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(P) Importers must charge their EU customers VAT and transmit it to all EU-27 tax authorities - no matter how small the parcel or how invaluable. Most countries place a consumption tax on the product you sell with a profit, so when you add value to the product. This Value Added Tax follows the supply chain, from production to the final point of sale. Countries like the U.S. prefer to call it a goods and services tax (GST). The average buyer sees it as sales tax, as we see this levied on every product we buy, either included in the final price (but listed separately on the receipt/invoice) or charges upon check out (like in the U.S.) The rate varies from country to country and even across the EU, there is no harmonized rate. For a list of current rates in the European Union, please see here: https://ec.europa.eu/taxation_customs/business/vat/telecommunications-broadcasting-electronic-services/vat-rates_en Apart from the actual rate, VAT rates can also differ depending on the type of good and service. For example, in the UK, the standard rate is 20%, charged on most goods and services. There is a reduced rate of 5% for some goods and services, e.g. children’s car seats and home energy. Finally, a zero rate is placed on most foods. https://www.gov.uk/vat-rates Global E-commerce boom The European Union (EU) will introduce new VAT rules for e-commerce in July 2021. E-commerce is booming, even more so during the COVID-19 pandemic. The mass move to online buying has changed freight and logistic pattern. Rather than large containers, millions of small parcels with low values criss-cross the globe 365/24. Already back in 2017, these were worth more than 1/2 a trillion Euros. Almost 20% of that, around 100 billion Euros came from global sales. VAT change for every parcel Currently, the EU is missing out on collecting VAT from all those millions of low-value parcel imports into the EU thanks to an exemption, Low-value means goods under €22. Today, EU consumers are happy because they do not get a VAT inflated bill. EU and non-EU sellers selling goods (online or not) can sell on to their customers without charging them import VAT. This ends 1 July 2021 and all imports will be subject to EU VAT. Import VAT is then applicable and may need to be paid along with customs duty if the worth of the goods is over. Practically, this means that sellers (and/or marketplace operators like Amazon) will be required to account for VAT on their sales to customers. But wait - I pay the import VAT at the point of import, not sale! Import VAT is the same as VAT, except it is paid on goods and services purchased from another country outside the European Union (EU). In the case of goods imported into the EU, import VAT is usually applicable at the point of import and may need to be paid along with customs duty. But under new rules, no import VAT is no longer due at the point of import from 1 July 2021. EU and non-EU sellers have to charge VAT at the point of sale (so before the import of the goods for consignments of €150 or below from 1 July 2021. Red Tape Alert! Do I have to collect the VAT? Businesses are fearing a massive amount of extra red tape in having to collect and account for additional VAT. They have to work out what VAT rate to charge based on their customer’s EU country of residence and adapt IT systems to take the VAT at the point-of-sale on the website (Sellers can use the delivery address of the customer to determine the country's VAT rate). So the red tape is a concern indeed, however, at least in some cases, they may offload the VAT collection to postal operators, express carriers, and customs agents. Simplification: Import One-Stop-Shop - IOSS Sellers can report the EU-wide VAT charged the EU's "Import One-Stop-Shop". It is specifically designed for all sales of imports below the €150 import value. UK traders and others, which had to navigate various VAT registrations across the EU Member States can only register for one IOSS - then valid across the EU. Their IOSS identification number must then go on the invoice and packages after 1 July 2021. In this way, customs know that import VAT is correctly declared. IOSS Returns IOSS will require quarterly filing to just one tax authority in one member state. They will then share the money due with all other Member States. Sellers can pay their VAT wherever they registered their IOSS accounts. How to prepare for the changes Businesses wishing to supply low-value goods and services to the EU need to consider how they will charge their customer the correct VAT rate after 1 July 2021, depending on the Member State and the type of product, as discussed above. If sold using online platforms, then IT changes may need to occur to allow for the correct VAT to be charged. Finally, businesses should consider registering for an IOSS account and get training on how to lodge the correct VAT returns to the authorities. How we help We help businesses to register for VAT in the EU and advise on how to prepare for the 1 July 2021 changes. We work with VAT representatives in the EU and can support any non-EU business with VAT requirements in the EU. Resources The new rules will come into action on 1 July 2021 but preparation can start right here, right now. Explanatory Notes and Guidance documents Member States OSS contact details Explanatory Notes on VAT e-commerce rules Guide to the VAT One-Stop Shop (applicable from 1 July 2021) Guidance for Member States and Trade concerning the importation and exportation of low-value consignments Explanatory Notes on Telecommunications, Broadcasting and Electronic (TBE) services VAT rates Taxes in Europe database Campaign tools https://ec.europa.eu/taxation_customs/business/vat/resources_en About Customs Manager Ltd. Working with us means having a Customs Advisor, Global Trade Expert and Export Controls Consultant, on speed-dial. If you are looking for a customs consultant UK and EU, let us help you trade effectively, efficiently and, of course, compliantly, wherever you want to go in the world. Need to stay up-to-date with changing customs and global trade rules? We monitor legislation so our clients don't have to. Learn about all changes in our fresh expert blog, join exclusive briefings and ask any questions 24/7 through to the VIP hotline. Or sign up to our no-charge, insightful newsletter. Entrust us with your training needs and help us to upskill you and your teams in English, German, French and Spanish. We offer pubic and private live, in-house and on-demand (study from anywhere and anytime) courses. To complete our support for globally trading businesses, we are also a UK Customs Broker. We act as a customs clearance agent on behalf of many EU and UK businesses, assisting with customs documentation and all other formalities to ensure the customs clearance of our goods. Whether you’re seeking a long-term partner to look after your customs clearance or require support for a one-off shipment, please don’t hesitate to get in touch to discuss your requirements. 