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Moore Stephens warns on VAT registration threshold changes
International accountant and shipping consultant Moore Stephens has highlighted an imminent change to VAT rules by the UK government which could have significant implications for the shipping industry.
With effect from 1 December 2012, the UK government will remove the VAT registration threshold for non-UK-established businesses, bringing UK law into line with EU law. Businesses without a UK establishment which make taxable supplies of goods or services in the UK will no longer benefit from the UK VAT registration threshold, and will have to register for VAT regardless of the value of taxable supplies they make in the UK.
Moore Stephens Associate Robert Facer says, “This is a significant change to the rules, which have allowed non-established businesses to sell goods and/or services in the UK with a value of up to £77,000 in any 12-month period, before having to register. The new rules could affect a wide range of businesses, including those in the shipping sector. For example, an overseas business making one-off or occasional sales of goods in the UK will have to register, as well as those with more frequent UK sales. However, sales of goods and services where the business customer is responsible for the VAT accounting (so called ‘reverse charge’ supplies) do not count. A streamlined online service for VAT registration, deregistration and business variation has been introduced, in the interests of providing quicker and more accurate processing.”
Meanwhile, another change to VAT rules, which will take effect on 20 December 2012, will affect both suppliers and business recipients of freight transport and related services which are physically performed outside the EU. As a result of EU-wide changes enacted on 1 January, 2010, UK VAT became due on supplies of freight transport received by UK businesses even where the service physically took place wholly outside the EU. The UK government introduced a temporary easement to restore the pre-1 January 2010 position, and legislation has now been enacted to formalise this, following an informal consultation period.
Moore Stephens LLP is noted for a number of industry specialisations and is widely acknowledged as a leading shipping and insurance adviser. Moore Stephens LLP is a member firm of Moore Stephens International Limited, one of the world's leading accounting and consulting associations, with 636 offices of independent member firms in 100 countries, employing 21,197 people and generating revenues in 2011 of $2.3 billion. www.moorestephens.com
For more information:
Robert Facer
Moore Stephens LLP
Labels: freight transport, Moore Stephens, shipping, UK VAT threshold changes
London Club urges maintenance of hold pipework to prevent cargo damage claims
THE London P&I Club has urged shipowners to ensure proper maintenance of cargo hold pipework in order to prevent wet damage to cargo, which has become a regular source of claims.
In the latest issue of its StopLoss Bulletin, the club notes, “Leakage from pipework within holds continues to be a common cause of cargo wetting. Of particular concern are leaking top-side tank drain pipes and wells when located near or below the load water line, which can result in catastrophic hold flooding.
“By way of preventative maintenance, pipes should be monitored for signs of corrosion and kept well coated. Exposed pipework vulnerable to contact by cargo handling equipment should also be fitted with protective guards or covers, and securing clamps should be complete. Every opportunity should be taken to inspect difficult-to-access pipework in the upper hold areas at, and between, scheduled drydockings.
“However, even well-maintained pipework may become holed or fractured due to impact or vibration, and it is therefore important that thorough checks are routinely made of these fittings prior to loading cargo. Pipework which should be inspected includes ballast and bunker tank air vent pipes, tank sounding pipes, draught gauge pipes, fire mains, scuppers and top-side tank overboard discharge pipes.
“Particular attention should be paid to locations of coating breakdown, corrosion and obscured sections of pipe on the blind side adjacent to bulkheads or behind pipe protective covers. Any signs of heavy scoring, deformation or indentation of the pipes or guards should be investigated to check whether the integrity of the pipe has been compromised. The integrity of ballast tank air and sounding pipes should ideally be verified by carrying out hydrostatic tests, whereby the tanks and pipes are completely filled and a check made for leaks. It is also good practice to confirm the wall thickness of pipework when periodic class ultrasonic measurements are performed.”
Labels: cargo hold pipework, corrosion, London Club, maritime claims
BV classes the largest containership in the world for CMA-CGM
Leading international classification society Bureau Veritas has classed what is currently the largest containership in the world.
Built by DSME (Daewoo Shipbuilding and Marine Engineering) in South Korea for French operator CMA-CGM, CMA CGM Marco Polo is the first in a series of three 16,000 teu vessels which will each be named after great explorers.
