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Are Gold Prices On Track For Worst Month Of The Year?

Thu, 21 Jul 2022 09:13:54 GMT

Gold prices weakened over the past 24 hours, sending XAU/USD inching closer and closer to the 2021 low of 1676. In fact, July has been a pretty dismal month for the yellow metal so far. If the losses continue at the time of writing, gold is expected to lose 6.4% in July. That would be the worst monthly performance in more than a year.

Surprising to us, the precious metal failed to capitalise on the softer US dollar overnight. The dollar index DXY is in for its worst week since late May, with losses extending through the end of this week. Rosy sentiment in the stock market is likely to push demand away from the haven-linked currency.

Gold tends to be inversely related to the US dollar as well as government bond yields. The latter is largely dictated by what the Federal Reserve does. Aggressive monetary tightening and rising yields have reduced gold’s appeal this year.

A significant change in global monetary policy tightening is likely to be needed to revive the strong demand for gold worldwide, making for a tough road ahead. It might be too much at this point. Today, all eyes are on the European Central Bank, which is expected to raise interest rates.

It has been confirmed Gold has a break below the September 2021 low at 1722 , approaching the 2021 low at 1676. The latter could be key support, with the 20-day simple moving average headed lower. This line could serve as resistance in the event of a reversal to the upside, possibly resuming a broader bearish focus. Further losses focus on the 78.6% Fibonacci extension at 1656.

The iG Customer Sentiment (IGCS) sensor shows that about 89% of retail traders are net-long. The IGCS tends to behave as a contrarian indicator. Since the vast majority of investors are bullish, this suggests that prices may continue to fall. Bearish exposure is down 3.98% and 21.26% from yesterday and last week, respectively. With this in mind, the combination of current sentiment and recent changes suggests a stronger bearish bias to the opposite trade.

Is The UK Leading The Way On Green Trade?

Fri, 08 Jul 2022 10:35:21 GMT

The UK wants to "lead the way" on Green Trade but remains in the "early stages" of trade discussions with Gulf Cooperation Council (GCC) countries, three of which have no net zero climate commitments, the secretary of state for international trade has confirmed.

In a recent interview, Anne-Marie Trevelyan, the Secretary of State for International Trade of United Kingdom, said a new Green Trade strategy would involve "liberalising tariffs" and "starving Putin's war machine" but refused to say trading with partners without net zero commitments would be a red line. She also said there is a "real understanding" about the importance of clean energy among some GCC countries.

Environmental analyst, Jonny Peters, says net zero commitments should be the "bare minimum" for the UK to show its commitment to green trade. "While the trade secretary's announcement today is welcome, the UK needs a fully fledged green trade strategy that rises to scale of this challenge".

Nearly £190m of new loan guarantees will be announced soon to "power green growth" and support 350 UK jobs. Ms Trevelyan says the UK is in a "leading position" on low carbon exports and "green trade spells green jobs". However, Liz Truss, Ms Trevelyan's predecessor, was criticised for abandoning climate pledges in the Australia deal after deciding the government could "drop both of the climate asks" from the text of the trade deal, according to a leaked email from a senior official.

Ms Trevelyan said green trade is a "developing area" and the Australia deal was the first time the country had committed to an Environment Chapter as part of negotiations.

Mr Peters, an adviser at E3G (an independent climate change think tank), states nearly a quarter of global carbon emissions relate to trade and warned that the EU is taking a "more innovative approach" to green trade than the UK. To which Ms Trevelyan said it is "not a competition". She said: "Germany has a big industrial base, where decarbonisation is really important. France is ahead of the game because over 70% of their energy is nuclear. So every country has a different part to play. And the UK has been leading right from the start."

Soon after, when asked whether a climate commitment would be part of a deal with India, the world's third largest carbon emitter, Ms Trevelyan said "we haven't reached that final position" but commitments were "set out at COP26". She states India is looking to expand its offshore wind capacity and the UK is in a good position to assist.

The secretary of state has also confirmed a new "Green Trade and Investment" event will be held in the North East this autumn. More on this soon, keep your eyes peeled.

Are Steel Import Tariffs Being Extended?

Fri, 01 Jul 2022 13:52:14 GMT

Tariffs on steel imports that were due to expire will be retained for a further two years, the government said.

International Trade Secretary Anne-Marie Trevelyan said the plans departed from the UK's "international legal obligations" but was in the "national interest" to protect steel makers. She added the decision was made due to the "global disruptions" to energy markets and supply chains.

It's no secret that British steel producers are under pressure from soaring energy prices. Yet, s teelmaking is still a key industry for some parts of the UK, employing around 34,000 people and turns over around £2bn annually. Without controls, the government has warned the supply of steel into the UK could rise substantially, harming local manufacturers.

UK Steel previously said ending the import controls could cause as much as £150m a year in damage. Prime Minister Boris Johnson said keeping the import controls on foreign steel would protect metal manufacturers. But there were concerns such a decision could breach international law as the question of extending tariffs on steel imports is seen as potentially breaking World Trade Organization (WTO) commitments.

Ms Trevelyan said the decision "departs from our international legal obligations" of a WTO agreement. "However, from time to time, issues may arise where the national interest requires action to be taken," she added.

The limits on steel imports were introduced by the European Union (EU) back in 2018, in response to tariffs imposed by the Trump administration. The controls were mirrored by the UK after Brexit. The restrictions, which add a tax to steel imports once a certain quota has been reached, are known as "steel safeguards" because they are designed to protect the domestic market from surges of cheap steel from overseas. Mr Johnson said: "We need British steel to be provided with much cheaper energy."

The controls are currently in place for 15 categories of steel. While controls protecting 10 of those categories have already been extended to 2024, import limits on five categories were set to expire on the 30th of June, before the government extended them for two years.

Steelmaking accounts for just 0.1% of the UK economy - but the material being used in crucial sectors, from defence to transport, means that it's considered an important industry to protect from cheaper imports. That's why the EU applied tariffs to some types of foreign steel, primarily on steel from China, in 2018, when the UK was a member.

Now the UK has chosen to roll over many of those controls. The move, which has been expected for some months, was reported as one reason for the resignation of the Prime Minister's ethics adviser Lord Geidt - but he later dismissed the issue as a "distraction".

The Trade Secretary Anne Marie Trevelyan admits this extension could be at odds with World Trade Organization rules - but claims it reflects exceptionally challenging times for the industry, especially in a time when energy costs are so high.

With the EU and US also retaining similar tariffs, it underlines the tough choices between removing trade barriers, and protecting national businesses.

Alasdair McDiarmid, operations director of the steelworkers' union Community, welcomed the extension saying it was "extremely important". "Government made the right call because giving up our safeguards, when the EU and US are maintaining theirs, would leave us exposed to import surges threatening thousands of jobs," he said.

The largest British trade body representing the industry, UK Steel, said the measures were "absolutely vital to the long-term health of the steel industry in the UK". "Deficient or absent safeguards measures risk trade diversion away from shielded markets elsewhere, resulting in surges of imports into the UK," said Richard Warren, the head of policy and external affairs at UK Steel.

Nick Thomas-Symonds, Labour's shadow international trade secretary, states: "The extension of safeguards will come as a welcome relief to the steel sector. "It is not anti-competitive to provide a level playing field for our steel industry," he said. "I also support the decision to exclude Ukrainian steel." But some criticised the move, saying it would stifle the supply of much-needed steel not produced in the UK.

Despite being a "step in the right direction," the Confederation of British Metalworkers boss Steve Morley said, the tariffs raise the "very real prospect of lost orders and production being moved away from the UK."

"British steel mills have not been able to supply the... materials our members need to support critical domestic and export supply chains, nor are they likely to be able to do so in the near future," he said.

What Are Importers Currently Doing As The Rupee Plunges Against The Dollar?

Fri, 24 Jun 2022 14:31:46 GMT

Companies with US dollar loans on their balance sheets and importers are rushing to cover unhedged foreign currency exposures after the Federal Reserve's latest resolve to detain inflation caused concerns of continued fund outflows from India - potentially quickening the rupee's further depreciation.

With exporters also holding on to their earnings in anticipation of a further slide in the local unit, odds are shortening on a demand surge for hedging instruments in the currency market.

"Whenever there is pressure on the rupee, importers jump into the market," said Sushanta Kumar Mohanty, the general manager - of treasury at Bank of Baroda. "We could see some private players now rush in to buy currency hedges. With the rupee plunging to lifetime lows, it is high time they cover their currency risks to protect margins." Data updated until June 20 from the Clearing Corporation of India showed that hedging activities are increasing, with importers/hedgers buying $1.6 billion of net forward contracts on a single day last week, compared with $478 million at the beginning of the month.

The Chairman of Fed Reserve Jerome Powell told lawmakers recently that the US central bank was committed to bringing down inflation in the world's biggest economy, recognising the hardship higher consumer prices were causing to the average American.

Crude oil, industrial gas and fuels, trading, consumer durables and telecom are the top five sectors currently with the highest deficits, or the excess of imports over exports, data from Bank of Baroda Economic Research showed. The rupee climbed about 0.1% to 78.32 Thursday this week after global crude oil prices dropped. The local unit had hit lifetime lows of 78.38 to a dollar on Wednesday.

"The drop in the forward premium, coupled with a rise in the pace of rupee depreciation, has prompted many importers to cover their currency risks - both through linear and non-linear products," said B Prasanna, group executive and head of global markets, ICICI Bank.

How much did the rupee lose in June 2022?

Forward premiums dropped to record low levels since 2010. The Onshore Implied Yield tanked 69-88 basis points since May 31 this year across one-month, three-month, six-month and twelve-month maturities, showed Bloomberg data compiled by ETIG. One basis point is 0.01%.

However, the rupee lost 0.86% in June, outpacing the drop in the premiums and potentially worsening losses for importers.

The demand for currency risk covers was reflected in the forward premiums Thursday when they increased 20-32 basis points over Wednesday's levels.

"The latest lifetime low despite an aggressive central bank intervention has particularly moved the importers that have begun to worry about the offshore liabilities," said Anindya Banerjee, the currency analyst, of Kotak Securities.

While select banks were seen selling dollars, they were backing up such action via buy-sell swaps. This mechanism triggered a crash in the forward premiums.

Will there be a further fall in the coming months?

"The fundamentals are pointing toward a weaker rupee and continuous intervention has made the rupee pretty overvalued as compared to other Asian peers," said Abhishek Goenka, the CEO of IFA Global. "Importers are now willing to buy cheap hedges because premiums have dropped, using the forwards and various option combinations."

The Standard Chartered INR Real Effective Exchange Rate (REER) index, based on the central bank's 36-currency trades, yielded 123.26 on Thursday compared with 118.08 nearly a year ago, clearly demonstrating the rupee's overvaluation.

The hedge ratio for importers is estimated to have crossed more than 50% now, while less than half of the importers had covered their risks earlier.

Minimising adverse environmental impact: Coal India exploring green mining technologies

Fri, 17 Jun 2022 13:09:04 GMT

Coal India Limited (CIL) is exploring deployment of green mining technologies in its mines to minimise adverse environmental impact.

With land turning out to be a major pain point for expansion of coal mining operations, these technologies bypass land acquisition and avoid its degradation. The coal assets left out earlier due to techno-commercial and safety concerns can now be unearthed through these technologies, an official states.

CIL is exploring ramping up its underground production by four-fold to 100 million tonnes (MTs) by FY 2030, from 25.6 MTs in FY 2022. Underground output is environmentally clean, is minimally invasive on land degradation, and is society friendly. Around 70% of the country’s coal reserves are conducive for underground mining.

The aim is to make underground production (UG) sizeably supplement the Open cAst (OC) output. At current rate, mineable coal reserves at existing OC will slowly start lowering. Among mass production technologies, CIL will introduce 50 continuous miners by 2025

CIL is aiming to mine coal through punch entry in those OC mines which have reached their ultimate pit level. This could be done through a mix of technologies. CIL plans to identify and implement 5 such mines through punch entry in phased manner till 2024. So that mineable coal assets can be extracted with economic viability.

CIL is planning to deploy 10 High Wall machines in its OC mines during the ongoing fiscal with projected production potential of 5 MTs/Year. With one such project already operational in SECL three more will soon be functional in ECL. One Highwall machine entails a capex of Rs.200 Crs.

Since nationalisation in 1975, UG output contracted by 57.7% till FY’22 while OC production expanded by 8.5 times.

What tilted the scales against UG mines was loss incurring production, longer gestation period, lack of skilled labour, unavailability of indigenous equipment, and departmental production cost being high.

With multiple options available now UG production could become viable. Important among them are, mass production technologies, availability of indigenous manufacturing units and well-trained skilled labour.

Paste fill technology is yet another environment-friendly frontier which involves high speed stowing technology. This will be compatible with mass production technology. In contrast to conventional sand stowing, it uses fly ash to fill the void created by extracting coal from UG mines, which is yet another environmentally friendly step. Such system is in advanced stage of implementation in ECL, the statement said.

London Metal Exchange sued for $456m over cancelled trades

Tue, 07 Jun 2022 10:06:58 GMT

The London Metal Exchange (LME) has been sued for $456m (which is equivalent to £365m) by fund manager Elliott Associates following the suspension and cancellation of nickel trades earlier this year.

The claim was filed in the English High Court against the trading platform and its subsidiary LME Clear.

It alleges that LME's decision to cancel trades on march 8th because of a surge in nickel prices was "unlawful".

For those of you not sure what Nickel is used for, it's mainly used in rechargeable batteries and stainless steel. However, sourcing nickel has become more difficult, partly because of the war in Ukraine, as Russia is one of the world's biggest producers of the metal.

Recently, the Hong Kong Exchanges and Clearing (HKEX), which owns LME and LME Clear, said in a statement that nickel prices had "increased dramatically over a short period" in the early hours of March 8th, UK time. The statement claimed LME cancelled all nickel trades executed after midnight, and suspended the trading of nickel from 8.15am.

Elliott Associates has said the cancellations were "unlawful on public law grounds" and "constituted a violation" of its rights, according to the statement.