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(S) Charging the right VAT when dealing with the EU is often a sticking point for businesses from outside the EU The EU rules in the field of VAT differ depending on it, you are in the EU or not, as taxable transactions in goods are treated differently. In the club The EU rules for cross-border supplies and movements between the Member States concerned the intra-EU supplies and acquisitions of goods; distance sales regime for goods to and from the EU Member States. Outside the club Instead, supplies and movements of goods between the EU and third countries are subject to the VAT rules on imports and exports. This means that goods that are brought into the VAT territory of the EU from the a third country (or are to be taken out of that territory for dispatch or transport to the third country), will be subject to customs supervision and may be subject to customs controls in accordance with the EU’s Union Customs Code. Introduction to EU Import VAT rules for exporting businesses For a "foreign" product, VAT will now be due at the importation in the EU, at the rate that applies to the supplies of the same goods within the Member State. Traditionally, VAT will be payable to customs authorities at the time of importation, unless the Member State of importation allows entering import VAT in the periodical VAT return of the taxable person. The taxable import VAT amount is based on the value for customs purposes, but increased by taxes, duties, levies and other charges due outside the Member State of importation, and those due by reason of importation, excluding the VAT to be levied, and incidental expenses, such as commission, packing, transport and insurance costs, incurred up to the first place of destination within the territory of the Member State of importation as well as those resulting from transport to another place of destination within the EU, if that other place is known when the chargeable event occurs. No taxable supply from outside the EU From a third country's perspective, goods will be exempt from VAT if they are dispatched or transported to a destination outside that country. However, a business as a supplier of exported goods must be able to prove that the goods have left their country. Usually, it is the certification of exit given to the exporter by the customs office of export. Download the EU VAT Brexit Notice

(P) Download the Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020 and get a guide on how to read them The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020 allow us to determine the "place of origin" of so-called "chargeable goods". What is meant by that, and where are the actual rules of origin? What are the rules of Origin? Rules of Origin here refers to the document entitled “Rules of Origin: Special Rules for Determining Non-Preferential Origin, which comprises the following as are so named in that document (a)Part One (goods wholly obtained in a single country or territory); (b)Part Two (operations not constituting an important stage of manufacture); (c)Part Three (accessories, spare parts or tools); and (d)Part Four (product specific rules); “Second General Rule” means the rule of origin of goods provided by section 17(3) of the Act. PART 2 Provision in relation to the Second General Rule (If goods are obtained in two or more countries or territories, the goods are to be regarded as originating from the last country or territory in which substantial processing of them has taken place that is economically justified) Processing that is not economically justified Materials that do not form part of the final composition of goods Cases and containers Origin determined by reference to the value of materials PART 3 Provision contained within the Rules of Origin Goods wholly obtained in a country or territory: specified cases Operations not constituting an important stage of manufacture Accessories, spare parts and tools Application of the product-specific rules Regulation 2: Definitions Regulation 2 contains definitions used in the Regulations, including “Rules of Origin”. This means the document entitled “Rules of Origin: Special Rules for Determining Non-Preferential Origin, The Rules of Origin contain four Parts, the contents of which are given effect by provisions of the Regulations. Regulation 2 also defines the rule of origin in section 17(3) of the Act as the “Second General Rule”: "If goods are obtained in two or more countries or territories, the goods are to be regarded as originating from the last country or territory in which substantial processing of them has taken place that is economically justified". Regulation 3: Preferential arrangements for the rate of import duty By regulation 3, the Regulations are made for the purposes of Part 1, except sections 9 and 10, of the Act. Section 9 provides for the Treasury to make regulations to give effect to preferential arrangements for the rate of import duty made with a government of a country or territory outside the United Kingdom. Section 10 provides for the Secretary of State to make regulations to give effect to trade preference schemes (as defined in that section) made with eligible developing countries (see Schedule 3 to the Act). Regulation 4-6 Regulation 4 provides for circumstances where the processing of goods is not economically justified, such that a place of origin otherwise applicable is in consequence disregarded. Regulation 5 Provides that regard must not be had to the place of origin of materials used in the manufacture of goods but which do not form part of