DHL/BCC Trade Confidence Index 3rd Quarter

7/31/2019 DHL/BCC Trade Confidence Index 3rd Quarter

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The DHL / British Chambers of Commerce

TRADE CONFIDENCE INDEX

3RD QUARTER 2012


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CONTENTS

THE BRITISH CHAMBERS OFCOMMERCE

The British Chambers o Commerce(BCC) is the national body or aninfuential network o AccreditedChambers across the UK.Representing 104,000 businesses,who together employ more than 5million employees, no other businessorganisation has the geographicspread or multi-size, multi-sectormembership that characterises the

Chamber Network. Every Chambersits at the heart o its local businesscommunity, providing representation,services, inormation and guidanceto member businesses and the widerlocal business community.

For more inormation visit:

www.britishchambers.org.uk

DHL THE LOGISTICS COMPANY FORTHE WORLD

DHL is the global market leader in thelogistics industry and The Logisticscompany or the world. DHL commits itsexpertise in international express, air andocean reight, road and rail transportation,contract logistics and internationalmail services to its customers. A globalnetwork composed o more than 220countries and territories and about275,000 employees worldwide oers

customers superior service quality andlocal knowledge to satisy their supplychain requirements. DHL accepts itssocial responsibility by supporting climateprotection, disaster management andeducation.

DHL is part o Deutsche Post DHL.The Group generated revenue omore than 51 billion euros in 2010.

For more inormation visit:

www.dp-dhl.com

44 Introduction/Methodology.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4. 2

44 Executive4Summary4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4 3

44 Key4Indicators4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4. 4

44 Firm4Size4Breakdown44.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4. 7

44 Documentation4Data44.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4. 8

44 In4Focus44Exchange4Rates44.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4. 9

44 Country4Guide4-4Russia44.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4.4 10


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FOREWORD

This is the sixth edition o the DHL/BCC Trade Condence Index and as I refecton the gures or this quarter, it is clear that the environment or exporters haschanged signicantly since our last report. The long-awaited re-balancing o the UKexport sector, towards the aster-growing economies o the developing world nowseems well and truly underway. But exporters ace a challenging environment whenit comes to accessing the working capital they need to uel growth and exportorders. It is also clear that continuing problems in the Eurozone have had an impact.

The latest trade gures rom the Oce or National Statistics show UK exports tonon-EU countries have grown to be larger than exports to the EU - exports to theEU have, or many years, been much stronger. It is welcome that British business isbusting a gut to grow, increasingly breaking into new markets and expanding their

presence in countries like China, India and Brazil.

But as the results o this quarters TCI show we must always be vigilant aboutthe environment exporters ace and ensure they are backed by the best possiblesupport. While condence in the longer-term outlook or turnover and protabilityis on the up, increasing concern about cash fow and weakening balances or exportsales and orders in the near-term, underscore the importance o taking action now

to support exporters. The BCC welcomed the government announcements in September, to increase undingor tradeshow support and to create a British Business Bank. We also welcome the statements made by the PrimeMinister recognising that enterprise, wealth creation and exports are central to uture o Britain. The challenge is toensure that policies are implemented quickly and eectively.

This year has been extremely challenging or exporters, that much is clear.As we go into the last quarter o 2012, we can see that on the whole, exportersbalances remained positive despite orders decreasing. This quarter, orexample, 39% o exporters reported that their export sales increased, whichwas one o the higher balances rom the last 12 months o reports indicatinggentle growth despite an uncertain trading environment.

However, despite the broad export indicators delivering better than expectedresults, there were other indications in the bigger picture that suggested

diculties or rms trading internationally. Exporters concerns includedcashfow, cost pressures and employment although in Q3 2012, we ound thata previous area o concern, exchange rates, had eased. This is encouraging newsconsidering that much was made o Sterling gaining strength against the Euroas the Eurozone debt crisis re-erupted, causing worries that this would impactexport competitiveness.

It was also promising to see that exporters have longer term condence aboutturnover and protability over the next 12 months, in particular or manuacturing exporters with micro andsmaller businesses eeling this more than their larger counterparts.

