Brexit Implications


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Shipments from the UK to Ireland

The transition period has ended and from the 1 January 2021, the UK is now recognized and will be treated as a full non-EU country.

For customs purposes this will require all importers and exporters to lodge customs declarations with the customs authorities to cover all imports and exports into and out of Ireland (along with corresponding requirements on entering into and departing from the UK).

We therefore notify you of a change in our Incoterms effective, 1 January 2021.

Incoterms are key terms of international contracts of sale which tell both parties what to do with respect to carriage of the goods from buyer to seller, and who is responsible for export and import clearance.

New Incoterms known as DAP (Delivered at Place) now apply, effectively passing the responsibility for customs declarations to the importer.  As the Importer of Record, the customer is responsible for lodging customs declarations with the customs authorities including Customs Clearance, Import Duty and VAT, if applicable.

For any company importing, this will mean additional costs which unfortunately cannot be avoided.  It is therefore important to be as prepared as possible to minimise the risk of delays and to put in place all cost mitigation measures.

Companies also need to determine how they are going to submit customs declarations i.e. whether to manage this in-house or outsource.  It is important to become familiar with the customs requirements and to be able to provide the information that is required by the authorities.

Freight Forwarders

UFP is contracted to Kuehne+Nagel (K+N) for pallet and large volume consignments and DPD for smaller parcel consignments to Ireland, below 30 kilos.

To minimize transit and customs delays, you can appoint a customs agent to handle the customs formalities.  Our forwarders can manage the import process on your behalf or you can appoint your own agent.

Our forwarders will notify you in advance of any shipments but please note the following:

K+N

  • Upon dispatch of goods and prior to delivery you will receive an email notification.
  • You will need to provide your customs agent’s contact details or instruct K+N to act on your behalf to complete the import formalities.
  • If you elect K+N, you need to complete a letter of empowerment giving permission to K+N to act on your behalf. This is only required to be completed once.
  • You may elect to postpone the VAT payment at the time of clearance.

Postponed accounting for VAT is automatically available to all VAT registered Republic of Ireland traders. This scheme enables you to:

  • Account for import VAT on your VAT return; and
  • Reclaim VAT at the same time as it is declared in a return.

Further information is available at:

https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part07-provisions-relating-to-imports-exports/postponed-accounting.pdf

In this case, K+N will contact you or your appointed customs agent requesting your EORI number. This is short for ‘Economic Operators Registration and Identification number’ and is used by customs authorities throughout the European Union.

DPD

  • DPD will send you an email notification at the time of import requesting payment for any applicable import duties and t
  • DPD charge a brokerage fee of €5 +VAT for customs clearance.
  • VAT postponement is not available from DPD, therefore VAT is payable at the point of clearance.

Import Duty

Currently, the majority of items in our product catalogue are not subject to import duties. However, some commodity codes may be subject to import duties and restrictions.  Commodity codes classify goods for import and export so you can check if there is duty or VAT to pay.

Further information is available at:

https://www.trade-tariff.service.gov.uk/xi/commodities/3215907090?country=IE#export

 

If you have any questions or are unclear about the advice and instructions contained within this article, please speak to your account manager.