Since the new rules have come into place under the Trade and Cooperation Agreement (TCA) with the EU, many businesses have been handing over the responsibility of their end-to-end movement of goods to a third party. This has come at a higher cost to some businesses. As things start to settle and businesses get used to the new way of trading with the EU some are now looking at how to make financial savings.
Here are 5 things you can do that will save you money in the long run:
1 – Bring your declarations in-house
One of the biggest areas you can bring in-house is your customs declarations. This will save you money but customs declarations are complicated, so it’s recommended that you work with a fully trained customs broker who will declare your goods for you. Make sure you get the right advice on what works for your shipments.
2 – Understand your Incoterms – Know your Ex Works from your DDP
The Incoterms dictate where the responsibility moves from the buyer to the seller during the transit process. Depending on which Incoterm you use, you may be responsible for clearing the goods as they leave the UK and entering the destination country or vice versa. Not knowing your Incoterms could cost you more than you were expecting.
3 – Know your origin
Make sure your team are fully up to speed on the preference rules of origin and know how these impact your business. For goods going to the EU a simple statement of origin on your invoice means you can claim preference on your goods which are of UK origin. Check you are using the right commodity code for your product and that your goods meet the rules of origin.
4 – Have the correct paperwork
At the start of new way of trading with the EU, the wrong paperwork was a big factor in delaying goods moving through customs. Your local chamber of commerce certifies the export documents on behalf of HMRC and can help you to get the right paperwork. You will also need to provide a formal undertaking form for the chamber to certify your documents. Renewing this on an annual basis will help mitigate hold ups.
5 – Train your team
Knowledge is key and in the ever-changing world of international trade with shifting regulations it’s vital that your team’s skills are kept fresh, keeping your staff and your business compliant and avoiding any additional charges, penalties or fines.
Chambers Wales are here to support businesses and organisations at every step of moving goods, from certification and customs brokerage to training and accessing new markets. Get in touch with email@example.com to find out more about what we can do to help your business grow.