So despite continuing to ace a dicult market, it appears that exporters are still extending their orderbooks which is creating stronger demand or UK products rom overseas markets. Those exportersmaking inroads overseas, and even those businesses just starting out, despite the vagaries o international

trade, are those that are directly contributing to a meaningul recovery or the UK. They need our supportrom all quarters i they are to continue to succeed.

John Longworth

Director GeneralBritish Chambers of

Commerce

Phil Couchman

CEODHL Express UK & Ireland


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2

INTRODUCTION METHODOLOGY

The DHL/BCC Trade Condence Index(TCI) is a measure of the UKs exportinghealth. By analysing trends in trading

activity and key factors of exportingrms performance, the TCI gives atruly comprehensive picture of the UKsinternationally trading business community.The index casts new light on exporterslevels of condence and employmentintentions, and paints a picture of regionalexporting performance.

Those wishing to obtain more informationon the Indexs methodology and datasources are invited to contact the British

Chambers of Commerce.

The TCI generates its results rom two datasources:

Questionnaire responses submitted by over1,500 exporters, derived rom the BCCsQuarterly Economic Survey (QES). The QES isthe largest and most representative businesssurvey o its kind.

Data generated rom exporting activity thatrequires supporting documentation.

THE SURVEY

Fieldwork or the survey was conductedbetween 20 August and 12 September.Results are split into the ollowing rm

size categories:

0-9 employees (micro rms)

10-49 employees (small rms)

50-249 employees (medium rms)

250+ employees (large rms)

Unless otherwise stated, results reer to allexporters responding to the survey. Whereresults are split between the service andmanuacturing sectors, this is stated clearly inthe text. Results that are not split by rm sizeare weighted by the contribution o rm sizeto total exporting turnover.

Results are represented by either a balancegure or a pure percentage gure. Balancegures are determined by subtracting thepercentage o companies reporting decreasesin a actor rom the percentage o companiesreporting increases. Where a balance gureis positive it represents growth; where it isnegative, it represents contraction.

EXPORT DOCUMENTATION DATA

Many types o exports require supportingand commercial documentation to ensurethe timely delivery o goods and timelypayment. Chambers o Commerce administerthis documentation, and have amassed asignicant dataset around UK goods exportsas a result.

The TCI uses data collected rom this processto show both an index o documentation andregional comparisons o exporting activity.

Written4and4researched4by:

Tom Nolan, Policy Advisor

Mike Spicer, Senior Policy Advisor

Acknowledgements:

Sarah Jarvis, design and layout

Printed by The Javelin Partnership Ltd.Printed on 75% recycled paper rom amanaged sustainable source, using pulpthat is TCF and ECF and printed withvegetable soya based inks.www.thejavelinpartnership.comTel: 0118 907 3494

The4British4Chambers4of4Commerce

65 Petty FranceSt. Jamess ParkLondonSW1H 9EUTel: 020 7654 5800Fax: 020 7654 5819Email: [email protected]

www.britishchambers.org.uk


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3

EXECUTIVE4SUMMARY Q342012

44 Export4balances4for4sales4and4orders4fell4across4sectors4but4remained4positive

44 Concerns4about4exchange4rates4eased4for4both4services4and4manufacturing

44 Increase4in4longer-term4condence4for4both4turnover4and4protability

The results o the Q3 2012 DHL/BCC Trade Condence Index point to weakening activity orexporting rms with sales and orders balances down on the quarter. The gures returned are stillin positive territory, indicating expansion, but the downward movement or exports, domesticperormance and weakening employment expectations indicate that exporters are operating in adicult environment o continuing global uncertainties. The signicant increase in cash fow concernsor services is particularly disappointing: BCC research rom earlier this year revealed the sensitivity oexport perormance to cash fow and access to working capital.

Despite these challenges, exporters do remain condent about increasing turnover and protability(see Figure One) over the next 12 months. Condence remains rmly in positive territory ormanuacturing and services exporters, with balances improving on the quarter. Other bright spots

included alling cost pressures, improved domestic balances or manuacturing exporters andreceding concerns about exchange rates.

