Brexit is drawing near
There is still a substantial degree of uncertainty about Brexit and the consequences involved
It is worth evaluating the various risks involved.
In Blue Water, we watch developments, and we encourage our customers to start relating to Brexit in connection with the transport of their goods.
“After Brexit, Great Britain will be regarded as a third-party country, which will have consequences in respect of customs duty, whether there will be made an agreement between EU and Great Britain or not”, says Claus Plath, who is responsible for Blue Water’s Sea, Air and Road Transport in the UK.
Therefore, Blue Water recommends the companies involved to enter into a dialogue with suppliers exporting articles from the UK, to have them enter EORI number as well as tariff number in the documents.
Also, the companies ought to find out whether they have the necessary import and export licences for trading with third-party countries.
“It would also be a good plan to look into the Incoterms that you are using today, as it might be difficult to foresee the consequences trading will have in the future in terms of customs duty. Therefore, it is worth evaluating the various risks involved”, says Claus Plath.
For export on Ex Works terms, all customs obligations lie with the country of origin and with the consignee in the UK. For export on DDP terms (Delivery Duty Paid), you are as consignor/shipper liable for all customs obligations in the UK. We therefore recommend that you send your goods on DAP or CPT terms instead.
For import on EX Works terms, the customs obligations lie with you – be it export declaration from the UK or customs clearance in the receiving country.
The unclarified agreement situation complicates the process of providing clarity on the transport part, but Blue Water’s experts are ready to guide and help the customers.
Share this article: