On 15th December 2017, the European Council approved the start of the second negotiation phase for Brexit. In that phase, the UK and the European Union negotiate the way in which the UK will leave the EU. On 15th January 2019, the British parliament rejected the Brexit deal. As a result, there are now several possible scenarios for the next steps. Two of these scenarios considered: a hard or soft Brexit. Whatever happens, it is still important to be prepared for any possible Brexit scenario. But also: what could be opportunities for your company and how do you enhance your competitive advantage? DHL Express is prepared and will be happy to advise you.
All about Brexit
Brexit Step by Step
What does Brexit mean for you? View the different Brexit scenario's.
The European government leaders have agreed to a shift from the Brexit deadline to 31 October 2019 at the latest. A no-deal Brexit on 12 April has thus been averted. As possible main scenarios we distinguish a so-called hard and soft Brexit. With a hard Brexit, the UK leaves the EU without any further trade agreements. With a soft Brexit, the UK also leaves the EU but a transition period will be in place until 1 January 2021 in which both parties continue negotiations for trade agreements. This could for example lead to preferential trade agreements or even to a Customs Union. It is very well possible that only shortly before 12 April it will be clear which scenario will become effective.
What will change for me?
Regardless of a hard or soft Brexit, customs declarations will be required for import and export. In addition, you need to consider the following:
- Duties and taxes on import into the UK and EU.
- Customs declarations are required for trade between the UK and EU.
- Transit times may change.
- Rates and additional surcharges could change as a result of customs handling.
- Possible additional inspections for certain goods such as animal and plant products.
In case of a soft Brexit, the above could be impacted by trade agreements.
How do I prepare for Brexit?
- Whether it becomes a soft or hard Brexit, the UK will become a country outside of the EU. As a result, a customs declaration will always be necessary for clearance in import and export. DHL Express always handles customs declarations for all your shipments to countries outside of the EU. This means no hassle for you and enables quick clearance at customs. In case of hard Brexit, you do need to reckon with duties and taxes for imports.
- We do recommend that you perform a SWOT-analysis for your company's activities and pricing, taking into account the assumption of a hard Brexit. With this analysis you identify your strengths, weaknesses, opportunities and threats to be prepared for market shifts and transformations.
- Have you traded within the EU only and will you continue to trade with the UK after Brexit? When trading outside the EU you will need an EORI number. We recommend that you request an EORI-number adhead of time.
E-commerce for webshops
After Brexit, your shipments to the UK will become dutiable. This will naturally also apply when your customers return the shipment. With the Easy Returns service, DHL Express ensures that the returning goods re-enter the EU without payment of duties. Quickly and easily!
Depending on the Brexit scenario and the de minimis threshold value, you could consider shipping 'Duty Taxes Paid (DTP). As the shipper, you will then pay the duties and VAT. Offering an all-in price will prevent surprises for your webshop-customer, optimizing their online purchase and shipping experience.
Gifts and excise goods
Do you regularly send/receive gifts to/from relatives or friends in the UK? As long as the UK is still part of the EU, these shipments are exempt from duties and taxes provided that the shipment's value does not exceed the threshold of € 45,-. After Brexit (soft or hard) you can still receive gifts from the UK in the EU below this threshold value. DHL Express will take this into account in the customs declaration. However, for sending gifts to the UK after Brexit, it is unclear whether the UK will also apply an exemption and if so, what the threshold value will be. DHL Express will keep you informed of the developments.
Within the EU, the shipping of excise goods (such as alcoholic beverages, tobacco products and mineral oils) is subject to extensive regulation. For logistics providers and carriers, there is no legal exemption such as is applicable to private individuals. As a result, DHL Express can only transport excise goods within the EU under certain conditions. However, as soon as the UK leaves the EU, all shipments to/from the EU will be dutiable and DHL Express will process the payment of excise duties via the customs declaration.
The benefits of shipping with DHL Express
- DHL Express handles all your customs declarations for shipments to and from the UK
- Also in the UK, DHL Express is market leader with many years of experience, an extensive local network and local expertise.
- DHL Paperless Trade – create your customs invoice online and transmit electronically to DHL Express, allowing for faster customs clearance
DHL Paperless Trade saves time and paperwork by creating and sending your Commercial or Proforma customs invoice via your online shipping application. This eliminates the need to print documents and physically attach them to your shipments. Your invoice will be sent directly to Customs to allow for faster customs clearance. As well as saving you valuable time when preparing your shipments, this free service will help you save on paper and printing costs, while also making a positive contribution to the environment.
What is Brexit?