44 Ensure4swift4and4easy4access4to4the4new4funding4package4announced4to4expand4the4Governments4Tradeshow4Access4Programme4and4to4discount4UKTIs4Overseas4Market4

Introduction4Service4(OMIS)4reports. This new unding announced in September is asignicant improvement on existing resources and i access is easy it will help moreSMEs export.

44 Empower4the4Business4Bank4to4originate4loans4and4lend4directly4to4businesses. Increasingconcern about cash fow among services exporters underscores the importance o wideningaccess to working capital or SMEs at reasonable cost. For viable businesses unable tosecure working capital through commercial banks, the announcement by government that itwill create a British Business Bank will bolster condence. Nearly 60 per cent o businessessurveyed in a recent BCC snap poll responded that the creation o this new institution wouldincrease their condence o accessing nance in the uture. Initially the new bank will needto work through existing commercial lenders which may put o some exporters who still donot believe that the high-street banks will help them access the capital they need to grow.

To ull its potential, the Business Bank should be empowered to originate loans and lenddirectly to businesses.

To do more to support Britains exporting potential, the report recommends the ollowing:

-50

-40

-30

-20

-10

0

10

20

30

40

50

Q3 12Q1 12Q3 11Q1 11Q3 10Q1 10Q3 09Q1 09Q3 08Q1 08Q3 07

----Recession---- ----Recession----

%b

alance


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4

KEY4INDICATORS Q342012

EXPORT SALES

The balance o exporters reporting an increase in sales in the third quarter o the year ellseven points to +25%. While this is a sharp all rom Q2 2012, it is still one o the highestbalance gures across the series. This is now the third quarter in a row that the balance gurehas been above 20%. Figure Two shows that ater a relatively strong upward trend ollowingthe 2008 recession, 2011 saw a all o rom the recovery, but 2012 has seen a modest upturn.

When the balance gure is broken down into its component parts, it shows that 39% oexporters reported that their export sales increased in Q3 2012. 15% o respondents stated thatthey decreased, a all o only one percentage point rom the gure recorded in Q2 2012.

In the services sector the balance o exporters reporting that sales had increased was+31%, a all o nine points on the quarter. The equivalent gure in the manuacturing sectorwas +14%, a all o seven points rom Q2 2012. Despite the all in the services sector, it stillrepresented a historically high gure and is the second highest balance gure in the series.The manuacturing sector balance ell or the second quarter in a row and is the lowest guresince Q3 2011.

44 Export4sales4indicator4falls4but4still4high4by4historical4standards.

44 There4is4a4fall4in4the4number4of4rms4expecting4to4take4on4new4staff4but4it4is4still4the4third4

highest4gure4in4the4series.44 The4balance4of4rms4expecting4to4raise4prices4over4the4coming4three4months4increased4by4

seven4percentage4points.4

-30

-25

-20

-15-10

-5

0

5

10

15

20

25

30

35

40

Export Sales

Q3 12Q1 12Q3 11Q1 11Q3 10Q1 10Q3 09Q1 09Q3 08Q1 08Q3 07

-----Recession-----

%B

alance

-----Recession-----


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5


EMPLOYMENT EXPECTATIONS

The overall employment expectations balance ell three points to +16%, which is still very high byhistorical standards. In common with other surveys, it shows that despite the drop-o in businessactivity, many rms are still taking on sta.

Splitting the balance gure into its component parts reveals that the percentage o rms reportingthat they expected to increase sta ell rom 33% to 31%. The percentage o rms expecting todecrease sta increased marginally, rom 13% to 15% (see Figure Three), and those that expectedto keep stang levels the same did not change rom the previous quarter and remains at 54%.

Looking at the sector breakdown, manuacturers employment expectations increased ourpercentage points to +17%, while the gure or service sector rms ell eight points to +16%.

0

10

20

30

40

50

Q3 12Q1 12Q3 11Q1 11Q3 10Q1 10Q3 09Q1 09Q3 08Q1 08Q3 07



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6


PRICES

A balance o +18% o respondents stated that they were expecting to raise prices over thecoming three months. This is an increase o seven percentage points on Q2 2012 but is stilllow by historical standards.

