What is Exporting to the EU?
Exporting is defined as sending goods or services to another country for sale. This article covers exporting to the EU from the UK.
With the completion of Brexit, trade from the UK to the EU has experienced some change unless an economic operator in either the EU or Northern Ireland is established.
What is a Third Country?
The UK has now been deemed a third country which refers to any country outside of the EU and as such outside the economic structures, single market and customs union of the EU overall.
What are the Implications of Brexit for Exporting to the EU from the UK?
The implications of Brexit have been rectified under UK law. As a result, the UK’s withdrawal from the EU will affect some businesses including how exports and imports happen. Businesses are affected under new Brexit stipulations if they:
- Sells goods or supplies services to the UK.
- Buys goods or receives services from the UK.
- Moves goods through the UK.
- Uses UK materials and goods to trade under preferential schemes with EU partner countries.
In response to Brexit negotiations, The EU-UK Trade and Cooperation Agreement (TCA) was entered into on 1st May.
The EU-UK trade agreement consists of:
- A Free Trade Agreement includes an agreement on cooperation of economic, social environmental and fisheries issues.
- A close partnership on citizens security.
- Overarching government framework.
Other Areas to Consider
Areas such as foreign policy, external security and defence cooperation are not covered by the agreement. This is a result of the UK not wanting to negotiate this matter.
As such, since January 2021 there is no framework in place between the UK and the EU to develop and coordinate responses to foreign policy challenges faced jointly.
Subsequently, the TCA does not cover decisions relating to financial services, the adequacy of the data protection regime in the UK or to list it as a third country allowed to export food products to the EU.
However, the TCA outlines zero tariffs and zero quotas on all EU and UK goods that comply with rules of origin.
These good and services fall into areas for trade that includes but are not limited to:
- Road transport.
- Law enforcement.
- Intellectual Property.
- Digital Trade.
- Judicial cooperation in criminal matters.
What are the Standard Exporting Procedures to the EU from the UK?
Standard export procedures to the EU follows a path
- Get an EORI number that is issued by the UK. Tt can be issued within ten minutes from the government website if a business does not have one.
- Check if goods need to obtain and export licence or certificate. For example, if a provider is selling food or livestock then arrangements must be made. For most controlled goods as mentioned there will be additional documents and certificates as well as processes that will need to be followed.
- Check VAT guidelines to understand how and why a business should retain evidence of the exported goods. To apply zero percent VAT rates.
- Customs processes are complicated. It is advised that most businesses use a customs intermediary for the process to be completed on their behalf.
- If the business chooses to use a customs intermediary, then this is where the process will end in terms of a standard export of goods and service.
- If the business chooses to continue without a intermediary they will continue with the process themselves.
- There will need to be an online declaration made using the National Export System (NES) training. This will need to be undertaken by the business on how to complete these declarations. Register for a NES and apply CHIEF badge(s) as part of the NES application.
Futher Exporting Considerations
- Prepare to move the goods by completing the export declaration and get a unique reference number that will then be used to get the goods across the border.
- To ensure that the EU importer of the GB goods have done everything required of them to make sure the goods pass through EU customs successfully they must have an EU EORI number from the relevant EU authority. Therefore, having the correct import licences and finally completing their own declaration of import to satisfy their countries laws.
- It is then advised that all records of the exported goods are kept for six years as they maybe need to be used to claim any appropriate relief or refunds.