In June 2016, a referendum was held in which 51.9% of the population of the United Kingdom voted to leave the European Union (EU). As a result, ex Prime Minister Theresa May sent a letter to the European Union on 29 March 2017 informing them that the UK will leave the EU. Mrs May was then given exactly 2 years from that date to make arrangements for Brexit. On 15 December 2017, negotiations started between the UK and the EU about the way in which the United Kingdom will leave the EU
What will happen on 31 October at 23:00?
Brexit will be effective on 31 October at 23:00 which means that at that time, the United Kingdom will leave the EU.
What are possible Brexit scenarios?
The main possible scenarios are the so-called hard and soft Brexit. In the event of a hard Brexit, the United Kingdom will leave the EU without any further trade agreements. In the case of a soft Brexit, the United Kingdom will still leave the EU, but there will be a transitional period until 1 January 2021 in which both parties will further negotiate trade agreements.
On January 15, 2019, the British parliament voted 'no' against the Brexit deal. As a result, various different scenarios could no be considered. Two of the possible scenarios: a hard or soft Brexit. It is quite possible that it will only become clear shortly before 31 October 2019 which scenario will apply.
DHL EXPRESS & BREXIT
How is DHL preparing for Brexit?
With all its European and national teams, DHL is busy preparing for Brexit. For example, adjustments have been made to our IT systems and online shipping applications. DHL is currently in the process of hiring additional staff, both in the Netherlands and the United Kingdom. DHL is fully prepared for every possible Brexit scenario.
Is DHL ready for Brexit?
Dealing with the uncertainties surrounding Brexit remains a challenge for the world of international business. Deutsche Post DHL has a wide experience of dealing with changes in conditions of international trade. For over a year now, we have been working on an extensive contingency plan. And we will continue to do so, given the rapidly changing political climate.
DHL will stay in close contact with customers and suppliers and will keep supporting them in doing international business also after Brexit.
DHL Express is of course aware that transporters to the UK a required to have ECMT-permits. DHL has already taken the necessary steps to ensure that these permits are received in time.
As Brexit relates to the government of the UK, we are dependent on the actions of the British government and the way in which they treat this entire process. We will of course keep our customers informed of all Brexit-related processes and developments.
How will DHL Express handle shipments on 31 October 2019?
This will depend on the Brexit scenario followed by the British government. We will communicate about this as soon as there is more clarity.
CUSTOMERS & BREXIT
What will change for me as a Customer?
Regardless of a hard or soft Brexit, a customs declaration will always be required at import and export. However, the moment at which this becomes a requirement, depends on whether a hard of soft Brexit scenario is chosen.
In addition, please take into account the following:
• Customs duties and VAT will apply upon import into the UK and EU.
• Customs invoices will be required for trade between United Kingdom and EU.
• Transit times may change.
• Rates and additional surcharges may change as a result of customs clearance.
• Any additional inspections may be required for certain goods such as animal and plant products.
What is the impact of Brexit on rates and additional surcharges?
When the UK formally leaves the European Union, DHL Express will apply a surcharge from 31 October 2019 until and including 31 December 2019 to all shipments between European Union countries and the United Kingdom. This surcharge is related to the additional customs handling that will be mandatory when the United Kingdom is no longer part of the European Union. These surcharge rates will be confirmed when more information is available about the Brexit agreements.
What is the impact of Brexit on transit times?
After Brexit, shipments that are sent using our Time Definite services, will be transported via air from and to the United Kingdom. In combination with our Paperless Trade (PLT) services and using the DTP Incoterm , we anticipate minimal impact.
What is the impact of Brexit on Pre-9 and Pre-12 shipments?
After Brexit, shipments that are sent using our Time Definite services, will be transported via air from and to the United Kingdom. In combination with our Paperless Trade (PLT) services and using the DTP Incoterm, we anticipate minimal impact.on the timely delivery of Pre-9 and Pre-12 shipments.
What can I do as a DHL Express customer to prepare for Brexit?
a. Apply for an EORI number
If you have only operated in the EU so far and still trade with the United Kingdom after Brexit, an EORI (Economic Operators Registration and Identification Number) number is required. The EORI number must be entered as an identification number in all data exchange with Customs. More information about EORI or request an EORI number.
b. Switch to Paperless Trade (PLT)
DHL’s Paperless Trade allows you to transmit your commercial or pro forma invoices online. Digital processing of your customs invoices facilitates smooth processing at Customs and promotes quick clearance of your shipment. Less paper, more speed – PLT saves you time and money. Read more about PLT.
c. Duty Taxes Paid (DTP)
Depending on the Brexit scenario and the exemption value (de minimis), you can consider sending 'Duty Taxes Paid' (DTP) when you sell products online. That means you pay the import duties & VAT. With an all-in sales price you prevents surprises for your online shopping customer.