The CGM Marco Polo - 396 metres long and 54 metres wide with a draft of 16 metres - is equipped with the latest cutting-edge environmental technology. It has an electronically controlled engine allowing for significantly reduced consumption of fuel (-3 per cent, on average) and of lub oil (-25 per cent). A twisted leading edge rudder improves the hydrodynamics of the vessel by optimising water flow and significantly reducing energy expenditure as well as CO2 emissions. A pre-swirl stator facilitates the alignment of water flow upstream from the propeller in order to improve productivity. These innovative features make it possible to reduce by between two and four per cent the consumption of energy and atmospheric emissions.
The CGM Marco Polo also features an exhaust gas bypass system which improves its energy efficiency, reducing fuel consumption by 1.5 per cent at low speeds. An optimised hull design also results in significantly improved propulsion through the water, while a ballast water treatment system preserves environmental biodiversity by preventing the release of chemicals into the sea.
BV has carried out extensive calculations of the dynamic structural response of the vessel at sea, taking into account whipping and springing, resulting in the granting of its WhiSP2 notation.
Delivery of the other two vessels in the series is expected in 2013.
For a photo of CMA CGM Marco Polo, go to: http://bit.ly/o4oUp8 or email chris@merlinco.com
Bureau Veritas is a world leader in conformity assessment and certification services. Created in 1828, the Group has 58,000 employees in 940 offices and 340 laboratories located in 140 countries. Bureau Veritas helps its clients to improve their performance by offering services and innovative solutions in order to ensure that their assets, products, infrastructure and processes meet standards and regulations in terms of quality, health and safety, environmental protection and social responsibility.
www.bureauveritas.com for corporate information
www.veristar.com for marine information
For more information:
Jean-François Segretain
Bureau Veritas Marine Division
Technical Management Deputy Director
+33 1 55 24 72 9 00
Labels: Bureau Veritas, CMA CGM, Daewoo, Marco Polo, world's largest containership
Ship agents count the cost of avoidable errors
International Transport Intermediaries Club (ITIC) has emphasised how avoidable errors can prove expensive for ship agents.
In the latest issue of its Claims Review, ITIC recounts how a ship agent at a tidal port in Japan was asked to provide a tide table to enable the owner of a ship to calculate the permissible drafts for the dates that its ship was due to berth at the port. The ship agent duly scanned the tide table and sent it electronically to the owner. The ship arrived at the port with a draft of 8.56 m, but was informed by the port authorities that the permissible draft was only 7.8 m.
It emerged that the agent had inadvertently sent the owner the tide table for 2012 instead of 2011. The two tide tables were kept together in the same file and, during the scanning process, the corner of the tide table had folded over, thereby obscuring the year. The excess draft meant that the ship could only discharge for about four hours in the morning and two hours in the afternoon. The ship had to shift anchorage three times during the four days it took to discharge, which was twice as long as it should have taken.
The owner claimed the pilotage and towage costs involved in shifting to the anchorage three times, plus two days’ hire, additional bunker consumption, and additional stevedoring, for a total of $143,000. It was agreed by the owner that some of the costs would have been incurred in any event, and the claim for additional costs was settled at $120,000.
In another case reported by ITIC, shipowners appointed a port agent for a bunker call by their vessel. The agent failed to complete the required customs formalities in time to book the berth, a mistake which went unnoticed until the vessel was approaching the port. After being notified by the agent of the mistake, the shipowner decided to divert the vessel to another port around 500 km north of the original port as the bunker berth at the first port was not due to become free for another five days. The ship agent also operated within the second port and the bunkering proceeded without incident.
When the time came to settle invoices totalling $26,000 from the various service providers in the second port, the owners refused to pay, claiming that these additional costs had been incurred as a result of not being able to call at the original port. The costs were in fact the normal charges relating to bunker calls, such as tugs, security charges and pilotage, and would have been payable by the owners in any event, even if the vessel had been able to call at the original port. However, the vessel had been delayed by two days and it had incurred estimated costs that exceeded this amount for fuel and other services, as a result of having to travel 500 km to the second port.
Rather than enter into a dispute with the owners, the ship agent paid the port costs for the bunker call, and was reimbursed by ITIC. www.itic-insure.com
Copies of the ITIC Claims Review can be requested from: chris@merlinco.com
ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com.