Breaking the result down by sector shows that this increase was driven largely by themanuacturing sector, which saw a rise in the prices balance rom -2% to +15%. There was aslight increase in the service sector prices balance, rom +19% to +20%.

Figure Four shows how exporters responded to the question o what actors were addingpressure to raise prices. Raw material costs and other overheads are the biggest pressures.However, this was the seventh quarter in a row that the percentage o rms reporting rawmaterial costs ell. It is now at 40% and is the lowest since Q3 2009.

0

10

20

30

40

50

60

Other OverheadsFinance CostsRaw MaterialsPay Settlements

%o

frms

Figure Four: Percentage of rms reporting factors adding to price pressures


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7

FIRM4SIZE4BREAKDOWN4 Q342012

44 All4rm4size4categories4experienced4a4fall4in4their4export4order4balances.

44 Out4of4the4eight4rm4size4categories4spilt4across4the4manufacturing4and4service4

sector,4only4three4had4an4increase4in4their4export4order4balance.4

When all respondents to the survey were counted together, there was a all o nine percentagepoints in the export orders balance or this quarter. The gure is now +21%. When this is brokendown into the our rm size categories, the results show that all categories experienced a similardrop in their export orders balance gure.

As Figure Five shows those rms with over 250 employees saw a all rom +21% to +20%, mediumrms (50-249 employees) saw a all rom +29% to +21%, small rms (10-49 employees) recorded adrop rom +31% to +22% and micro rms (zero to nine employees) saw a all rom +31% to +24%.

Within the manuacturing sector there was a welcome rise in the percentage balance o microand large rms that recorded an increase in export order. The balance gure rose to +18% and+14% respectively. However, the increases were oset by large alls in the other categories. Itwas most noticeable with medium sized rms who export order balance ell 20 percentagepoints to -2%.

With the exception o medium rms (which rose one point to +40%), all the other categories inthe service sector recorded a all. It was most noticeable or large rms. Their balance gureell to +24% and is the lowest since Q4 2011.

0

5

10

15

20

25

30

35

Q3 12

Q2 12

250+50-24910-490-9

Figure Five: Export Orders Balance

%f

orQuarter


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8

8

DOCUMENTATION4DATA4 Q342012

44 The4documentation4volumes4fall4but4are4high4by4historical4standards4

NATIONAL DOCUMENTATION VOLUMESAlthough the documentation volumes ell or the second quarter in row, the levels are still veryhigh by historical standards. The level is now the third highest since records began. There was aall o -1.31% on Q2 2012 but compared to the same quarter in 2011 there was an increase o 3.07%.

REGIONAL PICTURE

The regional picture broadly refects the national picture, with a number o regions experiencinga quarter-on-quarter decline. However, ewer regions experienced a decline when compared toQ3 2011. The only regions to record an increase in both the quarterly and yearly documentationvolumes were the East Midlands and Yorkshire and the Humber. This quarter is the highest gurethat the East Midlands has every recorded and or the Yorkshire and the Humber it is the highestsince Q3 2008.

PERCENTAGE CHANGE

Index number 2007 = 100 Most recent quarter on a

year earlier

Most recent quarter on

previous quarter

Volume index of export

documentation 113.2 3.07% -1.31%

-15

-10

-5

0

5

10

15

20

25Quarter on a year earlier

Qtr on Qtr

N IrelandWalesN EastS WestE MidsW MidsEastY&HScotlandN WestS EastLondon

Figure Six: % change quarter-on-quarter (Q3 12 on Q2 12) and change on the same quarter a year previously (Q3 12 on Q3 11)

%

change


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9

IN4FOCUS:4EXCHANGE4RATES44 Q342012

44 Q3420124saw4a4fall4in412%4of4rms4reporting4exchange4rates4as4a4concern.

44 The4percentage4of4manufacturing4rms4who4are4concerned4about4exchange4rates44

is4joint4second4lowest4since4Q342007.44

Fluctuations in exchange rates create uncertainty and makes doing business overseas more risky.Since the Trade Condence Index was rst published, economic conditions on the Continent haveseen the pound gain against the EURO, although it is still airly weak by historical standards, and ithas risen steadily against the Dollar. The percentage o rms that said exchange rates was a concernclimbed each quarter (apart rom a small decline in Q1 2012). But the result or this quarter was rathersurprising. There was a noticeable 12% all. As Figure Seven shows 28% o rms now say that exchangerates are a concern and this is by ar the lowest in the series. It is now the second in the list o concernsor exporters ater infation.

