E-customs could stop Estonian trade with third countries

Much of Estonian trade with third countries could halt from January 1, 2011 when the Estonian customs system becomes fully electronic and the customs service stops accepting general import and export customs declarations and manifests on paper, writes Äripäev.

Unfortunately, e-Estonia that loves to advertise itself as a tech-savvy nation has had a fair share of failures including the business e-report, digital prescriptions, e-school, etc.

The customs board claims that it has informed all relevant parties extensively over 18 months and says that there is no need for additional transition time. "There is information on our website, in our newsletter and we have organized information events days to introduce the new system and changes in legislation," says a representative of the customs board. He admits, however, that the interest of businesses towards the information events has been modest.

According to customs officials, electronic handling of customs declarations was introduced in Estonia already in July 2009 and all companies have had ample time to get used to it.

Estonian exporters and importers disagree and say that there has not been sufficient information available. Moreover, the new system requires that also the trade partners of Estonian companies start filling out customs declarations electronically.

Viljar Lehtmets, CEO of Cargo Handling, that handles customs procedures and operates a bonded warehouse, says that no-one seems to now what will be happening on January 1. "For instance, airfreight arriving directly from Russia, Belarus or Ukraine would require prepration of extensive electronic information. As much as I know, they are not prepared to do it yet. I really don't know where we would then get this information," he said.

Marek Velling, board member of A-Tolliagentuur, a customs brokerage, adds that experience shows that full introduction to the electronic customs formalities may affect trade. "Practice has shown that all new things stop trade, especially if the Estonian customs is involved," said Velling, adding that, for instance, when the customs board made some changes in its system recently, it was temporarily impossible to fill out electronic customs declarations.

UNIT X.

Customs Broker

South America is known for its corruption and South American ports are no exception. Before starting any customs clearance for a container shipment of a car in South America, it is advisable to be well-prepared in terms of port handling procedures and knowledge of shipping fees. Being familiar with port handling procedures not only saves time and hassle, it also lessens the chances of having to hand out “facilitation fees” – to use a friendlier term than bribes.

Before starting any port handling procedures, make sure all paperwork is in order. Although it varies per port or even per customs broker, papers that are most probably needed when dealing in a port handling procedure are:

Valid passport and visa [if required].

Valid international driver's license.

Bill of Lading, the document that is issued by the shipping line when the container is loaded on board. The Bill of Lading proves ownership of that container.

Delivery Order, issued by the shipping line after arrival in the port of destination.

Car documents such as registration papers and third-party insurance.

N.B. A Carnet de Passage for South America is no longer required. Having said that, buying a Carnet de Passage just to bring the vehicle into the continent may facilitate the procedure.

The Use of a Customs Broker for Customs Clearance

There are two ways to arrange customs clearance: independently or with the aid of a customs broker. Working independently has the advantage of not having the expense of hiring a customs broker; the disadvantage may be having to pay exorbitant shipping fees because of ignorance, or unnecessary prolongation of port handling procedures. By hiring a customs broker one is certain of having to pay his fee, but it may save a lot of time, stress and possibly extravagant charges.

Choosing to work with a customs broker may either be the result of personal preference, or because the port authorities demand an intermediary in the person of a customs broker.

How to Find a Reliable Customs Broker

At, or around, ports there are always men hustling and handing out business cards, trying to find customers this way – not necessarily a bad way. Another option is to tour the city and visit different customs brokers. Ask the shipping line which customs broker they work with, or ask other big, international shipping lines which customs brokers they use.

Compare customs brokers and their quotes to take care of the port handling procedure. Price is important, but do not underestimate the value of having faith in a customs broker. Some of them are simply not interested in going through the motions of customs clearance for just one private vehicle, while others are happy to be of assistance.

Before starting the official customs clearance, take the time for a chat. In Argentina, accepting a 'mate' [a herbal tea] is a good way to break the ice.

Never, ever be in a hurry – an essential South American rule in any bureaucratic rigmarole. If in a hurry, do not show it.

Being well-rested and familiar with the surroundings before starting a port handling procedure avoids a lot of stress.

Master a few basic words in Spanish or Portuguese, just knowing the words "hello" and "thank you" may help a lot.

Visit customs brokers personally; there is a reasonable chance that the quote given by e-mail will be lower after a meeting with the customs broker.

UNIT XI.

PERSPECTIVES OF CUSTOMS IN THE 21^st CENTURY:

Date: 2016-01-14; view: 804