Since January 1, 2021, the United Kingdom is no longer part of the EU customs union. This brings new regulations for cross-border trade in goods.
Despite the agreement that provisionally came into force on December 24, 2020, you can no longer ship your goods to the UK as before. Depending on factors such as the type of goods and their value, customs clearance is now required.
Even though simplified customs procedures are sometimes mentioned, there are several new rules you must follow when shipping to the UK. This simplified process only applies to goods manufactured within the EU. If you source your goods from outside the EU, you cannot use the simplified procedure.
Before deciding to continue or start shipping to the UK, you should familiarize yourself with these formalities and assess under which conditions this business area is worthwhile. Especially at the beginning, some challenges may arise. These are explained below.
🚨 Warranty notice:
Please note that Shipcloud cannot provide customs advice in the sense of legal consultation (RBerG). All information is therefore provided without guarantee.
Further information on customs can be obtained from the following official sources:
Customs: www.zoll.de
Chamber of Industry and Commerce: www.ihk.de
Federal Office for Economic Affairs and Export Control: www.bafa.de
1. Register for an EORI number
To ship to the United Kingdom, you need a British EORI number (Economic Operator's Registration and Identification) starting with “GB”. Only with this number can you import goods into England, Wales, or Scotland.
You can apply for this EORI number on the GOV.UK website.
If you also want to ship to Northern Ireland, you may need an additional EORI number starting with “XI”.
2. Pay attention to the new import VAT rules
Since January 1, 2021, new rules apply regarding import VAT, depending on the value of the shipment. These are based on a new threshold of £135.
Shipments up to £135
Shipments with a value not exceeding £135 (net, excluding shipping costs) are exempt from import VAT in the UK. However, as the sender, you must collect and remit UK VAT. To do this, you must register for UK VAT as an online retailer.
Shipments over £135
Shipments with a value exceeding £135 are not exempt from import VAT. In most cases, the UK recipient is responsible for paying import VAT and possibly other duties, unless you specify in your shop’s terms and conditions that you (the retailer) will cover these costs.
🚨 Please note: The above rules apply only to imports from your webshop shipped directly from Germany to the UK. Different rules may apply when using online marketplaces or UK-based fulfillment providers. More information is available on the GOV.UK website.
3. When you need proof of origin
The trade agreement between the EU and the UK allows for duty-free trade for goods originating in the EU or the UK. If you want to benefit from preferential tariffs, you must include proof of origin with your shipment.
Without this proof, customs duties may apply. Additional requirements (such as a REX number) may also apply if the shipment value exceeds €6,000.
More information on proof of origin can be obtained directly from customs authorities.
4. Complete customs documents correctly
To avoid shipping delays and unnecessary costs, you should ensure that all required information is correctly included in your customs documents.
With Shipcloud, the following carriers are currently available for shipping to the UK: DHL, UPS, Deutsche Post, GLS, PARCEL.ONE, and GO. In addition to the general requirements listed above, there may be specific requirements depending on the chosen carrier.
Currently, most customers use UPS and DHL for shipping to the UK. Additional information for these carriers is provided below.
Shipping with UPS to the UK
For shipments to non-EU countries, UPS requires the commercial invoice to be attached to the outside of the package in triplicate for customs clearance. Without the invoice, additional costs and delays may occur.
Instructions on how to correctly create the commercial invoice can be found in the related article.
Further Brexit-related requirements from UPS can be found here: https://solutions.ups.com/de-brexit.html
Shipping with DHL to the UK
When shipping with DHL, you must attach a customs declaration (CN23) and, if necessary, a commercial invoice in duplicate to the outside of the package. DHL also requires electronic transmission of customs-related data.
If you create the CN23 via Shipcloud, this data is transmitted to DHL automatically. Instructions for creating a CN23 via Shipcloud are available in the corresponding article.
Brexit-related information from DHL can also be found at: www.dhl.de/brexit