Travelling Abroad

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All Foreign Travel Advice can be found here: https://www.gov.uk/foreign-travel-advice  

COVID 19 
The UK is currently maintaining a Red-Amber-Green (RAG) system for overseas travel, Red being harshest restrictions, Green for loosest. This is only for returning to the UK, a Green listed country may still have restrictions or requisites to enter the country. Please refer to the Foreign Travel Avice for country guidance 

Current Green list:  

Australia   

Brunei  

Falkland Islands  

Faroe Islands 

Gibraltar  

Iceland  

Israel and Jerusalem  

New Zealand  

Portugal (including the Azores and Madeira)  

Singapore  

South Georgia and South Sandwich Islands  

St Helena, Ascension and Tristan da Cunha. 

Full RAG listings: https://www.gov.uk/guidance/red-amber-and-green-list-rules-for-entering-england  
Returning to the UK Guidance: https://www.gov.uk/uk-border-control  

Brexit 

Free Movement of People ended on the 1st January 2021, meaning you may have to apply for visas to continue working in the European Union.  

The European Union, and other European states (such as Norway & Iceland), operate under the “Schengen Zone”, a collective agreement which monitors passport and visa free travel inside Europe. 

Currently, British citizens currently benefit from a Schengen Zone waiver, allowing visa free travel in the EU for up to 90 days in a 180-day period. However, you may need a visa or permit for certain business activities or studying. 

Which business activities require a visa varies from EU state to state, so do check the Schengen website (below) before travelling. 

If you need a visa, the Schengen Zone details the requirements for Visa in each EU member state, and can be found here: https://www.schengenvisainfo.com/schengen-visa-countries-list/. Global members can also utilise the Global Business Network to find in market support for your employment, or employee, needs. 

All travel information as of 24/05/2021 

EGYPT: New Customs Pre-Registration System

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Egypt has made mandatory Advanced Cargo Information (ACI) declarations from October 1st 2021. This is a pre-registration system for shipments before their arrival at Egyptian ports.  To enable goods to be released on arrival in Egypt without delay. 

Update: Date of mandatory change from July 1st to October 1st: https://www.nafeza.gov.eg/en/site/aci-trial-extension.

Exporters to Egypt must now register to use the blockchain document transfer platform “Cargo X” which links to the NAFEZA system (below) to comply with new processes from 1st October to cross the Egyptian customs border.  

Pre-shipment the registered importer to confirm Advanced Cargo Information Declaration (ACID) number to be included on all shipment documentation to be uploaded to the “CargoX” system that interfaces with NAFEZA.  Documentation should also include the importer and exporters NAFEZA number. 

Exporters to Egypt may need to provide a draft transport document, i.e. bill of lading, air waybill, railroad waybill, or something similar, like an itemized commercial invoice or itemized packing list, for ACI. 

Without the ACID number, goods will be rejected and returned from the ports without discharge. Note from the Egyptian Embassy in London: 

“The implementation of the system began from April 1, with the actual implementation of the system binding as of October 1st, 2021, and since the aforementioned system aims to assess and identify risk elements prior to shipment to Egypt, depending on the initial data of the shipment (data of the source, importer, item. … etc.), you will need to notify the system to inform members 48 hours prior to shipment.”  

ACI filing price will cost US $50. 

For more information, please visit the following website: https://www.nafeza.gov.eg/en 

New UK Tariff Suspension Scheme

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The UK has announced a new Tariff Suspension Scheme, to boost domestic competitiveness by allowing unlimited quantities of temporarily reduced, or withdrawn, tariff imports. Once a suspension has been introduced, all importers can benefit from it. 

Companies must apply for a duty suspension, with more information and description of the criteria to apply available on the Government website here: https://www.gov.uk/guidance/duty-suspensions-and-tariff-quotas  

Duty suspensions for products which previously existed in the UK under the EU suspensions regime have been carried over through Brexit. You can find the current duty suspensions using the Trade Tariff Tool. 

Companies can apply from 1 June, 2021, with a final date of 31 July, 2021. Granted applications will apply from early 2022, and last until summer 2024. 

Equally, businesses will be able to make objections to any application later this year. You can object to a duty suspension being applied to specific products or to the applicable commodity codes. 

Back to International resources

Incoterms 2020

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Incoterms (International Commercial Terms) are a set of 11 commercial terms that define the costs, risks and obligations between the buyer and seller in International Trade. The terms are reviewed every 10 years by the International Chambers of Commerce (ICC), and we currently trade on Incoterms 2020. 

Key Incoterms- 

ExWorks 

In Exworks, the buyer takes responsibility for the costs and risks, including customs, in the movement of the goods. The seller makes the goods available at a specified location for the buyer to collect and transport. 

