JAGUAR LAND ROVER SUPPLIER PACK V.2 BREXIT POST TRANSITION 31/12/2020 - DDU AFTERMARKET PARTS SUPPLY - CUSTOMS PROCESSES
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JAGUAR LAND ROVER SUPPLIER PACK V.2 BREXIT POST TRANSITION – 31/12/2020 DDU AFTERMARKET PARTS SUPPLY – CUSTOMS PROCESSES GLOBAL PURCHASING BREXIT TEAM JANUARY 2020 Confidential ©2020
VERSION CONTROL # Date Change 1 Initial publication for trade after 31.12.20 2 4/1/21 Issue resolution contacts updated 3 6/1/21 FAQ Added to Issue resolution 2
WARNING It is the supplier’s responsibility under the DDU Incoterms in its contract with JLR to clear goods for export and to deliver the parts to the named location and therefore to complete the required customs procedures set out in this document. As goods will be unable to proceed without this, failure to complete the required customs procedures or provide the required customs paperwork will be considered as a failure to provide goods and therefore a breach of contract. JLR would like to remind suppliers that supply of the goods shall at all times remain pursuant to JLR’s Production Purchasing Global Terms and Conditions, and that the supplier remains responsible for supply of the goods strictly in accordance with such terms. THIS PACK COVERS DDU JAGUAR LAND ROVER NOMINATED LOCATION ONLY - IF YOU ARE ON DIFFERENT DDU TERMS PLEASE CONTACT YOUR PURCHASING AND CUSTOMS CONTACTS 3
DISCLAIMER The contents of this pack are intended to provide DDU suppliers with general information and to assist DDU suppliers in complying with JLR’s processes from 1 January 2021. Whilst every effort has been made to provide correct information, the contents of this pack and JLR’s response to any query should not be construed as any customs, legal, tax or any other advice. Suppliers should consult with their own professional advisors for specific advice on all customs, legal, tax and other matters. JLR does not guarantee the completeness or accuracy of the information contained in this pack or its response to any query. Any such information and any response to any query are provided without any representation, warranty or other contractual term of any kind, whether express or implied. JLR, to the fullest extent permitted by law, disclaims all liability to suppliers in respect of the content of this pack or its response to any query. Accordingly, nothing in the contents of this pack or JLR’s response to any query shall relieve any supplier from any of its contractual obligations to JLR. 4
AM DDU CONTENTS AM INTRODUCTION Slide 5 DDU AM DDU EU TO UK DIRECT Slide 8 AM ISSUE RESOLUTION Slide 22 DDU AM DELIVERY INTO JLR FACILITIES Slide 24 DDU 5
AM DDU INTRODUCTION On 31st December 2020 at 11pm GMT the UK leaves the EU Customs Union, there will be legal changes to how trade is completed between the UK & EU. If the EU Commission and UK Government agree Free Trade Agreement import duty may be alleviated , otherwise all trade will be completed under World Trade Organisation terms. In either situation the UK and EU will be separate customs territories. Therefore, from 1st January 2021 all goods moving across the UK / EU border in both directions, will need to follow appropriate customs processes and complete appropriate customs documentation. It will be necessary for all aftermarket suppliers to have the capability to carry out customs declarations and to act as the Exporter of Record for EU to UK shipments. This pack aims to provide a guide to the newly required processes at an operational level to assist you. All suppliers must have the capability to carry out customs declarations and to act as the exporter of record for EU to UK shipments. 6
AM DDU INTRODUCTION The International Chamber of Commerce Incoterms rules provide internationally accepted definitions and rules of interpretation for most common commercial terms used in contracts for the sale of goods. The trade terms help traders by clarifying the tasks, costs and risks involved in the delivery of goods from sellers to buyers. DDU (Delivery Duty Unpaid) …named place is a Incoterm 2000 term in use in JLR contracts. https://iccwbo.org/resources-for-business/incoterms-rules The Incoterms on your contract with JLR are agreed and cannot be changed at this stage 7
