Coordination with the supplier (if they are organising transportation) or your freight agent/shipper is essential for a smooth import (if you are arranging the shipment).

Here are some outlined of the fundamentals to consider in order to ensure that EU goods arrive in the UK without delay or unforeseen shocks.

To begin, there are a few fundamental ideas to understand.

Certificate/ statement of origin

A certificate of origin/statement of origin is required for EU shipments entering the UK. The commodities were made or sourced in the EU, according to the statement.

If the items can be confirmed to be of EU origin, they will not be subject to import duty and will enter the UK tax-free. If the shipping paperwork is incorrect, the provenance of the shipment cannot be established, and third-country duty rates will be applied.

If items are imported from India into an Italian warehouse and subsequently shipped to business customers in the United Kingdom, the goods' origin is still India. Simply though they ship from Italy, the origin remains unchanged.

REX Number

HMRC/EU applied a modified application of laws at the border during a 12-month period after Brexit took effect. This time was set aside to help businesses to adjust to the impending Brexit.

However, beginning January 1, 2022, the regulations will be aggressively enforced. This means that goods from the EU that are imported into the UK must have a statement of origin (certificate of origin). Import duty will be imposed if the origin of the goods cannot be determined.

The exporter can make a statement of origin if the value of the export is less than €6,000. (self-certification). If the value of the export reaches that threshold, the EU exporter must obtain a REX number (registered exporter) by registering with an EU member state. The REX then takes action.

Postponed import VAT accounting

This has already been covered, and most businesses are aware of it and use it correctly. The freight agent/shipper must have the importer's GB EORI number in order to use Postponed import VAT accounting (PIVA). This permits the importer to account for VAT on their VAT returns by making the proper customs entries.

UK to EU

The REX number is a scheme that is only available in the European Union. A UK company shipping products to an EU company must produce their GB EORI number as well as a certificate of origin to confirm the items are from the UK. As a result, the items would enter the EU duty-free, as required by the EU-UK Trade Agreement.

Some EU member states, such as Ireland, have their own version of PIVA, so check with your EU business customer to see if there are any additional instructions. They must initiate the postponement from their end. The UK company can then give the shipping agent the correct instructions to prevent any issues when the goods enter the EU.