FCA (Free Carrier) 

A flexible rule for when the buyer is organising the main transport. Risk can transfer from seller to buyer in one of two ways. When the ‘named place’ is the seller’s premises and they are loaded on the transport arranged by the buyer. 

Or, When the ‘named place’ is another place, the goods are delivered when loaded on the seller’s means of transport or they reach the named place and are ready for unloading from the seller’s means of transport and at the disposal of the carrier or another person nominated by the buyer. 

The seller is always responsible for export clearance, but the buyer assumes all risks and costs after the goods have been delivered at the named place. 

CIF (Cost Insurance Freight) 

With CIF, the seller delivers and clears the goods export at the port of shipment, pays for the transport of the goods to the port of destination, and also pays for minimum insurance coverage on the goods to the named point of destination. 

CFR (Cost and Freight) 

Under CFR terms the seller is required to clear goods for export, deliver and board them at the port of departure, and pay for transport to the named port of destination. The risk passes from seller to buyer when the seller delivers the goods onboard. 

DAP (Delivered At Place) 

Under DAP, the seller arranges the means and transport of the goods to the named place. The buyer is responsible for unloading, import clearance and relevant import duties or taxes. 

DDP (Delivered Duty Paid) 

With DDP, the seller is responsible for transport to the named place, export & import clearance and any relevant import duties or taxes. This places most responsibility on the seller, and may require establishment in the country of destination. 

For more on Incoterms, see the ICC Website: https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-2020/  

Return to Trade toolkit

Can you claim duty and VAT back on your trade processes?

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Special procedures can be applied by your business to suspend or delay the payment of duties for your export/import.  

There are three main types of special procedures: 

-Inward Processing Relief 
Provides relief on non-UK imports that are being processed in the United Kingdom, to then be re-exported within a specified time frame. No duty or VAT is due unless the time expires or the good enters circulation of the UK market. Processing can be anything from repacking to complex manufacturing, but the process must be declared to HMRC. 

-Customs Warehousing 
Specifically authorised storage areas where non-UK goods can enter without being subject to duty or VAT. Duty is applied if the goods enter free circulation. Customs Warehouses are HMRC monitored, so goods can only be stored in Customs Warehousing, with limited processing allowed. 

-Returned Goods Relief 
Allows you to bring back previously exported or imported goods, for example, if they are rejected at the border. Goods must be brought back in the same condition they left, unless for maintenance, and within 3 years of leaving. 

You must ensure you are using the correct Customs Procedures Code to benefit from special procedures. Normally, you must be HMRC authorised to benefit from such procedures, but you can “authorise by declaration” three times a year. 

There are other mechanisms and procedures to claim duty back, to check if your good or process can benefit from this, Click here.

If you are planning to send products for exhibitions or showcasing, you should use an ATA Carnet. Find out more in our dedicated section on Carnets by clicking here.

Return to Trade toolkit

UK Trade Statistics March 2021

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As business understanding of the new UK-EU relationship grows day by day, trade statistics for March 2021 and the first quarter of the year demonstrate the impact that EU Exit has had on UK imports and exports so far.

Trade with the EU has continued its recovery from the historic lows of January, with imports and exports seeing monthly growth in March, but statistics for Q1 2021 show a substantial fall in both EU imports (-21.7%) and exports (-18.1%) when compared to the final quarter of 2020. On the other hand, trade with non-EU markets has remained relatively stable. The contrasting picture between EU and non-EU markets suggests that the end of the transition period, the implementation of the EU-UK Trade and Cooperation Agreement, and the new challenges that it presents to business, has had a damaging effect on UK trade.

Stockpiling in the latter stages of last year will have buoyed the 2020 Quarter 4 statistics somewhat, but these statistics, along with the testimony of North East businesses trading with the European Union, illustrate the challenges that EU Exit has presented to the business community nationally and in our region. Internationally trading businesses will be critical to the nation’s COVID recovery, and government will need to continue to support businesses financially and through clear, timely communication of the upcoming changes to the UK-EU relationship, so they can make the most of opportunities in the largest single market in the world.

Monthly Picture

Total trade for the UK in March 2021 grew by £4.6bn on the previous month, with imports and exports both increasing by 6.5% and 9.3% respectively. The total value of UK exports in March 2021 was £26.7bn, while imports were £37.0bn – the overall trade deficit remained static at £-10.3bn.

Traders in both EU and non-EU markets increased their volumes when compared to February 2021, as EU exports increased by 8.6% due to businesses adjusting to the new UK-EU trading relationship and overcoming new barriers to trade, while non-EU exports also grew by a slightly higher 9.9% or £1.3bn, to total £14.0bn compared to the £12.7bn value of UK exports to the EU.

