After Brexit, how do the UK and EU trade?
Brexit has been in the news for long, and there are still some implications for the companies, for which the trade between the UK and EU was the biggest part of their profit. As the numbers show, 37% of British companies fear they will have to close before 2027. European Union funds have been invested into a special campaign, aiming at helping companies affected by Brexit. Let’s check how the UK and EU trade after Brexit. What should companies know to reopen to this market?
A new system of goods transportation – GVMS
Brexit has caused significant changes to the rules of goods transportation. To make the system more efficient, HMRS established a completely new system, called GVMS (Goods Vehicle Movement System). Custom agents know everything about the system, so contact them if you have any doubts about it.
It’s based on the GMR Goods Movement Records, including all the data that describes the vehicle with imported or exported items. The system keeps all necessary information together, and without the GMR presented to the carrier, either it’s a ferry or a shuttle train, the driver won’t be able to cross the border.
The aim of the control is to make sure all the goods in move are present in the declarations, and when something is missing on the declaration, the vehicle may be turned back.
To make sure you deal with the new system, find a recommended OTS Broker, who will make sure all the documents are correct.
What is a smart border?
All the customs procedures may take a lot of time, resulting in long queues at the border, and delays in delivery. To shorten the time, a smart border system was introduced. It’s also aimed at the automation of all the processes of import or export clearance.
Thanks to the smart border system, drivers receive special barcodes that categorise the vehicles into those with heavier goods and passenger cars.
There are a few essential elements for crossing the smart border: a special logistics envelope, comparing and tagging declarations, categorising them into the appropriate queue, and controlling inbound and outbound traffic.
Even though the smart border was created to avoid congestion, and to simplify import and export clearance, there still may be doubts about how to prepare for your first custom clearance. In case of any questions, custom agents can clarify the way the system works.
Commodity codes and EORI numbers – what are they?
If you want to trade with the UK, either you want to move goods into or out of this country, an EORI (Economic Operator Registration and Identification) Number is required from you. In order to keep track of your exports and imports, HMRC uses this number to identify your business.
The code for the companies located in Great Britain will look like this: GB112233445000 (the first 9 digits standing for the Member State of registration and a VAT number). Apply for the number if you are planning to trade with the UK, or ask customs agents to help you go through the process.
Another important number is the Commodity Code, which gives a clear description of the goods. A 10-digit code is used when importing goods, whereas an 8-digit code is used during export clearance.
All the imported or exported goods must be declared, using appropriate commodity codes. Don’t forget about a proper tariff classification of the products.