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Consider the origin of the goods, and whether a preferential duty rate can be used, which is based on trade agreements between the country of origin and the country to which the goods are being imported. Agree which party, will assume the responsibility of Importer of Record – they are responsible for ensuring that imported goods comply with all customs and legal requirements of the country of import. Establish the appropriate Incoterms® 2020 (international commercial terms), the point at which goods are sold and which entity (buyer or seller), takes the responsibility as the Importer of Record. This will also determine the country in which VAT is payable and the rate of VAT. Getting this wrong, can be expensive in terms of VAT charges that are either irrecoverable or administratively time-consuming / expensive to recover and possibly create a requirement to register for and account for VAT overseas. Some goods such as alcohol or tobacco are called excise goods which will be subject to excise charges which means they cannot be sold online in the same way as other goods.
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Other goods by virtue of their nature, such as animal or plants and derivatives will require health certification and, in some cases, also a licence. Goods such as high-risk foods, medicines, chemicals, hazardous goods, weapons etc are also subject to special rules and the need to obtain licences and certificates prior to import / export. The buyer and seller will then need to agree on the route and means of transportation of the goods. When it comes to international e-commerce, services are offered by the post office and international couriers who will also act as a customs agent providing a process for dealing with customs declarations. An important logistics consideration will be the dates for goods to be collected and delivered to their destination. This will have a big impact, for perishable goods, and those required for just in time production, and time sensitive markets, such as Christmas. Alternatively, advance planning for non-perishable goods can see some significant transport cost savings.
Preparing to Import and Export Goods – businesses will need to consider the following:
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An Economic Operator Registration and Identification Number (EORI for short) is required to carry out imports and exports. Use of the correct EORI number is important as it will flow the import and export details through to the owner’s Customs Declaration record. Access will also be required to the Customs Declaration Service, (CDS), for both making declarations and downloading documents. The Due Diligence which will be required when making Customs Declarations – before engaging in a supply chain, the individual or business will need to understand the customs responsibilities. Ensure that the transactions are not part of a fraudulent activity, understand what rules must be followed, and what duties will be payable, and decide in advance whether the appointment of a customs representative is required. In the case of e-commerce, the use of a recognised international Post Office service or International Courier may be sufficient, so long as the process has been adequately researched, is understood and declarations correctly made.
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