Importing and Exporting from Europe After Brexit
November 27, 2019
Following on from our previous blog article, there will be new regulations in place regarding moving goods to and from the EU if the UK leaves the EU without a deal. As well as new documentation, there will be different procedures to follow with a no-deal Brexit; both imports and exports will be conducted in line with the World Trade Organisation (WTO) rules.
EU Import and Export Regulations
Documentation: Invoices, Licences and Certificates
In accordance with WTO rules, every shipment will need to complete a commercial invoice with information for customs authorities and other required associated paperwork. Businesses may also need to apply for an export licence or provide supporting documentation to export specific types of goods from the UK.
More information on certain requirements for exporting goods can be found here.
Register for an EORI Number
In the case of a no-deal Brexit, businesses will be able to continue importing and exporting goods to and from the EU if they have an Economic Operator Registration and Identification (EORI) number.
The current UK EORI numbers and EU EORI numbers in place will not be accepted after a no-deal Brexit, so both shippers and receivers of the goods need a new EORI number. Applications can be made here.
Agree Incoterms with Customers
Incoterms, also known as International Commercial Terms, are widely used in international trade transactions and will play a significant role of the commercial invoice in a no-deal Brexit situation.
These commercial terms will define many of the rules businesses must follow together with their customers. This includes:
- Where the goods will be delivered
- Who arranges and pays for transport
- Who is responsible and pays for insurance of the goods
- Who handles customs procedures
You can learn more about Incoterms here.
Describe and Classify Your Goods
It is vital that all goods should have the correct description, value and classification for shipping.
The description of goods should include:
- A clear and concise description, including brand names and batch numbers if available
- The market price and the currency, defining the true value of the goods
- The origin of goods, including all components and ingredients
The classification of goods is provided by a Harmonised System (HS) code made up of 6 digits which enables accurate taxes and Duties to be applied. HS codes cover 98% of traded goods and are used by over 200 countries to allow customs authorities to identify contents of your shipment.
It is compulsory to include the HS code on your shipping documents and invoice. More information on UK classification codes can be found here.
Set Up a Deferment Account
A Deferment Account is an account authorised by your local Customs office whereby your payable Duties can be paid directly to the authorities, for a certain accounting period on a predetermined due date.
In the scenario of a no-deal Brexit, imported goods may be subjected to import sales tax and Customs Duties so it is a good idea to set up a UK Deferment Account as soon as possible. You can find out more here.
Notify Receivers/Importers About Potential Changes
It is important for businesses to speak to receivers and customers so both sides understand what the potential impact is for them. Notify them about local requirements for imports in their country, import VAT and Duty they may have to pay, and solutions in case there are delays at the point of importation.
You should make sure you have all of the correct details for the completion of export and import declarations, including both yours and your receiver’s correct address and contact details.
At Cross Country Carriers, we understand the amount of preparation your business has to go through for these potential changes from Brexit. Don’t worry, we are on hand to help and assist you – If you have any further questions or queries, please contact us today.