When it comes to high value cargo, it’s not just short lead times that are threatened if customs clearance stalls your supply chain. With Brexit looming, there’s considerable concern about increased cost and delays for imports and exports. Plus, your secure logistics – strengthened for high value goods – face fresh challenges, as the forward and reverse freight flow of goods is choked by checks.
An expert 3PL partner will be prepared to ensure minimum disruption to your supply chain with the quick release of goods and built-in cost efficiencies. Their end-to-end Customs House Brokerage service will mitigate the risk of delays, avoid non-compliance fines, and resolve high duty taxes.
If you’re looking to protect the market value and condition of your high value cargo these three effective approaches to customs clearance can help.
- Greater accuracy and cost-efficiencies with data sharing
Stellar communication is vital to avoid non-compliance fines and ensure you pay the appropriate amount of duty and VAT.
Your 3PL partner’s centralised clearance team will drive an interdepartmental effort to gather data on your product and supply chain from your in-house teams, vendors, and any origin cargo management services. They’ll get to know you and your goods in greater detail, so they can then identify any special insurance or policy requirements of your high value cargo.
With this information, they can then cross-reference and check every entry before submittal to HMRC, so you’re confident that duties and VAT are calculated accurately with correct commodity codes.
The closer they get to your business, the better they can be at highlighting cost-efficiencies, such as duty drawback procedures. They’ll find the cheapest method of securing and streamlining your supply chain, so your goods aren’t held unnecessarily.
2. Guarantee supply with bonded warehousing
If your high value goods have short lead times, you may want to consider bonded warehousing as a means of managing supply, protecting market value and ensuring expedited customs clearance.
Look for warehousing ideally located near key ports where cargo can be transported quickly and securely. Here, goods liable for import duty or VAT can be stored in advance of peaks so orders are fulfilled without delay from within the end-retailer’s country.
In terms of cost-efficiencies, this is hugely beneficial for improving cashflow, as tax payments can be deferred until the goods are sold. A supplementary declaration should be expertly timed by your 3PL partner as part of the Customs Freight Simplified Procedures (CFSPs), so that goods can be released from temporary storage quickly with minimal disruption to your supply chain.
- Robust and secure processes with the AEO accreditation
If you’re concerned about the challenges Brexit will inevitably bring, then look first for the AEO accreditation as a sign of expert customs clearance of high value cargo.
To earn the AEO, a logistics provider has a proven record of compliance and robust procedures for the highest standard of security across the supply chain. Moreover, an external auditor has rigorously reviewed their Customs processes to test regulatory efficiency.
With the changes to customs law in 2016, UK companies must now adhere to the Union Customs code. In light of this, the British International Freight Association (BIFA) recommend that logistics providers seek an AEO status to ensure the safety of your supply chain across EU borders.
Look at your 3PL partner’s external accreditations to assess how robust their security really is. Our blog on quality assurance is helpful for a broad look at how to spot signs of security and compliance.
For high value goods, you want secure logistics with minimal disruption at borders and customs. If you can build in robust cost and process efficiencies, you’ll ensure that your short lead times are protected. That way, you can take back control of customs checks – even when Brexit throws challenges your way.