home / skills / robdtaylor / personal-ai-infrastructure / shippinglogistics

ShippingLogistics skill

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This skill helps you navigate UK, US, and Canadian shipping, customs, and landed costs with automotive expertise to ensure compliant, cost-efficient imports.

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---
name: Shippinglogistics
description: UK, US, and Canadian shipping, logistics, customs, duties, and tariff expert with automotive commodity code expertise. Covers import/export documentation, HS/HTS codes, rules of origin, FTAs, and landed cost calculations.  USE WHEN user says 'shipping', 'customs', 'tariff', 'duty', 'import', 'export', 'HS code', 'HTS code', 'commodity code', 'landed cost', 'incoterms', 'customs broker', 'freight', 'logistics', 'rules of origin', 'CUSMA', 'USMCA', 'TCA', or needs help with international trade compliance.
---

# ShippingLogistics

Expert guidance on UK, US, and Canadian shipping, customs, duties, and tariffs with specialized automotive industry knowledge.

---

## Dual-Perspective Output (REQUIRED)

**All customs, tariff, and trade compliance responses MUST provide two perspectives:**

### Output Format

```
## 🛡️ Conservative View
[Safest interpretation - what a risk-averse compliance officer would recommend]
- Strictest reading of regulations
- Assumes worst-case tariff classification
- Recommends binding rulings before acting
- Prioritises compliance certainty over cost savings
- "When in doubt, pay the duty and claim back later"

## 🚀 Aggressive View
[Boundary-pushing interpretation - what a strategic trade consultant would explore]
- Creative but defensible positions
- Identifies available exemptions, reliefs, and programmes
- Explores tariff engineering opportunities
- Leverages FTA provisions to maximum extent
- Considers procedural alternatives (FTZs, bonded warehouses, duty drawback)
- "Find the opportunity within the rules"

## ⚖️ Recommendation
[Which approach fits this specific situation and why]
- Risk tolerance assessment
- Volume/value considerations
- Compliance history factors
- Strategic vs tactical decision
```

### When to Apply Dual Perspective

| Scenario | Dual Output Required |
|----------|---------------------|
| Tariff classification queries | ✓ Always |
| Rules of origin determinations | ✓ Always |
| Duty rate questions | ✓ Always |
| FTA eligibility assessments | ✓ Always |
| Import/export strategy | ✓ Always |
| Landed cost calculations | ✓ Include both scenarios |
| Documentation questions | Optional (usually one correct answer) |
| Process/procedure queries | Optional |

### Conservative vs Aggressive Characteristics

| Aspect | 🛡️ Conservative | 🚀 Aggressive |
|--------|-----------------|---------------|
| Classification | Higher duty code if ambiguous | Defensible lower duty code |
| Origin | Assume non-qualifying unless proven | Calculate RVC to find qualifying path |
| Valuation | Include all possible dutiable elements | Apply permitted deductions |
| Documentation | Full formal entry, all certificates | Simplified procedures where eligible |
| Timing | Clear goods, review later | Pre-plan to optimise before shipment |
| Risk appetite | Zero tolerance | Calculated, documented positions |
| Audit readiness | Bulletproof files | Defensible positions with reasoning |

---

## Quick Reference

### Key Government Resources

| Country | Tariff Lookup | Customs Authority |
|---------|---------------|-------------------|
| **UK** | [UK Trade Tariff](https://trade-tariff.service.gov.uk/find_commodity) | HMRC |
| **US** | [USITC HTS](https://hts.usitc.gov/) | CBP |
| **Canada** | [CBSA Customs Tariff](https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2026/menu-eng.html) | CBSA |

### Current Trade Agreements (2026)

| Agreement | Parties | Key Benefit |
|-----------|---------|-------------|
| **UK-EU TCA** | UK ↔ EU | Zero tariffs if rules of origin met |
| **CUSMA/USMCA** | US ↔ Canada ↔ Mexico | Preferential rates for qualifying goods |
| **UK-Canada FTA** | UK ↔ Canada | Preferential tariff treatment |
| **CPTPP** | UK + 11 Pacific nations | Reduced tariffs on qualifying goods |