AM DDU INTRODUCTION For DDU shipments, the seller is responsible for all costs and procedures in order to deliver at the named place, bar duty which is the responsibility of the buyer. In order to pay the duty, JLR will carry out the import customs process for which the supplier must provide the required information. Supplier Transit to Export Border Import Transit to JLR port Customs Crossing Customs named place The supplier must complete the export process & provide the correct information to allow JLR to complete the import process
AM DDU EU TO UK DIRECT JAGUAR LAND ROVER SUPPLIER PACK • SUPPLIERS ON DDU INCOTERMS • EU SUPPLY TO UK JAGUAR LAND ROVER NOMINATED LOCATION Confidential ©2019
AM DDU EU TO UK DIRECT supplier responsible DDU ( JLR Nominated Location ) Incoterms SUPPLIER JLR JLR responsible DDU JLR NOMINATED LOCATION - SUPPLIER Commercial View JLR will expect suppliers to pay costs for export declarations. In the case of EU suppliers, JLR will pay the cost of import declarations. Administration EORI number required. The supplier must provide the details required for import documentation and confirm the driver has left their premises to allow JLR to pre-clear UK customs for import Supplier is responsible for filing export declaration, providing accompanying documentation & Commercial Invoice 10
AM DDU EU TO UK DIRECT WARNING The following section applies to mainland EU vendors. Vendors in the Republic of Ireland may need additional transit documentation for exit via Republic of Ireland ports. If parts from Republic of Ireland are routed through Northern Ireland then the Northern Irish Protocol will apply. 11
AM DDU EU TO UK DIRECT Here are the process steps in which the supplier, as Exporter Of Record is required to complete. Each numbered button links to a detailed page on the process step. -1 Days Day of collection In transit JLR Customs Pre-lodge 5 import and confirm DUCR reference to supplier 1 2 3 4 6 7 8 9 10 Supplier raises Supplier raises Supplier submits Supplier send Supplier provides Supplier Carrier completes MRN marked Carrier Onward ASN/Pre- Commercial export EAD & CI to EAD, CI & parts confirms part port related as closed on completes transport to advisement Invoice declaration and JLR to driver in transit customs EUROPA port related named EAD customs location These process steps relate to supply of parts to Jaguar Land Rover
AM DDU EU TO UK DIRECT Suppliers should follow their existing process for either raising the ASN or pre-advisement as per detailed in the 1 Supplier Guide to Trading with JLR for Parts and Accessories (page 18). WHAT? WHO? Supplier For suppliers who have Incoterm DDU Jaguar Land Rover Facility - Supplier Delivered, the Schedule Agreement will specify the delivery point for supplier To be sent WHERE? via the existing contacts/method product, which will either be vendor packed or delivered into a packer or primer. Suppliers must follow the guidelines for delivery into a Jaguar Land Rover see WHEN? -2 days before part collection appendix slide 24 Suppliers should follow their existing ASN/Pre-advisement process 13
AM DDU EU TO UK DIRECT The supplier is required to complete a full and accurate Commercial or Pro-Forma Invoice (CI). The information 2 provided on this provides part of the required customs paperwork. WHAT? WHO? The supplier The Commercial/Pro-forma Invoice needs to contain; • Supplier Name & It must also list all parts, Address detailing; This needs to be sent along with the EAD in • Gross weight • JLR Product Codes WHERE? Step 2 • Nett weight • Product descriptions • Supplier EORI • Number of parts • Consignee • Number of • Commodity Codes pallets/cages This needs to be prepared once the parts are • Currency • Values The Commercial Invoice • Incoterm inc named WHEN? ready to be collected and the day prior to place must be legible in both collection print and paper copies • Origin of Products A clear and accurate CI is essential for the customs process to proceed 14