their final composition when determining if goods are obtained in two or more countries or territories, such that the Second General Rule applies. Regulation 6 Provides for instances where cases or containers of goods are to be disregarded for the purposes of determining the place of origin of the goods under the Second General Rule. Regulation 7 Provides that where a country or territory of origin under the Second General Rule is disregarded because processing there is not economically justified, the place of origin is determined by reference to the value of materials in the goods. Regulation 8 provides that goods falling within a description of goods given in Part One of the Rules of Origin have a place of origin according to the rule applicable to the goods set out in that Part. Regulation 9 provides that operations set out in Part Two of the Rules of Origin which may be applied to goods do not constitute an important stage of manufacture. Regulation 10 provides that accessories, spare parts or tools falling within a description given in Part Three of the Rules of Origin have a place of origin according to the applicable rule set out in that Part. Regulation 11 provides for circumstances where the product-specific rules in Part Four of the Rules of Origin apply to determine the place of origin of goods. Download the law https://www.legislation.gov.uk/uksi/2020/1433/contents/made

(FREE) We asked you to explain what 35 random global trade terms mean. How many did you get right? Here is our solution.... PART 2 of 2: The Quiz SOLUTION We asked you to explain 35 top terms you will hear in importing and exporting all the time. How many did you get right? To recall the results key: 35-30 correct answers = Customs Geek. We want to hire you or at least meet you. Get in touch to claim a free coffee :-) 29-20 correct answers = Customs Geek in training. Little brush up cannot help. 19-10 correct answers = Well, this is going to get tough for you. Get in touch, we need to talk. 9 - 0 correct answers = We think you are looking for CustomERS, not Customs. You might be at the wrong place. Get in touch, we can help. These were the terms we wanted you to define: Air waybill Bill of lading Certificate of Origin (COO) Commercial invoice Consignment Consular invoice Customs declaration Customs invoice Export licence Packing list Freight forwarder Incoterms Inspection certificate Insurance certificate Pro forma invoice Tariff Tariff Code Terms of Sale Origin/Originate TCA preference Preference Union goods Preferential origin Non-preferential origin Statement on origin Importer’s knowledge Free circulation Transit Special Procedures UK Global Tariff Returned Goods Relief Product-specific rules Goods subject to any form of operation Wholly obtained Wholly produced Certificate of conformity Here are our answers: 1. Air waybill An air waybill is a receipt issued by an international airline for goods, and evidence of the contract of carriage. It obliges the carrier to carry the goods to the airport of destination, according to specified conditions. It is a document of title, which proves ownership, and is non-negotiable. 2. Bill of lading A bill of lading is a contract between the owner of the goods and the carrier. It is a receipt, contains the terms of the carriage contract, and importantly, is a document of title, which proves ownership of the goods. For ships, there are two types: A straight bill of lading. This is not negotiable. It indicates that the carrier has accepted the goods listed, and obliges the carrier to carry the goods to the port of destination, according to specific conditions. A ‘shipper’s orders’ bill of lading. This is negotiable. It can be bought, sold or traded whilst the goods are in transit. 3. Certificate of Origin (COO) A certificate of origin is a signed statement guaranteeing the origin of the export item. Certificates of origin are usually validated by a chamber of commerce in the UK. 4. Commercial invoice A commercial invoice provides the information needed to clear your goods through customs in the destination country. It is prepared by the exporter or freight forwarder and required by the buyer to arrange for payment to the exporter. It should provide a description of goods, the address of the shipper and seller, and the delivery and payment terms. In most cases, the commercial invoice is used to assess customs duties and taxes. 5. Consignment A consignment is an arrangement where an exporter delivers goods to a distributor, who agrees to only pay the exporter once they have sold it. The exporter retains ownership of the goods until they are sold, but also carries all the financial burden and risk. 6. Consular invoice An invoice covering a shipment of goods certified by the embassy or consulate of the country for which the merchandise is destined. A consular invoice describes the shipment of goods and shows information such as the consignor, consignee, and value of the shipment. It is used by the country’s customs officials to verify the value, quantity, and nature of the shipment. 7. Customs declaration A customs declaration needs to be made in a country for any goods that are being exported out of the country or imported into it. 8. Customs invoice A customs invoice is a document used to clear goods through customs in the country you are exporting to. It provides evidence for the value of the goods. In some countries, it might be sufficient to use the commercial invoice for this. 9. Export licence An export licence is a government document that authorises the export of restricted goods. 10. Packing list A packing list is a document that indicates the type of package being used to transport goods for export, such as a box, crate, drum or carton. It also itemises the goods for export in each package. An export packing list is considerably more detailed than a standard domestic packing list. For example, it shows individual weights and measurements for each package. 