But even with a free trade agreement, there is still a lot of homework to be done for exporters to the UK.

Let’s go back: at the end of October 2019, British Prime Minister Boris Johnson concluded a withdrawal agreement with the EU and on January 31, 2020, the UK officially left the EU.

At least on paper, because in practice it is still business as usual as a one-year transitional period is foreseen for the EU and the UK to reach a free trade agreement to avoid a hard Brexit.

Only the conversations did not go very smoothly.

Two stumbling blocks

The EU and the UK have not yet reached an agreement because of:

1. Fish. The British want to limit access to their territorial waters, while the EU wants free access as it is today.
2. Competition. The British want unrestricted access to the EU market. That is possible, says the EU, but only if the goods meet our strict environmental, labor or state aid standards. And that goes against the idea of British national sovereignty.

But even if a miracle were to happen and a hard Brexit is avoided, hard nuts would still be left to crack for European exporters to the UK.

British volatility

To be prepared for Brexit, many exporters have calculated the financial impact of this on their business. The import tariffs that the UK would levy as of 2021 were an important parameter in this respect.

However, a new decision by the British government is throwing a wrench in the works: instead of the 85 to 90% of EU goods previously exempt from import duties, a new list recently emerged in which significantly fewer goods are exempt.

Thought of sales tax yet?

Free trade agreement or not: exporters to the UK will have to pay an import VAT. Depending on the Incoterms used, they will have to act as a VAT consignee in the UK and have a UK VAT number.

Physical controls, pre-registration, and customs declarations

Supposing that the UK and the EU reach an extensive trade deal over the next few months, this will not yet include all internal market concepts as we know them within the EU.

Think of the mutual recognitions, the principle of origin, and harmonization. Moreover, a free trade agreement does not mean that there will be no more customs formalities or controls.

Quite the contrary.

The British government recently announced a phased introduction of controls with a six-month transitional period to accommodate customs formalities and debts.

Are you ready for the excisable goods?

Despite a free trade agreement, EU rules on excisable goods will no longer apply in the UK as of January 1, 2021. Payment for excisable goods transported within the EU is deferred until the goods are sold to the end user.

As of next year, these goods, in transport to and from the UK, will become ordinary import and export goods to which an EMCS (Excise Movement Control System) message no longer applies.

British declarants will also no longer be able to register in SEED (System for Exchange of Excise Data) and will no longer be able to create an e-AD (electronic administrative document).

Only Northern Ireland remains: thanks to the Protocol on Ireland and Northern Ireland, freight transport between the EU and Northern Ireland will remain under EU rules until 2025.

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Because our TRIS Cloud solution (in cooperation with our technology partner Oracle) is comparable to Fort Knox. It has to be if the CIA is one of your customers.

Tony Vertenten, Intris CTO: “Oracle simply cannot afford to be hacked. They’ve invested huge amounts in security and our customers can benefit from that.

The Oracle Cloud has it all: the servers, access to the internet, and all of the security. And everything is of a very high quality, the cream of the crop.

The physical security is also impressive: they have three separate data centers that are located at least 100 kilometers apart and are set up as bunkers. Moreover, every part of the machine exists in triplicate.

As far as access control is concerned, the highest level of security is the standard there. All entrances are isolated and closed and everything is very closely monitored.”

What if my competitor is inside that Cloud too? Can he/she access my data?

Tony Vertenten: “That’s impossible. Oracle encrypts everything as soon as it’s stored in the Cloud. The keys to decipher this are managed by Oracle itself and trust me, they have incredibly tight security.

Plus, Intris opted to provide every customer with a separate Cloud environment. One customer’s Cloud is completely separate from another customer’s Cloud. They each have their own virtual machine and database; nothing is shared.

Such a fortress must cost a fortune…

Tony Vertenten: “That’s correct, Oracle has invested a lot in this and still does: in hardware, in security, in knowledge and expertise, although our customers don’t have to pay for that.

An Oracle Cloud subscription is one of the cheaper ones of its kind. Especially considering what’s included.

People also often forget the extra costs of a server on premise. Not only is a machine like that outdated after 5 years, you also have the maintenance costs, the people who have to monitor it, and so on…

An Oracle Cloud ‘machine’ is constantly being renewed without any extra cost to the customer.”

SO

TRIS Cloud is synonymous with:

• Very secure
• Always up to date
• Excellent price/quality ratio

The post Are your files as safe as the CIA’s? appeared first on Intris - Transportation Software.

To make sure that all these flows run flawlessly, more than ever the key lies in advanced, but at the same time rock-solid, ICT applications. “If you want to get it right, even in the logistics sector there is no way other than solutions that start from the workflow,” says Patrick Van De Looverbosch, CEO of Antwerp-based specialist Intris.

