Trading outside of the EU it can seem daunting, however with careful planning and the right resources, it is all very possible and can open up significant opportunities for you and your business.
The importer is the liable party so it is vital to have a solid grasp of the fundamental concepts to determine the best strategy for your business.
The following will help you to navigate the area smoothly.
1. Get an Economic Operators Registration Number
Before you start you’ll need an EORI number. This can be done through your accountant or on Revenue Online Services.
2. Consider Postponed VAT Accounting
Once you are VAT registered you can apply for the Postponed VAT facility to defer paying import VAT on goods on arrival and instead you will account for and recover the VAT on your next VAT return. It is flagged in the import declaration and takes pressure off cash flow.
3. Know Your Products
Understanding your products is essential to correctly navigate the process and so that you are not hit with any unaccounted-for duties or restrictions.
Determine the Commodity Code: Every product on the planet has a code which classifies that product and determines any charges, regulations and restrictions.
Identify the Origin of Goods: Where the goods are wholly made and not where they are coming from. The country of origin can impact whether the goods qualify for preferential treatment under trade agreements and the duties payable.
Understanding Incoterms: Established by the International Chamber of Commerce and internationally recognised, these confirm responsibility and risk transference of shipping, insurance, and customs clearance. It is crucial that the buyer and seller formally agree these terms.
4. Declarations and Accompanying Documentation
Import and export declarations are submitted to the local customs authorities detailing the goods. They must be accurate and compliant and it’s worth remembering that a Green Routing does not always mean compliance.
The following accompanying documentation will aid smooth operations:
Full Commercial Invoice: Should include the buyer and seller’s details, a clear description of the goods, their value, and include Incoterms, commodity code, weight and origin.
Certificate/Statement of Origin: Especially required when the goods are eligible for preferential treatment. This document certifies where the goods were produced and can influence the duties applied.
Proof of Payment: A bank or credit card statement showing payment for the goods, with personal details redacted for privacy.
Health Certificate: Completed by the authorities of the exporting country and required for agricultural products and foodstuffs. It certifies that the goods meet the health standards of the importing country.
Common Health Entry Document: Completed in the country of import for Dept. and required for agricultural products and foodstuffs. It ensures that the goods meet health standards.
V5/Log Book: For registration of vehicle.
Movement Certificate: Enables importers in certain countries to import goods at a reduced or nil rate of import duty under trade agreements between partner countries.
Bill of Lading or CMR: A contract between the owner of the goods and the carrier and acts as a receipt for the shipment.
5. Complete In-House or Outsource
Decide whether your business has the resources and competency to handle customs declarations and compliance in-house or if it’s more efficient to outsource to a competent customs agent. Outsourcing can save time and reduce the risk of errors.
Remember, no matter the volume, shape, or scope of your consignment – With us, Size Really Doesn’t Matter!
