For many of us, Brexit seemed to completely change the way that goods move from the UK to other countries across Europe. So, it’s no surprise that some businesses have felt left behind since the customs changes came into effect on 1st January 2022.
What used to be a fairly simple process suddenly involved customs declarations, additional paperwork, VAT considerations, and commodity codes. Even now, years after the UK’s controversial departure from the European Union, customs clearance is still one of the biggest challenges facing businesses involved in international trade.
The good news is that customs procedures don’t need to be a barrier to growth. With the right preparation and support, importing and exporting goods can still be a smooth and efficient process.
We’ve been helping businesses navigate international shipping since 1989. From our base at Newcastle International Airport, we’ve worked with manufacturers, retailers, distributors, and all kinds of specialist industries to keep goods moving around the world.
So, without further ado, here’s our in-depth guide for UK businesses who want to move goods seamlessly throughout Europe without bumping into the roadblocks that customs clearance can present.
What is customs clearance?
Put simply, customs clearance is the process of getting permission from customs authorities for goods to either enter or leave a country. Whenever goods cross an international border, these authorities need to know what’s being shipped, where it’s headed, how much it’s worth, and whether any duties or taxes apply.
The process involves submitting this information to the relevant authorities, then getting their approval before goods can continue their journey. Without customs clearance, shipments can get delayed, held at the border, or even sent back.
For importers, successfully getting customs clearance means their goods can legally enter the UK. For exporters, it means their goods can leave the UK and enter overseas markets while meeting all of the usual compliance requirements. Because of this, customs clearance sits at the beating heart of international trade.
Why does customs clearance matter?
A lot of businesses only think about customs clearance when something goes wrong. But by that point, the shipment is often already delayed. Good customs management helps businesses avoid this fate. It helps prevent those needless border delays, storage charges, keeps customer satisfaction high, and reduces the risk of penalties.
After all, the impact of delays can be huge. A manufacturer waiting for components might have their production completely disrupted, or a retailer might miss out on a major sales period. This is why customs preparation should never be treated as an afterthought.
What documents do I need for customs clearance?
While this can vary between shipments and destinations, there are still a few key documents that businesses almost always need when importing or exporting goods. We’ve listed some of these below for future reference:
Commercial invoices
A commercial invoice gives customs clearance authorities details about the goods being shipped. It’ll usually include a description of the goods, the quantity, value, country of origin, details about the buyer and seller, and the terms of sale.
A lot of this info forms the basis of customs decisions, including duty and VAT calculations. So, needless to say, a commercial invoice is rather important.
Commodity codes
These are used to classify goods for customs purposes. Every product has a specific code that determines things like duty rates, VAT, import restrictions, and export controls. Choosing the wrong one is one of the most common mistakes we see businesses make. And it can be one of the most expensive.
Getting this step wrong can lead to underpaid duties, overpayments, investigations, and delays. So, it’s well worth taking the time to make sure you’ve gotten this right.
EORI numbers
All businesses need an Economic Operators Registration and Identification number (or EORI for short) to move goods between the UK and other countries. Without one, customs declarations generally can’t be processed.
Thus, any business that’s regularly involved in importing and exporting should make sure their EORI registration is in place before internationally shipping goods.
Packing lists
This gives customs officials extra information about a shipment’s contents. It helps them verify goods and can help with inspections if one is needed. Typical information you’ll find in a packing list includes the number of packages, weight, dimensions, packaging type, and the contents.
Certificates of origin
Some shipments need certificates of origin to prove where the goods were manufactured or produced. They’re especially important when businesses are claiming preferential tariff treatments under trade agreements.
Requirements vary between countries, which is why professional guidance can save businesses a lot of money and even more confusion.
What customs challenges did Brexit create?
While customs procedures have been around for thousands of years, for modern day UK businesses, the new UK-EU requirements created by Brexit have caused several stumbling blocks. Here are a few of the challenges that have emerged:
Delays at borders
One of the most obvious consequences of Brexit has been increased border congestion. When documentation is incomplete or incorrect, goods can’t move forward until the issue is resolved. Although systems have come a long way, border delays still happen when requirements aren’t met.
Incorrect paperwork
As you might’ve guessed by now, customs documentation is very detailed. The tiniest error on a commercial invoice or declaration can create a lot of problems. Businesses have found that paperwork which had never been needed prior suddenly became essential.
