Brexit jargon buster

CN22 – This is a customs declaration form. It needs to be filled out and attached to items with a value up to £270, when they are sent to a destination outside of the EU. At the end of the transition period they will also be needed for items sent to EU countries.

CN23 – This is a customs declaration form. It needs to be filled out and attached to items with a value over £270, when they are sent to a destination outside of the EU. At the end of the transition period they will also be needed for items sent to EU countries.

CUSTOMS DUTY – A fee placed on gifts or goods sent to the UK from outside the EU. The duty is payable if the items are above a certain value. The charges are applied by Border Force on behalf of HMRC. At the end of the transition period, customs duties are expected to apply for goods coming into the UK from the EU.

EORI (ECONOMIC OPERATOR REGISTRATION AND IDENTIFICATION) NUMBER) – This is an ID code used to track and register customs information in the EU. Currently all businesses importing or exporting goods from countries outside the EU need one. At the end of the transition period, UK businesses may need an EORI number to trade with EU countries. Visit https://www.gov.uk/eori for more information.

EUROPEAN UNION (EU) – A political and economic union of 27 member states. The EU was established in 1957.

EXCISE DUTY – A fee currently payable on alcohol or tobacco imported into the UK from outside the EU. The charges are applied by Border Force on behalf of HMRC. At the end of the transition period, excise duties are expected to apply for goods coming into the UK from the EU.

FEE TO PAY CARD – A card delivered with a customer’s mail informing them that an item cannot be delivered until a fee has been paid. The fee may relate to underpayment of postage or, in the case of items coming into the country from abroad, the contents may be liable to VAT or duties.

GIFT ALLOWANCE/RELIEF - Private individuals/consumers can send gifts up to the value of £39 which will not be assessed for VAT on imports. Gifts cannot be sourced and sent direct from retail stores (actual or online). At the end of the transition period, HMRC has said the gift allowance will remain the same. For more information visit www.gov.uk and search for ”notice 143: : a guide for international post users”.

HMRC – Her Majesty’s Revenue & Customs. The government body responsible for charging and applying any taxes or duties on goods imported into the UK. These charges may include import VAT, customs duty and excise duty. The charges are applied by Border Force under the direction of HMRC.

HS CODES – These are an internationally standardised system of names and numbers used to classify traded products. The codes are required on customs declaration forms CN22 and CN23 for goods sent to other countries. Each commodity group is identified by a six digit code. The system was developed by the World Customs Organization and is used by over 200 countries as a basis for their customs tariffs.

INCOTERM - Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC). These relate to international commercial law. They are widely used in international commercial transactions or procurement processes and their use is encouraged by trade councils, courts and international lawyers. They are there to protect buyers and sellers with an international standard and regulate the payment terms for the receiver of the goods. Find out more here: https://iccwbo.org/resources-for-business/incoterms-rules/   

IMPORT VAT – A fee currently paid on gifts and goods sent to the UK from outside the EU. The rate applied depends on whether the items are gifts or commercial goods, what they are and their value. The charges are applied by Border Force on behalf of HMRC. At the end of the transition period, the rules on import VAT for goods coming into the UK from the EU are expected to change.

NORTHERN IRELAND PROTOCOL – The agreement between the UK and the EU setting a framework for Ireland and Northern Ireland in recognition that the UK’s withdrawal from the EU presents a unique challenge to the island of Ireland.

POSTAL AUTHORITIES – The official organisations responsible for licensing and regulating postal providers in any given country.

UPU – The Universal Postal Union is an international organisation that helps co-operation between Universal Service Providers (USPs) in different countries. It sets rules for international mail and provides a common framework for all postal operators to operate within.

WCO – The World Customs Organization is an international organisation. It works to develop and implement modern customs systems and procedures around the world.

WITHDRAWAL AGREEMENT – An agreement that sets out exactly how the UK would leave the EU in an orderly manner.

WORLD TRADE ORGANISATION (WTO) - A forum for governments to negotiate trade agreements and settle trade disputes. It operates a system of trade rules, which would apply automatically to UK trade with the EU post-Brexit as it does for other countries the EU has free-trade deals with.