Brexit solution for simplified customs clearance

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Brexit solution for simplified customs clearance

From 1st January 2021, full import controls and subsequently full customs declarations will be required on all goods crossing the borders between the United Kingdom and the European Union.

The UK formally left the EU on 31st January 2020. Regardless of the outcome of the Free Trade Agreement negotiations, customs procedures will become compulsory when the transition period ends on 31st December 2020, possibly creating an environment which is five times the current demand in formalities.

To simplify customs procedures, the UK government has introduced a “staged approach” for imports into the UK. UK importers will have the opportunity to enter non-controlled goods under the so-called Customs Freight Simplified Procedure (CFSP), which offsets the need for a full frontier declaration until 30th June 2021. Also, traders will be able to utilize the postponed VAT mechanism, where import VAT only has to be accounted for, but not paid at the time of entry into the UK.

Here is what you need to provide to your freight forwarder to move the goods to/from the UK after Brexit:

:: Power of attorney letter
To authorise a freight forwarder to act as your direct representative in the completion of customs declarations, also referred to as Letter of Empowerment (only needs to be completed once).

:: EORI numbers of recipient and sender

  • The Economic Operators Registration and Identification (EORI) number is a prerequisite for customs clearance of goods in the European Union and the UK.
  • The EORI number of the sender and the recipient are two different numbers. Both must be specified when making import and export customs clearance.

:: Export declaration
If the shipper creates the export declaration independently, provide the MRN number of the export declaration (EAD) – to be inserted in the transport order – and handover the export accompanying document to the driver.

:: Commercial invoice
Customs duties and valued added tax are calculated based on the value of goods and currency.

:: Customs tariff number (HS code) of the goods
Harmonised classification code of the goods.

:: Description of goods
Concise description of the goods in local language, including gross/net weight and number/type of packaging.

:: Value of goods
Monetary value of goods and currency to calculate the customs duties and value added tax.

:: Incoterms
Agree on delivery terms with your business partners, as they define next to the organisation of transportation, who is responsible for the customs clearance and associated costs.

:: UK import procedure: full declaration or CFSP easement
Inform which UK import procedure will be used based on the UK Border Operating Model. The option needs to be confirmed and initiated prior to the EU export. If your freight forwarder is not commissioned to prepare the full import declaration, provide the ENO in the transport order.

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