Throughout the series it has been clear that manuacturing rms are more sensitive to exchangerate movements than their service sector counterparts. That trend continues in Q3 2012; howeverthere was a ar greater all in the percentage o manuacturing rms that report exchange as aconcern that the all in service rms. In the manuacturing sector the gure is now 40%. This is adecrease o 17% on Q2 2012. Alongside Q1 2012 it is the lowest since Q1 2011 and the joint secondlowest since Q3 2007. For the service sector the gure is 22%, a all o 7% on the previous quarter.This is the lowest in the series and it now places exchange rates as only third in the list o concernsor service rms ater infation (53%) and corporation tax (27%).

When the results are broken down into the our rm size categories, they show that medium sizedrms are the most concerned about fuctuations in exchange rates (34%). Micro rms report theleast concern (23%).

20

30

40

50

60

Q3 12Q1 12Q3 11Q1 11Q3 10Q1 10Q3 09Q1 09Q3 08Q1 08Q3 07



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Capital Moscow

Population 139.4 million (Source: CIA)

Official Language Russian

Currency Russian Rubles

Exchange Rate Russian Rubles (RUB) per US dollar - 30 (2010)

(Source: CIA)

Time Zones 11 Zones:GMT +02:00, GMT +03:00, GMT +04:00,GMT +05:00, GMT +06:00, GMT +07:00, GMT+08:00, GMT +09:00, GMT +10:00, GMT+11:00, GMT +12:00

Daylight saving times also operate across all timezones, from Mar/Apr through to Oct

Dialling Code +7

Postcode Format 999999

ExportCommodities

Petroleum and petroleum products, naturalgas, metals, wood and wood products,chemicals, and a wide variety of civilianand military manufactures(Source: CIA)

ImportCommodities

Machinery, vehicles, pharmaceutical products,plastic, semi-finished metal products, meat, fruitsand nuts, optical and medical instruments, iron,steel(Source: CIA)

DHL RUSSIA FACT SHEET

In the 800 years since the principality of Muscovy freed itself fromMongol rule, the development and rise of Russia has never been

anything less than extraordinary.

Its empires have been built and lost but even today post-Soviet

Russia is the largest nation on earth, spans 11 time zones and retains

its power and influence as much through its economic might as it

does through military power.

The engine of Russias economy is the mineral and energy resources

on which many millions of people outside of Russia depend even

unknowingly. Much of the coveted oil, gas and coal is worked from

the vast frozen plains of Siberia an area that covers more than half

the country but is home to less than 20 per cent of the population.

Since the collapse of the Soviet Union, Russia has undergone some

major changes, not least in terms of its economy. There has been a

steady move towards a more open and market-based economy since

the major economic reforms of the 1990s which has seen Russia

move from global isolation to global integration.

However, Russias reliance on its energy exports as well as othercommodities such as steel, aluminium and timber, does make it

vulnerable to boom and bust cycles that follow the highly volatile

swings in global commodity prices. The Russian economy was one

of the hardest hit by the 2008-09 global economic crisis as oil prices

plummeted and the foreign credits that Russian banks and firms

relied on dried up. In the last few years the government has made

great efforts to reduce its dependency on commodity exports by

attempting to build up the country's high technology sectors, but

with little apparent success so far.

The resurgence of oil and gas prices is however continuing to serve

Russia well, and with a GDP (purchasing power parity) ranking of

seventh in the world, Russia continues to be a nation withconsiderable economic power, providing opportunities for UK

exporters.

