Sitpro: The Cost of Paper in The Supply Chain: "Project Hermes" Perishable Foods Sector Research Report

SITPRO
Simplifying International Trade
The Cost of Paper in the Supply Chain: Project Hermes Perishable Foods Sector Research Report
1. Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.1 Study aims and objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2 Study approach and methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.3 Specific research commodity range . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3. The Perishable Food Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.2 The core product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.3 Supply chain participants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.4 Size of industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.5 Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 3.6 Perishable food supply chain structure in brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 3.7 The market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.8 Costs and charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3.9 Documentation overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 3.10 Paper wastage and the environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 4. Industry Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4.1 UK Perishable Food Imports 2005 - Total 25,960 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4.2 UK Perishable Food Exports 2005 - Total 10,761 million . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4.3 UK Imports - Agriculture and Food (Source: World Trade Organisation Trade Statistics 2005) . . . . . . . . . 16 4.4 UK Exports - Agriculture and Food (Source: World Trade Organisation Trade Statistics 2005). . . . . . . . . . 16 5. Myth vs Reality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 5.1 General administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 5.2 Export . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 5.3 Import . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 6. UK Government Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 7. The Cost of Doing Business in the UK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 7.1 Costs - Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 8. Quoted statistics and examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 9. Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 10. Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 10a. Import Procedures and Documentation - an outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 10b. Export Procedures and Documentation - an outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 10c. Transit Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 10d. Duty Relief Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 10e. Statistic Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 10f. World Bank: Doing Business 2007 Extract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 11. Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
SITPRO: The Cost of Paper in the Supply Chain
1. Executive Summary
The objective of this report is to assemble a set of data to describe and value some of the main issues which arise out of using the current documentation processes and the impact on upon both the industry and the government departments concerned with regulating the import and export of perishable goods. This is a substantial sector of the economy, with the core perishable market GDP for imports/exports worth over 36 billion, and creating considerable employment and revenue generation in the retail and catering sectors. In the initial approach to the study it was determined that an attempt should be made to explore the collection of primary data where that would add to the existing body of knowledge on the perishable food supply chain. In particular, in order to be able to make an estimate of the cost to the industry and to then quantify the significance of the introduction of standards-driven e-documentation and single source electronic data management, it would be necessary to review and collect documentary and financial information on sectors of the industry for which little published information was available. Our research revealed, perhaps for the first time, the underlying cost of paper documentation to the UK perishable food supply chain. The most significant factors we managed to establish in our chosen commodity sectors were:
The volume of paper in the perishable food supply chain from start to finish: it is estimated that the UK import perishable food supply chain generates 1 billion pieces of paper annually; The amount of duplication: duplicate consignment data is keyed in at least 189 million times every year; Over 90% of the paper documentation used in the perishable food supply chain is destroyed; The cost of document-related administration in the sector of the perishable food supply chain we investigated is
estimated to be around 11% of the supply chain value per annum;

No one party in the supply chain sees or manages the whole movement. Some activities, transactions and
costs are invisible or hidden to participants;

The cost of delayed, incorrect or missing paperwork costs a little over 1 billion per annum for the sectors
studied;
The total cost of generating paper documentation for the perishable sectors studied (4.5 million document sets)
is estimated at 126 million per annum;

The cost issues associated with paper documentation results in the consumer paying considerably more for the
products than is necessary at the point of purchase.
The bulk of the costs were initially invisible, wrapped up in the day-to-day processes that are part of the export and, in particular, the import processes and procedures. The cost of generation, printing, administration, collection and delivery, entering data from the documentation and obtaining certificates, copy documents, telephone calls, e-mails and general verification exact a heavy burden on business and competent authorities. Few operatives appreciate the true cost of deferment, for example, in interest, cashflow and eventually unclaimed monies. It costs the industry 346 million a year. We examined the cost of couriers, which are frequently used to collect and deliver paperwork, and found that these dedicated couriers were supplemented by an equal number of staff who also ran around collecting paperwork. Our estimate is that it costs the studied industry sectors 112 million annually, although the true figure may be higher. Man hours expended within businesses on entering data and resolving issues was another extraordinary example of expenditure. Nearly 13 million man hours in 2005 were estimated to have been expended by personnel entering data, chasing late or missing documents or preparing claims for deferment monies deposited with HMRC. That equates to over 354 million a year. We looked at the impact of a short delay inobtaining documentation or clearance due to inability to present documentation in suitable time at the critical point of importation. In some respects the damage was greater. After waiting time, extra transportation, the cost of holding shifts at the packhouse or importers warehouse, the cost was found to be between 200% and 400% of the original consignment cost. We found that because of the delay in billing this was not always passed on or recognised. This was one of a number of supplemental costs we experienced. In conclusion our examination of the perishable food supply chain led us to believe that paper documentation costs the UK perishable food supply chain studied 1 billion per annum. With the documented experience of other countries and our own analysis we estimate that with the introduction of e-documentation and shared data the industry could save at least 700 million - or around 70% of the costs.
2. Introduction
2.1 Study aims and objectives
This document represents the first part of an exercise to pilot the introduction of UNeDocs (United Nations electronic trade documents) standards-driven electronic documentation and data distribution using single window principles through the perishable foods supply chain. The report examines the issues and economic significance associated with current documentation used within the global supply chains for consignments entering or leaving the UK via air, sea and road. The overall objective of this report is to assemble a set of data to describe and, as far as is possible, value some of the main issues which arise out of using the current documentation processes and the impact upon both the industry and the government departments concerned with regulating the import and export of perishable goods. Trends and developments in the industry itself and in the industries and regulatory framework that influence the performance of the sector were to be identified to help form a view on the future potential for implementation of document standards and the financial benefit arising for the UK perishables industry and its influence on commercial advantage within the global supply chain market. This report is designed to summarise the cost and opportunity to the industry through the presentation of data and information; as such it represents an initial review. It brings together descriptions and views of the supply chain industry from different perspectives. It does not follow through any argument for changes in supply chain processes, government policy or the regulatory framework but it is suggested that these aspects could be the subject of a further study or review.
2.2 Study approach and methodology

In the initial approach to the study it was determined that an attempt should be made to explore the collection of primary data where that would add to the existing body of knowledge on the supply chain industry. In particular, in order to be able to make an estimate of the cost to the industry and to then quantify the significance of the introduction of standards-driven e-documentation and single source electronic portal, it would be necessary to review and collect document and financial information on sectors of the industry for which little published information was available. Information was sought from a variety of sources:
an interview programme collected information and views from industry representatives, shippers, airlines, airline
handlers, freight forwarders, road hauliers, express service operators including transit shed operators, general sales agents and regulatory authorities. This included interviewing overseas sources in five countries across three continents;
collection and analysis of statistics from a wide variety of sources, including HMRC Trade Statistics, UK trade
statistics, Overseas government trade statistics and data from individual operators within the perishable food supply chain - from grower/producer to main importer;
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survey of main grocery retailers views.
Accordingly, the report structure reflects the broad aims of the project in:
identifying and describing the perishable food supply chain's principal document-related challenges; quantifying where possible the types of document issues, why they happen and the frequency in particular
sectors;
factors that affect resolving of the issues; estimating the cost to the industry of the current system.
Due to time, geography, the focus on the UK, availability and access to information, and the natural dissemination of the costs and issues, the main research time was spent investigating the import environment. We gathered useful data from the export environment which has been integrated into this document where appropriate, but, we were unable to get access to the detailed data we required to make a full assessment across the spectrum of activity within the export environment. It should be noted that due to the above limitations and the period in which the project had to be undertaken - the lead up to Christmas is a peak for the industry - the investigation was naturally restricted to a smaller sampling than one would normally prefer for such an exercise as this. Therefore, the extrapolated figures contained within this document can only be a guide to the true cost and may be subject to a positive or negative variation. A more definite picture could only be obtained by continuing the research over a longer timescale and with a larger sampling.
2.3 Specific research commodity range

The range of products covered by the importers and exporters interviewed was broad, influenced by location, contacts, customers and/or facilities. The range of commodity codes utilised by these operatives included: 02: Meat and Edible Meat Offal; 03: Fish and Crustaceans, Molluscs and other Aquatic Invertebrates; 04: Dairy Produce; Birds Eggs; Natural Honey; Edible Products of Animal Origin; 06: Live Trees and other Plants; Bulbs, Roots and the like; Cut Flowers and Ornamental Foliage; 07: Edible Vegetables and certain Root Tubers; 08: Edible Fruit and Nuts; Peel of Citrus Fruits or Melons; 09: Coffee, Tea, Mate and Spices; 16: Preparations of Meat, Fish or Crustaceans, Molluscs or other Aquatic Invertebrates; 20: Preparations of Vegetables, Fruit, Nuts or other parts of Plants.
For the purposes of our research the transactions we analysed were covered by the following commodities codes: 07: Edible Vegetables and certain Root Tubers; 08: Edible Fruit and Nuts; Peel of Citrus Fruits or Melons; 20: Preparations of Vegetables, Fruit, Nuts or other parts of Plants. This particular sector is worth around 9.4 billion a year out of an import total of 25.9 billion in 2005 or 36.3%. On exports this sector is worth 1.9 billion a year out an annual total of about 10.8 billion in 2005 or 17.6%.
3. The Perishable Food Supply Chain

3.1 Introduction
The perishable food supply chain can broadly be defined as encompassing all those activities related to movement of temperature or time sensitive food or food related goods by road, sea and air. There are various activities which are inter-related but which are also industries in themselves. The principal activities are:
port control and management; airlines; shipping; freight handlers, forwarders and wholesalers; import/ export agents; express operators and integrators, couriers; road logistics operators; storage and warehousing transit shed operators; importers/ exporters; wholesalers, retailers and food processors.
In addition to the above there are numerous related activities supporting these primary providers -ground support services, IT support companies, charter brokers, packing companies, security organisations, dangerous goods specialists, government departments, and control agencies such as HMRC. All of these activities largely rely on paper documents supported by IT systems to enable consignments to move from one stage to the next through the supply chain. It should also be recognised that the supply chain is not strictly just perishable products. As part of the rationalisation of the global supply chain it is now often necessary for importers and shippers to take responsibility for the export of equipment and packaging to the third country to ensure the speed, safety and controlled movement of the perishable goods to minimise cost, time and spoilage. This can involve the export, to a third country of preference, of substantial amounts of plastic, cardboard, insulated packaging and cooling products, ie gel packs, cooling blankets, insulated containers etc.
3.2 The core product

When the industry refers to perishables this can be quite a broad term and can cover a wide variety of products. For example, some pharmaceuticals are covered by the term perishables, as they require controlled temperature environments and therefore constitute a component part of the airline perishable mix. But what are perishable foods? Perishable foods and products might be a more exact term, but it is generally accepted that the term covers products which can degrade over time and are sensitive to temperature.
The general understanding of this category is that it comprises fresh goods such as meat and meat products, fish and fish products, fruit, vegetables and prepared foods such as salads. But it may also include dairy products, bread, cakes, biscuits and cereals, sauces, pickles and ready meals.
3.3 Supply chain participants