What about returns from the United Kingdom?
When customers ship to the United Kingdom, after Brexit these shipments will be dutiable. This also applies, of course, when the recipient returns the shipments. With the Easy Returns service, DHL Express ensures that the returning goods are reintroduced into the EU without payment of customs duties. Fast and easy!
What about excise goods?
Within the EU, the sending of excise goods (alcoholic beverages, tobacco products, mineral oils) is subject to extensive regulations. There is no statutory exemption for carriers as applicable to private individuals. As a result, DHL Express can only transport excise goods within the EU under certain conditions. However, as soon as the United Kingdom leaves the EU, all shipments from and to the EU will be dutiable and DHL Express will process the payment of excise duties via the customs declaration.
What should I take into account when sending gifts?
As long as the UK is still part of the EU, gifts are exempt from duties and taxes provided that the shipment's value does not exceed the threshold of €45,-. After Brexit (soft or hard) you can still receive gifts from the UK in the EU below this threshold value. DHL Express will take this into account in the customs declaration. However, for sending gifts to the UK after Brexit, it is unclear whether the UK will also apply an exemption and if so, what the threshold value will be. DHL Express will keep you informed of the developments.
Which documents do I need to add to shipments to the United Kingdom after Brexit?
You need to add the same document as you normally do for other countries outside the EU. That means at least a commercial or pro forma invoice. DHL Express will keep you informed of any changes or exceptions to this process. If you have any questions, please contact our Customer Service at 088 - 0552 000.
Can I take out insurance on shipments to the United Kingdom after Brexit?
Of course, that is possible. Customers can take out the same insurance just like for shipments to other countries outside the EU.
Which product code should I use for shipments to the United Kingdom?
When the United Kingdom is no longer part of the EU, non-EU product codes will have to be chosen, as with other non-EU countries.
DUAL USE & BREXIT
1. Will UK on 12 April or before that date be added to the EU001 license as specified in Annex IIa of the Dual Use Directive?
In december 2018 the Commision proposed to add UK to the General Union License EU001 of the Dual Use Directive (hereafter Directive), in case UK will leave the EU on 13 April with a withdrawal agreement. You are able to consult the proposed text or the procedural next steps via the official website of EU legislation, EUR-Lex. In january 2019 the Commission indicated that the mentioned proposal for change of the Directive is to be expected to be in place on 31 October. There is a small chance that the adjustment of the Directive will not be in place on time (31 October)
2. Did The Netherlands determine an alternative solution in case UK is not added on time (31 October) to the EU001 license?
The government of The Netherlands is planning to publish a national general license for export of dual use goods to UK in case UK leaves the EU without withdrawal agreement per 1 November and the adjusted directive is not entered into force. This national general license will be equal to the EU001, understanding that this national general license will just refer to export to UK, not to export to other countries.
3. Which license for export of dual use goods to UK after 1 November can be applied for best?
In case you wish to export dual use goods to UK , you can register for:
(i) the use of the Genaral Union License EU001; AND
(ii) in case the adjusted EU001 will not enter into force on 31 October 2019, the new national general license for export to UK; OR
(iii) in case the adjusted EU001 did not enter into force on 31 October 2019 and the tob e exported goods fall within the range of an actual national general license (e.g. NL010 or NL002), the use of an already existing national general license.
In case you have already registered for the use of the EU001 license, you just need to register for the new national general licens for export to UK or, if applicable for an already existing national general license.
In case you have already registered for the use of an already existing national general license, you just need to register for for the use of the EU001 license.
Note: There is still the option, besides registering for use of the EU001 and national general license, to register for an individual license in case of a single transaction. This application can be done as per 6 March 2019. After the application you will receive a confirmation earliest on 31 October 2019.
Save time and money when creating your dutiable shipment, reduce paperwork and make a postive contribution to the environment with DHL Paperless Trade. Transit your commercial or pro forma invoices online. This free service eliminates the need to print and physically attach customs document to your shipment. Getting started is very easy!
KEY FACTS UK
65,6 Milion (2017)
Pound Sterling £
The United Kingdom consists of: England, Scotland, Wales and Northern Ireland. The first three form the isle of Great-Britain. The majority of the inhabitants (80%) of the United Kingdom live in England. The United Kingdom is the 5th largest economy worldwide with a strong financial center and has been one of the Netherlands' most important trading partners for many years. The most important export products are chemical products and machines. The Netherlands also exports meat, vegetables and fruit to the UK.
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