11. Freight forwarder A freight forwarder is a third party agent that you can hire to move your goods from the country to the country you are exporting to. Most companies choose to use a freight forwarder to move their goods. A freight forwarder can take on full responsibility for the documentation required to clear domestic and foreign customs and the movement of goods between these points. The split of responsibility between you and the freight forwarder will depend on the type of incoterms you choose. Read our guidance on moving goods and using freight forwarders 12. Incoterms Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contracts. They are published by the International Chamber of Commerce (ICC) and are widely used in commercial transactions. A freight forwarder can also advise you on selecting the most appropriate Incoterms for your business, defining delivery responsibilities for you and your overseas buyer. You may decide on a company policy of the Incoterm you will use in all but exceptional circumstances. This makes your pricing and sales terms clear. However, an overseas buyer may insist on which of you organizes the freight and that will determine the Incoterm you eventually use. 13. Inspection certificate A pre-shipment inspection (PSI), is required in certain countries. The certificate issued guarantees the specifications of the goods being shipped. The inspection is performed by a third party such as Intertec, SGS, Cotecna, and Bureau Veritas. The required inspection agency is contracted by the country of destination. 14. Insurance certificate An insurance certificate is a document prepared by the exporter or freight forwarder to provide evidence that insurance against loss or damage has been obtained for the goods. 15. Pro forma invoice A pro forma invoice can act as a quotation and is prepared by the exporter before shipping the goods. It informs the buyer of the goods to be sent, their value, and other key specifications. Sometimes exporters say they are being paid by ‘Proforma’. They mean payment in advance with their buyer using this document as a notification of the full amount to be paid 16. Tariff Tax or duty imposed on a product when it is imported into a country. When an exporter knows the tariff code for their product they can look up the import duty. This duty would usually be paid by the buyer/importer unless the exporter is selling on incoterms such as DDP where they include the duty in their selling price. 17. Tariff code A tariff, or commodity code, is a unique number that’s assigned to every product type. The same code is used in all countries of the world so it's relatively easy to find out the import duty for your product. 18. Terms of Sale Terms that define the obligations, risks, and costs of the buyer and seller involving the delivery of goods that comprise the export transaction. These terms are commonly known as Incoterms. 19. Origin/Originate Rules of origin determine where your goods originate from. This means that the origin is the economic nationality of goods being imported and exported (where they have been produced or manufactured). It is not just where they have been shipped or bought from. 20. TCA preference A zero rate of duty is provided under the UK-EU Trade and Co-Operation Agreement (TCA). 21. Preference A reduced or zero rate of duty is provided under an agreement that a country/region has entered into with another country. 22. Union goods Union goods mean: a) Goods wholly obtained in the EU and not incorporating goods imported from outside the EU b) Goods imported into the EU and released into free circulation in the EU c) Goods obtained or produced in the EU from goods in categories a) and b) 23. Preferential origin Applies to goods that are being traded between the Parties to a preference agreement and which meet the rules of origin and origin procedures within that agreement. Non-preferential origin These are rules that apply for purposes other than preferential duty, for example, if trade embargoes or Anti-Dumping Duties apply or for compiling statistics. 24. Statement on origin This is an origin declaration (also known as an ‘invoice declaration’) that is made by using a commercial document that has enough detail to identify the origin of the goods. This can be an invoice, packing list or delivery note. 25. Importer’s knowledge This allows the importer to claim preferential tariff treatment merely based on their own knowledge about the originating status of imported products. 26. Free circulation This applies to goods that are duty paid and cleared by Customs and which can now be sold, or used within the customs territory. 27. Transit The Common Transit Convention is used to ease the movement of goods between or through any common transit countries. The UK is a member of the Common Transit Convention. 28. Special Procedures Customs special procedures allow you to store, temporarily use, process or repair your goods and get partial or full relief from import duty, or in some cases suspension of duty. 29. UK Global Tariff The UK Global Tariff (UKGT) applies to all goods imported into the UK unless the country you’re importing from has a trade agreement with the UK or an exception applies, such as a relief or tariff suspension or the goods come from developing countries covered by the Generalised Scheme of Preferences. 30. Returned Goods Relief This is a relief that can be applied to goods which are being re-imported into the UK that have previously been exported from the UK. You may also be able to claim relief on goods that you re-export to the EU that have previously been exported from the EU, but you will need to check with the relevant EU customs authority. 31 Product-specific rules For every product traded under a free trade agreement, there is a corresponding product-specific rule (PSR) that must be met to demonstrate the product originates in the free trade area and qualifies for preferential tariff treatment. 32. Goods subject to any form of operation Goods that are not substantially processed or transformed but undergo some form of minimal processing. 33. Wholly obtained Your goods are normally classed as ‘wholly obtained’ if they’re natural products, or products manufactured entirely from them that completely originate from the country or territory covered in preference agreements. 34. Wholly produced Wholly produced goods are those produced or manufactured exclusively from wholly obtained inputs. 35. Certificate of conformity A certificate of conformity is a signed statement from a manufacturer guaranteeing that a product meets certain technical standards. How did you do? Let us know by posting your results in the comments below!

