Import Guide: Brexit 5 (CASE 11)

Import Guide

START

Denisse Sanchis

Ikram Bekhedda

Lidia Campos

Daniel Gómez

VAT (IVA)

POST-BREXIT IMPORT GUIDE

VIDEO

TRANSPORT

DOCUMENTS

PREPARATION

INDEX

Step-by-Step

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1) Register for an EORI number You need an EORI number in order to trade, whether you are based in the UK or EU27. Your customers will need to register for an EU EORI number if they do not already have one. You can obtain an EORI number by registering with the Customs authority in your country.

2) Complete and send a Power of AttorneyDSV needs written authorisation from you to enable DSV to act as a Customs Agent on your behalf. This will apply to both Export Declarations and Import Clearances. Without this we cannot move your cargo through Customs. You can obtain these from your local DSV office.

3) Find out the commodity (HS classification) code of your goodsCommodity codes classify goods so you or your Broker can fill in import declarations. Classifying your goods correctly means that you:

• Pay the correct amount of duty.
• Know if duty is suspended on any of your goods.
• Know if any preferential duty rates can be applied.
• Know if you need to obtain an import or export licence.

If you are unsure about how to classify your products, your national customs authority will have guides available online.

4) Determine the value of your goods The value of the goods is necessary to determine the level of customs duty applicable. The value is also used for trade statistics. You arrive at the value of the goods by using one of six ways or ‘methods’. It is important to note that you must try Method 1 before going on to Method 2 and so on. Method 1 is based upon the transaction value. This is the price paid or payable by the buyer to the seller for the goods when sold for export in accordance with specific rules.

5) Check whether your goods are prohibited or restricted in any way or whether any additional requirements are necessary There are some goods that you can’t bring into countries. Some goods are restricted, and you will need a special licence to import them. Licences are often needed for the import and export of military and para-military goods, dual-use and technology, artworks, plants and animals, medicines and chemicals. For more information, please see the current guidance on prohibited and restricted goods, Import and Export Licences on your local Customs or Government website.

6) Establish the origin of the goods Establishing the origin of the goods will help to identify whether they qualify for lower or nil customs duty. There are two main categories of origin in the rules:

• Goods wholly obtained or produced in a single country
• Goods whose production involved materials from more than one country.

The second category is more complex as there are several criteria to follow. Once you have clarified the origin of the goods, you can find out if they qualify for preferential treatment under a tariff preference scheme.

7) Consider whether you are eligible to use any facilitationsThere are several of customs special procedures available to traders:

• Storage comprising of Customs Warehousing (CW)
• Specific use comprising of Temporary Admission and End Use
• Processing comprising Inward and Outward Processing
• Transit.

Before deciding whether to use a special procedure, you should research the procedure to make sure that you can meet all the obligations attached to it. To note, the use of special procedures requires prior authorisation from HMRC (UK) or local authorities in one of the 27 EU member states.

8) Declaring your import to customsIt is possible to make your own customs declarations, but the process is complicated and only suitable for more experienced importers. Most businesses use a customs broker or agent to do this for them. If DSV are handling your goods we can assist you with this. If you have decided to use a Customs Broker, you must, in a formal written authorisation, outline whether the broker is empowered to act as a ‘direct’ or ‘indirect’ representative. DSV can explain this and supply the necessary authorisation forms. If outsourcing customs to a 3rd party broker, it is important to inform DSV of this. Working with outsourced brokers can potentially result in additional delays in the process.

9) Pay duty on the goods You might have to pay import duty depending on the classification of the goods and where they come from. Some goods benefit from a duty suspension regime. Information on this can be found on your national Customs website. Your goods might also be liable to additional duties, such as anti-dumping duties. Goods aren’t normally released by Customs until you’ve paid all the charges due. Exceptions to this include if the importer of the goods opens an account with Customs. Conditions must be met to take advantage of this scheme which will include providing guarantees.