AM DDU EU TO UK DIRECT An export declaration and Export Accompanying Document (EAD) which includes the Movement Reference 3 Number (MRN) are required to clear the goods for export. These are required before the goods leave the suppliers premises. As the Exporter Of Record, the supplier must submit the export declaration or employ a WHAT? WHO? customs broker to complete it on their behalf. For the customs declaration along with basic company information, the following are required; This is to be submitted to the customs EORI Number WHERE? authority in the country of dispatch. Commodity code Commercial Invoice Trailer/carrier details Port of Exit As soon as the details of carrier and port of An export declaration is not required for WHEN? exit are provided, the day before the planned the pallets and/or stillages if they have collection. parts in them. The export declaration is required as soon as the carrier information is received 15
AM DDU EU TO UK DIRECT The complete set of customs paperwork including the Export Accompanying Document (EAD) & Commercial 4 Invoice (CI) should be sent to all parties as they are required for our records and to complete the import stage of the process. The supplier must send all required WHAT? WHO? documents to JLR Customs. The full set of EAD, MRN & CI should be sent to JLR customs as PDFs. The email should have the following subject format: WHERE? EUUKCFSP@jaguarlandrover.com e.g. ABQ3A-17092019 As soon as the EAD/MRN is received. This is so the documents WHEN? The EAD & CI documents need to be with can be referenced easily. JLR the day prior to collection. JLR Customs need the EAD, MRN & CI the day prior to collection 16
AM DDU EU TO UK DIRECT The shipment will be pre-cleared by JLR Customs and the DUCR (Declaration Unique Consignment Reference 5 Number) will be provided to the supplier. The supplier must provide this reference to the driver/carrier in preparation for Customs at the port of Entry. JLR Customs will provide the details. The WHAT? WHO? supplier must communicate these to the driver Once JLR customs have pre-cleared the shipment for entry to the UK the DUCR (Declaration Unique Consignment Reference Number) will be provided to the supplier. The supplier must communicate this Details provided in response to export to the driver which will allow them to clear UK customs and WHERE? documentation received. proceed. If the driver/carrier does not have this number they will not be allowed to board at the port of exit Once JLR customs have received the WHEN? documentation. Before the driver is allowed to board The supplier must communicate the Entry No. & Date to the driver 17
AM DDU EU TO UK DIRECT The complete set of customs paperwork including EAD & CI must be given to the driver as a paper copy. This is the 6 copy that allows the goods to pass through customs at the Port of Exit. It is the supplier’s responsibility to supply the WHAT? WHO? documents to the carrier/driver. The full set of customs documentation including the Export Accompanying Document (EAD) & Commercial Invoice (CI) should be provided as paper copies to the At collection/dispatch point on carrier driver. Without the documentation the parts WHERE? arrival. cannot leave the supplier premises. The supplier will need to have a printer properly configured to print the documentation in the legally required format including the printed barcode. The driver must receive these when parts WHEN? are loaded. Failure to provide paperwork will be considered as failure to provide goods. The driver should be given a paper copy of all customs documentation 18
AM DDU EU TO UK DIRECT The supplier need to confirm once the shipment has left their premises, this is so that pre-lodgement and pre- 7 clearance can be carried out before the shipment arrives at the port of entry. The supplier must inform JLR Customs that WHAT? WHO? the shipment has departed The supplier needs to inform JLR customs, that the shipment has left the suppliers premises. WHERE? At EUUKCFSP@jaguarlandrover.com The email should have following subject format: the - e.g. ABQ3A-17092019 After the shipment leaves the suppliers WHEN? premises This allows JLR customs to begin the pre-clearance for the port of entry to prevent delays once the driver reaches the port of entry Supplier must confirm the shipment has been collected 19
