Showing posts from tagged with: Supply Chain

Centralized Customs Clearance in the EU for your global supply chain

Centralized Customs Clearance is a valuable trade facilitation measure under a customs procedure of the Union Customs Code (UCC) within the EU.

It allows an approved trader to lodge at the customs office where they are established, a customs declaration for goods which are presented at another customs office within the customs territory of the Union.

Centralized Clearance allows the economic operators to centralize and integrate accounting, logistics and distribution functions with financial savings in administrative and transaction costs, thus providing a genuine simplification. Centralizing payment of customs duties and related declaration costs provides real savings and efficiencies.

Multinational organisations with manufacturing or distribution centres in different EU countries can centralize their EU customs clearance administration in one location within the EU. These organisations may have to implement or purchase costly IT solutions in each member state they are importing/exporting to/from or outsource this facility to many different external stakeholders. Centralized Clearance can eliminate this costly administration burden, centralize these operations in one location, and reduce risk within your global supply chain.

As your global supply chain expands and non-EU imports increase into multiple cross county locations throughout the EU, you now should consider this very useful trade facilitation measure. Global sourcing within your industry can be complex. Making the inbound process of this function more efficient by ensuring security of supply and reducing risk should be considered.

For more information on Centralized Clearance contact Brian Murphy, Head of Trade Services at the Irish Exporters Association.

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Completion of Study on Freight Traffic on British Landbridge

This study, which is an important part of the Department of Transport’s work in preparing to meet the challenges of Brexit, is now underway. The work is being carried out by consultants under the management of the Irish Maritime Development Office (IMDO) and involves a significant number of interviews with Exporters, Traders, Freight Forwarders, Hauliers, Ports and Shipping Lines.

Many IEA Member Companies are being asked to respond to the survey work. The results of the research carried out by the IEA earlier in 2017 on the subject will also be fed into the study.

All of the work, when collated, will enable the Department to make not just their own plans but will enable them to inform the EU Transport Commissioner and her team of the real Irish requirements within the Brexit discussions to minimise the disruption to the Landbridge routing.

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EU-EIP Project Moves to Second Phase

Following the successful completion of the initial project focussed on the development of a European ITS Platform for freight traffic operating within the East-West Corridor, a second phase was launched on 14th November. Within the first phase the IEA, working on behalf of Transport Infrastructure Ireland (TII), took responsibility for guiding the development of an on-line multimodal freight route planner. This planner, which can be accessed at: currently is very much focussed on routes including Road, Rail, Lo-Lo Shipping and barge transport for the door to door transport of freight in containers, will be expanded to take into account routes involving shipment in trailers shipped on board R-Ro services.

The definition of the Corridor has been expanded to more actively include freight moving to and from the Baltic States. This aspect of the work, which involves study of routes and customs controls involved in traffic moving into and out of third countries promises to be a very useful contribution to our sum of knowledge in our Brexit discussions on controls that might affect traffic to and through the UK.

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Irish Ferrries Make Radical Changes to their 2018 schedules

The newly released Irish Ferries schedules for 2018 mark a significant shift both in schedules but also in the way in which the Company deploys its ferry fleet.

On its arrival from the builders in July 2018 the 55,000-tonne cruise ferry W.B. Yeats will take up service on the Dublin/Cherbourg route operating a once every other day service in each direction while the Oscar Wilde will also take up a new schedule leaving Rosslare on the alternate days and destined for either Cherbourg or Roscoff.

Irish Ferries have planned a revised schedule from mid-September that will see the W.B. Yeats switching to the Holyhead route replacing the Dublin Swift over the winter months, while the Epsilon will maintain a three times weekly Dublin/ Cherbourg service. The Rosslare/ France service will not run over the winter period, thought the Isle of Inishmore will continue to operate her twice daily service to Pembroke out of the Co. Wexford Port.

In terms of trailer capacity both the Epsilon and the W.B. Yeats have a freight capacity on board in the order of three times of that on the Oscar Wilde.