---

## Commodity Code Structure

### Harmonized System (HS) Code Format

```
8708.99.97.90
│    │  │  └─ Statistical suffix (country-specific)
│    │  └──── Subheading (6-digit international)
│    └─────── Heading (4-digit)
└──────────── Chapter (2-digit)
```

- **Chapters 1-97**: International standard (WCO)
- **6 digits**: International harmonized
- **8-10 digits**: Country-specific subdivision

### Automotive-Relevant Chapters

| Chapter | Description | Common Parts |
|---------|-------------|--------------|
| **84** | Machinery | Engines, pumps, compressors, bearings |
| **85** | Electrical | Motors, batteries, wiring, sensors |
| **87** | Vehicles | Complete vehicles, body parts, accessories |
| **40** | Rubber | Tires, hoses, seals, gaskets |
| **73** | Iron/Steel | Fasteners, brackets, structural parts |
| **39** | Plastics | Interior trim, bumpers, panels |
| **70** | Glass | Windshields, mirrors, windows |
| **90** | Instruments | Gauges, sensors, measurement devices |

---

## UK Customs & Tariffs

### UK Global Tariff (UKGT)

Since Brexit (2021), UK uses its own tariff schedule independent of EU.

**Key Points:**
- 10-digit commodity codes required for import declarations
- VAT at 20% on most goods (in addition to duty)
- Simplified rates available for low-value consignments

### UK Import Process

1. **Classify goods** using UK Trade Tariff
2. **Determine origin** for preferential treatment
3. **Calculate duties**: Customs Duty + VAT + Excise (if applicable)
4. **Prepare documentation**: Commercial invoice, packing list, certificate of origin
5. **Submit declaration**: Via Customs Declaration Service (CDS)

### UK-EU Trade (TCA)

- Zero tariffs on goods meeting **rules of origin**
- Proof of origin required (supplier declaration or EUR.1)
- Full customs declarations required since 2021

### Common UK Automotive Duty Rates

| Product | Commodity Code | MFN Rate | EU (TCA) |
|---------|----------------|----------|----------|
| Passenger cars | 8703.xx | 10% | 0% |
| Car parts (general) | 8708.xx | 2.5-4.5% | 0% |
| Tires | 4011.xx | 4.5% | 0% |
| Batteries (EV) | 8507.60 | 2.7% | 0% |

---

## US Customs & Tariffs

### Harmonized Tariff Schedule (HTS)

Administered by USITC; enforced by CBP.

**Key Points:**
- 10-digit HTS codes for imports
- Additional tariffs may apply (Section 301, Section 232)
- De minimis threshold: $800 (no duty/tax)

### Current Special Tariffs (2026)

| Program | Rate | Applies To |
|---------|------|------------|
| **Section 232 Steel** | 25% | Steel articles and derivatives |
| **Section 232 Aluminum** | 25% | Aluminum articles and derivatives |
| **Section 301 China** | 7.5-100% | Various Chinese goods |
| **Auto Parts (non-CUSMA)** | 25% | Non-compliant auto parts |

### CUSMA/USMCA Automotive Requirements

For CUSMA preferential treatment on automotive goods:

1. **Regional Value Content (RVC)**: 75% for passenger vehicles
2. **Steel/Aluminum**: 70% North American sourced
3. **Labor Value Content**: 40-45% from high-wage ($16+/hr) facilities
4. **Core parts**: Must be originating (engine, transmission, etc.)

### US Import Process

1. **Entry filing**: Within 15 days of arrival
2. **Documentation**: Commercial invoice, bill of lading, packing list
3. **Bond**: Required for imports over $2,500
4. **Duty payment**: Within 10 days of entry liquidation

---

## Canada Customs & Tariffs

### Canadian Customs Tariff (2026)

Administered by CBSA using 10-digit tariff classification numbers.

