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CUSTOMS CHANGES PART 1 : Commercial invoice 

Goods currently move freely between EU member states as part of a customs union established under EU legislation through the UCC. Today, UK businesses trading with the rest of the EU are not subject to mandatory customs controls and there is no import duty to pay. Businesses do not have to submit any customs import or export declarations. However, for VAT purposes, UK businesses must declare acquisition VAT on their purchases from the EU, which is accounted for through their VAT Return.

Certain goods are subject to Excise Duty. This is charged on the importation and manufacture of alcohol, tobacco and oils. These goods are currently free to move between the UK and the rest of the EU with Excise Duty suspended, subject to certain conditions being met and vice versa.

Without a withdrawal agreement when the UK exits the European Union at 11.00pm GMT on 31st October 2019, traders may become subject to additional administrative requirements including creating a commercial invoice for their goods moving between UK and EU. What is considered today as Intrastat transactions, will become 3rd country transactions or Extrastat for the EU.

An invoice; shipping, customs, pro-forma or commercial is necessary to process importing goods in the EU according to Art. 145 of the Regulation 2015/2447 of the Union Customs Code Implementing Act (UCC IA)

A commercial invoice form is used for all shipments containing non-documents. The commercial invoice is the primary document used for importation control, valuation, and duty determination. This document identifies the products being shipped.

There are mandatory field to be completed with the HS code but also the Incoterms, country/territory of origin or manufacture of the goods, customs value etc.

Required fields:

– Invoice Number/ Unique identifier

– Exporter and Importer information

– Exporter VAT identification Number

– Origin of the goods

– Item name and Description

– Quantity

– Invoice Value including the currency

– Incoterms 2010 followed by name place or soon to be released, Incoterms 2020 (INCO)

Incorrect or missing information is the most common cause for customs delay, always be accurate in your declaration. State as much as you know about the goods being exported. Make sure your documentation clearly communicates the reason for your export.

For any additional Brexit support, do not hesitate to contact our advisory team: sttas-eu-adv@sttas.com

Salima Gasmi