After all, this code forms the basis for the amounts of import duties, VAT, excise duties, countervailing duties, and anti-dumping.

A correct classification of goods might seem difficult, and yet it’s not.

Because fundamentally, there are no excuses for classifying goods incorrectly: the rules are clear and comprehensively defined with objective parameters.

So why do so many mistakes happen?

1. Maybe the description of the goods on the invoice was too concise and the declarant is not familiar with the goods
2. Maybe these are new materials that are not immediately recognizable on the list
3. Maybe the seller provided an incorrect commodity code

Artificial Intelligence can help!

A 100% automatic classification is impossible, but 90% of the work can be technologically supported.

The remaining 10% are difficult cases and results in a better use of skilled people.

Currently, AI can perform three checks that will greatly help you.

That is, provided you have the correct master data and a sample dataset with which you can train the system.

Check 1: sanity
-> detect nonexistent and/or incorrect codes

Check 2: inconsistency
-> find products with exactly the same description and a different code

Check 3: anomalies
-> compare product groups with commodity codes

And that’s not all: because the system is constantly learning, it will eventually be able to predict the commodity codes of new materials with a high degree of certainty.

The post 3 checks that keep your import duties, excise duties, and VAT under control appeared first on Intris - Transportation Software.

The database used for this is the ERP package from ECS2XL.

As soon as the products leave the warehouse (and are consolidated on the truck), the corresponding data are sent automatically to TRIS Customs.

The system draws up an export declaration in PLDA and sends it to the Belgian customs.

Once confirmation of the MRN numbers is received, the relevant data are sent to RX/Seaport (the data platform for the port of Zeebrugge) for pre-declaration at the ferry e-desk.

At the same time the system prepares the British import declaration.

(You read that correctly: this is all done automatically.)

All these data are sent to CargoWise One (the global solution from WiseTech Global) which further processes the British import declaration and – still automatically – sends it on to the British customs system.

The UK import duties, VAT (sales and purchasing invoices) and MRN numbers are reported back to TRIS Customs.

TRIS Customs then automatically generates an invoice that also includes the administration costs.

As soon as hard Brexit arrives, this system goes live.

The post How ECS2XL and Intris/WiseTech Global are tackling hard Brexit appeared first on Intris - Transportation Software.

• proof of origin (importer’s knowledge)
• certificate of origin (registered exporter)

Importer’s knowledge

Based on your own knowledge of the origin of the products you can submit an application for preferential tariff treatment.

You must demonstrate this knowledge on the basis of documents or other evidence made available to you by the exporter of the products. You yourself are fully responsible for demonstrating the origin of the products.

To make use of this possibility you as the declarant must fill in the following information in the free trade declaration:

• in box 36: code 300
• in box 34: origin JP
• in box 44: add U112

Certificate of origin

If your exporter (in the EU) is a registered exporter (REX), or if your exporter (in Japan) has a Japan Corporate Number, then they can draw up a certificate for you for exporting products from respectively the EU to Japan or from Japan to the EU.

In the EU registration is obligatory for origin consignments with a value of more than 6,000 euros. For consignments worth less than this, registration is not necessary when drawing up a certificate of origin.

For more information on REX see: https://financien.belgium.be/nl/douane_accijnzen/ondernemingen/facilitatie/rex-de-zelfcertificatie
To make use of this possibility you as the declarant must fill in the following information in the free trade declaration:

• in box 36: code 300
• in box 34: origin JP
• in box 44: add U110

Multiple consignments

A certificate of origin can also be issued for multiple consignments of identical products. In this case REX registration is always required, even for consignments worth less than 6,000 euros.

To make use of this possibility you as the declarant must fill in the following information in the free trade declaration:

• in box 36: code 300
• in box 34: origin JP
• in box 44: add U111

The maximum validity of the certificate of origin is 12 months.

Download the full Economic Partnership Agreement at http://publications.europa.eu/resource/cellar/5805924c-09a3-11e9-81b4-01aa75ed71a1.0016.01/DOC_1

The post How to take advantage of lower import duties from Japan appeared first on Intris - Transportation Software.

Are we now really headed for a hard Brexit, or can we share the optimism of Guy Verhofstadt who said this morning on Radio 1 that last night’s vote made it clear there is a large majority against crashing out?

The next 70 days will be crucial, beyond a doubt.

Perhaps we should prepare for the worst and hope for the best.

The EU Commission has published a detailed review of all the things that are liable to change.

For example, concerning trade, taxation and a customs union you will find information on customs and indirect taxation, import and export certificates, intellectual property, preferential rules of origin and VAT.

In our previous blog we described six measures that you can take in the short term, but other things demand more time.

Below are six other measures that are worth considering.

1. Permits

There are quite a lot of permits that will greatly simplify customs formalities. Do these all still apply to trade between the UK and EU?

