UKC

Is anyone here up to speed on current export rules. I have an order for a client in Ireland for some goods manufactured in Greece. Normally for all export orders we offer DDU terms and send the goods. In this case the courier is saying we can send the goods with a preferential origin declaration which will ensure the client only has to pay VAT (which they claim back). However, the client thinks they will have to pay duty, which I don't believe to be the case. Does anyone know for sure if my courier is correct? Also, if we were to offer DDP terms, could we claim back the VAT? And would we be stung for duty? It was never a problem before Brexit....

I sent goods "mattress"  20Kg made in Italy to ROI.

I sent 0% VAT

Receiver paid 23% VAT + 2.5% Duty.

I used DPD via interparcel.com who generated commercial invoices.

I have EORI.

I am VAT registered.

 

Did you use preferential origin? I had not come across this before but it seems like a logical process. We have EORI, and order value is £11.5k, on a pallet @ 280kg. If we can arrange for the client not to pay the 4% duty we would be happy.

This is outside my experience as I ship parcels, however a regular poster on here, Neil something (h ??) who ships pallets, may be along with advice.
Really as you are exporting all you need do is 0% VAT, the business in ROI is Importing and should be looking into that end, but the world is not like that, is it. 
My advice would be,

1. Look for a Pallet company who specialises in ROI, and ask them, they will be out there.
2. Apply for a grant via the HMRC, PwC are operating it for them, and they will fund professional advise or training.
3. I have a link on my work computer to the Irish Custom website with advice, I may post it here later, but have a look. Its the Irish who will be making any charges.
4. I phoned HMRC for advice, and it was so inept and useless ended up in a darkened room ranting about Public Sector workers and why do I pay tax and I if it all goes wrong how it costs me money. I have calmed down slightly now.

Good luck with it.

Which Ireland are you sending to?

(Just for background my only experience is EU to England, so no expert but this would be my understanding based on what I've picked up over the last 4 months)

Republic - My understanding is that you need to avoid it officially entering the UK, then it's an eu-eu shipment so should be exempt of any charges. 

Northern - yes you will need the certificate of origin showing it was manufactured in the EU, in order to avoid paying duty under the new post-brexit trade agreement. Also tell them to check out postponed vat accounting. You will probably still have customs charges (maybe £50) to cover them doing the paperwork when the goods enter the UK.

If possible, make it sure it is direct ship from the EU. Importing to the UK, then re-exporting to the Republic could lead to import duty being charged (not my area of knowledge). Even if you are shipping England to N Ireland you need to complete a heck of a lot of paperwork (that promise of no border in the Irish sea was a lie), to prove the goods will remain in the UK and not jump across the land border into the EU, so avoid if possible.

Is it a business or consumer customer?

do not worry about the origin issue.

On a stag party in Dublin, someone referred to Southern Ireland in a taxi. The driver firmly explained there was Ireland and Northern Ireland, no Republic or Southern. I am still a bit scared of him, so to me it's Ireland. 

Anyway, issue here is the goods are from a Greek manufacturer, who we are sourcing via their UK distributor. This rules out the direct shipment which would have been a nice option. I have no issues with generating export paperwork, but don't quite understand the agreement in place with the EU. If my customer has to pay duty then that is their problem, but if we can do paperwork that avoids duty costs I would like to help them out. VAT payment is a given and not an issue. 

Pre-Brexit, we would have sent the goods, they would have arrived a few days later, and that was it. Hmmm

I will have a look for the Irish Custom website. I have been trying to decipher the HMRC website, but I can't find a definitive answer to this question. 

This is business to business. So VAT is not an issue. I'm more confused with the suggestion of preferential origin and if we can utilise this? 

It’s irrelevant and I would not get hung up about it .just state the country of origin on your invoice . Make sure you know the HTS code   CJ

Ignore the vat issues as it’s b2b. You sell net of U.K. vat. Their vat is for them to sort out   

Sell it either ex-works and let them pick up the shipment. Or do it CPT so you pay shipping costs plus customs clearance in U.K. only.   
 

Ask them if they have a ups account or similar to ship it.  

need eori of both parties and show on invoice. 

My wife is from Cork and she refers to the North and the Republic to differentiate, so, as is true everywhere, just nod and agree with taxi drivers and disregard anything they've said.

It's a re-import to the EU so you put FOI on the AIS declaration in D/E 1/11 and 1Q27 and the number of the original export declaration in D/E 2/3.

You need an authorised copy of the original declaration, your importer to the UK should organise this.

Nowadays one uses DAP not DDU

Thanks. I will run this past the forwarders on Monday. Do I assume correct then that as this is a re-import, no duty is applicable to our customer? And I will start using DAP - need to keep up with the correct acronyms! 

Well what happens if the goods where imported before Bexit I don't know, there must be an exemption ( there is for other things but limited to maybe 3 months). That's where you need to write to the Irish customs for clarification. I'd dump the whole thing in the lap of the forwarder/ customs agent! Unless you are in the electronic system you can't generate a MRN (or whatever it's called in the UK) so they'll have to do it anyway.

Welcome to Brexit!

In all honesty if it was me and it was a one off I would forget the sale unless it’s of a high value or the business customer collected it on their ups/ fed ex/ dhl etc account. 
 As you say welcome to Brexit.