Important customs Information
When importing or exporting goods you must be aware of the relevant customs regulations and trade rules for each location.
Below are some FAQ that our customers have asked us about Brexit
Due to Brexit a number of changes have occurred when importing or exporting from Great Britain, Northern Ireland, Ireland or the EU in general. These changes have resulted in many companies not understanding the new requirements in regards to customs clearances and the way in which goods can be moved.
1) Why am I paying Duty to HMRC instead of Irish Revenue?
With Brexit, goods can be brought into Northern Ireland and deemed “at risk” of moving down South. Once the goods arrive in Northern Ireland, a full declaration is submitted to HMRC and are then cleared into free circulation, meaning that the goods are able to move legally and freely anywhere on the island of Ireland- or even back into the EU.
The only other option to move freight via Northern Ireland and have the entry submitted to Irish Revenue instead of HMRC is by moving the cargo via a T1/T2 Transit document from Great Britain to ROI. This method however is more time consuming and has increased costs.
For more information on the above please visit the below link provided by Irish Revenue.
2) Why do I have to pay duties for goods that are moving from Great Britain?
Whilst prior to Brexit we traded within the EU, Rules of Origin wasn’t an issue for most businesses however from January 2021 it will be more important and a legal requirement. Customers will have to prove where the goods originate from and have evidence to prove it.
Even though the goods may be moving from a supplier in Great Britain, the goods may have originated from the EU, India, China, America etc. Therefore with Brexit the origin of the goods will determine how much Duty is applicable when importing shipments.
For example- If a customer in Ireland imports goods from Great Britain and the original origin of the goods was the EU then no duty would be applicable on the consignment. However if the origin was a third country like China or India then duty may be applicable. The amount of duty applicable will be displayed on the EU Taric against the commodity code.
Customers can check if their shipment will have duty applicable by using the below link by entering the commodity code and then the origin of their goods.
Customers will need to provide their customs agents with proof of origin for the goods being imported to ensure that the correct Duty is being applied. This can be via a statement on a commercial invoice declaring the origin of each item or by obtaining a Certificate of Origin. For more information visit Get proof of origin for your goods
3) What is a commodity code?
HMRC and Irish Revenue create unique commodity codes for all products and these must be used when completing customs clearances. If you are struggling it is possible to ask HMRC & Irish Revenue for help but this is not a quick process.
Without a commodity code you cannot import or export a shipment.
The below links provide guidance for find product commodity codes.
4) What is a incoterm?
Incoterms describe where the responsibility of the buyer and seller meet. These cover transport costs, insurance and customs.
Check every contract for these as it is essential to know who organises the customs clearance.
For more information visit – https://www.trade.gov/know-your-incoterms
5) What is T1/T2 Transit document?
A T1 /T2 is a transit document which allows for goods which originated outside/within the European Union to move freely within the European Union.
Why do I need a T1?
The main benefit is that no customs duties or taxes are payable as the shipment moves from one country to the next . This is the case until the shipment arrives at its intended final destination. Without a T1 every time a shipment enter a new country a customs declarations would be required meaning multiple VAT/Duty payments.
6) How is VAT captured for shipments that move ex GB to ROI (Via NI)
VAT is still chargeable on indirect movement from GB to ROI (Via NI). The following link provided on HMRC’s website explain the VAT processes for these movements.