The global perishable food supply chain consists of a number of different commercial and regulatory organisations who provide customers with through freight services. These organisations, mainly within the private sector, operate in a highly competitive environment. Ports - Air and Sea. Generally the ports act as landlords and infrastructure providers charging landing/docking fees to the carriers and charging rent to service companies for reception terminals, offices, cargo transit sheds, transport maintenance workshops etc.... Regulatory Authorities. The role of these organisations is to manage and regulate the import and export of goods according to the laws and directives of their respective countries. They provide a valuable risk management and revenue or duty collection service acting, effectively, as policemen to the global supply chain. Shippers / Carriers / Road Haulage, the suppliers of cargo capacity into and out of the UK, are either scheduled operators, charter operators, freighter operators or integrated carriers. Freight Forwarders provide a service to shippers, airlines, importers and exporters which originally involved receiving a consignment of freight from a shipper, arranging its routing, transportation handling and documentation to either the final receiver or to a foreign airport. The role of the forwarders has developed over the years with the largest forwarders describing themselves as logistics providers. General Sales Agents are appointed by some airlines and shippers to sell cargo capacity on their behalf, thereby allowing the airlines/shippers to avoid the potentially high fixed costs of sales and marketing. Integrators provide a door-to-door service, usually using their own road transport, handling, transit warehousing facilities and aircraft or ships. Normally integrators contract directly with the airline or shipper. They started principally as express operators, but are now competing more directly with freight forwarders and the airlines and shippers. Storage, Warehousing, Regional Distribution Centres (RDCs) provide a whole range of services, from simple storage through to complex cryogenic environments, packing, processing and ripening facilities on behalf of, or as part of, other participants in the supply chain. Transit Shed Operators provide a transit handling service for airlines, shippers and sometimes forwarders. Their function is to receive cargo, break it (de-consolidate or depalletise) and deliver to truck or vice versa via a transit shed where customs clearance is required.
Specialist Air / Sea Trucking Companies provide road transport between the UK regions and the airports / ports, or continental airports / ports, as well as intra-European services, where trucks substitute for aircraft or ships, usually to a schedule. Most companies work on behalf of the carriers in servicing the forwarders requirements. Express Operators provide services for the movement of packages, where the timescales for transit are measured in hours, by contrast to forwarders whose service transit times are generally managed in days or weeks. Freight Wholesalers buy capacity from airlines and shipping companies and sell this on to small and mediumsized forwarders. This enables the latter to buy freight space more economically than they might otherwise by contracting directly with the airline or shipper. Importers / Exporters are often the customers at either end of the supply chain, who interface with the grower or producer at one end and the retailer at the other. Importers and exporters will most often handle the selling and procurement on behalf of the grower and retailer, as well as being ultimately responsible for the transactions. Growers / Producers / Wholesalers are the providers of the produce or products to be shipped. These may be individual farmers, co-operatives or wholesale companies acting as third-party providers or intermediaries.
3.4 Size of industry

The value of the UK perishable food supply chain is estimated at 37 billion for 2005 - imports at 26 billion and exports at 11 billion, based on WTO trade figures.
3.5 Employment
The perishable food supply chain generates substantial employment for the UK, but with many perishable products coming from the less advantaged areas of the world, the sector is also creating major employment and income generation in developing nations too.
3.6 Perishable food supply chain structure in brief
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3.7 The market

The UK is a major importer of perishable food products, 21 billion each year based on 2003 figures, which translated into 74 billion of sales to UK consumers across retail and catering. By 2005 imports had risen to around 26 billion. The grocery mulitples, with a collective turnover of 120 billion in 2005, now account for 80% of sales of fresh fruit and vegetables. By volume the vast majority of perishables are carried by sea with generally only the more time sensitive products being shipped by air or trucked if the locations are within reasonable distance of the UK. Even with all the technology and effort available to control handling of perishable food post-harvest mortality can be acute for some lines. The industry sets spoilage at between 5% & 30% which has been confirmed by our research, although our research also indicated some products such as soft fruits can exceed those figures and run to 50%. By the very nature of the perishable food supply chain it is susceptible to demand variations resulting from climatic conditions. For example, a 5c increase in summer temperatures can result in 150% increase in salad sales. This has led to the just in time philosophy that drives the supply chain industry.
3.8 Costs and charges

Costs and charges in the perishable food supply chain can vary greatly depending on where the charges are levied and for what service. Freighting, handling fees, import and export charges, inspections, VAT, administrative costs etc. all add to the product unit sale price and eventually the purchase price for the consumer. Ironically the supply chain cost actually gets lower as a proportion of the overall value of the product as the product value increases. For example:
3.8.1 Cost of supply chain as percentage of wholesale product price (Source: HPL)
High Value Berries from Chile
Supply chain administration - 7%
64%
Low Value Apples
80%
Tomatoes / Bell Peppers
70%
Potatoes
93%
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Some of the cost of import and export can now be offset by using the simplified procedures made available by the government agencies. The usage of these procedures can deliver measurable efficiency and financial benefit. However, although savings up to 3.5% may be obtained this is not realistically available to all importers.
3.8.2 Shipping cost illustration - North Atlantic (Source HPL 2003):

How are the costs distributed in the supply chain? We have used the table below to illustrate the basic costs levied in the movement of a perishable goods container by sea and the average duration of time expended. Sequence Moving container from loading ramp to storage Container waiting for pickup after loading Loading container on road trailer Road transport to port terminal Transfer from road trailer to stack Waiting in stack Unstacking and transfer to terminal trailer Transfer / loading onto ship Containership travel time (NY to Rotterdam) Transfer / unloading off ship Transfer to stack Waiting in stack / transfer to road trailer Clearance and inspection Road transport, port terminal to inland depot Storage in inland depots Moving container to consignee Total hours / days Time (Hours) 1 48 1 33 50 154 1 106 2 14 30 2 442 hrs / 19 days Cost US$ 80.00 12.00 62.00 360.00 80.00 40.00 88.00 240.00 1840.00 192.00 60.00 90.00 10.00 220.00 40.00 3,414.00
The equivalent airfreight movement would be approximately seven times more expensive but could be 17 or more days quicker. It is estimated that airfreight accounts for the movement of around 30% of all perishable goods and is primarily used for topping up and very time-sensitive produce.
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3.9 Documentation overview

The perishable food supply chain is generally accepted to be the most complex and hazardous, in terms of spoilage, goods movement within the global logistics industry. A consignment can also amass a vast volume of paper documentation as part of its movement from one point to another on a global scale. In fact, a single complete consignment transaction, from grower to retailer, can comprise up to 150 documents (or up to 225 pieces of paper) which results in duplicate elements of information being entered up to 42 times during the lifecycle. If the number of operatives in a consignment transaction increase, which is perfectly feasible in some product movements where goods are being repacked or processed or where multiple carriers are being used, then these numbers may be exceeded. Therefore if one extrapolates these figures for the UK perishable food supply chain, per annum, imports alone could amount to 1.1 billion pieces of paper and duplicate information being entered over 189 million times for 4.5 million consignments in 2005 based upon HMRC statistics. This is soon to increase by around twenty documents per ship for shipping supply chains with the introduction of ship and crew inspections by Port Health. This will increase the cost of documentation further, the burden mainly being borne by the competent authority and the shipping industry. Documents can be broken down into two kinds: priority and non-priority documents. Priority documents constitute those that are required for export or import goods to comply with the regulations of the exporting and importing countries. Non-priority documents are those that support the movement on a local level i.e. for each commercial entity involved in the movement of the goods. The remaining key facet of documentation is the movement of the paper, its captured data and the electronic messaging that moves up and down the chain in parallel. Rarely is the electronic data shared. This lack of data sharing, in part due to potential commercial sensitivity and in part due to currently differing use of communication technology, means the true costs to the supply chain industry are unappreciated. This results in substantial additional cost to the consumer at the point of purchase. This research project aims to demonstrate this to business and government.
3.10 Paper wastage and the environment

The wastage of paper is significant, we found that over nine tenths is eventually destroyed. Document papers destroyed Document papers retained
211 (93.78%)
14 (6.22%)
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It is also environmentally damaging. Whilst most of the paper may come from renewable resources a considerable volume of the paper is NCR (non-carbon reproducing), which involves paper coated or impregnated with chemicals. This paper is not recycleable and is potentially toxic to the environment. The dyes, bleaches and glues used in the production of the paper, to enable differentiation of the various parts of a particular document, add to the toxicity threat. And, if that is not sufficient, it is then compounded by the printing and distribution costs of all this paper - some of this paper is even flown or shipped around the world before beginning its journey back again.
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4. Industry Statistics
Based on data estimates available from UK Trade Stats and the WTO for 2005.
4.1 UK Perishable Food Imports 2005 - Total 25,960 million

Meat & Meat Products 14.4% (3,737.7m) Fish & Fish Products 6.6% (1,700.2m) Other 46% (11,960m) Dairy 6.3% (1,641m) Flowers 3.4% (876m) Vegetables & Vegetable Products 9.8% (2,535.1m)
Coffee & Tea 1.6% (413m)
Fruit & Fruit Products 11.9% (3,097.3m) (Source UK Trade Stats & WTO 2005)
4.2 UK Perishable Food Exports 2005 - Total 10,761 million

Meat & Meat Products 6.8% (727.8m) Fish & Fish Products 8.8% (942.4m) Dairy 6.3% (676.3m) Flowers 0.5% (48.6m) Vegetables & Vegetable Products 2.9% (313.6m) Fruit & Fruit Products 8.3% (892.8m) Other 64.8% (6,988.8m) Coffee & Tea 1.6% (170.8m)
(Source UK Trade Stats & WTO 2005)
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4.3 UK Imports - Agriculture and Food (Source: World Trade Organisation Trade Statistics 2005)
4.4 UK Exports - Agriculture and Food (Source: World Trade Organisation Trade Statistics 2005)
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5. Myth vs Reality
Document issues - we dont really have any. We dont see it as a problem! This was the most common response we received from interviewees participating in the research for this document. This response was, by and large, true if one was only focusing on occasions when documentation goes missing completely. This is rare and, on average, our research has shown it happens two or three time a month at most in many businesses. However, ask how often documentation or more specifically priority documents such as required certificates, invoices or way bills fail to arrive at the same time or in advance of the consignment and the reality starts to become apparent. Our investigation has shown clear evidence of document issues which can lead to substantial direct and indirect costs. During our research it soon became obvious that there are very few participants who understand the supply chain from its start to completion. It is by virtue of the fact that each stage understands exactly what is required of them, that the supply chain works at all. However, the failure of the key drivers of the supply chain to comprehend the entire system masks the true cost. Businesses fail to recognise the cost of doing business and have generally become blind to charges arising from dealing with paper in the process, primarily because of time and habit. This is a problem that particularly afflicts importers and larger forwarders, in particular, where our research showed that they were generally unaware of the extra costs which could erode away their margin and the staff considered the time expended chasing a late certificate or invoice all just part of the job and were pre-occupied reacting to and resolving this type of situation. We also found the industry had compounded the problem, especially on imports, by tending to consolidate costs and charges on invoices, thereby rendering them all but invisible to the recipient. But the future could look brighter. The experience and resulting data collected by both government agencies and commercial organisations, in the Far East in particular, highlights the benefits that are attainable both economically and in process efficiency. What is more, it is possible to find a good example of the impact of implementing simplified procedures, electronic documentation, managed data distribution and cost reduction a lot closer to home. The European Union is a direct indicator of what can be achieved given the political will and the tools and framework are provided with which to work. There are those who will remember the cost of regulatory compliance when trading with our European neighbours - it now effectively costs substantially less than historically to transport goods around the EU and trade with the 27 members and some approved fringe countries. So, what is the cost of documentation in the supply chain?
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5.1 General administration