In response, HKEX said "The LME management is of the view that the claim is without merit and the LME will contest it vigorously." It also claims that LME decided to suspend trading because the nickel market had become "disorderly" and it had "always acted in the interests of the market as a whole".

Nickel trading did not resume on LME for more than week after it was halted. Since then, the LME has come under scrutiny from the European authorities and industry leaders, who have called for more regulation of the commodities market.

Nickel has become increasingly sought after as it is key to the production of lithium ion batteries, which power everything from the smartphones in our pockets to the industrial robots science is advancing.

As Russia, which is a major source of nickel, is targeted with Western sanctions in response to its invasion of Ukraine, its price has risen throughout 2022 already on global markets.

So what does this mean for the future of Nickel trading across the world?

We will have to wait and see. As soon as an update is released, we will publish a blog stating the latest you need to know.

Zinc Trading: What You Need to Know

Thu, 26 May 2022 10:02:54 GMT

Did you know, in 2020, approximately 13.2 million metric tons of zinc were consumed worldwide? Because of the heavy consumption of zinc, it is one of the most widely produced metals . It's the fourth most used metal in the world after steel, aluminium and copper, and plays an important role in the automotive and construction industries thanks to its anti-corrosive properties. Zinc, like steel, can also be indefinitely recycled, reducing the need to mine and extract the metal from ores

Global Pacific Services has been growing its connections to the Zinc industry over the past few years as demand has increased globally. It has been important for us to develop a footprint from producers to traders worldwide and to advance our consultants understanding of this niche industry.

So without further ado, let's breakdown what zinc is, how its traded and who the customers for zinc are.

What is Zinc?

Zinc is a naturally occurring element found in the earth’s crust, normally in association with other metals including copper, gold and silver. Approximately 70% of the world’s zinc is produced from mining while the rest (30%) comes from recycling secondary zinc .

Sphalerite (zinc sulphide) is the most commonly encountered zinc mineral and the most important ore of zinc. Zinc concentrate is produced through concentrating the sphalerite using the froth flotation method - the most widely used method for ore separation .

But what happens in froth flotation? Minerals are separated from the gangue (commercially insignificant material surrounding the mineral in an ore deposit) by grinding the ore down into grains which are then mixed with water to form a slurry. The addition of a surfactant or collector chemical to the slurry renders the desired mineral hydrophobic so when the mixture is agitated, the hydrophobic particles attach to air bubbles and rise to the surface forming a froth . The froth removed from the tank produces a concentrate of the target mineral, normally zinc sulphide in zinc production.

The zinc concentrate is converted into pure zinc through smelting , either the pyrometallurgical or electrolysis process although electrolysis is the most widely used method. Metallic zinc deposit (pure zinc) which forms on the cathodes during smelting is melted down, cast and sold as ingots to customers worldwide.

While some mines produce primarily zinc, there are mines which produce it as a side-product when processing a different metal which had a higher concentration in the mined ore. Commercially pure (99.995% purity minimum) zinc is also known as ‘ Special High Grade Zinc ’.

For a list of the largest zin mines in the world, click HERE . Number 9 on the list will surprise you!

How is Zinc Traded?

Zinc mines are scattered throughout the world with Australia, China and Peru being the principal producers of the metal. Australia currently owns the largest zinc reserves worldwi de - an estimated 69 million metric tons. Other countries with significant reserves include China, Russia, and Mexico. According to recent research, China was the global top producer of zinc from mi nes, with 4.2 million tonnes or 35% of the global total. The top zinc mining companies include:

Vedanta Resources
Glencore
BHP
Teck Resources
Sumitomo
Nexa Resources
Boliden AB
China Minmetals

And the top zinc smelting companies include:

Nyrstar
Glencore
Boliden
Hindustan Zinc Ltd
Nexa Resources

On the financial markets, zinc is traded in terms of futures and options contracts on the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME) but with increasing demand other exchanges are likely to add similar contracts to their services.

Who are the Customers?

The top customers in the trading of zinc include:

Alloy makers (e.g. brass and bronze production)
Battery manufacturers
Die-casters
Fertiliser companies
Galvanising plants (primarily in automotive and construction industry galvanisation)
Pharmaceutical companies
Steel mills

The 10 Largest Gold Mines in the World

Fri, 20 May 2022 13:36:54 GMT

Gold mining is a global business, with hundreds of mining companies digging for the precious metal in dozens of countries around the world. But where exactly are the largest gold mines? Are they in the USA or Australia?

We have used the publicly available data compiled from S&P Global Market Intelligence, the World Gold Co un ci l and other company reports to map and calculate the top 10 gold-producing mines in 2021. Please note the percentages slightly differ from those calculated by S&P.

The Top Gold Mines in 2021

The 10 largest gold mines are located across nine different countries in North America, Oceania, Africa, and Asia. Together, they accounted for around 13 million ounces or 12% of global gold production in 2021.

Sourced from Elements

In 2019, the two largest gold miners in the world —Barrick Gold and Newmont Corporation—made history by announcing a joint venture combining their operations in Nevada, USA. The joint corporation is called Nevada Gold Mines, and is now the world’s largest gold mining complex with six mines churning out over 3.3 million ounces annually.

The Muruntau mine, which is located in Uzbekistan, is one of the world’s deepest open-pit operations, produced just under 3 million ounces - making it the second-largest gold mine in the world. In fact, according to the data we have analysed Muruntau represents over 80% of Uzbekistan’s overall gold production.

The only two other mines that produced more than 1 million ounces of gold in 2021 were Grasberg and Olimpiada. Grasberg is not only the third-largest gold mine but is also one of the largest copper mines in the world. And Olimpiada, owned by Russian gold mining giant Polyus, holds around 26 million ounces of gold reserves. Did you know Polyus was crowned the biggest miner in terms of gold reserves globally, holding over 104 million ounces of proven and probable gold between all deposits? Well, now you do.

But How Profitable is Gold Mining?

According to the data, the price of gold was up by (at the time the stats were collected) around 50% since 2016, and it’s hovering near the all-time high of $2,000/oz. That’s good news for gold miners, who achieved record-high profit margins in 2020. For every ounce of gold produced in 2020, gold miners pocketed $828 on average, significantly higher than the previous high of $666/oz set in 2011. With inflation rates hitting decade-highs in several countries worldwide, gold mining could be a sector to watch, especially given gold’s status as a traditional inflation hedge.

FAQ | What is ISPM 15?

Thu, 12 May 2022 13:07:02 GMT

ISPM 15 is not as complicated as you might think. It stands for the International Standards for Phytosanitary Measures no.15 and simply refers to the required international standards of treatment that must be applied to solid wood used to ship products from country to country.

If a country has adopted ISPM 15 regulations, there is a set of criteria that must be met when shipping products internationally using any solid wood packaging, such as a box, crate, pallet etc.

Why was ISPM 15 introduced?

Numerous countries around the world became concerned about the global spread of diseases and pests through wood packaging, and shipping the wood pallets had become a high risk pathway for the introduction of exotic insect pests and plant pathogens.

For example, in America and Canada there is a microscopic pest called the Pinewood Nematode. If this gets into other continents, it can be very hazardous to their native trees.

The ISPM 15 was developed to prevent any further spread of these pests or diseases and to limit/reduce the chances of them harming native flora and fauna.

It’s not compulsory, but many of the leading countries involved in international trade have adopted it, including the. The countries currently requiring wood packing to be in line with ISPM 15 regulations are:

Albania
Argentina
Australia
Bolivia
Brazil
Canada
Chile
China
Colombia
Costa Rica
Croatia
Cuba
Dominican Republic
European Union (ISPM15 includes the EU, however, it does not apply for goods moving from one EU Member State to another; it applies for imports from outside the EU into the EU.)
Ecuador
Egypt
Guyana
Guatemala
Honduras
India
Indonesia
Iran
Israel
Japan
Jordan
Kenya
Republic of Korea
Lebanon
Mexico
Morocco
New Zealand
Nicaragua
Nigeria
Norway
Oman
Paraguay
Peru
Philippines
Seychelles
South Africa
Sri Lanka
Switzerland
Syria
Taiwan
Tanzania
Tunisia
Turkey
Ukraine
Uruguay
USA
Venezuela

ISPM 15 ensures that solid wood is treated in a particular way, making it as safe as possible when travelling between different parts of the world.

What are the ISPM 15 regulations?

The terms of ISPM 15 regulations depends on whether you’re importing or exporting. If you are importing solid wood packaging from outside the European Union (EU), it must meet the ISPM 15 international standards. If you are exporting packaging outside of the EU, check if the country that you’re trading with accepts ISPM 15 standards and if they have any other requirements regarding the shipment and its contents.

The regulations require that all non-exempt wood packaging material, be it hardwood or softwood, must be heat treated to the core for 30 minutes at 56 degrees celsius, or be fumigated with Methyl Bromide .

Before it’s fumigated or heat treated, all wood used for wood packaging needs to also be debarked. This is to stop the wood becoming re-infested with pests while it is waiting to be made into packaging.

Once treated, a business that has been previously approved by an accredited inspection agency must apply the quality treatment mark, which is commonly applied as an ink stamp, stencil or brand made clearly visible on the surface of the wood packaging. When the wood has been treated and the quality mark has been applied, it is officially ISPM 15 compliant and it doesn’t require any further treatment.

There are certain types of wood that the ISPM 15 regulations don’t apply to as they are considered low risk. These are:

Any processed woods
Wood less than 6mm thick
Cardboard
Sawdust
Wood wool
Wood shavings
Veneer peeler core.

What happens if my wood packaging is not ISPM 15 compliant?

If you do not follow the ISPM 15 regulations, your packaging might be:

Fumigated (contents and all) and your shipper may be charged a premium rate.
Rejected and destroyed
Buried in landfill
Rejected and returned back to origin at the original cost

ISPM 15 standards are to be taken seriously, so make sure that you, your packing service or your freight forwarder meets the requirements.

How can we help?

When you choose Global Pacific Services for your shipping needs, our experienced packing team will assess the requirements of each shipment, ensuring that your goods are suitably packed and protected.

If you’d like to know more, contact us today . We’ve been providing excellent services in worldwide logistics for 30+ years, proving ourselves to be a reputable and reliable freight forwarder.

Are Precious Metals a Good Investment?

Fri, 06 May 2022 12:54:46 GMT

If you've been thinking about creating an investment portfolio, you've probably thought about buying gold, silver and/or other precious metals. When starting an investment portfolio, many people start with stocks. However, novice investors soon realise that being 100% in stocks can be a problem during a meltdown on the equities market. That’s typically when the investors begin to look at other investments and begin to take a look at precious metals as a possible addition to their portfolio.

But are precious metals really a good investment? Here's a breakdown of what precious metals are and if we think they are good additions to a growing investment portfolio:

What Are Precious Metals?

Precious metals are metals that are rare and have a high economic value, due to various factors, including their scarcity, use in industrial processes, and role throughout history as a store of value. The most popular precious metals with investors are gold, platinum, silver and palladium.

Gold

Let's start with the precious metal most of you are wanting to know about: gold.

Gold is unique for its durability (meaning it doesn't rust or corrode), malleability , and ability to conduct both heat and electricity. It has some industrial applications in dentistry and electronics, but we know it mainly as a base for jewellery and as a form of currency.

The value of gold is determined by the market 24 hours a day, seven days a week. Gold trades tend to be a function of sentiment—meaning its price is less affected by the laws of supply and demand. To put it simply, when hoarders feel like selling, the price drops. When they want to buy, a new supply is quickly absorbed and gold prices increase.

There are several reasons for an increased desire to hoard gold, they are:

Systemic financial concerns : When banks and money are perceived as unstable, or political stability is questionable, gold is often sought out as a safe store of value.
Inflation : When real rates of return in the equity, bond, or real estate markets are negative, people tend to hold on to gold as an asset that will maintain its value.
War and political crises : Both war and other political crises have always sent people into a gold-hoarding mode. An entire lifetime's worth of savings can be made portable and stored until it needs to be traded for foodstuffs, shelter, or safe passage to a less dangerous destination.

Silver

Unlike gold, the price of silver swings between its perceived role as a store of value and its role as an industrial metal. This means price fluctuations in the silver market are more volatile than gold.

So, while silver will trade roughly in line with gold as an item to be hoarded, the industrial supply and demand equation has a strong influence on its price. That equation has always fluctuated with new innovations, including:

Silver-based photographic film has been eclipsed by the advent of the digital camera.
The rise of a vast middle class in the emerging market economies of the East created an increased demand for electrical appliances, medical products, and other industrial items that require silver. Silver's properties make it a desired commodity.
It's use in batteries, superconductor applications, and microcircuit markets etc.

Silver's price is affected by its applications and is not just used in fashion or as a store of value.

Platinum

Like gold and silver, platinum is traded around the clock on commodity markets worldwide. It's often a higher price (per troy ounce) than gold during routine periods of market and political stability due to its rarity. Far less of the metal is actually pulled from the ground annually.

Other factors that determine the price of platinum include:

Platinum is considered an industrial metal, just like silver. The greatest demand for platinum comes from automotive catalysts, which are used to reduce the harmfulness of emissions. After this, jewellery accounts for the majority of demand. Then petroleum, chemical refining catalysts and the computer industry use up the rest.
Because of the auto industry's heavy reliance on metal, platinum prices are determined in large part by auto sales and production numbers.
Platinum mines are heavily concentrated in only two countries—South Africa and Russia. This creates greater potential for cartel-like action that would support or even artificially raise platinum prices.

Those looking to invest in platinum should consider that all of these factors serve to make the most out of this volatile precious metals.

Palladium

Lesser known than the above three metals is palladium. Palladium is a shiny, silvery metal used in many types of manufacturing processes, particularly for electronics and industrial products. It can also be used in dentistry, medicine, jewellery, and groundwater treatment.

The majority of the world's supply of this rare metal comes from mines located in the United States, Russia, South Africa, and Canada.

The largest industrial use for palladium is in catalytic converters because the metal serves as a great catalyst that speeds up chemical reactions. This shiny metal is 12.6% harder than platinum, making the element also more durable than platinum.

