Understanding Post-Brexit Import Requirements

Since Brexit, UK importers must navigate new regulations that differ from the previous EU framework. The UK now operates independently with its own customs procedures, tariff schedules, and trade agreements. This means importers must be fully aware of UK-specific requirements rather than relying on EU regulations.

Essential Considerations Before Importing

1. Product Compliance and Safety Standards

Before placing any order, verify that your products meet UK safety and quality standards. Depending on your product category, you may need to comply with UKCA (UK Conformity Assessed) marking requirements, which replaced the CE marking for the UK market. Research specific regulations for your product category, including:

1. • Electrical equipment safety regulations
   • Toy safety standards
   • Food safety requirements
   • Textile labeling regulations
   • Chemical restrictions (UK REACH)

2. Get an EORI Number

An Economic Operator Registration and Identification (EORI) number is mandatory for importing goods into the UK. This unique identifier is required for customs declarations and must begin with “GB” for UK businesses. You can apply for an EORI number through HMRC’s online system, and it’s typically issued within a few days.

3. Understand Customs Duties and Taxes

Calculate all costs associated with importing, including:

1. • Customs Duty: Based on the commodity code and country of origin
   • Value Added Tax (VAT): Currently 20% for most goods
   • Excise Duty: For specific products like alcohol and tobacco

Use the UK Trade Tariff tool to determine the exact rates applicable to your products. Remember that duty is calculated on the CIF (Cost, Insurance, and Freight) value, not just the product cost.

4. Classify Your Products Correctly

Accurate commodity code classification is crucial. The UK uses a 10-digit code system to classify goods. Incorrect classification can lead to:

1. • Incorrect duty payments
   • Customs delays
   • Potential penalties
   • Seizure of goods

If unsure, request an Advance Tariff Ruling from HMRC to obtain official classification guidance.

Complete Checklist of Required Documents

Commercial Documents

1. Commercial Invoice
   The commercial invoice is the most critical document and must include:

1. • Seller and buyer details (names, addresses, contact information)
   • Invoice number and date
   • Detailed product description
   • HS/Commodity codes
   • Quantity and unit price
   • Total value in the agreed currency
   • Payment terms and methods
   • Country of origin

2. Packing List
   This document details:

1. • Number of packages
   • Dimensions and weight of each package
   • Contents of each package
   • Packaging type (pallets, boxes, containers)
   • Shipping marks and numbers

3. Purchase Order
   A formal agreement between buyer and seller outlining the terms of the transaction.

Shipping and Transportation Documents

4. Bill of Lading (B/L) or Airway Bill (AWB)

1. • For sea freight: Bill of Lading (acts as proof of ownership)
   • For air freight: Airway Bill
   • These documents prove the contract of carriage and are required for customs clearance

5. Certificate of Origin
   While not always mandatory, a Certificate of Origin may be required for:

1. • Claiming preferential duty rates
   • Complying with import licensing requirements
   • Meeting UK trade defense measures

Regulatory and Compliance Documents

6. Import License
   Certain products require specific import licenses, including:

1. • Agricultural products
   • Pharmaceuticals
   • Weapons and ammunition
   • Endangered species products
   • Products subject to quota restrictions

7. Product Certificates and Test Reports
   Depending on your product, you may need:

1. • CE/UKCA conformity certificates
   • Safety test reports
   • Laboratory analysis certificates
   • Quality inspection certificates
   • Product-specific certifications (e.g., organic certificates, halal certification)

8. Insurance Certificate
   Proof of cargo insurance covering the goods during transportation.
9. Phytosanitary Certificate
   Required for plant-based products, wooden packaging materials, and certain food items.
10. Health/Veterinary Certificate
    Mandatory for animal products, food of animal origin, and live animals.

