The withdrawal of a Member State from the European Union has brought enormous challenges to the transport sector. The European Union itself did not have such a scenario envisaged. For simplicity, we’ve summarised the key information, so it’s easier for you to understand the impact on your business.
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Updates to this page:
20 January 2021
What has changed in your shipments to the UK from 2021?
The European Union-United Kingdom Trade and Cooperation Agreement.
Continued from the news “Brexit has come into force. What now? What changes for my submissions?”.
The Trade and Cooperation Agreement – in force since 1 January 2021 – guarantees mutual access for products to both markets without quotas or customs duties, but also defined a series of trade barriers, such as more customs controls and bureaucracy in economic transactions. And consequently the increase in costs in commercial transactions. All similar to economic relations with other non-EU countries, such as Switzerland or Morocco, for example.
In this agreement, the following stands out:
The EU and the UK now form two separate markets and two separate regulatory and legal spaces.
This means that there are now barriers to trade in goods and services, the mobility of people and investment flows between the European Union and the United Kingdom.
In particular, and with regard to trade in goods, it should be borne in mind that:
Content published until December 2020
1. What is Brexit
The term Brexit represents the process in which the United Kingdom leaves the European Union (British + exit).
This process was triggered after a referendum in the UK in June 2016, in which 48.2% of voters voted “Yes, we want to stay in the EU” and 51.8% voted “No, we don’t want to stay in the EU”. From the results, we realize that the British population is extremely divided about whether to remain. Young people and people in cosmopolitan areas like London tended to vote “Yes, stay in the EU”, while people in rural and older areas tended to vote “No. Leave the EU”.
Some of the reasons given in favor of the United Kingdom’s exit were
After the vote, with the result of “leaving the European Union”, it was proven that many Britons felt deceived and manipulated in their voting intention, due to false or adulterated arguments used by politicians supporting leaving the EU.
This revolt resulted in several petitions, petitions and demonstrations calling for a 2nd referendum. One of the requests with the most adhesion had 6 million signatures. Even so, the request for a 2nd referendum was not acceded.
(It was later proven that there was voter manipulation, conducted by the Cambridge Analytica agency, via Facebook, through the creation of millions of fake profiles with posts inducing voting to leave the EU.)
However, the desire for the United Kingdom to leave the European Union is not something new. The United Kingdom threatened to leave the European Union for the first time in 1975. That year there was also a referendum, in which the result was 67% in favor of “Yes, remain in the EU”.
Administrative procedures
Customs – get the EORI number
On the customs issue, find out about EU legislation on trade practices with third countries, such as the US and China. That way you will already be familiar with the usual customs rules and procedures. Find out more on the website of the Tax and Customs Authority, in Brexit.
One of the processes to take into account is to apply for an EORI number for your company. EORI stands for Economic Operator Registration Identification, that is, it is a Registration and Identification number for Economic Operators. This registration number is required for businesses that trade goods between your country in the EU and other countries outside the EU.
Companies that already trade with third countries already have this number. Now, the United Kingdom will be part of this list of countries.
You can apply for an EORI number through the Tax and Customs Authority website.
This number will be required for the issuance of customs declarations, and you will have to communicate it to Alfaloc when you request to send it, from the moment the UK becomes a third country.
(Please note: as long as there is no agreement approved between the EU and the UK, the UK remains part of the Union, so EORI is not yet necessary.)
Customs – get the TARIC code
Another process you can prepare is to find out the TARIC number of your products, so that the description of your products is as clear as possible.
The TARIC number is a code that allows customs to identify what type of product is moving. The customs duties to be applied depend on the type of product concerned, i.e. they depend on the code.
It is not possible to export or import goods between the EU and third countries (of which the UK will be a part) without this code being defined.
There are 21 sections of codes, subdivided into numbers.
You can search for the TARIC number on the European Commission’s website.
Commercial Invoice and Proforma Invoice
Similar to the need for a commercial invoice or proforma invoice with shipments to third countries, the same document will also be required with the United Kingdom, once the agreement is in place.
You can get a proforma invoice in your myalfaloc when finalizing the waybill. The commercial invoice will need to be issued by your company.
You can learn more about commercial invoice and proforma invoice in Shipping Documents.
Restriction/prohibition of assets
As for the restriction or prohibition of importing certain goods into the EU or exporting such goods outside the EU, these conditions will apply to the United Kingdom as they apply to other third countries.
If your company sells live animals, animal products, certain plants and plant products (such as wooden packaging), radioactive materials, waste or certain chemicals, remember that the European Union imposes restrictions and even bans on trade relations with third countries that include these types of products.
If the United Kingdom is considered a third country, your company will have to adopt the same care in these transactions as it has with third countries.
For documents required for shipping to third countries, please visit Documents for Shipping to third countries.
You can learn more on the Tax and Customs Authority website.
We remind you that we are available 24 hours every day via phone and on weekdays here in the chat.
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