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FAQ

The most important questions and answers around the subject of Brexit. Continually updated for you!

We currently anticipate Brexit to take place on 31st January 2020 (subject to the conclusion of the ongoing legal objection).

This is the deadline by which the “no-deal” Brexit scenario would take place, one lacking a managed withdrawal. This would mean that UK & EU businesses will have to apply customs, excise and VAT procedures to goods traded between the UK & EU in the same way as for other non-EU countries today.

Your organization may anticipate some/ all of the following points as a consequence of Brexit:

  • Additional Customs checks and additional documentation
    • See paragraph #6 on documentation
  • Additional costs
    • Schenker will seek to recover costs directly associated with the consequences of a no-deal Brexit.
  • Increased transit times
    • Delays are currently unpredictable. Ireland may be affected as well, though it is too soon to predict the exact effects.

Be aware that Brexit regulations could change at any time. Here are some points you should keep an eye on:

  • Changes to easements (simplifications) being offered by the UK Government
  • Do you need Customs Guarantees, or uplift to your current guarantee amount i.e. deferment / TAN
  • Impact of the use of incoterms - the terms that are most suitable for your future trading conditions i.e. consider if EXW (Export) or DDP (Import) is still appropriate.

The following steps will help you prepare to minimize possible Brexit ramifications:

  • Review your business, if you have not already done so, to understand what impact Brexit will have on your EU supply chain.
  • Keep up to date with the political situation regarding Brexit and the effects it will have on your Brexit planning.
  • Share client/consignee Proof of Attorney with Schenker, or generate in designated local customs system as soon as possible (this is a legal requirement in many Countries)
  • Make sure your partners are providing the required information on their commercial documentation to allow a Customs declaration to be made.
  • Review your own commercial documentation and ensure it provides the information required to allow a Customs declaration to be made.
  • For the UK, check that you have the correct authorizations in place to allow you to complete the declarations that you require, for example - if you plan to use Temporary Simplified Procedure (TSP)
  • For IE into the UK, check what UK procedures your Importer is intending to use.
  • Advise Schenker of Authorizations you have in place with Customs.
  • Advise Schenker of potential Modal shifts that you are considering i.e. from the road to airfreight.
  • Speak to your trading partners about the information they supply on their documentation (relevant to Customs requirements).
  • Advise Schenker if you intend to use postponed VAT accounting to account for your VAT in a hard Brexit scenario.

To make the transportation of goods as smooth as possible we recommend you keep the following information on your goods at hand:

Value of Goods:
The value of the goods is necessary to determine the level of customs duty applicable. The value is also used for trade statistics. You can determine the value of your goods by using one of six ‘methods’. It is important to note that you must try Method 1 before going on to Method 2 and so on. Method 1 is based upon the transaction value. This is the price paid or payable by the buyer to the seller for the goods when sold for export in accordance with specific rules. These rules, along with the other methods of valuation, can be found in the World Trade Organization website here.

Prohibited or restricted Goods:
Prohibited Goods are not allowed to be imported into countries. Restricted Goods will require a special license for import. Licenses are often needed for the import and export of military and para-military goods, dual-use and technology, artworks, plants and animals, medicines and chemicals.

For more information, please see the current guidance on prohibited and restricted goods, Import and Export Licenses on your local Customs or Government website.

Origin of the Goods
Establishing the origin of the goods will help to identify whether they qualify for lower or nil customs duty. There are two main categories of origin in the rules:

  • Goods wholly obtained or produced in a single country
  • Chemicals whose production involved materials from more than one country

Once you have clarified the origin of the goods, you can find out if they qualify for preferential treatment under a tariff preference scheme.

We recommend you keep the following documents at the ready:

T1/T2 documents:
T1 (= non-EU character) means non-Community goods; however, in the EU to the destination customs office / an authorized consignee to be transported.

T2 relates to Community goods (= EU-character) which are to be transported in non-EU countries on the European continent with the CTP connected countries to the destination customs office / authorized consignee.

