BREXIT - Fastwayfastway.ie/images/brexit/Brexit-Plan---How-We-Can-Help-You.pdf · Your Brexit...

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


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


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.

Brexit - How Fastway Can Help You01

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


Brexit - How Fastway Can Help You 02

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


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.


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.




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.




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



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)



* Economic Operators Registration and Identification system (EORI)www.revenue.ie/en/customs-traders-and-agents/customs-electronic-systems/eori-system.aspx



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.



Sales Contact Details

Republic of Ireland

Cork Tim Cronin (086) 602 8766 [email protected]

Limerick, Kerry, Clare Ed Allen (086) 021 3132 [email protected]

North Dublin Adam McKnight (086) 602 9396 [email protected]

South Dublin Trevor Bailey (086) 386 6994 [email protected]

Wicklow, Wexford, Waterford Tom Doyle (086) 702 9933 [email protected]

Kilkenny,Tipperary, Carlow Gerry Byrne (086) 414 7321 [email protected]

Kildare, Laois John McCormack (086) 185 3949 [email protected]

Offaly, Westmeath, Longford Jimmy O’Connor (086) 043 5966 [email protected]

Galway, Mayo , Roscommon Frank Burke (087) 216 3008 [email protected]

Donegal, Sligo, Leitrim Andy Davitt (086) 173 9222 [email protected]

Louth, Meath, Cavan, Monaghan Colm Jameson (087) 213 7974 [email protected]

Northern Ireland

Antrim, Armagh, Down, Fermanagh, Derry, Tyrone Robin Adair (073) 7840 9204 [email protected]


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