Interesting article from the BBC suggesting a ‘transitional period’ to avoid ‘choppy waters’
Exporter Services Ltd
Interesting article from the BBC suggesting a ‘transitional period’ to avoid ‘choppy waters’
We are now looking for a trainee shipping clerk to join our busy shipping department. You will learn the basic duties of shipping goods all over the world from a simple shipment via courier service to the management of the more complex shipments where specific documents are required.
Internal training will be provided and the successful candidate will be assigned a mentor. Educated to a minimum of ‘A’ level with strong communication skills, be IT literate and organised with ‘a can do’ attitude, the successful candidate has the opportunity to take on further responsibility and ultimately gain a qualification in International Trade.
If you feel that you would like to take on this challenge and would like further information about the role then please call us on 0115 727 0018 to discuss further.
Qatar is currently being blockaded by many of its Gulf neighbours in a dispute that came to a head last month. As of 5th June 2017, Saudi Arabia, Oman, Egypt and Bahrain have closed all of their land, sea and air routes into and out of Qatar. As a result, moving goods into Qatar has become extremely difficult. Flights to and from Qatar cannot pass through airspace of the four countries mentioned above.
It is unknown how long this crisis might go on for. The opposing countries sent a list of 13 demands to Qatar in order to end the dispute; however, these have been formally rejected by Qatar and the blockade remains in place.
A list of the 11 countries that have cut or limited diplomatic ties with Qatar is as follows: Bahrain, UAE, Saudi Arabia, Egypt, Yemen, Libya, Maldives, Mauritania, Senegal, Jordan, Djibouti. If you plan to export any goods to Qatar, be prepared for massive delays and very high costs, as routes into Qatar have become very restricted. Imports have been limited to food and other urgent supplies, which are being flown in.
At this stage, we can only speculate on the many possible outcomes of the Brexit negotiations. It’s going to be long time before anyone knows what will happen when, or indeed, if, the UK finally does leave the EU and as the first member state to initiate article 50 and start the leaving process, we are in uncharted waters. International trade is a key point in the Brexit discussion, and we will be keeping a close eye on any developments in this area as the negotiations proceed.
What happens now?
Britain will remain an EU member state until 29th March 2019, two years after the leaving process was initiated by the triggering of article 50. This period will be used to negotiate the terms on which the UK will leave the European Union. During this time, the UK will be excluded from any internal EU discussions and will have no say in the decisions regarding its withdrawal; however, it will still play a normal role in all non-Brexit business within the EU as a full member.
What if an agreement isn’t reached within the two-year negotiation period?
Many experts believe a final Brexit deal will not be reached in this timeframe and could take closer to ten years due to the sheer scale and complexity of forming an agreement between 28 countries on such a huge range of matters. It is possible that the two-year period initiated by Article 50 could be extended if all 28 members agree to do so unanimously. However, if no extension is agreed and a deal is not reached, the UK will leave the EU and the consensus is that we will revert to World Trade Organisation (WTO) rules.
What are WTO rules?
The WTO’s mission is to promote free trade by abolishing customs barriers such as import tariffs. It is the only international body overseeing the rules of international trade, which are enforced with the use of trade sanctions against the countries that breach them. As WTO members, the EU and UK would have to abide by the Most Favoured Nation (MFN) rule, which essentially promotes fairness and equality between trading partners, or as the WTO puts it:
“Each member treats all the other members equally as ‘most-favoured’ trading partners. If a country improves the benefits that it gives to one trading partner, it has to give the same “best” treatment to all the other WTO members so that they all remain ‘most-favoured’.”
There are a few exceptions to this rule, but essentially it means that the EU cannot apply unfair tariffs to UK goods once we leave the union, and vice versa.
What is likely to change after Brexit?
Not a lot of detail has been shared on the government’s Brexit negotiation plans, and with more uncertainty in the government’s strategy following the result of the snap election this month, it is difficult to predict what type of deal the UK will aim for. We do know that the conservatives will not seek to keep the UK a part of the single market and Customs Union, so let’s look at what might happen if this doesn’t change.
What happens if we leave the customs union?
