Brexit impact

for Transworld customers

Last updated 18th June 2019

As we approach 31st October 2019, the date when the UK will leave the EU, we will continue to monitor the Brexit negotiations extremely closely, and will engage with you, our customers, as appropriate, when we understand whether the outcome is to leave with a deal or no deal, and the subsequent impacts that will have across our industry. Our firm intention is to adapt our processes as needed and follow any relevant new legislation in full consultation with our customers.

In any scenario, we do not currently anticipate any interruption to our UK-wide logistics work, including same day and overnight deliveries. We also believe the impact on the courier fleet will be extremely limited, as only a small percentage of current couriers contracting with us are EU nationals.

 

Preparations for international shipments following Brexit

Consequences and outcome of Brexit negotiations remains unclear if there is a ‘No Deal’ scenario, meaning businesses are required to plan for unpredictable outcomes when it comes to international movements.
In the event of a ‘No Deal’ scenario, the most likely outcome is that all goods between the UK and Europe will be subject to customs clearance.

  • Congestion at ports and therefore the knock on to road linehaul services are widely predicted to be impacted for a significant period
  • Processing of deliveries which are sent via Air services may require an earlier collection due to additional processing time because of customs requirements
  • We don’t expect to see any travel disruption for our SameDay services in the South East of England but will monitor any areas where lorries are being held or are experiencing delays and will ensure our couriers are advised of potential alternative routes

 

Are we prepared?

CitySprint has been working to ensure that plans are underway to upgrade our capabilities and offer guidance to customers in how they are able to prepare for significant challenges which may impact their current operations.

  • Changes to shipping tools to enable the necessary customs regulations
  • Increasing deferment capacity
  • Identify Customs Agents which can increase our clearance capacity
  • Identification of Agents which can support and mitigate any changes in transportation permits
  • Training additional resource who can support DUTY and VAT collections
  • Provide access to support through global network of international trade specialists
  • Provide support to businesses to support their customer networks in customs clearance advice

How can you prepare?

In a ‘No Deal’ scenario, any EU shipments will now be the same as any shipments made to the rest of the world, which means all shipments will require customs clearance. CitySprint will therefore require customers to prepare the relevant documentation for each shipment.

All your staff need to be aware of the importance of accurately declaring shipments as delays could have significant impact on your recipients. When exporting goods from the EU to the UK, you can watch this short film produced by the Government which explains any changes in 10 steps. If you import goods from the EU, you can also watch this film.

Below are some key areas to consider for your shipments:

Commodity Codes

Commodity codes are used to classify the goods that you are shipping so they can be recognised by countries, including those in Europe, that are members of the World Trade Organisation (WTO). These codes ensure that there are no inconsistencies with product descriptions or any problems with language barriers.

  • Please ensure you are aware of your Commodity Codes for your goods – this will allow you to identify the correct rate of Duty and ensure you remain compliant with HMRC, and we can declare your shipments correctly. Basic Commodity Codes have 6 digits. However, we would recommend using the more detailed classification in the 8-digit format as it is recognised for both import and export gateways.

EORI (Economic Operator Registration and Identification)

If the UK leaves the EU without a deal, you’ll need to get a UK EORI number to continue trading with the EU after 29th March 2019.

  • You can apply for this number through the Government website – it’s free to apply and only takes a matter of days: https://www.gov.uk/eori
  • You will need to provide us with the number when we are making customs declarations on your behalf

Commercial Invoice

Ensure your staff are aware of how to complete a Commercial Invoice and Packing list – they might be needed for every shipment and will include the following information:

  • Goods description
  • Packaging details
  • Weight
  • Sales value and currency
  • International commercial terms
  • Country of origin
  • EORI number
  • Commodity codes

Duties and Taxes

Based on the Commercial Invoice value, you may need to pay for customs duties alongside the shipping costs, in a similar way you would when sending shipments to the USA.

If WTO terms apply then a value of DUTY will be payable on the goods you ship within Europe . You will need to decide if you are going to ship your goods with this already paid i.e. ‘Delivery Duty Paid’ (DDP) or request the recipient to pay these duties, ‘Delivered At Place’ (DAP).

Please ensure that your teams and clients are aware of these potential increased costs. Unpaid duties will result in delays at customs.

As we get more information on the likely outcome and impacts, we will continue to keep you updated with the latest information.

For any specific enquiries, please contact Brexit@citysprint.co.uk