UPS Europe - Brexit - the time is now

2020 UPS® Tradenomics Webcast Series
Brexit – The time is now
Today’s webcast will begin shortly
16 December 2020

• Panellist
• Salima Gasmi
• Customs Brokerage
Manager
UPS Europe
• Host
• Greg Maddaleni
Sr Manager
UPS Global
• Panellist
• Walter van der Meiren
Director
UPS Europe
• Panellist
• Pasquale Pettoruto
• Head of Brokerage
& Customs Affairs
Europe
Presenters

• This presentation will be available upon check out to all attendees
• as well as a link to the event recording.

• This presentation is for informational purposes only.
• It does not constitute legal advice - please consult with your own legal counsel for such
advice.
• Do not rely on this information without performing your own research.

Proprietary and Confidential: This presentation may not be used or disclosed to other than employees or customers, unless expressly authorized by UPS.
© 2020 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
Agenda
• What is the deal?
• Importing into the UK
• Movements between UK and EU
• Help us
• A quick recap
• What have we done to prepare?
• What’s next?
o The new UK Global Tariff
o Trade Remedies
o The new VAT rules
o UK Conformity Assessed marking
o Preferential Agreements
o Borders Overview
o Inspections at Border Control Posts
o Onward Supply
o Safety and Security Declarations
o Dual use
o Returned shipments
o Goods shipped prior to 1 January 2021
o The Northern Ireland Protocol
1 CCS/MCS or
1 CES/MES Credit
Any questions?
Ask our panelists
using the “Q&A”
function

• Movements between UK
and EU
• Help us
• A quick recap
• What have we done to
prepare?
• What’s next?
What has been agreed?
New rules aimed at preventing checks along the Irish border from 1 January 2021.
What is still open to discussion?
Trade negotiations between the EU and UK continue
Possible outcomes:
o agreeing on a deal
o stopping negotiations (no deal)
o extending negotiations
A final decision must be reached soon as any agreement has to be politically
ratified by both sides.
Results of the Negotiations
7

Contingency Measures
EU Proposals• What is the deal?
and EU
• Help us
• A quick recap
prepare?
• What’s next?
Targeted contingency measures proposed
to mitigate disruptions in case of a No Deal Brexit
Commission proposes targeted contingency measures (europa.eu)
BASIC AIR
CONNECTIVITY
To ensure mutual
provision of certain air
services between UK
and EU for 6 months
BASIC ROAD
CONNECTIVITY
Covering basic mutual
connectivity for road
freight and road
passenger transport for
6 months
AVIATION SAFETY
To ensure safety certs
for products to be used
in EU aircrafts without
disruption
8

External
Borders
UK loses
access to EU
Single Market
Restrictions
and controls
Customs
declarations
between EU &
UK
Trade
Barriers
Two different
customs
tariffs
Non
Preferential
Origin
Customs
duties
between EU
and UK
Non Tariff
Barriers
Shipments
lifecycles
UK Import /
Export
formalities
EU Import /
Export
formalities
Other
requirements
Customs
Warehouses
Authorizations
Bill of
Discharge
Guarantees
and EU
• Help us
• A quick recap
prepare?
• What’s next?
WTO Rules in case of No Deal
What does that really mean?
9

and EU
• Help us
• A quick recap
prepare?
• What’s next?
External
Borders
UK loses
access to EU
Single Market
Restrictions
and controls
Customs
declarations
between EU &
UK
Trade
Barriers
Two different
customs
tariffs
Non
Preferential
Origin
No Customs
Duties
Reduced
Non Tariff
Barriers
Shipments
lifecycles
UK Import /
Export
formalities
EU Import /
Export
formalities
Other
requirements
Customs
Warehouses
Authorizations
Bill of
Discharge
Guarantees
Rules in case of a Free Trade Agreement
What is the difference to WTO rules?
10

Agrifood &
environmental
policy areas
Import
Duties and
new Tariff
Goods
subject to
Sanitary &
Phyto
Sanitary
(SPS)
VAT on all
shipments
Transit
No more
Onward
Supply Relief
and EU
• Help us
• A quick recap
prepare?
• What’s next?
What’s Changing?
11

UK Global Tariff
What do we know?
®
and EU
• Help us
• A quick recap
prepare?
• What’s next?
• The UKGT has been published online and was last updated on June 11th
• Chapters 98 and 99, which are special provisions and not part of HS,
are not included in the tariff
• HMRC has “simplified” both the tariff and duty rates
• Tariff: Generally the tariff has been published at an 8 Digit level (~80%
at 8 digits and 20% at 10 digits)
• Duties: a comparison between UKGT and EU Taric is provided with
description on changes made
13

