Additional requirements above ADR

1 August 2012

Can other countries make demands that are not found in ADR or the UN Economic Commission for Europe (ECE) website in relation to transport?

“Known Shipper” and AEO status

10 July 2012

Would you be so kind and answer a question that has been raised by our Directors? We are validated as a "Known Shipper" with the Department of Transport. Our freight agents have applied and received AEO status. Our Directors are questioning why the company should apply for AEO status if we have already been approved as a "Known Shipper" and our agents have AEO status. What is your feeling? Should we apply for AEO status and what are the benefits over "Known Shipper" validation?

Import duty

10 July 2012

Can you confirm whether the import duty payable on CIF basis is universal? I’m looking particularly at imports into China and Thailand. We are ordering parts from a supplier based in Hong Kong. We get these parts shipped to the UK from Hong Kong and we ship to our customer in Germany. To save time in transport, the sales team would like us to organise a drop shipment from the supplier in Hong Kong directly to Germany. However, we do not want the customer to see our cost price (eg we are buying at £80 and we are selling at £110).

Is it legal to ask the supplier in Hong Kong to enclose our proforma invoice with the value of the goods as we sell them to Germany on the despatch paperwork (instead of their Hong Kong invoice)? Would this be equivalent to making a false declaration to customs? If this is not acceptable, would you suggest another way to allow us to drop ship without the German customer knowing how much we are paying for the parts?

Use of the CIP Incoterm

10 July 2012

I was wondering if you would be able to assist with a query I have regarding exporting. The Incoterms® Rules we prefer to use for our goods being shipped outside of the EU are CIP (Cost, Insurance Paid to destination airport). Quite often, though, customers insist on the term FCA (Free Carrier) from our warehouse. On our commercial invoices we detail all product weights, values, individual tariff numbers for each item, etc, which I e-mail a copy of to the freight forwarders upon arranging collection so that they can do their customs entries. For FCA shipments I always request that the freight forwarder sends me a copy of the C88/SAD that they have produced for our records (we always receive a copy with an invoice for our CIP shipments). Forwarders don’t always supply them to me but when they do I check the entry and in most cases freight forwarders have only declared one of the tariff codes and not all if applicable. I also notice this when we receive the MSS data report we receive from customs. I do request for the entry to be amended and sometimes they are but most of the time for the FCA shipments the customer’s freight forwarder doesn’t or it’s a courier company and it is harder to get this done.

I just really want to know, as the exporter, what the legal implications are for us if the freight forwarders do not match our invoices and advice we have provided them. And is it our responsibility or the importers’ to make sure this is correct as the duties and taxes will always be covered by our customers in the country of destination?

The EC Sales List

10 July 2012

During a recent audit (internal not external) we discovered some EU sales we have inadvertently forgotten to show on our EC Sales List (ESL). What should we do?

Letter of Credit

10 July 2012

We have just received a Letter of Credit (L/C) from our bank's trade centre operations in Manchester, which has been issued by Corporation Bank in India. It is available with any bank in the UK by negotiation, with drafts at 45 days from the date of the Bill of Lading drawn on the issuing bank. The L/C is "without" confirmation. As beneficiaries we would like to be paid by our bank when we present documents. Will they consider this?

The Export Accompanying Document

10 July 2012

I wonder if you can help. In a normal transaction, we would get the manufacturer (based in Germany) to ship the goods to us. We would get the goods shipped to Frankfurt and then they would leave Europe and ship to Russia. This is straightforward and we know this movement needs an Export Accompanying Document (EAD). If we instead ask the manufacturer to ship the goods directly to Frankfurt airport, for them to leave Europe and go to Russia, do we still need an EAD? My understanding is that this accompanying document is required for indirect export, but in this case as the goods don’t travel across Europe, they would not require the EAD. Am I correct?