EU Exit
-Customs Declarations
Explained
Todays Webinar
EU Exit – Customs Declarations Explained
Your host for today
Anne White
Head of International Trade
EU Exit – Customs Declarations Explained
The Big Brexit change is that the UK is no longer part of the EU and so, not a
member of the Single Market
To the EU, the GB is now a ‘Third Country’ like, for example, the USA or China. This is also how we, the GB companies, see the EU.
Now that the UK has left the EU customs unions, if you move goods into or out of GB, customs declarations will be needed.
Customs procedures and formalities now apply for the goods movement between GB and EU.
EU Exit – Customs Declarations Explained
What is a Customs Declaration? Why do we need one?
A document that shows detailed information about the goods crossing the border.
A document that allows Customs Authorities to control the goods that entry or exit the country.
Supports the countries to protect the environment, economy or security.
Prevents Exports and Imports of prohibited/restricted goods.
Why do HMRC needs a customs declaration from us?
Statistics Taxation and duty Safety and security Compliance with government policy Evidence
EU Exit – Customs Declarations Explained
Who needs to know about exports and imports?UK Government
Department for International Trade
Her Majesty’s Revenue and Customs (HMRC)
EU Exit – Customs Declarations Explained
Why do we need a customs declaration
?Who needs to know about exports and imports?
What do they need to know?
EU Exit – Customs Declarations Explained
Incoterms will dictate the delivery point and transfer of responsibility from the seller to the buyer. Please make sure that you use the correct Incoterms for your transactions.
EU Exit – Customs Declarations Explained
EORI and Incoterms
Selling EXW (Ex Works) to EU: the buyer in EU will be responsible to collect, transport, insure* and clear the goods for exportation out of UK.
To clear the goods in UK for export you will need an UK EORI number (starting with GB or NI by case)
You need an EORI number that starts with GB to export goods from England, Wales or Scotland. If you move goods from Northern Ireland, you may need one that starts with XI.
IMPORTANT: Even if you are selling EXW, you will still need to have proof of export to show to HMRC in an audit case – HMRC has up to 7 years to ask about your export.
EU Exit – Customs Declarations Explained
EORI and Incoterms
Buying DDP (Delivery Duty Paid) from an EU exporter: the Seller (exporter) will be responsible to clear the goods for export, but they will also be responsible to clear the goods for import and pay the import taxes.
That means they will need to be registered in UK with an UK EORI and a UK VAT registration.
Important – only an UK VAT registered company can claim VAT in UK and only an UK EORI can be used for importation in UK.
EU Exit – Customs Declarations Explained
EORI and Incoterms
Buying EXW from EU or selling DDP to EU will make you responsible to clear the
goods in EU.
For this to be possible you will need to get an EU EORI, in one of the EU countries.
For selling DDP you will need to be VAT registered in one of the EU countries and
have a tax representative in EU to be able to pay the taxes for importation in EU.
EU Exit – Customs Declarations Explained
Trade Tariff and it’s importance.
UK Global Tariff https://www.gov.uk/trade-tariff
• Classification of goods
EU Exit – Customs Declarations Explained
Responsibility
IMPORTANT
• The Importer / Exporter is always responsible for the customs declarations, irrespective of the incoterms or if an agent will clear the goods on their behalf.
What penalties are there for getting it wrong?
• Reliefs removed
• Disruption to business and cashflow • Penalties – financial and even criminal!
EU Exit – Customs Declarations Explained
Requirements for submitting a full customs declaration yourself
For Exports
-You can use the National Export System (NES) or a software that communicates with CHIEF (or CDS).
For Imports:
• Software that communicates with CHIEF (or CDS) PLUS
Option 1: Non-inventory linked port – a badge for any Community Systems Providers ports or
Option 2: Inventory linked port – Software from the Community Systems Provider covering that port and a badge for that port.
EU Exit – Customs Declarations Explained
In Summary
• Customs declarations are complex
• Specialised knowledge and software are required
• Majority of companies choose to use an agent for
their customs Declarations (Freight Forwarders,
Hauliers etc)
• Importer / Exporter is responsible for the
declarations, even if a third party is submitting
them.
EU Exit – Customs Declarations Explained
www.thamesvalleychamber.co.uk
Thank you
Malin Geanovu
Business Development Manager – International Trade
Thames Valley Chamber of Commerce
150 Edinburgh Avenue
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Slough
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Berkshire
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SL1 4SS
T
+44 (0)1753 870 560
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+44 (0)1753 870 545
EU Exit – Customs Declarations Explained
Additional Support Available
New Initiative for Berkshire Businesses
If you are a Berkshire based SME you are able to benefit from a new collaboration between
Thames Valley Berkshire Local Enterprise Partnership, Thames Valley Chamber of Commerce and
the Thames Valley Berkshire Business Growth Hub, delivering a new initiative designed to provide advice on EU Exit to help SMEs to understand and adjust to the changes.
To find our more or to make an appointment for a FREE one to one advisory session delivered by experienced advisers from both the
Berkshire Growth Hub and Thames Valley Chamber of Commerce Visit: Are You EU Ready?
Or contact us on 01753 870600 or [email protected]