BREXIT PREPARATION
Brexit is around the corner and we would like to prepare you in case of a no deal Brexit.
If no new trade agreement is concluded before 31 December 2020 and the transition period is not extended, all trade between the United Kingdom (UK) and the EU will be subject to the rules of the World Trade Organization (WTO) per January 1, 2021. The UK thus becomes a separate customs territory, where shipments moving to and from are liable to customs and other duties.
However, this does not apply to Northern Ireland, which will still be part of the EU customs union. The country code for Northern Ireland will be changed from GB to XI. This is important when booking shipments, as the correct country code must be selected.
All over the world, courier companies are changing and upgrading their production to handle dutiable shipments from and to the UK. Unfortunately, this also involves additional costs. Per. January 1, 2021 we therefore have to introduce a Brexit surcharge on all shipments to and from the UK of 40 DKK per. shipment to cover these costs. Your freight rates will remain unchanged.
There are several steps we recommend you take now to prepare your business for Brexit:
1. Sign up for an EORI number
When exporting goods to countries outside the EU, a company must be registered as an exporter.
The company will be assigned an EORI-number, which is a special EU number for exporting companies.
Such a number is needed to move goods from and to the UK from January 1, 2021.
Please note that the registration process may take time, so make sure to register as soon as possible.
You can read more about how to register the company as an exporter in:
DK: https://skat.dk/skat.aspx?oid=2248795
SE: https://www.tullverket.se/eng/business/eorieconomicoperatorregistrationandidentification/applicationforeorinumber
UK: https://www.gov.uk/eori
2. VAT
From 1 January, 2021:
If you are the importer, your company is required to pay UK taxes and import VAT.
If you deliver directly to your customers (eg. by Incoterm DDP, Delivered Duty Paid), you may need to consider getting VAT registered in the UK.
If you sell goods valued at £ 135 or less, you will be responsible for charging and paying UK VAT for these shipments.
The VAT amount must be paid through your UK VAT registration.
If you sell goods to the UK valued at over £ 135, the importer is responsible for paying the UK VAT.
3. Appoint a registered importer if the recipient is not the importer himself.
The importer is responsible for your customs declarations. If you are exporting to the UK, the importer must be a UK entity, with a UK EORI number.
4. Commercial invoice
When you send shipments to a dutiable country, an invoice for customs clearance must be included. By 31 December 2020, this will apply to all shipments between the UK and the EU also.
There is still much to be clarified about Brexit and we will keep you informed as soon as we learn more. We will regularly post updates on our bookingsite as we get closer to Brexit.
Please contact our service center on +45 70 10 45 00 or info@linklog.com if you have any questions.