• temporary imports
• temporary storage space
• approved site
• transit accompanying document, authorised consignee
• transit accompanying document, authorised consignor
• bonded warehousing
• particular destinations
• outward processing
• inward processing

2. Anti-dumping measures

It is still open to question whether so-called third countries (South Korea, Japan, Mexico etc.) intend to sign trade agreements with the UK, or if they will recognise any preferential trade conditions between the UK and the EU. In both cases this will have implications for anti-dumping measures.

3. New customs procedures

The European and British customs procedures will no longer be identical. You should regularly consult the UK Customs & Excise website.

4. New rules on origins and tariffs

There will certainly be new product codes (tariff rules) and new rules concerning the origin of products.

For an explanation see: https://economie.fgov.be/nl/themas/ondernemingen/brexit/verkeer-van-goederen-en/brexit-oorsprongsregels

5. Declared value

As long as the UK was a member of the EU you didn’t have to worry about the declared value of the products. This is all set to change.

6. Getting your AEO certificate

At the moment there is no mutual recognition between the UK and the EU concerning AEO certification. In view of the time it takes to get this certification, you should start the process now.

By the way, did you know that Intris has AEO certification for communication with Customs & Excise?

The post Six Brexit measures you need in the long term appeared first on Intris - Transportation Software.

Is your customs system ready for this?

Of course you can make customs declarations for goods sent to and from the UK, but are you prepared for the additional workload? Wouldn’t it be much simpler for the standardised, repetitive movements to be declared automatically to customs directly?

Do you have any idea how much time (i.e. manpower and costs) you would save by automating these uniform declarations? And how your customs clerks could use that time instead for complex declarations?

TRIS Smart Tower

That’s why Intris has developed a tool for you as part of its Customs solution that saves time, prevents errors and centralises the data in one system.

This TRIS Smart Tower automates all the repetitive, monotonous operations that might appear trifling but are nevertheless critical. Just one small mistake in copying from the customer order to the declaration could easily cost you a couple of lost hours.

Not to mention incorrect VAT and import duties in your invoicing.

Four big advantages

1. With the Workflow Management System the customer can set their own checkpoints so that the system monitors the customer’s procedure, with the necessary alerts.
2. TRIS Smart Tower reads the data from external systems (ERP, Excel, PDF, .xml), makes a declaration in TRIS Customs and sends it to customs. When clearance is received it is processed automatically in TRIS Customs.
3. It then informs one of your clerks, the customer and a third party (e.g. pre-announcement of the container in APCS and Portbase) about the clearance note.
4. Finally it reports the clearance, files the declaration and invoices the customer.

AEO certificate extended to 2021

Intris is one of the few software suppliers that enables customers to communicate directly from their system with the customs in Belgium and the Netherlands. Intris obtained AEO certification for this back in 2014.

Intris and WiseTech

Intris NV is a member of the Australian group WiseTech Global. This stock exchange-listed company focuses mainly on innovation in worldwide supply chains.

It develops and supplies cutting-edge logistics solutions that stand out for their far-reaching integration, detailed compliance capabilities and worldwide reach.

WTG has among its customers more than 7,000 logistics companies spread over more than 130 countries, including 33 of the top 50 worldwide third party logistics service providers and 24 of the 25 largest global forwarders.

As a member of the WiseTech Global worldwide network, Intris offers its customers secure future prospects: the significant innovation capacity that is invested locally ensures that all links in the supply chain (including customs management) can keep up with and even anticipate the rapid changes in society.

The post Is your customs system Brexit-proof? appeared first on Intris - Transportation Software.

This will include among other things drawing up and submitting declarations for each import and export movement, paying and accounting for dues and other amounts, and submitting certificates of origin.

Export declarations

The General Administration of Customs & Excise has calculated that after 29 March 2019 the number of export declarations will rise by 47% (and import declarations by 14%). This will bring a whole lot of changes, especially for companies that until now only do intra-community trade (i.e. within the EU).

As soon as Brexit becomes a fact it will no longer be sufficient just to submit an invoice for consignments being sent to the UK. Instead, these goods will have to be declared by means of Paperless Customs & Excise (PLCE), an electronic export declaration that has to be submitted before the goods are allowed to leave the European customs area.

VAT

Even after Brexit it will not be necessary to charge VAT on sales of goods sent to the UK. However, in order to claim the exemption you must demonstrate formally that the goods have crossed the EU outer border. One of the most essential documents for this is copy 3 of the customs declaration.

This can be obtained from the exit customs office which confirms that your goods have actually been exported. This office will send you an electronic message so that you can print out copy 3 of the declaration.

Excise

Brexit will also bring additional procedures for the export of excise goods such as alcohol and tobacco.

