Brexit Information

The UK and EU trade deal that was announced on 24^th December 2020 provides more clarity for UK and EU trade from the end of the transition period. Azteks Freight Forwarding department have done their best to minimize Brexit related disruption and are on hand to support you in this transition.

Therefore we’d like to confirm the essential requirements for shipping from 1 January 2021 and provide you with a knowledge based website that includes some key information on the formalities and new processes.

Administrative Essentials for Exporting Goods to Northern Ireland and Europe:

Customs Declarations are now required for shipments between GB and the EU and vice versa. Although the EU-UK Trade and Cooperation Agreement refers to ‘Zero Tariffs, this doesn’t replace the need to generate a Customs Declaration and so a Commercial or Pro-Forma Invoice is required. The trade deal only applies to Customs Duties, meaning that in most cases Customs Duties will not be applied to goods fulfilling all necessary ‘rules of origin’ requirements. However, VAT will still be levied. Customs Declarations are therefore required for goods to clear the border. Country specific restrictions will still be in place and any associated licenses will be required.

What information Aztek will require?

A Customs Declaration consists of a Commercial Invoice and must include the following:

• Exporter Name, VAT Number, EORI Number and Address
• Importer Name, VAT Number, EORI Number and Address
• Invoice Date and Invoice Number
• Goods Description
• Country of Origin Statement – (See below, Rules of Origin Requirements for further details)
• Commodity Codes (HS Codes)
• Quantity and Net and Gross weight
• Sales Price of Goods
• Currency
• Incoterms
• All items must be palletised and secured to Heat Treated (HT) Pallets, Wooden Frames, Crates etc…..that display the IPPC Stamp.
• We also need to receive a Direct Representation Letter on your own Company Headed paper and signed by someone who can sign on the companies behalf (Director/Manager) 
• Packing List
• Certificates and Licenses

A guide to Administrative Essentials:

Click on a section below for more information

Rules of Origin Requirements

To benefit from the EU-UK Trade Agreement ‘zero tariff’ its essential that you provide evidence of the country of origin in the commercial or pro-forma invoice for both B2B and B2C shipments. Please do this using the statement below for UK or EU goods fulfilling the relevant rules of origin requirements. Without the statement, it will not be possible to claim the duty relief, and it may not be possible to amend the documentation post clearance without additional charges. If at all.
The exporter of the products covered by this document (Exporter Reference No i.e. EORI number) declares that except where otherwise clearly indicated, these products are of preferential origin.
(Place and Date)
(Name of the Exporter)

IMPORTANT: The goods country of origin must be calculated and recorded accurately, and it is your responsibility to do this.

The Exporter Reference No is required for all UK to EU shipments (this reference is your GB EORI number) For shipments from the EU to the UK the exporter reference no (this reference is you REX number) is only required where the value of the shipment exceeds 6,000EUR / £5,700. May be omitted if the information is contained on the document itself.

Changes to UK VAT regulations will still be introduced on 1 January 2021, as this regulatory change is not part of the EU-UK Trade and Cooperation Agreement and applies to shipments being imported into the UK from any country worldwide. This means that most shipments valued at more than £135 will attract VAT on importation from any country, including the EU. For shipments with a value of £0-£135 when being sold by businesses to consumers in the UK, VAT will need to be collected at the point of sale and will therefore be the seller’s responsibility.

Northern Ireland Protocol

HM Government advised if you move goods between Great Britain and Northern Ireland to apply for a EORI number which begins with XI and to register with the Trader Support Service this is due to the implementation of the Northern Ireland Protocol. This is a free service which will guide you through changes and advise you of the declaration processes which is now required.

The Northern Ireland Protocol came into force on 1st January 2021.

Please log on to www.tradersupportservice.co.uk/tss once on here you can register your business for the service.

If you don’t already have a EORI number you will need to apply for this ASAP on www.gov.uk/eori providing you have the information required this will take you no more than 10 mins to complete and you should receive a letter from HMRC within 4-5days.

The information you will need to request an EORI number is your Company Registration details, date the business was founded, sic code, unique tax reference, corporation tax reference and what type of business you are. All information can be found on Company House.

Once you have registered on Trader Support Service and have your EORI number including one starting with XI for Northern Ireland the Administrative Essentials process will need to be followed for goods movement between GB-NI.

Apply for authorisation for the UK Trader Scheme if you bring goods into Northern Ireland - https://www.gov.uk/guidance/apply-for-authorisation-for-the-uk-trader-scheme-if-you-bring-goods-into-northern-ireland-from-1-january-2021

Useful HMRC links:

Understanding Incoterms

Click here download Incoterms^® 2020 Rules Responsibility Quick Reference Guide table

Incoterms® 2020 Rules Responsibility Quick Reference Guide
	Freight Collect Terms				Freight Prepaid Terms
Groups	Any Mode or Modes of Transport		Sea and Inland Waterway Transport				Any Mode or Modes of Transport
Incoterm®	EXW	FCA	FAS	FOB	CFR	CIF	CPT	CIP	DAP	DPU	DDP
	Ex Works (Place)	Free Carrier (Place)	Free Alongside Ship (Port)	Free On Board (Port)	Cost and Freight (Port)	Cost Insurance & Freight (Port)	Carriage Paid To (Place)	Carriage & Insurance Paid to (Place)	Delivered at Place (Place)	Delivered at Place Unloaded (Place)	Delivered Duty Paid (Place)
Transfer of Risk	At Buyer's Disposal	On Buyer's Transport	Alongside Ship	On Board Vessel	On Board Vessel	On Board Vessel	At Carrier	At Carrier	At Named Place	At Named Place Unloaded	At Named Place
Obligations & Charges:
Export Packaging	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Loading Charges	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Delivery to Port/Place	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Export Duty, Taxes & Customs Clearance	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Origin Terminal Charges	Buyer	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Loading on Carriage	Buyer	Buyer	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Carriage Charges	Buyer	Buyer	Buyer	Buyer	Seller	Seller	Seller	Seller	Seller	Seller	Seller
Insurance	Negotiable	Negotiable	Negotiable	Negotiable	Negotiable	*Seller	Negotiable	**Seller	Negotiable	Negotiable	Negotiable
Destination Terminal Charges	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Seller	Seller	Seller	Seller	Seller
Delivery to Destination	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Seller	Seller	Seller
Unloading at Destination	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Seller	Buyer
Import Duty, Taxes & Customs Clearance	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Buyer	Seller

https://www.gov.uk/trade-tariff - Look up commodity codes, duty and VAT rates to understand cost implications depending on the incoterms you are sending the freight under.