The Royal Mail have asked us to communicate some EU / Exporting updates to all franking machine users within the UK. This communication is in regards to exporting goods to the EU or worldwide following Brexit.
This communication includes a 6 step guide to meeting the new rules, explaining what we all now need to do to meet the new requirements as well as including links to more information should they require it. See below further details and rules that are now in motion in the UK.
6 steps to meeting the new rules…
From 1st January 2021, you need to make some changes to the way you send items to the EU.
The recent agreement between the UK and the EU means the UK is no longer part of the EU’s single market and customs union and new rules apply. You now need to complete and attach a customs declaration form, provide electronic customs data and determine how VAT & duties will be paid for items to all international destinations.
1. GB EORI number
When exporting goods to Europe and Worldwide destinations, it is now mandatory to have a GB EORI number. It’s unique to your business or individual and can be inserted in the VAT field on the customs declaration form (CN22 or CN23) to help with customs compliance. If you don’t have one and you export goods outside of the UK, apply now at gov.uk/eori.
2. Customs declaration forms
Electronic customs data is obtained by scanning a CN22 customs declaration form (for items up to £270) or a CN23 (for items of £270 or over). It is now mandatory for this to be provided for overseas items (excluding personal correspondence).
Complete the appropriate customs declaration clearly in block letters and attach it to the outside of your parcel(s). It is your responsibility to ensure the customs declaration includes an accurate description of the goods, their weight and value, your EORI number, the correct HS code and whether it’s a gift or commercial item. A customs declaration form is not required for customers sending items from Northern Ireland to the EU.
3. HS product codes
When exporting goods to Europe and Worldwide destinations, it is mandatory to include the Harmonised System (HS) code. This will help customs authorities identify the item, regardless of language barriers. You can access the UK’s HS lookup tool at parcelforce.com/tariffcode or visit gov.uk/trade‑tariff.
4. S10 barcode
All untracked items (excluding those containing personal correspondence only) being sent to Europe and Worldwide destinations from the UK will now require an S10 barcode on the outside of the parcel. This links with the information on your customs declaration form. Sheets of adhesive barcodes are available to order in the usual way. For tracking and signature services the label barcode acts as the S10.
Customs authorities abroad are increasing their compliance checks, meaning incomplete or inaccurate CN22 or CN23 forms or missing S10 barcodes may result in additional charges or items being delayed, returned or seized.
5. VAT and customs duties
All sales of goods abroad are now treated as exports. They can be zero rated for UK VAT purposes.
The recipient may then have to pay customs or VAT charges and a handling fee in the receiving country before they can claim their parcel. These charges will depend on the country they are being sent to, the value of the item and whether it is a gift or commercial item. Letters, postcards and documents are usually exempt. Import VAT and duties will not be due on items from Northern Ireland to the EU.
Customs charges: items sent from Great Britain to the EU are subject to VAT and duties in the EU as follows:
Until 1 July 2021, commercial goods sent to the EU with a value between €10* and €150 may be subject to import VAT and may incur a handling fee in the receiving country.
Commercial goods sent to the EU over €150 may attract VAT, customs duties and a handling fee.
Excise duty: is chargeable in addition to customs charges for certain products (i.e. alcohol and tobacco).
*The VAT threshold may vary depending on the country. You can find out more here.
6. How taxes and duties can be paid
Franking services are provided on a Delivered Duties Unpaid (DDU) basis. The Royal Mail’s postal partners will collect the import VAT (and customs duty) from your EU customer prior to delivery, alongside a handling fee.
To find out more about the new mandatory customs requirements and VAT and customs duties, contact your Account Manager or see royalmail.com/brexit.