5 Reasons Why Precious Metals Are a Good Investment

There are a number of reasons why you may want to consider adding precious metals to your investment portfolio. Here’s a look at five compelling reasons to consider:

1). Holds Purchasing Power

For thousands of years, precious metals have held their value. For example, you could purchase farmland in the ancient Roman Empire for a couple of ounces of gold. Today, you can also purchase a couple of acres of farmland – just about anywhere in the world – for a couple of ounces of gold. You can always count on precious metals to provide you with purchasing power over the long term.

2). Not Correlated with Stocks

If you have an investment portfolio primarily of stocks, then you know how volatile your investments can be when there are market meltdowns. Historically, gold and silver are not correlated with the stock market. That means that your investment in precious metals will likely hold their value even if the market crashes. So adding precious metals can help smooth out your returns over the long run.

3). Can Be Privately Held

Unlike stocks, you can purchase precious metals from a private seller and take physical possession of the asset. From there, you can store it privately - how ever you wish.

4). Accepted as an Alternate Form of Currency

Around the world, precious metals are seen as a form of currency. Whether you are in the United States, Russia, Africa, or China, you will be able to exchange gold, silver, platinum etc for goods and services.

5). Acts As an Inflation Hedge

Finally, precious metals can act as an amazing hedge against inflation. So what exactly is inflation? When you have inflation, the price of goods and services begins to rise. In most cases, inflation can spiral out of control and begin to devalue people’s purchasing power. During inflationary times, gold and silver tend to outperform other assets.

What Are The Risks Of Precious Metals?

Every investment comes with its own set of risks. Although they may come with a certain degree of security, there is always some risk that comes with investing in precious metals. Prices for metals can drop due to technical imbalances (more sellers than buyers). That said, during times of economic uncertainty, sellers benefit, as prices tend to shoot up.

What Are the Best Ways to Invest in Precious Metals?

The best ways to invest in precious metals is either to buy the metal outright and hold the physical form or to purchase exchange traded funds (ETFs) that have a significant exposure to precious metals or companies involved in the precious metals business.

In Conclusion...

Precious metals provide a useful and effective means of diversifying a portfolio. The trick to achieving success with them is to know your goals and risk profile before jumping in. The volatility of precious metals can be harnessed to accumulate wealth. Left unchecked, it can also lead to ruin.

UK’s Plastic Packaging Tax | April 2022

Fri, 29 Apr 2022 11:56:56 GMT

The UK’s Plastic Packaging Tax (PPT) became effective on the 1st of April 2022 and applies to plastic packaging in the UK that contains less than 30% recycled plastic content at a rate of £200 per metric tonne.

The tax aims to:

encourage the use of more sustainable plastic packaging
increase the use of recycled plastic
help reduce plastic waste

The PPT has been promoted by the UK government as a world leading measure and other jurisdictions are putting in place similar regimes to combat plastic waste worldwide. We expect plastics regulation to continue growing globally in the coming years given the current focus on sustainability.

The Uk's PPT is payable by manufacturers and importers of plastic packaging that are liable to register with HMRC either as a result of:

having grounds to believe that they will manufacture or import 10 or more tonnes of plastic packaging within a 30 day window
manufacturing or importing 10 or more tonnes of plastic packaging within the last 12 months.

Importers have to take into account both finished plastic packaging that they import as well as filled plastic packaging that already contains goods (e.g. filled plastic drinks bottles).

As we've mentioned before, a crucial aspect of the PPT is to downstream businesses that buy plastic packaging on which the tax should have already been paid may be found jointly and severally liable for any unpaid tax. In late December 2021, HMRC published guidance on the due diligence businesses should conduct in relation to the PPT.

The guidance does not specifically set out a list of checks that should be carried out in every case. Rather, it is the responsibility of each business to decide which checks are relevant and proportionate to the businesses’ circumstances and supply chain.

Businesses that have not done so yet, should assess whether they are required to register and pay for the PPT. Even businesses that are not required to pay the PPT directly, because of the secondary liability risk, should consider what steps to take to ensure that it is not involved in a supply chain where the PPT goes unpaid.

A Glossary of International Shipping Terms You Need To Know

Thu, 21 Apr 2022 15:59:27 GMT

Shipping products seems simple, right? You simply package the product and send it to your customer. But did you know there are different types of shipment?

Depending on the size of your item(s) being sent, it may be considered parcel, less-than-load (LTL) or a full truckload (FTL) shipment. Your shipment may be too small for certain carriers, or conversely, if you have a large shipment, you may have to rely on a carrier certified to ship large containers. There are also unique considerations depending on the mode of transport—whether you’re shipping via air, sea, road or rail.

When there are different types of shipping and multiple factors to consider, a wide variety of terms that relate to the process of moving goods through a supply chain may seem overwhelming. Understanding the different types of shipment and related terms is crucial to ensure your goods get shipped on time, within compliance and in good shape.

That's why we've put together this glossary of international shipping terms you need to know. Note: there are abbreviations of terms used, we will discuss the full term and explain it all for you.

ACE

The Automated Commercial Environment (ACE) is the online web portal used to report data to the Automated Export System (AES) for exports leaving the United States, and also for customs filing for imports entering the United States.

AES

The Automated Export System (AES) is used by the U.S. government to collect data on exports. This data is called Electronic Export Information (EEI), and often exporters are legally required to file the EEI through AES for each shipment. The U.S. Census Bureau uses this data to calculate trade statistics such as gross domestic product (GDP), while U.S. Customs and Border Protection (CBP) uses it to make sure exporters are following U.S. export regulations.

Aggregate Shipment

Multiple shipments—from different sellers to a single consignee—that are consolidated by the carrier into a single shipment.

Air Waybill (AWB)

The AWB is a document that controls the routing of an exporter’s cargo while it is in the hands of the air carrier or a consolidator. It is a contract for carriage; however, it cannot be negotiated.

Alongside

Refers to the side of a ship. Goods delivered alongside are placed on the dock or barge within reach of the ship’s rigging so it can be easily loaded onto the ship.

Apparent Good Order

When freight appears to be free of damage after being assessed it is said to be in apparent good order.

Arrival Notice

Notification provided by the carrier when a shipment has arrived to the consignee or notify party.

Astern

Means either "behind a ship" or "to move a ship in reverse direction."

ATDNSHINC

An abbreviation that stands for Any Time, Day or Night, Sundays and Holidays Included - referring to when a vessel will operate.

Athwartships

A direction across the width of a ship.

Audit

A detailed examination of a company’s processes to determine if the business is compliant. A government agency may audit a company’s processes or records as part of an investigation related to a potential compliance violation. Companies must pass periodic government audits to maintain their authorisations. Businesses may also conduct internal audits (also known as self-audit), or hire a third party to audit their processes. The Bureau of Industry and Security (BIS), the export control arm of the U.S. Department of Commerce, recommends that U.S. exporters periodically self-audit to ensure compliance procedures are working properly and are up-to-date with regulation changes. Bad record-keeping lowers auditability.

Audit Trail

A system that stores and maintains records of business processes. With regards to exporting, companies are strongly encouraged to maintain an audit trail documenting their compliance screenings in order to demonstrate due diligence in case of an audit. Having an audit trail may protect your company from fines or penalties in the case of an export compliance violation.

Automatic Identification System (AIS)

A satellite system used by ships and vessel tracking service (VTS) to identify and locate ships.

Backhaul

Cargo carried on a return journey.

Balloon Freight

Freight that is low weight but high volume (light but bulky).

Bank Draft

A financial instrument provided by a bank and drawn on another bank.

Beam

The width of a ship.

Beneficiary

The individual/business that receives payment.

Bilateral

A bilateral agreement is one in which both parties agree to provide something for the other.

Bill of Lading

A document issued by a carrier or their agent acknowledging receipt of cargo for shipment. The common abbreviation you may have come across include BOL, BoL, B/L or BL. If there were no issues with the cargo stated, it is said to be a clean bill of lading.

Bill of Sale

A document that confirms transfer of goods in exchange for money.

Bill-To Party

The party paying for goods or services in a transaction.

BIS

The Bureau of Industry and Security (BIS) is an agency within the U.S. Department of Commerce responsible for enforcing the Export Administration Regulations (EAR).

Blocking

Wood or metal supports used to secure cargo while in transit. This is sometimes referred to as Bracing.

Block Stowage

Loading cargo close together to minimise movement of goods while in transit.

Bolster

Equipment attached to a chassis or railcar to secure the container.

Bond Port

The initial port of entry where a vessel transporting goods first arrives at a country.

Bow

The front of a vessel.

Broken Stowage

The empty space in a container.

Bulk Cargo

Cargo that is shipped loose as opposed to being shipped in packages or containers. Grain and coal are examples of goods usually shipped as bulk cargo.

Bull Ring

A device attached to the floor of a container which is used to secure cargo.

Cabotage

Transport of goods between two places in the same country by a transporter from another country.

CAFTA-DR

The Dominican Republic-Central America Free Trade Agreement is a free trade agreement between the United States and several countries and nations, such as the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The agreement includes a most favoured nation (MFN) clause, which requires that service suppliers in one country may not be treated any less favourably than suppliers in other countries that are part of the agreement. It also includes provisions that protect companies in member countries from unfair investment practices, protect intellectual property rights and establish procedures for dispute resolution.

Cargo

Goods being transported, regardless of the mode of transport.

Cargo Declaration

Information submitted prior to, upon arrival or upon departure of an international shipment required by a country’s customs authority.

Cargo Manifest

A document detailing the cargo carried on a ship, often provided to a customs authority.

CARICOM

An intergovernmental organisation of 15 Caribbean countries whose goal is to promote economic integration and cooperation between member states. This zone is called the Caribbean Common Market.

Carnet

A document permitting the holder to temporarily send goods to certain foreign countries for display or demonstration purposes without having to pay duties.

Cash on Delivery (COD)

The sale of goods in which payment is made upon delivery rather than in advance.

Carrier

A carrier is a party that transports goods for another person or company and is responsible for any possible loss of or damage to the goods during transport. A common carrier provides transportation services to the public in return for compensation. A contract carrier provides this service under special contracts, often for government clients.

CBP

Customs and Border Protection (CBP) is the agency within the U.S. government tasked with controlling the flow of people and goods into and out of the country, and with enforcing import and export regulations.

CCL

The Commerce Control List (CCL) is a list of dual-use items (items that have both a commercial application as well as a potential military application) published as part of the U.S. Department of Commerce’s Export Administration Regulations (EAR). Each item is identified with an Export Control Classification Number (ECCN). So knowing the right ECCN for your product is an essential role in determining if you need an export license.

CE Mark

A label indicating cargo conforms to standards established by the European Union.

Certificate of Conformity (CoC)

A document issued by an authorised party that states that a particular product meets relevant standards of quality and performance.

Certificate of Free Sale

A document that indicates a particular product is marketed as eligible for export, and that the particular manufacturer has no unresolved enforcement actions pending before or taken by the U.S. Food and Drug Administration (FDA). It is often used when exporting to countries whose regulatory agencies are not as well-developed as others such as the United States’ FDA.

Certificate of Inspection

A document certifying that merchandise is in good condition immediately prior to being shipped.

Certificate of Origin (COO)

A document certifying where goods were originally made. A COO specific to a particular free trade agreement may be used to claim preferential duty treatment. A generic certificate of origin may be requested by the customs authority of the country of import, in which case the COO must be stamped by a chamber of commerce.

CFR

The Code of Federal Regulations (CFR) is the codification of rules and regulations published in the U.S. Federal Register.

Chamber of Commerce

An association of businesses that may serve several functions, including advocating or lobbying for their member companies, organising business-related programming and events in their communities, and, perhaps most relevant for exporters, providing document certification services.

Chamber Stamp

Some documents require a stamp from a U.S. chamber of commerce to be considered valid. The process of stamping the document is called chamberisation, and a document that has received a chamber stamp is said to be chamberised.

Chassis

The base frame of a wheeled vehicle, used to secure a container prior to movement.

Chock

Material placed next to cargo to prevent excessive movement of the cargo during transit in order to avoid damage.

CL

The abbreviation used for carload or containerload.

Claim

In this context, a claim is a demand made by a customer to a transportation company for payment in order to compensate for loss or damage of goods.

Code of Federal Regulations (CFR)

The codification of the general and permanent rules published by the U.S. Office of the Federal Register; the place where all U.S. federal regulations are published. 15 CFR (Title 15 of the CFR) is the section on Commerce and Foreign Trade.

Commerce Country Chart

Part of the Export Administration Regulations (EAR), which helps exporters determine if they need to apply for an export license in order to ship a particular product to a particular country.

Commercial Invoice

A fundamental document for an international transaction with details including what goods are being shipped, who is the shipper and who is the ultimate consignee. Serves as the basis for all other documents related to the shipment.

Compliance

In this context, being compliant or maintaining compliance means that the company in question is following all applicable laws and rules which govern their shipments. In this context, the more specific terms regulatory compliance or trade compliance may be used to differentiate from other uses of the term, as the word compliance has other meanings in other contexts such as in the fields of medicine and psychology. A business practice that goes against specific laws is termed a compliance violation.

Concealed Loss/Concealed Damage

Shortage of or damage to goods shipped that is not immediately evident upon delivery.

Connecting Carrier

A carrier which acts as an intermediary between two or more other carriers.

Consignee

The person or place to whom a shipment will be transferred. The ultimate consignee is the final recipient of the goods, while an intermediate consignee takes possession of the goods for a portion of the time that they are in transit.

Consignment

A shipment of goods to a consignee.

Consignor

Refers to the exporter or shipper from which the goods originate.

Consolidation

When cargo from multiple shippers is combined in a single container.

Consul

A government official residing in a foreign country who represents the interests of their home country.

Consumption Entry

When goods are imported into the United States without any time or use restrictions. The official U.S. Customs and Border Protection (CBP) website states that about 95% of all imports fall into this category.