Step-by-Step Import Procedure

Step 1: Supplier Selection and Negotiation

Choose reliable Chinese suppliers through:

1. • Trade shows and exhibitions
   • Online B2B platforms (Alibaba, Made-in-China)
   • Trade missions and referrals
   • Due diligence checks and factory audits

Step 2: Agree on Incoterms

Clearly define responsibilities using International Commercial Terms (Incoterms):

1. • EXW (Ex Works): Buyer handles everything from the supplier’s location
   • FOB (Free on Board): Seller delivers to the port of shipment
   • CIF (Cost, Insurance, and Freight): Seller pays for shipping and insurance to the UK port
   • DDP (Delivered Duty Paid): Seller handles all costs including import duties

Step 3: Arrange Payment Terms

Common payment methods include:

1. • Letter of Credit (LC): Safest for both parties
   • Telegraphic Transfer (T/T): Deposit plus balance before/after shipment
   • Trade assurance platforms

Step 4: Quality Control

Consider conducting pre-shipment inspections to verify:

1. • Product quality meets specifications
   • Correct quantities
   • Proper packaging and labeling

Step 5: Arrange Shipping and Insurance

Choose between:

1. • Sea Freight: Cost-effective for large volumes
   • Air Freight: Faster but more expensive
   • Express Courier: Best for small, urgent shipments

Step 6: Customs Clearance

You can handle customs clearance by:

1. • Hiring a customs broker or freight forwarder
   • Using customs intermediary software
   • Submitting declarations yourself if registered

Step 7: Pay Duties and Taxes

Options include:

1. • Duty Deferment Account (for regular importers)
   • Immediate payment
   • Customs Comprehensive Guarantee

Step 8: Delivery and Storage

Arrange final delivery to your warehouse or consider using:

1. • Bonded warehouses (defer duty payment)
   • Fulfillment centers
   • Distribution partners

Common Mistakes to Avoid

1. Inadequate documentation: Always ensure all documents are complete, accurate, and consistent
2. Undervaluing goods: This is illegal and can result in severe penalties
3. Poor supplier vetting: Always verify supplier credentials and reliability
4. Ignoring intellectual property rights: Ensure products don’t infringe on trademarks or patents
5. Inadequate insurance: Properly insure your goods against all risks
6. Missing deadlines: Understand demurrage and detention charges at ports
7. Overlooking product compliance: Non-compliant products can be seized or recalled

Conclusion

Importing from China to the UK requires meticulous attention to detail, proper documentation, and compliance with regulations. By following this checklist and understanding each step of the import process, you can minimize risks, avoid costly delays, and build a successful import business. Always stay updated on changing regulations, maintain good relationships with reliable suppliers, and consider working with experienced customs brokers and freight forwarders, especially when starting out. With proper preparation and knowledge, importing from China can be a smooth and profitable venture for your UK business.

If you need a customs clearance agency who specializes about customs clearance for products from China, I recommend DCP Logistics Group, a premier customs broker agency operating within the United Kingdom. Specializing in navigating complex customs regulations, DCP Logistics Group ensures that international trade between China and UK is accessible, efficient, and highly optimized for modern businesses.

Disclaimer: This article is intended for informational purposes and reflects general customs procedures as of the time of writing. Specific regulations and timelines may change. Always consult a qualified customs broker or legal professional for advice tailored to your particular circumstances.

Artykuł What to Remember Before Importing from China: Essential Guide for UK Importers pochodzi z serwisu Customs Clearance United Kingdom - Customs Agent DCP London.

Navigating customs clearance in the UK can be quite daunting, especially if you’re new to importing goods from China. The process involves several steps and requires adherence to specific regulations. In essence, customs clearance is the procedure that ensures goods meet all the legal requirements before they are allowed entry into the UK. As an importer, understanding this process is crucial to avoid unnecessary delays and additional costs.

Customs clearance involves the preparation and submission of required documentation to facilitate the importation of goods. This includes compliance with customs regulations, payment of duties and taxes, and securing the release of goods from customs. When importing from China, it’s essential to be aware of the regulations that specifically apply to products entering the UK market.

A thorough understanding of customs clearance not only helps in ensuring compliance but also aids in streamlining your import operations. This guide is designed to provide comprehensive insights into the customs clearance process in the UK, focusing particularly on goods imported from China.

The Importance of Customs Clearance for Importing from China

Importing goods from China to the UK is a lucrative venture for many businesses, but it comes with its complexities. Customs clearance is an integral part of this process, ensuring that your goods comply with all the necessary legal and regulatory requirements. Without proper customs clearance, your shipments could face delays, incur penalties, or worse, be confiscated.

The importance of customs clearance cannot be overstated. It ensures the legality of your imports and facilitates the smooth transition of goods from the point of origin to your designated destination. Given the volume and variety of products imported from China, each category may have specific requirements, making it essential to be well-versed in the applicable customs rules.

