Customs Brokerage

Wide range of customs services

Montgomery Transport Group provides a wide range of customs services to its broader customer base.

With a team of in-house experts on hand to explain and de-mystify the often-complex world of customs regulations you can rest assured that, whatever your needs, we are on hand to offer guidance and support throughout the process.

Below are some of the more common areas we are often asked about, to help you understand the processes and regulatory compliance.

Quick Links

What is an EORI

EORI or Economic Operators Registration and Identification number is a registration for parties who trade internationally and exchange information with Customs authorities EORI numbers identify who the importer of record and who exporter of record is for each declaration.

It is advisable to include EORI numbers of buyers and sellers on all Commercial Invoices to assist in movement of goods across International Frontiers.

Apply for FREE essential identification numbers

Apply for UK EORI number

Apply for Irish EORI number

Register your company on the TSS

Apply for the UK Trader Scheme

What are Commodity
Codes?

Where EORI numbers identify companies, commodity codes are used to identify products to customs and other regulatory authorities.
An import commodity code is a 10 digit number and stems from agreements by WTO members. Some commodities require additional 4 digits TARIC codes e.g. Measuring Codes or Anti-Dumping duty codes.
While EU & UK export commodity codes are only required to 8 digits it is recommended to provide 10 digits, particularly for use in EU imports.

Commodity codes can also be referred to as:

Tariff headings
Tariff codes
Taric codes
HS codes

It is the responsibility of the Importer of Record on a Customs Import Declaration to provide the correct codes.
NB: For DDP the Importer of Record is the Seller!
For an Export Declaration; the responsibility is normally with the seller but depends on Incoterms and other Contractual Agreements.

Commodity codes primarily ensure declaration of the correct goods and products which means:

Identifying the correct level of tax due
Helping to identify “At Risk” goods
Checking safety and security implications and if other regulatory certificates are required e.g.
phytosanitary
Identifying embargo and prohibition measures
Collection of data for National Statistics

In Preparation start by identifying the correct commodity codes for every one of your products.

Ask for advice on classifying goods

Finding the right code isn’t always easy. Always ask for advice on classifying your goods if you are unsure:-

Ask HMRC for help classifying your goods
https://www.gov.uk/guidance/ask-hmrc-for-advice-on-classifying-your-goods

https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/what-is-common-customs-tariff/bindingtariff-information-bti_en

Search for Commodity Codes

Search commodity codes here:-

https://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en

https://www.gov.uk/guidance/finding-commodity-codes-for-imports-or-exports

Determining the level of VAT

Once you have your commodity codes you should determine the level of VAT and if any import or export licences are required. As an example, most milk is VAT free but if you process it into ice cream it is subject to VAT because it is classed as a luxury item. However, there are exceptions to this rule, so always check and do not assume.

Import or export licences may be required

Please seek the correct information on this. You can use these websites to find out if you require a licence:

NI (DAERA)

ROI (DAFM)

UK Licences

EU Licences

GB IPAFFS

Necessity of Incoterms®

Incoterms® help facilitate International Trade by Clarifying who is responsible for transportation and insurance costs. They provide standardised and agreed reference points regarding transfer of ownership, transfer of risk, insurance, mode of transport and cross-border taxes between a Buyer and a Seller in a Sales/Shipping Contract.

Incoterms® have three stages in a Transport Journey:

Pre-Carriage

Main Carriage

Onward Carriage

These stages split into 11 Incoterms® but 4 of these are specific to Ocean Freight transport (LCL / FCL) only.

The 7 that relates to All Modes of Transport; including Carriage by Road are:

EXW

EXW-Works

FCA

Free Carrier

CPT

Carriage Paid To (Named Place)

CIP

Carriage Paid & Insurance to (Named Place)

DAP

Delivered at (Name Place)

DPU

Delivered at (Named Place) Unloaded

DDP

Delivery Duty Paid

What do Incoterms® cover?

Incoterms® are normally recorded on a Contract of Sale but to necessitate International Transport, they should also be stated on all Commercial Invoices pertaining to all Consignments.

In some agreements, contractual parties have added cavets to Incoterms® to assist in the movement of goods through borders.

Transfer
of Risk

Separation
of Costs

Payment
resolution

Mode of
Transport

Insurance

Dispute of
Payment

Delivery
Points

Customs
Duties

Arbitration

(Only if specified in Sales Contract)

What does my business need to do to meet the imminent changes to EU/UK Trade?

Remember Incoterms® are not a complete Contract of Sales, but a very important part of it.

What are Commercial Invoices?

A commercial Invoice contains pertinent information about goods in Carriage and acts as a Bill of Sale between a Buyer and Seller.

It should include:

Addresses of seller/shipper & buyer/receiver
Credit terms and methodology for payment
Currency of transaction
Date of invoice / transaction
Description of what is being transported
EORI or tax ID numbers
Packages, pallets, crates etc

Other information required to allow the goods to cross international frontiers e.g. Commodity (Tariff) Codes & supplementary units & country of origin
Net weight of each product/item Gross weight of each product/item
References numbers & important transaction numbers e.g. part or purchase order numbers
The Incoterms (and freight charges for pre-DAP terms)

It might include:

Uses

The Commercial Invoice is the key document for carriage of goods, it is not only Customs Brokers who require this document.
Exporters might use it to assist with Loans, Grant programs, & Reclamations.
It is an important supporting document for any potential insurance claim where a suitable policy exists.
If a letter of credit is required, the buyer’s bank will require to examine it before release of payment.
Customs Authorities will need it for calculation of potential duties and taxes, determining the true value of the goods, inspection purposes and trade statistics.
Used along with an Inspection Certificate it can prove the quantity and quality of a consignment.
Can be used to raise/initiate other Official, governmental certificates and permits and in conjunction with these for Inspection purposes by other Regulatory Authorities.

Preparing the Form

Paying attention to detail while setting up a Commercial Invoice system will be rewarded. Your invoice must be prepared exactly as you and your customer agree, and as per the proforma invoice if one has been produced. This includes intricate details e.g. whether you should prepare the commercial invoice on your company letterhead or not.

A proforma invoice is usually one generated when for example an order is transmitted to a supplier. A Commercial Invoice will detail the goods after they are prepared for transport, and that will omit things like parts that have failed quality control. It is a pre-advice document which serves as an Instruction for Action, it can be used to define information, to initiate the Negotiation Process and it outlines the expectations for an Export Sale. This widely recognised document can serve as a quotation and can contain a validity period as well as estimated transport costs. It can easily be converted to a Commercial Invoice and can be used by banks where they are acting as an Intermediary.

Any questions?

If you would like to find out any information, give us a call on 02890 849321

Our services

Distribution
Services

Extensive Pallet & LTL Distribution Network throughout the UK & Ireland; operating from multiple depots around the UK and handling in excess of 1,500 consignments per day.

Freight
Management

Worldwide operations of Land, Air and Sea movements operating as a NVOCC allowing Montgomery Transport Group to service every customers entire scope of logistical requirements.