Container

A truck trailer loaded with cargo that can be detached for loading onto a vessel or railcar. Different types of containers exist for different shipping needs. For example, a container may be ventilated, refrigerated, insulated, dehumidified or equipped with special devices used to secure certain types of cargo. A container shipment is a large shipment, typically over 20,000 pounds.

Container Manifest

A document clearly identifying the contents of a container, its point of origin and point of destination. Vessels may be required by law to produce a manifest for every container being transported.

Contraband

Prohibited cargo such as illegal drugs or unauthorised weapons.

C-TPAT

U.S. Customs and Border Protection established Customs-Trade Partnership Against Terrorism in November 2001 as a voluntary partnership to help ensure supply chain security. Meeting C-TPAT standards enables faster processing through customs inspections and formalities.

Cube Out

Refers to when a container or vessel has reached its volumetric capacity before reaching its weight capacity.

Customs Bonded Warehouse

A warehouse authorised to receive duty-free goods.

Customs Broker

An individual or organisation who helps a shipper navigate customs requirements.

Customs Clearance

The process in which a customs authority assesses a shipment being imported in their country in order to ensure compliance with their country’s import regulations. A shipment that has been approved and allowed to enter the commerce of their country is said to have cleared customs.

Customs Entry

Also called Entry Summary or Form 7501, is a document that provides U.S. Customs and Border Protection (CBP) with details about a shipment being imported into the United States, such as value, classification and origin. CBP uses the form to calculate duties owed.

Customs of the Port (COP)

A phrase referring to local rules and practices which may impact a shipment.

Customs Value Only

Some shipments involve no actual monetary transaction between the exporter and the consignee, such as shipments for repair under warranty, or shipments of items used for display at trade shows. These shipments are still subject to duties and taxes, and exporters must list the monetary value of the items in the shipment on the customs invoice to enable the customs authority in the country of import to assess how much duty the importer must pay. In these cases, the exporter should include a customs value only statement on the invoice.

Cut-Off Time

The latest time cargo may be delivered to a terminal for loading.

Dangerous Goods

For something to be considered a dangerous good, it has to be corrosive, flammable, poisonous, toxic, explosive, etc. Shipping dangerous goods often requires special documentation or packaging to ensure safety.

Dangerous Goods Declaration

A document required when shipping dangerous goods. There are two main versions: the DG IATA form for air transport and the DG IMO form for inland and ocean transport. There is a third version specifically for shipments of lithium batteries, which is called a Lithium Battery Declaration.

Destination Control Statement

A legal statement added on an export invoice that specifies that the goods are to be transferred to the ultimate consignee and no other party. Diversion to other countries or parties without authorisation is a violation of U.S. law.

DDTC

Directorate of Defense Trade Controls (DDTC) is the government agency tasked with enforcing the International Traffic in Arms Regulations (ITAR), which regulate the export of space- and defense-related products.

D&H

Abbreviation often used for “dangerous and hazardous” cargo.

DBA

This abbreviation stands for “doing business as” - used to specify that a company is doing business under a certain registered name.

Deconsolidation Point

Location where cargo is separated in preparation for delivery.

Deemed Export

Transmission of controlled technology, source code or information to a foreign national at home or abroad. Export regulations apply to deemed exports as well.

Delivery Receipt

A specific document signed and dated by a consignee or their authorised agent confirming receipt of goods and stating the condition of the goods upon delivery.

Demurrage/Detention

Demurrage is a charge to be paid by a shipper or consignee to the carrier as penalty for delaying the carrier’s cargo beyond the allowed free time. Detention is the same as demurrage except that instead of applying to delays in cargo, detention applies to delays in equipment.

Denied Party Screening

This is the process of screening potential customers, partners or vendors against denied party lists. These are lists of individuals or organizations that a government has identified as parties that one can’t do business with and that one may be penalised for doing business with.

Destination Control Statement

A legal statement put on a shipping document that specifies that the goods are to be transferred to the ultimate consignee and no other party. Diversion to other countries or parties without prior authorisation is a violation of U.S. law.

Discrepancy

When documents presented do not conform to the requirements of the letter of credit. Banks will not accept letters of credit that have discrepancies.

Distribution Center

A location created for circulation of products into a specific market. This may or may not be a part of the same company that uses it to move their products to market. A company that specializes in distributing other companies’ products is called a distributor.

Diversion

Diversion refers either to a change made to the route of a shipment/vessel or the transfer of goods from the intended end-user to some other party.

Dock

For road transportation, a platform from which trucks are loaded and unloaded. For sea transportation, a cargo handling area adjacent to the shoreline where a ship ties up.

Dock Receipt

A document used to acknowledge receipt of cargo. Provides the framework for the preparation of an ocean bill of lading.

Drawback

A partial refund of an import fee, usually given if goods are re-exported from the country that collected the fee.

Drayage

Transport of goods over a short distance. Some definitions specify that drayage is the transport of goods in which both the trip origin and destination are within the same urban area. Also called cartage.

Drop Shipping

A popular form of retail business in which the seller takes orders from customers but does not keep the items in stock. Instead, it passes on the order to a manufacturer, wholesaler, another retailer or a fulfillment house that ships the order directly to the customer.

Due Diligence

A company that makes a good faith effort to comply with all relevant rules and regulations that apply to them is said to be practicing due diligence. If you are found to be out of compliance with a particular regulation, demonstration of due diligence can be a mitigating factor against facing fines or penalties.

Dumping

Importing goods into a country at a price less than the fair market value.

Dutiable Value

The amount on which a customs duty is calculated.

Duties

Taxes collected on importing and exporting goods.

EAR

The Export Administration Regulations (EAR) regulate exports of dual-use items, meaning items that have both a commercial use as well as a potential military application.

ECCN

Export Control Classification Numbers (ECCN) are alphanumeric codes used to identify dual-use items, meaning items that have both a commercial use as well as a potential military application. Knowing the right ECCN for your product plays a role in determining if you need an export license.

eCO

An electronic Certificate of Origin (eCO) is a digital document issued by a registered chamber of commerce to an exporter. Certificates of origin are a common customs document required by many countries and as part of various free trade agreements. An eCO is certified by a chamber of commerce electronically, which enables the certification process to occur more efficiently and at lower cost. Shipping Solutions has partnered with the American World Trade Chamber of Commerce (AWTCC) to provide the Shipping Solutions eCO Portal.

EEI

Electronic export information (EEI) is data that exporters report to the Automated Export System (AES) via the Automated Commercial Environment (ACE) online web portal.

Electronic Data Interchange (EDI)

The electronic transmission of business documents such as invoices, purchase orders and bills of lading.

Embargoes

Sanctions are prohibitions designed to protect economic or national security and may include trade barriers, tariffs and restrictions on financial transactions. Embargoes are similar but usually refer to more severe restrictions such as travel bans or blockades.

Eminent Domain

The power of a sovereign government to take property for a necessary public use.

Empty Repo

Stands for empty repositioning; refers to the movement of empty containers.

End-User

The last recipient of a delivery/shipment. Generally synonymous with ultimate consignee. This may be different from the party being billed for the shipment.

Endorsement

A legal signature that signals transfer of rights from one party to another.

Equipment Interchange Receipt (EIR)

A document used when transferring a container from one carrier to another, or from one terminal to another.

ERP

Enterprise resource planning (ERP) software helps companies with order-processing and accounting. Some of these systems include international shipping or trade compliance modules, but these are often limited in their functionality.

Export Compliance Program (ECP)

A company's written set of procedures for ensuring compliance when exporting.

Export Controls/Import Controls

Refers to licenses, permits and other authorisations which may be required from a government to legally export or import something.

Export Documentation Software

A software tool used by a company to ensure consistency, efficiency and auditability in their export documentation and compliance process, such as Shipping Solutions.

Export License

A government-issued permit that authorises a shipper to export a certain good or to export to a certain country or party.

Export Management Company

Exporting companies without their own export department sometimes outsource their export operations to an export management company (EMC).

FAK

A common abbreviation used in international shipping that stands for “freight all kinds.” Often refers to a full container loaded with mixed cargo.

False Billing

Misrepresenting freight information on shipping documents.

Federal Maritime Commission (FMC)

The agency within the U.S. federal government tasked with enforcing laws related to transport of goods by sea.

Federal Register

The Federal Register (common abbreviation include Fed. Reg., FedReg, or FR) is the official journal where new rules and regulations are published.

Force Majeure

A common clause included in contracts that exempts parties for not fulfilling their obligations due to events beyond their control, such as natural disasters or war.

Fore and Aft

The direction on a ship parallel to the centre line.

Foreign Trade Zone

Areas where commodities can be manufactured, modified or stored under specific customs regulations and generally not subject to customs duties.

FPPI

Foreign principal party of interest is the party to whom final delivery of the goods will be made, typically the foreign buyer.

Freight

Any product(s) being transported.

Freight Broker

A person who arranges transportation on behalf of a shipper. Typically a freight broker will connect small shippers to carriers who can move their goods.

Freight Forwarder

A company that arranges the transportation of goods on behalf of a shipper. A freight forwarder may have its own in-house carriers or may contract with external carriers.

FTA

Free trade agreements (FTA) are made between countries in an effort to reduce barriers to trade between the participating countries. They usually involve lowering of duty rates for shipments between participating countries, but may also include provisions for intellectual property rights, environmental protection, dispute resolution and more.

FTR

The Foreign Trade Regulations (FTR) are a set of regulations placed on international trade in the U.S. They are established and updated by the U.S. Census Bureau. It is in the FTR that the requirement to file the Electronic Export Information (EEI) through the Automated Export System (AES) can be found.

Full Truckload (FTL)

A full truckload (FTL) carrier is a carrier that contracts the entirety of a truck’s carrying capacity to a single customer.

General Agreement on Tariffs and Trade (GATT)

Often referred to as GATT, is a legal agreement between many countries which promoted international trade by eliminating trade barriers such as tariffs and quotas. It was succeeded by the World Trade Organization (WTO) in 1995.

General Order

When U.S. Customs orders shipments without entries to be kept in their custody.

Gross Vehicle Weight (GVW)

The total weight of a vehicle including the weight of the vehicle itself and any attached containers.

Harbour

A place where ships stop to resupply and load or unload cargo.

Harbour Master

An official responsible for overseeing harbour operations.

Hatch

The opening on the deck of a ship that gives access to the cargo hold.

Hazardous Materials

These are goods that may pose a threat to safety because they are poisonous, toxic, corrosive, explosive, flammable, etc. It is more common to see the term “hazardous materials” used when shipping domestically within the U.S., whereas the term “dangerous goods” is used more often when shipping internationally.

HMF

This simply stands for Harbor Maintenance Fee.

HS

The Harmonized System(HS) is an internationally accepted system used to classify products. The first six digits of an HS code are universal across all countries, but each country will add additional digits to further add specification to products. These codes determine import and export controls as well as duty rates.

IMDG

International Maritime Dangerous Goods (IMDG) codes are the regulations established by the International Maritime Organization (IMO) for the international transport of dangerous goods.

Import Declaration

Information submitted by an importer or their agent to their country’s customs authority before or upon importation of goods, such as the contact details of the importer, how the goods are being transported and the tariff classifications and values of the items on the shipment.

Import License

A government-issued permit authorising a party to import a good into the country.

In Bond

An import or export shipment that has not yet cleared customs is referred to as in bond.

Interchange Point

A location where freight is transferred from one carrier to another.

Intermodal

Intermodal transportation is the movement of goods via more than one type of transportation (e.g. air, rail, sea, truck, etc.). An intermodal container is one that can be used in different modes of transport without having to unload the goods and reload them at each point at which the mode of transport changes. In the context of international trade, intermodal container is usually synonymous with container.

International Chamber of Commerce (ICC)

The ICC plays a role in rule setting, dispute resolution, and policy advocacy in international trade, supporting the commerce goals of the United Nations and the World Trade Organisation.

Inward Foreign Manifest (IFM)

A document listing all cargo entering a country.

ISPM 15

International Standards for Phytosanitary Measures No. 15 (ISPM 15) is an international environmental standard for treating wood packaging materials (WPM) in order to curb the spread of plant pests. Under the ISPM 15 rules, all wood packaging materials such as pallets, crates and boxes must be debarked, then heat treated or fumigated to eliminate insects or diseases which could be harmful to ecosystems.

JIT

Simply stands for "just in time." A method of inventory control which minimizes warehousing and in which the container itself acts as a movable warehouse and arriving on schedule is crucial.

J-List

Found in 19 CFR 134.33, the J-List is a list of items exempt from country of origin marking requirements when importing into the United States. Items on the J-list are usually exempt because they are either incapable of being marked (e.g. liquids) or marking them is impractical (e.g. fine art).

Laden

Loaded aboard a vessel.

Landed Cost

The total cost of an international shipment, found by adding the price paid by the buyer to the seller, shipping costs, shipment insurance and all applicable import duties and fees.

Less-than-Truckload, Less-than-Load (LTL)

A medium shipment, typically between 150 pounds and 20,000 pounds. An LTL carrier mixes freight from several customers in a single truckload. May also be called less-than-container (LCL).

Letter of Credit

Also known as a documentary collection and abbreviated as LC or L/C, a letter of credit is a written commitment by a bank issued after a request by an importer that payment will be made to an exporter provided that the terms of the letter of credit have been met as evidenced by the presentation of certain documents.

License Exception

Certain criteria may be met that allow an exporter to export a product without an export license in cases where an export license would normally be required.

Liquidated Damages

The penalty a seller must pay the buyer if a project does not meet the standards or deadline outlined in the sales contract.

Logistics

The management of the flow of products as they are transported from the point of origin to their final destination. A logistics company is a general term for a company that provides logistics services, which may include freight forwarding, customs brokerage and/or consulting services.

Longshoreman

A port employee tasked with loading and unloading ships.

Maritime

Relating to transport by sea.

Marking

Letters, numbers or other symbols placed on packaging used for identification purposes.

Master Bill of Lading

A bill of lading issued by a carrier to a freight forwarder acknowledging receipt of container for shipment. This is different from a house bill of lading which is issued by a freight forwarder to a shipper, acknowledging receipt of their items for shipment.

