Relaxation in Europe: Update of the current loading restrictions

Brexit-Update: What you need to know

While the trade negotiations between the UK and the European Union continue to make slow progress, the month of June provided the last opportunity for the British government to extend the transitional period, which is currently limited to 31 December 2020. With no request for extension having been made, the focus is now on a gradual introduction of customs controls in the United Kingdom from January 1, 2021. The transition period is designed to allow traders to recover from the effects of COVID-19 and prepare for the new requirements. The United Kingdom will be subject to full customs control at its borders by 1 July 2021.

Earlier this year, the UK government took steps to eliminate certain customs facilitations, including the Transitional Simplified Procedures (TSP) and the Import VAT (PVA) shift. However, the British government has recognized that customs relief will also be necessary, at least temporarily, on January 1, 2021.

Thus, the possibility of shifting the import turnover tax is to be reintroduced. In addition, for a transitional period, there will be a customs procedure which will allow the imported goods to be declared by entering them in the accounts within a period of six months, rather than immediately upon importation. This procedure is called "Deferred Declaration".

An EU summit meeting for final talks between Great Britain and the EU will take place from 17 to 18 October 2020. Finally, on 19 October 2020 the results of a "deal or no-deal" scenario should be available. 

Regardless of the outcome of the talks, it is expected that from January 2021 onwards all goods exported to and from the UK will require tariff treatment, albeit during the transitional period described above as part of a process graduated by product group.

The following link will take you to a tool that outlines the required measures: https://www.gov.uk/transition

The UK government has also published details of preparation as an importer and exporter from/to the UK, which can be viewed via the links below: 

https://www.gov.uk/prepare-to-import-to-great-britain-from-january-2021

https://www.gov.uk/prepare-to-export-from-great-britain-from-january-2021

Further information can be found in the download document below.

If you have any further questions, please do not hesitate to contact your local contact at the relevant DACHSER branch.

Incoterms 2020

The International Chamber of Commerce (ICC) will soon release the new Incoterms 2020, providing certainty and clarity to businesses trading across borders. The new Incoterms will be effective as of January 1st, 2020.

Every 10 years, the International Chamber of Commerce evaluates and revises the International Commercial Terms, better known as Incoterms, as a means of creating greater uniformity and effectiveness across the shipping industry. The latest version, Incoterms 2010, will stay in effect until January 2020.

What does "Incoterms" stand for?

It is an acronym standing for international commercial terms. Incoterms is a trademark of the International Chamber of Commerce, registered in several countries.

The Incoterms rules feature abbreviations for terms, like FOB (“Free on Board”), DAP (“Delivered at Place”), EXW (“Ex Works”), CIP (“Carriage and Insurance Paid To”), which all have very precise meanings for the sale of goods around the world. These terms hold universal meaning for buyers and sellers around the world.

The main Incoterms changes that are being considered are:

• The removal of FAS (Free Alongside Ship) as it is being used infrequently;
• Separating FCA (Free Carrier) into two separate Incoterms: one for road delivery and one for maritime delivery;  
• The committee is also considering bringing back the terms FOB (Free on Board) and CIF (Cost, Insurance, Freight), instead of the FCA and CIP (Cost and Insurance Paid to) used for non-container shipments.
• There is also a debate about the creation of a new Incoterms called CNI (Cost and Insurance) to bridge the gap between FCA and CFR/CIF (Cost and Freight/Cost, Insurance, Freight). Currently, FCA includes the cost of international insurance on account of the seller-exporter, while CFR/CIF does not include the cost of freight.
• Lastly, to alleviate questions surrounding the party responsible for paying Customs fees, the ICC will evaluate the creation of 2 Incoterms to replace DDP (Delivered Duty Paid).

Other issues and updates being evaluated during this round include:

• Transportation security
• Regulations on transportation insurance
• Relationship between the Incoterms and the International Sale Contract

We will provide another update once the official Incoterms 2020 rules have been announced by the ICC. Please contact us if you have any questions.

Working together to connect the world

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