Outsourcing customs procedures to a 3rd party Customs Bureau
Instead of trying to navigate the unknown and deal with the additional volume of administration, businesses can outsource their customs procedures to a 3rd party Customs Bureau like Cardinal, that has CFSP accreditation from HMRC and can handle and facilitate import/export declarations to/from Europe.
Benefits of CFSP to Importers;
- Cash flow benefits for importers
- Accelerated release of goods
- Better visibility and control of customs data
How will this impact your business
We know that there are going to be knock-on impacts, so you need to plan now and minimise disruption to your supply chain.
The controls, checks, processes and procedures that take effect after the 31 December 2020 are likely to add at least a day, and potentially more than a week, onto lead times, so it’s time to think about how you’ll build in extra flexibility so your business can cope with the disruption and additional lead-time as a new norm
Another key consideration is your pricing policy. New import controls might increase your administration and warehousing costs, but it’s essential to get advice and plan now for how duty imposed on imports might affect the end-price of your product. And this is not as simple as it sounds.
Key questions you need to consider
- Review your stock management and ordering parameters – How are you going to account for lead time volatility?
- How will this affect your stock holding requirements?
- Will you need to change stock locations to maintain order fulfilment times to your customers?
- Will you need to split stock? If so, how will you do it?
- What is your forecast warehouse capacity, relative to additional stocks?
- What is your plan to collaborate with other businesses in your supply chain to mitigate these additional costs and delays?
- Do you have the resources in your business to cope with additional administration and supply chain management?
- How are you going to brief your operation to prepare them for the impending changes?
Making your customs declarations
You’ll need a commodity code for your product to make your customs declaration when you bring goods in or send goods out of the UK or EU. This includes goods dispatched to you from abroad.
To do this you’ll need to classify your goods correctly to know what rate of duty and import VAT you should pay. So, let’s say you’re importing bicycles. There’s not one code for a bicycle. Instead, there’s a code for each part, e.g. rubber inner tubes, another one for rubber tyres. So, one product is a collection of codes that you’ll need to find on the gov.uk website – one product could be 6 or 7 different codes, or more. Based on this, HMRC will tell you what the duty is.