I know you’re wondering what inventory linked is all about.
A reason this guide will answer all your questions on inventory linked.
So, if you want to learn more, read this guide.
- What Is Inventory Linked Meaning?
- How Is Inventory Linked Different From Non-Inventory Linked?
- What Is The Purpose Of Customs Inventory Linking?
- What Is The Difference Between GVMS And Inventory Linking?
- What Is A Community System Provider (CSP) “Badge” In Relation To Inventory Linking?
- Where Do I Get A CSP Badge For UK Custom Clearance?
- How Has The Mandatory Use Of Electronic Communications And Data Processing Systems Impacted Import/Export In The UK?
- What Is Roro Location?
- What Is Authorized Loading Port?
- What Is Authorized Consignor Status?
- What Are The Requirements For Becoming An Authorized Consignor?
- Can I Delay Paying Customs Charges At An Inventory Linked Port?
- Do I Need A Local Agent To Clear Goods For Import At EU Inventory Linked Ports?
- What Is A Transit Accompanying Document?
- How Do I Know If Using Common And Union Transit Is Right For Me?
- What Does T2 Status Mean?
- How Do I File A Transit Declaration?
- What Does It Mean When Goods Are In “Free Circulation” In The UK?
- How Do I Use The New Computerized Transit System To Move Goods Across The EU?
- Which Locations Use The Goods Vehicle Movement Service In The EU?
- What Are The Penalties For Breaching UT (Union Trust) Rules And Regulations?
What Is Inventory Linked Meaning?
Ideally, the customs declaration is always linked with the inventory system at the port and specific consignment.
It allows the custom release status to update on the clearance of the customs declaration automatically.
Transfer of updated custom clearance from customs to the port directly in the safest and most secure methods.
How Is Inventory Linked Different From Non-Inventory Linked?
The main factor that distinguishes these two is how to conduct the customs clearance process. Below are some of the differences between the inventory linked and non-inventory linked.
For inventory linked, clearance of goods from port or airport is mostly done electronically. It is a fast and more efficient way of achieving custom clearance.
Additionally, it speeds up the movement of goods and saves on the cost of moving goods from the port or airport.
Thus increase the commercial benefits that come with it.
Availability of inventory linked port also gives you accessibility to ports records, and you can present all entries.
Inventory linking ensures no goods leave the dock without completion of the customs clearance process.
For non-inventory linked, submission of entries is normally made by the port of all the entry details.
The entry of more information is normally manual since the non-inventory linked is not electronically automated.
If you are receiving goods on non-inventory linked, it’s advisable to use/acquire a badge.
To use these badges, it depends on which port you are clearing the goods to or from.
What Is The Purpose Of Customs Inventory Linking?
Custom inventory linking has an important aspect in controlling the movement of goods.
They contain and maintain the movement of goods through temporal storage facilities.
Furthermore, it allows the transition of goods through a frontier.
Customs inventory linking has different functional areas. They include;
- Consolidation: Facilitate a combination of other consignments into one consignment. It also enables the splitting of one consignment into multiple consignments.
- Movement: Keeps records of all movements of consignment within custom-controlled storage facilities.
- Query: Allows querying of data that is held inside the database of the inventory linking export.
What Is The Difference Between GVMS And Inventory Linking?
GVMS (Goods Vehicle Movement Service). It facilitates the movement of goods via the roll-on, roll-off.
To achieve this, presenting vehicles details and custom declaration references of goods is necessary.
Inventory linking involves clearance of the goods from the port of destination.
With this information in mind, it’s easier to get the difference between the GVMS and inventory linking.
Here is the main distinctive feature between the two;
Timing is an essential factor to consider while differentiating the two.
For inventory linking recording of all goods into the inventory of the terminal through the manifest of the shipping line.
After this process, you can release goods from the inventory through custom declaration.
For the GVMS, lodging of custom declaration occurs before the arrival of goods at the port of departure.
This process reduces delays with any custom declaration process, and goods can move freely upon arrival into the UK.
For the border, location it’s up to you to choose which mode to use between inventory linking and the GVMS.
What Is A Community System Provider (CSP) ‘Badge’ In Relation To Inventory Linking?