Preparation

RX SEAPORT

RX SeaPort is a digital system that joins up the data submitted and required by all parties at the Port of Zeebrugge. The data is registered for imports and exports through their e-Desk. This can be done manually, through a linked data connection or through customs software.Drivers will not be allowed to proceed to the Zeebrugge Terminal if customs declarations have not been pre-notified through the e-Desk of the RX Seaport system.If goods arrive from the UK without declarations pre submitted they will be held at the terminal at a cost. Information on pre-registration of customs data via the e-Desk can be found at:

EU TARIFFS

INCOTERM

EU EORI

Every business importing goods into the EU will need to have an Economic Operator’s Registration and Identification (EORI) number from a customs authority in the EU. After the transition period only EORI num- bers issued by an EU Member State will be acceptable in the EU. EU importers will need to have an EU EORI number even if they use a forwarder or customs agent for import declarations.

CASE 11

TARIC CODE

TARIC CODE: 8708999790

INCOTERM EXW (EX WORK): Under the EXW incoterm, Fleur has almost total control of shipping, so it can be extremely competitive. In terms of costs and risks, the EXW incoterm requires minimal involvement of the seller and greater responsibilities of the buyer. That said, working in EXW conditions is best suited for experienced buyers who are familiar with the procedures in the country of origin and can manage the entire import process

In order to qualify for preferential tariff rates under in the FTA, businesses must meet certain domestic con- tent or processing requirements, known as Rules of Origin. The Rules of Origin determine the nationality of a good, and are negotiated as part of any FTA. They are intended to prevent tariff circumvention, whereby third countries can take advantage of differences in Most Favoured Nation tariffs to route their exports via one FTA partner to the other. Even though the importer generally pays the tariff, both the importer and exporter must have evidence that the goods meet the rules of origin. If you cannot fulfill the Rules of Origin you must pay the ‘Common Customs Tariff’ (CCT) or ‘Common External Tariff’ (CET)here. EU importers can also check with the relevant authority on claiming retrospective claims on tariffs and duties.

+ info

B/L

invoice

cmr

PACKING LIST

UK LICENSE

insurance

dua

Documents

marine

Info

Info

land

Info

CMR: The letter of international carriage of goods by road regulates the international transit of goods in terms of responsibility and documents. It is mandatory to keep it for five years in intra-community operations, both for the buyer and for the seller. It is important that this is signed and sealed by the final recipient. There will generally be four copies of the CMR consignment note: 1. Sender's copy. 2. Copy for the recipient. 3. Copy that will accompany the goods throughout the journey and to their final destination. 4. Copy of the administration.

The UK Licence for the Community also allows you to carry out a limited number of haulage jobs inside an EU country (called ‘cabotage’) or between 2 EU countries (called ‘cross-trade’).

The main difference is that an HBL is issued by an NVOCC or a freight forwarder and usually indicates the actual shipper and consignee. While an MBL is issued by the shipping company or main carrier and usually lists the agents or parties involved in the transport of the merchandise. Also, the actual freight forwarder will only receive an MBL if they work directly with a main carrier or freight forwarder. If the charger works with an NVOCC, it will receive an HBL.

The marine transport insurance covers the risk of goods that the traders transport via sea or air. It covers the goods against damage due to the loading and unloading. This type of insurance not only includes national boundaries but international transportation as well. Such kind of policy can be a renewal or permanent.

The land transport insurance policy covers the risks for land transportations such as trucks and other small vehicles. It provides coverage within the boundaries of the country that is why it is known as national insurance. It covers the goods against collision damage and theft.

VAT (IVA)

• Arguably the biggest change for businesses arising from Brexit is that all arrivals and departures of goods to and from the UK will become ‘imports’ and ‘exports’ from a VAT and Customs Duty perspective. Currently, only goods whose origin or destination is outside the EU are considered “imports” or “exports”. The importance of this distinction is that imports attract Import VAT which is recoverable subject to the usual rules on VAT recovery and Customs Duty, which is not recoverable. Crucially, as the Duty is not recoverable this will, unfortunately, represent an additional cost of doing the same business.

• To import to Belgium, we will need to know the VAT rates that will be applied as the goods will come from the UK by ship and land in Belgium, once there the goods will be transported by truck to the Belgian company.

vat rate in belgium

Transport

1) Exporter’s factory- Immingham port

3)Zeebruge port - Importer factory

2) Immingham port - Zeebruge port (Brujas)

Denisse Sanchis

Daniel Gómez

Lidia Campos

Ikram Bekhedda