This section covers the cost of the administrative elements of processing the data from the paper - the entry of critical data into the array of information systems in the supply chain. Research time has not permitted us to evaluate, at this point, what the UK government agencies may be able to fully achieve. However, there is evidence to indicate that there could be very substantial savings, although further research and analysis is required. From the interviews and research so far undertaken we have been able gain a detailed insight into the process of receiving and entering consignment documents at two critical points: the freight forwarder and the importer.
Freight Forwarder
At the freight forwarder it took 3-5 minutes to enter the necessary data from the paperwork per consignment and generally tended to be committed in batches from a limited number of documents, the airwaybill in this instance. This could be costing the freight forwarding industry over 7 million to enter data a year: 4.5 million import consignments x 4 minutes x 23.80* pmh = 7,140,000.00 p.a.
*This is a commonly used man hourly rate of 34.00 converted to sterling.
Importer
At the importer it took much longer as there was more information to be input and from more sources. Here the process could take 3-4 hours for one person to process the paperwork for 8-10 consignments - 24 minutes per consignment. This could be costing importers nearly 43 million to enter data a year: 4.5 million import consignments x 24 minutes x 23.80* pmh = 42,840,000.00 p.a.
*This is a commonly used man hourly rate of 34.00 converted to sterling.
e-Documents and pre-populated data from a single window system could reduce this process to an estimated 9 minutes per consignment, a saving of more than 50% or the potential for twice the productivity.
5.2 Export
Analysis of the export process in third countries confirmed it can take 7-10 days to assemble the paperwork required to export goods from a third country into the UK. The example investigated was fruit from Africa where assembling the required certificates, declaration and transport documentation took ten days and involved four government agencies and five logistics providers. The time taken directly impacts on the shelf life of the product, effectively removing up to 10 days from the selling period - revenue that cannot be replaced lowering the potential margin to be realised from sale.
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each day in transit for vegetables and fruit is equivalent to lowering their prices by 0.9 percent
Source: US Agency International Development, Calculating Tariff Equivalents for Time in Trade, March 2007
Authors of the World Bank Policy Research Working Paper, Moving Forward Faster: Trade Facilitation Reform and Mexican Competitiveness, found that each additional day that a product is delayed prior to being shipped reduces trade by at least 1 percent. Each day is equivalent to a country distancing itself from its trade partners by 85 km on average. Delays have an even greater impact on developing country exports and exports of time-sensitive goods, such as perishable agricultural products. If these claims are to be believed since David Hummels 2001 study Time as a trade barrier, which concluded that the average cost per day of shipping time is approximately 0.5 percent ad-valorem, and the conclusion of the US AID report of 2007 was that the cost of one days delay has risen by 0.4%. For a company importing 10,000 of goods, an average delay of just one additional day, which cost 50.00 in 2001, would now cost 90.00. Our research also flagged up late application by exporters or their agents, particularly in South America. One days delay in application for bank underwriting frequently extends to three days delay in making the documentation available or able to be dispatched. This often results in the paperwork for a consignment following on after the goods have departed or perhaps more critically delaying departure completely with a subsequent delay in arrival at the importing destination. In the case of sea freight this situation may be recoverable more easily but in the airline industry the delayed paperwork is forwarded by post which can take 10-14 days to arrive and therefore be the same number of days behind the consignment movement. When the goods movement includes shipping and road transport the delays in documentation at the exporting destination can result in a major obstacle. This was illustrated by a consignment moving from Egypt to the UK via Greece. Initially the freight was carried by sea from Egypt to Greece where the consignment was off-loaded for trucking to the UK. Unfortunately the consignment departed Egypt without its associated paperwork. Upon arrival in Greece the T1 declaration was delayed as was the consignment. Three days were lost while the required paperwork, as faxed copies, was assembled and the required full duties payable guaranteed. Once these formalities were complete the goods were released. The original documentation has to date not been forthcoming and it is unlikely the higher duty paid will be able to be reclaimed. This amounts to a little less than 10% of the consignment at a value of 800. A useful reference from The World Banks Doing Business 2007 report, the section on Indicators, contains useful information on the time to export etc for 129 countries - see Appendices 10f.
5.3 Import
As already outlined it is rare for documents to be lost completely, but it is a more frequent occurrence for documents to be missing at the time of arrival. Our research showed that revenue is more easily eroded at this point than almost anywhere else in the supply chain short of total destruction of the consignment. This is mainly due to the nature of the costs. They are much more opaque and enshrined in the process itself.
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Document release
The first issue to become apparent was the actual document exchange process upon arrival. This involves the release of the documents by the shipper or airline to the freight forwarder via the cargo handler. The documents normally collected by a courier or representative of the company are then taken back to the freight forwarder offices for processing of the declarations. Once the declarations have been initiated the physical documents are then delivered to the regulatory authorities and the necessary clearances are then obtained. This process averages 3 hours and carries a not insignificant cost. Firstly, there is the collection of the documents from the handler. This process averaged a little short of 10 man hours to complete by either a member of staff or a special courier service, as employed at airports. The average cost for this collection process was 278.00 per day taking into account courier fees, man hours for staff and transport costs. The average number of trips per day to collect documents totalled 7.6 or a cost of 36.58 per trip. If this is extrapolated across just freight forwarders it could be costing nearly 112 million a year. Staggering though this figure is further detailed examination across a wider sample of companies could reveal an even higher cost to the industry. Calculation: 278.00 per day x 365 days x 1100 freight forwarders = 111, 617,000.00 p.a. We did encounter one example where three couriers a day were being sent down from Lincolnshire to Sheerness and Heathrow to collect paperwork at a cost of 250 per courier. This was deemed to be isolated and did not warrant inclusion in our data calculations.
Deferment
It was the next phase of the process which proved even more enlightening. As previously stated most interviewees did not apparently experience issues with documentation, in relation to delays with consignments. This seemed improbable when weighed against the amount of circumstantial evidence but it also seemed unlikely that traders would ignore the losses if it were true. Further investigation was required and piece by piece the reality became apparent. The problem lay in the declaration. The industry view was right, generally the documentation didnt delay the movement of the goods, and even if it did - it was not for too long. This was because under the present procedures if the original documents are not present the goods can still clear and move on copies, as outlined in Appendix 10a. The real cost was in the time expended to obtain the copies and implement the temporary clearance, the additional duty payable because the duty preferences are removed and the requirement to guarantee the duties via a deferment account. There are often costs incurred in the reorganisation required to bring the consignment back on track. This can incur substantial costs which we found to be commonly between 200-400% of the value of the product. This was illustrated by an example of a consignment of vegetables with a value of 2,200.00 which was delayed due to documentation by 7 hours. The cost of overtime, reorganisation of logistics, and waiting time amounted to over 8,000.00. This was just one of a number of supplemental costs which we were able to identify that requires more research and analysis.
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Detailed analysis of the documentation and relevant company data of two importers and two freight forwarders revealed the frequency of this situation and the cost. Our initial frequency expectation from the interviews was less than 1%. This was very quickly revised to 10% and when closer examination of the availability of priority documents was made this went as high as 60% depending on the country of origin. From our research we would anticipate, on average, each importer could expect to encounter 36 document issues every month. Our results showed that across 562 consignments by sea and air the following applied: Country of origin Chile Peru Brazil South Africa United States Thailand Egypt Ghana
Source: Consultants research
Transport Type Air / Sea Air / Sea Sea Air / Sea Air Sea Sea / Truck Air
One or more priority documents were missing by % of consignments 6% 8.5% 62% 24.2% 19% 2% 54% 29%
As a consequence of unavailable documentation, the importers we analysed are, on average, locking up in excess of 82,000 of cashflow per month each in their deferment accounts. This could amount to over 265 million across the whole industry per month. Calculation: Average Monthly Deferment x Registered Importers = Total per month Therefore: 82,000 x 3200 = 265,600,000 p.m. Provided the documents are produced by the 15th of the following month the preferential duties paid can be reclaimed, although any costs incurred due to the depletion in cashflow ie use of overdraft facilities etc cannot be reclaimed - we calculate from our research this amounts to an average of a little over 1000, which extrapolated across the industry would be a total of 38.4 million a year. Calculation: 1000 x 3200 x 12 = 38,400,000.00 p.a.
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32% (26,240) is reclaimed by the 15th of each month. The remainder falls into the second option available to importers which is the retrospective reclaim for documents which do not turn up for up to four months after the initial declaration. This accounts for a further 57% (46,740) for each month leaving a residue of 11% (9,020) which is not reclaimed. Often the duty reclaim is not being paid for up to 90 days after submission because of the volume of paperwork HMRC have to deal with. The preferential duty rate is normally between 6.9% - 12.3% or about 8% as an average. So, for example, a 10,000 consignment may be incurring an additional 800 of duty. The situation is further compromised by the time span and administration required to reclaim the duty. The importers analysed were not reclaiming just over 9,000 of preferential duty per month. When this figure is extrapolated across the perishable food supply chain it is seen to be absorbing or passing on additional costs of as much as 346 million per annum. Calculation: Unclaimed average deferment 9,020.00 per month x 3200 importers x 12 months = 346,368,000.00 p.a. If the time expended throughout the entire initial import transaction is taken into account the cost rises further. This kind of situation will use up 4-5 man hours chasing copy documents over anything up to 3 days and occasionally more. It may then take a further 4-5 man hours to make the reclaim. The total cost to the importers for this runningaround is just over 263 million per annum. Calculation: Average 8 hours x 23.80 x 3200 importers x 36 average issues x 12 months = 263,208,960.00 p.a. The freight forwarders will also expend 3-4 hours, at a cost of 45 million per annum. Calculation: Average 4 hours x 23.80 x 1100 forwarders x 36 average issues x 12 months = 45,239,040.00 p.a. An equal amount of time may also be expended by the competent authority to ensure the documents are not present. Then there is the time and resources costs incurred by the export end of the supply chain providing duplicate documents. In shipping, the importer may also incur a demurrage charge from the shipper due to delays not only loading but also unloading when the consignment arrives. This was costing one importer 5,000 a week on incoming consignments from one destination due to consistent failure to provide documentation at either end.
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The government agencies also have issues surrounding the paper documentation. Port Health officers use up many man hours validating certificates and other priority documents. Personnel are tied up having to check prefaxed signatures from third country regulatory organisations against those on export certificates. This can use up to 2-3 man hours when consignments arrive from some countries to check just one document as there may be upwards of several hundred signatures to be compared. Port Health officers could be at least twice, if not more, productive if e-documentation and audited single window systems were available to them. Then there is the physical storage of the original document by the government agencies such as Port Health. The requirement to keep the documents for a number of years enforces the need for substantial storage space at significant cost as well as time, and therefore further cost, to recover documents at times of inspection. This problem also applies to freight agents etc who keep copies of consignment documentation. Swissport are one of the few organisations who have invested in systems to scan and store documentation in an electronic storage and retrieval system at some cost, simply to save space. This is a good example of storage cost being high, especially as a lot of commercial businesses reside on some of the most expensive land available by necessity of carrying out their day-to-day business.
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6. UK Government Developments
The UK Government competent agencies for the supply chain have been actively developing their systems to provide better efficiency and risk management in line with the continuing EU directives and UK government requirements. These should be positively supported and encouraged. These developments have brought about benefits which, from our analysis, have been slow in being adopted by the perishable food supply chain. In turn the agencies have been poor at communicating the benefits to the industry. These developments have yet to have any noticeable impact on the paper documentation within the supply chain, and it is difficult to see how, at present, paper could be eradicated completely without a greater will from government and the EU. Furthermore, it will take more investment of time and money to help develop compliant document standards and systems with trading partners, especially in South America, Central America and Africa. The introduction of e-document standards and single window data management would greatly reduce the development costs in these regions and secure the quality and reliability of the information required in the UK for import/export transactions. The UK supply chain industry remains suspicious and negative towards government/EU developments and it was surprising to note that during our interviews, neither at the coalface government agencies or business representatives could identify any benefits, only additional beaurocracy and cost. We do know from available data, such as that provided by UNECE and the World Bank, that significant savings can be achieved through e-documentation and pro-active information by the various government agencies but due to time limitation we have been unable to fully analyse this sector at this point and further research is required.
Risk Management
Already a significant influence on trade initiatives, risk management could undoubtably be a notable beneficiary of the introduction of document standards and a single window environment. The ability to transfer primary document information electronically directly from one competent authority to another, without third party intervention, would greatly enhance supply chain management and assessment. All indications are that it could reduce the required number of inspections, provide reliable information earlier and facilitate a more educated appraisal of the consignment. Moves have been made towards this approach by Defra. Trials are believed to be underway permitting approved third country competent authorities to declare phytosanitary certificates and alike. There are also other advantages to adopting standardised e-documents moved through one portal. Pooling of data into one independent source allows all government departments to share in that data, pulling out or putting in, without ever compromising the departments integrity of its own systems.
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Integrity is a key word when discussing the validity of any data. It is the integrity of senders and receivers that is paramount to the information being provided is considered to be reliable and able to be actioned upon. Just this one advantage (knowing who sent the information or document) could save a significant amount of time and money for, certainly, importing competent authorities in the UK, thereby allowing better use of resources to target inspections and improving the experience of processing of consignments. The content of this single source could in turn be used to enrich future operator profiling tools to assist in the assessment AEO applications, for example. There are joint benefits too. The use of standardised e-documentation would enable authorised industry operators to automate data provision in an expedited manner and allow government to receive the required information with less investment in systems and processes. Compliance would become a cost-effective background technology process rather than a physical, costly one. The example of Swedens Gateway (see page 33) does indicate there is real potential for cost reductions all round, improved compliance and improved risk management as a consequence. It is difficult to see how it could be perceived as anything other that a win-win for all concerned. In summary, the expected benefits of standardised e-documents and a single window are:
Fewer inspections of consignments; Reduced clearance processing time due to unified formalities; Lower costs and improved working conditions for government officials; Reduced staffing due to possible task sharing by the competent authorities by the development of
multifunctional control officers - this may liberate skilled human resources for other activities;
Better protection and security with less resources; Pooling of electronic data; Easier communication due to transparent procedures, harmonised data and shared intelligence between both
competent authorities in the UK and the coordinating countries, reducing opportunities for incompetent or illegal activities.
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7. The Cost of Doing Business in the UK

