PROSECCO SHIPMENTS AT AN ALL-TIME HIGH

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Barry Haynes
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PROSECCO SHIPMENTS AT AN ALL-TIME HIGH JF Hillebrand handled a record number of shipments into the UK in the pre-christmas period, whilst at the same time delivering an even better service in terms

The demand was such that one of the biggest challenges was for the Prosecco suppliers to physically be able to load all the orders to the timings demanded by their customers, requiring a high level

1 PROSECCO SHIPMENTS AT AN ALL-TIME HIGH JF Hillebrand handled a record number of shipments into the UK in the pre-christmas period, whilst at the same time delivering an even better service in terms of on-time deliveries. One of the stand-outs was the quantity of Prosecco, over 18 million bottles, handled by JF Hillebrand in the last three months of the year. The demand was such that one of the biggest challenges was for the Prosecco suppliers to physically be able to load all the orders to the timings demanded by their customers, requiring a high level of flexibility and resourcefulness from JF Hillebrand in the positioning of vehicles for loading and the routing to UK in order to meet required delivery dates. And the demand has not abated, even as we head into 2016, which is something for shippers to bear in mind in the run-up to future peak demand periods, with the recommendation to build extra time into the stock build. Hic!

2 ARC NUMBERS WE NEED YOUR HELP One of the trends we have seen in 2015 is increased enforcement by HM Revenue & Customs of the EMCS regulations, especially in regard to the requirement for drivers carrying details of the ARC number on Duty Suspended consignments in transit. What does this mean? Under the Europe-wide EMCS system, all Excise Duty Suspended movements within the EU must move under an electronic ead Customs control. Each ead has a unique ARC number. Because by its nature the ead is an electronic transaction between the despatch and receiving warehouse and invariably we as the transporter are not a party to this electronic transaction, then unless the Supplier prints a copy of the ead and hands it to the collecting driver, we would not have sight of the contents. However, irrespective of whether we are a Party to the ead transaction, we are obligated to be able to produce the ARC number wherever the vehicle is stopped on route by the Customs authorities. The receiving warehouse also requires to know the ARC number, in order to accurately identify the arriving consignment and receipt the ead. The purpose of adding this item to our newsletter is to ask you, our clients, to support our message to your European Suppliers that we have this obligation to travel with the ARC number and therefore even if JF Hillebrand is not a Party to the ead transaction, the Supplier on loading a consignment with us must provide the ARC number to JF Hillebrand s office and the collecting driver. Orders travelling without the ARC number are at risk of Customs seizure on route, and we have seen some (thankfully few) instances where this has happened, causing delay and additional cost for all involved. By capturing the ARC number in our system, we also avoid any undue delay at the delivery warehouse, for the warehouse to identify and receipt the consignment into the EMCS system. Working together as Customer, Supplier and Transporter on this Regulatory requirement, we can avoid disruption to movement of your orders in transit to the UK.

3 THE ALCOHOL REGISTRATION SCHEME (AWRS) The registration period for the UK Alcohol Wholesaler Registration Scheme (AWRS) is now open. All UKbased businesses that are trading as an alcohol wholesaler (i.e. those who undertake B2B duty paid sales) must apply for AWRS approval during the 3-month application window (01 January to 31 March 2016). It is not entirely clear as to the consequences for traders who miss the March 31st deadline, but our recommendation is to avoid any delay in making your application and that if you are in any doubt as to whether this requirement applies to your Business, apply. Even JF Hillebrand is having to apply, so as to cover for instances such as the disposal of stock on behalf of customers or Insurers. We understand HMRC will be processing applications ahead of the implementation date of 1st April 2017, at which point if you sell alcohol to another Business you will need to be registered. If you are buying alcohol to sell from a UK wholesaler you will need to check they are registered. We will also be required by HMRC to exercise due diligence in checking our customers are compliant with the Customs regulations and so are already routinely establishing with our customers that they have applied for registration or intend to do so. If you have any questions or require more information about AWRS, please feel free to contact JF Hillebrand or go to

THE SAFETY OF LIFE AT SEA (SOLAS) With effect from 1 July 2016, there will be a legal requirement for shippers to verify the gross weight (verified gross mass, or VGM) of a container when making a