UK Global Tariff
What do we know?
Change Explanation
% of
Codes
No Change No change from EU duty rates 33.5%
Simplified
Rates slightly reduced and
rounded
40.13%
Currency
Conversion
Currency converted to GBP
and simplified
9.15%
Reduced A bigger simplification 0.3%
Liberalized
Duty rate eliminated/changed
to 0%
16.91%
UKGT Product
Current
Rate
UKGT
Rate
76169910
Articles of aluminum,
cast, n.e.s.
6.0% 6.0%
82054000
Hand-operated
screwdrivers
3.7% 2.0%
29054300 Mannitol
9.60% +
125.80 EUR /
100 kg
8.00% +
105.00
GBP/100kg
87012090
Road tractors for
semi-trailers, used
16.0% 10.0%
90071000
Cinematographic
cameras
3.7% 0.0%
38% 34% 31%
17% 15% 11% 11%
28% 32%
53%
65%
26% 40%
21%
23%
34% 33%
16% 18%
59%
48%
68%
34%
0%
20%
40%
60%
80%
100%
Glass, Ceramic &
Stone
Industrial
Manufactured
Goods
Metals and
Articles of
Appareal,
Clothing and
Fabrics
Furniture toys,
art and others
Plastic, Rubber
Skins and Wood
Minerals &
Chemicals
(organic and
Inorganic)
Animals, Food
and Drinks
Liberalised No change Currency conversion Simplified Reduced
37%
®
and EU
• Help us
• A quick recap
prepare?
• What’s next?
14

Simplified and reduced by 25%
• EU: 15,849 Import HS codes vs UK: 11,830 Import HS codes (9,374 – 8 digit & 2,456 – 10 digit)
• Why 10 digits in some cases? To differentiate duty or suspension for specific products
– E.g. – Civil Aircraft Use
99% of the tariffs match
• 100% Match at CN subheading (8 Digits)
• 1% products UKGT defined at 10 digits don’t match EU (0.3% of the overall UKGT)
– 33 HS codes from UKGT, though a small number for whole tariff, these goods will need to reworked
– Analysis based on November update of TARIC (published 30 October)
UK Global Tariff
How does UKGT compare to TARIC?
®
and EU
• Help us
• A quick recap
prepare?
• What’s next?
15

UK Global Tariff
How does UKGT compare to TARIC?
“Other” Breakdown
• Due to simplification the “other” breakdown has disappeared, so classification
decision path is slightly different
84
84.01
84.83
84.87
84.83.10
84.83.39
84.83.10.21
84.83.10.95
84.83.10.21.10
84.83.10.21.90
.
.
.
.
.
.
.
.
.
.
.
.
EU: 8483102190
UK: 84831021
1
®
and EU
• Help us
• A quick recap
prepare?
• What’s next?
16

Trade Remedies
Trade remedies protect domestic industries against injury caused by unfair trade practices
(imports of dumped or subsidized goods) or unforeseen surges in imports.
Safeguard Measures
• Steel Safeguard Measures
• 19 products will continue (7
terminated by UK, 2 by EU)
• Same method as EU
• 25% duty after quota
• Specific quota for EU in most
product groups
Case Status % of Cases
Maintain 27.10%
Review (UK) 6.54%
Review (EU) 10.28%
Terminate 56.07%
Anti-Dumping and Anti-Subsidy
• UK reviewing current EU cases
• EU cases under review will be
transitioned and follow EU finding
• Several cases will be terminated
from January
®
and EU
• Help us
• A quick recap
prepare?
• What’s next?
17

To charge and account for VAT the seller will need to:
B2C Consignments valued at £135 or less
Charges and requirements
 Know the precise
nature of the goods
to find the correct
VAT rate to charge
 Register for VAT -
sellers that are
already registered
for VAT do not need
to re-register
 Keep records of
goods sold, and
make sure they get
accurate information
to apply the correct
VAT treatment
The seller must charge and account for VAT at the point of sale
Exception: non commercial goods (gifts), excise goods
and EU
• Help us
• A quick recap
prepare?
• What’s next?
VAT
REQUIREMENTS
18