Most Favoured Nation

This term is commonly abbreviated to MFN, and its a status accorded by one national government to another in the context of international business. A country with MFN status may not be treated less favourably in international transactions than any other country with MFN status.

MPF

Merchandise processing fee.

NAFTA

The North American Free Trade Agreement (NAFTA) was established to harmonise trade between the United States, Canada and Mexico. Companies located in these countries may be eligible for reduced duty rates when importing if their goods qualify under the right terms. t is important to know that NAFTA was replaced on July 1, 2020, by the United States-Mexico-Canada Agreement (USMCA).

NCBFAA

The National Customs Brokers and Forwarders Association of America (NCBFAA) is an organisation representing the interests of customs brokers and freight forwarders in the U.S.

NEC, NES

Not elsewhere classified, not elsewhere specified.

Negotiable/Non-Negotiable

A negotiable instrument is a document that can be transferred from its original holder to a third party. A non-negotiable document cannot be transferred to another party. An inland or ocean bill of lading may be either negotiable or non-negotiable; a bill of lading consigned “to order” or “to order of shipper” is negotiable once it is endorsed on the back by the shipper or their representative. Airwaybills are always non-negotiable.

Net Weight

The weight of goods not including the weight of their packaging.

Non-Dumping Certificate

Required by some countries to ensure protection against dumping of certain products.

NVOCC

A non-vessel operating common carrier (NVOCC) behaves like a carrier except it doesn’t provide the actual transportation service itself. Instead, a NVOCC buys space from carriers and sells this space to shippers. For more on NVOCC, click HERE .

On Board

A notation on a bill of lading indicating that cargo has been loaded on a ship.

On Deck

A notation on a bill of lading indicating that cargo has been stowed on the open deck of a ship.

Open Account

A transaction in which goods are shipped to a foreign buyer without guarantee of payment.

Operating Ratio

A measure of operating efficiency based on a comparison between a carrier’s operating expenses and its net sales.

Overage

When the number of units received is greater than the quantity stated on the export documents. Opposite of shortage.

Panama-United States Trade Promotion Agreement

The free trade agreement between the United States and Panama that came into effect in October 2012. It is designed to eliminate obstacles to trade between the two countries and is notable for being the United States’ only bilateral free trade agreement with a Central American country.

Parcel/Package/Small Parcel/Small Package

A small shipment, typically less than 150 pounds.

Payee

The party paid in a transaction; the seller.

Payer

The party paying money in a transaction; the buyer.

Phytosanitary Inspection Certificate

A document issued by the U.S. Department of Agriculture certifying that a shipment has been inspected and is free from harmful pests and plant diseases. Used to meet import requirements of other countries.

Place of Delivery

Location where cargo leaves the custody of a carrier.

Place of Receipt

Location where cargo enters the custody of a carrier.

POD

Abbreviation for one of three things: 1) port of discharge 2) port of destination or 3) proof of delivery - a document provided by the carrier required to receive payment.

Point of Origin

The location where a shipment is transferred from a shipper to a carrier.

POL

Abbreviation for either port of loading or petroleum, oil and lubricants.

Political Risk

The likelihood that political forces will cause drastic changes in a country’s business environment that adversely affect the profit and other goals of a business enterprise. This may include political violence, expropriation, confiscation and domestication.

Port of Call

Port where a ship discharges or receives traffic.

Port of Entry

Port where cargo is unloaded and enters a country.

Port of Exit

Port where cargo is loaded and leaves a country.

PPI

Principal party of interest.

Prepaid

Freight charges paid by a shipper prior to release of bills of lading by the carrier.

Proforma Invoice

A document that acts as a formal quote, produced by the seller and given to the potential buyer before a transaction is finalised.

Quarantine

A restriction placed on an operation in order to protect public health and safety.

Quota

The quantity of goods that may be imported without restrictions over a set period of time.

Quotation

Usually referred to as a quote, an offer to sell goods at an agreed upon price.

Rate Basis

The formula of specific factors that play a role in determining freight rates.

Reasons for Control

Specific reasons that denote why an exporter would need to apply for an export license. Examples include National Security (NS) and Regional Stability (RS). These exist both at the country level and at the Export Control Classification Number (ECCN) level.

RFP, RFQ

Request for proposal, request for quotation.

Remittance

Funds sent by one person to another as payment.

Revenue

Payment received by a carrier for transporting goods.

Roll-on/Roll-off

These are vessels designed to carry wheeled cargo, such as vehicles and trailers. This is in contrast to lift-on/lift off (LoLo) vessels which use a crane to load and unload cargo.

Sanction

An embargo enforced by a government against another country.

SBA

The Small Business Administration (SBA) is an agency that exists to encourage and facilitate the growth and development of small businesses and entrepreneurs in America.

SCAC

Standard Carrier Alpha Codes (SCAC) are developed by the National Motor Freight Traffic Association and used to identify inland carriers in the U.S.

Section 232 Tariffs

Under Section 232 of the Trade Expansion Act of 1962, the President of the United States is granted the power to adjust import tariffs if excessive foreign imports pose a threat to national security.

Section 301 Tariffs

Under Section 301 of the Trade Act of 1974, the Office of the United States Trade Representative (USTR) files a Special 301 Report annually which identifies “Priority Foreign Countries,” countries that have inadequate intellectual property laws or have violated trade agreements. These countries may be subject to sanctions or tariffs at the behest of the President of the United States.

Shipper’s Letter of Instruction (SLI)

A document outlining instructions for the freight forwarder. If the freight forwarder is filing through the Automated Export System (AES) on behalf of the exporter, the SLI includes the information they need to complete the filing.

Shipping Documents

Paperwork that accompanies a shipment as it makes its way to the final destination, such as packing lists or bills of lading.

Shipping Solutions

An export documentation and compliance software program that makes creating accurate export documents fast and easy.

SOLAS

Under the Safety of Life at Sea Convention (SOLAS), exporters are required to provide a verified weight of the goods before they are loaded onto a ship for transport.

Sourcing

The procurement of goods or services from a particular entity or country, as well as the business process of vetting potential suppliers to determine which will give the greatest strategic advantage.

Spotting

Placing a container in a position from which it can be loaded or unloaded.

Starboard

The right side of a ship (when facing forward).

Stern

The backside of a ship.

STC

Stands for "said to contain".

Stevedore

Individual or company that employs longshoremen and contracts for the loading and unloading of ships.

Stuffing

Putting cargo into a container.

Supply Chain

A system of interconnected organisations and activities involved in the movement of goods from a supplier to a customer.

Surcharge

An extra or additional charge.

Surtax

An extra or additional tax.

Tare Weight

The weight of a container while empty.

Terminal

A location where containers are picked up, dropped off, maintained and kept.

Terminal Charge

A charge for a service carried out in a carrier’s terminal area.

Third Party Logistics (3PL)

A company that provides logistics services to other companies, such as warehousing and transportation.

TL

Simply stands for trailer load.

Trailer

A container attached to the back end of a truck.

Transshipment

The transfer of cargo from one carrier to another or from one vehicle to another at an intermediate point during the goods’ journey to the final destination.

Truck Tonnage

The weight (in tons) of a shipment transported by truck.

Ullage

The space not filled with liquid in a drum or tank.

Unclaimed Freight

Freight that has not been called for or picked up by the owner or ultimate consignee.

United States-Chile Free Trade Agreement

A free trade agreement between the United States and Chile.

United States-Colombia Trade Promotion Agreement (CTPA)

A free trade agreement between the United States and Colombia. The United States is Colombia’s leading trade partner. Immediately upon implementation, the agreement eliminated 80% of duties on U.S. consumer and industrial exports to Colombia. It also granted duty-free status to a variety of agricultural exports from both countries, including beef, cotton, wheat and certain fruits and vegetables.

United States-Israel Free Trade Agreement

A free trade agreement between the United States and Israel. The agreement reduces or eliminates duties on imports into the United States from Israel and contributed to the U.S. becoming Israel’s top trading partner. It is the only U.S. free trade agreement to not include provisions on intellectual property rights.

United States-Korea Free Trade Agreement

A free trade agreement between the United States and South Korea, officially named the Free Trade Agreement Between the United States of America and the Republic of Korea (KORUS).

United States-Peru Trade Promotion Agreement

Called the PTPA for short, this is a free trade agreement between the United States and Peru that was implemented in February 2009. More than two-thirds of U.S. farm exports to Peru became duty free immediately upon implementation. In addition to commerce, the agreement includes provisions related to intellectual property rights, labor and environmental policies.

UN Number

An internationally recognised four-digit code used to identify dangerous goods.

USPPI

The United States principal party of interest is the party that receives the primary benefit from an export transaction, monetary or otherwise. Usually the seller of the goods.

Value-Added Tax (VAT)

A consumption tax assessed that increases at every point in the supply chain where value is added to it.

Vessel

A seafaring vehicle; a boat or ship.

Vessel Manifest

A document listing details regarding the crew and cargo onboard a vessel.

Vessel Traffic Service (VTS)

A traffic monitoring system used by harbour or port authorities used to monitor ships, similar to air traffic control used to monitor aircraft.

War Risk

Insurance coverage for losses resulting from an act of war.

Warehouse

A place for the storage, consolidation and distribution of cargo. Warehousing is the storage of cargo.

Wharf

A structure built on the shore of a harbour which facilitates the docking of ships.

World Customs Organisation (WCO)

An intergovernmental organisation that plays a role in standardising customs processes across the world.

World Trade Organisation (WTO)

An intergovernmental organisation that regulates and facilitates international trade between countries.

Australia Unveils Critical Minerals Investment Partnership With India

Wed, 13 Apr 2022 13:32:54 GMT

Last month, Australia announced a three-year critical minerals investment partnership with India that will action mutual benefits for both countries from Canberra’s leading critical minerals sector.

This partnership "will encourage strong, strategic supply chain partnerships, including through technical studies,” said Australian High Commissioner Barry O’Farrell.

“…This partnership is the first of its kind, represents a step-change in how countries can work together to support key industries and pursue growth opportunities,” he added.

The Australian government has reportedly allocated $5.8 million to the three-year Australia-India Critical Minerals Investment Partnership, Australia’s Minister for Resources and Water Keith Pitt said in a press statement. “Australia and India are natural partners sharing mutual strategic and economic priorities and this partnership will support further Indian investment in Australian critical minerals projects,” he states.

Pitt also said the combined capabilities of Australia and India will take on the challenge of resourcing the emerging technologies, such as defence, aerospace, automotive, renewable energy, telecommunications, and agritech, used in sectors.

India is expected to become the world’s most populous country within the next two years. Its fast-growing economy will create more trade and investment opportunities, so Pitt expresses the importance of Australia building close ties with India. Australia will work closely with India to identify potential critical minerals investment opportunities, including technical and due diligence exercises that can assist the development of a business case for prospective Indian investment in Australia.

“With our vast quantities of development-ready critical minerals projects and reputation as a reliable trading partner, Australia is a logical choice as India looks to secure its supply chains,” Minister Pitt said.

Canada to Invest $1.6 Billion for Critical Minerals Supply Strategy

Thu, 07 Apr 2022 12:42:37 GMT

Canada's federal budget will include an investment of at least C$2 billion ($1.6 billion) for a strategy to accelerate the production and processing of critical minerals needed for the electric vehicle (EV) battery supply chain.

Prime Minister Justin Trudeau's government, which is due to release its budget on the 7th of April 2022, will make the investment to ramp up the extraction and processing of critical minerals such as nickel, lithium, cobalt and magnesium.

The investment from the Canadian government could be spread over more than a year, but no sources have yet commented on the time frame expected. However, something sources have confirmed on is there are ‘many active conversations’ progressing between the Canadian government and companies ‘on the need to accelerate and scale up the production of raw materials used in EV batteries’.

Canada, which is home to a large mining sector, has a multi-billion-dollar fund set up to invest in green technologies and is trying to involve companies in all levels of the EV supply chain to safeguard the future of its manufacturing heartland in Ontario, as the world seeks to cut carbon emissions.

General Motors Co (GM.N), Ford Motor Co (F.N) and Stellantis NV (STLA.MI) have all announced plans to make electric vehicles at factories in the Canadian province.

The demand for battery minerals could see an increase of almost 500% by the year 2050, according to World Bank estimates.

Currently Asia, and in particular China, dominates the overall global production and processing of critical minerals, rare earths and rare metals used to make EVs.

More on this soon - when we see what Prime Minister Justin Trudeau and his governing body say after today (the expected day for it's announcement).

What is Non Vessel Operating Common Carrier (NVOCC)?

Fri, 01 Apr 2022 13:57:55 GMT

The organisations who regularly deal with the importing and exporting of materials from one point to another often chose freight forwarders for the transportation. The freight forwarders obtain responsibility for the import and export of the material right from the start. Sometimes, the materials being imported or exported take up entire containers and requite various other containers to fit in.

NVOCC leases an existing space in a container and rent or sell it out to their own customers, popularly known as ‘carriers’. They do not own any warehouse but could own a fleet of containers. It is also said that NVOCC agency sometimes can act as a freight forwarder for the customers too.

Keep reading this blog if you want to know what NVOCC stands for, the roles they play in the import/export industry, the types of NVOCC and more.

What is Non Vessel Operating Common Carrier (NVOCC)?

A Non-Vessel Owning Common Carrier (NVOCC) is a special agency or entity that steps in for business owners who do not require the entire container provided by the freight forwarders to ship their material but just a small portion of it. They provide services like stuffing and transporting multiple containers to various desired ports.

NVOCC shipping is done in a way that the chosen agency makes arrangements and signs contracts with ship owners or freight forwarders under their own Bill of Lading (known as the House Bill of Lading) and can act as a single point of contact of those companies who do not require the entire container for their shipment.

Now, if you are wondering what the role of NVOCC is, then we have listed them below for you - check it out.

