long-standing global beverage client, Kammac initially attained AEO certification for its Wavertree site. Since then, all 15 sites have been included, further enhancing collaboration with global customers who require AEO status. The company joins its sister companies within the Elanders Group in 2023 who also are AEO certified, providing a powerful network to existing and new clients.

“With our global footprint, our AEO certification facilitates seamless collaboration with fellow members, strengthening the service we can offer to clients,” said Lidell. “This certification bolsters logistics, particularly vital for UK-bound goods amidst the post-Brexit landscape.”

Alongside AEO, Kammac’s commitment to ensuring compliance across its operations has been further underscored with certification gained under the Fulfilment House Due Diligence Scheme (FHDDS). This not only demonstrates Kammac’s adherence to stringent UK regulations but also signifies its capability to legally store goods for non-EU sellers, thus expanding its market reach and enhancing business opportunities.

Ged Carabini, CEO at Kammac, is delighted with the potential these certifications provide. “Achieving both AEO status and the FHDDS scheme gives our clients the confidence that Kammac delivers the highest quality service,” he said. “These certifications not only show our commitment to compliance but also signify our ongoing investment in supporting global supply chains for our clients, further strengthening Kammac’s role within the Elanders Group.”

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Advanced Supply Chain awarded EU AEO certification

 

Point of Origin Quality Control in Morocco

Posted on by Keith McKinley

Leading freight forwarding and logistics company, Davies Turner is launching the tried-and-tested point of origin quality control and compliance procedures developed for clients sourcing from Turkey, into a new operation for clients sourcing from Morocco.

The development has seen Davies Turner open a quality control inspection facility with its partner in Morocco for a large online fashion retailer, which sources product from the country, for shipment to fulfilment centres in the UK, the USA and mainland Europe.

Until recently, Davies Turner has provided in-country warehousing, consolidation and overland trailer services from Morocco to the client’s fulfilment centres in the UK and mainland Europe, as well as air and ocean freight services to the fulfilment centres in North America.

Quality control on the commodities contained in those shipments typically took place at the fulfilment centres once the trailers arrived at destination, with products not featuring on the retailer’s website as being available for order until they had cleared all quality control procedures after delivery to the fulfilment centres.

With the new system, those quality control procedures will take place upstream in Tangier. This means that any items from a consignment that are selected for a quality control check, which fail to meet the online retailer’s quality achievement rate, will achieve an earlier fault/concern capture from the consignment origin, enabling them to be returned to the supplier in country for reprocessing.
This will facilitate a reduction in the possibility of ‘sub standard’ product departing from the origin hub in Morocco, which improves freight and transportation costs, whilst also reducing ‘sub standard’ product arriving at the fulfilment centres overseas, improving space and labour costs at those centres.

Alan Williams, Director of Davies Turner & Co Ltd says: “Based on past experience in Turkey, this re-engineering of the management of these particular aspects of the online retailer’s supply chain should improve the overall transit times from receipt of consignments in Tangier to availability on the online retailer’s website for purchase. The point of origin quality control process takes place on the day after arrival of the shipments into the Tangier freight hub.

“The re-engineered service is underpinned by our award-winning P2D (purchase to delivery) software system. This is a system that has been designed in house by our IT and business analyst team, which provides an online portal that enables customers to monitor and manage shipments at SKU & Purchase Order (PO) level, delivering full visibility of products moving through their supply chain for all concerned.

“By re-engineering the part of the online retailer’s supply chain for which we are responsible we are improving visibility from origin, of product quality, appearance, composition, compliance and presentation. Through the application of the P2D online portal, we are improving reporting tools for the online retailer on supplier trends, performance, developments and successes. We are also improving lead times for the client from point of origin reception through to the the availability to sell, whilst reducing costs at various points in the supply chain.”

The Name’s Bond, Dry Bond

Posted on by Keith McKinley

Ambitious logistics fulfilment specialist Europa Warehouse has fully achieved Customs Warehouse Authorisation by HMRC, marking the next major step in its warehouse investment programme to better support the pain points of traditional and ecommerce retailers.

This latest authorisation means that Europa Warehouse is authorised to store general goods that are subject to customs and VAT. This, coupled with, Europa’s ‘wet bond’ accreditation provides a real advantage for customers managing tight cashflows, allowing them to suspend customs, excise and VAT payments until their goods are sold.

