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EU Imports – small to mid size
Following the recent rule changes, small UK exporters face challenges selling to small EU customers.
The small UK exporter should:
– get an EU VAT number
– get an EU fiscal representative- probably in the EU country where they have the most sales
– group shipments to Europe into “super shipments” containing several “mini shipments”
– sell the “super shipment” to the EU VAT number
– parcel carrier will break bulk into “mini shipments” at their facilities inside the EU
– your EU fiscal representative will prepare all statutory monthly and annual reporting on your behalf (VAT, profit, tax)
No need for a physical presence inside the EU. (Cost avoidance)
EU imports: UK SAP ERP
For mid-size UK exporters, already using SAP, they should consider switching on SAP “Plants Abroad”.
This functionality allows the trade between multiple EU VAT Numbers, without any physical presence inside the EU. (Cost avoidance)
Implemented successfully at ABB Supply Operations, much finesse is required in the setup.
It works great, once set up correctly.
Some Freezone Tips
Here is how the Swiss do it:
EDO: Entrepot Douanier Ouvert
Geneva Freeport:
https://geneva-freeports.ch/en/
Declaration of Origin for Customs Declarations
Some firms find themselves having to declare the “country of origin” on their invoices and customs declarations.
A guide:
1. Product breakdown You need to understand the composition of every SKU that you sell. Specfically parts, labour, overhead, margion. Origin of parts should be on your supplier’s invoices.
You will find these answers in your industrial engineering department.
2. Sufficient transformation
Otherwise known as significant transformation, thedefinition varies by customs tarrif code. Basically, are you adding “sufficent value” in the manufacturing process to warrant a change of country of origin.
Simple mixing, boxing, repackaging is never sufficient tansformaiton.
You will find these answers in your industrial engineering department.
EU imports : CE Mark
Starting on 16 July 2021, all CE marked products will need to have an EU address on the label.
This also applies to products sold on-line. The name and address must appear on the product or its packaging so that Customs and market surveillance authorities can have a contact person in case the product is suspected to present a risk.
If your importer or distributor cannot play that role, you will have to appoint an Authorized Representative in the EU or use a shipping platform to play that role.
