Kempten: With its new customs service Smart Border Connect, the logistics provider DACHSER is giving British exporters smoother access to the EU market. The intelligent logistics solution simplifies and speeds up customs clearance and thus reduces export costs.
In 2023, the DACHSER European Logistics network alone transported more than 64 million shipments within Europe – without domestic market borders, which meant no customs clearance and none of the considerable administrative and regulatory expense that goes with it. For EU member countries, seamless groupage logistics throughout Europe sounds like the most natural thing in the world. However, since the UK’s exit from the EU four years ago, this is no longer the case. A major challenge for which DACHSER UK has now developed its own solution: Smart Border Connect. “Smart Border Connect provides a framework for DACHSER to transport goods on behalf of UK customers mostly via the French border and on to the rest of Europe— quickly, reliably, and smoothly while also handling all matters relating to customs, taxes and duties. This is a great benefit for UK exporters and helps them to maintain their competitiveness against their European competitors,” comments Mark Rollinson, Managing Director of DACHSER UK.
Preclearance to minimize transit time
The two different Smart Border Connect service options – Connect40 and Connect42 – are based on the use of the delivered duty paid (DDP) Incoterms. Since DDP makes the sender responsible for customs clearance duties and VAT, the customer no longer has to pay to receive the shipment. The goods can then be delivered in free circulation just like a domestic shipment and seamlessly integrated into DACHSER’s European network with its connections to all EU countries—with no increase in transit time or administrative effort. The services not only ensure daily departures from every corner of the UK, but also a fast connection to all EU destinations.
“Smart Border Connect is a tailored solution that DACHSER developed to help UK exporters minimize the effects of Brexit for their EU customers,” says Alexander Tonn, COO Road Logistics. “Thanks to preclearance, they can now offer their European target markets transit times similar to the pre-Brexit era.” “Since we introduced Smart Border Connect, we’ve experienced a surge in demand from existing and new customers alike. Many have decided to adopt DDP Incoterms for their shipments in order to benefit from DACHSER’s transit times, which are the shortest on the market,” adds Mark Cosgrove, Sales and Commercial Manager for the UK and Ireland.
According to Alexander Tonn, “Smart Border Connect is not only of interest for the UK, but to third countries as well—for instance, to integrate additional non-EU countries like Switzerland and Norway.” It’s going to get really exciting when DACHSER integrates its European Logistics and Air & Sea Logistics business fields even more closely with a view to offering a global door-to-door groupage solution. “With Smart Border Connect in the toolbox, this knowledge has the potential to bring old and new growth markets around the world closer together and make them more efficient,” predicts Tonn.