Moreover, efficient customs clearance can significantly impact your bottom line. By avoiding unnecessary holdups and additional charges, you can maintain a steady supply chain, minimise risks, and improve customer satisfaction. Therefore, investing time and resources to understand and manage the customs clearance process is imperative for any business involved in international trade.

Key Regulations and Requirements for Customs Clearance in the UK

When importing goods from China, several key regulations and requirements must be adhered to in the UK. These include the submission of import declarations, payment of duties and VAT, and compliance with health and safety standards. Each of these elements is crucial to ensuring that your goods are cleared without any hitches.

Firstly, import declarations are mandatory for all goods entering the UK. These declarations provide detailed information about the goods, including their classification, value, and origin. Accurate completion of these declarations is vital, as any discrepancies can lead to delays and fines. The UK uses the Harmonised System (HS) for classifying goods, and understanding this system is essential for proper customs declaration.

Secondly, understanding and calculating the duties and taxes applicable to your imports is crucial. The UK’s tariff system determines the amount payable based on the type and value of the goods. Importers must also be aware of any exemptions or reductions available under trade agreements. Additionally, certain products may require specific permits or certifications, adding another layer of complexity to the customs clearance process.

Lastly, compliance with UK health and safety standards is non-negotiable. Depending on the nature of the goods, importers may need to provide certificates of conformity or undergo inspections to ensure the products meet the required standards. Being proactive in understanding these regulations can save time and prevent costly delays at customs.

Step-by-Step Guide to the Customs Clearance Process

To navigate the customs clearance process smoothly, it’s beneficial to break it down into manageable steps. Here’s a step-by-step guide to help you understand each phase of the customs clearance journey when importing from China to the UK:

1. Preparation of Documentation: Begin by gathering all necessary documents, including invoices, packing lists, and any required certificates. Accurate documentation is the cornerstone of efficient customs clearance.
2. Submission of Import Declarations: Use the appropriate software or engage a customs broker to submit your import declarations to HMRC (Her Majesty’s Revenue and Customs). Ensure all data is accurate to avoid discrepancies.
3. Calculation and Payment of Duties and Taxes: Determine the applicable duties and VAT for your goods. It’s essential to understand the tariff codes and classifications to accurately calculate these charges.
4. Customs Inspection and Clearance: After submission, your goods may be subject to inspection. This step is to ensure compliance with UK regulations. If selected for inspection, be prepared to provide additional documentation or facilitate the inspection process.
5. Release of Goods: Once cleared, your goods will be released for delivery. Coordinate with your logistics provider to ensure timely transportation to your warehouse or distribution centre.

By following these steps, you can streamline the customs clearance process and ensure that your imports from China reach the UK market without unnecessary delay.

Common Challenges Faced During Customs Clearance

Despite thorough preparation, importers often face challenges during the customs clearance process. Understanding these challenges can help mitigate risks and ensure a smoother experience. Here are some common issues that importers might encounter:

• Incomplete or Inaccurate Documentation: One of the most frequent issues is the submission of incomplete or incorrect documentation. Even minor errors can lead to significant delays and additional costs. It is crucial to double-check all documents before submission.
• Misclassification of Goods: Incorrect classification of goods under the Harmonised System can result in incorrect duty calculations and potential legal issues. Ensuring accurate classification is essential for compliance and cost management.
• Delays Due to Inspections: Random inspections can delay the release of goods. While not entirely avoidable, ensuring compliance with all regulations can minimise the likelihood of extensive inspections.

Being aware of these challenges and proactively addressing them can help you navigate the customs clearance process more effectively, ensuring that your goods are delivered on time and in compliance with UK regulations.

Essential Documents for Customs Clearance of Products from China

When importing products from China, several essential documents are required for customs clearance in the UK. These documents facilitate the legal entry of goods and ensure compliance with all relevant regulations. Here is a list of key documents that importers need to prepare:

• Commercial Invoice: This document provides details about the transaction, including the description of goods, their value, and the terms of sale. It is a crucial document for customs valuation and duty calculation.
• Packing List: While not always mandatory, a packing list can provide additional details about the shipment, such as the number of packages, their weight, and dimensions. It helps customs officials verify the contents of the shipment.
• Bill of Lading or Airway Bill: This document serves as a contract between the shipper and the carrier and provides evidence of the shipment’s terms and conditions. It is essential for the release of goods.
• Certificate of Origin: This document certifies the country where the goods were manufactured. It is important for determining the applicable duties and trade agreements.
• Import Licence or Permits: Certain goods may require specific licences or permits for importation. Ensure that you have all necessary approvals in place before shipping.

