Continuing our series highlighting the names and faces behind the day-to-day work running and managing the operational teams that drive Kukla UK’s success, we take a look this month at our EU Division. With just two people, the number of countries covered by our specialist EUD team is greater than any other Kukla department. Chris Porter caught up with Tom Wood and Becky Thompson to learn a little more about how they manage our client’s import requirements from Germany and Austria, as well as those from some of Europe’s less familiar but developing regions.
How’s your day going?
All good, thanks, Chris. Business in our department is picking up nicely following a somewhat quiet January, which was to be expected as clients brought forward their POs to counter February’s well-publicised duty increases.
We’re seeing huge interest from customers looking for support with complex clearance formalities.
As well as imports from Germany and Austria, what other countries do your department manage for our clients?
Put simply, Chris, France, Italy and Iberia aside, we handle all EU imports, exports and cross trade: Ireland, Benelux, Scandinavia and East Europe, including Georgia and Moldova. We also manage a growing number of intra-UK domestic shipments.
On the ‘exports’ side, we’re seeing huge interest from customers looking for support with complex clearance formalities and reducing transport lead times. All in all, keeping us busy, which is great!!
Shipping companies can sometimes be used as a good barometer to measure the growing popularity of some of the more “non-traditional” regions of Europe. Is it fair to say that we have seen a steady increase in orders from these areas of production?
Absolutely, Chris. This thread of our business has grown progressively from small 1-pallet orders that we consolidate at one of our west EU hub locations. These range from larger part load orders to full loads, routing directly via short sea, intermodal rail and road trailer – bespoke solutions to support small specialists to larger shippers.
Service performance is key, as well as transit time and cost.
Obviously, given the huge scale of the regions and the number of countries exporting their wines to the UK, how are the physical operations and consolidations managed?
We have a strong network of specialist operators serving each country, with the capability to handle local export clearance formalities, timely pick-ups and transfer to one of our consolidation hubs. Service performance is key, as well as transit time and cost – our role is to assess requirements at the start of the job, understand them, and then execute them.
What are the standard lead times for wines coming across on our service from Eastern Europe, groupage and full loads?
For part loads, our target is to load week 1 and deliver week 2. To achieve this, all elements of the transport and Customs compliance chain need to align; one delay can lead to a slip into week 3. A strong professional partner network and experience minimise the risk of delay (and cost); checks and cross-checks are an important part of our processes. Full loads tend to ship short sea or intermodal rail, and depending on locations and schedules, 3 to 10 days is the achievable door-to-door window. For time-sensitive shipments, driver-accompanied Trailers can feature, again, depending on locations and mileages, transit times can be 2 to 5 days.
Our dedicated team is familiar with the complexities so that we can avoid UK border delays.
Are there any specific challenges from any Eastern European country over another, and how do you manage to overcome them?
As you would expect, Chris, part loads require very careful handling. Let’s consider a typical part-load wine shipment from, say Moldova, critical is to establish the precise duty status, Rule of Origin and what export Customs formalities are needed for local compliance and smooth despatch.
Secondly, clear understanding, agreement and communication with a selected transport partner to again ensure timely transfer to a suitable devan and consolidation hub.
From there, part loads are consolidated and shipped to the UK and final destination.
We haven’t touched on UK Customs Clearance. These Eastern European consolidations, in particular, can have a number of clearance regimes. The fact that we have our own Clearance Division, and our dedicated team is familiar with the complexities so that we can avoid UK border delays.
There are many moving parts that need careful handling and understanding.
Don’t underestimate the value of an experienced specialist Forwarder!
Required documents typically include a commercial invoice, a packing list, and a certificate of origin – what other “local” paperwork, especially export document requirements, from any Eastern European country of production that any Kukla customer would need to know before considering buying and moving product?
Correct, Chris, you mention the standard documents – from there, depending the country, Duty and Rule of Origin status will determine if the winery producer will raise an ARC with their Movement Guarantee under EU EMCS controls or if the shipment will need to move under ‘Transit’.
Both regimes require an EX1 export clearance (that the winery supplier or Kukla raises) – this also serves to zero rate the export for local VAT.
The ARC and EX1 documents are consigned to the last EU port of exit – essentially, the EX1 closes on entry to said port; this process automatically closes the ARC, thereby discharging the winery producers’ Movement Guarantee liability.
Non-EU origin shipments (depending on the EU customs status) will move under Transit (our Transit Guarantee) and be discharged at a UK Border location. Each and every order needs careful checking to ensure fiscal compliance and smooth transport to our customer locations – drop the ball, delays, and costs can quickly mount up.
Any words of advice to any client thinking of venturing into the market to buy wines from Eastern Europe?
Please don’t underestimate the value of an experienced specialist Forwarder!!
When you get the chance to relax and unwind, how do you enjoy spending that time?
I play football and like to go to the gym. I have a young family that keeps me on my toes, so there is never a dull moment within the Wood household.
Becky also likes to go to the gym; she has a passion for cooking and travelling the world.
Tom and Becky, many thanks indeed for taking time out of your day to talk to Kukla News.
Chris Porter
February 2025