Post- Brexit 2022 - best practices on customs and shipping
by Irina Ciutaco
June 17, 2022
Although it’s been already more than one year since the United Kingdom left The European Union, the constant changes brought by Brexit added extra questions for most online retailers. Doubts like Will my business be affected or How will I meet the expectations of my customers were on the lips of many British retailers.
In today's blog, we will speak in more detail about all these uncertainties and we will focus on providing you with the best practices., for customs.
According to Statista, 67 % of British think that Brexit made their cost of living higher, while 5% said it had made it lower. Moreover, high inflation caused an economic crisis in the United Kingdom, with 87% of people, reporting an increase in their living costs as of March 2022. Nevertheless, in an interview for Cross Border Magazine, Thomas Hagemann, Founder and Co-CEO of Seven Senders declared that “British eCommerce is already a few years ahead of the rest of Europe”, which “means that customer expectations of the delivery experience are higher as well”.
Let's summarize what changed in the UK since 1st January 2022: An entire digital border control system was released, which used GMR (Goods Movement Record). Afterwards, the goods have been declared in the GVMS( Goods Vehicle Movement Service) portal. Similarly, SPS (Sanitary and Phytosanitary) goods have to be notified before in the British portal IPAFFS. Nevertheless, any physical checks will still be present at the destination.
Moreover, since April 2022, British companies can facilitate the movement of goods in transit.
Furthermore, the next major milestone in the restoration of the UK border will be 1st July 2022. But what exactly means this?You would need a safety-security ENS declaration in advance by the carrier.Some SPS goods will require the issue of an Export Health Certificate, which will be subject to a physical check “at the UK border”. These checks will be carried out at sites back from the border.
The most important milestone of 1 July 2022 will be the subject of further communication from the GB administration. Among other things, we need to understand how drivers should find out about possible checks and how to get there.
What to expect next?
Location and timing of the checks,
Means of communication,
Risks and responsibilities in case of non-compliance with an enforcement
Moreover, the establishment of the latest control should be completed by the early months of 2023, which will consist of an end to the British preparation phase. At the same time, there are more tasks to be fulfilled by the European side, which include securing the validation of ECs on leaving the EU. When correctly validated at the border crossing, these ECs serve as fiscal proof of export.
Furthermore, we will focus on the customs best practices between the EU and UK.
Establish the departure and arrival locations and your transit locations
Identify the customs regimes and brokers in the departure and arrival countries
Verify the transport modes and types of transport
Secure your logistic team can process customs declarations
Check if you have all the essential IT tools and export licenses if required
Make sure that the commercial teams of your contracts fulfil legal requirements.
How to verify your fees to benefit from TCA ( Trade and Cooperation Agreement)
Compulsory for every customs operation,
In case you are purchasing EU or GB origin goods, ensure that your supplies can provide you with proof of origin in agreement with the TCA.
Share information across your ecosystem
The border import process should be anticipated while the GB prolonged import declaration is mandatory before crossing French bordersExport declarations should be provided at the border before crossing
Depending on Incoterms, you should provide the right data and documents to your supplier, customs agent, carrier or client
Make sure you have the right documents, as your products won´t be able to cross otherwise.
Nevertheless, the Brexit topic continues to be a very searched topic in 2022. We will continue to provide you with the latest cross-border and eCommerce news in our Kooomo blog.
Posted by: Irina Ciutaco