Customs Brokerage: Key Terminology Explained

As of 1 January, the rules surrounding the way we trade and transport goods across borders have changed once again. We know that our sector needs guidance on what this means for businesses and understand the process of moving goods across borders can often be complicated, especially when it comes to understanding the jargon and paperwork involved.

Here, our team of brokerage experts call upon experience of working with haulage and logistics businesses of all sizes to explain some of the key terminology, from EORI numbers to GVMS and SSDs.

EORI Number

An EORI number is made up of a country code, to show where the organisation or individual is registered, as well as a unique code or number. You’ll need an EORI number (starting with GB) to import and export goods to the EU. Both the seller and buyer of the goods will require an EORI number. You’ll need a VAT number to apply for an EORI, you can do this online?here.?

Commercial Invoice

This export document serves as legal evidence of a sale transaction between the buyer and seller of goods. A commercial invoice provides all the necessary information for customs clearance and helps in the determination and assessment of duties and taxes payable. Having this in place ensures minimal issues at the border, and a more simplified process along the way.

Commodity Codes

It is the seller’s responsibility to provide the correct commodity codes for the goods being moved. The codes for GB imports consist of ten digits whereas export codes consist of eight digits.

Customs Procedure Codes

Customs procedure codes are required to explain the reason behind the movement. For example, if the goods are being imported/exported for sale, moving for repairs, replacements, long-term hire loan or hire.?

Arranged Incoterms

Incoterms are a series of pre-defined commercial terms published by the International Chamber of Commerce relating to international commercial law. There are 11 internationally recognised rules, which define the responsibilities of the sellers and buyers. For example, who is responsible for paying for and managing the shipment, the insurance, documentation, customs clearance and more.

Import/Export Declarations

A customs declaration is an official document that lists and gives details of the goods that are being imported or exported, including weights and dimensions as well as any additional notes such as health certifications or restrictions.

Safety and Security Declarations (ENS/EXS)

Safety and Security Declarations (SSD) are used by border authorities to analyse the potential risk caused to their territory by goods crossing their border. It is not about the duties and taxes. There are two types of declaration – Entry Summary Declaration (ENS) for goods leaving GB to enter the EU and Exit Summary Declaration (EXS) for empty vehicles leaving GB to enter the EU.

Goods Vehicle Movement Service (GVMS)

As of 1 January 2022, GVMS is now required for every movement coming into and leaving GB. If you’re importing or exporting goods in 2022, you will require a Goods Movement Reference Number (GMR) to move goods through a GVMS port. This includes being able to board the ferry or Eurotunnel shuttle, cross the EU/UK border, or clear goods through customs. You can obtain a GMR?here.

Port Passes

Port Passes are a vital aspect of customs procedures, having this shows that all your customs processes have been completed prior to your arrival at the port and identifies the personnel authorised to access it. You’ll require a different port pass for each port, for example, PBN for IE, Envelope for France and Port Base/Destin8 for the North Sea.

Need help?

If you’re having problems with GVMS or need assistance with moving goods across borders, our team of customs brokerage experts can support you with the process and even complete declarations on your behalf. With our online and fully managed services we can provide your business with the tools it needs to keep goods moving in 2022 and beyond.

Find out more:?www.rhacustoms.co.uk