The cost of transacting perishable foods is high in the UK. This is making the UK uncompetitive in some areas:
The clearance and inspection charges are too high by comparison to our near neighbours where flat rates for
clearance are commonplace. This has led to goods being landed and cleared in countries such as Germany, France, Holland, Greece and Spain, then trucked into the UK because it is, quite simply, cheaper. In fact, all the importers we interviewed were considering moving more cargo into Europe to save money. Several are actively now landing cargo either by sea or air on the fringes or just outside the EU borders. One importer is now looking to relocate a third of their imports in this way;
Fuel duty being more expensive in the UK, it is quite a substantial financial saving to be located in Europe and
only fuel as required in the UK;

Subsidies and incentives to land cargo in places like Rotterdam and Schipol are on the increase - we were
shown clear evidence of preferential cargo rates;

Administration costs: the cost of employment is cheapest at the fringes of the new 27 EU member states.
Relocating the clearances and therefore the labour intensive activities of processing paper to a cheaper zones looks attractive. On the evidence shown during the interviews this may cut a freight forwarders or importers labour costs by 50%;
Property overhead: office and warehouse space is acutely expensive in the primary areas around UK ports of
entry. The cost of similar facilities closer to the future points of entry for business is vastly cheaper - from examples shown to us by as much as 60% - 80%.
7.1 Costs - Documents

We estimate that paper documents in the perishable food supply chain are costing the industry around 28.00
to generate based on available statistical data and our own analysis which is equal to 126 million per year for 4.5 million document sets;
From data compiled during our research we calculate there could have been as many as 1.4 million incidences
of missing or delayed documentation in the perishable food supply chain in 2005. The average number of incidences per month, per importer, we investigated was 36.46.
If all factors related to paper documents and known issues are taken into account the total cost to the food
perishable food supply chain import sector we have investigated is at least 1 billion per annum or 10.6% of the annual import value of 9.4 billion.
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Calculation: Cost of generating paper Document collection Entering data - forwarder Entering data - importer Unclaimed deferment Charges Man hours Total 126m 112m 7m 43m 346m 38m 354m 1026m
(importers, freight forwarders and authorities)
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8. Quoted statistics and examples

According to statistics quoted at a UN/CEFACT Forum in 2005 the cost of raising export goods paperwork is 40 versus the cost of raising e-documentation at around 19.50, effectively a saving of over 50%. Further analysis of time and motion studies performed by the UNECE indicates that the time taken to generate a paper consignment invoice just for export is 13 minutes. The cost comparison with e-documentation for generating 1000 invoices is as follows: 1000 paper invoices x 13 minutes x 34 (23.80) p.h. = 7,366.00 (5,156.20) 1000 e-invoices x 6 minutes x 34 (23.80) p.h. = 3,400.00 (2,380.00) This amounts to a saving of nearly 54%. Raising of 4.5m document sets x 40 = 180m - using e-docs could save 97.2m Processing the same invoice at the receiving party: the total time taken to open documents, process, audit file etc. is 26 minutes and 50 seconds. The cost comparison with e-documentation for receiving the 1000 invoices is as follows: 1000 paper invoices x 26 minutes x 34 (23.80) p.h. = 15,016.00 (10,511.20) 1000 e-invoices x 9 minutes x 34 (23.80) p.h. = 5,100.00 (3,570.00)
Source: UNECE/Procountor/ENA 2004
This amounts to a saving of nearly 67%. The expansion of these figures drives home the efficiencies of using e-documentation:
100,000 invoices across 5.2 million pieces would save 1 million (700,000); turning paper documentation into e-documents could save the EU supply chain industry 4.4 billion (3.08
million) and save 48,000 man hours; governments would save 3.1 billion (2.17 billion) and save 3,000 man hours.
Source: UN/CEFACT Forum 2005 Speakers presentations
Recorded experiences of importers in the Far East shows a marked reduction in processing time when dealing with e-documentation and in particular a single window environment with substantial cost savings. Furthermore, the time reduction in preparing and processing consignment documentation is equal to a shortening of the trading distance by as much as 9,000km
(Source: Hamid Alavi, World Bank, presentation 2005/ IDB 2000 / Hummels)
Singapore importers and exporters have gained 1% of industry GDP through the use of e-documentation. This is equal to $1.91 million in 2005 (1.25 million). If these figures are replicated in the UK, based on 2005 trade statistics, the saving to the industry through the use of e-documentation would be over 370 million per annum.
(Source: /Hamid Alavi, World Bank, Singapore Department of Statistics/Singapore Government Trade Statistics Web site)
It is estimated that 7% of the gross consignment cost is logistics document administration.

(Source: Hamid Alavi, World Bank, presentation 2005/UNECE) 28
Supporting statistics are also available from the experience of other countries:
UN/CEFACT has stated that having e-documentation in the supply chain for priority documents could save 3%-
10% of the value of gross international trade;

Korea is carrying out 9.6 million supply chain e-document transactions per year with a saving to its industry of
$50 million;
(Source: UN/CEFACT Forum Presentation 2005 / Korea Trade Stats)
The introduction of e-documentation in Finland has improved the trade competiveness of the South Karelia
region by 50 million (36 million) per year;

(Source: UN/CEFACT Forum Presentation 2005)
By implementing e-documentation and a single window Mauritius has reduced average clearance times from
four hours down to 15 minutes. Tunisia has reduced processing times from 18 hours down to 7 with their systems;
(Source: UN/CEFACT Forum Presentation 2005 / Hamid Alavi, World Bank 2005)
e-Documents have saved business in Port Klang, Malaysia, 2.59 million in guarantee charges.
(Source: UN/CEFACT Forum Presentation 2005 / Hamid Alavi, World Bank 2005)
Gateway Sweden / Swedish Customs

A good pointer to the future is Gateway Sweden and, in particular, the example of cross border import and export procedures that exist between Sweden (an EU member) and Norway (a non-EU member). The Swedish import and export systems handle 5 million declarations per year and transact over 100,000 messages per day. The adoption of e-documentation and single window processing of data has enabled the customs authority to execute 4,000,000 automatic clearances per year within 3 minutes. In fact, 96% of the document declarations are electronic with a reduction in compliance cost to the supply chain industry of between 30% 75%. Conversely the hit rate for the customs risk assessment teams on examinations has risen from 5% to 44%. A further benefit to the industry is the 24 hours, 7 days a week availability of services, of which 164 are provided free-of-charge. The multi-technology gateway between Sweden and Norway provides a fast-track single window service for accredited supply chain businesses to interface with seven government agencies.
(Source: Swedish Customs UN/CEFACT Executive Forum 2005)
More information on Gateway Sweden may be obtained from: http://www.unece.org/trade/workshop/lyon_sep05/Sweden.ppt http://www.forfas.ie/events/tradefacilitation/pdfs/Pres3%20-%20Mats%20Wicktor_Trade%20Facilitation, The%20Swedish%20Experience.pdf http://www.regjeringen.no/upload/kilde/ud/bro/2006/0054/ddd/word/284517-wto2.doc
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9. Conclusions
It is very clear that no one person or party sees the whole supply chain. Our experience of the retailers is they are unable to see beyond the release of goods into the UK and do not experience or understand the impact that paper documentation has on them in terms of cost or loss of shelf life, or perhaps more significantly the revenue and shelf life that might be recovered. Inevitably, it is the consumer who effectively pays the cost in higher prices for the goods. Most importers, wrestling with the supply chain on a day-to-day basis, have little or no time to fully investigate the reasons and/or costs for late or missing documents and often the charges for such occurrences are consolidated on invoices from forwarders, handlers and logistics providers and just passed on or absorbed. Equally, the high maintenance involved in entering data from the documentation is further eroding profits and efficiency. As our research has shown the cost to the industry is high. More significant is the fact that nobody has really noticed. Because of the timescales involved and the established processes of the industry, the true financial cost of paper documentation and lack of cross-migratory data in the perishable food supply chain is suppressed, even hidden. This is not deliberate but merely a consequence of doing business. The industry needs a solution and needs assistance. The developments coming through on TRACES and PEACH will greatly enhance the user experience and extend the reach of these applications back down the supply chain. Even with all the benefits these new developments will bring, there is still a note of caution in that the harmonisation and ability to share or exchange electronic trade data is still some way off. In short, paper documentation is costing UK business and government alike. The cost to government of regulating the supply chain with the current paper-based processes is administratively high and as a consequence has to levy charges for processing declarations and inspections to meet some of this cost. But this, the most visible impact of paper documentation cost, is an added financial and administrative burden to traders and makes the UK import/export environment uncompetitive. The perishable food supply chain is looking to reduce the administrative and financial burden and is starting to make full use of the opportunities afforded it by the EU. One only has to look at the increase in trade clearances to Europe or the relocation of trucking companies to Holland to see one of the effects of the high cost of doing business in the UK. But this is tinkering at the fringes and not addressing the underlying problem. Our interviews confirmed that UK businesses are looking to the government to lead the way by making the tools available. The supply chain industry also remains uncertain of the real benefits of the recent initiatives and the
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general consensus is that the developments are not seen as being of real value, merely an extension of regulation and red-tape. The UK government needs to invest in the framework to encourage the supply chain industry to modernise and remain competitive, especially if it wishes to maintain the revenue it attracts through import and export duties. Based upon the experiences of other trading nations who have pursued a similar course by adopting edocumentation, the findings from our investigations and the support of global organisations and industry body statistics, the consultants estimate that savings to the UK perishable food supply chain could be 2.6 billion per annum or a saving of 7% of the gross GDP for the industry based upon 2005 trade figures. Based on the savings reported by various UN, national or trade statistic organisations the savings may reach much more. For the vast majority of businesses operating within the supply chain this would effectively be a doubling of their annual gross profit margin. This saving takes into account reductions in administration man hours, process efficiencies, preferential rate loss caused by incomplete documentation, charges, airline rates savings (taken as a market percentage for UK airlines of the IATA declared saving for the airline industry) and support services costs as outlined previously. These savings could only be successfully realised by introduction of e-documentation, a single window data source and managed data distribution service made available to the industry as a whole and driven by central government, as in other successful case studies. For such an implementation to succeed, a standard such as UNeDocs would have to adopted to enable the facilitation of a translation capability to distribute electronic data to all the required systems without incurring a major upheaval and reinvestment across the entire supply chain industry and the agencies that police it. The introduction of standards-driven e-documentation throughout the perishable food supply chain and managed data upon single window principles would have a significant and substantial impact and undeniably deliver quantifiable benefits and savings as has been illustrated in this document. Moreover, e-documentation would make the UK a better environment in which to trade and make trading easier and more economic for our own businesses, our government agencies and our trading partners.
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10. Appendices
10a. Import Procedures and Documentation - an outline
10a.1 What are Imports?
For the purposes of this report, imports are when goods are brought into the UK from outside the European Union (EU). The distinction as to when the word imports should be applied is not just semantics it reflects the differences in the law for the treatment of imports against that for trade within the EU called Intra-Community trade.
10a.2 Countries of the EU

