Ashleigh Maddison – Sales Assistant
01234 943066 | Ashleigh@azteklogistics.co.uk
The UK and EU trade deal that was announced on 24th 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.
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:
Click on a section below for more information
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.
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
|Incoterms® 2020 Rules Responsibility Quick Reference Guide|
|Freight Collect Terms||Freight Prepaid Terms|
|Groups||Any Mode or Modes of
|Sea and Inland Waterway Transport||Any Mode or Modes of Transport|
at Place Unloaded
|Transfer of Risk||At Buyer's
|At Carrier||At Carrier||At Named
|Obligations & Charges:|
|Delivery to Port/Place||Buyer||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller||Seller|
Taxes & Customs Clearance
|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|
|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.