Farsound Aviation profits from e-Customs solution

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has helped Farsound Aviation, a prominent service provider for the world’s aerospace industry, to improve its profitability by automating compliance with UK/EU customs regulations with the Descartes e-Customs filing solution. The use of Descartes e-Customs resulted in annual cost savings of thousands of pounds.

“Before using Descartes e-Customs, our business was shedding a large amount of costs associated with import duties due to inefficient filing practices,” said Ian Burley, Operations Director at Farsound Aviation. “Our investment in Descartes’ solution was easily justified based on the duty savings alone and we have enhanced our overall compliance by automating inbound and outbound declaration processes from within one advanced solution.”

Farsound Aviation provides parts distribution, logistics and supply chain management services to customers in the aerospace repair industry, all over the world. Farsound imports the majority of its materials from the US, Europe and the Far East, which are then distributed to the company’s global customer base. The import and export customs and excise filing process was a significant burden for the Farsound Aviation team before the deployment of Descartes e-Customs helped them to gain control of the customs filing process and minimise their spend.

Descartes e-Customs is a secure, web-based solution that can help filers submit the data to HMRC and other government agencies from within a concise, easy-to-use interface. From template-driven declarations, client-specific data and the ability to duplicate previous declarations, Descartes e-Customs can adapt to the multiple ways that companies operate.

“We’re pleased to help Farsound Aviation improve control of its customs processes,” said Pol Sweeney, VP Sales and Business Manager UK for Descartes. “The integration with Descartes e-Customs has allowed Farsound Aviation to manage inbound and outbound declarations with one easy-to-use application, which has led to significant cost savings.”

Expert Customs overcomes Brexit challenges with e-Customs solution

Descartes Systems Group, a global leader in uniting logistics-intensive businesses in commerce, has announced that Expert Customs, a recently established customs agency based in Dartford (UK), is using Descartes’ e-Customs solution to enhance business operations with its UK-EU trade offering and provide customs compliance for customers.

“Following Brexit, we saw the demand for a smooth and efficient customs declaration process grow,” said Kasia Gancarz, Customs Clerk, Expert Customs Ltd. “We realised a great opportunity to provide assistance to other companies looking to import to the UK from the EU. After implementing Descartes’ e-Customs to help our Expert Joinery operations, we saw how straightforward the e-Customs solution made imports to the UK.

“With the continued and unparalleled support from the team at Descartes, we were quickly set up and able to implement customs clearances within weeks and offer a solution to other businesses struggling with navigating Brexit complexities.

“The solution is very user-friendly, the online training videos and step-by-step guides are detailed and easy to follow. We are looking forward to growing our customs business and continuing to work with Descartes as we offer both import and export solutions to our customers.”

Expert Customs is affiliated with Expert Joinery Ltd, an importer of windows and doors from the European Union. Expert Joinery first sought the help of Descartes for a particular shipment it was importing from Poland in February 2021. With many businesses struggling to navigate Brexit, often made more difficult with language barriers and the customs declarations required by HMRC, Expert Joinery quickly identified an opportunity in the market to support other small businesses importing to the UK.

Establishing itself as a professional customs agency with the help and support from Descartes’ e-Customs solution, Expert Customs now provides an essential service to other businesses seeking to overcome the challenges faced with importing goods to the UK following Brexit. Initially, Expert Customs was completing 250 declarations per month, rapidly increasing four-fold on projected volumes to 1,000 a month, as a result of the success of its newly established customs agency.

Pol Sweeney, VP Sales and Business Manager UK for Descartes, adds: “It’s very exciting and rewarding to support exemplary businesses such as Expert Customs to grow and prosper through using our e-Customs solution by providing effective and efficient technology to enable straightforward customs processes. It has been a pleasure working with Expert Customs to support its operations and help develop its offering for customers and we look forward to our continued partnership.”

 

New Year, New Customs Provider?

3PL specialists Gefco explain why it could be vital to review your customs partners for 2021. 2020 was a year like no other for many manufacturers and their supply chains. It posed challenges that will continue to test even the most resilient of manufacturing businesses as we steadily move towards a global recovery. Of course, all this also comes at a time when we’re witnessing some of the biggest shifts in international trade for over two decades.

Making the transition from free and open trade between the EU and UK to the current regulations has been especially difficult in this climate and indeed, many have struggled to cope or adequately prepare in time. Now that we’re into the New Year and beyond the initial adjustment period it is vital that your business is working with an overland logistics partner that is going to deliver for your business.

At Gefco, we’re helping numerous businesses navigate this tricky period. With 17 Authorised Economic Operator certifications to our name, customs operations in 118 countries and over 50 years of experience in the trade and customs sector, our specialists facilitate the customs services that manufacturers need to ensure operations run smoothly.