Dionne Redpath (pictured), Head of Warehouse Division and COO of Europa Worldwide Group, comments: “With the current economic headwind putting strain on ecommerce, retailers and wholesalers everywhere, many of our customers are managing tight cashflows. This is pain point we have a long-held ambition to solve.

“Customs Bonded Warehousing can assist, allowing traders to import goods into the UK, hold them in the Bonded Warehouse without having to outlay Duty and VAT until goods have been sold and dispatched. For example, if an importer purchases gym equipment which attracts four per cent duty, the duty and VAT will be suspended until the importer sells the cargo in the UK.

“This is a real cashflow benefit because it means goods can be stored ahead of seasonal peaks without our warehouse customers footing heavy duty costs immediately. Instead, businesses can accurately anticipate supply and demand, while only paying necessary duties on items that leave the warehouse, typically after they have been sold.”

Europa Warehouse has operated Wet Bonds at each of its sites for some time, giving importers or sellers of alcohol the ability to delay costly excise duties until items are picked for sale and dispatch. The UK’s leading gin subscription box, Craft Gin Club, has benefited from this since its Dragon’s Den success in 2016, and continues to utilise Europa’s bonded infrastructure for forecasting supply and demand.

The Customs Warehouse Authorisation has been awarded to Europa following an extensive auditing programme with HMRC, who evaluated the infrastructure and security in place for each site. This was co-ordinated with operational teams across the Group, including facilities, project management and customs compliance teams.

Redpath continued: “Obtaining any accreditation is tough but those awarded by HMRC are especially rigorous, for obvious reasons. The HMRC officers completing the audits gave us positive feedback and, as a result, we’re really pleased to be able to extend our service offering beyond excise goods in this regard”.

Customs Warehouse Authorisation Across 3PL Sites

Europa’s portfolio of warehouses in Dartford, Birmingham and Corby, offer over one million sq. ft combined of dedicated warehouse and logistics space and are now fully authorised customs warehouses. The most recent investments within the warehouse division have been the construction of the £60m Corby warehouse, which is capable of storing up to 100,000 pallets and processes up to 50,000 units of goods per day through its £11m automation system.

Europa Warehouse is part of Europa Worldwide Group, an ambitious independent logistics operator with two other divisions, Europa Road and Europa Air & Sea. The company has been featured in The Sunday Times Top Track 250 for three years. Europa has invested £5 million in its innovative market-leading product, Europa Flow, providing a frictionless flow of goods between the EU and the UK post Brexit. The group employs over 1,400 people with 29 international sites in the UK, the Republic of Ireland, Europe, Hong Kong, China and the UAE. The global operator recently reported a record turnover of £302m for the last 12 months, as of August 2022, and remains on track with its ambitious investment programme.

Detection Dogs have Nose for Prohibited Cargo

Posted on by David Priestman

DB Schenker in the UK is using free running explosive detection dogs on a daily basis to detect prohibited items from certain airfreight shipments. The dogs trained to screen cargo are from a variety of breeds and chosen specifically for their sense of smell and include Spaniels, Labradors, German Shepherd or Golden Retrievers.

The highly trained dogs receive between six and twelve months intensive instruction before they become part of the team and are particularly chosen for their ability to detect explosives. A new cohort is currently also in training to be able to sniff out lithium batteries. They are operating at Heathrow and Manchester and will soon also feature at Glasgow.

“The speed and accuracy of the screening they undertake has become an essential part of our operation and they give us a reliable method of detecting certain items which would otherwise prove difficult using other approaches”, says DB Schenker’s UK Aviation Security Manager, Ian
Dallow.

Multiple UK locations

Not only are the dogs used to search regular airfreight shipments, but their keen sense of smell makes them ideal for outsize shipments which have been tendered as airfreight but are too large to pass through an X-Ray machine. The dogs can discover anything untoward in such a shipment much faster than a manual search by humans and this ability to expedite the screening process ensures swift and efficient movement of customer goods.