The Role of Non Vessel Operating Common Carrier (NVOCC) in Shipping Goods

Cost-effective : The most important role of NVOCC is the fact that it is cost-effective. With choosing NVOCC shipping, importer or exporter has to only bear the cost of the container that their product acquires.
Options for transportation : One of the reasons why NVOCC shipping is popular or is advised to certain businesses is because these agencies provide various options for transportation. They usually have ties with various shipping lines so the customer is given options to pick from depending their needs and wants.
Precise instructions : Another advantage to NVOCC shipping is that the communication until the product reaches its required destination, is kept clear and precise to simplify the process as much as possible. The Non-Vessel Owning Common Carrier acts as a single point of communication for both parties with the paperwork at hand and ready to go.

What Types of Non Vessel Operating Common Carrier (NVOCC) Are There?

On-carrier type Non Vessel Owing Common Carrier :

In this type of NVOCC shipping, the agencies chosen have special agents and offices at major transit and this engages in trans-shipment. They are expected to receive the material or products from inland or road carriers and issue the bill of lading. NOTE : This NVOCC shipping does not have any restrictions when it comes to routes.
Carrier Non Vessel Owing Common Carrier :

In this type of NVOCC shipping, the agency accepts the shipment, liability for the consignment, and offers a bill of lading. The carrier non-vessel owning common carrier is not expected to complete the transportation process themselves but deliver the shipment to an actual carrier and receive it once the goods get to their desired location.
Broker Non Vessel Owing Common Carrier :

In this type of NVOCC shipping, the agency gets the shipment from various importers and helps them find a carrier for the materials. They engage in the organisation of transportation, distribution, and options of modes of transportation. This shipping is focused on determining the best route and services, making it perfect for the individual/ small to medium sized business who opts for this NVOCC shipping.

The Process of Non Vessel Operating Common Carrier (NVOCC) Shipping

The NVOCC transports the materials from point A to point B and is considered a one-stop-shop for shippers. They use multiple methods of transportation (such as rail, ocean, and road). Sometimes the shipping agency outsources the warehouse to optimise the asset and issues their own House Bill of Lading. During the shipping process, the agents will make sure that the NVOCC shipping documents are prepared and processed properly, making the process as smooth as possible.

NVOCC shipping often offers personalised services to their clients, which is one of the top advantages that come along with the shipping. The agency often keeps good communication with the locals, which helps them in getting work done faster, and with minimum interruption.

For the charges required for NVOCC, they tend to vary from port to port and shipping lines, as well as distance. Various elements determine the cost of NVOCC shipping.

Are NVOCCs and Freight Forwarders The Same Thing?

Yes, both NVOCC shipping and freight forwarding are quite similar, but there are some basic differences that you need to understand before taking any action. Let’s discuss:

For NVOCC shipping, a House Bill of Lading is issued, and the agencies are permitted to add their profit margins (if required). The NVOCC shipping agency owners have an agreement with shipping lines and the shipper or freight forwarders and often act as a mediator among the two. NOTE : There are no NVOCC acting as an agent for freight forwarder.

For Freight forwarders, the House Bill of Lading is issued according to the International Federation of Freight Forwarders Association documents and are not allowed to add any profit margin to their bill. Although a freight forwarder can add a handling fee and other surcharges required. The freight forwarders represent shippers while dealing with shipping lines. NOTE : A freight forwarder can act as an agent for NVOCC shipping.

What Is Import Duty?

Thu, 17 Mar 2022 11:06:31 GMT

In the UK, there's no specific tax called import duty. However, if you purchase goods from abroad, you might need to pay a number of different taxes and duties, depending on the nature of the goods and where you purchased them from. So here is a quick breakdown of what import duty is, how much it is, how it's calculated, if you need to pay it and if so, how you go about paying it.

What Is Import Duty?

Import duty (also known as customs duty, tariff, import tax or import tariff) is a tax collected on imports and some exports by a country's customs authorities. The goods' value usually dictates the import duty.

For businesses based in Great Britain, Import Duty will apply to goods entering from anywhere outside the UK, and for businesses in Northern Ireland, Import Duty will apply for goods entering from outside the UK and the EU.

In the United States, Customs uses the Harmonised Tariff Schedule (HTS) code to determine the correct rate. For consumers, the price they pay includes duty costs.

How Much Is Import Duty?

The amount you pay in Import Duty depends on whether the item is considered a gift and how much the item is worth. You can receive any goods worth under £135 without paying Import Duty. If you receive a gift valued between £135 and £630, the pay rate is usually 2.5%. If you receive a gift worth more than £630 or anything else worth more than £135, you’ll need to contact HMRC to find out the specific rate.

How Is Import Duty Calculated?

Import Duty is calculated as a percentage of the goods’ total value, which includes both the price paid for the goods themselves and additional costs such as postage, packing, and insurance. Even if you paid for the goods in a foreign currency, Import Duty will be charged in British pounds . HMRC has extensive guidelines for currency conversion and Import Duty, as well as specific rules that outline when you can use a fixed exchange rate .

Do I Need To Pay Import Duty in the UK?

We've broken down the amount you have to pay above but if you're uncertain, visit the GOV website or contact HMRC to see if you have to pay the Import Duty on your goods.

If you do, you’ll be contacted by Royal Mail, Parcelforce or the courier company to pay any VAT, duty or delivery charges (‘handling fees’) to receive your goods. They will send you a bill breaking down exactly which fees you need to pay and when you need to pay them.

How Do You Pay Import Duty?

If you buy goods from abroad, anything you import will have to go through customs checks. Once your goods are received by the relevant authorities, they’ll be checked to determine how much tax or duty you need to pay and whether the products are banned or restricted.

If you’re liable for Import Duty, as mentioned above, you’ll be contacted by the delivery or courier service handling your goods to explain how to pay. You will not be able to receive your goods until you’ve paid the relevant duty and VAT.

However, after Brexit, you can also defer your duties to pay monthly or postpone your VAT rather than paying it immediately. You can find more information about these options contact HMRC or visit the website .

NOTE: As an individual, you must declare goods bought to the UK if they exceed your duty-free allowance or if they are banned or restricted. As a business, you must declare all goods that you bring into the UK to sell to others.

BREXIT: Key Changes to Pharmaceutical Products and Import/Export

Fri, 11 Mar 2022 12:36:35 GMT

On the 1st of September 2020, MHRA laid out the future requirements for placing medicines on the UK market after the end of the Brexit transition period on 31 December 2020. It has come to our attention that many of you are confused or unaware of the changes. So our team are here to work with you to map out the impact on your operations and offer cohesive, practical solutions to assist you with a better transition.

So without further ado, here are the key changes for pharmaceutical products and import/export you need to know about:

Centrally Authorised Market Authorisations (CAP MAs)

CAP Mas will automatically be converted into GB MAs (England, Wales & Scotland) from the 1st of January 2021 onwards, and existing CAPs will remain valid for marketing products in Northern Ireland. Once the required GB MAs are issued, then the MA Holder will have two years (24 months) from the end of transition to submit appropriate amended artwork and a further 12 months (equalling 36 months total) to then transition to releasing stock in packaging that is compliant and has the PLGB Authorisation numbers it.

Parallel Distribution Notices/Parallel Import Licences

Parallel Distribution Notices (PDNs) are no longer be valid in Great Britain (Excluding NI) and are replaced by Parallel Import Licences (PIL) which allow the products to be marketed in Great Britain only.

Responsible Person (Import)

As of the 1st of January 2021, a wholesale dealer in Great Britain (excluding NI) may only import Qualified Person (QP) certified medicines from the European Economic Area (EEA) if certain checks are made by the ‘Responsible Person (import), also known as RPi. The new guidance has given clarity in that products sourced from Northern Ireland to Great Britain for wholesale purposes are permitted under the supervision of a Responsible Person (RP) and therefore do not require an RPi.

Wholesale Distribution Authorisation Holder

New timelines are also included on updating the Wholesale Distribution Authorisation (WDA) and notifying the MHRA on the intention to continue to import from a country which is on the MHRA’s approved country for import list. WDA holders are responsible for notifying MHRA in writing of their intention to continue to import medicinal products from a country on the list, and they must submit a change to their WDA licence before the 1st of January 2023 to list a Responsible Person (import) to carry out those specific functions.

Continuity of Supply

Pharmaceutical MIA and WDA holders now need to familiarise themselves with the revised rules to start preparing their Quality Management System (QMS) and operations for the upcoming changes, ensuring a smooth transition and continuity of their import/export business.

Approved Country for Import List

Responsible Person (import), RPis, are not required if a medicine is imported from an approved country for import list (currently EEA), is not licensed in the UK or the listed country and is intended as special medicinal product or is an I ntroduced Medicine . In these cases, the WDA holder must have notified the MHRA in writing before the 1st of July 2021 of their intention to continue to only import medicinal products from the listed country.

Active Substances

Written confirmation will be required from the 1st of January 2021 for each shipment of Active Substances manufactured in Great Britain , that is exported to the EEA or Northern Ireland (NI).

Export Licence UK: The Essentials You Need To Know

Thu, 03 Mar 2022 11:59:50 GMT

If your business is planning to trade internationally, one of the very first things to do is to check whether you need a licence to export. Not every business needs a licence to send products abroad, but it all depends on the good you want to export and where you’re sending them to.

In this blog, we’ll cover (like the title suggests) all the essentials you need to know about UK export licences, including who needs one and how to apply.

What is an export licence?

These are licences designed to regulate and control certain types of goods entering and leaving the UK borders. This means that businesses planning to export any of the following goods will need to get an official export licence, issued by the UK’s Export Control Organisation (ECO).

Which goods require an export licence?

Animals (livestock) or animal products
Antiques and other goods of cultural significance
Art works
Chemicals
Diamonds
Drugs, medicines or medical devices
Military firearms, ammunition or related equipment
Pesticides
Plants or plant products
Radioactive substances
Vehicles

Other factors to consider when understanding whether or not you need a licence will also depend on the destination the products are going to, and their use once they've arrived at the destination.

What types of UK export licence are there?

If you’re exporting any of the goods listed above, even as a one-off, you’re likely to need an export licence. But there are various different types available to you, they are:

1. Standard Individual Export Licence (SIEL)

A licence for the export of a set quantity of specified goods to a particular importer outside of the UK.

2. Open Individual Export Licence (OIEL)

A licence covering more than one shipment of the listed controlled goods to particular destinations. With this kind of licence, you’re likely to need a trackable record as a licensed exporter to get one.

3. Open General Licence (OGL)

This licence covers the exporting of specific goods to a wider range of destinations. An OGEL is usually used for less restricted and regulated types of goods.

4. European Union General Export Authorisations

These licences are the European equivalent of the national system of Open General Licences (OGLs) issued under export control law specifically designed to licence dual-use exports - goods, software or technology that can be used for either civil or military purposes with which EU has a responsibility for issuing legislation.

How can I check if I need an export licence?

The rules around exporting to other countries outside of the UK can be complicated, especially after Brexit. If you’re planning to export products to the EU, you’ll need to fully understand the latest requirements and regulations. You can find the information and guidance you need about UK export licences on the Government’s website . This includes the type of licences available, restrictions on certain goods and which issuing bodies you’ll need to apply to.

Another way to check if you’re unsure whether you’ll need a licence to export your goods out of the UK, is to visit the Export Control Organisation (ECO) website . There you’ll find the information you need, along with some handy export licence checker tools no other site has.

How can I apply for a UK export licence?

Once you’ve checked the government website and had a look at the export licence checker tools, head to the SPIRE portal . This is the Export Control Organisation’s central online licensing system, where you can apply for the licence you need and attach all documentation required for the process.

What is an EORI number & Do I Need One?

Thu, 24 Feb 2022 14:31:18 GMT

Since Brexit was finalised, rules for import and export trade between Great Britain and the European Union have changed. From the 1st January 2021, all businesses based in Great Britain need an EORI number to import and export goods from or to the EU.

If you're just starting out in the business of import and export trade, then getting your head around EORI numbers can be difficult. Even if you have been trading for years, the way you do trade will likely have changed since January 2021. We want to make it clear that EORI numbers do not need to be complex and once you understand them, they are easy to apply for and use. With this in mind, we've put together the top information you need to know to navigate the new regulations. We cover everything from what an EORI number is, who needs one, how to find the numbers and much more. Keep reading to learn more.

What is an EORI number?

An Economic Operators Registration and Identification Number (EORI number) is a system of unique identification numbers used to help customs identify your business and goods throughout the European Union.

Importers and exporters need to be identifiable and need to be registered for customs and tax purposes. The EORI number consists of the country code of the issuing member state (in Great Britain that would be GB) followed by a code or number that is unique to that member state. In Great Britain the GB is followed by a 12 digit unique number.

Your EORI number will need to be quoted on a number of forms and official documents, so it is important that you understand what it is. Also important to note at this point is that there are different types of EORI numbers issued depending on the country where your business is based and on your VAT classification.

It might seem like yet another hoop to jump through in order to establish an international trade business, but the introduction of your EORI number will actually make trade a lot easier and safer for you and your company. The sole purpose of this system is to properly implement security measures set out by the European Parliament.

Who needs an EORI number?

If you import or export goods between countries, then you will need an EORI number (whether you're a business or an individual trading, you will need to register for an EORI number. Specifically, you will need an EORI number if you trade and move goods between:

Great Britain and any other country
Great Britain and Northern Ireland
Northern Ireland and countries outside the EU
Great Britain and the Channel Islands

You will also need a EORI number if you:

Use customs systems such as CHIEF or ICS NI
Apply for a customs decision
Have appointed someone else to handle customs for you
Make customs declarations

NOTE: You do not need an EORI number to move goods between Northern Ireland and the Republic of Ireland, or send personal parcels and shipments.

An EORI number is for goods only, not for services. For example, if you offer digital services across borders, you will not need an EORI number. However, if your business starts to trade physical goods at any time, you will need to make sure you have registered for an EORI number before your goods reach their intended destination.

Even if your company doesn't normally import and/or export outside of Great Britain, you will still need an EORI number if you plan to trade outside of Great Britain. Make sure you are up to date with what you need and have registered before making the arrangements to move goods.

Is having an EORI number mandatory?