The purpose of the customs union is to facilitate the free movement of goods between EU members. There are no tariffs on goods moving within the EU and common external tariffs are applied to goods imported from the rest of the world. If the UK leaves the customs union, tariffs will apply to goods moving between the UK and EU and they will have to undergo customs clearance. Customs checks and administration will increase costs to UK business, both in terms of time and money. However, no longer restricted by the customs union rules, the UK would be free to forge its own trade deals with the rest of the world, which Brexit supporters believe outweighs the downsides of leaving the union.
What if we leave the single market?
The single market allows for the free movement of the “four freedoms” within the EU. These are goods, people, services and capitol. By harmonising trade regulations across all member states, the single market removes trade barriers. Essentially, there are no regulatory barriers or unfair restrictions within the EU. If the UK leaves the single market we will no longer be restricted by EU regulations and would have control over the movement of people across our borders, which many people see as positive outcomes. However, there would be massive impacts on the trade of goods and services as tariff and non-tariff barriers are reintroduced.
Are there other options for the UK?
You may have heard of the “Norway model”, which many see as a viable option for the UK post-Brexit. This would entail joining the European Economic Area (EEA) alongside Norway, Iceland, Liechtenstein and EU members. It allows near-full membership of the single market; members must adopt most legislation relating to the four freedoms of the single market, with a few exceptions, including the common agricultural and fisheries policies. The benefit of this option is that the likely impacts of joining the EEA can be modelled based on the current members, and at this stage it is suggested that taking this route will be better for the UK economy than arranging a separate free trade agreement with the EU. However, to gain this level of access to the single market, the UK will likely have to accept EU regulations on the free movement of people as well as make financial contributions to the EU budget, which are two of the most popular reasons why the UK voted to leave the EU in the first place.
Exporter Services is proud to sponsor John Duncan Racing this year in the Celtic Speed Mini Cooper Cup Championship.
Round 1 was held on 9th April at Knockhill Racing Circuit, and despite a few problems, John did well to get a podium finish on the final race, qualifying in 6th place overall. Well Done John! We wish him the best of luck in his next race.
You can find out more about the weekend of racing and find some great photos on John’s Facebook page.
Why do we need to prove origin?
There are several reasons for the need to prove the national origin of imported goods, which can be grouped into two categories: preferential and non-preferential.
Non-preferential origin is used for the implementation of commercial policy measures, such as anti-dumping duty and tariff quotas. There are also origin marking and labelling requirements for certain goods and countries, and origin is also used for international trade statistics.
Preferential origin allows goods to be imported at a reduced or zero rate of duty. So if you’re exporting to a preference-giving country, your customer could pay less or no import duty. This only applies to countries with which we have a preferential trade agreement.
How do we define origin?
There are two categories of origin:
There are two different ways to determine if goods have been sufficiently processed in the EU:
This means that, provided the requirements for sufficient process are met, your products can be sold as EU origin goods even if the component materials are not of EU origin. Tariff codes define the nomenclature and duty rates applied to your goods, so a change in tariff heading will change how the goods are treated by HMRC.
How do we prove origin?
If your goods meet all the requirements for EU origin, you will need to provide proof to the importing country. Depending on whether the importing country can take preference or not, there are different forms of proof of origin:
Exporter Services can provide all of the above certificates through our links with UK Chambers of Commerce and we also provide assistance with applications for Approved Exporter status. If you would like to find out more about any of the above, please give us a call or fill out the contact form on our contact page.
Have you ever wondered how batteries are transported safely around the world? Maybe you’ve never considered the potential hazards the humble double-A could pose? Well, with so many devices taking power from cells and batteries these days it is important to recognise that shipping electrical items and the batteries that power them isn’t always straight forward.
What are the hazards?
Not all batteries are considered hazardous, but there are many different types available and some present different risks than others. Most batteries contain corrosive chemicals, which present an obvious hazard if the casing becomes damaged and it leaks. This is generally the main hazard with single-use batteries and, provided they are packed to certain specifications, they can be transported on both passenger and cargo aircraft.