Quarter 1 in Perspective

With only seven days between the UK-EU trade agreement being announced and its implementation, the first quarter of 2021 was always going to present challenges to traders. UK exports to the EU valued £32.2bn, down by £7.1bn or 18.1% compared to Quarter 4 of 2020, while imports from the EU fell by an even greater £14.0bn or 21.7% to a value of £50.6bn.

Non-EU trade had a remarkably less dramatic time in the first quarter of the year, with UK exports to non-EU markets growing by 0.1% compared to Quarter 4 of 2020, and imports falling by 0.9% to £53.2bn. This is the first quarter, since records began in 1997, where UK imports from outside of the EU were of greater value than those from the EU. Imports from outside the EU in Q1 2021 valued £53.2bn while exports valued £41.1bn.

One key driver of non-EU import growth has been an increased demand for clothing, specifically from China. Export growth has been supported, in part, by an improvement in the automotive sector – one of the hardest hit sectors in the last 12 months. As showrooms reopened across the UK and demand for new cars grew, imports and exports of automobiles and related machinery grew with both EU and non-EU markets.

Julie Underwood’s latest for The Journal

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Julie Underwood, director of international trade, North East England Chamber of Commerce

There is a sense that the mood has changed. The energy of people being together again, pubs and restaurants open alfresco, with diners basking in the spring sunshine, there is definitely as sense of positivity and hope which we all need after the difficult start to the year, then we just needed to get through it.

We are seeing businesses move back into their office locations, helping to re-energise our towns and cities, with a renewed sense of hope and community. That isn’t to say that there is still more to do.

The Chamber is dedicated to helping businesses not only with regional and national connections, but internationally too. Our opportunities to travel are still very much curtailed, yet businesses have adapted remarkably well to everything we can put in front of them virtually. Who would have thought that a business could still be present at one of the world’s largest exhibitions of the food and drink sector in UAE, we helped over 50 businesses prepare and attend , supported by a full training programme to help them utilise digital technology to meet buyers and pitch on line. Following this success, the format will be replicated for the Indian market and there are further virtual visits planned for the US, Australia, and Ireland.

Through the pandemic we have kept in contact with our friends in Ireland, knowing the importance of this neighbouring market. Between our respective Chambers we have supported our members through the resulting changes of Brexit, and at the same time resolving to make our relationships even stronger so we can help businesses continue to trade together, irrespective of the legislative complexities and challenges.

Understandably, we have seen a dramatic decline in exports in the first quarter of the year, due to factors outside of businesses control, but with grit and determination our exporters are doing everything they can to maintain and develop their international sales and relationships built over many years. We are with them all the way. But we are waiting for that similar change in mood, for example the excitement of boarding a plane, to meet potential customers.

Indeed, Spring has launched us into a sense of hope, we now need to build on this to see our international plans flourish when we can travel again and fully appreciate the wonderful places and people we have so missed.

Latest Chamber survey results show tough trading conditions

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The largest independent survey of North East businesses shows that the end of 2020 remained difficult for firms across the region.

Results from North East England Chamber of Commerce paint a clear picture of difficult trading conditions, with confidence remaining low by historic standards Scores for key indicators all sit in negative territory, with UK sales at-22.9 points.

Chamber President, Lesley Moody (AES Digital) said: “These survey results show that even though business conditions continued to improve during the final quarter of 2020, things are still very tough for many firms across our region. Covid, Brexit and the economic climate have kept sales, orders and cashflow firmly in negative territory, despite some improvements over the latter half of the year.

“Just over a year on from the general election, this is the backdrop against which we assess the Government’s progress on ‘levelling up’. We have been very clear: the impact of this crisis has not been felt evenly across the country and has fallen harder on our region and our communities.

“These results are a stark reminder of how much work is needed to get our economy back on its feet. Yet the improvements we see are also testament to the resilience of our businesses; who have been doing everything they can to survive and grow in the face of exceptional circumstances. Let us all hope that 2021 provides the rewards and recognition they deserve.”

Mike Wade, finance manager of Chamber member, Hodgson Sayers agrees with the findings. He said: “We have seen within the construction industry, particularly within our main area of activity the repair and refurbishment sector, some recovery from the rapid downturn at the start of the initial lockdown, albeit this is gradual. The Construction Leadership Council worked swiftly with government and workers’ representatives, to agree safe working practices which allowed workers to return to sites.

“Our Q4 has seen the resumption of several large contracts that had been suspended, and we are actively recruiting for roles is those areas, although we are yet to see a return to normal levels of activity and anticipate this will not occur until Q1 2021.

“A key factor in delivering the promised levelling up for our region and for the wider economic recovery is that as many drivers of uncertainty are addressed and resolved in order to build confidence and allow companies both big and small to do what they do best; invest, provide employment, add value and generate wealth. A key part of that is for the public sector to both confirm previously committed spending and to accelerate planned investment in all areas of construction which will act to seed fund future economic growth.”

