With the tightening of global trade barriers and the requirements for compliance with customs regulations, supply chain management is becoming more and more complex.

Choose from a reliable customs clearance services to maintain your fast-to-market advantage.

Operational customs clearance: Regardless of whether you are importing or exporting goods, CHA (Custom House Agent / clearing and forwarding agents) offers you a wide range of services that fit your supply chain. You can choose between options for preparing and processing declarations, calculating duties and taxes, and organizing inspections. 

Trade management: If you want to reduce risks and manage costs in cross-border transactions, CHA (clearing and forwarding agents) are at your side. Get comprehensive insights into free trade agreements, international customs data and customs refund systems.

Customs compliance: CHA team conscientiously deals with high regulatory requirements. We assess your supply chain, perform post-import audits and develop proactive processes that prevent fines and fines.

Digitization: Let us help you digitize your customs procedures. The single-window customs portal is an automated central entry point for all of your regional customs clearances. Dashboard and reporting solutions give you full data transparency so that you can make strategic decisions about trade flows.

Enjoy all the benefits of appointing clearing and forwarding agents

Lower your costs and reduce the working capital tied up in supply chains by optimizing the use of tariff suspensions, refund systems and free trade agreements.

Be proactive about changes in customs regulations, procedures, and licenses that affect your business.

Support with the strategic outsourcing of customs operations and the management of the handling of third party agents

Assistance in applying for advantageous customs regulations, procedures, licenses and other resources

Incoterms 2020 - Your Guide to International Trade Regulations

The Incoterms® regulate the responsibilities of buyers and sellers in the international trading system. Buying and selling goods in international trade can often be complicated - responsibilities, costs and risks need to be determined for all parties. To support companies in importing and exporting goods, the International Chamber of Commerce (ICC) introduced the International Commercial Terms, or Incoterms® for short, in 1936. Today, Incoterms® are considered to be the most important set of rules in global trade. The latest version, Incoterms® 2020,  came into force on January 1, 2020.

The Incoterms® clauses contain a number of trading conditions which are indicated with a three-letter code.

Clauses for all modes of transport:

EXW - Ex Works / Ex Works (named place of delivery)

EXW is often used when creating an initial quote with no costs included. EXW means that the seller makes the goods available on his premises or at another named location (factory, factory, warehouse, etc.). The seller does not have to load the goods onto a collection vehicle, nor does he have to release the goods for export.

FCA - Free Carrier / Free Freight Forwarder (named place of delivery)

FCA can have two different meanings, each with different levels of risk and cost to the buyer and seller. FCA (a) is used when the seller delivers the goods released for export at a named location that is on their own premises. FCA (b) is used when the seller delivers the goods released for export to a named location that is foreign premises. In both cases the goods can be delivered to a carrier named by the buyer or to another party named by the buyer.

CPT - Carriage Paid To / Freight Paid To (named destination)

According to the CPT, the seller pays for the transport of goods to the named destination.

CIP - Carriage and Insurance Paid to / Freight and Insurance Paid to (named destination)

Similar to CPT with the exception that the seller is required to take out minimum insurance for the goods in transit.

DAP - Delivered At Place

Thereafter, the goods are deemed to have been delivered by the seller when the goods are made available to the buyer on the arriving means of transport and ready for unloading at the named destination. According to the DAP conditions, the buyer bears all risks associated with the unloading of the goods.

DPU - Delivered at Place Unloaded / Delivered at place unloaded (named destination)

This Incoterm® requires that the seller unloads the goods at the agreed destination. The seller bears all costs of the transport (export fees, transport, unloading from the main carrier at the destination port and destination port fees) and assumes all risks up to the arrival at the destination.

DDP - Delivered Duty Paid / Delivered duty paid (named destination)

The seller is responsible for delivering the goods to the named location in the buyer's country and bears all costs of getting the goods to their destination, including import duties and taxes. The seller is not responsible for unloading.

Rules for sea and inland waterway transport:

FAS - Free Alongside Ship / Free Alongside Ship (named port of shipment)

The seller has delivered when the goods are placed alongside the ship (e.g. on a quay or a barge), which was named by the buyer in the named port of shipment. The risk of loss or damage to the goods passes when the goods are placed alongside the ship and from this point on the buyer bears all costs.

FOB - Free On Board (named port of shipment).

The seller delivers the goods on board the ship named by the buyer in the named port of shipment or procures the goods already delivered in this way. The risk of loss or damage to the goods is transferred when the goods are on board the ship and from this point onwards the buyer bears all costs.

CFR - Cost and Freight

The seller delivers the goods on board the ship. The risk of loss or damage to the goods is transferred when the goods are on board the ship. The seller must instruct and pay for the costs and freight necessary to bring the goods to the named port of destination.

CIF - Cost, Insurance and Freight

Same as CFR with the addition that the seller must also take out minimum insurance coverage against the buyer's risk for loss or damage to the goods in transit.

Differences between the Incoterms® 2010 and 2020:

The Incoterms® FCA (Free Carrier) clause now offers the additional option of making a note on the bill of lading before the goods are loaded onto a ship.

