Cross Border Compliance in the EU & UK. Slide deck from November 26 online webinar. For more webinar's visit www.wcaecommerce.com

1. Cross Border
Compliance
WCA eCommerce
Network
Webinar 28 NOV 16

2. Cross Border Compliance
EU & UK
Host: Alex Allen, Managing Director WCA eCommerce
Guest: Mr Klaas Gijzen – IAA Group – Netherlands
Guest: Mr Neo Xiaoning Kong – CCL – UK

3. Welcome & Webinar Format
Topic:
Alex will lead discussion with Guests Speakers through a
series of questions relating to the challenges with EU & UK
Cross Border Compliance for Shippers and Logistics
Providers.
Questions:
Webinar Participants are invited to send through any
questions via the Chat function, which may be addressed at
the end of the session if time allows.
Duration: 60 minutes
Copy of Presentation will be available to download
www.wcaecommerce.com shortly.

4. EU: eCommerce
Customs Definition: e-Commerce
All transactions created electronically
through a computer network (eg.the
Internet) that result in a movement of
physical goods and are subject to
customs formalities and regulatory
compliance.

5. 2.5
bn
78.9
bn
1.5
bn
5.8
bn
28.7
bn
69.5
bn
14.5
bn
111.1
bn
2.4
bn
9.8
bn
17.5
bn
6.9
bn
2019
Logistics
eCommerce
Market Size
Euro 348.9 billion
Ti – Transport Intelligence 2016
China + India + SE Asia = 50% of
Global Market Share
eCom: Hotspots

6. Online Economy
50% - 80% purchased
online in past month
CHANGED BUYING
BEHAVIOURS
- 2015 B2C 477billion € growth of 12.5%
- B2C sector has created 2.5 million jobs
in Europe (2015)
- UK eCommerce B2C growing at 14.7% ,
127billion € 2013/14
- Ecommerce sales in Europe increased
18.4% in 2015
- Predicting European eGDP to reach 6%
in 2020

7. EU: eCommerce

8. EU: eCommerce
Customs Declarations e-Commerce EU
(from 01 May 2016):
Standard Declaration in regular system AGS
Declaration in advance in regular system AGS
Declaration via separate automated tool : Venue
Already used by express carriers and Post.nl, also possible
for other companies.
Note: For each eCommerce Customer/ Invoice must be
made a Customs Declaration.
1. Custom clearance can be done when goods arrived at EU
bonded warehouse.
2. Custom clearance can be done in advance.
3. Possibility of doing Venue declaration will end 2019.

9. EU: Customs
Customs Declarations
Customs Declaration for each eCommerce Invoice
- Manual declaration is not an option
- IT solution / data transfer
Issues:
- Hs codes - Value - Duties
- Vat/ Value Added Taxes - Incoterms DDP
- EU Customs Regulations, Dangerous Goods etc.
Custom Clearance in Advance:
Advantage : Possibility for AEO status holders of selection of
physical inspection customs before actual arrival of the goods in
EU (Pilot phase will be starting approximately april 2017)
Disadvantage: Missing cargo & non-manifested cargo

10. EU: Customs
EU’s 8 digit HS number, plus 2 additional digits for Integrated Tariff Code (TARIC)
- eCommerce Vendor standards for must be the same as EU standards
- Mapping must be done according EU Customs regulations.
Value:
The value of the goods must be the actually charged or paid price of goods.
Customs value:
The value of the goods added with the cost of transportation to the EU.
Below is a simplified Version of Duties / VAT calculations
0,- until 22,- € duty no /Vat no
22,- until 150,- € duty no / Vat yes
150,- > € duty yes/ Vat yes
Penalties for under-declared value & incomplete documentation. Transport Insurance a must.

11. EU: VAT
Payments
Destination NL: pay VAT in NL
Destination other EU member state: distance selling
Amounts of VAT are not the same in the other member EU States
Distance selling has to be done by a Importer in NL/EU
Incoterms DDP
Prohibited for Custom clearing eCommerce low value goods.
Not for VAT payments other EU member states.
Proposal: from 2021 also for e-Commerce goods (VAT experts are working together on this proposal).
- No exemption for VAT anymore
- No distance selling anymore. New rules.
- VAT collection by non-EU vendor
- VAT declaration and payment in one member state
- This member state distributes VAT over the msEC, business, Customs.