At the time of going to print, the countries of the EU are: Austria, Belgium, Bulgaria, Republic of Cyprus, The Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, The Irish Republic (Eire), Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, Sweden and The United Kingdom.
10a.3 The Single Administrative Document (SAD) C88

Import and export details are usually collected through the submission to HM Revenue & Customs (HMRC), of the Single Administrative Document (SAD). This document, in a similar format, is used throughout the EU, each country having it printed in their own language. In the UK it is known as form C88. Details may also be collected via the transmission of an electronic message by NES (See 10b.2 on page 47).
10a.4 Import Declaration

Currently 99% of import details are collected through the submission to HMRC of an electronic import declaration (C88). The import declaration gives information needed for a complete picture of what the goods are and what is happening to the shipment. Two of the most important pieces of information required are the Commodity Code (also called Tariff Heading, Tariff Code, Classification Code or Harmonised Code) and the Customs Procedure Code (CPC). Both have significant impact on duty due and how the consignment is treated. A freight agent is often appointed to make the import declaration. If a declaration needs explanation the declared importer is expected to provide the information and is also responsible for the accuracy of the declaration provided by the freight agent and liable for any customs charges. Only where a freight agent acts as an indirect representative (i.e. they make the customs declaration on behalf of a principal in their own name) are they the declarant. In such cases both the agent and the principal are joint and severally liable for any customs debt.
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10a.5 Payment of Import Duty and VAT

Once an import declaration (usually a C88 Single Administrative Document (SAD)) has been submitted and accepted by HMRC, the goods covered by the declaration will not be released until the charges payable against that import have been paid or secured. This is normally disbursed via an importer or freight agents Deferment Account. This allows the freight to be moved and the duties and VAT payable deferred until the 15th of the following month.
10a.6 The Import Value

When importing goods, the value is declared on the C88. This value is the amount on which any duties and VAT due will be calculated. The customs value should is based on the CIF price (cost, insurance, freight). This valuation is known as the transaction value and is used in the vast majority of importations.
10a.7 Documentation
In the case of perishables, Customs do require sight of the required documents relative to the consignments at the time of import, but they may not require sight of the original document. It is sufficient to know that the original exists and copies may be presented on the basis that the originals will be presented later and secured by deferment. Both GSP and EUR 1 Certificates can be issued retrospectively, but these must be considered an exception. If a certificate is lost, destroyed or stolen a duplicate can be issued. A duplicate certificate is the top copy of a certificate only. It must be stamped and signed by the competent authority and will be valid from the date on which the original was issued photocopies of the original form are not acceptable. If the goods do not have a preference certificate covering them at the time of import, the full rate of duty will be required as security. This security covers the possibility of no certificate being issued or the claim to preference being rejected. A valid documentary proof of origin should be produced within four months from the date the entry is accepted. If at the end of this period the proof of origin is not available, the duty secured will be brought to account. However, if the certificate then arrives, entitlement to submit a belated claim to preference and a refund of duty may be permitted. Therefore, the following needs to be be presented:
Import C88 form; Supplier's invoice accompanying the consignment, or if there has been no sale, a letter or document clearly
showing what the status of the goods is;

Any licenses or certificates required for the type of imported goods.
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Freight Agents can input import details direct to HMRCs CHIEF (Customs Handling of Import and Export Freight) computer system and produce a "plain paper" print which contains all the same information as a C88. If required documents are then presented to Customs for stamping and thereby certifying the import and acknowledging the entry.
10a.8 Preferential Rates of Duty

The EU has trading agreements set in place with certain non-EU countries. The effect of these is to allow goods which have met specified origin rules in the country of export to be imported at a preferential or reduced rate of duty. Claims to preferential rates of duty must be supported by proof of preferential origin (a certificate, or in some cases a declaration on an invoice or other commercial document, issued in the exporting country). Autonomous or non-reciprocal - Generalised System of Preferences (GSP) Claims to preferential rates of duty under the GSP must normally be supported by a GSP Form A. It is a certificate of preferential origin and must be stamped and signed by the competent authority within the country usually (but not always) the Customs Authority. The certificate covers one consignment. If however the consignment is expected to be broken down into a series of entries over a period of 3 months or less, then an exceptional application to Customs at the port / airport where the goods will be imported may be made, to allow one certificate to cover these entries. The GSP Form A has a limited period of validity from the date of issue. At present this is ten months. If a certificate is not fully completed, it can be rendered invalid, so completeness of the document prior to importation is essential. It should also be noted that any corrections must be made by the supplier. As an alternative, exporters in GSP Countries can use declarations on a commercial invoice up to a maximum goods value of 4,830 (6,000 Euros). Reciprocal - EUR Preferences Reciprocal agreements apply to both import to the EU and export from the EU. There are two ways to support a claim to preference on imported goods or to prove the preferential origin of goods which are being exported under preference. The most commonly used document is a Form EUR 1. If the consignment is under a stated value, then a declaration on the invoice or other commercial document with a legally approved form of words can be used as an alternative. Many reciprocal agreements enable exporters to become approved to issue invoice declarations regardless of the values involved. Each Form EUR1 or invoice declaration covers one consignment and the documents again have a limited period of validity of 4, 5 or 10 months depending upon the particular preferential trade agreement concerned.
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Not all goods attract a preferential rate of duty and tariff quotas may be in place for certain goods from particular countries. This has the effect of limiting the quantity of the product that can be brought in under preference. Once the quota limit is full, the goods can still be imported but only at the full rate of duty. If the quota is used up the goods may be placed in a Customs Warehouse. This effectively defers liability for payment of duty and VAT, until such time as the preference quota is available again. Once the quota is available again then the goods can be removed from the warehouse upon presentation of the correct certificate for the preference under the new quota. The preference certificates and invoice declarations covering the goods do have a limited period of validity.
10a.9 Customs Freight Simplified Procedures (CFSP)

CFSP is a two stage electronic method of declaration. It offers a variety of procedures, which may be operated in isolation or combined to best meet an importers needs. It allows authorised traders to gain accelerated removal or release of most third country imports by making a simplified declaration containing the minimum of details at the frontier. The full statistical and fiscal details of the goods are later provided to HMRC electronically within a defined timescale. However CFSP imports are still subject to anti-smuggling and admissibility controls the same as all other goods entering the UK. Other features of CFSP include cash flow benefits and the use of simplified procedures in conjunction with normal entry and warehouse procedures.
10a.10 Import licences

When importing perishables there are also a number of licensing requirements, including:
Common Agricultural Policy (CAP) licences; Department for Environment, Food & Rural Affairs (DEFRA) licences; European Commission licences.
10a.11 Common Agricultural Policy (CAP) licenses

If you import agricultural produce, whether as raw materials or processed goods, CAP licences are usually needed. They are issued and controlled by The Rural Payments Agency (RPA). HMRC are responsible for the policing of the licences at the time the goods are imported. If a required licence is is not presented at the time of importation, the goods will not be allowed to move from the port / airport. CAP goods being imported from one country may need a licence, whereas the same goods coming from another country may not. CAP licences are issued to control certain aspects of imports, eg. restrict the quantity of a certain type of goods being imported from a certain country, or to restrict the quantity of a product which gets a preferential rate of import duty.
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10a.12 Department for the Environment, Food & Rural Affairs (DEFRA) Documents
The importation of meat, poultry, dairy products, some other foodstuffs, livestock, blood, plant or plant products, endangered species or fur will usually require a DEFRA licence, permit, certificate of conformity or Common Veterinary Entry Document (CVED). Goods such as meat, poultry, and their products, dairy products (including milk and eggs), animal bones or blood, sausage skins and fishery products are required to undergo veterinary health checks at a Border Inspection Post (BIP) on arrival in the UK. In addition to the veterinary documents required by the BIP, a Common Veterinary Entry Document (CVED) completed by the Importer and issued by the BIP will normally be required to obtain customs clearance. Certain plants, plant produce and plant products are prohibited from entering the UK from non-EU countries, although it may be possible to import, move and keep prohibited material for trial or scientific purposes under the authority of a license issued by DEFRA / National Assembly for Wales (NAW) / SEERAD for Scotland and DARD for Northern Ireland. In general, all plants and some plant produce and products that are permitted to enter England, Wales and Northern Ireland from nonEU countries must be accompanied by a phytosanitary certificate. In Scotland, all plants and some plant produce and products that are permitted to enter Scotland from non-EU countries must be accompanied by a phytosanitary certificate and a quarantine release certificate (QRC). The QRC is issued by SEERAD. All imports of fresh fruit, vegetables and nuts subject to EU Marketing Standards require a recognised certificate of conformity before release into free circulation within the European Union. Produce for industrial processing will need a certificate of industrial use. RPA Horticultural Marketing Inspectorate will issue certificates for importations entering England or Wales, SEERAD for Scotland and DARD for Northern Ireland. Feed and Food products of non-animal origin (e.g. grain) imported into the EU must also comply with feed and food safety requirements. Certain products identified as high-risk may need to be pre-notified to health authorities and accompanied by the relevant documentation e.g. laboratory analysis statement confirming a product is safe / suitable for human consumption. Endangered species both flora and fauna and their products, (eg parrots, tortoises, birds of prey, monkeys, caviar, ivory and coral), need specified permits or other documentation to be legally imported into or exported out of the EU. The furs of certain animal species may only enter the EU if accompanied by evidence of their legal origin.
10a.13 Catch Document

The import of Patagonian Toothfish or Chilean Seabass, for example, require Catch documentation.
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10b. Export Procedures and Documentation - an outline

10b.1 What are Exports?
For the purposes of this report, exports are goods sent from the UK to outside the EU. Many perishables need a license to be exported from the UK.
10b.2 Export Declaration

Export details are collected through the submission to HMRC of an electronic export declaration. Normally a freight agent carries out the export declaration although an exporter may do their own. If using a freight agent the exporter is still liable for the declarations accuracy and will still be expected to provide any clarification or further information required and also disburse the duties payable. A full or simplified export declaration may be made. A full declaration may be in the form of an electronic declaration under the New Export System (NES) or by using a paper Single Administrative Document (SAD/C88) for Customs to input at Regional Frontier EPUs - now consolidated at the NCH (National Clearance Hub). A simplified declaration, using either the local clearance procedure or simplified declaration procedure, must be made electronically under NES into the central computer, CHIEF (Customs Handling of Import / Export Freight). Both of these procedures require prior authorisation by HMRC.
10b.3 New Export System (NES) Export Declarations

In support of the Governments initiative to develop electronic services exports now have to be declared electronically to CHIEF. Export details are collected through the submission to HMRC of electronically coded data. This is captured on the HMRC mainframe computer system, CHIEF, and may be submitted via a variety of electronic routes. Exporters may choose from Email, Web, XML, CSP or HMRC Input to make declaration. Once the goods have arrived at an approved location an arrival message is sent to CHIEF. The data is then processed and, providing the goods are not selected for examination or any further checks, the goods will be given Permission to Progress. This positive method of control can avoid some goods being packed unnecessarily in advance of shipment.
10b.4 When are the declarations made?

