3/7/2021 Becoming a customs broker can help you win more logistics work - The Loadstar

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3/7/2021 Becoming a customs broker can help you win more logistics work - The Loadstar

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By Arne Mielken
02/07/2021

Time is running out for UK importers of European goods who deferred

their customs declarations as part of a six-month moratorium to soften
the impact of Brexit.

But many importers are woefully unprepared to meet the rolling

deadline for lodging supplementary declarations for goods imported
from 1 January. The situation has been compounded by a shortage of
experienced customs brokers.

Canny freight forwarders that offer customs brokerage services, as well

as handling their customers’ transport needs, will be well placed to
capitalise on this post-Brexit chaos.

So, should you set up your own brokerage service, and what sort of
investment is required?

You don’t need a special licence to be a UK customs broker, which means

anybody can become one, in theory, but you do need to know what
you’re doing.

It might look like simple form-filling but a sound understanding of

customs processes and procedures is essential. That means being able
to complete and lodge customs declarations correctly, compliantly and
speedily.
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3/7/2021 Becoming a customs broker can help you win more logistics work - The Loadstar

broker can support clients with the payment of import duties and VAT as
well, where required.

And that’s not all – customs brokers can also provide specialist guidance
on a range of complex subjects, from phytosanitary and veterinary
requirements to dual-use goods and rules of origin.

It’s not an easy job and it requires specialist skills and training, as well as
lots of practice.

You also need to have the necessary customs software to do your job. All
documentation is currently submitted to HMRC through its CHIEF system
but you may also need access to the individual inventory systems serving
the different ports where goods are shipped to.There are many potential
benefits for transport companies that have their own in-house team of
customs geeks.

It can help you win new business from importers and exporters
 struggling to navigate ever-changing customs regulations. You’ll be seen
as a miracle worker if you can make borders disappear and deliver your
clients’ goods, especially without them incurring excess duties and
delays.

As well as the welcome extra income you’ll generate with each customs
declaration you file, having sole responsibility for your customers’ freight
and customs clearances also gives you more flexibility to plan your
routes.

But you should also consider the potential downsides and liabilities
before setting up your own customs brokerage, not least of which is the
financial investment that would be required in IT and staff training.

Then there’s the thorny issue of who should carry the can when things go
wrong. Although you usually wouldn’t be legally responsible in the eyes
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3/7/2021 Becoming a customs broker can help you win more logistics work - The Loadstar

It’s always a good idea in such situations to keep detailed records to

show that you have done things by the book. Brokers also need the
much sought-after Customs Freight Simplified Procedure (CFSP)
certification, basically an electronic customs declaration for speeding up
the importation of goods.

You will have to prove you’re financially solvent and have the necessary
knowledge, capacity and systems in place to operate as a customs
broker. So there are some quite big hurdles to jump first, and gaining this
type of certification can take months.

If setting up your own customs brokerage isn’t a viable option, you could
consider outsourcing services to an experienced customs broker on
behalf of your clients. This may be a better solution for smaller freight
forwarders that don’t want the hassle and cost of setting up their own
customs infrastructure.

Demand for customs brokerage services is expected to increase further

over the coming months. The ability to submit supplementary
declarations months after goods have been imported will end on
1 January 2022, and the backlog is likely to be huge. Freight companies
that can meet importers’ customs needs will be able to take full
advantage of this increased demand.

This is a guest post by Arne Mielken, a leading global trade expert in the
UK and the EU and founder of customs and training consultancy Customs
Manager. Arne supports businesses to reach their international customers
faster, by cutting costs, red tape and paperwork. The company also offers
a specialist customs declaration filing and verification service. 

For more information visit https://www.customsmanager.org

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