With Brexit finally done and dusted, it’s time for the freight delivery industry to take stock and understand what is now required moving forward. It’s been a turbulent few years, but we now have some confidence in knowing what will be required from freight forwarders when moving goods between Europe and the UK.
At Forest Freight, it’s our mission to make shipping simple. So we’ve put together this quick guide to help you navigate some of the remaining uncertainties of Brexit, so you can continue to send goods quickly and efficiently – wherever they’re going!
Explore everything you need to keep in mind about post-Brexit freight deliveries.
Why understanding post-Brexit freight is important
Whilst any regulatory changes can seem daunting and confusing, they are, more often than not, important to understand from a business perspective. With the industry shift presented by Brexit, it’s now more vital than ever that you know where you stand with regards to freight deliveries to and from Europe.
If you don’t get a handle on how these new changes might impact you, and don’t follow new procedures properly, you could be left unable to make deliveries to the continent. We don’t have to explain how potentially damaging that could be for your business. Indeed, the best case scenario is that you could incur more costs when attempting to send and receive goods, which will decrease your profit margins and impact your business operations further!
Register for a new Economic Operator’s Registration and Identification Number (EORI)
In order to continue freight delivery post-Brexit, you will need to get your hands on a few documents that will allow the swift transit of goods across EU borders.
One of these documents is the Economic Operator’s Registration and Identification (EORI) number – and it’s near-essential for accessing EU markets as a business. In essence, this is a unique ID number for your business that enables authorities to track and register customs information upon entry into EU states. It is designed to make the customs process more seamless and straightforward for freight forwarders, without incurring extra delays or costs. Without an EORI number, goods could potentially be held at the border for far longer than usual, resulting in delays for your freight shipments.
If you’ve been operating in the industry for a long time, it’s likely you’ll already have a registered EORI number. However, it’s important to check that it starts with GB as this is a brand-new requirement post-Brexit. This will mark your goods as coming to and from the United Kingdom.
It’s relatively easy to check your EORI number or apply for a new one on the Government’s website. But if you’d like to discuss your requirements or get more information on how new Brexit regulations may impact your business, don’t hesitate to speak to one of our experts!
Understanding the changes to VAT
One of the elements that have been impacted heavily by Brexit is Value Added Tax (VAT) – which is a monetary sum added to all freight deliveries in and out of the UK. If you’re exporting goods from the UK to the EU via a dedicated haulier, your business will have to pay duty and import VAT. This hasn’t changed in a post-Brexit environment.
Equally, if you’re a direct seller or making personal deliveries of pallets to the EU, you will need an EU VAT registration to ensure you’re paying the appropriate levels of tax in the bloc.
If you’re unsure whether you’re eligible for VAT, or you’re not certain you have the appropriate documentation, head over to the gov.co.uk website to get a better understanding of how changes to VAT post-Brexit could impact your business. In many cases, VAT is automatically applied to shipping orders, so you may not have to action anything when sorting shipments, but it is an important element to consider with regards to costs and bookkeeping!
Learn more about commercial invoices
Commercial invoices are a common occurrence for freight hauliers that have been operating outside of the EU for some time. But if the majority of your business has been in the UK and EU pre-Brexit, this might be a new document you need to be aware of.
A commercial invoice has to be included on all orders of goods crossing international borders. Before Brexit, goods traveling between EU member states would not have required one, but now that the UK and EU are separate, your business must provide a commercial invoice on orders. Essentially, this document describes the goods crossing borders and the total value of them – which is vital for determining duties to be paid in each country the goods enter. This has to be provided by the person or the business sending the freight delivery, which will make your business responsible!
Whilst there are a number of new regulations brought in to monitor trade between the UK and EU, ensuring your goods can cross borders should remain fairly simple. A lot of this documentation will be on file for your business already, and if it isn’t, it’s relatively straightforward to acquire. If you have any concerns about moving freight between the UK and Europe in the coming months, be sure to contact our experts to discuss your needs. Alternatively, if you’d like to book freight delivery through a haulier with all the knowledge and documentation, get a quote from Forest Freight today!
