How to send parcels after Brexit

  • March 17, 2021
  • 9130x

You have surely noticed that several years of disputes are over, and the divorce of the UK and the European Union was completed on January 1, 2021. New rules therefore apply for sending packages between the EU and the United Kingdom; we have created a list of them for you. 

 

1. All consignments must go throguh customs clearance (even in the case of zero customs duty).

2. The contents of the consignment and its value must be declared on an invoice.

3. The customs duty and VAT are assessed.

 

What do these three points mean for you?

You can't avoid customs clearance

As of January 1, 2021, the same rules apply to the UK as to any other non-EU country. This means that all consignments (except paper documents) traveling between the UK and the EU must be cleared. The delivery time can therefore be extended by a day or two, which is essential information for you, our customers.

It will also affect administration, but it's nothing we can't handle. Our experienced team goes through each shipment individually, and in the case of ambiguity or incomplete information, we will contact you and add the missing data. We do this in order to avoid unnecessary complications in the event that these shortcomings are only discovered at customs.

 

Distinguish between private and commercial consignments

Now you will also encounter a "pro forma invoice" when sending parcels to the UK. This lets the customs officer know what goods you are sending to the country, and whether the state is entitled to a fee in the form of customs duties or VAT. This is not a regular invoice serving as a tax document (or bill), which we know from common practice.

If you are sending gifts or personal items, or you are moving, for example, this is a private consignment. The invoice must therefore contain all items that are in the consignment so that we and the customs officers know what you are sending.

Are you sending a commercial consignment? Then its value is declared by a commercial invoice, which should contain a description of the goods, the unit, amount, unit price, net weight, gross weight and HS code (tariff code).

 

Pay attention to the value of the consignment

The value of what is in the package determines the obligation to pay customs duties or VAT. Individual amounts are currently divided as follows:

Up to 39 GBP – we prefer these consignments, because they are duty free and VAT exempt. When placing an order on our website, our system will prepare the invoice for you up to this value, and if you do not inform us via email that you want to change it, customs duties and VAT will not be assessed. A fee is only paid for the customs procedure, which is included in the price of transport.

b) Up to 135 GBP – VAT on these consignments may be paid in the amount of 20 % in the event of import into the UK; in other destination countries, the percentage according to the table below applies. The content of the consignment is decisive. If you are charged VAT or customs duties, you may also be charged a customs fee in the destination country.

c) Commercial consignments and consignments over 135 GBP – the customs duty and VAT will be assessed according to the invoice and HS code of individual items. If you sell goods between the EU and the UK, both the sender and the recipient must have an EORI number in that country. If you are not a company, the customs office will issue a one-off EORI number upon request.

 

 

A customs procedure is a separate process carried out by customs authorities, and Teahouse Transport is not a party to it and cannot influence it other than by interpreting information between the customs office and the consignee/consignor. This is purely a relationship between the customs authority as a separate authority and the consignee/consignor. In the case of a random physical inspection of the contents of the consignment by the customs authority, or if the customs officer requests additional information, the customs administration may reconsider the declared value of the contents of the consignment and may assess customs duties or VAT, or prescribe an additional customs fee for the customs procedure. In such a case, the consignee/consignor is obliged to pay this fee, and Teahouse Transport does not bear any responsibility for this payment.

 

 

Glossary of important terms

Customs duty – customs duty is a tax collected by the state when goods cross the customs border. A country or group of countries uses customs duties as a means of protection from goods from other countries, as a means of an economic form of political fight and, last but not least, as a means of raising money. The collection of customs duties is controlled by the customs administration (customs office) of the given country and is regulated by the customs law.

VAT – value-added tax (VAT in short) is one of the most important revenues of state budgets. Everyone pays it when they buy most goods and services.

Country

Standard rate (in %)

VAT abbreviation

Belgium

21

BTW/TVA

Bulgaria

20

DDS

Czech Republic

21

DPH

Denmark

25

MOMS

Estonia

20

KMKR

Finland

24

ALV

France

20

TVA

Croatia

25

PDV

Ireland

23

VAT

Island

24

VASK

Italy

22

IVA

Cyprus

19

FPA

Lichtenstein

8

MwSt

Latvia

21

PVM

Lithuania

21

PVN

Luxembourg

17

MwSt

Hungary

27

AFA

Malta

18

VAT

Germany

19

USt

Netherlands

21

BTW

Norway

25

MVA

Poland

23

PTU/VAT

Portugal

23

IVA

Austria

20

USt

Romania

19

TVA

Greece

24

FPA

Slovakia

20

DPH

Slovenia

22

DDV

Spain

21

IVA

Sweden

25

MOMS

Switzerland

7,7

MwSt

Great Britain

20

VAT

HS code – The World Customs Organization has developed the Harmonized System (HS) as multi-purpose international product classification. It describes all products that can be traded internationally. In order for commodities to successfully cross international borders, the correct HS code (also known as the HTS code or tariff code) must be declared. This code identifies the applicable duty and the tax rate payable for the item. It is basically the code of a product for customs purposes.

Customs fee – this is a fee charged for customs operations or administrative work of customs officers.

a) Sender's customs fee – this fee is paid by us and is included in the price of transport.

b) Recipient's customs fee – this charge is not applicable for shipments up to 18 GBP. For shipments over GBP 18, the recipient may be charged if VAT or customs duties are assessed. Its amount is determined by the customs office in the destination country.

 

 

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