4 THE SAFETY OF LIFE AT SEA (SOLAS) With effect from 1 July 2016, there will be a legal requirement for shippers to verify the gross weight (verified gross mass, or VGM) of a container when making a vessel booking onto a ship. This might be seen as obvious, but there have been numerous recorded instances of ships being lost at sea due to destabilising as a consequence of the mis-declaration - even wilfully - of cargo weights. An example was the MSC Napoli, which sank of the east Devon coast in 2008 and became the second most expensive wreck in maritime history. In this instance, there was thankfully no loss of life. Since JF Hillebrand is normally the Party contracting with the Shipping Line for space on a given ship, we are deemed to be the shipper, responsible for correctly declaring the gross container weight (equipment and contents). Clearly for JF Hillebrand to accurately declare the gross weight, we rely on the exporter to provide an accurate consignment weight. JF Hillebrand is in the process of making any necessary system changes to enable us to capture, record and declare the gross weight in our vessel booking to the Carrier. Rather than wait for the new requirements to come into force, we are already beginning to routinely establish from the exporter the consignment weight for each shipment so we can calculate and declare the gross weight. We are also registering locally around the World as a Certified VGM declarer, so we are authorised to make the VGM declaration. If you are using JF Hillebrand to transport your exports from UK, what this new regulation means is that you will need to be precise and exact in your declaration of the consignment weight to us (exact weight of the cases and the pallets). If you are importing from abroad you should be aware in case of questions from your suppliers as to why JF Hillebrand is more rigorously requiring detailed and accurate consignment weight information.

5 USA - PORT OF OAKLAND UPDATE Despite last summer s resolution to the port labour dispute on the US West Coast, container flows at the Port of Oakland, the main port for the USA wine export industry, continue to face congestion and delays in the first quarter this year. Delays getting into the Port have persisted due to new chassis inspection provisions, additional trips to collect the appropriate chassis for matching terminal container pickups and deliveries, followed by longer lines as two of the terminals closed for two months for upgrades. Those longer turn times will not be improving in the short-term as the second largest terminal, Ports America Outer Harbor Terminal (OHT), announced in mid-january that it would be exiting its 50-year lease in March 2016 after just 7 years. This announcement gives the industry just 30 days to start shifting cargo to other terminals. OHT handled about 448,000 TEU in 2015, or roughly 20% of the port s volumes, according to a recent article in the American Shipper. JF Hillebrand is working with its service partners and the wine Suppliers to minimize the risk of disruption to shipments out of California and is sharing the above information on a need-to-know basis only.

6 LONDON WINE FAIR TUESDAY MAY 3RD-THURSDAY MAY 5TH We always look forward to London Wine Trade Fair week and will be back in the JF Hillebrand Lounge, located upstairs in the Hand & Flower public house, just across the road from Olympia. This quiet, informal space provides the perfect setting for business discussions. We ll be open for from 09:00 until 17:00 every day of the Fair. Continental breakfast will be available from 09:00 until 10:00 and a buffet lunch between midday and 14:00 on each day of the Fair. Meeting room by day entertainment venue by night book early to avoid disappointment! Tuesday, May 3rd JF Hillebrand presents The Fringe at the Fair an evening of comedy and magic, the highlight of which will be highly acclaimed Victorian time-travelling magic duo, Morgan & West www. morganandwest.co.uk Weds May 4th - The great JF Hillebrand Pub Quiz Night once again hosted by our esteemed friend and colleague Chris Porter Both evenings begin at 7pm with light supper and drinks provided. These events were very popular last year so if you would like to put in a team for the Quiz Night or book a table for the comedy night

Porter & Laker are proud to continue supporting the Wine and Spirit Education Trust, and present the winner with her prize of 850 and 1

7 PORTER & LAKER AWARD We were delighted to announce that the winner of the Porter &Laker award this year was Kate Miller of Independent Wine Merchant Bin Two based in Padstow, Cornwall. Porter & Laker are proud to continue supporting the Wine and Spirit Education Trust, and present the winner with her prize of 850 and 1 year s membership to The Benevolent for her company Bin Two. JF Hillebrand UK Dissegna House, Weston Avenue, West Thurrock, Essex RM20 3ZP T F WWW. JFHILLEBRAND.COM JF Hillebrand Group February 2016

SOLAS VGM UPDATE. June 22, 2016 Page 1 of 8. organizations involved. 1. IMO is a specialized agency of the United Nations

SOLAS VGM UPDATE. June 22, 2016 Page 1 of 8. organizations involved. 1. IMO is a specialized agency of the United Nations June 22, 2016 Page 1 of 8 1. IMO is a specialized agency of the United Nations 2. International Chamber of Shipping & The World Shipping Council combined efforts and published a document on the problems