Sometimes at the time of export not all the details for the consignment may be available. As some goods need to be shipped at short notice, exporters who handle consignments of this nature may be authorised to submit abbreviated details to CHIEF and then supply the final, correct details within 14 days of shipment. This is called Simplified Declaration Procedures (SDP).
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Some exporters find that being able to control their exports from their own premises suits their business needs better. Exporters may therefore be approved to operate under Local Control Procedures (LCP). If all the details concerning an export are available before shipment then they are declared. In these circumstances a supplementary declaration will not be required.
10b.5 How is an export declaration made?

In advance of the electronic declaration information may be given to freight agents in a variety of forms. The only document that HMRC will key information from is the C88, copy 2. Once received, the details are sent via a variety of methods to CHIEF. These include:
Details sent via Community Systems Providers (CSPs). These are Customs approved inventory systems that
capture data for HMRC to carry out their checks on CHIEF.

Other electronic routes including Web form, Email and XML. Access to CHIEF is gained by first obtaining a
digital certificate and using passwords.

Customs inputting the declaration (CIE). This method may be subject to delays but we aim to process the
declarations within 12 working hours subject to the paperwork being correct. CHIEF therefore offers a standard validation process across the UK and, immediate clearance for export can usually be achieved within seconds of the data being transmitted.
10b.6 Details to be declared

HMRC require various data for their records. Details submitted will include the origin of the goods, the country to which the goods are being sent, commodity codes, Customs Procedure Codes and values. The most important piece of information is the Unique Consignment Reference.
10b.7 Unique Consignment Reference (UCR)

The use of a Unique Consignment Reference (UCR) is mandatory for all electronic declarations. The UCR is the means by which the Importer and HMRC can identify the goods to the export records, especially when using SDP or LCP. If a UCR is not provided by the declarant, one will be assigned by CHIEF. The UCR consists of up to 35 (alpha / numeric) characters and is split into four parts. It is based on the World Customs Organisation Standard. By quoting the UCR at various freight locations, CHIEF is able to record the movement of consignments. As goods arrive at a port or airport an arrival message is sent to CHIEF by approved loaders quoting the UCR. For direct export movements, i.e. goods shipped from the UK and not sent via the EU, a Goods Departure Message will also be required.
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The Declaration Unique Consignment Reference is made up using the guide below:
1st part the year in which the UCR was allocated. 2nd part the country code for the country in which the UCR was allocated (GB). 3rd part the identity of the authorised exporter. 4th part a dash (hyphen) followed by a unique series of characters which provides an audit trail within the
commercial records. For air consignments the Airway Bill reference is often used and, for other consignments, the fourth part often relates to the export invoice number. In addition, to allow several export declarations to have the same core Declaration UCR (DUCR) as well as providing a check letter calculation facility (to prevent miss-keying), a further optional field of 4 characters has been made available. If a DUCR is used on an entry under the SDP or LCP procedures the same reference must be used on the Preshipment advice and its matching Supplementary Declaration. Where a consignment consists of more than one DUCR CHIEF allows exporters to amalgamate these references under a Master UCR - (MUCR).
10b.8 Commodity Codes

The Commodity Code for exports is an eight-digit number which equates to a description of the item. No matter how diverse or obscure, all goods will have a unique code number. A commodity code is required on all full export declarations and may be required on certain simplified procedures. It is entered into the C88 form (SAD).
10b.9 Customs Procedure Code (CPC)

The CPC describes the procedure and / or economic regime under which the goods are to be exported. It is required on all export declarations whether using the C88 or electronic export methods. It is entered into the C88 declaration. In addition to a straightforward sale to a customer overseas, goods may be being re-exported after processing by a UK / EU country. Goods being exported temporarily can be eligible for a relief from duty when they are subsequently reimported to the UK / EU as long as they were exported under outward processing relief (OPR) using a CPC. If the Goods being exported, will be duty free at re-import, there is no need to use OPR. Similarly, goods re-exported after processing by a UK / EU trader must use the appropriate CPC to notify HMRC otherwise the relief may not be allowed. A CPC declaring a straight forward, UK originating export is important if the exporter is VAT registered as this forms part of the evidence to support zero rating of the transaction.
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10b.10 Export taxes

Currently there are no export taxes, duties or levies in force on goods exported from the EU, but, the EU may impose export taxes on certain CAP goods at very short notice. This can occur for various reasons, but is most likely to happen at times of shortage of particular products, e.g. due to a poor harvest, etc. When this happens, HMRC and the RPA advise Exporters how to declare their goods and account for the tax due. However, there may be import duties to pay in the country of destination.
10b.11 Indirect Exports

For Customs purposes, goods which leave the EU via other Member States, are known as indirect exports. For example: A truck is packed with goods in the UK with Russia as the final destination. The truck drives to Newcastle to board a ship docking at Gothenburg, Sweden. Following arrival in Sweden, the truck travels to the Swedish / Finnish border and at this border the truck passes through into Finland and onto the Finnish / Russian border where the truck enters Russia. From this example it might appear that the export of the goods is taking place at the Finnish / Russian border the EU and non-EU border. Physically the truck driver drives over that border and the goods are deemed to have entered Russia. But in fact the place of export is Newcastle. This means that the electronic export declaration must be submitted in the UK and the goods made available for inspection by Customs. CHIEF processes the electronic declaration and, grants Permission to Progress and releases the goods for loading on the ship. The goods then travel to the Finnish / Russian border where their exit is supervised by the Finnish Customs. Production of a NES Copy 3 C88 may be requested at the Office of Exit to confirm export formalities have been complied with. These forms can be produced electronically from CHIEF and prior to export from the UK.
10b.12 Storage of documents

For any commercial exports records must be kept for six years from the date of export. This is the required period for VAT purposes.
10b.13 Export licences

An export licence may be needed for a wide range of goods. These include live animals, animal products and endangered species. A CAP licence will probably be required whenever export refund is being claimed. If a licence is required and is not presented / quoted, the goods may be seized and the exporter and / or his agent liable on conviction to a penalty of three times the value or the goods or 1,000 if greater. Deliberate breaches of the regulations covering export prohibitions and restrictions can result in prosecution, with a maximum penalty of seven years imprisonment, ten years in the case of BERR export licences and an unlimited fine.
Common Agricultural Policy (CAP) licences are usually needed for the export of agricultural produce, whether
as raw materials or processed products. They are issued and controlled by the RPA and policed by HMRC.
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An export licence is mandatory if you are exporting certain products. If a licence is required and is not presented at the time of export, the consignment will not be able to leave. CAP goods declared for one country of destination may need a licence, whereas the same consignment going to another country may not. When claiming a CAP export refund, there is an option available to advance fix the refund against the issue of a particular type of export licence.
Department for Environment, Food and Rural Affairs (Defra) licences cover animals and animal products, and
endangered species and are issued and controlled by Defra. If a license is required and not presented with the export, the goods will not be able to leave.
10b.14 Catch Documents

The export of all types of Dissostichus species of fish, known as Patagonian Toothfish or Chilean Seabass, require Catch documentation.
10b.15 Export Preferences

In order to help the export trade of the EU, trading agreements with certain countries have been set in place. These allow originating exports from the EU to enter the destination country at a reduced or nil rate of duty. In order for exported products to qualify, they must have EU preferential origin and therefore have met the required origin rule. There are two different ways to declare preferential origin. The most commonly used is an EUR1 Certificate. There is also a facility to use a declaration on the invoice with a legally approved form of words as an alternative. This can either be a low value declaration available to any exporter or one for Approved Exporters where no value limit applies. EUR1 Certificates have to be stamped prior to being despatched to the overseas customer. They can either be sent to the HMRC National Clearance Hub at Salford, stamped by a local British Chambers of Commerce or the Institute of Chartered Shipbrokers. When an exporter presents an EUR1 for authorisation, the accuracy of the claim may be checked by HMRC, the Institute of Chartered Shipbrokers or the British Chambers of Commerce who have been appointed by HMRC to issue certificates on their behalf. Evidence may be requested when the certificate is actually submitted in order to ensure the Origin Rules have been adhered to. Customs may also be required to verify origin up to three years after the issue of the certificate by the receiving country, under the mutual assistance arrangement. If a request for verification from the authorities in the receiving country is made, and it is found that the goods were not entitled to preference, Customs have to report this fact to the authority. This will result in the customer having to pay the full customs duty. A penalty may also be imposed.
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10b.16 Lost documents

If an EUR1 is lost, destroyed or stolen, a duplicate can be issued from the office where the original was authenticated. Application is normally required in writing stating the reasons a duplicate is required. A copy of the invoice and any supporting evidence is usually required. A duplicate is issued with the same date of issue of the original and therefore has the same period of validity. Exceptionally a retrospective EUR1 can be issued. This requires the recipient in the third country to have put the full amount of duty on deposit until the Certificate arrives.
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10c. Transit Systems

10c.1 Community Transit (CT)
Community Transit is a customs procedure that allows goods that are not in free circulation, (and in certain cases, Community goods) to move between two points in the EU (including two points within a single Member State) with the duties and other charges suspended. The procedure is also used to control the movement of certain goods to and from Andorra, San Marino and the special territories of the Community (such as the Channel Islands). The Community transit procedure is extended to the European Free Trade Association (EFTA) countries (Iceland, Norway, Liechtenstein and Switzerland) by an agreement known as The Common Transit Convention. Goods moving under transit to, through, from or between these countries travel under common transit legislation.
10c.2 Status of the goods

Goods are divided into two categories: Non-Community goods are goods that do not wholly originate in the EU and are therefore liable to Customs duty and / or other changes. These goods are not in free circulation whilst in the EU and need to be identified and controlled to ensure that either the duty is paid or the goods are re-exported. The external CT procedure (T1) allows goods not in free circulation to move within the Community. Community goods are goods that wholly originate in the EU and are therefore free of Customs duty or goods imported from outside the EU on which all import formalities have been completed and duties paid. Community goods are described as being in free circulation. They do not therefore normally require CT declarations or evidence of Community status to move within the EU. Goods arriving in one EU Member State direct from another are regarded as Community goods in the absence of any evidence to the contrary. The internal CT procedure (T2) may be used for Community goods moving:
from one point to another within the EU via a Common Transit country; from an EU Member State to a Common Transit country; to or from San Marino; to or from the Principality of Andorra.
The internal CT procedure (T2F) is required for the movement of Community goods to or from special territories which includes the Channel Islands except for direct movements between the UK and the Channel Islands, where simplifies arrangements apply.
10c.3 New Computerised Transit System (NCTS)

The New Computerised Transit System (NCTS) is a European wide system, based upon electronic declaration and processing. It involves all Member States and the Common Transit countries.
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Each national administration has developed its own NCTS processing system. They are connected, through a central domain in Brussels, to all the other Member States and Common Transit countries. The UK, like many other national administrations uses the Minimal Common Core (MCC) software developed by the European Commission, which provides all the basic data capture and messaging functionality for effective connection to the European network.
10c.4 Submitting NCTS declarations

To submit electronic transit declarations you must have access to a computer and an Internet connection. If you wish to be authorised to have your Transit Accompanying Document (TAD) and List of Items (LoI) printed at your designated premises you will also need a laser printer capable of printing the declaration barcode in the required format. In the UK there are three access routes to NCTS:
Email via Electronic Data Capture Services (EDCS); HM Revenue and Customs NCTS web channel; NCTS XML (Extensible Mark-up Language) declaration channel.
10c.5 Location of the goods

Unless you are an Authorised Consignor or Consignee, there are two distinct types of location where the goods must be made available to Customs at departure and destination:
Customs offices. Approved Customs sub-places.
An Authorised Consignor or Consignee, may designate the premises where the goods will be made available to Customs.
10c.6 Control procedures

