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BREXIT
Additional customs formalities appeared after Brexit make the job of exporters and importers much more complicated.
BREXIT CHANGES
As on 1st of January, 2021, the United Kingdom left the European Union and with this new legislation for the export of goods appeared. Post-Brexit customs formalities concern both goods entering the territory of the EU and those entering the UK. Brexit imposes an obligation to clear all goods. Additional customs formalities appeared after Brexit make the job of exporters and importers much more complicated. We do advise to take under consideration a service of professional customs agency.
EORI number
Concerning any customs formalities after Brexit, EU companies must have an EU Economic Registration and Identification Number (EORI). This number allows to identify the company in all customs procedures and formalities and it is used for the exchange of information within the customs administration.
Important – EORI numbers issued formerly by the United Kingdom will no longer be accepted in the European Union. Companies based in the UK dealing with import into the European Union are supposed to obtain an EU EORI number or indicate a tax representative.
Permits and licenses
After Brexit, AEO licenses and other UK permits are no longer valid in the EU. If companies want to obtain an EU authorization, they must apply for it in any EU Member.
Procedures
GB → EU
Step 1 – Customer registers for an EORI number.
Step 2 – After purchase, the customer will receive a commerical invoice.
Step 3 – Customer appoints a customs agent (for export & import).
Step 4 – Customs will then send customer a receipt of their MRN (Movement Reference Number).
Step 5 – Customer needs to send the MRN number to the transport/haulier to create PBN (Pre-Boarding Notification).
Step 6 – Haulier uses PBN number to create GMRN (Goods Movement Reference Number).
Step 7 – Goods are ready for export.
Costs/Charges
Customs agent charge is applicable: Approximate cost £50.00 on each side.
VAT Treatment
VAT can be deferred assuming you have a valid VAT number and you have ensured that relevant “transit procedures” have been followed.
Duties/Customs
No additional customs/duty/excise is applicable.
EU → GB
Step 1 – Customer/seller registers for an EORI number (one number issued per business).
Step 2 – Customer appoints customs agents (for export & import). The agent requires a commercial invoice including an EORI number.
Step 3 – Customs will then send customer/seller a receipt of their MRN (Movement Reference Number).
Step 4 – Customer needs to send the MRN number to transport/haulier to create PBN (Pre-Boarding Notification).
Step 5- Haulier uses PBN number to create GMRN (Goods Movement Reference Number).
Step 6 – Goods are ready for export.
Costs/Charges
Customs agent charge is applicable: Approximate cost between £50.00 on each side.
VAT Treatment
VAT can be deferred assuming you have a valid VAT number and you have ensured that relevant “transit procedures” have been followed and/or an assigned customs agent is used to handle customs paperwork by using their VAT deferment account.
Duties/Customs
No additional customs/duty/excise is applicable.
GB → NI
Step 1 – Customer registers for an XI EORI number.
Step 2 – After purchase, you will receive a commerical invoice from Euro Auctions.
Step 3 – Customer registers with TSS (you can do that here) and they provide an MRN (Movement Reference Number).
Step 4 – Haulier uses MRN number to create GMRN (Goods Movement Reference Number).
Step 5 – Goods are ready for export.
Costs/Charges
Customs agents charges is applicable if you do not complete the customs entries yourself via TSS.
VAT Treatment
No change.
Duties/Customs
No change.
NI → GB
No change.
EU → NI
Transit documentation required if using GB or ROI land bridge as Northern Ireland will remain aligned to a limited set of EU rules, including those rules related to goods. This will avoid any customs or regulatory checks.
Costs/Charges
No additional costs.
VAT Treatment
No change.
Duties/Customs
No change.
NI → EU
Transit documentation required if using GB or ROI land bridge as nothing changes because Northern Ireland will remain aligned to a limited set of EU rules, including those rules related to goods.
Costs/Charges
No additional costs.
VAT Treatment
No change.
Duties/Customs
No change.