**Key Points:**
- GST 5% on most imports (in addition to duty)
- Provincial taxes may apply on certain goods
- CUSMA benefits require qualifying goods

### Canada Automotive Tariffs (2026)

**Current Situation:**
- 25% surtax on US motor vehicles (with CUSMA deductions)
- Steel derivative goods surtax: 25% (automotive exemption until July 2026)
- CUSMA-compliant auto parts: Exempt from Section 232 tariffs

### Canadian Import Process

1. **Classify goods**: Use CBSA tariff schedule
2. **Determine tariff treatment**: MFN, GPT, CUSMA, etc.
3. **Calculate duties**: Duty + GST + Provincial taxes
4. **Submit B3 declaration**: Commercial entry

### Duties Relief Programs

- **Duty Drawback**: Refund of duties on re-exported goods
- **Duties Relief**: Suspension of duties on goods for export processing

---

## Incoterms 2020

### Commonly Used Terms

| Term | Full Name | Seller's Responsibility |
|------|-----------|------------------------|
| **EXW** | Ex Works | Goods at seller's premises |
| **FCA** | Free Carrier | Delivered to carrier |
| **FOB** | Free On Board | Loaded on vessel (sea only) |
| **CIF** | Cost, Insurance, Freight | Insurance + freight to port |
| **DDP** | Delivered Duty Paid | All costs including duties |
| **DAP** | Delivered at Place | Delivered, buyer clears customs |

### Automotive Industry Standard

Most automotive OEM contracts use:
- **DDP** or **DAP** for finished vehicles
- **FCA** or **CIF** for parts
- **EXW** rarely used (shifts too much risk to buyer)

---

## Landed Cost Calculation

### Formula

```
Landed Cost = Product Cost + Freight + Insurance + Customs Duty + Taxes + Handling
```

### Detailed Breakdown

```
Product Cost (FOB)                    $10,000
+ International Freight                  $800
+ Insurance (0.5% of CIF)                $55
= CIF Value                          $10,855
+ Customs Duty (4.5%)                   $489
= Duty Paid Value                    $11,344
+ VAT/GST (20% UK / 5% Canada)        $2,269
+ Brokerage/Handling                    $150
= Total Landed Cost                  $13,763
```

---

## Documentation Requirements

### Standard Import Documents

| Document | UK | US | Canada |
|----------|----|----|--------|
| Commercial Invoice | ✓ | ✓ | ✓ |
| Packing List | ✓ | ✓ | ✓ |
| Bill of Lading/Airway Bill | ✓ | ✓ | ✓ |
| Certificate of Origin | If claiming preference | If claiming preference | If claiming preference |
| Entry Declaration | CDS | CBP Form 7501 | B3 |

### Automotive-Specific Documents

- **CUSMA Certificate of Origin**: For US/Canada/Mexico preferential treatment
- **EUR.1 Movement Certificate**: For UK-EU preferential treatment
- **Supplier Declaration**: Long-term or single shipment
- **IMDS/REACH Compliance**: Material declarations
- **PPAP Documentation**: When required by customer

---

## Rules of Origin

### Key Concepts

1. **Wholly Obtained**: Entirely produced in one country
2. **Substantial Transformation**: Tariff shift rule (change in HS heading)
3. **Regional Value Content (RVC)**: Percentage of value from region

### RVC Calculation Methods

**Transaction Value Method:**
```
RVC = ((TV - VNM) / TV) × 100
```
- TV = Transaction value
- VNM = Value of non-originating materials

**Net Cost Method:**
```
RVC = ((NC - VNM) / NC) × 100
```
- NC = Net cost (total cost minus royalties, shipping, packing)

### CUSMA Automotive RVC Requirements

| Product | 2020-2023 | 2024+ |
|---------|-----------|-------|
| Passenger vehicles | 75% | 75% |
| Light trucks | 75% | 75% |
| Heavy trucks | 70% | 70% |
| Auto parts (core) | 75% | 75% |
| Auto parts (other) | 65-70% | 65-75% |

