Useful Information

Ocean International are delighted to share our 25 top tips for importers and exporters to aid in your overseas business.

1. You should check that you are using the correct HS code for your products. This is a ten-digit commodity code that is entered to Revenue & Customs both on import and export. This will ensure that the correct duty rate is applied both in the UK and overseas for your exports.

13. Exporters need to be aware of regulations in the country of destination in order that goods are not snagged by the local authorities on arrival.

2. Please be aware that all shipments should be covered by goods in transit marine insurance for their full value. Most carriers only offer limited liability based on the gross weight which can leave a big shortfall in compensation should there be loss or damage.

14. Shipments to the U.S.A require that the U.S clearance broker creates an ISF record 48 hours before the vessel departs

3. Different modes of transport use differing ratios to charge on the actual weight or the volumetric weight, whichever is the greater. Sea freight is 1 to 1 – Air freight is 6 to 1 – Road freight is 3 to 1 and Air couriers use 5 to 1.

15. Importers should make sure they claim any preferences for free or reduced duty payable. There are also a number of procedures to avoid paying duties such as temporary imports, goods for exhibition, returned goods for repair and inward processing relief, to name but a few.

4. If any of your products can be used in a military capacity then dual use rules will apply and import or export licencing may be required. We can assist in this matter.

16. Duty is calculated on the CIF value of the goods with the VAT payable on both these combined together with a UK transport uplift.

5. Hazardous goods must always be declared in order that the correct documentation and labeling is applied before shipment, otherwise penalties may be applied.

17. The majority of destinations require packing in ISPM 15 compliant heat treated timber otherwise fumigation charges will be incurred on arrival.

6. An MSDS is an invaluable source of information to aid correct classification of hazardous goods.

18. Be aware that certain destinations will require certificates of origin, particularly across the Middle East.

7. Exporters should consider selling on a CIF basis in order to keep maximum control.
Importers on the other hand should consider buying on an FOB basis, again to keep maximum control.

19. Demurrage and quay rent are charges for containers on the quay-side awaiting either clearance or release. Detention is payable after the free period for loading or unloading at your premises.

8. Ask us for a copy of the latest Incoterms in order that you are fully aware of your responsibilities during the shipping process.

20. Revenue and Customs set the rate of exchange at the start of each month in order to calculate the duty and VAT payable on arrival.

9. Importers should make sure that they only claim their VAT on the C79 certificate that is sent directly by Revenue and Customs. Even the C88 customs entry is not sufficient to support the reclaim.

21. In order to calculate the volumetric weight of an airfreight shipment, multiply the length by the width by the height in centimeters and then divide by 6000. So a pallet 120 cms x 120 cms x 120 cms equates to 288 kilos by volume.

10. Ensure that your freight forwarder is a member of the British International Freight Association. This will ensure that you are dealing with a reputable company with a code of conduct and a set of approved standard terms and conditions

22. Known shippers are approved for airfreight and no further security measures will be applied by the airlines to screen the goods on arrival at the airport of departure. However, the rules and regulations are stringent and regular vetting is required.

11. Take care of original bills of lading. These are title documents and cargo can be released to whoever presents them to the shipping line.

23. Export airfreight has to be screened by xray unless you are a known consignor, if goods fail then secondary (alternate screening) is required.

12. Letters of credit need to be reviewed at the outset to check that all the criteria can be met. Any discrepancy will delay and in some cases negate payment altogether.

24. The majority of shipping containers are either 20′ or 40′ in length although there are 10′ & 45′ containers on certain trades. The 40 high cube container is 9’6” tall as opposed to the standard 8’6”.

25. Some common shipping abbreviations and their meanings:

IBC	Intermediate Bulk Container	DDP	Delivery Duty Paid
HS CODE	Harmonised System Commodity Code	BAF	Bunker Adjustment Factor
L/C	Letter of Credit	CAF	Currency Adjustment Factor
TEU	Twenty Foot Equivalent	ISF	Importer Security Filing
LCL	Less than Container Load	Ro/Ro	Roll on / Roll off
FCL	Full Container Load	SIVA	Simplified Import Vat Accounting
POL	Port of Loading	TURN	Traders Unique Reference Number
POD	Port of Discharge	CHIEF	Customs Handling of Import and Export Freight
MAWB	Master Airway Bill	EORI	Economic Operator Registration and Identification
HAWB	House Airway Bill	AEO	Authorised Economic Operator
FOB	Free on Board	IATA	International Air Transport Association
CIF	Cost Insurance and Freight	BIFA	British International Freight Association

Tricks of the Trade

In celebration of our 25th anniversary, Ocean International are delighted to share our 25 top tips for importers and exporters to aid in your overseas business.