An Online Marketplace has to
Shipments valued at £135 or less
Sold through an Online Marketplace
 Sets the terms and
conditions on how
goods are supplied to
the customer
 Is involved in
authorizing or
facilitating customers’
payments
 Is involved in the
ordering or delivery
of the goods
 Charge and account
for VAT at the point
of sale, unless B2B
and the customer
has provided their
UK VAT number
 Know the precise
nature of the goods
 Register (or be
registered) for VAT
 Keep records of the
goods sold
! Be held liable for
under-declared VAT if
they cannot show
they have taken
reasonable steps to
charge correct VAT
HMRC defines an online marketplace as a business using a website
or mobile phone app to handle the sale of goods to customers that:
and EU
• Help us
• A quick recap
prepare?
• What’s next?
DEFINITION
REQUIREMENTS
19

B2B sales to UK VAT-registered customers
The seller will not need to charge and account
for VAT if the customer gives them their
VAT registration number, and they confirm it’s correct
using the new online service that is be available from December 2020.
 The seller can add a
note to the invoice
(for example, by
writing ‘reverse
charge: customer to
account for VAT to
HMRC’) then send it
to the UK business
customer.
 The business customer will
then be responsible for
accounting for any VAT
due on their VAT Return
using a ‘reverse charge’
procedure, and will be able
to recover the VAT as input
tax on the same VAT
Return under normal VAT
recovery rules.
 Sellers do not have to
register for VAT if
they only sell goods
from outside the UK
to UK VAT-registered
businesses
and EU
• Help us
• A quick recap
prepare?
• What’s next?
GENERAL RULE
20

Importing into the UK
Shipping to the UK with a value not exceeding £135
B2B
B2C
B2C - OMP
Shipper or Importer
Shipper
Online Market Place
Shipments up to £135
1 January 2021
and EU
• Help us
• A quick recap
prepare?
• What’s next?
21

Non-established-taxable-persons (NETP)
Rules for non UK residents importers
Companies who want to import as a non
UK resident (IOR), can register through
Importer with VAT id – EORI number
They may be entitled to register in the UK
voluntarily and claim back any VAT they
have been charged in the UK, if they
intend to make taxable supplies in the UK
more than 30 days in the future.
NETP
Non Established Taxable Persons
and EU
• Help us
• A quick recap
prepare?
• What’s next?
For additional information on NETP you can visit
https://www.gov.uk/government/publications/vat-notice-7001-should-i-be-registered-for-vat/vat-notice-7001-should-i-be-registered-
for-vat#:~:text=If%20you're%20a%20non,any%20value%20in%20the%20UK.
22

Shipping to the UK above £135 value
Import Duties
Import VAT
• Either paid by UPS or
 Apply for an account to defer duty
payments when you import or release
goods into GB from 1 January 2021
• Either paid by UPS or
 by using a Postponed VAT account
Shipments above £135
and EU
• Help us
• A quick recap
prepare?
• What’s next?
23

Goods Conformity Assessment
Use of the UKCA mark from 1 January 2021
o The UKCA or UK Conformity Assessed marking is a new product marking to be used for goods
placed on the market in Great Britain and it covers most goods which previously required the CE
marking
UK Conformity Assessed marking
o UKCA marking alone cannot be used for goods placed on the Northern Ireland market as
these will also require the CE marking or UK(NI) marking
UK (NI) marking
o From 1 January 2021 the GB essential technical requirements, conformity assessment processes
and standards currently used to validate conformity will fundamentally be the same as they are
now
GB technical requirements
and EU
• Help us
• A quick recap
prepare?
• What’s next?
24

© 2020 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color dark brown tone are trademarks of United Parcel Service of America, Inc. All rights reserved.
Brexit Status
Free Trade Agreements Status
European Union
United States
New Zealand
Australia
On the Agenda
South Korea
Southern African
Countries
Switzerland
Morocco
Japan
Canada
Mexico
Already negotiated
Norway
Iceland
Central America
Andean Countries
Israel
East African
Countries
For the full list of negotiated FTAs please check here:
https://www.gov.uk/guidance/uk-trade-agreements-with-non-eu-countries
and EU
• Help us
• A quick recap
prepare?
• What’s next?
25

