SIMARCO Updates on Its Preparations for a Possible No-deal Brexit Scenario in April 2019
BREXIT – Full Customs Control Scenario UK EXPORT TO EU
Looking ahead at 31st October 2019 and in preparation for a potential no-deal Brexit, the below steps should enable exporters to understand the export process and possible requirements when shipping goods from the UK to EU. In order to avoid shipping delays in the event of a no-deal scenario, we would advise exporters to take the necessary measures as outlined throughout this document.
1. Economic Operator Registration and Identification number (EORI)
In order to continue trading with an EU business who purchases from the UK, ensure you register for a UK EORI number, if not already.
This usually takes 3-4 working days for HMRC to confirm the application and provide your EORI number by email.
In addition, please ensure your EU customer is also registered for an EORI number with their local Authorities, if they do not already have one. Without it, they will be unable to import the shipment.
2. Customs Commodity Codes
Establish what your commodity codes are for the goods you export by using this online classification link https://www.gov.uk/trade-tariff
This will ensure the correct Duties and Taxes are levied against the importer by destination Customs authorities and that the exporter declares the correct information for UK HMRC export statistical purposes.
3. Customs Procedure Code (CPC)
If you are exporting goods from the UK to EU on the basis the buyer purchasing the goods are using them in their own country, then Simarco will apply the basic/home use CPC code applicable. If for example you are returning goods for repair and/or exhibition and goods are returning to the UK (in an unchanged condition), then please notify us prior to export so that we can apply the relevant CPC code. This is to identify the Customs and/or excise regimes which goods are being entered into and removed from (where this applies) and avoid unnecessary Duty/taxes being applied.
4. Export Commercial Invoice
In order for Simarco to coordinate and comply with Customs procedures at origin through to destination, you must provide us with the goods commercial invoice(s), without them the goods will not transit. We recommend that paperwork is completed and ready the day before goods collection.
The export commercial invoice will need to include:
a) Full name, address and contact details of the seller and buyer
b) Include both your own and consignee EORI numbers
c) Number and date of issue of the commercial invoice
d) Number and date of issue of the proforma invoice, purchase order or sales contract
e) Price, method of payment, currency and any discounts or additional charges
– note freight and/or insurance should technically be shown separately
f) Quantity, gross and net weight of goods
– Supplementary units for example, Sqm of fabric or No. of litres (if applicable)
g) Number, weight and type of packages
h) Harmonised system (HS) tariff code and a plain English description of the products
i) Incoterms including delivery and payment
j) Country of origin of the goods
k) Actual value of the goods
When listing the different commodity types on your export invoice, please consolidate the product quantities, gross & net weight and value separately under each commodity code. For example:
|49019000||5 Cartons||120 kilos (Gross)||110 kilos (Net)||£500.00|
200 kilos (Gross)
|190 kilos (Net)||£800.00|
This will help simplify the export documentation process and reduce the risk of manual errors when transferring mandatory information to the export Customs entry.
5. Goods Ready for Export
When export orders are ready for dispatch and export documentation has been completed, Simarco will arrange the collection of goods and handle the export customs procedures so that goods move from the UK to European destination.
6. Destination Contact and Customs Clearance
Whilst the goods are on route to destination, our EU counterpart in the country of destination will liaise with the consignee and make arrangements for customs clearance either via their own service or perhaps handover to the broker of the consignee (if they already have one nominated).
Relevant VAT/Duties and related customs documentation charges will be raised against the consignee (subject to incoterms) by either the local destination authorities, forwarder or broker (depending on country regulations) and in most circumstances, once VAT/Duty and associated charges are settled, the goods will be released by our EU counterpart for final mile delivery to the consignee.
7. DDP Incoterms
Simarco can arrange for destination Duty charges to be paid at destination and reinvoiced to the UK for payment by the UK importer (subject to credit terms and destination Country Customs procedures).
Summary on immediate steps for Exporters to prepare for No-Deal
– UK Exporter
- Ensure you have an EORI number
- Classify your goods
- Ensure the export commercial invoice contains the information, as listed above
- Send your export invoice to the EU importer at the time of dispatch
– EU Importer
- Ensure they have an EORI number
- Nominate a freight forwarder / Customs broker to handle import customs formalities on their behalf and give that party the authority
- Agree suitable credit terms
For further information, please contact Andrew Gigg at [email protected].
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