It is understood that Irish Ferries intend to take up their option at the yard to build a sister ship to the W.B. Yeats. These vessels have been designed to operate out of both Dublin and Rosslare.

Irish Ferries, sister company within the Irish Continental Group, ICG Container and Terminal Division was winner of the 2017 Maritime Services Award, sponsored by the IMDO, at the recent Exporters of Year awards ceremony.

Stena Line do not intend to change their current schedules for 2018 and will retain the revised Rosslare-Fishguard schedule introduced earlier in 2017. No significant schedule changes are anticipated from either Seatruck or P & O Ferries.

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Measuring Brexit Costs

As of 2016, the value of traded goods and services each week between Ireland and the UK is €1.2 billion. Meanwhile over a year since the UK referendum we still don’t have any real clarity on what the final agreement between the EU and the UK might look like. Given such uncertainty, what can businesses do to identify some of the trade-related implications as a result of Brexit under different scenarios?

Many of these scenarios point to the probability of the UK leaving the customs union, and businesses involved in Ireland-UK trade are now assessing the detail of what the financial impact could be. Unless there is a tariff-free EU/UK trade agreement, Irish goods will be subject to tariffs and the EU’s external border will run through Ireland, with a customs regime between the two jurisdictions. For Irish exporters with imported inputs in their products there are significant implications.

Businesses should consider identifying their impacted supply chains now and quantify the financial consequences of potential additional customs duties, VAT and trade compliance costs. Software such as that developed by KPMG can help businesses deconstruct their supply chains and identify where the costs, bottlenecks and opportunities may lie.

Interrogating your data from different angles is critical. Using VAT and Customs filing data, the software can produce a bespoke report quantifying the key customs duty and VAT impacts arising from Brexit. The tool maps the flows of goods into and out of the UK, giving visibility over the elements of the supply chain that are most exposed to additional cost or supply chain risk as a result of Brexit.

Businesses can then work to identify specific solutions to the issues raised, which could involve alternative supplier sourcing, revision of trade terms or changes to the logistics process. Regardless of possible eventual Brexit outcomes for Ireland, businesses who understand their supply chains now and use innovative technology to quantify product, customer or supply chain exposures will be amongst those best placed for the post-Brexit world – whatever that brings.

Marie Armstrong is a Tax Partner with KPMG in Dublin.

For more details on planning for Brexit and KPMG's indirect tax impact assessment tool, download the pdf by clicking here.
KPMG Ireland is a Platinum sponsor of the Export Industry Awards.

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Ireland’s Maritime Sector is Key Driver of Economic Growth

As a maritime nation and as an economy, we are heavily dependent on seaborne transport, which facilitates international trade and is an indispensable part of a supply chain that links Irish industry to world markets. Our ports and maritime services also support Ireland’s tourism industry by providing ferry services to and from ports in the UK and Continental Europe. In meeting the needs of trade and tourism, the maritime industry has shown itself to be flexible and resilient and has demonstrated the ability to respond appropriately to growth and contraction in the Irish economy.

A recent report by the Socio-Economic Marine Research Unit (SEMRU) of NUI Galway shows that Ireland’s marine economy is outperforming Ireland's general economy, with the shipping and maritime services sector, comprising Irish sea-based transport operations for freight and passenger transport, as well as associated services, playing a key role in driving growth.

In 2016, Ireland’s marine economy had a turnover of €5.7 billion, 37% of which is attributable to the shipping and maritime services sector. The direct economic value of Ireland’s marine economy was €1.8 billion in 2016, or approximately 0.9% of gross domestic product (GDP), which represents an increase of 20% on 2014.

This positive trend is also reflected in a report released earlier this year by the Irish Maritime Development Office (IMDO), the Irish Maritime Transport Economist, which records a 2% increase in total port traffic in 2016, reaching the highest level of throughput achieved since 2007. Statistics for 2017 show continued growth, with shipping and port activity in the Republic of Ireland rising by 7% in the first quarter of 2017 when compared to the corresponding period of 2016. It is clear that our maritime sector can respond to the needs of our growing economy, and indeed has a vital role to play in supporting the development of our national economy for decades to come.

