The United Kingdom (UK) left the European Union (EU) on January 31, 2020 (midnight Dutch time). From this moment, a transition phase applies, until December 31, 2020. During this period, all EU rules and laws for the UK remain in force. DHL Express is prepared and happy to advise you.
All about Brexit
The United Kingdom (UK) left the European Union (EU) on January 31, 2020 (midnight Dutch time). The UK and the EU reached agreement on 17 October on the conditions for the UK's departure from the EU (Brexit) and a transitional period. After the British Parliament approved the Brexit law on January 22, the British Queen Elizabeth signed the law. The European Parliament approved the agreement on January 29. Negotiations are currently underway on the trade agreement. A trade agreement can, among other things, contribute to lower import duties.
What will change for me?
Nothing will change for trade with the UK until January 1, 2021. After this date, customs declarations are 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.
How do I prepare for Brexit?
- After 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. After 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 our billing service '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?
The United Kingdom (UK) left the European Union (EU) on January 31, 2020 (midnight Dutch time). From this moment, a transition phase applies, until December 31, 2020. During this period, all EU rules and laws for the UK remain in force.
What happens with a Brexit?
The UK will leave the EU in Brexit. Until January 1, 2021, nothing will change for trade with the UK. After this date, customs declarations are required for import and export.
What are possible Brexit scenarios?
Negotiations are currently underway on the trade agreement. If these negotiations succeed, lower import duty rates may be applicable for certain goods. If not, keep in mind that more import duties have to be paid.
DHL EXPRESS & BREXIT
How is DHL preparing for Brexit?
DHL is busy preparing for Brexit with European and national teams. For example, adjustments have been made to our IT systems and online shipping applications. There are processes for hiring more employees, both in the Netherlands, the EU and the United Kingdom, and DHL has made a plan for all Brexit scenarios.
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.
CUSTOMERS & BREXIT
What will change for me as a Customer?
Regardless of 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 the UK 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?
Due to the costs associated with Brexit and the investment we have to make, we are forced to introduce a Brexit surcharge. Cost factors include changes in customs and import regulations that significantly impact DHL Express operational costs.
The surcharge applies from 1 January 2021 to all dutiable shipments between the EU and the UK, both import and export. This has been set at € 0.25 per kg with a minimum amount of € 5 per shipment.
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 billing service DTP, 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)
Consider sending our billing service 'Duties Taxes Paid' (DTP) if the value of the product is higher than the de minimis value (currently £ 15). You then pay the import duties & VAT as the sender. With an all-in sales price you avoid surprises for your webshop customer. This makes delivery of your product as smooth as the online purchase.
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 untill Brexit date, the new national general license for export to UK; OR
(iii) in case the adjusted EU001 did not enter into force untill Brexit date 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.
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.