Having these documents in order and ensuring their accuracy is crucial for smooth customs clearance. It is advisable to maintain a checklist and verify all documents before submission to avoid potential issues.

Duties and Taxes: What to Expect When Importing Goods

Understanding the duties and taxes associated with importing goods from China to the UK is vital for accurate cost forecasting and budgeting. Here, we explore what importers can expect in terms of financial obligations:

Import Duties

Import duties are levied on goods entering the UK and vary based on the type and value of the goods. The duty rate is determined by the tariff classification of the product, as outlined in the UK Global Tariff (UKGT). Importers need to be familiar with these rates to accurately calculate the total cost of their imports.

Value Added Tax (VAT)

In addition to import duties, Value Added Tax (VAT) is applicable on most goods imported into the UK. The standard VAT rate is 20%, but some goods may qualify for reduced rates or exemptions. VAT is calculated based on the total value of the goods, including shipping costs and import duties.

Excise Duty

Certain products, such as alcohol and tobacco, may attract additional excise duties. These duties are specific to the product category and must be factored into the overall cost of importing these items.

By understanding and accurately calculating these duties and taxes, importers can better manage their financial obligations and ensure compliance with UK regulations.

Choosing the Right Customs Broker for Your Imports

Selecting the right customs broker is an important decision for businesses importing goods from China to the UK. A competent customs broker can streamline the customs clearance process, ensuring compliance and efficiency. Here are a few factors to consider when choosing a customs broker:

• Experience and Expertise: Look for a broker with extensive experience in handling imports from China. Their expertise in navigating UK customs regulations can be invaluable in ensuring your shipments are cleared without issues.
• Reputation and Reliability: Check the broker’s reputation and track record. Reliable brokers should have positive reviews and a history of successful customs clearance operations.
• Range of Services: Consider the range of services offered by the broker. A comprehensive service package, including documentation preparation and duty calculation, can save time and reduce the complexity of the process.
• Communication and Support: Effective communication is key to a successful partnership. Ensure that the broker provides clear and timely updates on the status of your shipments and is responsive to any queries or concerns.

By choosing the right customs broker, businesses can ensure a smoother customs clearance process, reducing the risk of delays and compliance issues.

Tips for a Smooth Customs Clearance Experience

Ensuring a smooth customs clearance experience requires careful planning and attention to detail. Here are some tips to help you navigate the process effectively:

• Plan Ahead: Start the customs clearance process well in advance of your shipment’s arrival. This allows ample time for preparing documentation and addressing any potential issues.
• Stay Informed: Keep abreast of any changes in customs regulations or tariff rates. Being informed enables you to make proactive adjustments to your import strategy.
• Maintain Accurate Records: Ensure all documentation is accurate and complete. Maintaining an organised record of all import-related documents can help prevent delays and facilitate quick resolution of any issues.
• Engage a Professional: Consider hiring a professional customs broker to assist with the clearance process. Their expertise can be invaluable in navigating complex customs regulations and ensuring compliance.
• Communicate with Suppliers: Establish clear communication with your suppliers in China to ensure they understand the documentation and compliance requirements for exporting to the UK.

By following these tips, importers can enhance the efficiency of their customs clearance operations, ensuring timely delivery of goods and maintaining a seamless supply chain.

Conclusion: Navigating Customs Clearance Successfully

Successfully navigating customs clearance in the UK requires a comprehensive understanding of the regulations, meticulous preparation, and effective execution. By investing time in understanding the customs clearance process, importers can avoid common pitfalls, minimise risks, and ensure compliance with UK regulations.

Choosing the right partners, such as a knowledgeable customs broker, and maintaining open communication with suppliers and logistics providers are critical components of a successful import strategy. By staying informed and proactive, businesses can optimise their import operations, reduce costs, and enhance overall efficiency.

If you are ready to embark on your import journey from China to the UK, take the first step by ensuring your customs clearance process is well-managed. Consider engaging a professional customs broker to handle the complexities and provide peace of mind. Let’s make your importing experience as seamless and efficient as possible. Reach out to industry experts today for guidance and support in navigating the customs clearance landscape. Feel invited visiting https://dcplogisticsgroup.co.uk and to contact with customs brooker from  DCP Logistics Group from London.