All transit movements are the responsibility of a Principal who is the person or company who undertakes to ensure that the goods are delivered to the office of destination or approved customs sub-place within the prescribed time limit. The Principal must usually put up a guarantee to secure the relevant duties and other charges in case the goods do not arrive intact at the office of destination. To start a transit movement the trader inputs an electronic declaration to the NCTS. Customs at the office of departure may prescribe an itinerary and will set a time limit for presentation of the goods at the Customs Office of Destination or to an Authorised Consignee. Customs at departure may also seal the goods. The Transit Accompanying Document (TAD) must travel with the goods to the office of destination/customs sub-place where it must be presented to customs and the goods made available for inspection. Customs at destination will input an
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arrival message to the NCTS, control the end of the transit operation and record the results of the controls on the NCTS. A message is sent back to the office of departure and if the control results are satisfactory the transit operation is discharged. If the control results are not satisfactory or if they are not received within the time limit the Principal is contacted and asked to provide proof that the procedure has ended correctly. If proof is not provided the enquiry procedure is initiated to recover the potential debt.
10c.7 Simplified transit

There is a range of transit simplifications available for use by compliant and reliable traders. These include:
use of a comprehensive guarantee, or guarantee waiver; use of a special loading list; use of seals of a special type; exemption from a prescribed itinerary; authorised Consignor status; authorised Consignee status; procedures specific to certain modes of transport (goods carried by rail or large container, air, sea); other national or bi-lateral simplifications.
10c.8 Community status documents

Community status documents have no transit function but are required where the Community status of the goods needs to be proved e.g. where the goods are moving from one EU Member State to another, via a third country (other than a Common Transit country). There are various documents that can be used to prove Community status. These include:
a T2L (copy 4 or 4/5 of the SAD); a commercial document such as an invoice or a transport document or a shipping companys manifest; a T2LF where proof of Community status is required for goods consigned to or from the special territories; a T2M form to prove the Community status of sea fishing products caught by Community fishing vessels in
certain circumstances.
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10c.9 Transport International Routier (TIR)

TIR is an international Convention that provides for goods to move across one or more international borders with minimal customs interference. The movement must essentially be by road to, via and from European countries and some North African and Asian countries. However, TIR cannot be used to move goods between Member States of the EU unless they go via a third country. Anyone who has travelled on European roads may recognise the familiar blue and white TIR plates affixed to thousands of lorries and trailers using TIR. TIR can be operated in fifty-five countries. Goods that are moved under TIR can pass to and through these countries with any customs duties and other taxes under suspension and without the need for unloading / reloading at international frontiers. There are five main principles to the TIR system:
Access to the system is controlled by the national guarantee associations and customs authorities. In the UK
operators must apply for authorisation to use TIR Carnets to one of the two national guarantee associations either the Freight Transport Association (FTA) or the Road Haulage Association (RHA);
The goods must be listed on, and accompanied by, an internationally recognised document, the TIR Carnet.
The Carnet is taken into use in the country of departure and serves as the control document in the countries of departure, transit and destination;
The duties and taxes at risk are covered by an internationally valid guarantee; The goods must travel in approved secure vehicles and containers; Customs control measures taken in the country of departure should be accepted by the countries of transit and
destination.
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10d. Duty Relief Procedures

10d.1 Introduction
Duty Relief procedures can:
provide relief from, or delay payment of, duty and / or VAT; allow reduced or nil rates of duty to be applied to goods, if they are permanently or temporarily imported under
specific conditions and / or imported to a specific location or use;

provide relief from duty and / or VAT for goods temporarily exported from and returned to the EU.
10d.2 Inward Processing Relief (IPR)

IPR provides relief in order to promote exports from the EU and assist Community processors to compete on an equal footing in the world market. If non-EU goods are imported for use in the processing of products which are intended to be re-exported outside the EU, IPR allows the customs duties to be relieved for the time required to enter, process and dispose of the goods. (Duty/ VAT is payable on the value of the overseas process)
10d.3 Outward Processing Relief (OPR)

Outward Processing Relief provides duty relief on imports from 3rd countries of goods which have been produced from previously exported EU goods. When you re-import the goods you may be able to pay import duty and VAT on a reduced value subject to certain conditions.
10d.4 Returned Goods Relief (RGR)

If you import goods that were previously exported from the Customs Union (the EU, Turkey, San Marino and Andorra), then returned goods relief could be of use. The goods must be reimported in the same condition as at export from the customs union, with no processing having been carried out on them outside the union.
10d.5 Temporary Importation relief (TI)

Temporary Importation generally allows you to temporarily import goods with relief from customs duty, specific customs duty (previous CAP charges), antidumping duty and countervailing duty. TI does not relieve excise duties. Goods must not be processed or repaired other than routine maintenance necessary to preserve them in the condition in which they were imported. There are several different TI reliefs. Some examples of these are:
goods coming in for an exhibition; goods coming in to test (but not to destruction); sample goods to show to prospective buyers;
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animals coming in for training / breeding / veterinary treatment or competitions.
10d.6 ATA Carnets

These can also be used for certain temporary importations and exportations. An ATA carnet is a book of vouchers that replaces the normal customs documentation at the time of importation and exportation. The ATA carnet system is operated worldwide under the ATA and Istanbul Conventions. Security to cover potential import duties is lodged in the country of issue. In the UK, ATA carnets are issued by Chambers of Commerce and Industry.
10d.7 Customs Warehousing

Customs warehousing is a storage procedure whereby the payment of customs duties and / or import VAT can be suspended or delayed when non-Community goods are stored in a defined location (premises or place) or under a commercial inventory and records system authorised as a customs warehouse. The normal rules relating to import and export prohibitions and restrictions apply to goods imported into and exported from customs warehouses. Therefore, licenses are needed in the normal way.
10d.8 Free Zone

A Free Zone is a designated area in which non-Community goods are treated as being outside the customs territory of the Community for the purpose of import duties. Free Zone goods mean that import duties (including agricultural charges) are not due provided the goods are not released for free circulation. Import VAT is also suspended until the goods are removed to the UK market or used or consumed within the Free Zone. UK Free Zones are controlled principally on the basis of the requirements of customs warehousing procedures, on an audit basis rather than physical checks on arrival. The normal rules relating to import and export prohibitions and restrictions apply to goods imported into and exported from free zones. Therefore, licenses are needed in the normal way. There are no special reliefs in Free Zones from other taxes, excise duties or local authority (council tax) rates. There are currently five free zones in the UK located at Liverpool, Prestwick, Sheerness, Southampton and Tilbury. To operate within free zones prior authorisation from Customs is required.
10d.9 Rejected Imports

An importer or end-customer may not be aware if the goods are correct until the consignment is opened. By that time the import has taken place and duty / VAT will have been paid. If the goods are not acceptable, for example they are broken or the wrong specification has been sent, it is likely that the Importer will want to reject the import. The supplier may send a credit note for the value of the goods, but there will also be a requirement to recover the duty and possible VAT. Under these circumstances, the Rejected Imports procedure can be of use to reclaim the duty (only if the goods are returned).
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10d.10 Onward Supply Relief (OSR)

OSR is a relief from import VAT for goods imported into the UK from outside the EU by a UK VAT registered trader in the course of an onward supply of those actual goods to another Member State. OSR provides a third choice where goods are imported into the UK (or are being removed from a customs procedure allowing suspension of customs duty and import VAT IPR suspension, TI, Processing under Customs Control, Free Zone and Customs Warehousing) that are destined for a customer in another Member State. Once entered to OSR in the UK the goods cannot be processed pending onward shipment. Customs duty is paid in the UK but the import VAT is relieved provided the goods are shipped on to a VAT registered trader in another Member State within 30 days. The requirement for the UK importer to make a VAT supply of goods means that this relief can only be used by import / customs clearance agents where they have been authorised either the buyer or seller of the goods to act as a VAT agent for that company. In particular, the import / customs clearance agent will be responsible for issuing tax invoices and complying with VAT accounting rules including raising EU sales lists (and where necessary supplementary declarations) and recording details on the VAT return in relation to those goods.
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10e. Statistic Calculations

Quantified by volume of trade our research covered a market segment equal to around one third of the total perishables market. We feel the data presented is a fair representation of the current status within the industry sector we appraised. The figures quoted are extrapolated up from our interview and analysis sampling and therefore are only representative of the sector studied and covered by this document. Further extrapolation could be carried out to reflect the industry as a whole, but this would be best executed after a further, larger, interview and analysis programme had been completed. Where required we have illustrated the calculation from which we were able to derive the quoted figures or statistics based upon our findings. As such, we do accept that a further larger analysis may either positively or negatively affect the final statistics.
Exceptions
These primarily apply to specific points where extrapolation of data can only be applied to either import or export markets by definition of the point in question ie. cost of documentation for each sector is different due to where documents are originated, used or required.
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10f. World Bank: Doing Business 2007 Extract

