Export Good to Europe
Export Good to Europe
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Discussion

yellowtr

Original Poster:

1,189 posts

243 months

Wednesday 6th January 2021
quotequote all
Hi All,

I run a car spares business and we have supplied all round the world, which is great. Of course as of the 1st Jan 2021 EU became very different to sell too. I have been trying to get clear answers on some of the questions I have but at a loss, but I am sure the PH collective will know.

1) Commodity Codes. How explicit do they have to be? Sometimes there is not an exact match, say for example a bit of interior trim?
2) Country of origin? This isn't always clear as the part maybe used and in the case of the parts I am selling can be very. Is the car manufacturers origin acceptable? That saying, in the case of the new part in a manufacturers box with their logo on, the part itself maybe made in say Taiwan, but without me opening up the brand new box I don't know.

Any ideas of thoughts would be appreciated.

Thanks

Peter

Bertie2000

11 posts

57 months

Wednesday 6th January 2021
quotequote all
Hi Peter,

Sorry I can't help you but I can only commiserate as I have come up against the same issue, it now looks more complicated to supply parts to the EU than say the USA or Japan.

I have tried using the GOV.UK look up tool for tariff codes but it is a complete nightmare and no-way would I be able to list the country of origin and individual weight for each item.

Regards




yellowtr

Original Poster:

1,189 posts

243 months

Wednesday 6th January 2021
quotequote all
Bertie2000 said:
Hi Peter,

Sorry I can't help you but I can only commiserate as I have come up against the same issue, it now looks more complicated to supply parts to the EU than say the USA or Japan.

I have tried using the GOV.UK look up tool for tariff codes but it is a complete nightmare and no-way would I be able to list the country of origin and individual weight for each item.

Regards
Hi,

Glad I am not alone. A lot of our parts are sold via EBay and sometimes they go via their Global Shipping Programme, which is fairly straight forward, but most of the time I send via DHL/Fedex/UPS/TNT and this is where the problem is. As you have seen its a complete mess via the GOV.UK website, I am literally at a complete loss!

Bertie2000

11 posts

57 months

Thursday 7th January 2021
quotequote all
We have always just included copies of our invoice for customs, it now appears this is generated by the shipping company who insist on all the other information. I know the USA use the same tariff codes but we have never had to supply them. Very frustrating!


Ean218

2,023 posts

267 months

Thursday 7th January 2021
quotequote all
If its any help coming it from the opposite angle, we import from all over the world.

Most of the time commercial invoices are complete works of fiction, commodity codes are plucked out of the air and no-one ever checks anything....

jamoor

14,506 posts

232 months

Thursday 7th January 2021
quotequote all
Ean218 said:
If its any help coming it from the opposite angle, we import from all over the world.

Most of the time commercial invoices are complete works of fiction, commodity codes are plucked out of the air and no-one ever checks anything....
laugh

Once my friend who deals in used machinery needed a certificate of origin to export.

He just knocked one up in photoshop.

dartissimus

948 posts

191 months

Thursday 7th January 2021
quotequote all
we sell business to retail with a few EU customers each week.
I looked up the commodity codes for fabrics, which fall between numbers 8700 and 10400.

Dpd tell me that we cannot sell scarves to the ROI.

There is some sort of cutoff point at £130 value, so we will doubtless be having to send orders in 2 separate shipments.

If policed, i think that the jobs lost to Covid will be not enough to cover the new jobs required by this extra bureaucracy

dirky dirk

3,300 posts

187 months

Thursday 7th January 2021
quotequote all
jamoor said:
Ean218 said:
If its any help coming it from the opposite angle, we import from all over the world.

Most of the time commercial invoices are complete works of fiction, commodity codes are plucked out of the air and no-one ever checks anything....
laugh

Once my friend who deals in used machinery needed a certificate of origin to export.

He just knocked one up in photoshop.
Dead easy, probably quicker using ez cert
Than what your mate did

jamoor

14,506 posts

232 months

Thursday 7th January 2021
quotequote all
dirky dirk said:
Dead easy, probably quicker using ez cert
Than what your mate did
Is EZ cert free of charge?

DSLiverpool

15,658 posts

219 months

Thursday 7th January 2021
quotequote all
Just confirmed on the news if you import from outside the EU then export into the EU a 12% surcharge is applicable. Example was Debenhams closing in Ireland because of it (and being in liquidation)

rdjohn

6,763 posts

212 months

Friday 8th January 2021
quotequote all
Ean218 said:
If its any help coming it from the opposite angle, we import from all over the world.

Most of the time commercial invoices are complete works of fiction, commodity codes are plucked out of the air and no-one ever checks anything....
I don't know the answer, but agree that the probability of a lowly customs guy having all the codes to hand for every parcel, processed in a day, has to be minimal. Almost inevitably, they can only inspect / check a small proportion of stuff passing through.

You can only do your best within the parameters set by others.

VEIGHT

2,376 posts

245 months

Friday 8th January 2021
quotequote all
Totally agree it's a nightmare.

We have been working on this as we supply 100 stores in S Ireland and some companies in other parts of Europe.

We listed commodity codes for 10,000 + products however some shippers require just the first part of the code. All ready to go and then yesterday DPD have suspended shipments to EU as more information is now needed and they will update us asap!