A community system provider is more of an account that allows you to operate the custom clearance.
The Desecrates e-custom software also provides access to appropriate relevant UK port systems.
In the case of inventory linking export, the CSP covers all modes of transport. Note that if you have separate accounts, you need different CSPs at the airport or port.
Where Do I Get A CSP Badge For UK Custom Clearance?
If you want to acquire a CPS Badge for UK custom clearance, you can get one from the different pennants around the UK.
You can a CSP badge from the following;
- Descartes systems group.
- Maritime cargo processing.
- Community network services ltd.
- Cargo community system-UK.
How Has The Mandatory Use Of Electronic Communications And Data Processing Systems Impacted Import/Export In The UK?
Automating processes controlling the importing and exporting of goods in the UK results in a significant increase in the economy.
Furthermore, the clearance process of the imports and exports is fast, secure, and more efficient.
The use of data processing systems and electronic communications eliminates the manual entry of information on papers.
It enhances a seamless process of tracing the payment of customs duties and taxes.
It allows the HRMC staff to trace the payments of the duties and impose penalties on individuals breaching the union trust.
What Is Roro Location?
Roll on roll off describes a process of loading and offloading the goods from the container vessel.
For RoRo to take place, there must be specifically authorized loading locations set aside. It is what we term the Roro location.
Below are some roro locations you will find in the UK;
What Is Authorized Loading Port?
An authorized loading port is normally under the port authority.
These loading ports have the certification to operate for the offloading and loading goods onto the vessels.
Rules and regulations are governing these loading ports.
For, instance rules are governing which type, weight, loading procedures of the goods.
Authorized Loading Port
What Is Authorized Consignor Status?
These are privileges that an authorized consignor gets to carry out transit movements.
This means the authorized consignor will conduct operations without giving the transit declaration or goods to the customs office.
Additionally, the authorized consignor can print transit accompanying documents and a list of items at the consignor’s premises.
You can also remove goods under customs control directly from an authorized location.
To apply for an authorized consignor, you can do it electronically via a custom decision system.
What Are The Requirements For Becoming An Authorized Consignor?
To become an authorized consignor gives you the privileges of starting and ending transit at your premises rather than in a customs office.
To become an authorized consignor, you require the following;
- VAT registration number.
- Economic operator registration and identification number
- You should have an establishment in at least one of the contracting parties of the common transit convention.
- Any available offenses done against tax legislation or custom in the UK or EU are to be recorded.
The available custom system controls the movement of goods under transit in the UK or EU.
In addition, accompanying record-keeping documents for all these movements.
- Complete hard copy specimen of your manifest, this means choosing the mode of transit you want.
It can either be through road or air. You can present these manifests in the form of paperwork or use an electronic transport document.
Can I Delay Paying Customs Charges At An Inventory Linked Port?
Yes, it’s possible to delay paying custom charges, but you need a duty deferment account. Acquiring a duty deferment account allows you to postpone or delay making the payments of custom charges, among other tasks.
A duty deferment account allows you to consolidate the custom charges.
For lets a month, then you can make the payments using a direct debit card.
The use of a duty deferment account poses a great threat as it delays the custom clearance process of goods at the port.
Do I Need A Local Agent To Clear Goods For Import At EU Inventory Linked Ports?
Unless you have establishments in the EU or are willing to submit customs declarations yourself, you need a local agent first.
If you don’t have establishments in the EU and want to become an importer of records or supply goods on an intracommunity basis.
Then you will need a fiscal representative.
It means a local agent who will always take care of your intrastate reporting needs and VAT.
What Is A Transit Accompanying Document?
You receive documentation papers from an authorized consignor or departure office indicating when the transit move is due to start.
TAD contains a movement reference number that only matches your transit declaration and a barcode.
These documents should always accompany goods from their point of departure to destination point will all license when need be.
Transit Accompanying Document
How Do I Know If Using Common And Union Transit Is Right For Me?
The main purpose of these two common transits is to fasten the movement of goods to or from the UK and the EU.
Additionally, they help delay the duty services until the goods arrive at the destination.