Even during simpler times, efficient and cost-effective logistics planning can be a challenge. The new wave of rules and regulations which have come into force now that the UK-EU border is reinstated will aggravate that challenge, creating original and complex demands on UK manufacturers, who will often need to re-engineer their processes and reallocate their already overstretched
time, teams and budgets.

The process of ensuring products are customs-compliant can often be complicated by fragmented information, confused communications and poor visibility. When it comes to ensuring better control of crossborder operations, Gefco focuses on three pillars, which it calls the three Cs: Consolidation, Connectivity and Collaboration. The ideal 2021 logistics partner will help you achieve these through a full audit of processes and flows, and through the use of technology to connect remote operations, enable your teams to store and access all important documentation in one place, and give you complete visibility of your cross-border operations.

In manufacturing businesses, adaptability is crucial; whether it’s responding to changing circumstances or customer demands, the ability to adapt has a direct impact on profitability and business success. To ensure this, manufacturers need experts who are approachable, responsive and well-equipped. The ideal customer partner will have every post-Brexit eventuality covered. In Gefco’s case, we can lean on an integrated network of national and international hubs, and services that cover the full range of over-land freight options, including full load (FTL), less than load (LTL) and groupage.

Similarly vital to the success of manufacturers in 2021 will be the steady and reliable flow of raw materials into the UK. Assessing how Brexit might have affected the flow of the materials businesses need to manufacture their goods is a business imperative. Amongst the options to consider, are the utilisation of new Smart Borders in France – an IT solution based on anticipated customs formalities which can help deliver compliance, as well as time and cost efficiencies. Gefco’s experts can help manufacturers navigate this new frontier to help ensure manufacturers are maintaining that all-important steady flow of raw materials.

It’s difficult to overstate the value of having an expert logistics partner to lean on during challenging times. And with trade negotiations having gone right down to the wire and creating so much uncertainty and confusion, it’s more important than ever that manufacturers have a dependable and capable supply chain partner: one that will help facilitate getting goods to where they need to be, safely and securely, regardless of the new levels of complexity that Brexit has brought.

Manufacturers Urged to be Prepared for end to Brexit Transition

A top logistics head is urging logisticians at UK manufacturing businesses across the UK to heed advice, so they’re prepared for the new reality when the Brexit transition period comes to an end.

Chris Mills, Director of Account Management, Transportation at C.H. Robinson Europe, the multi-modal transportation platform provider, said: “Not all UK businesses are prepared for the changes the end to the transition period will bring to their customs procedures and may still wonder what it could mean for their own shipping processes. A major reason for some companies’ lack of preparedness could be attributed to Covid-19 with the pandemic demanding so much business attention that it has left little time for planning for next year.

“With just a few weeks until the transition period with the EU, time is running out. This is why we have gathered critical, up-to-date information, comparing the current trading situation to the landscape as we see it post-the end to the transition period , to help those shipping goods to the EU to stay on top of developments.”

Mills points to a number of considerations manufacturing businesses will need to be taking action on if they haven’t already. “UK firms that export to the EU will need an Economic Operators Registration and Identification (EORI) number to move goods between Great Britain and the EU. It can take up to one week to obtain one, so companies need to apply now. The UK will become a ‘third country’ when the transition period ends which will mean extra administration chores for companies that trade between the two parties. Numerous customs declarations will need to be submitted when trading with EU countries, and relevant duties may have to be paid. Failure to comply may lead to shipments being delayed or blocked.”

Mills added: “Logisticians should immediately familiarise themselves with international commercial terms and conditions, such as Incoterms 2020, which is a standardised and globally-recognised set of rules that cover costs, obligations and risks between trading partners.

Impact of VAT, customs and shipping costs

Mills also warned UK transport companies about the implications of VAT, customs and shipping costs. “The EU VAT scheme won’t be valid for a ‘third country’ and VAT will need to be paid in the UK when exporting from the EU. The final arrangements on VAT are dependent on the outcome of the negotiations. Whilst UK businesses will no longer have to collect any VAT on products sold to EU customers, which could positively lower prices, they will also no longer benefit from the EU VAT refund system. For UK businesses importing goods, VAT will be levied on imports of goods from the EU.

“When it comes to custom and shipping costs, it’s likely new customs charges and other fees could be introduced when trading between the UK and EU. If costs are passed onto EU customers, it’s important they know in advance. If they’re charged without prior warning, they can refuse to accept the goods. Businesses will then be obliged to cover customs and returns costs. These are all costs companies need to be upfront about with their customers.”

Other European shipping considerations

The UK government will be providing support to ports, airports and rail terminals to ensure sufficient infrastructure is in place. Despite this, queues and delays are likely and clearance times are likely to increase for outbound vehicles.