Other results in the survey indicated export orders for manufacturers were at -20 points. Investment in plant and machinery for both the service and manufacturing sectors were at a similar level of -19.3.

Need for Brexit clarity is urgent

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Julie Underwood, director of international trade, North East England Chamber of Commerce Journal column

We organised a whole series of Brexit events last week to help our North East business community be as informed as possible about arrangements for leaving the EU.

The response was fantastic with over 800 people attending 12 webinars, with expert speakers from the UK and Europe, sharing their knowledge.

At the Chamber we have campaigned for a good Brexit deal and during the various sessions it was made very clear our businesses are equally passionate about keeping positive trading relationships with the EU.

There are, however, a number of barriers to having a seamless transition to our trading relationship.

One of the key hurdles is the lack of clarity on future rules and regulations. We really need to see specific details on a whole range of issues to ensure our companies can prepare in a timely way. There is just over a month to go. To say the information is extremely urgent is an understatement.

We have such a strong and long-standing trading relationship with our European neighbours, any barriers will impact on us far more than the rest of the UK. In fact the EU is by far our biggest marketplace, generally standing at 59%.

At the Chamber we know our members have tried to prepare for Brexit and many stockpiled goods twice now, in order to be ready for any difficulties at the borders. These plans were then put in disarray due to the Brexit date slipping and then the Covid pandemic damaging cash flow still further.

Our Brexit webinars highlighted a number of concerns including arrangements for businesses to access and easily link to the Government’s IT trade border systems. The Government sites may be ready but we need reassurance that companies can also find the necessary forms and information.

The date for leaving the European market of 1 January is almost a false friend. It may seem as if when we get there all will be well as the deadline has come and that will be that.

Unfortunately 1 January is just the start of the changes and it may take a few months of hard work before companies are fully at ease with their new trading arrangements. I hope this is not the case but fear it may well be due the complexity of the new systems that will be needed, and in place, both for imports and exports.

North East England Chamber of Commerce comment on trade statistics

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Trade statistics released today highlight the challenges UK exporters have faced and continue to face in 2020, as Britain’s short-lived trade surplus ended. In September 2020, UK imports increased by £3.6bn to £49.2bn while exports flatlined at £48.5bn – a monthly deficit of £600m. This 8.0% increase in imports can likely be sourced to an increase in demand as we continued to live in loosened COVID-19 restrictions. The statistics for November 2020, when released, will likely show a dip in imports but not quite as drastic as we saw over summer.

The third quarter of 2020 (July-September) saw a similar story, with growing imports outstripping export growth. Imports grew £17.3bn (14.0%) on the previous quarter to reach a total of £140.5bn, whereas UK exports grew only £13.8bn (10.6%) to £144.7bn. This left a total trade surplus, excluding precious metals, of £4.2bn – a decrease of £3.4bn on the second quarter of 2020.

UK service exports, the longstanding backbone of the national economy actually fell by £0.3bn while imports grew £0.7bn highlighting that while business conditions have improved from the middle of the first lockdown, firms across the whole range of the economy still face significant challenges.

A significant portion of quarterly trade growth has come from an increase in machinery & transport and manufacturing products imports and exports. As COVID restrictions loosened, the demand for road vehicles has rebounded. Imports and exports of road vehicles increased £5.4bn and £4.7bn respectively in Q3 2020 as dealerships reopened. Exports of road vehicles to non-EU nations increased by 171.8% (£3.1bn), while exports to EU countries increased 114% (£1.7bn). In September 2020 there were 328,041 new car registrations in the UK. This is 4.4% below the same month in 2019, but a marked improvement from the May 2020 low point where registrations were 89% below the previous May.

When we look at the annual statistics (September 2019 – September 2020) we begin to see the extend to which COVID-19 has impacted international trade. UK exports in the 12 months to September 2020 were worth £602.4bn, a decrease of £75.1bn or 11.1%. Imports paint a similar picture with a total value in the same period of £597.2bn, a fall of £111bn or 15.7%. This left the total trade balance for the year at £5.2bn.

As UK exporters still face significant challenges to return to pre-COVID levels of activity, it is important to acknowledge the additional challenges they are set to face. The second lockdown in November is likely to take a toll on both importers and exporters and when it ends businesses will have less than a month until the end of the transition period. Government must be realistic about its expectations of importers and exporters, who have already faced the toughest year in living memory, and their ability to adapt to huge changes in the trading relations between the UK and the EU without severe disturbances. Government’s first priority when it comes to international trade must be to secure a deal with the EU that supports traders and minimises disturbances, and then provide the financial support and guidance that businesses will need as we move into 2021.