HS Classification Code:
Commodity codes classify goods so you or your Broker can fill in import declarations. Classifying your goods correctly means that you:

  • Pay the correct amount of duty.
  • Know if duty is suspended on any of your goods.
  • Know if any preferential duty rates can be applied.
  • Know if you need to obtain an import or export license.

EORI Number:
Both Importer and Exporter will require an EORI number, the exporter will be required to produce an invoice clearly showing both EORI numbers, the value, commodity codes and countries of origin for all the goods.

The EORI number demonstrates that you or your Customs representative are registered to submit relevant declarations to the relevant Revenue & Customs systems.

Movement or Master Reference Number (MRN):
The MRN is issued after the full customs declaration is made; you will need to supply this to your carrier prior to setting off on the journey.

Why: Our drivers need to carry proof that a customs declaration has been made, so they’ll need both an EORI and an MRN number for each customs declaration submitted.

Transitional Simplified Procedures (TSP):
Your Agent/Carrier will need to clearly document if you are registered to allow deferred settlement of duties, or do you anticipate payment on arrival (potential to involve some delay in processing).

Duty Deferment Scheme or Flexible Accounting System (DDS/FAS):
Are you registered to facilitate payment of duties where applicable?

Product Conformity, Safety & Standards:
Where relevant classes of goods are involved, are you now using UKCA marking to indicate conformity and providing Company name address on accompanying documentation. In some cases, e.g. medicines, cosmetics, chemical companies may need to appoint new UK representatives.

Type approvals:
Is your product UN-ECE type approved?

Goods in Transit:
Will your goods cross the UK to/from IE? If so, have you prepared to submit Transit Accompanying Document (TAD, sometimes also known as EAD or Export Accompanying Document)?

ATA Carnet (Admission Temporaire):
Goods imported temporarily into the UK require the ATA Carnet

If the importers of your goods apply for, or already have, TSP (Transitional Simplified Procedures) this can mean that delayed supplementary Customs declarations and Import duties can be requested and hence the goods may be afforded a more rapid transit through the Border Crossings.

Yes, it is possible at the moment. The Money Back Guarantee associated with premium shipments will be temporarily suspended around the time of Brexit.

Yes, possible at the moment. We will, however, temporarily suspend every time definite option e.g. Fix Day/Fix Day To Be Agreed/Fix10/13 Delivery & Schenker SYSTEM Premium for System freight and Fix Day delivery for Direct freight around the time of Brexit.

If you are a UK customer, then the necessary SSD declaration may be required for arrivals in EU post no-deal Brexit.

‘Despite the uncertainty, a ramp-up to Brexit has been foreseen since the end of last year. The preparations made by the Brexit Taskforce are designed to ease the transition post-Brexit. The team are covering a wide range of themes within four main business areas: Customs, Operations, Communications and Commercial. In order to help us to prepare we’ll need to understand your requirements in more detail. Your account contact will be your main point of contact in this respect.’

We’ve investigated this in the main trading countries with the UK and whilst we’ve identified a number of contingency options, we foresee associated service and cost implications. We’ll need to ask you to guide us regarding your willingness to switch routings and accept the associated costs/service risks before any changes are implemented.

Our latest information suggests that shipments leaving the EU before a hard-Brexit, arriving after to the UK should proceed as an Intra-EU move (i.e. no change). Those leaving the UK and arriving in the EU over the same period will require comprehensive papers including Invoice, Bill of Lading, Commodity Code, Certificate of Origin/Conformity, etc. If in doubt we highly recommend that you check with your Schenker contacts if the necessary papers are completed and available. Failure to adhere to the requisite Customs procedures may lead to delay & further cost being incurred by you.

The main points of contact in the first instance are our (Key-) Account Managers. They have been updated with all the latest developments regarding Brexit, and where particular expertise is needed, they will reach out internally to our team of Customs specialists

All information is supplied without liability!