A blog by the TransportCloud team. We write about shipping, E-Commerce, international business, and customs.
There has been a great deal of change in the UK-EU trade, whether it is because of Brexit or new regulations, it has become more confusing and difficult. On January 1, 2021, the Trade and Cooperation Agreement (TCA) went into effect. Under the UK-EU TCA, Great Britain's imports from the EU have permanently changed, Let’s see how?
The UK and the EU have agreed to zero tariffs and zero quotas on goods, which means businesses are not subject to costly tariffs. However, to qualify for tariff-free access, firms need to ensure that their goods meet the rules of origin set forth in the treaty, ensuring these goods meet the local qualification requirements. If a product does not meet the Rules of Origin specified in the agreement, it will not qualify for zero tariffs and quotas. Businesses must identify the full origin of their goods as well as provide additional documentation to qualify.
Businesses now need to file customs declarations and paperwork to process the movement of goods under the agreement. It provides mutual recognition of the Authorised Economic Operator Safety & Security scheme, allowing streamlined customs procedures for traders already registered. Live animals and products of animal origin are subject to sanitary and phytosanitary (SPS) border checks, meaning agri-food traders incur additional costs and burdens. The agreement only allows for limited mutual recognition of conformity assessments. If a business is seeking to place a product on both UK and EU markets, goods need to undergo two sets of conformity assessments, rather than one, thereby increasing costs and complexity for businesses. Nevertheless, the UK and EU have agreed to streamline conformity assessments in specific sectors, including medicines, automobiles, organics, wine, and chemicals.
There are 70 countries in the world that have trade relations with the EU, and the UK enjoys preferential access to 40 of them. In the event of a no-deal Brexit, the UK will be forced to follow the World Trade Organization's MFN (Most Favoured Nation) tariffs when exporting goods. Britain is currently negotiating to prevent huge losses on exports.
If there is a no-deal Brexit scenario, here are the steps you will need to take
A business owner must ensure that their business has an Economic Operator Registration and Identification Number (EORI). You need a 12-digit EORI starting with GB to continue import goods from the UK. In the absence of an EORI number, you might face delays and increased costs when importing goods. It may not be necessary to obtain an EORI number if you are a service-based business or want to move goods between Northern Ireland and Ireland
An EU EORI number is required if you export goods to your business space in the EU. If you don't have one, you can get one from any customs authority in an EU country
To make export declarations, you can hire an agent. Hiring a customs agent, Freight forwarders, brokers, and fast parcel operators are some of the types of agents who can handle customs for you. To help you with imports from the EU, they must be established in the EU
However, if you are making customs export declarations by yourself, then you must know three important things when you export goods outside the UK: how to submit, when to submit, and which boxes to complete. How to submit – If you are submitting your declarations on your own, they have to be sent electronically through the Customs declaration service (CDS). To do this, you must first apply to gain access to CDS and then buy third-party software to submit declarations electronically via CDS
When to submit – For most of the goods that you export, you will need to submit a full declaration, without which your goods will be stopped at the border and delayed.
Any taxes and duties levied on the goods you export from the UK to the EU must be paid by your importer in the EU. Taxes and duties are determined by the classification of the goods.
Check the rules specific to your goods and your destination. You should check the following according to what you are exporting: To obtain an export license; you will need to understand the rules for exporting goods such as alcohol and tobacco; the rules for exporting controlled goods like firearms; and the import rules of the country to which you are exporting
Now claiming VAT refunds is a completely different process from what it was previously, as you now have to follow the refund procedures outlined by the member state you're exporting to
Businesses can no longer use the UK's VAT Mini One Stop Shop (MOSS) service to pay VAT due in EU member states. You must be aware of the deadlines for submitting, amending, and updating your registration details
First of all, what is TransportCloud? This Centralised platform allows you to book, track, and manage shipments across different carriers, whether they are parcels, pallets, or full loads, all in one place. It simplifies your shipping process so you can share up-to-date shipment information with your customers and other stakeholders
The website's efficiency makes tracking goods easier, in addition to the time you save not having to switch between platforms, this is to say that TransportCloud facilitates trade between the UK and the EU. But how?
Well, now that Brexit has added an extra layer of complexity, TransportCloud is the solution to your tracking issues, it allows you to manage all your shipments on one platform. Additionally, it keeps you up to date on all the customs information you would need to send out shipments. One more time-saving feature that enables you to focus on other issues rather than searching for updated rules
To sum up, businesses that want to trade between the UK and the EU would greatly benefit from the efficiency and help provided by TransportCloud. It makes tracking shipments much easier and can be very helpful day to day