Lithium batteries, which are used in rechargeable devices like mobile phones and laptops, present a different hazard; they can combust and explode if damaged, which in a confined space on an aircraft could potentially cause catastrophic damage. For this reason, lithium battery shipments are treated very seriously by the International Air Transport Authority (IATA) and are heavily regulated for air travel.
Guidelines for safely packing and shipping batteries are set out in IATA’s Dangerous Goods Regulations (DGR), and the requirements vary depending on the type of battery being shipped. Generally, provided these regulations are followed and state and operator requirements are met, shipping batteries is no harder than any other hazardous material. However, when it comes to lithium battery shipments, things can become a bit more complicated. Let’s take a look at lithium batteries in more detail:
There are two main types of lithium battery:
Each type is treated differently in the DGR, so the procedures for shipping a box of lithium ion batteries are different to shipping a box of lithium metal batteries. Therefore, when we look at a lithium battery shipment the first question is what type of lithium batteries do we have?
The second question we ask is how are the batteries packed? There are three ways in which lithium batteries can be packed:
Each of these have their own Packing Instructions in the DGR, so a parcel is treated differently depending on whether it contains batteries only, batteries and equipment, or batteries installed in equipment. This is because of the amount of inner packaging protecting each individual battery within a package. Let’s look at an example:
Parcel A contains 20 batteries, each individually packaged in a plastic blister pack. The amount of space and material between each battery in the parcel is quite small.
Parcel B contains 20 of the same batteries, but this time each battery is packed on a foam tray inside a box, which also contains a mobile phone. It’s bigger than Parcel A because it contains more and this means the amount of space and material separating each battery is also bigger.
Parcel C contains the same 20 batteries as A and B, but they are now each installed within a mobile phone, which is packed in the same way as in Parcel B. Each battery is encased by a phone in a foam tray inside a box.
Now imagine that one of the 20 batteries in each parcel is defective and starts to heat up to the point of combustion (a process known as thermal runaway). In parcel A the batteries closest to the defective battery have very little protection from the heat it emits and could in turn become damaged to the point of combustion. In parcels B and C, there is more space between each battery to allow the heat to dissipate safely, and there is also a lot more material protecting them. Batteries in parcel C gain extra protection from the mobile phone itself.
Put simply, there is less risk in shipping lithium batteries that are contained in equipment compared to batteries packed “loose”, and this is reflected in the regulations. Of course, it’s never quite that simple; there are specific requirements and restrictions for each type of battery, but Exporter Services has experienced and certified people who can take the difficulties of shipping batteries off your hands.
If you would like to know more about shipping batteries, or need help with a shipment, please get in touch; we’re happy to help.
As we settle in to 2017 we’re already seeing changes in some of the regulations that affect our day to day shipping procedures. For those of you who ship lithium batteries by air, a change in freight operators’ attitudes to certain parts of IATA packing instructions (PI) could affect the way you move your goods.
As of January 1st this year, many freight operators no longer allow lithium batteries to be shipped under reduced regulations, which cover the following PI:
Section II of Packing Instruction 965 for UN3480 lithium ion batteries.
Section II of Packing Instruction 968 for UN3090 lithium metal batteries.
This means that any packages that would normally meet the specifications of Section II of either of these packing instructions are now treated as Section IB, and are consequently subject to all the regulations associated with Class 9 hazards, including the requirement for a Shipper’s Declaration.
Although the IATA regulations have not yet been changed to reflect the above, the freight operators are entirely within their rights to refuse any packages that do not meet their own safety regulations, so it is important to always check with freight operators for any additional requirements when using them for hazardous shipments.
Exciting times in Exporter Services land! We have now moved into new premises in Castle Donington, which will allow for us to grow and progress even further. The whole team is very excited and we look forward to what this move will bring with it. Feel free to come and visit us, we have some beautiful views and lots of cafes around!
Having just completed his IATA Dangerous Goods training with a near perfect score, Owen is your go to person for shipping any dangerous goods including lithium batteries by air, to any place the world.
We can provide advice on packing, marking, labels, procedures and relevant documents including Shipper’s Declaration for Dangerous Goods. We can come to your site, assess your products and give you support with all official requirements including signing the Shipper’s Declaration for Dangerous Goods.
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