Trade Link Customs & Logistics combines the experience of Agata Borowka and her partner, George Warr.
With decades of customs experience and four languages between them, they’re well-equipped to support businesses to move their goods into and between European countries, navigating movements from e-commerce to temporary admissions, in industries including manufacturing, consumer goods, fashion and electronics.
Borowka shared how her and Warr founded the business, the kind of support they provide for their clients and how being a business member of the Chartered Institute of Export & International Trade helps them to deliver it.
Early days
The idea was formed in the wake of Brexit, Borowka says, as they observed a number of small firms struggling with adherence to new customs regulations and systems.
The transition from the Customs Handling of Import & Export Freight (CHIEF) system to the Customs Declaration Service (CDS), the introduction of the Import Control System 2 in Europe, and most recently the Obligatory Logistics Envelope (ELO) for road and ferry freight crossing the English Channel, has been “overwhelming” for many firms.
“Everybody understands that this has to happen for the safety and security, but there are a lot of regulations, a lot of licences and a lot of mistake people fall into”, says Borowka.
Common challenges
Supporting many firms that are getting to grips with exporting, Borowka notes a number of common mistakes that businesses should avoid.
“Many inexperienced importers don’t realise that you need to pay import VAT, and that they need to also add the transport cost when calculating the import VAT rate”, she says.
Incoterms also tend to pose a problem, with many traders not understanding the responsibilities that each of the 11 terms confers.
“It’s used incorrectly by just about everyone in the supply chain”, she says of Delivered Duty Paid (DDP) Incoterm, one of the most commonly used, which places full responsibility on the seller to cover duties, taxes and import fees.
Unforeseen costs by the seller are a common pitfall. VAT can often be overlooked, with many sellers not realising that they will typically need to be registered in the buyer’s country (or export destination) to reclaim VAT.
Registration may also be necessary for the export destination to allow the seller to be the ‘Importer of Record’ – a necessity under DDP.
“It definitely needs to be explained a little bit more to avoid potential problems.”
Shipping disruption
The US/Israel-Iran conflict is one area posing more problems than solutions currently. A notable impact has been the increasing cost of shipping, Borowka says, noting that moving goods on common routes used by the business’ regular customers has risen steeply.
“On shipments from India and China,” she says, “we’ve experienced delays and those rates are skyrocketing.”
Although ocean freight rates have stayed remarkably steady in light of disruption in recent months, Borowka says the volume of fuel that needs to pass through the Strait of Hormuz has had a knock on impact on costs.
She said her business partner, who handles freight, has reported surcharges as high as 25% as a result of escalating fuel costs.
Small business challenges
Borowka says that patterns observed among UK businesses post-Brexit, also hold true for EU firms. Smaller firms in particular tend to struggle with the volume of paperwork and the different requirements associated with selling internationally.
“By the time I finish explaining what needs to be in place,” she jokes, “the client is halfway to saying ‘well, maybe let’s not, it’s too demanding, it’s very difficult’”.
However, she notes that the sector is ultimately still “very robust”, with many businesses still seeking to trade internationally.
“It’s always been a very dynamic environment. People who handle shipments are known for being very flexible and able to adjust.
“Everybody's looking for solutions.”
Strong customs foundations
This resilience is something that she’s personally familiar with. The stringency of Polish customs measures, she adds, goes some way to explaining why the sector has so many strong professionals from her home country.
“It’s a really, really demanding environment” she says, explaining that bordering both Russia and EU member states has necessitated robust checks for controls compliance purposes.
“We always have to handle both sides.”
This, she says, has contributed to the professionalisation of the sector. To become a customs agent in Poland “you would need a law degree or economics degree, and to pass a very difficult customs agent course”, as Borowka herself did at the start of her career.
It’s only in recent years, following the increasing compliance requirements introduced on EU-UK trade post-Brexit, that formal customs training has become popular in the UK.
This wave of UK professionalisation, which includes initiatives like the Chartered Institute of Export & International Trade Approved Customs Practitioner standard, is common practice in Poland.
The ‘best possible companion’
Despite these credentials, Borowka says she still appreciates the Chartered Institute’s technical helpline to sense-check decision making and illustrate the credibility of Trade Link Customs & Logistics to the wider trade community.
Membership has been “genuinely transformative for both our business and our professional development”, she says.
“The Chartered Institute has played a significant role in helping our team remain informed, compliant and confident in the advice we provide to clients.”
Member-exclusive Lunchtime Learning webinars, digging deep into the technicalities of regulatory changes, alongside practical guidance from training courses and a stream of how-to articles, have set the business up for success, she adds.
“When we were starting out, one of the first things that we discussed was making sure that we gave ourselves the best possible support for this venture and the Chartered Institute was the answer.
“I think this is the best possible companion for us… In a regulatory environment that changes constantly, having a trusted and authoritative source of information is invaluable.”
Additionally, her and Warr have enjoyed the sense of “professional belonging” she feels being a part of “a vibrant community of trade and customs professionals”.
“International trade and customs compliance can often feel highly specialised and complex, and it is enormously reassuring to be part of a community of practitioners who are committed to maintaining the highest standards.”
You can learn more about becoming a member of the Chartered Institute of Export & International Trade here.
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