Information That May Impact Domestic and International Household Goods ShipmentsJanuary 15, 2018
UAE and Saudi Arabia Customs Changes: 5% VAT Implemented
January 9, 2018 – Dubai Customs released new information issued by the Federal Tax Authority that requires the shippers depreciated values to be declared for all import sea and air shipments. They will impose a 5% VAT to the value as assessed by customs.
Consequently, Arpin is required to submit the shippers depreciated values for this as a guide and will provide all accounts and offices with a VAT receipt as backup. Currently, we are focusing on import shipments to request the values from shippers for inbound cargo en-route and arriving soon. In regard to Saudi Arabia, there will be a 5% VAT applicable on imports.
Dubai Customs has implemented that importers unregistered for VAT must settle the VAT payable on goods before they may be released, in addition to verification of their registration in the Federal Tax Authority system. Once this is achieved, a customs declaration should be prepared using the importer’s customs code.
Unregistered importers should use their own customs code and will be considered as an agent acting on behalf of the importer and will be responsible for the payment of VAT. An issued statement must be made including details that can be found at https://tax.gov.ae/index.aspx.
Service Interruption Alert: Delays Expected for All Air Shipments From Egypt
Egypt is currently increasing its exports of fruits and vegetables. Due to the perishable nature of the produce, shipment priority will be given by airlines for these exports.
As a consequence, we are advising customers with household goods shipments transporting by air to expect delays between 10 to 15 days.
We will continue to monitor the situation closely and will do everything possible to minimize delays for relocating families.
The United States Mandates Implementation of Electronic Logging Devices
The U.S. Government made Electronic Logging Devices (ELDs) mandatory on December 18, 2017. ELDs are intended to make U.S. roads safer by enforcing hours of service (HOS) limits on commercial drivers. They may drive a maximum of 11 hours, at which time they must take 10 hours off duty. Drivers must not exceed 60/70 hours in 7/8 consecutive days. These rules have not changed, but drivers have always self-reported their Hours of Service (HOS) using paper logs.
One concern in the moving industry was that the ELD mandate was designed with freight truck drivers as the model—those who pick up their goods at one loading dock and deliver them to another. However, in the moving business, the driver’s pickup and delivery locations are never the same. The time for packing and loading a family’s household goods can vary widely, as can the amount of time a driver may have to wait at a port to pick up an international shipment. It is not unusual for a driver to have to incur several hours of waiting time for service at terminals throughout the country. Unfortunately, the hours spent waiting in port will also count against a drivers hours of service.
Between 2016 and 2017, Arpin and its supplier partners gradually introduced and tested ELDs, educating drivers in their use and listening to their feedback. Drivers also started using the ELD software proactively to plan more efficient trips. They plotted rest stops along their routes so that they could comfortably remain within their HOS limits. This planning contributed to shorter travel and enhanced safety, as well as reduced fuel consumption and emissions.
Your Arpin service team will continue to proactively monitor and effectively plan all shipments to maximize efficiencies and service all relocating families in a timely manner while adhering to U.S. HOS regulations.