Duties and VAT confusion
The introduction of new import procedures has created a great deal of uncertainty around duties and VAT responsibilities. Questions like these have become common across all kinds of industries:
- Who pays import VAT?
- Which party is responsible for customs declarations?
- Does duty apply to this shipment?
And without clear answers, businesses risk unexpected costs and disputes.
Commodity code errors
Commodity classification has become a big challenge for businesses shipping their products overseas. Many goods have similar descriptions but different classifications, duty rates, and regulatory requirements. Getting this wrong can trigger delays and additional costs.
How do I avoid customs clearance delays?
Now that we’ve established the consequences of getting the process wrong, let’s look at how you can avoid delays. Because, while it can seem like an immensely complicated process, many delays stem from the same handful of mistakes. Here’s what you can do to avoid delays:
Maintain accurate documentation
Every customs declaration relies on accurate information. Descriptions should be clear and detailed, values should be correct, and documentation should be completed consistently across the board. Taking the time to double-check information before shipment really can prevent disruption later on.
Work with experienced freight forwarders (like us)
One of the easiest ways to limit the risks posed by customs is to work with specialists who deal with the procedure on a daily basis. Here at Universal Forwarding, customs brokerage is a key part of our offering. Our team manages both import and export declarations using modern systems and direct customs link technology.
All of this allows us to process customs entries quickly while also keeping delays at ports, airports, and borders to a minimum. And because customs requirements are constantly changing, having access to proper support can make a huge difference. Our brilliant team are also available 24/7 to answer your questions.
As Karl Dean, Export Supervisor at Universal Forwarding, explains:
“Customs requirements can look overwhelming if you’re dealing with them for the first time. We spend a lot of time helping customers understand what’s needed, checking documentation before shipments move, and solving issues before they become delays. Sometimes a quick chat can save days of disruption further down the line.”
Understand your import and export responsibilities
Many customers bump into customs problems because buyers and sellers assume that the other party is responsible for certain obligations. Before goods move, everyone involved should understand who’s responsible for customs declarations, who pays duties and taxes, who arranges transport, and who assumes risk during transit.
Make sure you’ve reached a clear agreement to make sure that these kinds of misunderstandings and unexpected costs can be avoided.
Import duties, VAT, and incoterms explained
These are the big three when we’re talking about areas of confusion for businesses involved in international trade. So, let’s look at each one in simple terms:
Import duties
Import duty is a tax charged on certain goods entering a country. The amount payable depends on factors like product classification, country of origin, product value, and applicable trade agreements.
Of course, not every single shipment attracts duty, but businesses should always understand the potential costs before importing goods.
VAT
This continues to play an important role in international trade. Depending on the transaction, businesses might need to account for import VAT, export VAT treatment, VAT registration requirements, and deferred VAT accounting. Yes, it’s a lot to remember. The rules can also vary depending on the scenario, making professional guidance even more valuable.
Incoterms
These are internationally recognised rules that set out the responsibilities of buyers and sellers. They determine who’s responsible for transportation costs, insurance, customs procedures, and duties and taxes.
Terms like DDP, FOB, CFR, CIF, and EXW can all have an impact on both costs and operational responsibilities. So, it stands to reason that understanding incoterms before entering into trade agreements helps avoid confusion later.
Need help with your customs clearance?
We’ve spent almost four decades helping businesses achieve customs clearance with as little hassle as possible. Founded back in 1989, we’ve built a sterling reputation on vast industry experience and a genuinely personal approach to customer service.
While technology plays an important role in modern logistics, we believe people still matter above all else. When you get in touch with us, you’ll be speaking to an experienced freight professional who understands your business and the challenges you’re up against.
And it’s important to remember that customs clearance is only one part of the journey. We also support businesses with air freight, sea freight, specialist logistics, and so much more. This means that you can rest assured that a single team will handle your shipment from A to B without the need to work with multiple businesses.
Because we’re based at Newcastle International Airport, we’re ideally positioned to support businesses throughout the North East and across the UK with responsive, practical logistics solutions.
So, if you’re importing or exporting goods and would like guidance on customs declarations, documentation, duties, VAT, or compliance requirements, get in touch with Universal Forwarding. Our team is always happy to talk through your requirements and help keep your goods moving. All you need to do is get in touch and we’ll take care of the rest.