Sources: Forbes.com, National Geographic

COUNTRY OVERVIEW

Russia: Country Profile

St. Petersburg

MoscowMagadan

Yakutsk

Norilsk

Omsk

Chelyabinsk

Volgograd


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Russia Fact Sheet 2

The Russian Federation has strict control measures in place to ensure compliance withCustoms regulations, therefore when shipping to Russia its especially important to makesure you have the right documentation.

DHL provides dedicated support to assist with your Customs requirements, however thefollowing information states exactly whats needed to ensure your documentation iscomplete, and facilitate smooth Customs clearance.

DUTY FREE ALLOWANCE

There is no import duty for shipments into Russia with a customs value of lessthan 200 EUR (including transport cost).

DHL FACTS

Transit Times to Russia areaffected by the dutiablevalue of the shipment dueto expected customsclearance times

Gateways into the country: 11

Number of Service Centres: 63

DHL Zone: 5Delivery: Door-to Door Service from DHL

Invoicing: Exports and Imports are billed in Sterling in the UK

Transit Times

UK to Russia - Example Transit Times

Moscow Documents: 1 dayDutiable Shipments: 2-3 days

St Petersburg Documents: 1 dayDutiable Shipments: 2-3 days

Irkutsk 3 days

Nizhniy Novgorod Documents: 2 daysDutiable: 3-4 days

Novosibirsk Documents: 2 daysDutiable: 3-4 days

Magadan Documents: 2 days

ESSENTIAL CUSTOMS INFORMATION

Prohibited Items Specific to RussiaDHLs standard list of prohibited items alsoapplies. In addition, any publications ordocuments containing material which could beconsidered a threat to state security, social order,public morality (eg fascism), or the right to privacy

are prohibited for import.)

Alcoholic beverages

Antiques

Asbestos

Cheques, cashier (NI)

Dangerous goods, hazardous or combustiblematerials

Excise Stamp

Firearms or parts of

Furs

Ivory

Jewellery, including costume

Military equipment

Non-factory packed chemicals

Perishables

Personal effects

Pornography

Precious metals and stones

Tobacco

Undeveloped photographic material

Works of art

1. Original Invoice with no abbreviations and including:

A full detailed description of goods and purpose of use

Material / Model / Part Number / Article / Technical parameters/ chemical composition

Trade Mark / Name of Manufacturer as indicated on the label/nameplate of the goods

Country of origin

Name of Manufacturer

Net weight of each line/position

Quantity of pieces

Quantity of Packages Unit price (Currency is mandatory)

Total Price (Currency is mandatory)

Number and date of trade Contract

Number and date of invoice

If you are sending Commercial Shipments (selling your product):

The documentation you, the sender, will need to provide is:


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Russia Fact Sheet 3

Legal Address of both parties (Consignor and Consignee)in accordance with the company registration documentsof the Consignor and Consignee

Delivery address of Consignee

Phone number and contact person at the Consignee

Insurance cost (for Incoterms: CIP, CIF)

Freight cost (for Incoterms CIP, CPT, CIF, DDU)

Gross weight in total

HS (Tariff) Code of each item the first six digits shouldbe supplied

Signature of Consignor

Stamp of Consignor (where available)

Delivery terms (Incoterm)

Payment terms as per trade contract

2. Copy of Insurance CertificateWith insurance amount (for Incoterms CIP and CIF) whereinsurance is part of the contract/shipping requirements

3. Price Verified by SellerRussian Customs require documentation to confirm that thedeclared value is the true value that any other company canpurchase the goods for. This can be a price list verified by thesellers stamp or a link to a web page or catalogue or othersimilar verification.

4. Copy of Export Documentation(where required for the goods being exported)

5. Permissions where required by your HS Tariffcoding (e.g. if drugs are being exported, an export license or

similar may be required.)

Note: The Incoterm DDP (Delivery Duty Paid) is notavailable.

