Is your business Brexit-proof?

Using our experience working with leading global transport and logistics firms, we are able to work with UK firms to deliver contingency solutions to help them continue to deliver a consistent and reliable service – whatever challenges Brexit may bring.

Guidelines as to how your business can be prepared for Brexit

EORI number – an EORI number (of Economic Operator Registration and Identification number) is a unique reference number that is used by Customs and other border authorities to track shipments that enter and leave the EU. With a current ‘no-deal Brexit’ looking likely, an EORI number will be mandatory for any UK companies who wish to trade with the EU (note, if you only supply services to the EU – rather than products – this will not apply. Also, shipments between Ireland and Northern Ireland are also exempt). The number will prevent your shipment from delays and additional costs. To apply for a number (it will take approximately five days) visit https://www.gov.uk/eori

Commercial Invoice - It’s highly likely – whatever the outcome 31 October – that all items shipped from the UK into the EU will need to include a Commercial Invoice (sometimes called an Airway Bill). Here we take a look at what is needed on the Commercial Invoice, why it is important and how the information given will impact on the duty and customs charges that businesses will need to factor their overheads and costs.

1. Your commercial invoice should be printed on paper with your company logo and be included with your shipment
2. Clearly state the reasons for export (sale? ? ?)
3. – or ‘International Commercial Terms’ defines which party is responsible for the shipment during shipment
4. Description of goods – be clear what is included, don’t be generic – as much information as possible. If they are branded – make it clear. Model numbers are good here. Be specific
5. Quantity of each item – give a breakdown and a total
6. Include Country of Origin – be mindful that this may be different to the country that you are exporting from
7. Include the market price of goods. Be prepared to be questioned further and supply further evidence if this figure is deemed unusual by Customs officials
8. Include Net and Gross weight (remember, gross weight is the item weight plus any packaging)
9. Don’t forget to sign

Duty and Taxes – and understand the differences

When we leave the EU goods will be subject to Duty and Taxes (or VAT) and this will have an impact on your overheads. Here’s a quick guide to the difference and how they are calculated:

Duty is added to protect local industries against foreign competitors and also to generate income and is calculated using the following factors.

1. A percentage applied to a specific item that you are shipping. To understand the duty rate for a particular item, visit the government website of the country that you are shipping to
2. The combined total of the value of the product, plus freight costs, insurance and any other additional costs
3. These two numbers multiplied will give you the value of Duty to be paid on each item

Tax (or VAT) this is a national charge that is added to purchased goods (Currently in the UK this is 20%). The rate is determined by the country that you are shipping to so always make sure you check the country’s government website. The tax rate is then calculated using + freight charges +insurance +additional charges + duty charge and then multiplying this by the tax rate.

Be mindful; that your carrier or shipping company will pay often settle these charges in order to avoid delays in delivery. You will be charged this at a later date so it is important to factor this into your overheads.

To find out more about how you can prepare your business for Brexit, sign up for updates from Plc or follow us on LinkedIn.

Gov also has lots of information on how you can prepare for Brexit. Take the survey here.