The start of 2021 has seen our freight forwarding team working closely with businesses to help them adapt to the changes and new regulations for UK and EU bound shipments following the end of the Brexit transition period.
If you as a business are planning on importing and exporting in 2021 and are unsure on what you need to do to avoid delays and additional costs, please use our below checklist for guidance or get in touch with us today: firstname.lastname@example.org
Although a trade deal is in place, it is important to remember that customs formalities are still needed for all UK/EU shipments and there are a number of actions you must do as a business to ensure your shipments move smoothly – We are here to help, so do not worry.
Economic Operator Registration and Identification (EORI) numbers are required if a company wishes to export to or import from the EU.
If you have not yet registered for your EORI number, please follow the link: https://www.gov.uk/eori
Commodity codes identify your products for import and export and have to be declared on a customs entry. Commodity codes classify goods for import and export so you can:
• Fill in declarations and other paperwork
• Check if there’s duty or VAT to pay
• Find out about duty reliefs
Check your commodity codes: Commodity Codes
Put simply, a CPC code (Customs Procedure Code) identifies the reason why you are importing or exporting. The code describes the purpose of your shipment, which in turn directly determines how your shipment is processed and ultimately, if, how, when and from whom duties and taxes are collected.
To check your commodity codes please use these links:
The UK is introducing Postponed VAT Accounting for VAT registered businesses in 2021. If you opt to use this scheme, there will no longer be the need to pay Import VAT and then claim it back from HMRC. Instead, you will declare your Import VAT in your next VAT return with a ‘reverse charge’ offset.
Please read this information carefully as action is required if you intend to import shipments from the EU.
Before the end of the Brexit transition period, VAT at Importation was due at the same time as Customs Duty when importing from a non-EU Country. This is either paid immediately to HMRC or via your Duty Deferment Account paid on the fifteenth of the following month. This VAT is normally reclaimed as input tax on the next VAT Return.
With effect from 1st January 2021, VAT at Importation became payable on goods coming from the EU Countries as well as non-EU Countries. The UK Government, in order to reduce the cashflow load on UK Businesses, have allowed (and in some instances required) VAT Registered Importers to account for VAT on imported goods, for use in their business, on their VAT Returns instead of paying the VAT immediately at Import. This is Postponed VAT Accounting (PVA) and there is no authorisation required.
We would expect that most businesses will use PVA as it will have a positive impact on cashflow and only changes slightly their VAT Return (The VAT is input in Box 7 instead of Box 6)
Please see below link to guidance from HMRC
Please find below link to the webpage dealing with the VAT return:
You will also need to register to receive your MPVIS monthly, this will require your Government Gateway User and Password.
If you import goods regularly, you can apply for a duty deferment account to delay paying most customs charges (i.e. Customs Duty, Excise Duty, Import VAT)
To apply for a Duty Deferment Account, please follow this link: Apply
If you do not want to apply for a Duty Deferment Account, Delamode can offer a deferment service as part of our customs clearance offering. Please email us for more information: email@example.com
Should you want to avoid the risks and complexity of being responsible for your own custom clearance’s declarations we are here for you.
Delamode can perform the custom declaration on your behalf. You will simply need to complete a “Customs Clearance Agent to act as a Direct representative” form which can be downloaded below.
This document must be submitted on your company letterhead and lodged with your local Delamode office or email to: firstname.lastname@example.org
The information included on commercial invoices is vital as inaccurate and/or incomplete details will most definitely increase the chances of delays and extra costs.
A commercial invoice will need to include the following, accurately completed:
Rules of Origin (RoO) are used to determine the “economic nationality” of a product and by customs authorities to classify where an export has come from in order to work out tariffs and restrictions.
Under a free trade agreement (FTA), exporters must prove that a good is ‘originating’ according to preferential RoO in order to access preferential tariff rates. RoO in FTAs prevent third countries from accessing, at a preferential rate, the markets of countries with whom they do not have a trade deal, such as China.
Customs have given the following declaration as being acceptable for such rules of origin. The document must be signed and the signature can be electronic.
The exporter of the products covered by this document (Exporter EORI No …) declares that, except where otherwise clearly indicated, these products are of (for example UK) preferential origin.
(Place and date)
(Name of the exporter)
Since the end of the EU transition period, we are finding that some customers are not aware of the mandatory requirements for their commercial export invoice for shipments moving between the UK and European Union. This is causing delays and additional administration for our export operators. We therefore ask you ensure that your invoice contains the following information:
The use of wooden pallets/packaging material must be compliant to ISPM15 heat treatment the UK Government (DEFRA) have confirmed that from the 1st January 2021, it will be a legal requirement for all wood packaging material moving in both directions between UK and the EU to be compliant with a treatment and mark as specified in the International Standard for Phytosanitary measures No 15 (ISPM15).