It’s been some time since Brexit, yet the change of the Customs Duty requirements on goods moving between the UK and EU may lead to serious complications in case of any failure. The worst thing is that such pitfalls may be found months or years after the freight. That’s why it’s crucial to keep all the rules under control. Take a look at the possible reasons why UK import declarations can go wrong.
#1 Lack of information
To ensure fast and successful freight of goods, there is a number of information you should include in your Customs Declaration Form from UK to EU, and the other way round too. If any required information is missing, or is invalid the movement of the goods will be stopped until all the information is provided. That means a disaster for your company, due to delays and loss of money.
One of the most frequently omitted information is the agreed terms of delivery. If you feel incompetent in filling in all the documents, it’s highly recommended for you to use the service of an OTS Broker, who offers a full range of customs clearance services, such as above mentioned customs declaration, or import declaration form in the UK, and many more.
#2 Wrong customs classification
Similarly to the wrong information on the goods, such as their number, choosing incorrect Customs Classification category will stop the goods from crossing the border.
The reason for that is simple, as it will usually lead to an incorrect amount of duty paid. No matter what your situation is, either you are overpaying or underpaying, it is not ideal. Overpayments mean you lose your money, while underpayments lead to penalties.
Make sure that the goods on the invoice have a clear description, as far as the Customs Declaration Form from UK to EU is concerned. Include the purpose of use, the materials and characteristics of the products to get the correct classification for your items.
#3 Incorrect value
Establishing the values of your imported items may seem pretty obvious to you, as you think about their selling price. The problem arises with inclusive prices, giving the cost of delivery for instance, which is excluded from the Customs Duty when completing import declaration form in the UK. Determining the real value of the items is crucial to prevent fraud suspension due to incorrect revenue.
#4 Misunderstandings of Incoterms
You are an importer, which means you’re operating on Delivery Duty Paid (DDP) terms. As a customer, you should be interested in Delivery at Place (DAP) terms. Common mistakes that both sellers and customers make of the terms, results in incorrect declarations. Are you supposed to complete the import declaration form in the UK, or Customs Declaration Form from UK to EU?
Is your company located in the UK? DAP terms give you the consent to sell items to EU countries. You will have to face customs duty and VAT problems when using DDP terms to enter into a sales contract with EU customers . As a result, you may expect delays, and difficult relationships with your customers.
#5 Duty-free misunderstandings
There are goods which are duty-free, according to the Trade Cooperation Agreement (TCA) between the UK and European Union, and Free Trade Agreements (FTAs). To get into the category of duty free product, it must comply with rules of origin set in the agreements.
The goods must originate or have preferential origin in the importing country, yet depending on the nature of the goods. If the certificates of origin are invalid, serious penalties may come as a result.
