Post on 25-May-2020
How Fastway Can Help You
BREXIT
September 2019
Republic of Ireland
Your Brexit Delivery Partner
DISCLAIMER
The information is provided in good faith and derived from sources believed to be accurate and current at the date of publication, September 2019.
Information may be subject to change.
BrexitHow Fastway Can Help You
Your Brexit Delivery Partner
Brexit - How Fastway Can Help You
01 Introduction
03 Customs Clearance
05 What does it mean?
06 How will it work for you?
07 Fastway Brexit Services
08 Data Checklist
09 EORI Number
10 What Should You Do Now?
11 Sales Contact Details
Your Brexit Delivery Partner
Introduction
Following the triggering of Article 50, the UK will formally leave the EU on October 31st, 2019 unless an extension is sought and agreed.
While negotiations have been on-going between the UK and EU to formulate a withdrawal agreement at present no agreement is in place. Therefore the assumption being made by Fastway is that of a ‘No Deal’ Brexit.
The effects of Brexit on Irish exports and imports to and from the UK will depend on the terms of any potential Brexit deal itself. If the UK were to remain within the customs union1, so avoiding tariff barriers, the effects would be much more limited than if Northern Ireland and the UK leaves the customs union.
However, this appears unlikely and even in the event of a ‘Deal’ being struck, significant administrative burdens will be placed on all businesses, large and small.
The purpose of this document is to show you, our valued client, how Fastway can provide all of the necessary support to allow you to continue to trade with the UK hassle free.
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Current systemEntire UK in the EU customs union
Open border between Ireland and Northern Ireland
Checks on all agri-food imports but not on other goods from the UK
Open border between Ireland and Northern Ireland
Standards and customs checks on all agri-food imports and goods from UK mainland
EU backstop for Northern IrelandNorthern Ireland remains in customs union. Rest of UK does not.
Permitting open border between Ireland and Northern Ireland
Checks on all agri-food imports but not on other goods from the UK
Hybrid UK planEntire UK in the EU customs union, but only Northern Ireland stays in single market for goods
A visual guide to Brexit scenarios
Your Brexit Delivery Partner
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EU-UK customs union onlyEntire UK in the EU customs union, but not single market
Standard checks at land border
Regulatory checks on Checks on all imports from the UK mainland
Your Brexit Delivery Partner
Customs Clearance
The Retail and Distribution Sector are a key part of the domestic economy, North and South. It is the channel through which consumer goods are imported and provided to households and businesses on the island of Ireland.
Similarly it is the channel through which goods are exported abroad. This has been facilitated by the absence of borders and a common customs union.
However, this model is incompatible with a world where customs clearance is now necessary because the UK will leave the EU. There will now have to be some form of customs checks. Each different item in a lorry or container for example will have to be separately identified for customs to ensure that VAT where applicable and the correct tariff (or none) is applied.
The appropriate treatment will depend, not just on the nature of the product, but also where it was produced.
In the event of a ‘No Deal’ Brexit, all goods will then be subject to World Trade Organisation (WTO) tariffs especially those entering the EU. The UK government will be free to decide the rates they wish to charge EU states. Whether VAT or duties are applicable will depend on the transaction value of the item which includes the retail price plus insurance and transport costs.
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Current WTO Taxes and Tariffs
Value of €22 or less (incl. additional costs) » No duty or VAT
Value of greater than €22 but less than €150 » Vat payment only (23%)
Value of greater than €150 » Customs Duty & VAT payment VAT applicable on Customs Duty also
E.g., Duty on most clothing is 12%
Expected VAT and Duty procedures between the Republic of Ireland and Northern Ireland (including UK)
From Republic of Ireland to Northern Ireland and UK
From Northern Ireland and UK to Republic of Ireland
Business to Business Transactions (B2B)
Currently no VAT & Duty payment will be required by UK Government
» VAT & Duty if applicable is required by EU (subject to value of the item , see current WTO rates)
» Receiver Pays but not immediately
» Paid through VAT return
» VAT can be reclaimed
Business to Consumer Transactions (B2C)
Currently no VAT & Duty payment will be required by UK Government
» VAT & Duty if applicable is required by EU (subject to value of the item, see current WTO rates)
» Receiver Pays prior to goods entering free circulation
Note: This is in the event of a ‘No Deal‘ Brexit. These may be subject to change by the UK government.
Your Brexit Delivery Partner
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Your Brexit Delivery Partner
What does it mean?
» Once the UK departs the EU, customs formalities will apply resulting in a requirement for customs declarations.
» These declarations will be required for goods travelling in both directions. Customs declarations will have to be completed either in advance of departure of goods to and from the UK, at a bonded warehouse at an Irish Port or at a secure facility, i.e., Fastway Hub.
» While VAT and duties may not be charged on goods to and from Northern Ireland there will still be a need to complete the required declarations. In addition, VAT and duties must be collected and paid to either Irish Revenue and customs or HM Revenue and Customs (HMRC).
» Collecting required VAT and Duty. There are two options for the collection of required VAT and duties:
OpTION 1
VAT and duty collected by the consignor at the point of purchase in advance of the goods being dispatched to the consignee. This is known as ‘Delivered Duty Paid’ or DDP.