The costs now appear centralized in A9 / B9 of the respective Incoterms® clause.

CIP now requires at least one insurance with the minimum coverage of the Institute Cargo Clause (A) (all risk, subject to specified exclusions).

CIF requires at least one insurance with the minimum coverage of the Institute Cargo Clause (C) (number of risks listed, subject to specified exclusions).

The Incoterms® clauses Free Carrier (FCA), Delivered at Place (DAP), Delivered at Place Unloaded (DPU) and Delivered Duty Paid (DDP) now take into account that the goods can be delivered without any third carrier commissioned, namely by the Using your own means of transport.

The Delivered at Terminal (DAT) clause has been changed to Delivered at Place Unloaded (DPU) to make it clear that the destination could be any location, not just a “Terminal”.

Incoterms® 2020 now expressly shift responsibility for security-related requirements and ancillary costs to the seller.

Useful information 

The Incoterms® do not represent a complete sales contract, but rather become part of it. The following structure should be used for their application:

"[Selected Incoterm® clause] [Named port, place or point] Incoterms® 2020"

Examples: "CIF Shanghai Incoterms® 2020" or "DAP 10 Downing Street, London, Great Britain Incoterms® 2020"

If no year is specified for the Incoterms®, the following applies:

Incoterms® 2010 apply until December 31, 2019. Incoterms®

2020 apply from January 1, 2020.

If another year is specified, e.g. B. Incoterms® 1980, then the relevant conditions apply. 

For more details, see the official ICC website: https://iccwbo.org .

UK officially left the EU on January 31, 2020. Regardless of the outcome of the negotiations on a free trade agreement, customs procedures came into force after the transition period ended on December 31, 2020.

Make your customs clearance a seamless process

To avoid unnecessary delays and interruptions at the border, our simple Brexit solution will help you simplify the complexity of the customs clearance process.

By automating export and import customs procedures at an early stage, we make data collection easier for you. In this way, your customs matters are prepared for clearance at the EU and UK borders while your shipments are already on their way.

How does this work? Your easy Brexit solution digitally transmits the sender's export data and records the recipient's import data using an import validation procedure. This automates the export and import declarations in accordance with the requirements of the EU and UK. This also includes additional requirements, such as B. the security messages that are required for each shipment.

UK and EU customs regulations are binding after Brexit

To simplify customs formalities, the UK government has introduced a temporary “tiered approach” to imports into the UK. On this basis, British importers have the option of importing uncontrolled goods under the so-called Customs Freight Simplified Procedure (CFSP), which eliminates the need for a full border declaration by December 31, 2021.

What are the upcoming changes?

From January 1, 2022

• Import customs declarations are required for all goods and postponed clearances are no longer possible
• Customs controls on imports from the EU
• GVMS (Goods Vehicle Movement Service) mandatory for UK imports
• Pre-registration for products of animal origin (POAO) and document review in the UK IPAFFS system

From July 1, 2022

• Security Clearances (ENS) required for all UK imports
• Export health certificate required for POAO
• Pre-registration for sanitary and phytosanitary products in the UK IPAFFS system
• Goods controls at the border inspection posts for animals and POAO as well as plants and vegetable products

In addition, traders can use the deferred VAT mechanism, where import VAT only needs to be reported but not paid at the time of import into the UK.

If the goods comply with the Rules of Origin (RoO), zero tariffs and quotas apply to both EU and UK imports. The importer is obliged to prove the preferential origin with a "Statement of origin" provided by the exporter, or alternatively with records that meet the "Importers knowledge" criteria.

We'll take care of your customs clearance after Brexit. We need this from you in order to submit your export and import declarations:

• Customs authorization
• Allows Kuehne + Nagel to act as your direct representative when completing customs declarations. Only has to be filled in once.
• EORI number of the exporter and the importer
• The EORI numbers (Economic Operators Registration and Identification) are a prerequisite for customs clearance of goods in the EU and UK.

Export declaration

If the consignor creates the export declaration himself, enter the Movement Reference Number (MRN) of the export accompanying document (EAD), which will be inserted in the transport order, and hand over the export accompanying document to CHA (Custom House Agent / clearing and forwarding agent)

Commercial invoice

Indication of conditions, value, quantity and description of the goods. Duties and VAT are calculated based on the value of the goods and the currency.

Other custom formalities

• Customs tariff number (HS code) of the goods
• Globally uniform classification code for the goods.
• Description of goods
• Value of goods
• Incoterms
• UK import procedure: standard import or CFSP simplification
• Goods that correspond to the preferential origin on the basis of the trade and cooperation agreement between the EU and UK

We are offering a Personal Coaching Program for less than $50 per year. I will be there to guide you through the whole process of setting up an import export business from your country. If you are serious about A-to-Z Practical Consultation of Exim, then this is the program for you. Our expertise will help you in your journey to becoming a successful businessman.

Join our personal coaching program and get access to www.exportimport.guru with our Personalized Whatsapp Support for your Startup. Kindly Whatsapp us on +91 8128111191 or email barai@exportbooster.in for all help

Cordially Yours,
Kishan Barai
www.baraioverseas.com