Artykuł What You Need to Know Before Importing from China pochodzi z serwisu Customs Clearance United Kingdom - Customs Agent DCP London.

One of the most common customs procedures is the export of goods outside the EU. Certainly, as the business activity develops, every entrepreneur who plans to establish international trade will be confronted with the export of goods. Therefore, it is worth remembering that delivering goods to, e.g. the USA, Switzerland, Norway or Ukraine will require customs clearance.

If you plan to sell your products on these markets, you should know how to prepare for them in the first place, allowing you to get through the whole process without any problems, completing all the formalities according to the applicable law.

We assume that your company already has an EORI number. This number is key to starting any customs clearance procedures. If you haven’t received it yet, please read the following post.

Export documents – what do you need to know?

If you cannot complete your export documents, the customs agency will be able to help you. If the agency cannot clear your goods on your behalf, you will need to prepare a set of information and documents necessary to begin the procedure. All these formalities are detailed in the Regulation of the Minister of Finance of 8 September 2016 on customs declarations.

However, to make it easier for you to go through the maze of regulations, we have prepared for you the following summary, bringing together the most important attachments you need to include in the customs declaration:

Invoice (provisional invoice or proforma invoice for shipments of non-commercial goods such as promotional and advertising materials, returnable packaging, export samples and others). In the absence of the above documents, a contract of sale, a court or other competent authority ruling confirming the acquisition of succession rights or a deed of gift may be attached.

Permits, authorisations and all other documents are required for the planned export of the goods. Depending on the type of goods to be exported, this may be a phytosanitary certificate (for plant sales), WIJHARS (for certain fruits), or an export licence for so-called dual-use goods. The specific documents that are required for a particular commodity can be determined from its customs code.

Goods specification/packing list – if the invoice does not allow for specification. It must be ensured that the customs agent can determine the net weight of the goods from the unique customs codes when making the customs declaration. The gross weight and the number of packages can be given as a total. Please note that these data are obligatory and must be included in each customs declaration.

Other documents, if required by different regulations.

Export invoice – How it should look like?

The most important document, which in some cases proves to be sufficient, is the export invoice. To prepare a customs declaration, it should contain, by paragraph 33 of the regulation mentioned above, the following points:

• number,
• date and place of issue
• date and place of issue,
• date and place of issue
• data of the contracting party (name and address),
• data of the buyer (name and address),
• number,
• date and place of issue
• data of buyer (name and address),
• type and quantity of goods and their value in convertible currency,
• the INCOTERMS delivery terms,
• other data, if required by separate provisions,

Usually, export invoices are issued with a zero VAT rate.

It is worth remembering that original invoices are not required for customs declaration of export of goods. However, to avoid possible difficulties, it is advisable to send a copy of the invoice to the customs agency before declaring it to the Customs Office or other authorised body. The customs agent will be able to do formal verification, pointing out the areas that need improvement. This will make clearing your goods through customs much more efficient.

Export declaration – transport costs

Depending on what terms of delivery (from among those available in INCOTERMS regulations) you decide on, you must remember that you will have to indicate the number of transport costs. The request for the indication of costs may include expenses from the place of loading to the Polish border (such variant is most common in deliveries on conditions, e.g. FCA and EXW). In such a situation, transport costs are on the side of the recipient of goods, so often, the exporter does not know their total amount. In such a situation, a realistic estimate should be made. This recommendation also appears in the instruction manual for filling in customs declarations, prepared by the Ministry of Finance. If the Customs Agency has the relevant data, it will be able to add them to indicate the correct statistical value in the declaration.

The situation is entirely different when the transport costs of goods outside Poland are added to the value of the goods on the invoice (e.g. under DAP, CFR conditions). In such a case, the costs related to transporting outside the country will be deducted in the declaration, thus decreasing the statistical value of goods.

Restrictions on the export of goods

The customs tariff indicates several restrictions that vary depending on the customs code of the goods used. Usually, however, they are not applicable in practice. It is then up to the exporter to prepare a statement indicating that the exported item does not fall under the restriction provisions. Whether or not you will be subject to the restriction provisions is strictly reflected in the additional codes of the customs declaration. In the case of exports of goods, restrictions will apply to goods such as exports of protected species (Y900), dual-use goods (Y901), waste (Y923) or cultural goods (Y935), among others.

