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Frequently asked questions about Brexit (FAQ)

What are the implications of Brexit for your business?

Are you an eCommerce business shipping to the United Kingdom? If applicable, shipping rules and regulations have changed for you. As a result of Brexit, a customs obligation applies for incoming and outgoing goods from January 1, 2021. Curious what this means exactly? Have a look at the most frequently asked questions (FAQ) about Brexit.

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UK VAT number: do I have to apply?

It sounds very obvious, but this is one of the most important questions within the Brexit FAQ. As a consequence of Brexit, EU companies no longer fall under the distance selling scheme, but become overseas markets. As an overseas seller, you are required to apply for a UK VAT number. You can apply for a UK VAT number by registering online through the website of United Kingdom’s tax authority: HMRC (Her Majesty’s Revenue & Customs).

If you are in possession of a UK VAT number, you must file a tax return in the United Kingdom. Therefore, don’t forget to inform your accountant about filing a tax return. Please click here for more information.

EORI number: do I have to register?

To receive and ship parcels from the United Kingdom, you must apply for an EORI number (Economic Operator Registration and Identification). You need this number to submit your customs declarations for the export of goods outside the EU.

Not only do you have to register your packages with Dutch customs, but also with British customs. If you have a representative in the UK, check whether if they have a UK EORI number. If your representative does not have a UK EORI number, or you provide the import in the UK yourself, make sure you have a UK EORI number.

For more information, please click here.

What is FTA?

FTA means Free Trade Agreement. For destination UK it means all EU origin goods 0-135GBP value are exempt from duties.

 

General information

What is an HS code?

An HS code (Harmonized System code) or Commodity Code is a code that customs worldwide use to categorize products. You must always state the EU HS codes on your goods to the United Kingdom, this code consists of ten digits.

Shipping methods: what are Incoterms?

When you ship goods outside the EU, you must use Incoterms. Incoterms are standardized international regulations for the transport of goods. In other words, incoterms serve as a contract between the buyer and sales and describe all rights, costs and risks that may be involved in the transactions of goods.

B2C Europe offers two options for web shops that ship to the United Kingdom: Delivery Duties Paid (DDP) and Delivery Duties Unpaid (DDU). With a DDP option, the seller is responsible for paying the taxes and duties and with a DDU option, the buyer is responsible. If the buyer is not informed, the consumer can refuse the package. This will mean that the seller will eventually have to pay for the corrected costs and the return of the package. Also check out the previous blog “What does the Brexit mean for EU web shops?

Is my CE marking still valid?

Until the end of 2021, the CE mark will remain valid in the United Kingdom, although the UKCA (United Kingdom Conformity Assessed) marking entered into force on January 1, 2021. This means that from 2022 only products with a UKCA mark will be accepted in the United Kingdom. The CE mark indicates that the product complies with the applicable rules within the European Economic Area. The UKCA marking is it own British alternative.

Will my delivery time change?

Because customs have to process your request to import or export goods to the United Kingdom, the delivery time of your incoming or outgoing goods may be slightly delayed. Therefore, be careful when making promises about the delivery time of your products.

Who pays?

Who pays VAT?

If the value of the parcel is between 0 and 135 GBP, it is considered as a low value parcel. Therefore, the seller pays Sales VAT directly to UK tax authorities directly with monthly declaration to HMRC based upon EORI and VAT registration. However, if the value of the parcel is above 135 GBP, the parcel is considered as high value. In that case, the seller pays VAT directly to B2C Europe upon invoice, 7 days after invoice date.

Will additional costs be charged?

In addition to the regular transport costs, an additional customs surcharge and any import duties and VAT will be charged. This depends on the delivery condition.

Who pays Customs Clearance cost?

The seller pays Customs Clearance Handling Cost to B2C Europe upon invoice of B2C Europe 0,50 EUR per kg with a minimum of 0,50 EUR per parcel.

Who pays Duties?

The seller pays Duties to B2C Europe only when levied at Customs Entry based upon the manufacture origin, value and HS classification of the goods. For values 0-135 GBP goods will be classified on manufacture origin of the goods.

The seller pays Duties directly upon invoice to B2C Europe when levied at Customs Entry based upon the manufacture origin, value and HS classification of the goods, 7 days after invoice date. For values >135GBP goods will be classified on manufacture origin of the goods.

 

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Should shipping cost be included in the customs value?

Shipping cost must be included in the total value of the parcel for customs declaration. If the price of the parcel is between 0-135 GBP, the seller pays to UK authorities the sales tax on value including shipping cost. For values >135 GBP, the seller pays to B2C Europe the VAT and Duties on value including shipping cost.

How do I declare to British authorities that I already paid duties and taxes to B2C Europe?

You will receive a statement from B2C Europe based upon C8T8 certificate to provide you with the proof of payment of VAT and duties for high value parcels. Seller must offset already paid Sales VAT to Import VAT levied upon customs entry in monthly HMRC declaration.

Will I have a deposit with B2C Europe for a months trade?

If you are shipping parcels below the value of 135 GBP, then the seller is responsible for declaring and paying the Sales VAT to HMRC. Therefore, you do not have a deposit with B2C Europe.

If you are shipping parcels with values >135 GBP, then you will have a deposit with B2C Europe. If no deposit, then B2C Europe charges 3% deferment fee on top of the duties and taxes to be paid within 7 days after invoice.

What documents do I need to physically add to my shipment?

You must attach the physical customs invoice in triplicate to your shipment. If applicable, you must also add the transit and export documents you have created.

Do I need to state the country code origin?

The country of manufacture of the goods must be indicated if you are shipping parcels to the UK. This information is important and may determine applicable duties/taxes.

 

Questions due to Brexit?

Any question left?

We hope that we have given you the most insights and regarding Brexit. Is your question not in the Brexit FAQ? Or are you curious about what we can mean for you in the field of international parcel shipping or customs clearance? Then contact one of our experts.

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