Brexit: what it is, consequences, and tips for international shipments
Brexit, namely the exit of the United Kingdom from the European Union, is drawing closer and will inevitably have a significant impact on GRUBER Logistics, as an international carrier, and on the business of many of our customers.
Although there is still no certainty as to what the situation will be the day after Brexit, we have summarised the key points and compiled some advice on how best to prepare for a “no deal” scenario.
Unless the United Kingdom and the European Union reach an agreement before 12 April, as of 00:00 (CET) on 13 April, the United Kingdom will become a “third country”, entailing a series of legal repercussions for commercial operations and, consequently, for freight logistics.
Here you will find the most important information across the following sections:
- Export of goods from the European Union to the United Kingdom (EU Export)
- Import of goods from the United Kingdom to the European Union (EU Import)
- Documentation for trade operations between the EU and the UK
1. Export of goods from the European Union to the United Kingdom (EU Export)
EORI Registration
Companies importing goods from the United Kingdom will need to hold an EORI registration.
As a first step, you will need to verify that your British customer is registered in the UK EORI system. You can do so at this link: http://ec.europa.eu/taxation_customs/dds2/eos/eori_validation.jsp?Lang=en.
Should you need to apply for an EORI number, you can use this link: https://www.gov.uk/eori.
Commodity classification
The United Kingdom has published its customs tariffs, which can be viewed at: https://www.gov.uk/trade-tariff
In order to ensure an accurate customs declaration, please ensure that goods are classified under the correct code and that this code is entered on the invoices accompanying each product in international shipments.
You can check the commodity code at: https://www.gov.uk/guidance/finding-commodity-codes-for-imports-or-exports
Customs formalities
To enable the transit of goods across the UK border, a customs declaration must be submitted. This step can be carried out by the company itself or delegated to a customs broker.
Regardless of how goods are cleared upon arrival at customs, every customs declaration (with the exception of transit declarations) must be submitted to the customs office prior to the arrival of the goods, in accordance with the timelines set out by customs regulations.
The successful submission of the customs declaration is a mandatory requirement for boarding goods onto ferries or for transit via the Eurotunnel.
The relevant legislation for customs procedures in the United Kingdom is the Taxation (Cross-border Trade) Act, adopted by the British government in September 2018, which will come into force on 13 April 2019 in the event of a “no deal” scenario.
PLEASE NOTE: as of 7 February, UK-based companies can register for simplified import procedures in the event that the United Kingdom leaves the European Union without a deal. These procedures allow companies to provide a reduced set of information upon the arrival of goods, deferring customs formalities and duty payments. However, this process is only applicable to goods declared by British traders themselves. It is not valid for goods declared by freight forwarders or other agents acting on behalf of a trader!
Instructions on how to apply are available here: https://www.gov.uk/guidance/register-for-simplified-import-procedures-if-the-uk-leaves-the-eu-without-a-deal
ENS declaration – security measures
ENS declarations fall into two distinct types:
- Exit summary declaration: submitted by the exporter together with the export declaration.
- Entry summary declaration: this procedure is suspended until 1 October 2019. After that date, the entry summary declaration may be submitted by the carrier, who will be responsible for the ENS declaration, or by the importer within the import declaration.
In any case, the entry summary declaration must be submitted:
- 2 hours prior to arrival at the port of destination for ferry crossings
- 1 hour prior to arrival at the Eurotunnel terminal for crossings via the Eurotunnel
The ENS declaration is not required for goods declared under transit.
Summary of the key steps regarding EU – UK trade operations
Before the dispatch of goods, please verify the required documentation with your logistics provider and customs broker.
- EU export declaration (ensure that the MRN and EORI number are communicated to all parties involved)
- Filing of the UK import declaration prior to arrival at the UK border
- Notify the customs broker upon arrival of the goods at the UK terminal
- Customs clearance and payment of customs duties (or deferred payment)
- Release of goods
Please keep in mind that certain categories of goods (so-called “controlled goods”), namely goods requiring an import licence or products subject to excise duty, are governed by additional regulations: https://www.gov.uk/government/publications/uk-trade-tariff-import-prohibitions-and-restrictions/uk-trade-tariff-import-prohibitions-and-restrictions
Click Brexit Preparation – Export to download the PDF.
2. Importing goods from the United Kingdom to the European Union (EU Import)
EORI Registration
Companies importing goods into the European Union must be registered in the EU EORI system.
If you need to apply for EORI registration, you can do so through national customs authorities:
In Italy: Customs portal at https://assistenza.adm.gov.it
In Germany: https://www.zoll.de/DE/Fachthemen/Zoelle/EORI-Nummer/Beantragung-einer-EORI-Nummer/beantragung-einer-eori-nummer.html
Classification of goods
Goods imported into the European Union must be classified according to the Common Customs Tariff of the EU, with the application of the relevant customs duties. For further details, please visit http://trade.ec.europa.eu/tradehelp/eu-product-classification-system.
Customs formalities
To allow goods to cross the European Union border, a customs declaration must be submitted.
This step can be completed by the company itself or delegated to a customs broker.
Although customs clearance takes place once the goods reach customs, every customs declaration (except transit declarations) must be pre-lodged in the customs system.
The governing legislation is the Union Customs Code.
ENS Declaration – Safety and Security Measures
ENS declarations are divided into two different types:
Exit Summary Declaration: filed by the exporter alongside the export declaration.
Entry Summary Declaration: this security amendment to the European Community (EC) Customs Code requires the carrier – or authorized representative – to submit an electronic Entry Summary Declaration (ENS) at the first (air)port of entry into the customs territory of the European Community.
This declaration must be submitted prior to the arrival of the goods, according to the deadlines set by the European Community.
The party responsible for lodging the ENS declaration is the carrier. However, the declaration may also be submitted by the importer or their customs broker.
An ENS declaration is not required for goods declared under transit.
Summary of the main steps for UK – EU trade operations
Before the goods depart, please carry out a documentation check with your logistics provider and customs broker.
UK Export Declaration (ensure the MRN and EORI number are shared with all parties involved)
Pre-lodgement of the EU import declaration prior to arrival at the EU border
Entry Summary Declaration at the customs office of first entry
Notify the customs broker upon arrival of the goods at the EU terminal
Customs clearance and payment of customs duties (or deferred payment)
Release of goods
Please note that certain product categories may be subject to prohibitions and restrictions, and that import and export licenses issued by the United Kingdom will no longer be valid in the European Union.
Click Brexit Preparation – Import to download the PDF.
3. Documentation for EU-UK trade operations
Transport documents are likely to remain unchanged compared to those currently in use. Nevertheless, shipping documents must include a range of additional details:
Number of packages
Packaging type (UN code)
Customs code (HS Code – if multiple codes apply, the following information must be provided for each code)
Goods description
Gross weight (kg)
Net weight (kg)
For ADR transport: UN number
For shipments bound for the United Kingdom: volume (m³)
Please also ensure that the following details are provided to all parties involved (freight forwarder, customs broker, importer):
Shipper’s name, address, and EORI number
Consignee’s name, address, and EORI number
Export declaration number (MRN code)
Click Brexit Preparation – Documentation to download the PDF.
Useful links
https://ec.europa.eu/info/brexit/brexit-preparedness/preparedness-notices_en
https://www.legislation.gov.uk
https://www.ec.europe.eu/taxation_customs/uk_withdrwal_en
https://www.gov.uk/guidance/exporting-and-importing-goods-if-the-uk-leaves-the-eu-with-no-deal
http://ec.europa.eu/ecip/security_amendment/procedures/index_en.htm