(S) Many exporters or importers forget that the direct transport or non-manipulation rule can disqualify your product counting as originating. Find out how it works Preferential arrangements contain rules concerning the transportation of preferential goods from one party's territory to another. The purpose of direct transport is to ensure that the goods arriving in the country of import are the same as those which left the country of export. You need to verify that your product has been sent from your country to the recipient/partner country without being altered or transformed in another country. If for any reason the goods pass through or stop-over in, the territory of a third country provided that they stay under the customs supervision, the conditions of direct transport are considered to have been fulfilled. Upon request, your importer must be able to prove to customs authorities that the goods bought to you and originating in your country has not been altered elsewhere before arriving in the country of import If your product “transit” in another country, it must not be altered or separated, and it has to be under the vigilance of customs authorities. Proof of compliance with the direct transport rule may be given by a single transport document covering the passage of the goods through the country of transit or, for example, a "non-manipulation certificate" issued by the authorities of that country. Case Study: The UK FTAs and the Direct Transport Rule in Practice The majority of the agreements signed by UK provide this. For the importer to benefit from the tariff preference (reduction/removal of customs duties), the transport of goods must be direct between the partner countries. However, a logistics stopover in a third country to the agreement or transit through another country between the UK and the partner country is not likely to interfere with this rule. The transport or transit documents must be able to certify that the goods have remained under the control of the main carrier or customs. for example, this may be case for goods between the UK and Tunisia, whose trucks will necessarily transit through EU territory under cover of a T1 transit document. This should not interfere with the benefit of the tariff preference applicable to products imported into the UK or Tunisia under this agreement. What happens if the goods have been unloaded to be stored for a time in the EU? Concrete example : A product manufactured in UK obtains UK preferential origin according to the rule of the UK/Switzerland agreement. This product is not exported directly from UK to Switzerland, but is previously imported and stored in France. The French company exports some of these products to Switzerland (as is, without transformation). Question: can the Swiss customer benefit from the tariff preference provided for in the UK/Switzerland agreement, knowing that the condition of direct transport has not been respected? Answer: Possibly… under conditions. The French demonstrates that these goods have not been transformed by proving that they remained under customs control during the storage period: the Swiss customs accept as proof the T1 transit declaration which will accompany these goods on leaving the warehouse under customs or temporary storage facility for example, and… On presentation, to the Swiss customer, of the proof of preferential UK origin as provided for in the agreement. The practical terms are to be defined according to the operation and the agreement (declaration of origin on a commercial document from the UK supplier, or, for certain agreements, the EUR.1 movement certificate issued in the UK). The free trade agreements signed by UK accepts for some the splitting of shipments in the country of storage (a truck imported into the EU and re-exported to Switzerland in the form of split shipments). It also works in the sense: Swiss products are stored in the EU before returning to the UK. Training

(S) So, you'd like to export or import a set that consists of multiple items? Which Commodity code do you use? Customs Classification for sets put up for retail sale can be tricky. You wonder if you should classify each individual part of the set or classify the set as a whole. GIR's guide the way Formally, we would apply the General Rules for the Interpretation (GIRs) of the Harmonized System, as we would do every time we classify a product. GIR 1 First up, I would, therefore, verify if your set is specifically mentioned by name across the customs tariff you look at, If you see your set under the particular HS provisions describing your set, check the relevant chapter and section notes, and the relevant Explanatory Notes (ENs) to make sure nothing is excluded. For example, there are electric generating sets of heading 8502 or sets of kitchenware of subheadings 8215.10 and 8215.20. GIR 3 Essential Character If this is not your set, you may proceed to Rule 3 of the General Rules for the Interpretation (GIRs) of the Harmonized System. It should clarify. Here we read that sets are to be classified according to the component which gives the set its essential character. But for this to apply, we first need to determine if the product is a set at all according to customs authorities. So, answer these questions: Does my set consist of at least two different articles which are, prima facie, classifiable in different headings? Does my set consist of products or articles put up together to meet a particular need or carry out a specific activity? Are they put up in a manner suitable for sale directly to users without repacking(e.g., in boxes or cases or on boards)? If you can answer YES to these questions, chances are that you have a set! Now figure out which of these has the essential characteristics. GIR 6 There is also GIR 6 to apply before you can determine your customs classification. Binding Ruling If still in doubt, consider getting a binding ruling from the authorities to help you get legal certainty.