Speed and accuracy when using dogs

DB Schenker personnel at its multimodal locations around the country are involved in preparing freight for screening and ensuring the screening activities are carried out in accordance with strict regulations, so the use of dogs provides a highly effective additional screening method. The purpose of using the dogs is to look for things that aren’t supposed to be there. They are looking for prohibited items, for example, a part of an explosive device. There are different rules for cargo and passenger aircraft so it is important to be fully conversant with all rules which apply to each aircraft type. A knife in a cargo shipment may not be dangerous, but may be prohibited in baggage. “We’re looking to prevent any prohibited articles getting onto an aircraft and to prevent unlawful interference with civil aviation,” adds Dallow.

 

New USA-UK Air freight Solution

Posted on by Keith McKinley

With expertise in logistics and worldwide transport, cargo-partner is pleased to announce the introduction of a new air freight solution from Chicago in the USA, to specifically support customers with the export of goods to the United Kingdom.

cargo-partner’s new air freight consolidation between Chicago and London Heathrow Airport commenced on June 1, 2023 and is already supporting local and international customers. The service provides weekly departures, with an in-house team of trade experts overseeing the service.

The cut-off date for goods arriving to cargo-partner’s Chicago warehouse is Thursday each week, with the team finalising all arrangements for a Sunday departure. The goods are routed by air from Chicago O’Hare International Airport (ORD) via Toronto Pearson International Airport (YYZ) and then on to the final destination of Heathrow Airport (LHR) in London, UK.

Customers benefit from cargo-partner’s network of office branches across the USA and the UK, providing local knowledge and expertise, as well as access to a gateway of further airport, storage and transport connections within both countries and the wider continents.

Speaking about this new solution, Ralf Schneider, President cargo-partner USA & Regional Director Americas, said: “We’re excited to continue to expand our global network and create reliable air capacity for our customers between the USA and the UK. Introducing this regular air console to the market will support businesses on both sides of the Atlantic Ocean with a cost-effective, flexible air freight solution.

“Our goal is to provide a reliable service for general cargo shipments originating in the Midwestern US. Thanks to our extensive network and expert in-house customs teams, we can also offer customs, brokerage and final mile services at competitive rates.”

cargo-partner is a privately owned full-range info-logistics provider offering a comprehensive portfolio of air, sea, land transport and warehousing solutions. With 40 years of expertise in information technology and supply chain optimization, the company designs tailor-made services for a wide range of industries to create competitive benefits for its customers all around the world. Founded in 1983, cargo-partner generated a turnover of over 2.06 billion euro in 2022 and currently employs more than 4,000 people worldwide.

Post-Brexit Border Check Delays

Posted on by David Priestman

Following reports that post-Brexit border checks for EU imports are to be delayed (for the fifth time), Andrew Thurston, Customs Duty & Indirect Tax Consultant at MHA, says inflation has led to the government’s latest border check postponement, but frustration among businesses will be growing with each delay:

“Another post-Brexit border check delay will be no surprise. The government is reluctant to place additional costs on businesses and risk pushing inflation higher. The most likely scenario is that border checks will be delayed by 3-6 months. Those businesses that invested time and money to prepare for the checks, only to see them delayed again, will be frustrated. We should be encouraging firms to think ahead but those who did repeatedly see their good efforts go to waste. While unlikely, there will be businesses who would welcome some form of compensation, particularly as this is the fifth delay to border checks.

“It is very important to understand that the risk for businesses from these checks (when they finally arrive) is not so much additional cost but administrative pitfalls. For example, exporters could see costs of around £200-£250 per consignment once checks are implemented. Yet the addition of any new certification increases the likelihood of errors and delays. Especially if you deal in fresh produce, getting held up at a port can spell trouble for the whole consignment potentially ruining it.”

Government can’t keep kicking border checks down the road

“Smaller businesses with a high exposure to the EU will need to make sure that their certification is up to date regularly. Animal product businesses in particular will need to have several additional documents, including veterinary certificates,” Thurston concludes.

Ready for the New EU Import Checks?

Posted on by David Priestman

As proposals for new UK border import checks have now been announced, logistics and worldwide transport specialist cargo-partner is reminding importers to get ready and be prepared.

New import checks for all goods coming into the UK have been expected since the Brexit trade deal. Now the UK Government has provided a draft Border Target Operating Model, setting out a new approach to importing into the UK that is expected to be progressively introduced from the end of October 2023.

cargo-partner can support customers to prepare for these new checks and ensure they have the best solution in place to support both their import and export requirements.