As soon as the UK is no longer an EU member state, sending excise goods from Belgium to the UK will be considered as exports to a third country and no longer a movement under the terms of the excise suspension arrangement. And on top of the EMCS formalities for control of excise movements, an export declaration will have to be submitted in the PLCE system.

Conversely, after Brexit, movements of excise goods from the UK to Belgium will be considered as imports, for which the prescribed procedures must be followed. In this case also, transfer under the excise exemption arrangement can only be done as of the moment of importing to Belgium, and the EMCS rules will apply.

Certificates of origin

As part of the trade agreement, both the UK and the EU may or may not decide to draw up a protocol for certificates of origin. Whether or not you will be obliged to demonstrate the origin of your goods will depend on the terms of the protocol.

For instance, if the UK imposes import quotas or embargoes then you will have to submit non-preferential certificates of origin. These certificates are issued by the Chamber of Commerce.

On the other hand if there is a free trade agreement with more favourable import tariffs for goods of European origin then you will have to demonstrate the source of the goods using preferential certificates of origin. These are either issued by customs, or you will have to draw them up yourself.

Exclusive customs consultant

Intris has an exclusive customs consultant for its customs customers. Michel Van Giel, Honorary Regional Director of Customs & Excise, will examine the possible implications along with you and find the most advantageous formula to comply with customs regulations for trade with the UK after Brexit.

The post Brexit will lead to 47% rise in export declarations appeared first on Intris - Transportation Software.

European Customs Decision System (CDS)

A brand-new, pan-European electronic system now permits requests for 22 different types of customs clearance to be submitted by electronic means (see graphic below).

As of 2 October this is obligatory for all economic operators in EU member states. The CDS (Customs Declaration Service) is one of the results of the UCC which came into force on 1 May 2016, aimed at among other things streamlining the customs processes.

This CDS must be used by the economic operators as well as by the customs services, to apply for customs clearance as well as to grant, cancel, suspend, revoke and/or amend it.

How does it work?

An economic operator wishing to submit a customs clearance request has to log in to the EU Trader Portal, the central platform developed for this purpose by DG TAXUD. To gain access to the system the economic operator must first log in to the application run by the particular national customs authority. There they can obtain a user account with which they can log in to the CDS portal.

Requesters must have an EORI number which has to be registered in the country for which clearance is required.

There is an e-learning module that explains the various steps that have to be taken by requesters: https://ec.europa.eu/taxation_customs/eu-training/general-overview/ucc-elearning-programme_en.

Where does it apply?

It is important to specify where clearance is being requested for. Theoretically it is possible for the economic operator to request clearance for all member states, but this inevitably means a long waiting time as permission has to be obtained from all the national customs authorities concerned.

The CDS offers three possibilities:

• validity in all member states
• validity in some member states
• validity in one member state.

Main advantages

1. A single system that applies to all member states
2. Simple management of all customs-related processes
3. Level playing field between all economic operators in de EU, irrespective of the scale of operations.

The post Electronic request for customs clearance: your three advantages appeared first on Intris - Transportation Software.

The EU is determined to promote this trade and is working hard to remove the obstacles in its way, by among other things streamlining the European Customs and VAT legislation.

But already there are plenty of opportunities for logistics service providers to benefit from the e-commerce trend.

The current Customs risks for e-commerce

Many items sold on the internet don’t have to be declared, because of their low value. This means they also escape various other restrictions, such as those on:

• Counterfeiting
• Compliance with EU health & safety requirements
• Protected plant and animal species
• Components that could be used for terrorist attacks
• Weapons, drugs etc.

Strategic advantages of bonded warehouses

Bonded warehouses fall under the supervision of the Customs authorities and so are subject to inspection. A side effect of this is that it eliminates the HSEE (Health, Safety, Environmental and Economic) risk.

But a bonded warehouse also offers various other possibilities for logistics service providers to create added value for e-commerce. These include:

• Creating a strategic stock without the merchandise having to be put on the market and/or re-exported to a non-EU country
• Simplified stock-in and stock-out procedures
• Re-sale of returns (goods that have been refused or that could not be delivered), with the Customs declaration being cancelled after the initial sale (the goods go back into bond after a period of 90 days)
• Using the warehouse as a showroom

Customs and technical advantages

Customs advantages:

• No complex return procedures or loss of import duties and VAT on returned goods
• Simplified procedures: bonding and aggregated declarations
• HSEE checks when goods enter the warehouse

Commercial advantages:

• Faster delivery
• No returns to shippers in non-EU countries
• Re-sale of returns

The post Have you thought of a bonded warehouse for your e-commerce merchandise? appeared first on Intris - Transportation Software.

Let us assume for the sake of argument that Article 50 will be triggered on 1 March. Under the terms of the Treaty of Lisbon a new agreement must be reached within two years; the period may be extended, but only at the unanimous request of the other EU member states.