(S) Part 3: EU rules for the completion of export health certificates are complex. Here are seven steps to follow to get it right. Watch Part 2: https://www.customsmanager.org/post/three-part-mini-video-series-how-can-i-be-exempted-from-new-eu-food-licence-requirements Part 3: Top 7 steps you can take now What happened? The EU has published the rules to follow for the completion and use of the model animal health certificates and model animal health/official certificates for certain imports into the EU. The rules explain how animal health certificates must be completed and on what models for various species.. Why does it matter? Using outdated or incorrect certificates can lead to goods being rejected at the border and this increases delays and costs. What can I do? Exporters to the EU of the animal products concerned need to make sure that they have the correct documentation, completed in all particulars and stamped and signed by authorized veterinarians as per the EU legislation. Contact us to discuss how we may be able to support your de-risk and ensure ongoing compliance with the law. Name of the Regulation: Commission Implementing Regulation (EU) 2021/403 of 24 March 2021 laying down rules for the application of Regulations (EU) 2016/429 and (EU) 2017/625 of the European Parliament and of the Council as regards model animal health certificates and model animal health/official certificates, for the entry into the Union and movements between Member States of consignments of certain categories of terrestrial animals and germinal products thereof, official certification regarding such certificates and repealing Decision 2010/470/EU (Text with EEA relevance) Link to the legislation: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2021.113.01.0001.01.ENG&toc=OJ%3AL%3A2021%3A113%3ATOC Link to the full blog entry: https://www.customsmanager.org/post/pizza-fish-fingers-burgers-and-the-like-eu-food-import-controls-from-21-april-2021-ready

(FREE) Customs authorities use a form of terminology which is rarely fully understood. Let's learn the customs lingo! Ad Valorem The term (from the Latin) means “According to value”. It refers to import duty liabilities, which are always expressed as a percentage and are based on the total import value of the consignment on a CIF (Cost Insurance and Freight) basis. A.TR ATR is the term used to refer to the document used for preferential free trade between the EU and Turkey. It specifically refers to the A.TR Movement Certificate, which enables importers in both the EU and Turkey to import consignments on a duty-free basis from each other as long as the goods are in free circulation in either bloc. CPC – Customs Procedure Code The Customs Procedure Code (CPC) is the 7-digit code found in box 37 of both import and export Customs declarations which refers to the status of the consignment being exported or imported, and whether it is treated as being in free circulation (duty paid) or under duty suspension and therefore Customs control, such as under Inward Processing Relief (IPR) status. It is the responsibility of the declarant at both import and export stages to ensure that the correct status of the goods under such circumstances is declared correctly. Failure to do so will result in the imposition of excess import duty and VAT. Deferment This is the process whereby import duty and VAT are not paid at the time of importation of a consignment, but will be deferred until a fixed date the following month and paid to customs. Frequent importers may apply for a duty deferment account to avoid payment of import duty and VAT every time a consignment arrives in the country. This means that import duty and VAT is removed automatically from their account every month by direct debit as an accumulated total for all imports made during the previous month, as the payment is made in the month following that during which the imports were actually made. End-Use Relief This is an import duty relief facility used for the import of materials that are destined for a specific and prescribed use, namely inclusion in products destined for the following sector uses: Shipbuilding and repair (shipwork) Aviation Continental Shelf (offshore oil & gas) Military EUR1 EUR1 refers to the Movement Certificate used in the free trade preferential system which allows the importer to import goods duty-free (in most cases) from countries engaged in free trade with the European Union. The certificate is known as EUR1. Excise Excise refers to the duty payable on all items of the following nature: Alcoholic goods Tobacco-based products Oil-based fuels Perfumes This duty applies domestically as well as on imported goods. GSP GSP (Generalised System of Preferences) is the regime whereby importers based in North America and Europe (including Norway and Switzerland) may import goods from developing countries which are authorised to issue a GSP Certificate of Origin on a duty-free or duty-reduced basis. A list of such countries may be found in the Customs Tariff. HS - Harmonised System The system is a universal economic language used to determine your goods. Developed by the World Customs Organisation (WCO). Used by over 200 countries Covers 99% of world trade. Creates a worldwide map of goods and movement IP Inward Processing is the regime used to allow traders to import goods duty-free (under import duty suspension) into the EU as long as those goods are to be re-exported at a determined later stage. The trader must gain prior authorisation from HMRC to operate this facility. MFN The standard-duty rate is based on the GATT/WTO principle of Most Favoured Nation (MFN). "Most favoured nation" (MFN) is one of the cornerstones of WTO trade law. MFN status is granted by governments on certain countries goods with the intention that a set level of customs duty will remain stable and non-discriminate. Free or Preferential Trade Agreements give partner countries access to lower tariffs than the MFN rate. OP Outward Processing (OP) is the regime used to allow traders to export materials for processing overseas and then re-import the resulting product at an import duty liability based on the value of the overseas processing cost (known as value-added). The trader must gain prior authorisation from HMRC to operate this facility. RGR Returned Goods Relief (RGR) is a facility whereby goods exported from the EU up to 3 years previously may be reimported into the EU free of import duty, but with import VAT liability. Duty Suspension Duty Suspension is a technique used to avoid paying import duty paid on an imported consignment which is subsequently re-exported out of the EU has undergone processing in the EU under the Inward Processing Regime. The importer must be authorized to use this facility by customs prior to carrying out such activities. T1 T1 is the status given to goods in Community Transit, i.e. entering the EU to be carried across the EU to a point where they leave the EU again. It is now part of the NCTS (New Community Transit System). T2 T2 is a document that is used to accompany a consignment which is in EU free circulation but which crosses a non-EU country before re-entering the EU at another point, i.e. Germany – Italy via Switzerland. It is also used where goods are carried by sea between two EU countries on a ship which is registered and owned outside the EU. Tariff Number Also known as a commodity code, Customs Cooperation Council Number, Harmonised System Number, trade code number or BTN (Brussels Tariff Number) this is a system of coding and classification used in international trade which identifies goods for duty, statistical and customs clearance purposes. WTO - World Trade Organisation The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. WCO - World Customs Organisation GATT work led to the adoption in 1950 of the Convention Establishing the Customs Cooperation Council (CCC), which was signed in Brussels. In 1994, the Organisation adopted its current name, the World Customs Organisation. It looks after Commodity Codes, the HS Commodity coding system. It works on harmonised procedures, security initiatives and much more. Got more terms? Get in touch with us to suggest more...

