SAD ALL OVE
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In theory the new SAD form should simplify international haulage. In practice it could cause problems if not used correctly. We explore the ramifications.
• On 1 January 1988 the two biggest administrative changes in the cross-border movement of goods since the Second World War will come into being. All crossborder freight movements in Europe will be covered by a new customs form, and on the same day most of the world's trading nations will switch to a new goods coding system. Unfortunately, it is international hauliers who will have to bear the brunt of any problems that arise — in costly customs delays — if the new form is wrongly filled in, or the incorrect goods coding is used. So what are the changes, and how can hauliers avoid major customs problems after 1 January?
THE SINGLE ADMINISTRATIVE DOCUMENT (SAD)
The new customs form C88 is generally known as the SAD form. It replaces over 100 separate customs forms currently in use including the T form. Design of C88 was agreed by customs representatives from most European countries. It will be possible to use the form for all crossborder freight movements in the European Community and also to European Free Trade Association (EFTA) countries.
Because the SAD form is applicable to so many different cross-border movements it has been necessary to include 54 separate boxes in the design. Fortunately, international hauliers are not expected to provide information in all of these boxes as many are not relevant for journeys to or from the UK. About 20 boxes will need to be filled in for export movements, and some 25 boxes for imports.
FILLING IN SAD
There are eight sheets in the full SAD form, but other versions will be available to cover the individual functions of export, community transit and import, or combinations of these. Copies 2 and 3 of the form will be used for the export section of the journey, replacing C273 and the other current export forms. For Ti and 12 declarations, copies 1, 4, 5, and 7 are required, and for Ta. purpose copies 1 and
4. Copy 6 is the main import entry copy.
The form is carbon-impregnated so hauliers need not worry about filling in the separate sheets consecutively: if sufficient pressure is applied to the top sheet the details should reproduce in the relevant spaces on the following sheets.
SAD: 140W TO USE IT
From 1 January the SAD form will be accepted in all EEC and EFTA countries. International hauliers will have to decide with their customers who will take responsibility for filling in the new form. The haulier should complete the transit section of the form but the export section can be filled in either by the haulier or exporter.
Import details will not generally be entered on the SAD form carried by the international haulier. In most cases the importer will have received details of the consignment before it leaves its destination, so he will be able to fill in all the import details on a separate SAD form.
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Whoever completes a SAD form is held responsible for the accuracy of all the information it contains. This is likely to provide further encouragement to importers and their agents to fill in a separate import SAL) because by doing so they can feel happier about the form's content.
IMPORTANT SECTIONS FOR HAULIERS
El Box 1 is the declaration and has to be part-completed for imports, exports or community transit declaration. CI Box 2 identifies the exporter or consignor, and should include the exporter's VAT registration number.
0 Box 18 identifies the type of vehicle on which the goods are loaded. 0 Box 31 describes the goods in English using a normal trade description sufficient to identify them.
CI Box 33 is specifically for the new harmonised tariff.
CI Box 37 concerns the new six-digit customs procedure codes, introduced by the EEC to replace the separate customs transaction codes for imports, and customs additional codes for exports. ID Box 44 is sometimes known as the dustbin because all extra information has to be entered here! There have been a number of complaints that the box is simply too small.
GROUPAGE
Though the SAD form is expected to reduce the volume of paperwork required on cross-border freight movements it does not eliminate the need for a number of forms for groupage loads.
HM Customs recommends that there should be a SAD form for every item moved on a groupage trailer. Critics warn that this will inevitably lead to costly delays at ports while customs authenticate and check the SAD forms. Over 50% of trade through ports is groupage, so delays could be considerable.
HARMONISED TARIFFS
The second major administrative change affecting international hauliers on 1 January is the universal adoption of a new harmonised commodity coding system comprising a series of codes relating to all goods, whether imported or exported. The new codes will eventually be adopted in most countries around the world.
The key to the new codes is provided in a series of correlation tables produced by HM Customs, which list most of the old codes and their new equivalents.
It is extremely important that the goods carried are classified correctly, as wrong classification can lead to penalties for the exporter or importer. Some of the changes in the codes are extensive, especially textile classifications.
The codes will appear as nine or 11digit entries in box 33 of the SAD form. A nine-digit code will apply for export movements to other EEC countries, and for imports from the EEC. Movements to and from other countries, including Spain and Portugal, will require an 11-digit code.
The first six digits in the code identify the goods, according to the international harmonisation agreement. The next two digits provide statistical information for the EEC, while the ninth digit provides information for the British authorities.
FURTHER INFORMATION
El by Richard Scrase International hauliers who have not yet prepared for SAD are leaving things a little late, but information is still available. HM customs can supply useful publicity material that covers the changes: apply for a tarrif and correlation table to Customs Division C, Dorset House, Stamford Street, London SE1 9PS. In addition a 20 minute video about SAD is available on request from the Institute of Freight Forwarders for
The FTA is also running a Customs 88 hotline on (0892) 26171 from 4 January for the benefit of its members experiencing problems with SAD.