If your company wants to enhance its presence in the international commerce scene, it is essential to understand the customs practices of your target market. Transporting commercial goods from and to the region's border, particularly in the case of the United Kingdom, must be managed under the supervision of customs officials and use a special code called EORI.
Find out below when your business will need to register for an EORI and how to do so by contacting us.
Source: https://bbcincorp.com/offshore/articles/uk-eori-number
What exactly is an EORI?
EORI is a system of unique identification numbers used by UK customs agents. The identity is required for importing commercial items into the United Kingdom as well as exporting goods from the region to the rest of the world.
The EORI was created on July 1, 2009, to replace The Traders Union Reference Number System. It has primarily acted as a system for accelerating non-EU trade since then.
The UK government requires the EORI number when trading with a non-EU or non-EEA country (EEA).
It is also advantageous for them to use the system to transmit information both internally and with other government agencies in order to provide security and statistics in international trade.
What is the purpose of an EORI number?
Import and export
If your company imports or exports commercial commodities to or from countries other than the United Kingdom, you must get an EORI (Economic Operator Registration Identification) number, regardless of the mode of transport used to carry the items. However, you can apply for an EORI as a business or as an individual.
The EORI number offers security and statistics for international trade and is used by customs agents to communicate information among themselves and with government agencies. Furthermore, only after receiving an EORI number will your products be eligible for deferred value-added tax payment (VAT).
To elaborate, an Economic Operators Registration and Identification number is required if you transport commercial goods:
- Between the United Kingdom (England, Scotland, and Wales) or the Isle of Man and any other country (including the European Union)
- Between the United Kingdom and Northern Ireland
- Between the United Kingdom and the Channel Islands
- Northern Ireland and non-EU countries
For business procedures and discussions
The use of EORI codes in the UK is extensive, and business operators can use the code in a variety of instances when shipping goods from and to the UK; these documents are also valid if your business is not formed in the country you are moving goods to or from:
- Making a customs declaration
- Applying for custom decisions
- Submitting an entry or exit declaration summary
- Making a temporary storage declaration
- Delegating someone to deal with customs for you who is based in the country you are transporting goods to or from.
Can I still transport goods to and from the UK without an EORI?
You cannot legally import or export things from the UK unless you have an EORI number. This is because the number is needed in customs declarations for all merchandise entering or departing the UK. Without a number, you risk incurring additional costs (such as storage fees) and experiencing delays.
EORI issued by the UK and the EU cannot be used interchangeably.
Prior to Brexit, the EU recognized UK EORI numbers and vice versa. This, however, expired on January 1, 2021. If a company is going to file customs declarations or receive a customs decision in the EU, it will need an EU EORI number.
Not registered for VAT
If your company has not been VAT-registered in the UK, you will be required to complete the EORI application form online based on the shipping demands of your goods.
Customs declaration EORI
If your company will be importing or exporting products through couriers or freight forwarding services that require you to perform the customs declaration on your own, you will be required to fill out a separate EORI number registration form online. If you want to use the Customs Handling of Import and Export Freight (CHIEF), National Export System (NES), or New Computerized Transit System, use this application process (NCTS).In general, the EORI number of a VAT-registered company in the United Kingdom will begin with the prefix 'GB' and end with the suffix '000'. If the company does not have a VAT registration, they will be given a code in a different format. EORI codes beginning with XI or IE reflect the identifying codes used for transferring products to and from Northern Ireland that could not be used at the UK border. In summary, only EORI numbers beginning with "GB" are allowed for importing and exporting goods from the United Kingdom.
How to Apply for an EORI Number in the UK
What do you need to plan ahead of time?
Knowing which information will be necessary in the application process will allow you to get a head start and avoid you from having to resubmit missing documents. The lists of company information you must prepare in order to apply for an EORI number in the UK are provided below.
- Your Individual Taxpayer Identification Number (UTR)
- Business start-up date and Standard Industrial Classification (SIC) code
- Username and password for Government Gateway
- VAT number and registration date ( if you are VAT-registered)
- If you are self-employed or a sole owner, you must have a National Insurance number.
Application procedure
When you begin the application procedure, you will need to know whether or not your company has been registered for VAT in order to fill out the appropriate form. You can use the various EORI application forms below based on your VAT registration situation and transporting demand.
VAT-registered
If your company is VAT registered in the UK, you can use this registration link to fill out the application details.
Once an EORI number is allocated to a VAT Registration Number (VRN), it remains linked until the VRN is deregistered.
Not registered for VAT
If your company has not been VAT-registered in the UK, you will be required to complete the EORI application form online based on the shipping demands of your goods.
Customs declaration EORI
If your company will be importing or exporting products through couriers or freight forwarding services that require you to perform the customs declaration on your own, you will be required to fill out a separate EORI number registration form online. If you want to use the Customs Handling of Import and Export Freight (CHIEF), National Export System (NES), or New Computerized Transit System, use this application process (NCTS).
How long does it take to obtain an EORI number in the United Kingdom?
You should allow at least 5 working days after receiving a code to acquire your official EORI.
What if I am not eligible to apply for an EORI in the United Kingdom?
If you are not eligible to apply for an EORI number, you must appoint a customs agent. The person you choose will be in charge of obtaining the EORI number.
How to Monitor the Status of Your EORI Application
Through the government's websites, you may easily maintain track of your EORI application and follow up if complications arise. After completing the registration form, you will be prompted to input the code supplied.
How to Inquire About Your EORI
If you have any queries about your EORI application, there are several methods to contact the Her Majesty's Revenue and Customs (HMRC) staff on EORI for help and assistance:
Filling out the above-mentioned form with your EORI details and enquiries will result in a response in a few working days.
HRMC can be reached at 0300 322 9434 from 8 a.m. to 6 p.m., Monday through Friday.
If you want to write to the HRMC about it, use this address: HM Revenue and Customs - CITEX Written Enquiry Team, Local Compliance S0000, Newcastle, NE98 1ZZ.
Conclusion
Whether you currently run a trading business or are looking to establish up a UK company to do so, registering for an EORI number is always a smart idea. If you fall into the latter category and want to learn more about company registration, please contact our advisory teams for the best method to proceed.
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