---

## Common Issues & Solutions

### Classification Disputes

**Problem**: Uncertainty about correct HS code
**Solution**:
- Request binding ruling from customs authority
- UK: HMRC Binding Tariff Information (BTI)
- US: CBP Binding Ruling
- Canada: CBSA Advance Ruling

### Valuation Challenges

**Problem**: Related party transactions, assists, royalties
**Solution**:
- Document arm's length pricing
- Declare all assists and royalties
- Use transfer pricing documentation

### Origin Determination

**Problem**: Complex supply chains, multiple countries
**Solution**:
- Bill of materials analysis
- Supplier declarations
- Manufacturing process documentation

---

## Integration with Other Skills

- **SupplyChain**: For strategic sourcing decisions
- **AutomotiveManufacturing**: For PPAP and quality documentation
- **SapEcc**: For customs/trade compliance modules (GTS)

---

## References

- [UK Trade Tariff](https://trade-tariff.service.gov.uk/find_commodity)
- [USITC Harmonized Tariff Schedule](https://hts.usitc.gov/)
- [CBSA Customs Tariff 2026](https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2026/menu-eng.html)
- [Trade.gov Automotive Parts Tariff Codes](https://www.trade.gov/automotive-parts-tariff-codes)
- [CBP Determining Duty Rates](https://www.cbp.gov/trade/programs-administration/determining-duty-rates)

Overview

This skill provides expert guidance on UK, US, and Canadian shipping, logistics, customs, duties, and tariffs with focused automotive commodity code expertise. It helps classify HS/HTS/commodity codes, evaluate rules of origin and FTAs, calculate landed costs, and advise on documentation and import/export processes. Use it for practical, compliance-minded trade decisions across automotive supply chains.

How this skill works

When you ask about classification, duties, origin, FTAs, or landed cost, the skill analyzes tariff schedules (UKGT, HTS, CBSA) and automotive-relevant chapters to produce actionable guidance. For all tariff, origin, duty, FTA eligibility, import/export strategy, and landed cost queries it always returns two perspectives: a conservative compliance-focused view and an aggressive, optimisation-focused view, followed by a tailored recommendation explaining which approach fits your situation. Documentation and procedural answers are given as clear, checklist-style steps.

When to use it

You need HS/HTS/commodity code classification for automotive parts or vehicles
You want to determine FTA eligibility (CUSMA/USMCA, UK-EU TCA, UK-Canada, CPTPP)
You need landed cost calculations including duty, VAT/GST, brokerage, and freight
You are preparing import/export documentation, supplier declarations, or C/O forms
You must assess rules of origin, RVC calculations, or origin certification
You want strategies for duty reliefs, FTZs, bonded warehouses, or drawback

Best practices

Always document supplier declarations, bills of materials, and manufacturing processes before claiming preferences
Obtain binding rulings for ambiguous tariff classifications when value or risk is material
Run dual-scenario landed cost models (conservative vs aggressive) before tendering contracts
Use long-term supplier declarations and retain proof of origin paperwork for audit readiness
Factor special tariffs (Section 301/232/steel surtaxes) and local taxes into pricing early

Example use cases

Classify a batch of engine components and decide whether to request a binding ruling
Calculate landed cost for an EU shipment to the UK under TCA vs MFN and recommend which approach to claim
Assess whether a parts shipment qualifies under CUSMA and compute RVC by transaction or net cost method
Advise on documentation checklist for DDP vs FCA Incoterms and who is responsible for customs clearance
Design a duty-mitigation plan using bonded warehousing and duty drawback for re-exported components

FAQ

Do you always provide two viewpoints for customs questions?

Yes. For tariff classification, origin, duty, FTA eligibility, and landed cost queries the skill always returns a conservative and an aggressive view plus a recommendation tailored to risk and value.

When should I seek a binding ruling?

Seek a binding ruling when the classification or origin determination affects significant duty exposure, recurring high-volume shipments, or when your compliance history requires certainty.