Let us further assume that no such extension is requested, in which case the UK will cease to be an EU member on 1 March 2019 at the very latest.

In the meantime negotiations will certainly begin on the subject of the agreements governing trade with the EU, but on which model: Norway, Switzerland, Canada …?

However, observers suspect that this will take at least another three years.

But quite apart from these trade agreements there is absolutely no doubt that the UK will cease to be an EU member as of 2019. Which means that all trade with the UK will require import and export documentation.

And in the case of Belgium the volume of trade is anything but small.

Trade with the UK

The UK is the fourth-largest customer for Belgian goods (to a value of 31.9 billion euros per year) and the fifth-largest supplier to Belgium (17.4 billion euros). In other words, Belgium’s exports will be hit harder than its imports.

The main categories of exports to the UK are transport equipment (namely cars from Zeebrugge, accounting for 26.1% of the volume) and chemicals (20.5%).

Although other sectors such as textiles and foodstuffs may not appear so important at first sight, Belgium is still the largest EU exporter of these products to the UK.

On the import side the main categories are mineral products such as oil and gas (21%) and transport equipment (21%).

Cheaper or dearer?

The fall in the value of sterling will lead to imports from the UK becoming cheaper, at least in terms of the “basic” purchase price, as the EU will certainly impose import tariffs. Also, drawing up import documents does not come free of charge.

The converse is also true: the UK will impose import tariffs, and the local declarant also has to earn his daily bread. In short, Belgian exporters will become less competitive than their British competitors.

A silver lining?

Whether the UK will remain Belgium’s fifth-largest supplier is difficult to predict. What is beyond doubt however is that new activities await our companies in the near future. After all, the British too will need to have a customs agent and/or tax representative here in order to handle their Customs formalities.

Or what about an overseas manufacturer with a European distribution centre in the UK? They will probably decide to re-route their goods flow. Via Flanders, for example.

And, since ships follow the cargo, it is highly likely that some shipping companies will change their rotations as a result.

In the wake of these changes it could well be that some companies will no longer be interested in having a London head office, once Britain is no longer in the EU.

In fact this is highly likely, given the drop in the number of EU headquarters when the UK decided not to participate in the European currency union.

This drop from 10% to 6% was all in favour of Brussels, which saw its share rise from 4% to 8.5%.

The post Do you have a customs agent/tax representative in the UK yet? appeared first on Intris - Transportation Software.

In a following article we will go into greater detail about these new aspects in the course of 2017.

EORI now also required for imports

Economic operators who import goods will soon also be required to identify themselves with an EORI (Economic Operator Registration and Identification) number. This needs to be done in only one member state, since the EORI number will be recognised by all Customs authorities in the EU.

Companies must quote the EORI number in all communications with Customs. This has already been obligatory for the past few years when exporting goods.

As of the roll-out of version 17 of the Paperless Customs & Excise (PLCE) system, planned for 7 January 2017, use of the EORI number will also be obligatory for imports. This number must be mentioned in box 8 of the import declaration.

More information on how to apply for and obtain an EORI number can be found on the Customs website.

Reduction in late payment interest

The General Administration of Customs & Excise is reducing the rate of late payment interest from 9.6% to 2%. The lower rate applies to Customs debts that arose after 1 May; for debts incurred before then the rate of 9.6% still applies.

This brings the Belgian Customs into line with the provisions of art. 114 of the Community Customs Code, which states that the rate of late payment interest must be equal to the rate charged by the European Central Bank (currently zero percent) plus two percentage points.

No interest is payable on amounts of less than 10 euros.

In the case of excise the rate of 9.6% continues to apply, although a request to lower it has been placed on the agenda of the National Forum (the platform for consultation between the General Administration of Customs & Excise and the private sector).

Electronic REX replaces paper FORM.A

The REX (Registered Exporter) system comes into force on 1 January 2017. Under this system, exporters can obtain certification for the origin of goods by letting themselves be registered by the Customs authority.

This is relevant for e.g. imports from countries that enjoy a preferential import tariff, namely GSP (General System of Preferences) countries.

With this system the European Customs will make up-to-date information available on registered exporters in a particular GSP country. This will be a trans-European system that will also contain information on EU market players, to support exports to GSP countries.

This will also have consequences for European importers of goods with a preferential import tariff, as until now they had to produce a paper certificate of origin in order to obtain the lower tariff.

Now instead they will simply have to enter a certain code and the REX number.

Note however that the REX system will be introduced very gradually, as and when exporters in the GSP country concerned become registered. The OCT (overseas countries and territories) countries have all requested (and obtained) individual postponement until 2020.

The post What Changes Can Belgian Customs Declarants Expect in The Near Future? appeared first on Intris - Transportation Software.