I feel your pain!

anonymous-user

71 months

Saturday 9th January 2021
quotequote all
rdjohn said:
You can only do your best within the parameters set by others.
This. There are many things in life and government/EU form filling that don't neatly fit in the given boxes so do what you think is right.

If you import a car from Japan and break it for spares and ship some of those spares to the EU then I'd put country of origin as Japan as that is where you sourced the item from.

The fact the radio has say Taiwan on it is neither here nor there as each component within the radio will have come from other countries and each component is made of materials sourced from yet more countries.

Keep it simple. Good luck.

Ean218

2,023 posts

267 months

Monday 11th January 2021
quotequote all
DSLiverpool said:
Just confirmed on the news if you import from outside the EU then export into the EU a 12% surcharge is applicable. Example was Debenhams closing in Ireland because of it (and being in liquidation)
DS could you please stop spreading this as it is not true? It does not apply for most tariff codes, however it does hit clothing quite hard.

skwdenyer

18,464 posts

257 months

Tuesday 26th January 2021
quotequote all
Ean218 said:
DSLiverpool said:
Just confirmed on the news if you import from outside the EU then export into the EU a 12% surcharge is applicable. Example was Debenhams closing in Ireland because of it (and being in liquidation)
DS could you please stop spreading this as it is not true? It does not apply for most tariff codes, however it does hit clothing quite hard.
It is also important to understand the detail in this.

Prior to Brexit, you imported your goods at factory price (well, factory price + shipping etc.) and paid duty (if any were due - depends upon the type of clothing and the country of origin) on that factory price. This made up your "landed price."

You then re-sold to another EU country at wholesale price (perhaps 2x landed price), or retail (perhaps 4x landed price). No further duty to pay. (Those multiples are just placeholders BTW...)

Post-Brexit, if you're not smart, you pay duty coming into the UK as before, but now when you cross the EU border your customer (or you, if you're shipping on DDP terms) is hit for the same *rate* of duty but this time on the border-crossing price - that might be wholesale price (for a wholesale order) or retail price (for a retail order). Yes, it could be 12% of the retail price on top.

If you're paying attention, you'll note duty has been charged twice, at 2 different prices. This can be "fixed" if you're prepared to run a bonded / customs warehouse - but that's extra hassle and cost.

There isn't a magic bullet for this; to get back to the treatment you had before for your EU sales, you must import into the EU at that low factory price - the price when it cross the EU border sets the duty level. There's no other option. That means setting up an EU company (or, possibly, an EU branch), and splitting your stock. If you run on a bonded warehousing basis you can make cross-EU-border warehouse-to-warehouse transfers without incurring extra duty (if you can manage the hassle).

It is a copulating cluster. Successive Govts had the option of remaining in the Customs Union, but did not take it. So here we are.

jamoor

14,506 posts

232 months

Tuesday 26th January 2021
quotequote all
skwdenyer said:
It is also important to understand the detail in this.

Prior to Brexit, you imported your goods at factory price (well, factory price + shipping etc.) and paid duty (if any were due - depends upon the type of clothing and the country of origin) on that factory price. This made up your "landed price."

You then re-sold to another EU country at wholesale price (perhaps 2x landed price), or retail (perhaps 4x landed price). No further duty to pay. (Those multiples are just placeholders BTW...)

Post-Brexit, if you're not smart, you pay duty coming into the UK as before, but now when you cross the EU border your customer (or you, if you're shipping on DDP terms) is hit for the same *rate* of duty but this time on the border-crossing price - that might be wholesale price (for a wholesale order) or retail price (for a retail order). Yes, it could be 12% of the retail price on top.

If you're paying attention, you'll note duty has been charged twice, at 2 different prices. This can be "fixed" if you're prepared to run a bonded / customs warehouse - but that's extra hassle and cost.

There isn't a magic bullet for this; to get back to the treatment you had before for your EU sales, you must import into the EU at that low factory price - the price when it cross the EU border sets the duty level. There's no other option. That means setting up an EU company (or, possibly, an EU branch), and splitting your stock. If you run on a bonded warehousing basis you can make cross-EU-border warehouse-to-warehouse transfers without incurring extra duty (if you can manage the hassle).

It is a copulating cluster. Successive Govts had the option of remaining in the Customs Union, but did not take it. So here we are.
I think it’s possible to reclaim the duty without a bonded warehouse but it’s beaucracy and hassle.


The way out of it will be to zero rate almost everything which is what I think they said they will do?Did?

dirky dirk

3,300 posts

187 months

Tuesday 26th January 2021
quotequote all
jamoor said:
dirky dirk said:
Dead easy, probably quicker using ez cert
Than what your mate did
Is EZ cert free of charge?
well you have to pay for the certs the blank ones cant rcall how much they are

jamoor

14,506 posts

232 months

Tuesday 26th January 2021
quotequote all
dirky dirk said:
jamoor said:
dirky dirk said:
Dead easy, probably quicker using ez cert
Than what your mate did
Is EZ cert free of charge?
well you have to pay for the certs the blank ones cant rcall how much they are
Well there we go, he just got a copy of one online and photoshopped his info in laugh

Simpo Two

89,520 posts

282 months

Friday 29th January 2021
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By contrast if you wanted to sell Covid vaccine to Europe they'd probably collect it from your door by lunchtime, no paperwork at all...

Birkin1932

791 posts

156 months

Friday 29th January 2021
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You mean if you wanted to supply to somebody other than the EU