“Especially because of its small margins, the development and maintenance of software for the logistics sector is far from easy,” explains Patrick Van De Looverbosch.

His company Intris, short for International Transport Information System, has been serving this market for 25 years with digital solutions that improve administration efficiency along the different links of the logistics chain.

Customs agents, shipping and line agents, transporters, large shippers, and especially forwarders call on the Antwerp market leader in its sector.

“With my experience in the transport and customs world, Intris has focused on platform-independent software from the outset. This way, we have avoided having to spend too much time on adjustments when updating those platforms, which has also allowed us to pay more attention to the features of our products. This allowed us to quickly establish ourselves firmly in the market,” says the business manager.

“Our focus on forwarding companies instigated our further development into an integrated logistics service provider. We developed an initial software solution that allowed our customers’ business systems to communicate with their customers’ or third parties’ business systems.”

Since an Enterprise Service Bus (ESB) such as this responds to the processes between packages, it allows for fast switching. “Because it keeps you, as a developer, from having to adapt the underlying packages to the client’s needs over and over again. This innovative step made an initial acceleration happen,” he states.

Workflow Defining

With sophisticated solutions tailored to the workflow, Intris took the next innovative step about ten years ago. “While this approach was already well embedded in the industrial sector for example, it was slower to gain ground in the logistics world. Even if mapping out the business processes also makes it clear to a logistics company which steps it no longer needs to take.

Those are often only taken because people are so used to them that they no longer wonder if there is any other way. Even though the margins in the sector are under considerable pressure. At the same time, customers of logistics players wish to have an up-to-date overview of stocks and want documents and invoices to be processed automatically. It is impossible to achieve this without a clear workflow. That’s why this is the best way of working for us today,” Patrick Van De Looverbosch stresses.

“The concept of a customs package is simple in itself. But the constantly changing context creates a more complex story.”

With customs to him being the beating heart of logistics, it was obvious that Intris was initially going to focus its developments on that. The challenges in this are the changes in regulations and features that frequently need to be integrated into the software package.

“The concept of a customs package is simple in itself: you deliver something, then you receive a document. But the constantly changing context, such as trade restrictions, creates a more complex story. Under no circumstances should our customers bear the brunt of this. If they have a maintenance contract with us, we will keep them up to date without an additional fee.

Incidentally, with Michel Van Giel, we have had a former director of customs in our ranks for several years now. He assists our 45 employees with the conversion of those customs rules into our packages. His expertise also helps us to assess perfectly whether questions from customers fit within the legal framework,” the CEO points out.

Brexit Proof by Australian Alliance

Since the spring of 2018, Intris has formed part of the Australian WiseTech Global Group, which is already number 1 in the same segment in America and Australia. “In terms of philosophy and approach, we were already on the same line, so this alliance was a logical next step.

Looking at the future, the collaboration with a financially powerful group allows us to keep shifting gears and developing at the pace that the market demands,” says Patrick Van De Looverbosch. The international connection also helped Intris to work out solutions for Brexit, whatever the outcome will be.

Reliable across the board

In addition, the obtained certificate of Authorized Economic Operator proves that customs considers Intris to be a reliable partner in cross-border trade. It is a company that, for that matter, has established itself throughout the entire logistics chain, because over the years it has also developed cloud applications for communication with customs services, declaration of hazardous cargo, warehouse management, tax representation, and more.

“With Squid we now offer customers a user-friendly integration and communication platform to quickly connect with both government and private platforms. For example, we have already joined NxtPort and RX/SeaPort for the Antwerp and Zeebrugge ports respectively, and integrations with the Rotterdam Portbase platform are also possible.

We didn’t pick the name Squid by chance; it was chosen because of all of [our] tentacles reaching far and wide,” explains Patrick Van De Looverbosch.

“With a quarter of a century of experience, we can rely on architecture and components to be able to respond proactively to new situations. For example, after installation and configuration, a new customer can quickly plug into any part of the full package he finds appealing.”

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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

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Whether it will be a hard or a soft Brexit, deal or no-deal, the fact is that the UK will no longer be part of the EU as of 30 March 2019. In the best case there will be a transition period lasting until the end of 2020, with a possible one-time extension until the end of 2022.

But although the ultimate deadline may be uncertain, one thing is blindingly obvious: all scenarios will bring customs obligations with them, and trade with the UK will involve formalities that have to be met.

Which measures can you take already now?

1. Make sure you understand your own flow of goods and what your Brexit weaknesses are: longer transit times, the need for additional documentation, import duties …

Assume the worst.