12. EU: IOR
Importer of Record
When a Customs Broker is the Importer of Record, they are essentially clearing the Import Shipment in
their own name instead of that of the Consignee. The Broker is liable for all of the Customs regulations as
they are legally the Importer, this could include additional duties, liquidated damages, or penalties.
Some Agency bodies, such as the Food & Drug Administration, or the Consumer Protection Safety
Commission, still hold the Consignee liable, regardless of who might be the Importer of Record.
For Trademark violations, Customs regulations has provisions for Customs to enforce this for Imports. So if
the Broker is IOR, Customs will hold the Broker accountable.
Becoming IOR for other Companies and/or third parties should be reviewed very carefully and cautiously,
they need to be fully aware of the risks, responsbilities and actions that may be taken against them if found
to be at fault as the IOR.
Note: even when the consignee is shown as the importer of record, some Agencies may
pursue the Broker for the Consignee’s violations.

13. EU: EORI
Economic Operator Number
The Economic Operator Registration and Identification (EORI) number is a unique identifier, assigned by a
Customs authority in an EU country to all economic operators (both companies and individuals) persons
engaging in activities covered by EU Customs Legislation.
Importers established outside the EU will be assigned an EORI the first time they lodge:
- a customs declaration
- an entry summary declaration (ENS)
- an exit summary declaration (EXS)
Operators use this number in all communications with any EU customs authorities where an EU-based
identifier is required, for example in customs declarations.
Assignment of EORI Number
The EORI number is assigned by the member state where the economic operator is established.
An EORI number that has been issued in one of the member states is valid in all member states.
EORI numbers will only be assigned to legal entities. Branches must use the EORI number of the head office.

14. UK: Importer
Company Registration Process as an Importer
As an importer to the UK, you need to register as a UK company
with Companies House.
Once registered, you also need to obtain an EORI (Economic
Operator Registration and Identification) number from HMRC
(HM Revenue & Customs).
The forms you need to complete will vary according to the
nature of your business, but they are all available on the
www.gov.uk website.
You may also need to get a VAT registration too, if you ship in
higher volumes.

15. UK: IOR & EORI
Importer of Record Responsibilities and Liabilities
You are responsible for adhering to health and safety standards
and fair trading policies across the EU. You can find all the details
for this on the HMRC website via www.gov.uk.
EORI (Economic Operator Registration and Identification)
Requirements for the EU vary by country but paperwork will
usually include a copy of the shipping documents, a copy of the
commercial invoice, and packing list or manifest.
If you’re shipping B2C, you need to declare the final sales price,
and if shipping B2B, the wholesale price of the shipped goods.

16. UK: D&T
Duty Rates
Typical ecommerce shipments, low value items are zero rated – the
threshold is currently £15 (in the EU it is €22), below which no tax is due.
If your stock is held in the UK you can still sell into other EU countries
without having to VAT register in each until you reach the limit set by the EU
Distance Selling Rules.
The UK E-Commerce Regulations require that all commercial web sites make
the following information directly and permanently available to consumers
via the website:
•the company's name, postal address (and registered physical office address
in the UK if this is different) and email address;
•the company's registration number;
•any Trade or Professional Association memberships;
•the company's VAT number.
www.Gov.uk

17. WCA eCommerce Network
World’s first and largest, dedicated eCommerce
Logistics Network
WCA is leading at the forefront of the Industry changes that are
being driven by the online-digital transformation of eCommerce,
Shipping, Logistics and Last Mile Deliveries.
WCA eCommerce Logistics Network connects market-leading
Logistics Service Providers and eRetailers. We offer three levels of
Membership: eMember, eVendor & eTailer.
This dedicated eCommerce Network is open to all Companies that
wish to learn, grow and excel within this dynamic industry.
Contact your Regional WCA Managers or Contact Us to find out
more.
ecommerce@wcaworld.com www.wcaecommerce.com