(S) Part 2: Rules for completion of export health certificates in the EU are complex. Arne Mielken, CEO of Customs Manager explains ways to get an exemption from licensing requirements. Part 2: How to get a licence exemption What happened? The EU has published the rules to follow for the completion and use of the model animal health certificates and model animal health/official certificates for certain imports into the EU. The rules explain how animal health certificates must be completed and on what models for various species. Why does it matter? Using outdated or incorrect certificates can lead to goods being rejected at the border and this increases delays and costs. What can I do? Exporters to the EU of the animal products concerned needs to make sure that they have the correct documentation, completed in all particulars and stamped and signed by authorized veterinarians as per the EU legislation. Contact us to discuss how we may be able to support your de-risk and ensure ongoing compliance with the law. Name of the Regulation: Commission Implementing Regulation (EU) 2021/403 of 24 March 2021 laying down rules for the application of Regulations (EU) 2016/429 and (EU) 2017/625 of the European Parliament and of the Council as regards model animal health certificates and model animal health/official certificates, for the entry into the Union and movements between the Member States of consignments of certain categories of terrestrial animals and germinal products thereof, official certification regarding such certificates and repealing Decision 2010/470/EU (Text with EEA relevance) Link to the legislation: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2021.113.01.0001.01.ENG&toc=OJ%3AL%3A2021%3A113%3ATOC Link to the full blog entry: https://www.customsmanager.org/post/pizza-fish-fingers-burgers-and-the-like-eu-food-import-controls-from-21-april-2021-ready

(P) This 1-hour explainer broadcast webinar provides the TOP TEN STEPS that You need to remember and implement to expedite your exports compliantly. Exporting to new markets can offer a wealth of opportunities to diversify one’s customer base and gain additional revenue streams. Get it wrong, and you can find yourself a lot of trouble. This is the live recording of a detailed 1-hour explainer video on exporting. Learn what it takes to get your product out of a country, efficiently, effectively and, of course, compliantly. It provides the top 10 tips that exporters, new or established, need to think about when exporting. If you like to learn more, book our full live course: https://www.customsmanager.org/bookings-checkout/training-exporting-essentials? To learn more about successful exporting, visit our Export Hub: https://www.customsmanager.org/how-to-export-sucessfully

(FREE) Customs is a jungle of abbreviations and complex words - The perfect place for CustomsGeeks. Can you understand and explain the following 35 essential terms? PART 1 of 2: The Quiz TIME FOR A CHALLENGE Here are our 35 top terms you will hear in importing and exporting all the time. But do you know what they actually mean? Test your knowledge now (Solutions below). Here is the results key: 35-30 correct answers = Customs Geek. We want to hire you or at least meet you. Get in touch to claim a free coffee :-) 29-20 correct answers = Customs Geek in training. Little brush up cannot help. 19-10 correct answers = Well, this is going to get tough for you. Get in touch, we need to talk. 9 - 0 correct answers = We think you are looking for CustomERS, not Customs. You might be at the wrong place. Get in touch, we can help. What is and why does it matter? Air waybill Bill of lading Certificate of Origin (COO) Commercial invoice Consignment Consular invoice Customs declaration Customs invoice Export licence Packing list Freight forwarder Incoterms Inspection certificate Insurance certificate Pro forma invoice Tariff Tariff Code Terms of Sale Origin/Originate TCA preference Preference Union goods Preferential origin Non-preferential origin Statement on origin Importer’s knowledge Free circulation Transit Special Procedures UK Global Tariff Returned Goods Relief Product-specific rules Goods subject to any form of operation Wholly obtained Wholly produced Certificate of conformity Want to know what all these terms mean and see if you got them right? Then check out PART 2 of this blog for the solutions and our suggestions of answers. Good luck! And watch our for the second blog with the answers. :-)

(FREE) Together with Export Exert Mike Wilson, we explore 10 ways to start exporting around the world. Recently, we sat down with renowned international trade strategist Mike Wilson to discuss how exporting around the world can help global businesses. Please check out our YouTube Videos on this conversation. Following on, we caught up with Mike to ask him to name his Top 10 tips. Let's see what he had to suggest: Decide where to sell Have a plan Choose a route to market Find the opportunities Start marketing Understand the admin Get paid and get insured Legal considerations Transport logistics Ensure repeat business + How to get more help and a free consultation 1. Decide where to sell Research is vital! Identify the markets with a little desk research. Find the consumption/import figures of products similar to your own and the economic growth rate of a potential new market. Look up the demographics, cultural and religious practices and your potential competition. 