Warns Mills: “Under current EU law, citizens have the right to return a product within 14 days. This will no longer be mandatory next year for shipments outside the EU. Firms will need a solid strategy, so that all parties are aware of terms and conditions and of any costs that may be incurred, as offering returns won’t be as easy as they have previously been. Having such a strategy in place is very important, especially for the retail industry, since how a retailer handles the returns process influences customers’ perception of their brand. Brexit is complex and making preparations can seem overwhelming, but businesses need to plan now so they’re prepared, whatever the outcome, in January 2021.”

Brexit: Your Customs Guide

The Brexit clock is ticking down to zero. Is your business ready? Customs software company Descartes experts explain what you need to know and how to prepare, regardless of any UK/EU trade deal.

In theory, 2020 should have been the year of ‘Brexit Preparation’, allowing time for businesses that trade with the EU to familiarise themselves with the new customs requirements and plan accordingly. In reality, 2020 has been a year like no other, filled with mass disruption and uncertainty caused by the pandemic. To say that businesses had been distracted would be a significant understatement.

Yet, the final Brexit deadline is approaching fast, and the lack of preparedness is concerning. Andrew Tavener, Head of Marketing at Descartes, urges businesses to act now. “While the supply chain disruptions caused by COVID-19 have been devastating for many, the customs complexity post-Brexit could bring far greater disruption than we have just experienced. Action must be taken – fast,” he urges. Ready for Brexit? Independent research undertaken by Descartes clearly illustrates this point:

  • – Just 18% of UK businesses believe they are prepared for a ‘no deal’ Brexit.
    – COVID-19 has disrupted two thirds of businesses’ Brexit preparations.
    – 67% of large firms are very or extremely concerned about the impact of Brexit causing longer delays in their supply chain.
    – 40% are concerned about customs declarations impacting their business post-Brexit.

The Brexit transition period ends on December 31st. So it’s easy to see why the lack of certainty surrounding the deal/no-deal between the EU and UK is undermining business clarity. In the autumn 2020 Descartes research 52% thought a UK-EU trade deal was unlikely to be achieved in 2020, yet just 18% were prepared for a ‘no deal’ exit from the EU. The biggest concern in terms of Brexit’s impact on cross border trade is delays to the supply chain (45%). 67% of larger firms are very or extremely concerned about longer delays in their supply chain. Over two thirds (68%) of
healthcare supply chain managers are also concerned about supply chain delays. Tariff payments (40%) and customs declarations (40%) are the next highest concerns.

These illustrate how those organisations and supply chain managers that already have experience of customs declarations have far greater concern about Brexit implications compared to those that have yet to discover the complexity of customs processes. In particular, with consumer behaviour shifting significantly during the pandemic, it is this inexperience that will mean many smaller businesses that rely on ecommerce trading with the EU are likely to get caught out.

Compliance complexity

With or without a deal or no-deal Brexit arrangement, customs declarations will still be required. Even those companies that opt – and are able – to defer import customs declarations for six months, will still be required to keep detailed records of imports. Customs declarations will be mandatory, even for smaller organisations. No longer will they be able to sell goods without
paperwork or post goods abroad as if they were in the UK.

To remain compliant with regulations, companies can either complete declarations in house, or use a customs broker or freight forwarder to handle the process on their behalf. However, using an intermediary could be challenging with the anticipated increase in demand as there are not enough third-party providers to meet demand – Government figures suggest that British companies trading with Europe will have to fill in an extra 215 million customs declarations a year post Brexit.

Businesses do have the option to file directly with HMRC – but those unfamiliar with customs processes may not be confident enough to ensure that the requirements are being carried out to the letter. The complexity can be overwhelming – can they check the requirement for licences for hazardous goods? File the right documentation to ensure no delays at the border? Check the right commodity codes are used? And what about taking advantage of customs authorisations, including Inward Processing, Customs Warehousing, Transit and Customs Freight Simplified Procedures
that could simplify the paperwork requirements for importers trading heavily with the EU or moving goods through multiple territories?

Another element that businesses will have to become familiar with is security filings. While air and sea transport operators will be familiar with security filings, it has not been applicable for road transport within the EU. However, post-Brexit, security filings will be a mandatory requirement for all UK imports and exports, although UK imports will be deferred for 6 months after the Brexit deadline. Unlike customs declarations, which can be submitted when items have already arrived in the UK in a bonded warehouse, security filings are required to be submitted at least two hours before the goods are due to arrive in the UK when transported by road. And if the goods are being transported through the Channel Tunnel by Eurotunnel, a declaration must be submitted at least
one hour before check-in at Coquelles. Read the rest of the article here:

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