Starting or already trading with EU partners post Brexit ?
Now that the UK has left the EU single market, traders must comply with new regulation including customs procedures, border control and satisfy vat and duty liability when importing goods from European partners.
Kinnes Shipping Post-Brexit checklist
Government Compliance
Apply for EORI
An EORI is an identification number allowing HMRC to track import/export and collection of duty on goods. Currently applies to non-EU import/exports but will also apply for no deal Brexit. This can be applied for here EORI
Check you have all the required information
In order to complete customs declarations, you will require the following information
- EORI number for the shipper and consignee
- Sales value and currency
- Goods description
- Gross and net weight
- HS commodity code which can be found here Trade Tariff
- Country of origin details can be found here Rules of Origin
- Customs procedure codes CPC
Export and import licence/control
Are the goods you and importing/exporting subject to licence or are they controlled/restricted in any way Import/export Control
Establish Incoterms
Incoterms must be agreed with the client/supplier prior to transport. These will determine where and when the freight, clearance costs and ownership of the goods will transfer from one party to another. These can be found here Incoterms 2020
VAT
Imports into the UK will be subject to VAT payments the amount of VAT paid is determined by the tariff code. This is payable to customs at the time of import. This can either be paid up from or handled via your VAT return if using the Postponed VAT Accounting procedure PVA
DUTY
As with VAT, duty on goods imported will be payable at the time of import, the value is also determined by the tariff code of the goods. For the most part, EU origin goods entering the UK from the EU are normally duty free. However, pay particular to the origin of the goods. Goods of i.e. China origin that are imported from the EU will incur duty.
If you’d like an idea of how much duty or vat you may have to pay, take a look at our UK Duty and VAT Calculator
Other useful info
Consider how your goods are packed
All wooden packing material over 6mm thick, including pallets, must meet the ISPM15 international standards (heat treated and marked) details can be found here ISPM15. The forestry commission conducts random checks on containers entering UK ports – when this occurs, you must be able to prove the pallets comply with ISPM15 standards.
Plan early
There is reports of congestion at ports and containers/transport can be harder to source (especially reefers), if the goods you are importing are key to your supply chain then forward planning is essential. There is a multitude of factors contributing to higher transport costs and reduced container availability – mainly COVID disruption.
Quote early
If you’re restarting international trade with EU partners, it is important to consider the financial cost to trade with the EU, as this has increased since brexit. Goods that were free to trade may now have VAT and Duty charges. There has also been as increase in the cost of transport and this is expected to remain high for the next few years. Plan ahead and factor where these costs will sit within your business.
What can Kinnes Shipping do to help?
As a Dundee based freight forwarder, we are here to assist you with everything you need to successfully import and export. Whether it is advice, customs clearance, quoting land sea or air-freight or taking control of your whole supply chain. With over 100 years’ experience we are perfectly placed to guide you through post-Brexit trade and beyond.
For any further info please call the team on 01382 462858