To determine which type of transit is best.
It’s important to understand the procedures guarding every kind of transit.
Contains custom procedures that allow movement of goods to, from, between, and through countries under a common transit convention.
It is inclusive of all the EU members of states.
Contain custom procedures that allow the movement of goods that are not in free circulation within the EU.
This movement occurs even with the suspension of customs duties and any other charges.
It also facilitates free circulation of goods within the EU to move from departure to destination. And movement through the third country territory.
What Does T2 Status Mean?
T2 status is also known as the Internal union transit procedure.
T2 status mostly applies to union goods moving from the EU or UK to or through a common transit country.
For instance, they are moving union goods to or from San Marino or to and from Andorra.
In this case, only interests of tariff chapters 25 to 97 of the harmonized industrial system apply.
Note, T2 applies only while moving union goods to or from select territories.
How Do I File A Transit Declaration?
You can achieve transit declaration filing using two methods.
You can use the electronic filing method or use the manual message format.
To file for transit declaration;
- You need to submit the transit declaration to the NCTS as an electronic message. This message will be sent to the customs offices at the departure port.
- After successful approval of the declaration, you will receive a movement reference number. A recorded message is sent to the destination customs office from the departure port.
What Does It Mean When Goods Are In ‘Free Circulation’ In The UK?
We refer to the movement of goods freely without restrictions as the free circulation of goods. It means you can move goods into the UK or EU.
Normally, goods entering the customs territory of the UK are usually non-community goods. Meaning they have not yet undergone the custom clearance process, and therefore you cannot market such goods.
Importation of goods into the UK requires custom clearance before placing the goods in free circulation.
Upon payment of customs duties and clearance of all the formalities, you can freely market the goods in the UK.
For goods originating within the UK, they are already in free circulation, meaning they meet all the formalities put in place.
You can market these goods unless there are claims whisky export refund on them.
Union goods do not require union transit or custom status to move these goods within the UK or EU.
Goods moved directly into the UK or EU are normally refer to as union goods if there is no evidence proving otherwise.
For non-union goods should remain under custom clearance, and moving these goods is only via union transit.
How Do I Use The New Computerized Transit System To Move Goods Across The EU?
Use of New Computerized Transit Systems normally is a system of electronic declarations and processing.
The traders have a mandate to use it while submitting common transit declarations.
Additionally, the new computerized transit system processes all the declarations and controls all the transit movements.
To use the new computerized transit system to move goods across the EU, you will need the following;
- Trade identification number.
- Your business addresses
- Economic operator registration and identification number
- A guarantee.
Furthermore, if you opt to use the online system for the services, you will need the following;
- Accessibility to a computer that can easily down and print the adobe acrobat pdf documents,
- Fully functional and high-quality printer. It allows you to print barcodes of transit accompanying documents and a list of items.
- Specific settings that enable you to access the internet browser.
- Government Gateway ID is easy to acquire the first time you access the new computerized transit system.
Which Locations Use The Goods Vehicle Movement Service In The EU?
The use of good vehicle movement service is becoming a norm as time passes by.
Without it, you will experience delays in moving the goods due to a lack of good movement references.
This service renders fast movement of goods due to combining multiple good movement reference into one good movement reference.
Below are locations you will need to use the good vehicle moment service;
- Northern Ireland
- Warren Point.
What Are The Penalties For Breaching UT (Union Trust) Rules And Regulations?
You can attribute breaching of union trust to acts of dishonesty or evading to pay the mandatory custom duty and taxes.
For such events, penalties will be vindicated on the individuals who commit these illegalities.
Normally, the amount that is always equal to or more than the tax or duty evaded is imposed on you by the HMRC.
There is a reduction of this amount into any amount, including a reduction to nil.
Check out the HRMC policy on how these reductions are made.
With no restriction on who can face the penalties, the business’s managers, directors, and secretaries can face fines if found with attempts to break the union trust.
If found guilty of breaching the union trust and the penalty is imposed, you can try and reduce the penalty through;
- We are offering full disclosure of information.
- Offering full cooperation will ensure a smooth check process.
At BanSar, we will help you in all freight forwarding services from China.