We are delighted to be involved with the Export Industry Awards as sponsor of the Maritime Services Company of the Year category again this year, and we strongly encourage those involved in the maritime industry to put themselves forward to receive recognition for the significant role that they play in the growth and development of the export industry in Ireland, which contributes directly to the wider growth of Ireland’s economy.

Liam Lacey, Director, Irish Maritime Development Office

The Export Industry Awards recognise the remarkable achievements of companies working in the export industry.

For more information and to apply visit There is no application fee and companies are welcome to enter more than one category.

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Deep Sea Container Shipping Rates Continue to Slip Back

Leading Supply Chain Advisors, Drewry, have reported that overall Container shipping rates have continued to fall back from the heights reached during Spring 2017 though they are still considerably higher than the rates at the same point in 2016. Thus, while in the week to 13th July 2017 overall quay to quay rates for shipping 40ft. Laden containers slipped by 2.1%, they are still up by 13% form the same week last year.

On the export side, out of Europe the annual increase has been much larger, with an average Rotterdam to Shanghai rate now standing at USD 1362, a 119% increase on the rate a year earlier. The Rotterdam to New York rate has, on the other hand dropped by 8% over the year to USD 1717.  The westbound Transatlantic rates are now running at about three times the rate for a container coming eastbound while on Europe/Asian routes the rates are very much closer to being in balance.

In a separate study Drewry reports an unexpected development of services offering sailings direct from Indonesian and other countries deemed to be secondary markets, to Europe. These services replace the feeder vessel and hub services offered in recent years. The direct services make use of smaller vessels that would have been displaced from the main-line services by the arrival of the Ultra large container ships. Use of the direct vessels should facilitate faster and more economical door-to-door freight.

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Port of Cork Developments Power Ahead

Speaking at the IEA Supply Chain Workshop held in Cork on 15th June, Port of Cork Commercial Manager, Captain Michael McCarthy, welcomed the granting of the final planning permissions by An Bord Pleanala that will facilitate the development of the deep-water facility at Ringaskiddy. Following the completion of the development the Port plans to re-locate the container services from the Tivoli location and general cargo from the City Quays area. Container capacity at the port will be doubled and feeder and other lines will be able to operate larger and more economical vessels on their Cork services.

Capt. McCarthy also told the meeting that the Port now has a majority interest in the former IFI location at Marino Point. Current plans will see this location being developed so as to facilitate the berthing and discharging of Bulk vessels. The facility is rail linked and the Port’s plans include the redevelopment of the railhead within the terminal area so that this mode can be effectively used to ship cargo to any Irish location.

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Transport Department Initiates “Land bridge” Study

As part of its Brexit preparations the Department of Transport, Tourism and Sport (DTTAS) has confirmed that it has commissioned the preparation of a study and report on the British Land bridge. The study will seek to determine the likely effects of Brexit on the quick and competitive flows of goods to and from Ireland. It will also seek to give guidance to Department on the steps that it and other Government Agencies should take to minimise the problems identified.

DTTAS plan to have the report completed within six months. The IEA will sit on the Advisory Board for the study and will seek to ensure that the interests of manufacturing exporters are fully represented there.

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Neptune Line, Rosslare Service Opens Up Possibilities for Irish Exporters

Rosslare Europort Manager and IEA Supply Chain Initiative sponsor, Irish Rail, reports the very successful introduction of the weekly Neptune Lines service linking Santander, Le Havre and Southampton. While Neptune Line does operate a number of freight ferry service's the company’s main activity is in Trade Car and Truck distribution with services linking a number of European Ports. Discussions are now underway with a trailer freight operator to establish an export service to Iberian Markets for Irish manufacturers based on this service. Further details of the direct service will be announced shortly.

Irish Rail also advise that the revised scheduling of the Stena Line Southern Irish Sea corridor service linking Rosslare with Fishguard has proven to be successful and have noted an increase of freight traffic volumes through the Co. Wexford Port.

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