If you import or export goods of any size to another country then an EORI number is absolutely mandatory. NOTE: there are no costs involved in applying for an EORI number, but there are significant costs you will face if you trade without the necessary registration and documents. So make sure you and your business are protected by registering for an EORI number if you don't want any unnecessary additional costs when you import or export goods.

Is an EORI number the same as a VAT number?

No, an EORI number is not the same as a VAT number, but they are linked. When you register for a VAT number, you'll be given the option to register for an EORI number at the same time. Once you have completed this application, HMRC will make sure to link all future imports.

If you already have a VAT number and plan on trading with the EU, then you will need to apply for an EORI number through HMRC. The registration process usually takes a few days so make sure you don’t start trading until the registration has been fully completed. If you do start to move goods without an EORI number, you risk having your goods detained and paying additional expenses like fines, return fees, and storage fees.

Are there different types of EORI numbers?

There are three types of EORI number and the type you need depends on how your business trades and whether or not you are alreadyVAT registered. You can register for an EORI number if you are a:

VAT registered business
Non-VAT registered business and importing
Non-VAT registered business and exporting

Remember, we also mentioned that there are different EORI numbers depending on country. If you are trading out of Great Britain, you will need an EORI number that starts with GB. For trade between Northern Ireland and The Republic of Ireland, you will need an EORI number that starts with XI. So make sure you find out what kind of EORI number you need before registering.

Businesses established in multiple EU countries who import or export from those countries will need to apply for the relevant EORI number from the country where the business is based. This could mean multiple EORI numbers if your company is large and diverse when it comes to moving goods. NOTE: these EORI numbers will not be issued through HMRC and you'll need to follow the correct channels in the necessary country to apply for a particular EORI number.

How can I find my EORI number?

After you have applied for your EORI number, you will receive an email from HMRC with your EORI number in a matter of days. At most, it could take take up to a week to get the EORI number, especially in cases of trade by air (rather than ship), they usually take longer to register and process. So please bear this in mind when registering for your number - remember, you can't trade until you have the correct registrations and documents.

However, before you register, check if your business already has an EORI number. If you are VAT registered, you would have been given a VAT number - this may already be linked to an EORI registration. To check if your VAT number has a linked EORI registration, click HERE .

Do EORI numbers expire?

No, EORI numbers do not expire and you'll only need to apply once per business. The only reason for needing to apply for multiple EORI numbers is if your business expands into other countries and you are required to hold EORI numbers issued in those particular countries.

How do I apply for an EORI number?

Applying for an EORI number is incredibly straightforward now the HMRC have made the process as easy as possible. You will need to fill in an online application form based on the type of EORI number you need. The whole process shouldn't take any longer than 10 minutes provided you have the right information with you at the time of filling the form out.

If you are VAT registered, you'll need to provide the following information:

Full name
Position
Contact details
VAT registration number
VAT registered name
VAT address

If you are not VAT registered and are importing or exporting, you will need to provide:

Business name
Business address
Contact details
Business status
Description of goods being imported (i.e. value and quantity)
Supplier details
Freight or courier agent
Method of import

NOTE: You will also need a government gateway user ID which would have been issued to you when you first registered as a new business. If you don’t already have a one, you can create one when you start the process. Sole traders will also need their national insurance number. You may also need your Unique Taxpayer Reference (UTR) or if your company is registered in the Companies House Register, you will need to provide the start date of your business as well as the Standard Industrial Code (SIC).

Make sure you have all the relevant up-to-date information available when you apply for your EORI number to ensure the application process is as quick and easy as possible. If you skip any information or fill in the wrong details, your application will be rejected, so prep and gather your information before applying .

HMRC Closing CHIEF Customs Platform by March 2023

Thu, 17 Feb 2022 12:58:45 GMT

The government have announced that the old Customs Handling of Import and Export Freight (CHIEF) system will be switched off by the end of March 2023 – exactly three years after originally planned.

The HM Revenue and Customs (HMRC) have worked towards replacing the CHIEF system with a new platform, the Customs Declaration Service (CDS) for years now. In fact, they aimed to turn off CHIEF by March 2020, with CDS originally due to be deployed by January 2019.

Back in August 2018, the government first began the initial phase of its roll-out of CDS, to replace CHIEF for handling import and export freight from outside the country. CHIEF, which had been in place for 25 years at the time, could handle only about 60 million customs declarations a year, but with Brexit , CDS was estimated to handle volumes of up to 255 million declarations annually.

The CDS system was due to become the only system to operate once the UK left the European Union (EU), but it was not ready to handle the large increase in customs declarations expert were anticipating. Instead, the UK government focused on updating CHIEF.

So instead of switching the CHIEF system down, HMRC launched a dual approach, with traders using CHIEF for customs declarations relating to imports in Great Britain, and CDS used for those relating to Northern Ireland until CDS had been scaled to handle the high volume of declarations expected.

The government now feel confident that CDS can be rolled out completely, and have organised to close the CHIEF system in two separate stages. On the 30th of September 2022, import declarations on the system will close, and by 31st March 2023, export declarations will close. The CDS has been described as “a key part of the government’s plans for a world-leading fully digitised border that will help UK businesses to trade and to prosper” and "this announcement will provide clarity for traders and the border industry. We are committed to making the switch-over as smooth as possible and are working to ensure traders are fully supported with the new processes.”

The focus on upgrading CHIEF, rather than focusing on the functionality of CDS, led to further costs and time, and was heavily criticised. But despite the issues of criticism, HMRC remained firm that the CDS would be ready by the time the UK left the EU, but as the date loomed, it became clear this was not going to be the case.

In November 2020, it was discovered that functionality of the CDS remained “unproven” and that HMRC was taking a “ cloak-and-dagger approach ”. Originally, the plan was that when the software for CDS was delivered at the beginning of 2020, so it could be tested out throughout the remainder of the year, and be rolled out to customers in the expected timeframe. However, it was then mandated that CDS would be the standard system used for Northern Ireland because it complied with the Unified Customs Code .

One of the key issues found at this time was that software suppliers, which needed to ensure traders had the right software in place to comply with CDS, did not have enough time to build, test and roll out the software to their customers.

Time will tell... let's wait and see if the government are able to stick to the dates announced - 30th September & 31st March 2023. We will keep you updated to the best of our ability.

7 Things to Know Before Shipping Pharmaceuticals Globally

Thu, 10 Feb 2022 12:04:39 GMT

Shipping pharmaceuticals and medical equipment are more common now than ever before, with the Covid-19 pandemic over the last 2 years. Whether you manufacture medicine, operate a medical storage facility, or a have mail-order pharmaceutical company, you are shipping medications and equipment that is life-saving and potentially more fragile than anything else being transported.

It's important to understand that shipping these kinds of goods requires more than just putting something in an envelope or a box and calling a typical shipping provider. You must use specific medical logistics shipping solutions to make sure your pharmaceuticals get to the right destination and are in good condition.

With this in mind, we've put together the key points associated with the successful shipping of pharmaceuticals across the world. Without further ado, here are seven things you should know before shipping pharmaceuticals globally.

Understand the Laws

Pharmaceuticals can be chemicals, prescriptions, machinery, or human organs and fluid. Much like products such as alcohol and perfumes, these items can be considered dangerous substances. Therefore, they are various different laws concerning such shipments that you need to know before you start shipping. So before determining how you can ship and what you need to do to protect your shipment, make sure you know the laws and your shipping process follows them at all times. Click HERE to learn more about the laws associated with pharmaceutical shipments.

Have the Correct Licensing

On the same lines as knowing the law, you must ensure the proper licensing is in place for shipping pharmaceutical goods to your chosen location(s). There are particular licensing requirements to participate in shipping pharmaceuticals. To learn more about the licensing you will need, click HERE .

Be in Control of the Temperature

These kinds of products can easily be damaged during shipment, especially if they are going from one climate to another. That is why many pharmaceutical products are stored in temperature-controlled environments. If they are held in too warm or too cold of a temperature, the product can be altered to the point they can cause harm instead of helping patients.

All of this is necessary to understand because shipping these products must be held at the same temperature needed for storage. Shipping can last a few days, and any extended period in a temperature that is not beneficial to the pharmaceutical product can alter the chemical makeup of the product - the exact opposite of what you want. NOTE: Pharmaceuticals that have an altered can lead to things like medical malpractice claims, death, and other legal charges that can have a negative impact on your company.

Use Thermal Pallet Covers

Now that you know pharmaceuticals should be shipped in temperature-controlled containers, how else can you protect the products you are transporting to another country? An additional form of protection used within shipping containers is the use of Thermal pallet covers. The goal is to protect the products from several issues such as:

environmental elements (such as sunlight, rain, snow etc)
movement and spilling in shipping
temperature changes and humidity

Thermal pallets are an excellent way to add stability in a reasonably cost-effective manner, protecting the products and providing extra insurance.

Select the Right Shipping Container

During the shipment process, packages can shift. However, if the pharmaceutical products you're transporting shift, the chemical reactions of the products may be altered, or the equipment may break. Either way, it is a costly and dangerous error when anything happens to pharmaceutical products during shipment. Consequently, your packaging matters. Pharmaceuticals MUST be appropriately fitted into their containers.

Many products require unique packaging options, including individual compartments, ice, added light, extreme dark, and more. So, look into the requirements of the goods you're transporting before they go out.

Documentation is ALWAYS important

As with any business transaction, documentation is a critical part of the process. Having all the right documentation to hand helps to prove the shipment you put together went out unaltered, was packaged properly, and went through the proper protocols. If the package arrives in an altered state (for whatever reason), you may be able to avoid any legal action against you, or even file your own claim because you followed all of the required protocols and you have the proof. Some ways to document your shipment and process may include:

Having papers or an electronic footprint of names and signatures of everyone that comes in contact with the shipment
Taking photos of the shipment before packaging
Taking photos of every stage of preparation for shipment
Taking pictures of the temperature gages at several points throughout the process
Taking photos of ALL drivers' or pilots' licensing who are involved in the transportation of the goods
Taking photos of the final delivery
Ask the recipient of the delivery to sign for the product and take photos of their ID

Make Sure You Are Insured

It is essential to protect yourself, your business, and your shipment. So like any other business, you must make sure you have the right insurance policies in place. Shipping pharmaceuticals has its risks, so make sure you protect yourself.

If you do everything correctly and follow everything recommended in this blog, you will show that you followed the industry standards to attempt to avoid any loss. As a result, you should be able to use insurance to help alleviate the financial damage that may occur during the shipment process. Think about it, you wouldn't ship electronics, expensive jewellery, or any other shipment worth a lot of money without buying insurance. So why would you risk transporting pharmaceuticals without insurance?

In Conclusion

When shipping pharmaceutical products, it is essential to know what you are doing, what the rules are and how you can protect yourself and your shipment from damage. Damage can come in many different forms and can be unpredictable sometimes. However, damage to pharmaceuticals can do more than harm the delivery. Extra caution is necessary to protect the products being transported and you as a business.

Top 5 Facts You Didn't Know About Wind Power

Thu, 27 Jan 2022 13:43:52 GMT

Wind energy is one of the most popular forms of alternative energy and accounts for a significant amount of new energy plants built across the world. With their increasing popularity and the rise of offshore wind farming, wind energy is playing a key component in the switch from fossil fuels to renewable energy. To help you understand the benefits of wind energy, here are just 5 things you probably didn’t know:

1. Wind energy was first developed in 200 BC in Persia and China

Windmills have been in use since 200 B.C. and were first developed in, that's right, Persia and China. Ancient mariners sailed to distant lands by making use of winds. Farmers used wind power to pump water and for grinding grains. Today, the most popular use of wind energy is converting it to electrical energy to meet the critical energy needs worldwide.

2. Wind turbines are BIG

Okay, maybe you read that one and thought "give me a break, of course I know they're big"... but do you know just how big!? The blades on a wind turbine typically average almost 200 feet long, and turbine towers average 295 feet tall—to compare, that's about the height of the Statue of Liberty. The largest turbines can harness enough energy to power 600 American homes . How incredible is that!?

3. Wind turbines contain more components than windmills

Today’s wind turbines are much more complicated machines than the traditional prairie windmill. In fact, a wind turbine contains as many as 8,000 different components .

4. Britain has one of the biggest offshore wind farms

The UK has the largest offshore wind farm in the world, which is located just off the coast of Yorkshire. With that, the employment in offshore wind in the UK has increased significantly since 2015, with 7,200 full-time equivalent (FTE) employees in 2019. We're in 2022 now - we know that number has gone up A LOT! More energy and more jobs - win, win situation! if you want to learn more about the biggest wind farms around the world, click HERE .

5. Wind energy is affordable

According to the latest from Lazard, wind power was 71% cheaper in 2020 than in 2009 and the cost of solar energy dropped by an astounding 90%. Our resource tells us that, in many cases, getting energy from new wind turbines is now cheaper than getting energy from existing coal and gas plants.

What can you take away from this blog?

The demand for renewable energy is on the top of most, if not all, industry leading companies to save the planet. One of the most sought renewable energy sources is, without a doubt, wind energy, which now boasts around 350,000 wind turbines globally . Embracing environmentally sustainable sources of energy, and using wind energy is expected to rise more in the coming years. Without a doubt, most countries will rely on wind power and reduce fossil energy dependence tenfold.

What's the Difference Between Bio-based, Recyclable, Biodegradable?

Fri, 21 Jan 2022 16:07:02 GMT

With sustainability high on the leading companies in every industry's agenda and technology advancing faster than ever before, the world of plastics is truly changing. Plastic waste has become a global concern, with 381 million tonnes of plastic being produced yearly – and this figure is set to double by the year 2034. Researchers estimate that more than 8.3 billion tonnes of plastic has been produced since the early 1950s , and about 60% of that plastic has ended up in either a landfill or the natural environment (the sea, woodland, forest etc).