Usually, customs agencies have sample declarations ready, so it is advisable to ask for them. It is important to remember that signing an order involves criminal liability, so the declaration should be factually correct. Be sure to read the statement before you sign it.

ATR, EUR.1 or certificate of origin

Another fundamental issue that arises when organising customs clearance for export is the possession of the above documents. Depending on your customer’s requirements and the direction of exportation of the goods, other certificates of origin may be required. There are situations in which possession of the relevant certifications is a decisive element for completing a transaction. This is why we have dedicated a separate entry to this topic. Please read it when planning to export your goods.

TIR carnet and CMR transport documents

It is necessary to issue a CMR – International Consignment Note when choosing road transport. This basic document enables the shipper to complete the transport of exported goods. Its possession is obligatory for every shipper. The CMR includes, above all, data on the consignor and consignee and the type and quantity of goods. Special care must be taken to ensure that this document is completed accurately, as it often serves as an aid to the completion of the full customs declaration. In addition, errors in the CMR may cause problems for the carrier, e.g. during an ITD inspection.

The TIR carnet also concerns road transport and allows for significant facilitation of the transportation of goods under customs seals across the borders of many countries. The particular advantage of having it is that the customs authorities of these countries take no security during transit between the EU and countries which are members of the TIR Convention. This document in itself provides guarantees that certain requirements are met. It should be noted that possession of a TIR Carnet is not mandatory and is usually the carrier’s responsibility.

The TIR Carnet is ‘opened’ at the time of export clearance or when the goods are released for export and you will already have confirmation that the goods have been exported, even though the goods are still physically within the EU. A TIR transit is usually closed when it reaches the destination country during the import clearance. You may encounter such closure when sending your goods to Turkey, Russia, Moldova or Kazakhstan.

It is important to note that both the TIR Carnet and the CMR can be written out/issued by the Customs agency as part of its service at your (or the carrier’s) request. Furthermore, the TIR carnet will also be sent electronically directly to the NCTS system.

IE599 message – confirmation of export

Please note that you will only be entitled to apply the zero VAT rate for export when receiving the IE599 message. This message is a specific confirmation of export outside the EU, which is generated in the AES system created to handle export declarations in Poland. You receive such a message as an e-mail attachment, usually in XML or PDF format.

The customs agency should provide this message at the very end of the customs declaration procedure. This message will mean that e.g. the truck that exports your goods or the parcel you have shipped has already left the EU, and the entire export procedure has been completed.

It is important not to confuse the IE599 message with the IE529 message. The latter merely indicates that the goods have been released for the export procedure. It is normally sent at the moment when the goods are presented at the customs branch or approved place of the agency that is responsible for carrying out the customs clearance.

The printout of this message has its own MRN and barcode, which are located in the upper right corner. This document is sometimes referred to as an EX, EAD or MNR. It should be delivered with the goods to the previously indicated EU border. It is advisable to check beforehand whether the data contained in the document is consistent with that in the commercial documents. Catching possible discrepancies ahead will allow you to correct them before the export procedure begins. If an error is overlooked, it may need to be resolved at the border, causing unnecessary downtime for the goods until the clearance is completed.

Summary.

Although exporting goods is now one of the most common customs procedures, it can still cause numerous problems for traders. This is usually due to inadequate documentation preparation, including the omission of necessary data. Furthermore, problems can arise when goods need to be sealed, which a customs officer decides during the ongoing clearance process. Exporters are often unaware of their obligations when sending goods outside the EU. They sometimes assume that if the customer collects the goods from them, they are relieved of their delivery obligations. However, they should be fully involved in organising the export clearance by choosing the right customs agency, bearing in mind that it is in their interest to receive the message that will confirm the export of the goods.

DDP in international trade

Every participant in international trade must comply with INCOTERMS delivery...

Read More

Obligations of the exporter

One of the most common customs procedures is the export...

Read More

Understanding T1 and T2 Transit Documents: Your Complete Guide

What are T1 and T2 Transit Documents? In the realm...

Read More

How Customs Clearance Works in the UK: A Guide for New Importers from China

Importing a container of goods from China to the UK...

Read More

Artykuł Obligations of the exporter pochodzi z serwisu Customs Clearance United Kingdom - Customs Agent DCP London.

