Brexit Effect: What has changed for your Ecommerce shipments
With Brexit, the United Kingdom is classified as a non-European nation, therefore shipments to England can be defined as international.
This is obviously not the only change resulting from the nation's exit from the European Union, the advent of Brexit sanctioned in particular:
- The transition from "supply of goods" to "import and export of goods": a variation that requires the production of customs documentation for trade beyond European borders.
- Exit from the single market: with Brexit, the United Kingdom is no longer a member of the Single Market, founded on the free movement of goods and people. Therefore, it is up to the customs authorities to regulate the passage of goods and assess their compliance for entry into the country of destination.
- Exit from the customs union: As had been anticipated, the exit from the European Customs Union has led to a change in the status of UK shipments, which are considered to all intents and purposes international and therefore subject to different economic and bureaucratic conditions.
But what are the consequences for your e-commerce? Higher costs for shipments to the United Kingdom, by virtue of the tariffs and duties applicable by customs, as well as in relation to currency exchange and the amount of VAT. Secondly, having to face longer bureaucratic procedures due to checks and inspections of the goods at customs, as well as having to produce additional documentation.However, knowing in detail the actions to be taken and the procedures envisaged for non-European shipments, allows you to continue trading with England more effectively: here are some tips to better manage your practices and avoid making mistakes.
Guidelines for shipments to the UK
To continue shipping to the UK as efficiently as possible, it is essential to follow the rules outside Europe. How should you adapt your business to Brexit?
- Get a valid EORI number on your invoice. This acronym stands for Economic Operator Registration and Identification number: this is a mandatory number for those who intend to export and ship outside Europe, to be requested online via the Customs Agency website.
- Always ask for the sender's AEO number. This code, whose acronym stands for Authorized Economic Operator, is not mandatory for those who ship outside Europe but increases the reliability and speed of the procedures. In fact, it is a qualification issued to certify a good level of security in the international supply chain, therefore holding it can lead to greater ease in facilitating customs controls.
- Attach a commercial or pro-forma invoice in English. In addition to the pro-forma invoice, you need the transport document, the declaration of free export and, when required, any health or veterinary certificates, all in English.
- Enter the recipient's contact details. Following Brexit, contact details have become mandatory in the case of shipment of goods to the United Kingdom: it is therefore always essential to enter the tax code and VAT number of the recipient and the sender. If even just one of these pieces of information is missing, it may not be possible to collect duties and VAT and, consequently, your products might not be delivered to their destination.
- Classify your goods with the HS Codes. Familiarizing yourself with the product codes will allow you to identify with certainty the nature of your product at customs: always check the HS (Harmonized System) Code or the international standardized system that classifies each individual product, which is also mandatory in import-export commercial transactions. To find those you require, consult the appropriate section of the European Union website.
- Obtain the HMRC number. To sell through e-commerce in England and ship your products beyond the borders of the European Union, you must have an English VAT number: to obtain it, you must fill out the specific application for the assignment of the HMRC (Her Majesty's Revenue and Customs) number. Once obtained, it must be included in every invoice accompanying the goods destined for a private individual, in the case of values of an amount not exceeding 135 pounds approximately 150 euros. When this figure is exceeded, the British administration makes the payment of VAT mandatory for the exporting company.
- Use the DAP and DDP Services. Depending on the type of activity, it is possible to choose the DAP (Delivered at Place) or DDP (Delivered Duty Paid) service: in the first case the payment of duties is the responsibility of the importer, in the second case it must be paid by the exporter before delivery of the product. If you engage in B2C e-commerce, the ideal solution to meet the needs of your customers is DDP. If you are the owner of a B2B company, the DAP is the most suitable strategy, especially for sending large quantities of goods to a retailer.
- Fill out the certificate of origin of the goods. To ship your products to the UK it will be necessary to have a certificate of origin of the goods, to be drawn up by self-certification. This is a procedure that allows you to take advantage of the exemption from customs duties, to be attached to the invoice for both B2B and B2C: without this document it will not be possible to obtain a subsequent revision of the declaration and you run the risk of application of additional costs.
To make your shipping practices more streamlined and effective, it is important to be able to count on the support of a valid and reliable partner, such as that of the professionals of the MBE Centres. Our experts are at your disposal to provide you with completely free advice and help you in the operational management of the operations of Import - Export to and from the UK. Contact us to find the best solutions for you.