Movements between the UK and the EU

Movements by road or ferry
Checklist for customs documents• What is the deal?
• Movements between
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Customs
Route / Entry
Point
Documents required
for all destinations
From Dover
or Eurotunnel
To France
To the
Netherlands
To Belgium To Spain To RoI
Transit Accompanying
Document with Master
Reference Number
(MRN)
Export declaration
(MRN)
Safety and
security: UK EXS / EU
ENS
Haulier: ATA carnet
Driver: ATA carnet
Safety and
ENS
Export declaration
(MRN)
Transit Master
Reference Number
(MRN)
Safety and
ENS
TIR carnet
TIR vehicle approval
certificate
Export declaration
(MRN)
Safety and
ENS
NCTS
ATA carnet
Check
an HGV – KAP
NCTS Frenc
h system:
Smart Border
NCTS Netherlands
system: Portbase
NCTS Belgia
n system: RX
SeaPort
digital system
NCTS Spanish
system: Teleport
2.0
NCTS
CTC
Check
an HGV – KAP
NCTS Frenc
h system:
Smart Border
NCTS Netherlands
system: Portbase
NCTS Belgia
n system: RX
SeaPort
digital system
NCTS Spanish
system: Teleport
2.0
Checklist of customs documents
The customs documents required for each of the four ways to move goods for each port of departure and
country of destination:
NCTS
TIR
Check
an HGV – KAP
NCTS (upon
arrival in EU)
French
system:
Smart Border
NCTS (upon arrival
in EU) Netherlands
system: Portbase
NCTS (upon
arrival in EU)
RX SeaPort
digital system
NCTS (upon
arrival in EU)
Spanish system:
Teleport 2.0
NCTS (upon
arrival in EU)
Pre-
notification
Check
an HGV – KAP
NCTS Frenc
h system:
Smart Border
NCTS Netherlands
system: Portbase
NCTS Belgia
n system: RX
SeaPort
digital system
NCTS Spanish
system: Teleport
2.0
27

Inspections at the Border Control Posts
Service limitations for restricted commodities
Certain commodities will be subject to restrictions or
controls when shipped between the EU and the UK
In order to avoid disruption at the
border, UPS will accept some restricted
commodities only in Express Services
UPS will suspend the carriage by UPS
Standard of goods that are subject to
veterinary, phytosanitary or any other
inspections of a restricted goods
category at the EU border point
It is the customers’ responsibility to check
regulations in place and if their products
require inspection at the border
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
28

Key Points
Non acceptance of certain goods in standard service in and to the UK
Why do these products need to be
controlled at specific border
posts?
Can a free trade agreement
prevent goods from being
controlled?
Why do certain goods need
to be inspected at the
border? And which goods do
we not accept by road?
Customers’ responsibility to
verify if goods will be subject to
inspection
CUSTOMERS
FTA
BORDERSINSPECTIONS
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
29

How to verify?
Look at
commodity
Find the
HS code
Check which
measures
apply
Check whether
these measure
require a
border control
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
30

Which commodities are excluded?
Inspection Type Regulation Examples of Commodities
VETERINARY CONTROL
Importing animals, animal products and high-risk food and feed
not of animal origin from 1 January 2021 - GOV.UK (www.gov.uk)
https://ec.europa.eu/food/animals/vet-border-control_en
Live animals and products of animal origin inc fish and
crustaceans, molluscs and other aquatic invertebrates, milk
powder…
Medical and pharmaceutical products and preparations that
include human blood; animal blood etc.
CITES
https://checklist.cites.org/#/en
https://ec.europa.eu/environment/cites/background_en.htm
Moving CITES specimens through Eurotunnel from 1 January 2021
- GOV.UK (www.gov.uk)
Moving CITES specimens through the Port of Dover from 1
January 2021 - GOV.UK (www.gov.uk)
All products manufactured from endangered species: e.g.
Alligator skin, corals, Ivory etc.
This can apply to luxury shoes, handbags, wallets, watches
wristbands etc.
Sanitary and Phytosanitary Inspections
High-priority plants and plant products from the EU to
the UK must have:
- a phytosanitary (health) certificate (PC)
- a pre-notification submitted by the importer
- documentary and identity checks
- a physical inspection
Importing and exporting plants and plant products from 1 January
2021 - GOV.UK (www.gov.uk)
https://ec.europa.eu/food/overview_en
Plants, bulbs, seeds, fruits and vegetables, Wood and articles
of wood; wood charcoal
To find a non-exhaustive list of examples,
refer to the EU Tariff, using their commodity codes
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Note: UPS T&Cs continue to apply to all our services, including requirements for ISC agreements, dangerous and prohibited goods
31

Textile Goods
Cotton t-shirt: 6109.10.0010
ARTICLES OF APPAREL AND CLOTHING
ACCESSORIES, KNITTED OR CROCHETED
T-shirts, singlets and other vests, knitted or
crocheted, Of cotton
COMPOSITION: 100% Cotton
No restriction
33

Textile Goods
Wool blend knitted dress: 6104.41.0000
Women's or girls' suits, ensembles, jackets,
blazers, dresses, skirts, divided skirts,
trousers, bib and brace overalls, breeches
and shorts (other than swimwear), knitted
or crocheted; Dresses; of Wool or fine
animal hair.
COMPOSITION: 57% wool, 25% polyester,
16% polyamide, 2% elastane.
No restriction on CITES, Import control
on cat and dog fur, Import control on
seal products
34