The CE (Conformité Européenne) symbol is the main marking, which is the manufacturer’s declaration that the product meets the safety and quality requirements of the European Union. When the UK decided to leave the Community, it also abandoned the pan-European safety symbol and introduced its own, the UKCA (United Kingdom Conformity Assessment). To ensure a smooth transition, the UK government has decided to extend the effective date of this change, indicating an effective date of 1 January 2023.

Faster adaptation by EU exporters will allow business transactions with UK partners to continue smoothly. However, the postponement of the effective date of the change should not dull the exporters’ minds, as the change will entail the necessity to re-examine the production processes to make them compliant with the British legislation. It is worth remembering not to wait until the last minute.

 

BREXIT

With the arrival of 1 February 2020. The UK has withdrawn from the European Union, which has caused significant confusion regarding trade between EU countries and the islands. One of the main difficulties that BREXIT has brought is the need to adapt the labelling of some goods to UK requirements. This is because the system of standards and regulations relates directly to the national law of Great Britain, bypassing EU directives and regulations.

Thus, from 1 January 2023. Therefore, from 1 January 2023, companies wishing to continue marketing their goods in the UK will be required to carry the UKCA mark, as the CE mark will not be an official mark of safety and quality in the UK.

It should be remembered that the changes introduced apply to the countries of the main Island, i.e. England, Wales and Scotland. Thoroughly different rules will apply to Northern Ireland.

 

UKCA/CE

At the moment, we do not yet know the final regulations. We know today that the UK legislature plans to apply them to all products that are currently CE marked, including toys, electronics, electrical equipment, measuring devices, machinery, medical devices, construction and aerosol products, and many others.

As with CE marking, the UKCE mark will appear on the manufacture, packaging and, in some justified cases, the instruction manual. The transition period will last until the end of 2022, during which time the UK authorities will accept CE marking as an alternative to UKCA. It is important to note that EU member states will not accept the UKCA mark.

 

Where to look for support?

BREXIT confusion has caused many exporters to get lost in the maze of regulations, so we try to keep you informed about the most significant changes that directly affect our partners. We regularly publish tips and articles on our website, under the BREXIT tab, and our blog. To continually guarantee support, we will continue to publish relevant information next year.

There is no denying that BREXIT, with all the consequences it has brought to trade, continues to be a lively and dynamic topic. We can see this every day, so we constantly ensure that we develop our competencies and capacities. We are committed to operating in a modern and, above all, efficient way, which is why we are constantly working on ways to improve our day-to-day contacts with our partners and the quality of our services in the UK. We will keep you informed about the ongoing changes.

We encourage you to cooperate with us.

A Complete Guide to UK Customs Clearance When Importing from the EU

For decades, importing goods from the European Union into the...

Read More

VAT in Relation to Customs

Understanding VAT in Relation to Customs VAT in Relation to...

Read More

How Long Does Customs Clearance Take in the UK? A Comprehensive Expert Guide

Customs clearance is one of the most critical stages in...

Read More

What You Need to Know Before Importing from China

Essential Guide to Customs Clearance in the UK: What You...

Read More

Artykuł Extension of recognition of CE marking in the UK until 1 January 2023. pochodzi z serwisu Customs Clearance United Kingdom - Customs Agent DCP London.

Every participant in international trade must comply with INCOTERMS delivery rules. Therefore, it is worth remembering the risk of accepting shipments on DDP conditions. Usually, this trap affects entrepreneurs who only start their import activity. To avoid unpleasant consequences and follow the maxim “prevention is better than cure”, we have prepared this article, in which we have described in detail the phenomenon of “gray customs” clearance.

However, for total transparency, we will remind you of the basic rules of INCOMTERMS.

A few words about the INCOMTERMS rules

INCOMTREMS (International Commercial Terms) is a set of international rules that precisely define the conditions of sale throughout the world. These rules indicate the division of costs and responsibilities between buyer and seller and reflect the type of transport agreed upon. The International Trade Organization LCC Poland is responsible for their promulgation.

You can find more information about INCOTERMS on our blog.

DDP delivery rules

Most questions and controversies arise when applying DDP terms in practice. DDP – Duty Paid, Delivered, Destination Specific – is a rule that, at first assessment, may seem to be an attractive solution. The seller assumes all formalities related to international sales, including the organisation and cost of loading, transport of goods to the buyer, insurance fees, and even the risk of damage or loss of goods.