The documentation the receiver in Russia (the consignee)needs to provide is:

6. Charter Registration Documents

7. Trade Contract

8. Signed Brokerage Contract(if Customs Brokers Service is used)

9. Passport of Import Deal(a special document of currency control issued by theimporters bank)

10. Translation of invoice

11. Permits, licenses and certificatesIssued by Russian Authorities (e.g. Import permits etc)where required by HS (tariff) code

12. Customs fees, duties and taxesPayable in accordance with Russian Customs legislation andbrokerage fees if Customs clearance is provided by Customsbroker

*Customs Value: value of goods + international freight + international insurance Valid from: 02/2011 | Version: 01

If you are sending Inter-Company Shipments:

The same documentation needs to be provided by you (the sender/consignor) as when sending a Commercial Shipment

(see points 1-5 above), plus a price list for the open market in order to verify that the relationship is not impacting value.

If you are sending Non-Commercial Shipments:(Not for sale; value up to UK$1,000 including transportation)

The documentation you, the sender, will need to provide is:

1. A Proforma Invoice including: A full detailed description of goods and purpose of use

Material / Model / Part Number / Serial Number / Article/ Technical parameters / chemical composition

Trade Mark / Name of Manufacturer as indicated on thelabel/name plate of the goods

Country of origin

Name of Manufacturer

Net weight of each line/position

Quantity of pieces

Quantity of Packages

Unit price (Currency is Mandatory)

Total Price (Currency is mandatory)

Number and date of proforma invoice Legal Address of the Consignor

Delivery address of Consignee (for shipments toexhibitions registration/legal address of Consigneecompany is also mandatory)

Phone number and contact person at the Consignee

Gross weight in total

Insurance cost if shipment is insured

Signature of Consignor

Reason for export under free of charge deliveryconditions (samples for testing, gifts or others)


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Russia Fact Sheet 4

2. Copy of insurance certificateWith insurance amount, if insured

3. Permissions where required by yourHS Tariff coding (e.g. if drugs are being exported, an

export license or similar may be required. DHL can supportyou with this, please contact your Account Manager orCustomer Services on 0844 248 0844)

4. Optional information you can provide,if available:

HS (Tariff) Code of each item

Stamp of sender (consignor)

Freight cost if transportation is paid by the sender(consignor)

One of the following documents for value confirmation:

Pricelist (including print out from Internet)

Receipt

Copy of export declaration if applicable in your country

Catalogues

The documentation the receiver in Russia (the consignee)needs to provide is:

5. Charter Registration Documents

6. Translation of Pro-Forma Invoice

7. Signed brokerage contractIf Customs Broker service is used

8. Permissions issued by Russian Authorities(e.g. Import permits etc) where required by HS (tariff) code

9. Customs fees, duties and taxesPayable in accordance with Russian customs legislation andbrokerage fees if Customs clearance is provided by Customsbroker

Note: Non commercial shipments with a Customs Value(i.e. Goods Value + transport) over US$ 1,000 are treated by

Customs as commercial shipments.

As such, the Proforma Invoice for these non commercialshipments should match the requirements of a commercialinvoice, excluding details like Incoterms (eg. Delivered AtPlace (DAP)) and terms of payment. All other paperworkrequirements for commercial shipments are applicable fornon commercial shipments over US$ 1,000. See CommercialShipments section above for further details on requirements.

Contact Customer Services on 0844 248 0844

Go online: http://www.dhl.co.uk/en/express/shipping/customs_support.html

The UK Trade Tariff can be used to confirm the commodity codes, termed Harmonised System (HS) codes, referred to throughout

this document. The information is available at: http://www.businesslink.gov.uk/bdotg/action/tariff

For information on how to confirm if your goods require an Export License, and how to obtain any relevant licenses, please go to:

http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1079717544&r.s=tl&topicId=1074185375

For further information


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BRITISH CHAMBERS OF COMMERCE

65 PETTY FRANCE

LONDON SW1H 9EU

UNITED KINGDOM

T +44 (0)20 7654 5800

F +44 (0)20 7654 5819

[email protected]

WWW.BRITISHCHAMBERS.ORG.UK

DHL INTERNATIONAL (UK) LTD

178-188 GREAT SOUTH WEST ROAD

HOUNSLOW

MIDDLESE TW4 6JS

UNITED KINGDOM

T +44 (0)844 248 0844

WWW.DHLGUIDE.CO.UK

DHL/BCC Trade Confidence Index 3rd Quarter

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