For more information:
Charlotte Kirk
ITIC
Tel. +44 (0)20 7338 0150
Fax. +44 (0)20 7338 0151
Labels: avoidable errors, bunkering, claims, ITIC, pilotage and towage, ship agents, transport intermediaries insurance
Philippe Donche-Gay to head Bureau Veritas Marine & Offshore Division
LEADING international classification society Bureau Veritas has restructured its marine and offshore activities and made a number of new key appointments. The moves follow the retirement of Bernard Anne from his position as Executive Vice-President and Managing Director of the Marine Division.
The marine and offshore activities have been merged into one Marine & Offshore Division, with a global network divided into four key areas. Philippe Donche-Gay has been appointed Executive Vice-President in charge of the Marine & Offshore Division, addressing both industry segments.
Since he joined Bureau Veritas in 2008, Philippe Donche-Gay has been Executive Vice- President in charge of the Industry & Facilities Division. He started his career with IBM, holding various management positions in France and in the United States. In 1994, he joined the international management of Capgemini and became Chief Executive Officer of Capgemini West Europe & Latin America. He holds an Engineering Degree from the Ecole Polytechnique (France) and Masters of Science from Stanford University (United States).
Didier Michaud-Daniel, Chief Executive Officer, Bureau Veritas, says, “Bernard Anne has served Bureau Veritas and the marine industry well. Under his leadership, BV’s marine business has grown and strengthened to deliver high-quality services. We thank him and wish him a happy and fulfilling retirement. The new team headed by Philippe Donche-Gay will ensure that BV’s marine and offshore business continues to grow in competence, quality and dimension.”
Philippe Donche-Gay says, “Our portfolio of services covers every aspect of the marine and offshore industries. Our new structure will allow us to maximise the synergies between marine and offshore, giving both industries the best practices of the other. We have a very strong group behind us and are well placed to support owners and operators. I will be visiting most of our global clients to listen to their needs and to ensure that our new organisation will provide them with a constantly improving quality of service.”
For a photo of Philippe Donche-Gay, go to: http://bit.ly/o4oUp8 or email chris@merlinco.com
Bureau Veritas is a world leader in testing, inspection and certification services. Created in 1828, the Group has 58,000 employees in 940 offices and 340 laboratories located in 140 countries. Bureau Veritas helps its clients to improve their performance and reduce their risks by offering services and innovative solutions in order to ensure that their assets, products, infrastructure and processes meet standards and regulations in terms of quality, health and safety, environmental protection and social responsibility.
www.bureauveritas.com for corporate information
www.veristar.com for marine information
For more information:
Philippe Boisson
Bureau Veritas Marine Division
Communication Director
+33 1 55 24 71 98
Labels: Bernard Anne, Bureau Veritas, Marine and Offshore Division, Philippe Donche-Gay, restructuring
London P&I Club sets general increase for next policy year
THE London P&I Club has set a general increase of 12.5 per cent in annual P&I call rates for the 2013/2014 policy year.
Commenting on the background to the decision, Ian Gooch, chief executive of the Club’s management team, says, “Claims in the Club’s retention layer for the current policy year show some encouraging signs, especially at the attritional level, where increased deductibles seem to be playing a part. Although claims in the highest band, in excess of $1m, are running at a moderate level, this band is volatile and has been very expensive in other, recent years. Overall, there remain clear signs of a strong inflationary trend, particularly in the cost of individual larger cases, something which may be reflected by the experience of the International Group Pool this year. The claims picture there is extremely unfavourable, both in terms of claim frequency and average claims severity.”
With regard to investments, the London Club year-to-date return stood at 4.05 per cent at 20 August, and the Club says a cautious approach to planning for the part to be played by investment contributions continues to be required in the current uncertain and low-growth environment.
Gooch concludes, “The Committee recognised the depressed market conditions in different shipping sectors. But, with claims increasing, the Committee considers it to be in the best interests of Members and Club to safeguard its financial strength and move to more balanced underwriting performance. It is against this and the said background that the decision was taken to set a general increase in annual call rates for the 2013/2014 policy year of 12.5 per cent. The Committee also emphasised that attention should be paid to the adjustment of rating and deductible levels for individual Members, where their record and/or exposure to risk requires it.” www.londonpandi.com
Labels: annual call rates for 2013/2014, claims, investments, London P and I Club, marine liability insurance
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