Are you Brexit ready

Introduction

Are you planning to make some major changes in your supply chain to ship directly from the EU or U.K. to your current location? Have you identified all the data that would be required for trading according to terms of third country?

The latest reports have suggested that the U.K. will be leaving the European Union on 30th March 2019. Going forward with this big step taken by the UK government, all the Single Market and Customs Union would now have to submit the import and export declarations for all the goods moving between the U.K. and the EU. There will be major changes seen in the Transport and Logistics companies.

Universal Delivery Solutions is gearing prepared to help you with every step to provide you with integrated service.

Changes in Customs Declarations

  • The following changes will be seen in the customs declarations for traffic between U.K. and EU:
  • Implementation of mandatory or any recommended pre-arrival declarations.
  • Introduction of postponed accounting VAT by U.K.
  • Acceleration in use of EIDR or self assessment depending upon the national implementation
  • Potential increase for customs warehousing
  • No low value consignment relief on VAT in U.K.
  • Increasing volume of declarations
  • Movement of goods under transit
  • Movement of excise goods will become 2 EMCS instead of one
  • Security filings including RoRo

Necessary steps for businesses

  • EORI Number: The Economic Operator Registration and Identification (EORI) number is mandatory for exporting and importing goods from/to the U.K. You need to apply for an EORI number if you ship goods outside the EU. The registration for this can be easily done on the website of local customs authorities and it takes up to 3 days to get this number.
  • HS Code: The HS Code, also known as Commodity Code allows the customs to easily identify the product type, VAT or duty rates that are applied to the product which is exported. The goods can neither be imported nor exported without the HS code.
  • Commercial invoice: While shipping goods outside the EU, the commercial invoice or the pro forma invoice is required. While a commercial invoice is used when goods are related for resale or to a commercial transaction, a pro forma invoice is needed when you're sending out the goods without a commercial value. Both documents are necessary for the customs authorities to evaluate the taxes or duties to be paid.
  • Data: IT updates have to be done during the preparation for Brexit to ensure that descriptions, values or HS codes are included. If this data is not completed or is entered incorrectly, the parcel will not leave from the sending country.