TruckandTrackAutumn2019

www.truckandtrack.com Autumn 2019 Truck and Track 7 BUSINESS NEWS Service (CDS), continued growth in eCommerce and consumer demand for home delivery with driver shortages, congestion and the potential negative environmental impact. Technology will play a key part in meeting these challenges. For example, a leading UK retailer using Descartes route optimisation and scheduling software, increased delivery capacity by 35%, minimising the need to recruit new drivers thereby reducing the cost of deliveries and meeting the increased demand from customers. Logistics and supply chain operators need to recognise the challenges they face now and may face in the future. They should do their research and get expert advice from a supplier with a proven track record. BR: Howcan businesses achieve the best chance of certainty in an uncertain time? AT: It was recently highlighted that 150,000 UK businesses still don’t have the correct paperwork to be able to continue exporting to the EU in the event of a no-deal Brexit and, with our new PM willing to accept a no-deal at the end of October, this could present huge challenges. Not only that, but October/November/December are peak trading times with Halloween, new winter season items, Black Friday and, of course, Christmas so, for businesses to be left without effective and cost-friendly trade, this could have serious implications, particularly as some businesses are already putting investment funding on hold due to the uncertain times. To avoid this potential scenario, organisations need to prepare now and be ready. International ecommerce needs to be expertly streamlined to ensure the changes won’t affect - and potentially damage - businesses during peak trade. It simply won’t be as easy to stockpile product as it was inMarch, and customer demands will be rising not falling. On the plus side, this could bring about great opportunity: by streamlininginternationalecommercetransactionswithDescartes’ e-customs declaration software, awareness and visibility, and expert routing and scheduling systems combined with warehouse optimisation technology, businesses can be ready to for a no-deal Brexit, ensuring business continuity but also prepared to expand trading seamlessly outside the EU bloc to other countries, in the event of a no-deal or other form of departure. BR: What do businesses need to do to be ready for Brexit? AT: Essentially, they need to prepare for the worst and hope for the best. If companies have not previously traded internationally, the most important point is to obtain an EORI Reference. This is their identity for Customs whether or not they decide to make their own filings or appoint a broker to act on their behalf. Businesses that already trade outside the EU should be aware of the requirements to import or export their goods and already have appointed brokers to deal with their customs declarations or have made arrangements to submit their own declarations. Their main challenge will be co-ordinating their EU supply chain when they may not be as experienced at managing the increased volume of customs declarations and potential compliance checks. For importers that just deal with the EU, they should check if their products will be one of the few to attract UK duties, what restrictions may apply to their goods and what arrangements they need to make to submit import declarations. For exporters, they should check any additional documentary requirements from the EU and what duty rates they or their customers are likely to incur when exporting to the EU. They should also investigate the options of submitting their own UK export declarations so that they can do so quickly and easily from their own premises. Exporters will also have to check what their customers expect for import declarations as they may need to appoint a broker or a fiscal representative to act on their behalf especially if they have no presence in Europe today (to be a declarant you must be an EU legal entity) and how they can efficiently share the necessary customs information and documentation to facilitate a smoother import process. In some cases, companies may want to hold stock or utilise a distribution centre in the EU to distribute to customers across the EU from there to consolidate their movement and declaration costs between the UK and EU. Should the duty rates and volumes be significant then use of a customs bonded warehouse in an EU member state may also be beneficial. Similar to being a declarant being authorised for Customs Warehousing in their own right will require them to have an establishment in the EU and so they may need to use the services of a third-party. Similarly EU exports or UK importers may want to consolidate their imports to the UK. Companies may also want to explore whether the union of the common transit convention to move goods between inland locations and away from potential choke points at RoRo ports will be of benefit. BR: What will happen if there’s a no-deal, customs wise? AT: In the case of a No-Deal then the UK has already announced a range of simplifications and relaxations. This includes duty Free access for goods travelling across the Irish Land Border with no customs declarations and simplified procedures for most traders importing directly from the EU for a temporary period. We will see inland checks for goods that require physical inspection, postponed VAT accounting for VAT registered importers and suspension of the need to submit pre-arrival safety and security information for goods arriving directly from the EU. However, VAT relief for parcels under £18 will be removed. It will be the responsibility of the seller to account for the VAT through an online registration and reporting system and unless registered for simplified procedures traders will need to ensure they submit an import declaration prior to the goods arriving in the UK. Exporters will still need to submit export declarations prior to export (apart from movements across the Irish Land Border) and in many cases need to ensure that an import declaration has been made prior to arrival. BR: How can organisations streamline international ecommerce? What technologies can improve trading efficiency and transform ecommerce performance? AT: Where customs declarations are required automation is the key, collecting as much of the necessary customs data in advance and re-using that data throughout the process is vitally important. Being able to perform denied party screen and establishing the landed cost at the point of sale ensures there should be no surprises to the buyer or seller. BR: Are there positives? What opportunities does a no-deal Brexit create? AT: For brokers and intermediaries Brexit may create the potential for a big increase in customs declarations. For importers the removal of a large number of duties could provide a benefit. For exporters, there is the promise of improved access to new export markets because of the new free trade agreements that will be possible outside of the EU. BR: What products and technologies form the backbone or building blocks of the UK operation? AT: At Descartes in the UK, we have a complete portfolio of end-to-end supply chain solutions that includes; e-Customs filing & duty management solutions, route optimisation and scheduling, mobile applications (ePOD), road transport compliance management, third-party transportation management, eCommerce warehouse management, compliance solutions for Denied Party Screening and tariff and Trade Data Content. BR: Are you able to give our readers the heads up on further innovations that we can expect in the near future? AT: Customs applications continue to be affected by technical and legislative changes across Europe, CDS replacing CHIEF in the UK where we are one of only two companies submitting declarations to the live service. Across Europe we see countries updating and replacing their systems in response to the Union Customs Code (UCC) and Multi Annual Strategic Plan (MASP). www.routingUK.descartes.com https://lp.descartes.com/brexit/