To carry out a Brexit scan see:
– general (Federal Govt. Dept. of the Economy)
– specifically for VAT matters (Customs & Excise)
– Flanders Investment and Trade

2. Brush up your knowledge of Customs & Excise, because if you’ve never traded with a non-EU country you’re in for some unwelcome surprises.

Agree who is responsible for what within your company.

3. Speak to your customers, suppliers, service providers etc.

Review your current and future work procedures, agreements and conditions. Screen the contracts for liabilities, KPIs, Incoterms, capacity, exchange rate conditions etc.

4. Contact customs to request your EORI registration.

You need this Economic Operator Registration and Identification Number to import or export outside the EU (and so also the UK).

5. Get a third party to take care of your customs processing; make sure they have the necessary information to do this correctly.

6. Look at the possibilities for investing in customs technology in order to cope with the increased volume of transactions and clearance costs.

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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.

Or are you more of a planning-is-already-part-of-the-holiday type? Do you enjoy mapping out your route, comparing hotels and poring over timetables?

It’s a matter of personal preference, of course, but the prices of the two approaches are difficult to compare. At first sight the all-in option is more expensive, because you don’t count the hours of preparation in the second option.

But what also don’t get counted are the hitches that have to be solved along the way and so can’t really be considered as vacation time. Anyway, there is no such thing as the perfect formula for a successful vacation, because it’s such a personal thing.

Also, it’s temporary in nature: holiday hiccups are an annoyance, but with time they fade from memory. Well worth the risk.

But where you really mustn’t take risks is with your company’s IT environment. Risks such as system crashes, getting hacked, no longer being up to date …

To say nothing of the variable costs, the headaches and the lost personnel time that an “on premises” IT environment brings with it.

The alternative? The Cloud

Our customers who run their TRIS solution in the Cloud minimise their risks in many ways.

1. They don’t have to invest a big budget that weighs on their cashflow. Instead they pay a perfectly manageable monthly rate.
2. They don’t have to worry about hardware performance declining and the need for updates.
3. Their system is fully secure.
4. The application is configured via https, with the necessary certificates.

With our Cloud solution you play it safe

1. The systems are always up to date (which also minimises the chances of security leaks).
2. Remote working is always secure.
3. You have your own private server, so you don’t have to share your Cloud with anyone.

And if these reasons aren’t already enough, your possible downtime is reduced to a minimum. The updates are done after regular working hours and at the weekend, so they don’t get in the way of your day-to-day work.

And if there’s a power cut or your internet connection goes down, you can simply carry on working from a different location.

So, you’d rather play safe?

Perfect! We’ll get you up and running in the Cloud within three weeks!

The post How to play safe with your IT environment appeared first on Intris - Transportation Software.

Patrick Van De Looverbosch, CEO of Intris, explains the advantages that Intris offers for this.

“The preparation work is absolutely critical. We take as long as necessary to analyse our customer’s business processes. Our people have followed Prince2 training in project management for this.

In consultation with the customer they draw up realistic objectives and attainable milestones. Another important precondition for success is knowledge of the logistics world. Our people are familiar with the challenges facing the customer. e

We speak the same language, and they appreciate that,” says Van De Looverbosch.

Workflow management

“Our solutions are very practice-oriented, which also makes them particularly user-friendly. We have translated the paper files into software, as it were, so that the user follows the same logical steps as if leafing through the familiar papers. But the system is designed so that it cannot make errors or miss out a step.”

“Together with the customer we inventorise the SLAs and KPIs and translate them into to-do lists that have to be checked off one by one. The dashboard function shows immediately which steps are most urgent. The same goes for the accompanying documents. At management level, this dashboard shows the financial data for each file.”

All links in the supply chain

“We focus on the three important links in the supply chain, namely forwarding, customs and warehouse. In each of these solutions we have integrated the operational and financial aspects fully with each other, including the digital document flow.

Most of our customers take two of these solutions or all three, depending on their core activities. But even if for example they outsource their customs formalities to a third party, we can integrate the external packages seamlessly with our system, so that no additional manual input is needed.”

Seamless integration

Getting an international consignment from producer to end customer easily involves 100 people, each with their own communication system. “To avoid additional input we have developed the TRIS Squid integration and communication platform,” Van De Looverbosch explains.

“This provides direct connections with the customs authorities, port platforms, portal sites, software solutions used by third parties, etc. The communication is seamless, with zero avoidable errors. Furthermore we are the only ones in Europe to have AEO certification for our communications with the customs authorities.”

Worldwide network

As of this year Intris is a member of WiseTech Global, a stock exchange-listed group. WTG 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.

“By joining 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,” Van De Looverbosch concludes.

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