AM DDU EU TO UK DIRECT Once the parts have cleared customs at the Port of Exit the Movement Reference Number (MRN) will be marked as 8 shipped. This is done via the EUROPA system. The supplier is able to check the status of WHAT? WHO? the MRN to confirm shipment The EUROPA site provides a function to confirm the status of a specific MRN. The supplier can use this to confirm a specific shipment has been exported. Confirmation of export will not be sent. The supplier is able to check an MRN WHERE? through this site The MRN will be marked as closed when the WHEN? carrier has cleared customs The supplier is able to confirm shipment, JLR can not provide this 20
AM DDU EU TO UK DIRECT The driver must present at UK customs with the customs documentation and the DUCR (Declaration Unique 9 Consignment Reference Number). WHAT? WHO? The driver must present at UK customs A DUCR is a reference of up to 35 characters (plus an optional numeric ‘Part’ identity) allocated by a trader to a WHERE? At the Port of Entry consignment of goods and recorded on the relevant customs declaration(s). If any transit documents are being used they must WHEN? Upon arrival at the Port of Entry be discharged at the port on arrival. The driver must provide DUCR and Customs Documentation at UK Customs 21
AM DDU EU TO UK DIRECT Once customs cleared the driver continues to deliver at the JLR nominated location specified in the Incoterms of 10 the contract WHAT? WHO? The driver Once the driver has been cleared by customs at the port of entry to proceed they must continue to the named place WHERE? At the named place specified in the incoterms of the contract. If driver continues to the named place without necessary customs clearance they will be WHEN? After Customs clearance required to return to the port to complete clearance The driver must deliver to the named place 22
AM DDU ISSUE RESOLUTION ISSUE RESOLUTION
AM DDU ISSUE RESOLUTION FAQS EORI The EORI number that needs to be quoted on the customs declarations is that of the Exporter of Record. In situations where Jaguar Land Rover is required to be Exporter of Record, we will provide our EORI number to the designated clearance agent. We do not provide our EORI number to suppliers. 24
AM DDU ISSUE RESOLUTION Further advice and specific For customs and tax If there are any issues requirements and queries please contact during this process or guidance may be found on during shipping, you need your countries' custom Brexcitc@jaguarlandrover.com to contact your JLR authority website Customs contact to For purchasing queries ensure all parties are https://ec.europa.eu/taxation_cust oms/national-customs- please contact aware of any issues. websites_en https://www.gov.uk/prepare- BxQAAM@jaguarlandrover.com export-from-uk-after-brexit 25
AM DDU DELIVERY INTO JLR FACILITIES Incoterm DDU Jaguar Land Rover Facility - Supplier Delivered shipments The Schedule Agreement will specify the delivery point for supplier product, which will either be vendor packed or delivered into a packer or primer. Suppliers who plan to deliver parts to a Jaguar Land Rover warehouse must follow the guidelines below for booking a timeslot: – All deliveries made into a Jaguar Land Rover facility will require a – Upon booking a timeslot a unique reference number will be allocated timeslot booking and a unique reference number. which must be communicated to the driver for security purposes • – Contact numbers to book a timeslot are as follows: – A timeslot should only be booked for material that appears on the • – Unipart Baginton - 07827 232296 or 02476 882058 supplier Schedule Agreement and for which a firm order quantity exists • – Unipart Honeybourne - 01386 716000 – If the consignment is a small package and does not require any material • – Metokote Primer - 01327 703745 extn 235 handling equipment, Unipart will allocate an open time slot • – Neovia Logistics, Desford, Leicester, LE9 9JU - 01455 825800 – In the event that the supplier cannot adhere to the timeslot allocated, the supplier should telephone Unipart receiving warehouse to advise on – The supplier must book a timeslot, 24 hours prior to delivery 07827 232296 or 02476 882058 – When telephoning to book a timeslot the supplier must advise the – The reference number must be provided at the security gate upon number of cartons or pallets to be delivered arrival – Unipart will advise the supplier of allocated time slot which must be Deliveries made without a time slot booking will be refused at the gate. strictly adhered to 26
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