Neil Murray, Managing Director for cargo-partner UK, said: “cargo-partner offers a dedicated customs clearance service, as part of our comprehensive range of transport solutions. Our UK and Ireland teams are experienced in connecting shipments across the Irish Sea, across the English Channel and supporting customers with the movement of goods between Great Britain and the rest of Europe, so we’re always up-to-date on the latest customs checks. We offer comprehensive customs brokerage services, assisting our customers with documentation, duty management, and trade compliance. By partnering with cargo-partner, our clients can navigate the complexities of customs procedures with confidence.”

With over 200 employees specialising in customs clearance and brokerage, based across 160 offices and 40 countries, cargo-partner can provide tailored and personal solutions to and from any location in the world.

cargo-partner is a privately owned full-range info-logistics provider offering a comprehensive portfolio of air, sea, land transport and warehousing solutions. With 40 years of expertise in information technology and supply chain optimization, the company designs tailor-made services for a wide range of industries to create competitive benefits for its customers all around the world. Founded in 1983, cargo-partner generated a turnover of over 2.06 billion euro in 2022 and currently employs more than 4,000 people worldwide.

Precise, Comprehensive Data in Air Freight

Posted on by David Priestman

On March 1st the EU customs safety and security system, ICS2, was launched for the air freight industry. In a transition period that has been extended through June 30, 2023, airlines have more time to adjust to the new procedures. “Air freight forwarders should use this period to ensure that they can provide the airlines with the additional data required,” advises DAKOSY authorized officer Dirk Gladiator. This includes the commodity code as well as the complete addresses of both the original sender and the final recipient.

With ICS2, the EU is introducing a unified and centralized procedure for dedicated risk analysis for goods from third countries, which begins even before the goods are loaded in the country of export. “The introduction of ICS2 in air cargo is a milestone. For the first time, we have a customs procedure with only one central European entry door instead of 27 national doors,” says Gladiator, assessing its significance. In the long run, the EU Directorate General for Taxation and Customs Union (TAXUD) plans that the vast majority of customs processes will be bundled via the specially-created Shared Trader Interface (STI).

In addition to the STI central reporting point, there are other innovations that will be implemented with the ICS2 customs system. In future, the declaration process will have two stages. Up to now, the Pre-Arrival notification (latest submission four hours before arrival of the aircraft) has already been in effect. A further notification has been added, the so-called Pre-Loading, which must be submitted as early as possible, in any case before loading begins. This information can be submitted by the airline or – what is new – also directly by the freight forwarder. The latter is called Multiple Filing. “Due to the extension of the deadline for airlines until June 30, 2023, the time window for Multiple Filing has been pushed back. For freight forwarders who want to participate, this is an important update. Conversions can occur between July 1 and Oct. 2, 2023, based on current information,” Gladiator explains.

In any case, the participating service providers must deliver more comprehensive data that meets a very high standard. Gladiator draws attention to this: “It is high time for freight forwarders to verify whether they can provide ICS2-compliant data. When an airline participates in the new procedure, the freight forwarder using that airline must also be able to provide the information required for Multiple Filing. Otherwise, the goods will not be loaded.

Transition period extended: freight forwarders should use window of opportunity to conduct review

Overview of required data reliability
For air freight, forwarders or loaders must provide the following additional data compared to the current ICS procedure:
* the complete address of the original sender,
* the complete address of the final consignee,
* the commodity code in the form of a six-digit HS code,
* EORI (the successor of the customs number at EU level) of the consignee.

It is important to note that the information must be properly structured, for example, a postal code must be entered with five digits. Otherwise, the data will not be recognized and this may lead to disruptions in the process. The EORI of the consignee is not technically a mandatory ICS2 specification. However, if the specification is available (the consignee is located in the EU), then the specification should be made. This is also underlined by the fact that the EORI is mandatory for the immediate follow-up procedure (Temporary Storage) in many EU member states and is therefore already required by the airlines.

Even if this part of data submission is more complex than before, the process as a whole is simplified and also made safer and more reliable for all involved, says Gladiator. He motivates participants to pass on the information as early as possible: “The sooner the airline has the data, the sooner possible errors can be identified and corrected, if necessary.”

 

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