Pharmaceutical Goods
Flu Vaccine: 3002.20.0000
PHARMACEUTICAL PRODUCTS
Human blood; animal blood prepared for
therapeutic, prophylactic or diagnostic uses;
antisera, other blood fractions and
immunological products, whether or not
modified or obtained by means of
biotechnological processes; vaccines, toxins,
cultures of micro-organisms (excluding
yeasts) and similar products. Vaccines for
human medicine.
No restriction, subject to Imports and
Export authorisations, marketing
authorisations of the vaccines etc.
35

Insulin injection pen: 3004.31.0000
PHARMACEUTICAL PRODUCTS
Medicaments (excluding goods of
heading 3002, 3005 or 3006) consisting of
mixed or unmixed products for therapeutic
or prophylactic uses, put up in measured
doses (including those in the form of
transdermal administration systems) or in
forms or packings for retail sale.
Containing insulin
No restrictions, subject to Imports and
Export authorisations, marketing
authorisations of the vaccines etc.
36

Medication: Antibiotics Nesoi, In Dosage Form: 3004.20.0000
Medicaments (excluding goods of heading 3002,
3005 or 3006) consisting of mixed or unmixed
products for therapeutic or prophylactic uses, put
up in measured doses (including those in the
form of transdermal administration systems) or in
forms or packings for retail sale; Containing
penicillins or derivatives thereof, with a
penicillanic acid structure, or streptomycins or
their derivatives: Other, containing antibiotics
Restrictions on Export, also subject to
Imports and Export authorisations,
marketing authorisations of medication etc.
37

Optical
For the correction of vision, single focal: 9001.50.4140
Organic uncut corrective eyeglass lens, finished on
both sides, to undergo a coating, colouring, edging,
mounting or any other substantial process for use in
the manufacture of corrective glasses
No restrictions
lenses (including contact lenses), prisms, mirrors and
other optical elements, of any material, unmounted,
other than such elements of glass not optically worked:
Contact Lenses
No restrictions
Contact lenses: 9001.30.0000
38

Textile and Textile Articles
Camel hair jumper: 5102.19.4000
WOOL, FINE OR COARSE ANIMAL HAIR;
HORSEHAIR YARN AND WOVEN FABRIC
Fine or coarse animal hair, not carded or combed;
Of camel (including dromedary) or yak, or of
angora, Tibetan or similar goats
COMPOSITION: Camel Hair 69%, Metal 6%,
Polyamide 5%
Restricted:
• Presentation of the required "CITES" certificate
• Declared goods do not belong to the
Washington Convention (CITES)
• Subject to several Veterinary controls
40

Horsehair Weaver Fabric for furniture: 5102.19.4000
WOOL, FINE OR COARSE ANIMAL HAIR;
HORSEHAIR YARN AND WOVEN FABRIC
Woven fabrics of coarse animal hair or of
horsehair
COMPOSITION: 68% Horsehair, 32% Polyester
Restricted:
• Other than cats and dogs fur as mentioned by
Regulation (EC) No 1523/2007 (OJ L 343)
• Reimportation of textile products following an
outward processing operation, in accordance
with Regulation (EC) No 32/2000 - ANNEX II
41

Tencel Denim shirt: 6106.90.9000
Women's or girls' blouses, shirts and shirt-
blouses, knitted or crocheted, Of other
textile materials: Lyocell (Regenerating
cellulose in an organic solvent)
COMPOSITION: 100% Lyocell
Restricted:
42

Article of Leather; Handbag
Python Snakeskin handbag: 4202.31.0010
ARTICLES OF LEATHER; HANDBAGS AND
SIMILAR CONTAINERS;
Handbags, whether or not with shoulder strap,
including those without handle; With outer
surface of leather or of composition leather;
handmade
COMPOSITION: Outer Snakeskin, Lambskin
lining
Restricted:
• Declared goods do not belong to the Washington Convention (CITES)
• other than cats and dogs fur as mentioned by Regulation (EC) No 1523/2007 (OJ L 343)
• Attesting Document (seal product), issued by a recognised body in accordance with Regulation (EU) No 737/2010 prior to 18 October 2015
• Written notification of import and document giving evidence where the products were acquired (seal product)
• European Union - Attesting document for seal products resulting from hunt by Inuit or other indigenous communities for placing on the
Union's market in accordance with Article 3 (1) of Regulation (EC) No 1007/2009 on trade in seal products
• Other goods than those seal products mentioned in Regulation (EU) 2015/1850 (OJ L 271)
43