On the next few pages we have included a useful extraction from a document commissioned by the World Bank, Doing Business 2007, which indicates various statistics surrounding import and export costs, number of documents required and duration to import and export from 129 countries. The full document is available as a download from www.doingbusiness.org website.
Paying taxes Payments Time Total tax (number (hours rate per year) per year) (% of prot) 2 41 61 42 44 34 50 11 20 36 17 125 10 40 72 19 41 73 24 23 27 45 40 27 39 10 49 54 65 10 44 68 20 34 94 41 71 39 14 18 36 30 87 8 41 275 240 504 272 528 615 1120 107 272 1000 400 1188 160 108 270 274 1080 100 140 2600 616 270 140 121 1300 119 100 504 122 432 872 456 100 312 576 402 270 196 930 135 114 65 178 600 536 36.3 55.8 76.4 64.4 48.5 116.8 42.5 52.2 56.1 44.9 40.3 186.1 70.1 31.7 68.5 43.0 80.3 50.4 53.3 71.7 40.7 51.1 286.7 22.3 46.2 43.0 54.4 209.5 68.2 26.3 77.1 82.8 47.5 235.4 57.3 83.0 45.7 37.1 49.0 31.5 41.7 34.8 67.9 34.9 50.4 Trading across borders Cost Cost Documents Time to to export Documents Time to import to export export (US$ per to import to import (US$ per (number) (days) container) (number) (days) container) 7 7 9 6 5 6 7 6 4 7 7 7 5 7 8 10 12 5 6 7 7 9 12 8 10 3 4 9 7 7 6 6 9 8 12 7 9 7 5 3 15 7 7 12 8 66 34 15 74 13 16 34 9 8 69 35 33 7 13 35 39 26 22 37 18 26 69 80 36 38 7 18 63 87 20 18 34 28 64 50 36 21 26 20 5 25 11 17 20 20 2,500 818 1,606 1,800 1,056 1,470 1,600 795 803 2,275 902 1,472 1,350 1,800 980 1,230 1,110 1,150 524 895 1,233 1,215 3,625 736 524 700 533 1,502 1,860 510 335 1,745 1,481 3,120 1,732 660 781 1,250 713 540 2,035 1,477 770 1,090 1,014 11 12 9 10 6 7 6 5 5 18 16 7 6 14 11 14 12 7 9 6 10 13 14 12 14 4 9 19 14 9 12 11 8 12 15 13 19 9 8 3 14 13 11 11 8 88 34 22 85 15 21 37 12 9 79 57 36 9 15 48 42 36 25 42 24 25 66 124 45 51 10 16 60 111 24 22 35 22 92 62 42 48 18 22 5 26 17 17 41 25 2,100 820 1,886 2,225 1,467 1,750 1,750 945 843 2,575 1,287 1,472 1,300 2,130 1,452 1,950 1,230 1,150 1,159 1,145 1,201 1,700 3,705 816 1,360 850 533 1,572 2,400 510 375 1,773 1,481 3,308 2,201 660 1,395 1,250 833 540 2,035 1,512 990 1,090 1,049
Economy Afghanistan Albania Algeria Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bangladesh Belarus Belgium Belize Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Central African Republic Chad Chile China Colombia Comoros Congo, Dem. Rep. Congo, Rep. Costa Rica Cte dIvoire Croatia Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt
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Paying taxes Payments Time Total tax (number (hours rate per year) per year) (% of prot) 66 48 18 11 20 34 19 33 27 47 35 32 35 33 30 50 55 47 45 53 48 4 24 18 59 52 28 13 8 33 15 72 15 26 34 17 16 27 14 89 31 8 33 21 13 54 25 29 35 1 60 20 61 7 49 224 212 216 104 212 145 264 128 272 376 423 105 304 204 140 294 416 208 288 160 424 80 304 140 264 576 292 312 76 225 360 414 350 101 156 432 120 290 118 204 180 320 208 352 162 96 304 878 190 0 270 128 696 158 552 27.4 62.4 86.3 50.2 32.8 40.1 47.9 68.2 48.3 291.4 37.8 57.1 32.3 60.2 42.8 40.9 49.4 47.5 44.2 40.5 51.4 28.8 59.3 27.9 81.1 37.2 46.4 38.7 25.8 39.1 76.0 52.3 52.8 31.9 45.0 74.2 34.4 30.9 55.7 67.4 32.5 42.6 37.3 25.6 48.4 43.5 43.2 32.6 35.2 9.3 50.0 66.6 104.3 24.8 37.1
Economy El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong, China Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kuwait Kyrgyz Republic Lao PDR Latvia Lebanon Lesotho Lithuania FYR Macedonia Madagascar Malawi Malaysia Maldives Mali Marshall Islands Mauritania Mauritius Mexico
Trading across borders Cost Cost Documents Time to to export Documents Time to import to export export (US$ per to import to import (US$ per (number) (days) container) (number) (days) container) 7 6 11 5 8 7 4 4 4 4 8 4 5 7 6 9 7 8 8 8 6 2 6 7 10 7 5 10 5 5 8 6 5 7 14 11 3 5 5 .. 12 6 6 6 5 10 8 8 6 8 10 .. 9 5 6 22 26 69 3 46 22 7 15 19 19 13 6 21 29 19 20 43 27 42 58 28 6 23 15 27 25 26 105 7 15 15 19 11 24 93 25 11 12 18 .. 66 11 22 46 6 32 48 44 20 15 66 .. 25 16 17 515 1,203 935 640 1,700 418 420 886 4,000 422 1,370 731 822 1,328 858 1,785 510 1,656 3,606 1,298 500 425 922 469 864 546 700 1,010 1,146 340 1,253 1,750 789 720 2,780 1,980 1,300 780 675 .. 1,420 965 969 1,270 704 1,070 982 1,565 481 1,000 1,752 .. 3,733 683 1,049 12 6 18 6 11 12 3 5 10 8 11 4 9 11 6 7 12 9 11 9 15 2 10 6 15 10 11 19 4 5 16 7 7 12 18 9 2 8 11 18 16 5 12 9 12 10 11 16 12 9 16 9 7 7 8 30 50 69 5 52 22 7 15 26 23 15 6 42 34 20 33 56 26 54 60 39 5 24 15 41 30 38 135 14 16 21 20 11 22 87 45 8 12 27 127 78 12 34 51 17 35 48 60 22 21 61 15 40 16 26 515 1,203 1,185 640 2,455 1,170 420 886 4,031 494 1,370 750 842 1,443 984 1,985 2,785 1,749 3,656 1,304 670 425 1,137 443 1,244 675 1,220 2,060 1,139 700 1,291 1,350 847 955 2,880 2,325 1,300 1,040 1,170 3,032 1,690 965 752 1,270 782 1,070 1,282 1,590 428 1,784 2,680 2,115 3,733 683 2,152
52
Paying taxes Payments Time Total tax (number (hours rate per year) per year) (% of prot) 9 44 42 75 28 36 34 35 22 9 64 44 35 3 14 47 18 59 44 33 53 59 43 7 17 89 23 43 36 42 14 59 41 15 20 16 30 34 33 23 7 61 23 16 21 66 17 34 5 13 21 15 55 48 46 128 250 204 208 468 230 .. 408 250 70 240 270 1120 87 52 560 128 560 198 328 424 94 175 328 140 198 256 168 224 424 75 696 168 76 399 30 344 272 80 350 602 256 368 41 208 180 199 104 122 68 336 1104 224 248 104 61.3 48.8 32.2 33.9 52.7 39.2 25.6 32.8 48.1 36.5 66.4 46.0 31.4 46.1 20.2 43.4 74.6 52.4 44.3 43.2 40.8 53.0 38.4 47.0 40.9 48.9 54.2 41.1 22.1 55.2 14.9 47.7 38.9 48.8 277.0 28.8 48.9 39.4 33.6 38.3 59.1 74.9 52.7 31.5 33.6 37.1 27.8 39.5 57.0 24.9 35.5 35.8 87.0 45.0 40.2
Economy Micronesia Moldova Mongolia Montenegro Morocco Mozambique Namibia Nepal Netherlands New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Palau Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Romania Russia Rwanda Samoa So Tom and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands South Africa Spain Sri Lanka St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Sudan Suriname Swaziland Sweden Switzerland Syria Taiwan, China Tajikistan Tanzania Thailand
Trading across borders Cost Cost Documents Time to to export Documents Time to import to export export (US$ per to import to import (US$ per (number) (days) container) (number) (days) container) .. 7 11 6 6 6 9 7 5 5 5 .. 11 4 9 8 7 9 5 9 7 6 6 4 9 4 8 14 7 8 5 6 6 6 7 5 9 9 8 5 4 8 8 5 7 12 7 9 4 4 9 8 14 3 9 .. 33 66 19 18 39 32 44 7 8 36 .. 25 7 23 24 20 16 30 34 24 18 19 14 15 14 39 60 15 27 13 22 11 17 29 6 20 20 15 31 9 25 11 9 15 56 16 9 6 17 40 14 72 24 24 .. 1,185 3,007 1,515 700 1,516 1,672 1,599 875 355 1,020 .. 798 518 987 996 860 920 584 685 800 1,336 2,260 495 535 1,300 2,237 3,840 1,120 490 654 978 1,240 1,842 2,075 382 1,015 1,070 805 850 1,050 797 706 1,053 756 1,870 905 1,857 831 1,238 1,300 747 4,300 822 848 7 7 10 8 11 16 14 10 4 9 5 19 13 4 13 12 9 9 10 13 13 7 7 9 10 4 8 20 8 10 9 10 8 7 7 6 8 11 5 9 5 13 8 8 6 13 7 14 3 5 11 8 10 10 12 21 35 74 17 30 38 25 37 8 13 38 89 45 7 27 19 27 13 32 31 31 20 26 17 19 14 38 95 19 29 34 26 12 19 33 3 21 24 12 34 10 27 13 19 13 83 15 35 6 18 49 14 44 39 22 895 1,285 3,030 1,715 1,500 1,616 1,549 1,800 950 555 1,020 3,266 1,460 468 987 1,005 860 920 642 1,077 820 1,336 2,260 994 535 1,200 2,237 4,080 1,265 577 604 1,674 1,440 1,842 2,218 333 1,050 1,107 788 850 1,050 789 756 1,163 1,354 1,970 815 1,950 831 1,333 1,962 747 3,550 917 1,042
53
Paying taxes Payments Time Total tax (number (hours rate per year) per year) (% of prot) 15 51 22 28 45 18 31 98 15 7 10 41 130 32 68 32 50 32 36 59 640 270 164 114 268 254 237 2185 12 105 325 300 152 120 864 1050 154 248 131.5 216 59.2 48.3 56.2 37.2 58.8 46.3 32.2 60.3 15.0 35.4 46.0 27.6 122.3 14.4 51.9 41.6 31.5 48.0 22.2 37.0
Economy Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Venezuela Vietnam West Bank and Gaza Yemen Zambia Zimbabwe
Trading across borders Cost Cost Documents Time to to export Documents Time to import to export export (US$ per to import to import (US$ per (number) (days) container) (number) (days) container) 6 7 6 5 5 9 12 6 4 5 6 9 10 9 8 6 7 6 16 9 32 32 12 9 18 20 42 33 18 12 9 22 44 12 32 35 27 33 60 52 700 463 265 693 770 513 1,050 1,009 392 676 625 552 2,550 1,565 525 701 705 1,129 2,500 3,175 11 9 9 7 8 13 19 10 6 4 5 9 18 16 13 9 7 9 19 15 37 41 17 13 29 25 67 46 16 12 9 25 139 14 67 36 41 31 62 66 700 695 360 1,093 600 735 2,945 1,025 398 756 625 666 3,970 1,975 900 887 755 1,475 2,640 4,565
54
11. Sources
Trade Statistics:
UK Trade Stats Department for Environment, Farming and Rural Affairs (DEFRA) Her Majesties Customs and Revenue (HMRC) UNECE UNCTAD HPL Hellmann Perishable Logistics IATA International Trade Single Window World Trade Organisation Procounto ENA UK Port Health Korea Trade Stats Swedish Customs UK Meat Statistics UK Sea Fish Statistics UKSIEM Department for Trade and Industry Ministry of Commerce, Industry and Energy, Republic of Korea Thailand Ministry of ICT Kareltek SUNAT (Peruvian Customs) Chilean Fresh Fruit Association Juan Tirado, Pillay Limited Servicio Agrcola y Ganadero Singapore Department of Statistics 63 National University of Singapore David L Hummels, Department of Economics, Purdue University The World Bank
Contributors:
Grateful thanks to all those who took part in the interview process and so willingly made available company data and documentation which enabled the compilation of this document.
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Simplifying International Trade
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Whilst every effort is made to ensure that the information given herein is accurate, Ltd. accepts no legal responsibility for SITPRO Ltd. SITPRO is a company limited by guarantee any views expressed orEngland implied or& for any errors, Registered in Wales No: omissions 4188890 or misleading statements in that information caused by negligence or otherwise. Copyright SITPRO Ltd. 2008
Disclaimer: Whilst every effort is made to ensure that the information given herein is accurate, SITPRO Ltd. accepts no legal responsibility for any views expressed or implied or for any errors, omissions or misleading statements in that information caused by negligence or otherwise.
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Sitpro: The Cost of Paper in The Supply Chain: "Project Hermes" Perishable Foods Sector Research Report

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SITPRO

Simplifying International Trade

SITPRO: The Cost of Paper in the Supply Chain

estimated to be around 11% of the supply chain value per annum;

costs are invisible or hidden to participants;

is estimated at 126 million per annum;

products than is necessary at the point of purchase.

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

2.2 Study approach and methodology

SITPRO: The Cost of Paper in the Supply Chain

survey of main grocery retailers views.

2.3 Specific research commodity range

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

3. The Perishable Food Supply Chain

3.2 The core product

SITPRO: The Cost of Paper in the Supply Chain

3.3 Supply chain participants

SITPRO: The Cost of Paper in the Supply Chain

3.4 Size of industry

SITPRO: The Cost of Paper in the Supply Chain

3.6 Perishable food supply chain structure in brief

SITPRO: The Cost of Paper in the Supply Chain

3.7 The market

3.8 Costs and charges

SITPRO: The Cost of Paper in the Supply Chain

3.8.2 Shipping cost illustration - North Atlantic (Source HPL 2003):

SITPRO: The Cost of Paper in the Supply Chain

3.9 Documentation overview

3.10 Paper wastage and the environment

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

4.1 UK Perishable Food Imports 2005 - Total 25,960 million

Coffee & Tea 1.6% (413m)

4.2 UK Perishable Food Exports 2005 - Total 10,761 million

(Source UK Trade Stats & WTO 2005)

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

5.1 General administration

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

SITPRO: The Cost of Paper in the Supply Chain

7. The Cost of Doing Business in the UK

only fuel as required in the UK;

shown clear evidence of preferential cargo rates;

7.1 Costs - Documents

SITPRO: The Cost of Paper in the Supply Chain

(importers, freight forwarders and authorities)

SITPRO: The Cost of Paper in the Supply Chain

8. Quoted statistics and examples

It is estimated that 7% of the gross consignment cost is logistics document administration.

SITPRO: The Cost of Paper in the Supply Chain