{"id":11690,"date":"2021-01-21T13:15:29","date_gmt":"2021-01-21T21:15:29","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/?p=11690"},"modified":"2021-01-21T13:15:29","modified_gmt":"2021-01-21T21:15:29","slug":"brexit-shipping-fulfillment","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/blog\/shipping\/brexit-shipping-fulfillment\/","title":{"rendered":"What Does the New Brexit Deal Mean for  Shipping and Fulfillment?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">On December 24 2020 after years of failed negotiations, the UK and European Union(EU) finalized a trade deal that went into effect at the beginning of this year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This zero-tariff, zero-quota deal is seen as a largely positive outcome, however the new requirements that were agreed upon are still expected to cause some significant issues within the transportation industry as the current policies and regulations are facing major changes that will require companies to adapt to the new rules that were agreed upon.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This will be most felt in international shipping and customs brokerage, so it is important to understand the changes and how they will affect businesses<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">What is Brexit?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As of January 1, 2021, the transition period with the EU officially ended, and the UK will now operate an external border as a sovereign nation. The UK and EU have released a <\/span><a href=\"https:\/\/www.gov.uk\/guidance\/transporting-goods-between-great-britain-and-the-eu-guidance-for-hauliers-and-commercial-drivers\"><span style=\"font-weight: 400;\">200-page manual<\/span><\/a><span style=\"font-weight: 400;\"> that outlines the rules and regulations for transporting goods between the UK and the EU. Additional regulations will be introduced in April and July 2021.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The UK leaving the EU is fundamentally changing how trade with the EU and other strategic partners around the globe will be handled. This has caused a seismic shift of the shipping landscape of Europe \u2014changing how goods move by all modes across the entire continent. Supply chains are likely to be significantly impacted significantly by the Brexit deal until companies are able to fully adjust to the changes that were implemented on Jan. 1, 2021.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Who Does Brexit Effect?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Brexit will affect all EU businesses that trade goods with the UK and vice versa.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The three most significant shipping effects of Brexit are the following:\u00a0\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Goods originating in the UK destined for other EU markets and countries that have an agreement negotiated with the EU.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cargo entering the UK from EU nations and countries that have trade agreements with the EU.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shipments from markets outside the EU that currently pass through the UK that are destined to other EU markets (and vice versa)<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">What Does the Brexit Deal Mean for Shippers?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Existing tariffs will be eliminated on the trade of goods moving between the UK and the EU starting on January 1, 2021, depending on where the shipments originate from. Companies and carriers will likely have to deal with more paperwork and administration when shipping between the UK and the EU. This will lead to increased costs and adjustments across supply chains. Customs clearance will now be required for all goods moving between the UK and the EU, including return shipments. You will have to declare the goods you are sending by completing a commercial invoice as well as follow the revised VAT rules.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">You can read a full explanation of the new Brexit rules <\/span><a href=\"https:\/\/www.gov.uk\/transition\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Learn The Basics<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Start with the following basic steps to keep your goods moving as smoothly as possible.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Register for an EORI Number in the UK and EU.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An Economic Operator\u2019s Registration and Identification (EORI) number will be required to continue trading between the UK and the EU.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">VAT Registration<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shippers selling goods valued at or below \u00a3135 into the UK will be responsible for collecting and paying UK VAT(value added tax) for these shipments. The VAT amount must be collected at the point of sale and paid to <\/span><a href=\"https:\/\/www.gov.uk\/government\/organisations\/hm-revenue-customs\"><span style=\"font-weight: 400;\">HMRC (Her Majesty&#8217;s Revenue and Customs)<\/span><\/a><span style=\"font-weight: 400;\"> through the UK VAT registration. For goods sold into the UK valued above \u00a3135, the importer will remain responsible for paying the UK VAT. This can be paid by the importer via postponed VAT accounting or through the customs declaration. If your UK business is importing on its own name into the EU, you need to be VAT registered in the EU. It is recommended you do this in the country of clearance.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Origin of Goods<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To benefit from preferential tariffs, the products you are shipping must originate in the UK or the EU. You will need to include proof of origin of goods with the commercial invoice or other commercial documentation (excluding a bill of lading). You can self-declare the origin of goods for the first year.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Appoint an Importer of Record (IOR)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The IOR is responsible and liable for your customs declarations. For UK businesses exporting to the EU this can either be an EU-based subsidiary if they are part of the transaction or an EU-based customs broker.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Agri-Food Consignments<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Agri-food consignments will require health certificates and undergo sanitary and phytosanitary controls at border inspection posts. They will still be inspected, but at other locations. It is your responsibility as the shipper to check the rules and regulations and be responsible to know if your goods will require inspection.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Are You Prepared for the New Brexit Deal?\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Experts predict that as relationships become more stabilized, new information surrounding trade agreements and tariffs will become more readily available. It is critical to prepare now and begin post-Brexit planning about how to get your shipments across borders.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite the new trade deal being in effect, most businesses are unprepared for the changes that took place on January 1, 2021. Challenges like navigating new IT systems, scaling up for more paperwork, and revising supply chains will be key factors for success in the months ahead. Adding another layer of complexity, the pandemic has produced unexpected setbacks. COVID-19 has impacted available capital and has slowed Brexit preparations, preventing businesses from investing and establishing new customs processes to protect themselves against disruption to supply chains.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Bottom Line<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Brexit guidance issued by the UK government is to \u201c<\/span><a href=\"https:\/\/www.gov.uk\/guidance\/appoint-someone-to-deal-with-customs-on-your-behalf\"><span style=\"font-weight: 400;\">get someone to deal with customs for you.<\/span><\/a><span style=\"font-weight: 400;\">\u201d If you partner with an outside organization to assist with Brexit-related changes, be sure to choose one that specialises in international shipping and customs brokerage processing. An experienced third-party logistics provider (3PL) can provide the support your business needs during this transition period and beyond.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">If you are seeking logistics support and help navigating international shipping we would love to hear from you. You can read <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/services\/\"><span style=\"font-weight: 400;\">DCL\u2019s list of services<\/span><\/a><span style=\"font-weight: 400;\"> to learn more, or check out <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/resources\/integrations\/\"><span style=\"font-weight: 400;\">the many companies we work with<\/span><\/a><span style=\"font-weight: 400;\"> to ensure great logistics support. <\/span><a href=\"https:\/\/michaeljbrumm.com\/dclcorp-phase2\/company\/get-started\/\"><span style=\"font-weight: 400;\">Send us a note<\/span><\/a><span style=\"font-weight: 400;\"> to connect about how we can help your company grow.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On December 24 2020 after years of failed negotiations, the UK and European Union(EU) finalized a trade deal that went into effect at the beginning of this year. This zero-tariff, zero-quota deal is seen as a largely positive outcome, however the new requirements that were agreed upon are still expected to cause some significant issues [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[95],"tags":[],"class_list":["post-11690","post","type-post","status-publish","format-standard","hentry","category-shipping"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What Does the New Brexit Deal Mean for Shipping and Fulfillment? -<\/title>\n<meta name=\"description\" content=\"The Brexit Deal will effect international shipping and customs brokerage, so it is important to understand the changes and how they will affect businesses.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Does the New Brexit Deal Mean for Shipping and Fulfillment? 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