Jewellery
Unworked cultured pearl: 7101.21.0000
NATURAL OR CULTURED PEARLS AND PRECIOUS
OR SEMI-PRECIOUS STONES :
Pearls, natural or cultured, whether or not
worked or graded but not strung, mounted
or set; pearls, natural or cultured,
temporarily strung for convenience of
transport;
Cultured pearls: Unworked
Restricted:
• Common Health Entry Document for Products (CHED-P) (as set out in Part 2, Section B of Annex II to
Commission Implementing Regulation (EU) 2019/1715 (OJ L 261))
• The declared goods are not concerned by Commission Decision 2007/275/EC and Commission
Implementing Regulation (EU) 2019/2007
• Common Health Entry Document for Products (CHED-P) (as set out in Part 2, Section B of Annex II to
Commission Implementing Regulation (EU) 2019/1715 (OJ L 261))
• The declared goods are not concerned by Commission Decision 2007/275/EC and Commission
Implementing Regulation (EU) 2019/2007
44

Pharmaceutical waste drugs: 3006.92.0000
PHARMACEUTICAL PRODUCTS : Waste pharmaceuticals
Restricted: Additional information/Documents produced/Certificates and
authorisations
• Information document accompanying shipments of waste as mentioned in Regulation
(EC) No 1013/2006 (OJ L 190) – Article 18 and Annex VII
• Notification document as mentioned in Regulation (EC) No 1013/2006 (OJ L 190) -
Article 4 and Annex IA
• Information document accompanying shipments of waste as mentioned in Regulation
(EC) No 1013/2006 (OJ L 190) – Article 18 and Annex VII
• Movement document as mentioned in Regulation (EC) No 1013/2006 (OJ L 190) – Article 4 and Annex I
• Common Health Entry Document for Products (CHED-P) (as set out in Part 2, Section B of Annex II to Commission
Implementing Regulation (EU) 2019/1715 (OJ L 261))
• The declared goods are not concerned by Commission Decision 2007/275/EC and Commission Implementing Regulation
(EU) 2019/2007
• Common Health Entry Document for Products (CHED-P) (as set out in Part 2, Section B of Annex II to Commission
Implementing Regulation (EU) 2019/1715 (OJ L 261))
45

Optical
Frames for spectacles, goggles: 9003.90.0090
Frames and mountings for spectacles, goggles
or the like, and parts thereof. Other
Composition: Tortoise shell
Restricted:
• Declared goods do not belong to the Washington
Convention (CITES)
46

UPS World Ease after 1 January 2021
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
2 different shipments will need to be created
 UK volume and EU to be shipped separately
 Duty & VAT for the UK shipments will be paid in the UK
o Requisites: EORI & VAT ID in the UK
 Duty & VAT for the EU shipments will be paid in the EU
o Requisites: EORI & VAT ID in the EU
Import into the EU where part of
the volume is going to the UK
Import via the UK with distribution to
the other EU countries
Before After
47

Safety and Security: Entry Summary Declaration
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
You’ll need to make an entry summary declaration (ENS) before the goods arrive if you’re transporting goods:
• into Great Britain
• into Northern Ireland
• from Great Britain into Northern Ireland
• into the EU
The entry summary declaration will have safety and security information about your goods.
You do not need to make an entry summary declaration for goods if you are either:
- Bringing or receiving them into Northern Ireland from an EU country
- Moving qualifying Northern Ireland goods from Northern Ireland to Great Britain
You do not need to make an entry summary declaration from 1 January 2021 to 30 June
2021 for goods that are imported into Great Britain from the EU
48

When to submit an Entry Summary Declaration
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Not Final
Depending on transport type or shipping service used, there
are different time limits for submitting a declaration:
Shipment type
When to submit
(minimum timing requirement)
Maritime containerized cargo at least 24 hours before loading at the port of departure
Maritime bulk or break bulk cargo at least 4 hours before arrival
Short straits sea voyages at least 2 hours before arrival
Short-haul flights - less than 4 hours’ duration at the time of actual take-off
Long-haul flights at least 4 hours before arrival
Rail and inland waterways at least 2 hours before arrival
Road traffic at least 1 hour before arrival
49

Safety and Security: Exit Summary Declaration
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Traders who move goods outside the UK or EU need to make
an Exit Summary declaration if the goods are not covered by
a full export declaration and contain safety and security data.
The Exit Summary (EXS) declaration is a safety and
security declaration which was introduced with the Export
Control System (ECS) for the control of indirect exports.
Traders must present their EXS declaration to customs
before the goods are exported
50

