All goods coming from outside of the EU must be formally declared with any due charges paid in order to clear them. Declarations are legal documents which contain all of the information about the product and its arrival must be audit compliant and are electronically uploaded to Revenue for clearance purposes.
With this in mind, planning and preparation are vital.
Here are the basic steps to help reduce the risk of unexpected costs and delays.
The Prep:
1. Register your EORI No. – This will be your VAT no. but must be registered as such.
2. Set up the postponed VAT facility – Rather than pay VAT on arrival it can be accounted for at your next VAT returns not restricting cashflow.
3. HS/Tariff/Commodity/Taric code – On every product, this (along with the origin) establishes applicable customs charges, conditions or restrictions.
4. Origin– Where the product was wholly made. A preferential trade agreement between the EU and the exporting country could reduce or eliminate customs duties.
5. Certificates/licences – Are there any required to import your products? SPS products will have extra requirements and will also require prenotification for inspection on arrival.
6. Duties – If any, must be paid on arrival and can only be paid through a ROS TAN account.
7. VAT – Does this particular product incur VAT are you or it exempt?
8. Anti dumping duties– Do these apply to your product?
9. Procedure – Is this process permanent or temporary (returns/repairs/exhibitions etc.)? This will affect duties and VAT.
10. Accompanying documentation – To be uploaded with the declaration.
Agree and Understand the Incoterms:
Clarify the Incoterms with your supplier – Who is responsible for the shipping and insurance along with any duties and taxes? Remember there may also be extra handling and demurrage charges on arrival which often lie outside the Incoterms agreed.
Gathering the Documentation:
Ensure you have all necessary documents pertaining to your particular product, such as:
Invoice
Packing list
Statement of Origin (if claiming preferential treatment)
Certificate of Origin
Heath Certification
Licences
Proof of Payment
Bill of Lading
Movement Certificate
Arrival Notice
Customs Declaration
Plan the Logistics:
The Shipping details will be required for the declaration. If you are responsible for shipping you need to find the most suitable freight forwarder and coordinate shipping with them. It is vital to ensure proper insurance is in place for your goods. Also, you must understand the shipper’s costs, how they will declare the goods, how they will handle any customs charges and VAT (pay upfront or postpone), how they expect you to pay for the charges and what documentation they will furnish you with once the goods have been cleared and delivered to you.
Duties and VAT obligations:
Duties and VAT are two different charges. The exporter should not charge VAT but it should be paid (unless exempt) by the importer at the rate applicable in the country of import. VAT can be postponed but duties must always be paid on arrival/clearance.
How Duties and VAT are charged: Cost of goods + any transport costs + % of duties + % of VAT.
Payment and Foreign Exchange:
It’s a good idea to have all the required documentation with details prior to final payment. Arrange appropriate currency exchange and payment methods with the supplier. Be aware of any financial transaction regulations.
Choose a Customs Agent (Optional but advisable):
Your area of expertise may lie elsewhere so consider hiring a competent Customs Agent to keep you audit compliant, to help you navigate the process, and to have efficient clearance with no nasty surprises!
Remember, no matter the volume, shape, or scope of your consignment – With us, Size Really Doesn’t Matter!
