Important for importers and exporters using Sea Freight services is the deadline for the introduction of regulations on the verification of packed container weight on 1 July, 2016. The amendments to the Safety of Life at Sea Convention (SOLAS) by the International Maritime Organisation (IMO) mean that from July packed containers will not be loaded without evidence that the gross weight has been verified.

We may fear the image of vehicles lining up at the docks to be weighed at the weighbridge at the risk of not being loaded, but the regulations do provide for a number of weight verification methods to ensure compliance. However, estimating the weight will not be an option and as time is running out you do need to make sure that you have the requirements covered to ensure that your containers are not delayed as this change is introduced. More information can be found at www.worldshipping.org

Have you simplified your import VAT payment?

As an importer how often have you been caught out by the following situation? You are into your peak period management and a critical shipment has just arrived but is being held in customs because you have hit your deferment limit. A flurry of activity follows and perhaps with the support of your Freight Forwarder you have secured the release of your shipment but at the cost of time, effort, additional fees and delays to your inbound supply.

For a number of years HMRC has been offering an effective way to avoid such inconvenience with ‘Simplified Import VAT Accounting’ or SIVA for short.

When approval is in place the requirement to provide a bank guarantee for the value of VAT on your imports is waived and at 20% on value this will certainly be using up a significant part of your deferment limit. A guarantee needs to be maintained to cover your expected duty charges but the overall level will be much reduced. Of course, there is an application process as HMRC will check your financial history and track record with import Duty and VAT administration – but the benefits are dramatic. If you don’t have SIVA in place already then don’t delay your application any longer, as there may still be time to make arrangements before your busiest time of the year.

All the background and application forms can be found at: https://www.gov.uk/government/publications/notice-siva-1-simplified-import-vat-accounting