Shipment type
When to submit
(minimum timing requirement)
‘deep sea’ containerized cargo 24 hours before the goods are loaded
‘short sea’ containerized cargo 2 hours before leaving the port
‘air traffic’ 30 minutes before departure from an airport
‘rail traffic’
2 hours before the goods leave Union territory
Road and inland waters traffic 1 hour before departure
When to submit an Exit Summary Declaration
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Depending on transport type or shipping service used, there are different
time limits for submitting a declaration:
51

Dual use
New requirements
From 1 January 2021:
A LICENSE
will be required to export to the EU
all strategic exports that currently
move license-free.
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Dual use are commodities that can have
both civilian and military applications
52

From January 2021:
Businesses exporting goods from GB to another
country, including the EU, may need to have
those exported goods returned to GB, or may
have their goods rejected upon import to the EU.
Return Shipments
Returned / Rejected Goods
Requirements to have these goods returned to GB will depend on:
• Whether the goods have been in free circulation in the UK prior to being exported
• Whether the goods were in free circulation in the EU prior to being returned
• Whether the goods have been rejected upon import to the EU
• And/or whether the goods are subject to additional requirements before they can
be imported to GB
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
53

What will happen to shipments on 31 December 2020?
Goods picked up before the withdrawal but reaching the EU border thereafter• What is the deal?
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
• Union goods which are moving as intra-Union movement from the UK to the European Union or vice
versa around the end of the transition period may still be treated as an intra-Union movement.
Union Status of Goods
• Entry summary declarations lodged at a customs office of first entry before the end of the
transition period will produce the same legal effects in the EU and the UK after the end of
the transition period
Entry summary declaration
• Pre-departure declarations that were lodged before the end of the transition period produce the
same legal effects in the EU and the UK after the end of the transition period
Pre-departure declaration
“However, the UK has informed Commission services that it is unable to maintain the existing Import Control System beyond 31 December;
other Member States will thus not be able to retrieve information on those ENS lodged in the UK before the end of the transition period.
Economic operators are therefore advised to consult with the Member States how to proceed”
54

Northern Ireland Protocol
NI will be part of the Customs Union of the United Kingdom• What is the deal?
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Northern Ireland (NI) will
remain aligned to a limited
set of EU rules
The EU’s Union's Customs
Code (UCC) will apply to all
goods entering NI, despite
NI not being part of the EU
UK authorities will control
the EU’s border
55

UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Effective at the end of the transition period
Movements from UK or third countries to NI
• Goods subject to customs supervision and may be subject
to customs controls
• Customs formalities apply
• Declarations have to be lodged and customs authorities
may require guarantees for potential or existing customs
debts
Movements from NI to the UK or third
countries
• Goods subject to customs supervision and may be subject
to customs controls
• Customs formalities apply
• Goods will usually be placed under the export procedure
Movements between EU and NI
• Goods move as an intra-Union movement (eg. from DE to
NI)  No customs supervision, controls or formalities
• Goods cross a third country or territory during their
movement  Customs formalities may apply, as is the
case today (e.g. placing the goods under a transit
procedure, provision of security and safety data, where
applicable).
The Protocol is a practical solution to avoid a hard border with Ireland
whilst ensuring the UK, including Northern Ireland, leaves the EU as a
whole, enabling the entire UK to benefit from future Free Trade Agreements
56

UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Movements of goods NI– EU ( including Ireland)
Should be treated as intra-Union
movements
Including for VAT, excise and related
SEED registration same intra-EU
In principle the data exchange with NI
should be similar to the data exchange
among same intra-EU MS (at least on
due time)
Use of CPC42 for imports via NI is
possible from a legal perspective
57

UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Movements of goods NI– EU ( including Ireland)
Rules applicable on movements
between EU MSs are the same as
the ones applicable on movements
between IE and NI
Criteria for defining the goods that
are considered at no risk of being
subsequently moved to the rest of
the Union:
• Must be established by a decision of the Joint
Committee
• Discussions between the EU and the UK
continue; the Joint Committee shall adopt
before the end of the transition period.
58

Import from GB into Northern Ireland
Goods not at risk
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
Import from Great Britain into Northern Ireland:
EU import duties apply
Exceptions:
a) Importers that meet the conditions for considering that it will not be
subject to commercial processing in Northern Ireland
b) Importers that meet the criteria for considering that is not at risk of
subsequently being moved into the EU
59

