The Abbey Information Exchange: What you need to do to export to the EU.

New Trade Rules 2022. What you need to do to export to the EU.

Like many businesses, the reality of trading outside the Single Market and Customs Union was incredibly challenging for Abbey England and from the 1st January 2021, trading with Europe was thrown into turmoil. At that time, we could no longer confidently send goods to our European Customers. Goods were stopped at borders for not having sufficient or correct paperwork (despite following all the recommendations thrown at us) and we were bombarded with returned parcels. Needless to say, this wasn’t the start we were hoping for in 2021.

Despite these challenges, we worked with our carriers and the Department of International Trade to overcome these setbacks and a year on we are now successfully exporting to the EU.

We, therefore, felt it was important to share the updated EU trading rules with our customers. After all, the UK exported £251bn of goods and services to EU member states in 2020 (equal to 42% of UK exports). Final figures for 2021 are yet to be released but from January 2021 – November 2021, the Office of National Statistics reported £235.2bn in exports to the EU. A figure too important to ignore.

If your business is planning on exporting to the EU in 2022 or need to refresh on the rules and regulations, then our step-by-step guide will help to kick-start your exporting programme.

Getting Started

It is important to first familiarise yourself with the rules, duties, and restrictions for the goods you intend to export to the designated country. Gov.uk has a quick and easy tool to find this information out. Click here  to quickly establish the rules that apply to you.

To export your goods to the EU, you need to ensure you have a EORI number also known as Economic Operators Registration and Identification number. If you are exporting from England, Scotland or Wales, your number should begin with GB.  If you haven’t yet got a EORI number, you can register for one via GOV.UK here.

You must also check if your business needs to be VAT registered. If you’re not sure about this requirement, then here is one simple rule to follow. You must register for VAT if your VAT taxable turnover goes over £85,000.

Exporting

When you are ready to export, you need to ensure whoever is receiving your goods, can import them into that country. Currently, for B2B transactions, UK businesses’ require their customer's EORI number. If you are exporting to a private individual you do not require an EORI number, but ID numbers maybe required if exporting to Italy, Spain and Norway.

You then need to determine who will transport your goods and who will create your export declarations. Check if your nominated carrier will do this for you or alternatively, you can make your own declaration. For guidance in how to do this, please click here.

Classifying your goods

Although it sounds obvious, you need to certify your goods with a commodity code. This guarantees the correct amount of tax and duty is calculated in the destination country. If you are unsure what commodity code your sellable goods require, you can quickly check them using the Trade Tariff Service Tool here.

Invoicing 

All exports must be sent with the corresponding invoice. Carriage must be listed as a separate item and the invoice must also detail the commodity code and Country of Origin (COO) as depicted in the screenshot below. Failing to provide this information will most likely result in your goods being returned.

Country of Origin

Under the UK’s trade agreement with the EU – the Trade and Cooperation Agreement, UK companies can export their goods tariff-free, providing the goods are of UK origin. This is a great incentive for your overseas customers and potential buyers.

Tools and Help

Below you will find some useful links for additional help and guidance.

To contact your local Department of Trade (DIT) office, click here

Through your DIT office, you can access free advice and support, tailored information relevant to your export journey and find a range of internationalisation grants.

If you require any further detailed information regarding exporting to a specific country, click here.