2. Have a plan Your export plan should include your people, capacity and knowledge of the market. Can someone from your team drive this programme, or do you need to recruit? Do you have enough capacity to meet a new market’s demands? Do you need to upscale? Visit your potential new market. Showcase your products at trade fairs and build new contacts. 3. Choose a route to market You can do one of four options: 1. Sell directly 2. Use a distributor 3. Use a sales agent 4. Create a joint venture. Whichever option you chose, you must ensure clarity of responsibility for things like delivery and payment and ALWAYS remember to protect your intellectual property. 4. Find the opportunities Trade fairs are one of the best ways to find opportunities both in the UK and abroad. Meet buyers and generate new business. Check with us about available grants to subsidise the cost of exhibiting, or see if you can share the cost of a stand with another business. 5. Start marketing Adverts can help you gain exposure but can be expensive. As with the UK, be mindful of the target audience and expense vs. return on investment. Another option is to create a website with content translated according to your target market. Global social media sites such as Linkedin, Facebook and Twitter can also help you to promote your message quickly and free of charge. Although these do not cost anything to set up, they need time invested to keep updated. Whatever you use, make sure all your marketing materials have up-to-date contact details for your company, along with the person responsible for export sales. 6. Understand the admin There are certain admin obligations that need to be correct from the start. Countries may have an embassy of the destination country, and they will usually help you to clarify the requirements for customs registration, forms, and payments. Documentation is at the very heart of exporting, without it there is no contract, no transport and no payment. The requirements vary from country to country. We can complete the paperwork on your behalf – in part or in full, depending on your requirements. You can also reach out to specialists and the experts at Customs Manager or Go Exports, of course, to help you out. 7. Get paid and get insured Once the orders start to come in, you need to be paid. The fundamentals to think about are: Incoterms: Internationally agreed rules setting out delivery terms for goods traded across borders. Buyer and seller agree on details on the terms of sale to prevent misunderstandings or disputes. Incoterms set out responsibility for the cost of transporting goods, insurance, taxes or duties, pick up points, destinations, and responsibility for the goods at each stage. Export documentation: Get the right documents to enter the market. Written quotations: A written quotation must set out the details of your product including the size and packaging formats, as well as any potential additional cost for providing export labelling and packaging which you may be charging to the customer. Setting out the price and delivery terms (incoterms), the estimated date of shipment on arrival and payment terms and conditions is vital to avoid any disputes further down the line. Late, or non-payment of bills is a risk and insurance could be a consideration. Any new customers requesting a form of trade credit need a credit check. An irrevocable letter of credit could be advised which will secure payments according to the terms of the credit and at an agreed rate. Make sure you are insured for your goods during transportation. 8. Legal considerations Understanding the legal and regulatory environment in all countries to which you would like to export is vital. We can help get your paperwork in place and put you in touch with international lawyers should it be required. Basic things to consider: Are your product compliance certificates and liability cover valid overseas? Check your intellectual property rights and registered trademarks. Will your packaging design appeal to your market? Is there a legal requirement to label things differently or do you need to translate your labelling? 9. Transport logistics Now you’ve made the sale and agreed the terms, you have to get the goods there! We can help make sense of transportation. From your Incoterms insurance, duties and customs clearance, to the packaging you require and the method(s) of transport or freight forwarders required. 10. Ensure repeat business Congratulations. Now you have successfully become an international exporter. The work doesn’t stop here. Now you need to increase your chances of repeat business and become a reliable international exporter with a solid brand. Top tips include: Keep in regular contact with your customers and get feedback to improve your offer. Deliver on time and don’t keep people waiting. If delays cannot be avoided, make sure you communicate early and often with your customers and keep them updated on progress. Don’t rest on your laurels. Keep an eye on other potential customers so that you can grow your sales. Continue with your promotional activity and keep visiting the trade shows. Now that you are successfully exporting into one market, use everything that you have learnt and apply that to another new market. Explore adjacent countries or those with similar characteristics. You already have a very good understanding of what it takes to become successful, so your exploration into additional markets should be quicker and potentially easier for you to continue with your expansion and growth. Need more help? Why not have a free chat with us to discuss your expansion strategy. Easy schedule at www.customsmanager.org for a free consultation. Or reach out directly to Mike Wilson for a free consultation at www.goexporting.com