Goods moving from NI to GB
UK and EU
• Help us
• A quick recap
prepare?
• What’s next?
• In general, NI businesses will not be subject to export
or exit declarations when moving goods to GB
• Where goods are not in free circulation, placed into
voluntary special procedures, dispatched from Ireland
or where the trader seeks a specific facilitation,
export declarations are needed
60

Help us

Commercial Invoice
Avoid delays with your paperwork correctly prepared
https://www.ups.com/assets/resources/media/en_GB/Commercial-Invoice-Guide.pdf
https://www.ups.com/gb/en/services/international-trade/brexit-resource.page
and EU
• Help us
• A quick recap
prepare?
• What’s next?
62

Goods Description
Provide an accurate description of the commodities you are shipping
Phone
XYZ Smartphone-S20,
4.7 Inch display 128 GB,
White Prism
Auto
Parts
Automobile Brakes,
Windshield Glass for Automobiles
Consult the EU Guidance on acceptable and unacceptable terms
and EU
• Help us
• A quick recap
prepare?
• What’s next?
63

Import Duty Valuation Methods
Transaction value - price actually paid or payable for the goods when
sold for export to the customs territory of the Union - is the primary
basis for the customs value of goods
https://ec.europa.eu/taxation_customs/sites/taxation/files/06_taxud_ucc_customs_valuation_quick_info_en.pdf
Valuation Methods
SecondaryPrimary
Transaction value
of identical goods
Transaction value
of similar goods
Value based on
unit price in EU
Transaction value
method 1
Computed Value
Fall-back method
and EU
• Help us
• A quick recap
prepare?
• What’s next?
64

Assign Harmonized Tariff Codes to your products
In order to ensure a simplified, compliant, on time
shipping, please provide your product database to UPS
Compliance
Correct duty and taxes
are calculated
Reduced hold risks
Reduced time span
Benefits
and EU
• Help us
• A quick recap
prepare?
• What’s next?
65

Go Paperless ™!
UPS Paperless™ Invoice
enables customers to upload
the commercial invoice/invoice
data or other documentation
for international shipments
(while creating the shipping
label) in order to streamline
the customs clearance
process.
Minimise loss
of documents
Faster
customs
clearance
Eliminates
redundant
data entry
Upload any other
shipping
documents
Visibility of forms
in Quantum
View™ software
and EU
• Help us
• A quick recap
prepare?
• What’s next?
66

A quick recap

1. If you send shipments to the UK:
a) Do you have shipments with a value below £135?
b) If your buyer is a business, do they have a valid VAT and EORI id
c) Or – if you are the importer, do you have a valid VAT and EORI id
2. If you use the UK or an EU member state to clear and distribute goods to both
the EU and the UK, did you separate your supply chain and obtain
VAT/EORI/declarant in both EU and UK
3. Ensure your invoice is compliant, particularly the value and the commodity
4. Provide UPS with HS codes for your goods
5. Check the impact of the new UK tariff on your sales price
6. If you ship between the UK and the EU, check if your goods are subject to
inspections at the border. UPS will not accept shipments that have to be
presented at BCP’s.
7. Use Paperless
A quick recap
and EU
• Help us
• A quick recap
prepare?
• What’s next?
68

What have we done to prepare?

What has UPS done to prepare?
Contingency plans in place
Network adjustments Licenses and Bank
Guarantees
Product enhancements
to support UK as 3rd country
Staffing
Technology updates
Training
and EU
• Help us
• A quick recap
prepare?
• What’s next?
70

What’s next?

2021 and further ahead
Jan 1st
Brexit
Mar 15th
ICS2
Jul 1st
VAT Reform
Future of Customs
2040
2021
and EU
• Help us
• A quick recap
prepare?
• What’s next?
72

Thank you!
A big thank you to this great customs brokerage team for their
continuous efforts in preparing for Brexit, advocating for trade
friendly procedures with the UK and EU authorities, developing new
processes, preparing our systems, training our people, supporting
our customers in order to continue our excellent service to them.
and EU
• Help us
• A quick recap
prepare?
• What’s next?
73

Questions and Answers

Thank You For Your Participation
Stay Informed
Get the latest news and updates delivered to your inbox – sign up:
UPS Email Preference Center
Visit UPS’s dedicated Brexit resource page for European businesses:
https://solutions.ups.com/gb-brexit.html
Educational Credits
NCBFAA: CES/CCS/MES/MCS continuing education credits available
For more information contact Greg Maddaleni at
gmaddaleni@ups.com
Get In Touch
We are here to address any further questions you may have:
BREXIT@ups.com

Thank You

UPS Europe - Brexit - the time is now

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