Brexit webinar ABM 06Dec2018

© ABM Data Systems 2018
CustomsWare
transforming customs software
Brexit and Customs Filing
Implications – are you prepared?
And how to prepare when you don’t know what to prepare for

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Speakers Bio
Tony O’Grady
Business Development Director
Tony O'Grady is Business Development Director of ABM Data, a WiseTech
Global group company. CustomsWare is ABM Data's innovative technology
that powers WiseTech's Universal Customs Engine, a software framework
for building customs procedures. CustomsWare supports declaration filing
solutions across multiple countries.
Tony was a founder of ABM Data following a career managing innovative
solutions for the logistics industry. He has held management positions in
Expeditors, Ryanair and Price Waterhouse and is a Computer Science
graduate of UCD, Dublin, Ireland. He is a member of both the ICS and CILT
and is passionate about aviation, sport and music.

© ABM Data Systems 2018© 2018 ABM Data Systems.
1. What are national authorities doing
2. What is business doing
3. What can you do
4. Conclusion
5. Q&A
Preparing for Brexit

UK international trade value
EU
53%
North
America
11%
Asia-
Pacific
20%
Non EU
W. Europe
8%
Other
8%
UK ImportsUK ExportsUK Trade
2016
Source: UK ONS
EU
45%
North
America
17%
Asia-
Pacific
16%
Non EU
W. Europe
10%
Other
12%

Risks for Business
Source: Eurostat, HSBC. Note trade is the sum of imports and exports
Total Trade In Goods With The UK (2015)

Back to the future - 1995

What are national authorities doing?

Frictionless borders
Increased
inspections:
Imports - 30%
Exports - 100%

Frictionless borders

EU Border Force

Lorry traffic and EU share of trade in 2015
Source: Dept. for Transport:
Maritime and Shipping Statistics
Additional officers Declarations Declaration cost Cost to industry
-5 000 +200M £32.50 £13B

UK grant assistance
£3m for the development of new customs
broker courses
£2m to fund up to 50% of the cost of
training broker staff for freight forwarders
£3m to fund IT improvements to increase
the automation and productivity of
completing customs declarations
(max €200 000)

Preparations in the Netherlands
40M tonnes annually, 8% of total
10 500 ships to be treated as “foreign”
35 000 SME’s affected in the Netherlands

Case study: Turkey - Bulgaria
Source: FT.com

Case study: Sweden - Norway

National authorities – recap
• Preparing to restore border controls
• Strengthening national customs agencies
• Creating a pan-EU BorderForce agency
• Responding to the rise of e-commerce
• Looking to technology to increase capacity
while maintaining controls
• Frictionless does not mean an absence of
controls
• Providing supports to industry through
training and other grants

What are businesses doing?
© Zf.ro

Rules of Origin
• United Kingdom inputs (materials or
processing operations) are considered as
‘non originating’ under a preferential trade
arrangement for the determination of the
preferential origin of goods incorporating
those inputs.
• Proving EU origin of the goods needs to take
into account that United Kingdom inputs no
longer count as ‘EU content’.

• Before Brexit: 0 EUR / GBP?
• Post Brexit:
− Estimated cost of £32.50 per customs
declaration (HMRC estimate)
− Customs Duty, Import VAT, miscellaneous
fees + taxes
− What if you change multiple sourcing
scenarios?
− How to assess the costs of anti-dumping duty,
licenses, permits, quotas and visa
restrictions?
− How would you create comparable views of
alternative sources of supply that consider all
facets of Brexit?
What Are Your Total Landed Costs Post Brexit?

Case study - Next
Source: NextPlc.co.uk
€20M UK import duties
€0 EU import duties
€100K customs clearance

Case study - Honda

Case study - Airbus
4 UK facilities
14 000 employees
25 sites
80 000 trips pa
4 000 suppliers in UK
110,000 jobs in the UK
supply chain
€1B in extra buffer stock
€1B in extra costs

Business Brexit readiness
Brexit plans
Prepared In progress No plans

Business – recap
What business is doing:
• Keeping informed of developments
• Engaging with suppliers and customers to understand their
supply chain
• Identify upstream and downstream supply chain risks e.g.
Rules of Origin, delays, costs, compliance
• Mitigate risks – e.g. create corporate entities as
contingencies, re-factoring supply chains
• Engaging with service providers to identify how they can
help, and how you can help them
• Develop a Brexit strategy that creates options

What can your business do?
Photo credit: muffinn on Visualhunt / CC BY``

Analytics: Identify Supply Chain Risks
Exploit existing systems and data to identify risks and opportunities.
Use information systems to identify current shipment flows
– ERP, order processing, sales, purchasing, stock control, warehousing
Determine which of these shipments will be subject to customs control
post-Brexit
Consider the completeness of the data available today
Expand part master data
Obtain classification data for the affected goods
Use the classification to determine the need for different inspections
– phytosanitary, veterinary, excise, etc.

Smart Collaboration incl. declaration filing
Integrate external and internal data sources to drive compliance and declaration filing across borders.
 Engage with your logistics service providers
 Look beyond your own supply chain
 Look to file declarations in the countries that you serve now, or will need to
 Digitise everywhere
 Seek integration opportunities
 Improve supply chain velocity to offset possible border control delays
 Apply for new licenses or authorizations to achieve ‘green lane’ facilitation
 Establish if additional bonds or guarantees will be required
 Consider Bonded Warehouse programs to defer duties & VAT

Save costs & Improve compliance:
Automate
 Reduce paper handling, eliminate re-keying
 File multiple declarations based on the same data source
 Invest in self-filing where this is appropriate
 Ask your customers and suppliers to provide commercial invoice data
 Look for systems or service providers that can automate port reporting

Save costs & Improve compliance:
Automate
Prepare for future event: Become more Agile
& Flexible
Once the information is digital, software can adapt to changes in the business quickly and easily
 Leverage systems to respond quickly to changing demands
 Closer relationships with customers, suppliers & logistics partners
 Establish a legal entity in key markets
 Register as a declarant in key markets
 Consider alternative shipment routing

Manage the risks
• Supply chain disruption and delays
• Red tape and paperwork generating possible delays in every trade
lanes, increasing costs
• Brexit management is resource-intensive and time-consuming,
increasing risk of non-compliance
• Uncertain trade environment making future planning challenging
• Increased taxes and duties
• New product testing and standards constraints
• Changing relationships with customers, suppliers & logistics partners
• Impact on Export Controls
• For groupage shipments, consider the need to split to avoid delays
when individual loads are subject to control
• Prepare for inspections –Plant, Veterinary, Excise

Brexit To-Do List
 Assess current goods movement patterns
 Survey your suppliers and customers for their readiness
 Engage with your logistics service provider
 Develop a Brexit strategy that creates options
 Have a Plan B
 Research available grants
 Invest in technology and customs capability
 Build end-to-end data transfer with your customers
 Use business data to drive declaration filing compliance on both sides of the
border – UK and EU
 Consider the need for :
 registrations and authorisations in all countries
 additional inspections – phytosanitary, veterinary, excise
 additional bank or customs guarantees
 Consider the impact :
 of changes in rules of origin
 on cash flow and inventory
 Become an AEO
 Keep informed

The time is now

CustomsWare
transforming customs software
Thank you

Brexit webinar ABM 06Dec2018

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