From 1st January 2021, the transition time of the United Kingdom (UK) leaving from the European Union (EU) is over. This means that from 1st January 2021, trading with the UK will be subject to customs formalities. ACE Logistics last departure to UK is scheduled 17.12.2020 and starting from 4.01.2021 new conditions will apply.
In trade with third countries, it is important to pay attention to:
- EORI number
The registration and identification number of the European Union is obligatory for traders engaged in foreign trade in the export, transit, import or other customs operations of goods. With the entry into force of Brexit, EORI will also be mandatory for trade with the United Kingdom. In Estonia, the EORI code is issued by the Estonian Tax and Customs Board.
- Classification of products
Both export and import declarations must include the tariff classification code of all goods in accordance with the Harmonized System (HS) and TARIC nomenclature. Of course, you can also use the HS codes required for Intrastat declarations. You can read more about assigning commodity codes: https://www.emta.ee/eng/business-client/customs-trade-goods/brexit-and-its-effects-customs-clearance-and-trade-united
In the new agreement between the United Kingdom and the EU, i.e. in a trading environment with a third country, all consignments will have to be present the invoice of the goods in the future. The invoice must contain important information that allows us to prepare and submit appropriate customs and safety declarations on behalf of our customers. This information shall include the full description and quantities of the goods and the origin of the goods (preferably with a packing list), the above tariff classification code, the gross and net weight of the product, the sales value and the delivery terms of the consignment. In addition, some classification codes require so-called “other quantities” (eg square meters for certain fabrics, liters for liquid chemical products, etc.). Other data and information requirements and supporting documents, such as phytosanitary certificates or licenses, depend on the product code. It is also important that the documents submitted contain a clear reference to the identification of both the importer and the actual consignee, if they differ.
- Preparation of the customs declaration and payment of customs duties and VAT
Customers who export or import from the UK should contact their customer in the country of destination to find out if they are prepared to make a future customs declaration and possible tax liability. It is important to find out who carries out customs clearance. If you wish ACE to complete an export or import customs declaration, ACE must be authorized to complete customs formalities on your behalf. To receive an authorization, please write to firstname.lastname@example.org
Exports of the goods to England from 01.01.2021
Before sending the goods to UK, please send us the following documents:
- Consignment note
- Invoice (Commercial invoice / pro forma invoice)
- Packing list / delivery note
- Export documents (export declaration, if desired, made by ACE; certificate of origin, etc.)
- Other product-specific documents if possible and necessary
The documents must include the following information:
EORI number, consignee contact details, importer contact details (if different from consignee), invoice number, delivery terms, number and type of packages, exact description, commodity code (TARIC), value of the goods and gross / net weight.
As for Incoterm, please use preferably DAP (delivered at place), according to which the consignee is responsible for making the import declaration and paying VAT and customs duties in the UK. Before sending the goods, we are obliged to check from the partner’s database whether a POA (Customs power of attorney) form has been signed with the consignee to make an import declaration. If the POA has not been signed, we will not be able to ship the goods until we have received confirmation from the partner that the customs formalities have been completed. Therefore, we ask all our customers who have not yet done so to inform us as soon as possible of their UK consignees (company name, address, contact person, e-mail, telephone and EORI number) so that our partner Dachser Ltd can contact customers and complete the necessary formalities before the goods are shipped out, in order to avoid possible delays in deliveries from 01.01.2021.
Shipments to private customers using aceB2C service can be executed only with Incoterm DDP (delivered duty paid), for which the consignor is responsible for both making the import declaration and paying VAT in the UK. Dachser Ltd. in such cases, represents the client (Estonian exporter) in completing import formalities in the UK. When using the DDP delivery terms, please sign the General CRA (Customs Representation Authorization) form, which will be forwarded to you upon request. Please note that the exporter is to the extent responsible for any possible financial claims (including customs fines, etc.), which are related to the customs clearance of imports and to some extent such cases can be valid up to 10 years. We do not recommend DDP with the terms of delivery and, if necessary, please use it only for a short or temporary period. In the case of continuous shipments to private customers, we recommend finding a company as a UK taxable person. The application can be found at: https://www.gov.uk/vat-registration.
Customs clearance prices in England:
Main page (1 customs code) 55€
Each subsequent code 1.5 €
In case of additional questions, please contact your client manager or write to email@example.com. Useful information can also be found: https://www.emta.ee/et/brexit