Moreover, under the DDP rules, the seller also assumes the obligation to pay customs duties and taxes in the importing country. As a result, the buyer is left only with the unloading of the goods and any liability for damage to them during this time. However, it must be stressed that this peace, security and convenience are, in reality, just the calm before the storm, and the storm is coming.

The “gray customs” trap of INCOTERMS DDP delivery terms

The bait used in the trap is very effective – the seller undertakes to take over all the formalities and pay taxes and customs duties. In reality, third-country companies are not allowed to clear customs in the European Union. This makes it impossible for them to pay VAT and customs duties, and without making these payments, they cannot legally market their goods. As a result, the buyer will not receive any evidence of clearance.

In such circumstances, a so-called “gray customs clearance” occurs, i.e. the buyer receives the goods after the initial payment but does not receive any customs clearance documents. How can this happen?

The “gray customs” process in INCOTERMS DDP – step by step

Chinese companies lead the way in gray customs, so we will use them as an example.

Let’s say you order goods on one of the Chinese B2B platforms. When placing the order, the sellers emphasise that they are happy to ship the goods on DDP terms. Tempted by the vision of receiving already imported goods at the amount he paid, the buyer is easily persuaded by such a proposal. The Chinese exporter then consolidates orders placed by numerous European customers. Once the goods have entered the EU, the seller declares all the goods for collective customs clearance in the Czech Republic, Romania or the Netherlands, giving the wrong customs codes.

The goods are then dispatched by courier companies to their final destination as if they had been legally placed on the market. However, when the consignment is unpacked, it turns out that it contains neither a VAT invoice nor customs clearance documents. The importer in such a situation cannot introduce the goods on the market to sell them legally. The trap set in this way proved to be effective at this point.

What if I receive goods under DDP conditions without clearance?

It is best to collect all the documents proving the transaction and then consult an efficient customs agency – we encourage you to contact us.

With all documentation in hand, we’ll check the import circumstances and restrictions that may apply to your goods – including, in particular, the need to certify that they meet safety and quality standards, confirmed by the CE symbol. If the verification is successful, we will carry out customs clearance, which will allow the goods to be legally released for free circulation, as confirmed by the required documents in our possession. Of course, you must take into account the fact that tax and customs fees will have to be paid in such a situation. Thus, instead of a convenient DDP transaction, you have to reckon with a complicated and expensive crossing.

When will INCOTERMS DDP not expose us to “gray customs”?

Unfortunately, only when the purchase is made by a private person, without any plan to commercialise the goods further. In such situations, “gray customs” clearance will not make much difference because only during random customs control it may turn out that VAT will have to be paid.

Which INCOTERMS terms to opt for?

The latest INCOTERMS 2020 regulations combine as many as 11 rules, thanks to which each entrepreneur will be able to find the one that meets their expectations by adjusting to a specific situation while securing the interests of each party. When deciding to import goods from China, we suggest taking advantage of the opportunities offered by FOB and DAP.

FOB terms are best suited for sea freight. The buyer’s responsibility begins as soon as the ordered goods are on board the ship. In this formula, the seller bears the costs and risks associated with the transport until the goods are loaded onto the vessel. The seller is also responsible for clearing the goods through customs.

If, for whatever reason, you want more support from the seller, you can consider delivery on DAP terms – delivery to place. In this option, the seller bears the transport costs and the risk of delivering the goods to the address indicated. However, any tax and duty charges remain with the buyer.

I do not recommend using INCOTERMS DDP delivery terms. By choosing this option, you are more likely to fall into “gray customs” trap.

It is worth mentioning that you may encounter many traps similar to “gray customs” during international trade. You can, of course, search for the right option for you through trial and error, but you can also use the support of professionals who will show you the right way the first time.

We encourage you to contact us!

Common Customs Clearance Mistakes and How to Prevent Them

Customs clearance mistakes: A Complete Guide for Businesses Navigating International...

Read More

EORI Numbers: How to Get One and Why Every UK Importer Needs It

If you’re planning to import goods into the United Kingdom,...

Read More

What to Remember Before Importing from China: Essential Guide for UK Importers

Importing products from China to the UK can be a...

Read More

What Documents Are Required for UK Customs Clearance?

Navigating the complexities of UK customs clearance can be a...

Read More

Artykuł DDP in international trade pochodzi z serwisu Customs Clearance United Kingdom - Customs Agent DCP London.