But what about the new and more sustainable plastics companies are creating – will they help us tackle the plastic waste problem we're facing globally? Well this leads on to a great discussion about the different types of new plastics being produced. You've probably come across terms like bio-based, biodegradable or recyclable plastics, but do you know what they actually mean, and how can they help us achieve the sustainability targets leaders have set? We will take you through some of the most common terms associated with sustainable plastics and uncover the facts behind each one. Keep reading to learn more.

Bio-based

Plastics that are bio-based are partially (or completely) made from material that has been produced from biomass instead of fossil-based raw materials. Biomass is renewable organic material that comes from plants and animals.

Biomass sources for energy include :

Wood and wood processing wastes (firewood, wood pellets, and wood chips, lumber and furniture mill sawdust and waste, and black liquor from pulp and paper mills).
Biogenic materials in municipal solid waste (paper, cotton, and wool products, and food, yard, and wood wastes)
Animal manure and human sewage
Agricultural crops and waste materials (corn, soybeans, sugar cane, switchgrass, woody plants, and algae, and crop and food processing residues)

A cc ording to the Institute for Bioplastics and Biocomposites (IfBB ), 2.61 million tons of bio-based plastics were produced worldwide in 2018 - that's just less than 1% of the global plastic market. As the demand for plastics continue to grow, so does the demand for more sustainable plastics solutions. The conventional fossil-based plastic can be replaced with the bio-based equivalent. This can help reduce the carbon footprint of the end product while the other characteristics of the product – like its durability and recyclability – will remain the same.

A common type of biodegradable bio-based plastic you may have heard of is Polyhydroxyalkanoate or PHA -which is currently used to make packaging and bottles. It's produced by industrial fermentation when certain bacteria are fed sugar or fat from feedstocks such as sugar cane, corn or vegetable oil. But unwanted byproducts, such as waste cooking oil that remain after sugar manufacturing, could be used as an alternative feedstock .

Bio-based PET is a biomass-derived fully recyclable, biodegradable, compostable, and renewable bioplastic material, that is composed of 30% plant-derived ethanol glycol and 70% fossil-derived terephthalic acid (TPA). Bio-based PET is used in many products such as bottles, car interiors and electronics . As the customer demand for more sustainable plastics increases, the market for this plastic is expected to grow by 10.8% by the year 2024 .

Recyclable

If plastic is recyclable, it means that it can be reprocessed and turned into other useful products. Several types of conventional plastics can be recycled mechanically – the most common type of recycling. But the first global analysis of plastic waste ever generated found that only 9% of plastic has been recycled since the material started being produced in the last 60 years or so.

What are the different types of recycling?

There are two main ways of recycling plastic, that we will discuss below, and they are mechanical and chemical.

Mechanical recycling involves shredding and melting down plastic waste and turning it into pellets. These pellets are then used as a raw material to make new things. Plastic quality often deteriorates during this process, meaning a piece of plastic can only be mechanically recycled a limited amount of times before it is no longer suitable. New plastic, also known as ‘virgin plastic’, is therefore often mixed with recycled plastic before it is turned into a new product to make sure its at the desired level of quality.

Chemical recycling is the term used to describe a range of technologies in the waste management industry which allow plastics to be recycled, that are difficult or uneconomic to recycle mechanically. By turning plastic waste back into base chemicals and chemical feedstocks, chemical recycling has the potential to improve recycling rates and divert plastic waste from landfill or incineration.

One of the main benefits of chemical recycling is that it is an upgrading process in which a plastic’s quality doesn’t degrade once processed unlike during mechanical recycling. The resulting plastic can be used to make a wide range of products including food containers and items for medical and healthcare uses where there are strict product safety requirements.

Biodegradable

If a plastic is biodegradable , it means that it can undergo decomposition and when in contact with specific bacteria or microbes – turning it into water, biomass and carbon dioxide, or methane, depending on whether its in aerobic or anaerobic conditions. Although most biodegradable plastics are bio-based, some biodegradable plastics are made from fossil oil based feedstock.

The term biodegradable is quite ambiguous since it doesn't specify a timescale or environment for the decomposition of the plastics. Most plastics, even the non-biodegradable ones, will degrade eventually - given enough time - for example a few hundred years. They will break down into smaller pieces that can be invisible to the human eye, but remain present as micro-plastics. In contrast, most biodegradable plastics will biodegrade into CO2, water and biomass if they are given the adequate time and are under specific environmental conditions. It is advised that detailed information about how long a plastic takes to biodegrade, the level of biodegradation and required conditions should be provided to better evaluate its credentials.

Compostable – a type of biodegradable plastic

Compostable plastic is a subset of biodegradable plastic. Under the right composting conditions, it is broken down by microbes into CO2, water and biomass. For plastic to be certified as compostable, it must meet certain standards . For example the requirements in Europe are 90% of the plastic must decompose into fragments less than 2mm in size in controlled conditions in 12 weeks . It must also contain low levels of heavy metals so that it doesn’t harm soil. Compostable plastics need to be sent to an industrial facility where specific conditions like heat and humidity are applied in order to ensure degradation.

Polybutylene Adipate Terephthalate (PBAT) is a fossil feedstock based polymer that is used to make organic waste bags, disposable cups and packaging film and is biodegradable in composting plants. Plastic that breaks down in open environments such as in household compost heaps is typically hard to make.

Polyhydroxyalkanoates (PHAs) fit the bill but are not widely used since they are expensive to produce and the process is slow and difficult to scale. However specialists have been working on improving this by using a novel chemical catalyst – a substance that helps increase the rate of a chemical reaction.

Evian Will Use 100% Recycled Plastic By 2025

Fri, 14 Jan 2022 11:09:04 GMT

Evian, which is owned by French food and drinks firm Danone, unveiled back in 2018 a new goal to become a 100% circular brand by 2025. Not only does this goal entail producing bottles from 100% recycled plastic, but it also ensures work to be done with the waste management sector to deliver a zero-plastic bottle waste ambition.

That’s right - Evian is committed to becoming a 100% circular brand through pioneering partnerships to redesign its packaging, accelerate recycling initiatives, drive sustainable innovations and recover plastic waste from nature.

Today, all Evian bottles are already designed for circularity, meaning they are 100% recyclable and contain on average 30% recycled Polyethylene terephthalate (rPET) .

Why does it matter?

Popular brands like Evian need to take a leadership role in changing the reality of plastic. They have a level of accountability and responsibility to put into action measurements like this. As part of the Evian commitment to become a circular brand by 2025, Evian, knowing that it cannot work alone, has called for collaboration across industries and beyond to achieve a sustainable, large-scale change in plastic usage and waste management. The Ellen MacArthur Foundation, Veolia and Loop Industries are just some of the companies the bottle producers will work with to realise the circular ambition. Now, that’s what we call taking action.

This comes after the shocking announcement from The Ellen MacArthur Foundation , that there could be more plastic in our oceans than fish by the year 2050 - and the UK Government and the European Union have since launched immense strategies to eliminate the plastic waste by as soon as 2030.

The company’s global brand director, Patricia Oliva, states "Evian will drive a step-change to address the critical issue of plastic…We want to use the power of our global brand to take a leadership position, drive collaboration across the industry and, together with partners, transform our approach to plastic. We're committed to move the mindset of today's generation from 'we can' to 'we do'."

It’s refreshing to see big companies are taking action before it’s too late. We’re so much closer to becoming sustainable worldwide - onwards and upwards for the next few years. We will keep you updated.

PlasticsEurope calls for mandatory 30% recycling target in 2030

Fri, 07 Jan 2022 13:27:21 GMT

The European plastics industry have taken the crucial first step in moving away from virgin plastics towards a circular economy, supporting the Commission’s proposal for a mandatory 30% recycled content in plastics packaging by 2030. And it has been argued that ramping up chemical recycling would be essential to achieving this and planned investments in this move - ranging from €2.6bn by 2025 to €7.2bn by 2030 .

The president of PlasticsEurope, Markus Steilemann states: “The call for a regulated recycled content target for plastics packaging in the EU demonstrates our commitment to accelerate the transformation to a circular economy, helping implement the EU Green Deal and Circular Economy Action Plan.” He also said recycled content should be judged through a technology-neutral approach that includes both chemical and mechanical recycling.

The managing director of PlasticsEurope, Virginia Janssens, said: “We need a harmonised EU policy framework that provides certainty and incentivises further investment in collection, sorting and recycling infrastructure and technologies, including chemical recycling.” This means the 30% target for recycled content in plastic packaging must be completely in line with the EU’s 55% target for recycled plastic packaging in order for it to be successful.

The key importance now is to strengthen the collaboration between the key partners in the packaging market. 2030 is only a few years away, and the infrastructure and approvals need to be fully in place soon.

The UK is making moves in the right direction and is i ntroducing a tax on plastic packaging without at least 30% recycled content in April 2022 . The tax will apply to plastic packaging manufactured in, or imported into, the UK where the plastic used in its manufacture is less than 30% recycled. The rate of the tax will be £200 per metric tonne of plastic packaging, encouraging the use of recycled rather than new plastic within plastic packaging. It is hoped that this will, in turn, stimulate increased levels of recycling and collection of plastic waste, diverting it away from landfill or incineration. To learn more about the Introduction of Plastic Packaging Tax from April 2022, click HERE .

No single government, company or industry can develop a recycling industry on its own. PlasticsEurope’s commitment is a critical first step. Now we need others to step up to the plate, in an alliance.

Top five gold mining countries of Africa from Ghana to Burkina Faso

Sun, 16 May 2021 19:43:48 GMT

Africa's gold mining industry — traditionally dominated by South Africa — has shifted focus with countries such as Ghana, Mali and Burkina Faso entering the fray

Africa’s gold mining industry — traditionally dominated by South Africa — has seen a shift in focus with countries such as Ghana, Suda, Mali, and Burkina Faso entering the fray.

Major companies such as Newmont Goldcorp, Kinross Gold, AngloGold Ashanti, Barrick Gold and Gold Fields are active in the region, alongside controversial artisanal miners, who are especially active in Ghana, Mali and Burkina Faso.

Top five gold mining countries of Africa

From Ghana to Burkina Faso we profile the leading gold producers across the African continent.

1. Ghana – 142.4 tonnes

One of the Dark Continent’s top gold mining countries, Ghana grabbed the top spot from South Africa after mining more than 142 metric tonnes of the precious metal in 2019.

While traditional companies and artisanal miners contributing to Ghana’s gold production, some of the largest include Kinross Gold (Chirano mine), Newmont Goldcorp (Akyem and Ahafo mines), AngloGold Ashanti (Obuasi and Iduapriem mines), Gold Fields (works the Tarkwa gold mine) and Asanko Gold (Asanko mine).

The minerals mined in Ghana account for 37% of the country’s total exports, with gold comprising 90% of total mineral exports. Miningglobal.com estimates Ghana’s gold reserves to be 1,000 metric tonnes.

2. South Africa – 118.2 tonnes

Declining gold ore grades in South Africa over the past eight decades have seen the country lose its African top spot to Ghana. In 2019, gold production fell to 118 metric tonnes from 137 metric tonnes in the previous year.New Paragraph

Table Mountain, Cape Town, South Africa

The Witwatersrand Basin, an underground geological formation in South Africa, holds one of the largest gold placer deposits in the world. Top gold mines in the country include South Deep (the largest gold mine in the world in terms of reserves and currently owned by Harmony Gold), Mponeng (operated by AngloGold Ashanti and the deepest mine in the world) and Driefontein (owned by Sibanye-Stillwater). South Africa’s oldest mine, Kromdraai, is a currently a huge tourist attraction.

Despite diminishing gold reserves, South Africa is still estimated to possess 6,000 metric tonnes (second-largest in the world), according to 2018 MiningGlobal data.

3. Sudan – 76.6 tonnes

The north-east African country of Sudan comes third in this list with gold production of more than 76 metric tonnes in 2019. This was, however, a big drop from the 93 tonnes produced the previous year and the 107 tonnes in 2017. The Sudanese government, however, claims annual gold production in the range of 120-200 tonnes.

Hassai open pit mine, in the Red Sea Hills desert of north-eastern Sudan, began operations in 1992

For years one of Africa’s top gold producing countries, Sudanese gold is found in the Eriab region of the Nuba mountains, along the alluvial regions of the Nile River and quartz vein formations in Obaidiya, Blue Nile region and North Kurdufan.

Africa’s third-largest country by area, Sudan’s gold mines include Hassai gold mine (owned by Sudan’s Ariab Mining Company and Canada’s La Mancha Resources) and Block 14 open pit mine project (operated by Canada’s Orca Gold).

4. Mali – 71.1 tonnes

The north-west African country of Mali produced more than 71 metric tonnes of gold in 2019, a sizeable jump from the 61.2 tonnes in 2018 — placing it fourth in our list of the continent’s top gold producers. Mali’s gold mining operations not only involve large mining companies, but also artisanal miners, who have also produced a sizeable chunk of gold and made a significant contribution to the country’s economy.

Gold mine tunnel

Its gold mines include Morila (managed by Government of Mali, AngloGold Ashanti and Barrick Gold), Sadiola (managed by Government of Mali, AngloGold Ashanti and LamGold), Loulo-Gounkoto (managed by Barrick Gold) and Yatela (managed by Government of Mali, AngloGold Ashanti and LamGold).

Mali is estimated to have 800 metric tonnes of gold reserves, according to Norwegian website Eiti.org.

5. Burkina Faso – 62 tonnes

Burkina Faso’s 62 metric tonnes of gold produced in 2019 places it in fifth position in our list. Said to have one of the most dynamic mining sectors in West Africa, Burkina Faso ‘s other major resources are copper, zinc, limestone, manganese and phosphate.

The country’s gold mines include Kalsaka (operated by Banlaw Africa Limited), Youga (jointly operated by Government of Burkina Faso and Etruscan Resource), Karma (operated by Endeavour Mining), Mana (operated by Semafo), Yaramoko (operated by Roxgold), Taparko-Boroum (owned and operated by Société des Mines de Taparko SA), Essakane (operated by IAMGOLD), and Inata (jointly operated by the Government of Burkina Faso and Avocet).

Burkina Faso’s gold reserves are estimated to be about 154 metric tonnes, according to Eiti.org.