5 steps to get Brexit ready
Last updated 23 October 2020
Step 1 – Identify and map EU sourced goods
- Understand the goods being sourced and imported/export to/from the UK
- Understand the Incoterms (a series of pre-defined commercial terms published by the International Chamber of Commerce relating to international commercial law) the goods are sold on and the associated responsibilities
- Are the goods remaining in the UK after importation?
- Identify the status of goods (free circulation/suspensive regime)
- For goods exported from the UK, is there a need for an overseas VAT registration and EU EORI?
- Do you need an EU establishment?
Step 2 – Allocate Commodity code and Origin status per product
- Classify the goods to 10 digits for import purposes
- Understand the origin of the goods to identify any opportunities under a UK Free Trade Agreement
- Identify duty rates and duty due at import to the UK to understand landed costs
- Consider any Anti-dumping Duty EU and/or UK, if goods are not EU origin for sourcing purposes
Step 3 – Develop an import/export instruction template for clearance purposes
Prepare an import/export instruction sheet for presenting to the customs clearance agent to ensure the goods are imported/exported correctly. Information provided to include:
- Commodity code
- CIF value
- Origin status of the goods and applicable documentary evidence
- Customs procedure codes – subject to import “type”
- Where copy import/export documentation should be emailed for record keeping
- Ensure compliance with VAT legal requirements on documentation, e.g. description of goods
- Develop policy for retention of export evidence for HMRC VAT and duty audits
Step 4 – Capture all import/export information into a shipment log
Develop a shipment log to capture key import/export information to allow the following:
- Identification of all import shipments per import entry number and date
- Noting “checked” status after compliance checks are completed
- Check any evidence required under any free trade agreement is held
- To check all HMRC supporting documents held for VAT/duty audit purposes
- Ease of presentation for future HMRC audits
Step 5 – Record keeping and compliance checks
- Ensure copies of all import/export entries are obtained from the customs clearance agent after import/export
- Double-check all documentation is held using the shipment log
- Check the import/export entry against the instruction template to ensure the import/export has been completed correctly. Note all compliance checks on Shipment Log.
- Advise any errors to the original customs clearance agent for amendment
- Store all import/export documentation electronically or hard copy filed per month per entry number for ease of location for future HMRC audit
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