OpTION 2
VAT and duty collected from the consignee in advance of the goods entering free circulation. This would generally be collected by the carrier, i.e., Fastway through a link to an online portal.
» Once the charges are collected Fastway will release the goods into Free Circulation for delivery to businesses and customers. Fastway would then pay over all owed VAT and duties to Revenue within the required time-frame.
» Our delivery and returns rates will need to be adjusted due to Customs procedures required.
» Delivery times may be affected if goods are not cleared immediately.
» Goods may be subject to Customs spot-checks at our sortation hub to ensure declarations are completed correctly.
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Your Brexit Delivery Partner
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How will it work for you?
» Your local label solution, i.e., EzLabel, IFS, Metapack, etc., will add the required fields needed to allow Customs Declarations to be completed
» These fields will be mandatory; your delivery labels will be unable to print unless all required fields have be completed.
» This data will then be sent by your local label solution to Fastway.
» Fastway will then make the required declarations to Customs on your behalf.
» If and when VAT and Duty payments are applicable these must be paid to Fastway prior to collection of your parcels.
Available services from Fastway to allow goods to be cleared
Transit Declarations
Security Declarations
Import Declarations
Export Declarations
Simplified Declarations
Payment Platforms for Customers
Collection of VAT & Duty
Payment to Revenue
Returns Processing
Your Brexit Delivery Partner
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Fastway Brexit Services
Fastway will act as a ‘Direct Representative’ for all of our clients and will provide the full required customs suite on your behalf.
Fastway have successfully applied for and received the necessary EU customs authorisation in order to declare goods on our client’s behalf.
Data Checklist
The data that you need to provide to Fastway per item to allow goods to be cleared
Your EORI number* (see overleaf)
Consignee EORI number* (Business only)
Country of dispatch
Country of destination
Reason for export
Description of goods
Invoice value of goods in local currency
Applicable VAT
Applicable duties
Number of items
Commodity code
Country of origin of the goods
Weight of the shipment (Kg’s only; 500g = 0.5kg)
Your Brexit Delivery Partner
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* Economic Operators Registration and Identification system (EORI)www.revenue.ie/en/customs-traders-and-agents/customs-electronic-systems/eori-system.aspx
Your Brexit Delivery Partner
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EORI Number
If you are a trader who imports or exports goods into or out of the EU you will need an EORI number.
Further information about how to register for EORI is available on revenue.ie in the online services section: www.revenue.ie/en/online-services/index.aspx
In many cases your EORI number aligned to your existing Value Added Tax (VAT) number.
Based on Trade’s VAT NumberCountry Prefix
EORI Number
IE 1234567PA
You can check if you were automatically registered for EORI by accessing the Economic Operator Identification and Registration system at www.revenue.ie/en/online-services/services/common/register-for-an-eori-number.aspx.
You should insert your existing VAT number prefixed by ‘IE’ under ‘Validate EORI numbers’.
What Should You Do Now?
Customs, traders, and agents
1. Ensure that you register for your EORI Number, if you haven’t already done so. This is mandatory as you cannot trade without one.
2. Become familiar with assigning the correct commodity codes to your goods. Log on to www.revenue.ie/en/customs-traders-and-agents/index.aspx to refer to the ’Customs Traders and Agents’ section. There you will see how to classify your goods to the appropriate commodity code; this will determine the amount of duty you may be required to pay per item.
3. Speak with your local Fastway Sales Representative (see ‘Sales Contact Details’ overleaf), they will guide you through the process.
Your Brexit Delivery Partner
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Sales Contact Details
Republic of Ireland
Cork Tim Cronin (086) 602 8766 Tim.Cronin@fastway.ie
Limerick, Kerry, Clare Ed Allen (086) 021 3132 Ed.Allen@fastway.ie
North Dublin Adam McKnight (086) 602 9396 Adam.McKnight@fastway.ie
South Dublin Trevor Bailey (086) 386 6994 Trevor.Bailey@fastway.ie
Wicklow, Wexford, Waterford Tom Doyle (086) 702 9933 Tom.Doyle@fastway.ie
Kilkenny,Tipperary, Carlow Gerry Byrne (086) 414 7321 Gerry.Byrne@fastway.ie
Kildare, Laois John McCormack (086) 185 3949 John.McCormack@fastway.ie
Offaly, Westmeath, Longford Jimmy O’Connor (086) 043 5966 Jimmy.OConnor@fastway.ie
Galway, Mayo , Roscommon Frank Burke (087) 216 3008 Frank.Burke@fastway.ie
Donegal, Sligo, Leitrim Andy Davitt (086) 173 9222 Andy.Davitt@fastway.ie
Louth, Meath, Cavan, Monaghan Colm Jameson (087) 213 7974 Colm.Jameson@fastway.ie
Northern Ireland
Antrim, Armagh, Down, Fermanagh, Derry, Tyrone Robin Adair (073) 7840 9204 Robin.Adair@fastwayni.co.uk
Your Brexit Delivery Partner
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Your Brexit Delivery Partner
Your Brexit Delivery Partner