EU Resellers Update: Post-Brexit Shipments

January 28, 2021 / News

Brainboxes has a long standing commitment to our customers in the EU, our first international reseller was based in Brussels, we first started shipping to the European mainland over 30 years ago. Post Brexit we wish to ensure continuity of supply to our customers, and as simple process as possible for shipments.

Current state of shipments due to Brexit

At the moment most shipments between the UK and Europe are experiencing delays. These delays are due to Brexit and the new procedures introduced at the borders.

 

Brainboxes recommendations for EU customers

Brainboxes has shipped to a number of EU customers and now recommends the following procedure to ensure the smoothest shipping process. Brainboxes Require the following information

 

Item Reason More information
EORI number An EORI number is a
standardised identity number business across the EU use. It will help
identify EU businesses at customs checks.
see this article for
more information on what is an EORI number and how to get one
Custom contact: email, name, phone When a border check occurs, if there are any issues the
delivery company will contact you the customer to resolve.
Carrier account number If possible Brainboxes will use your carrier account
number, as this is the simplest way to ensure all the information is
available at the border. Brainboxes preferred carrier is UPS, however
any carrier is possible.
Anyone can sign up for UPS account see here

 

Brainboxes will ensure the tracking number is sent to you and both Brainboxes and yourself will be sent email notifications if any exceptions occur.

 

It is important, especially during the first few months of this new process that both Brainboxes and customer monitor shipments closely. New procedures in place at the borders will take time to become normal.

 

How will the charges for goods change?

Pre-Brexit: Brainboxes would ship with our carrier, the customer would pay for the cost of goods plus shipment to Brainboxes (not including VAT), using EU selling regulations VAT was not included in the sale when selling B2B and a valid EU VAT id.

Post-Brexit: Brainboxes will ship with our carrier, the customer will pay for the cost of goods plus shipment to Brainboxes (not including VAT). At the border the customer must pay VAT to their government and border fee. Then the customer can reclaim VAT through their tax system in the normal way.

The incoterm used is CPT (Carriage Paid To) similar to previous incoterm DDU (Delivery Duty Unpaid). This is Brainboxes standard contract incoterm when shipping worldwide.

This new arrangement, as with any new procedure, requires changes by both parties to ensure smooth continuity of supply. Brainboxes has AEO accreditation (which means we are trusted at borders as a manufacturer of goods) we have had this approval for 11 years and we ship world wide. We will continue to monitor the situation closely and update customers.

 

What problems can occur?

For the short term a big issue is delays. Please allow your shipment up to 5 working days extra. However in the medium term this should revert to normal.

 

The first time a shipment is made to a customer please ensure that the process is monitored carefully, the carrier will get in touch with the customer to finalise VAT payment. Many customers have deferred VAT accounts in place with their government which means this transaction happens seamlessly. However if the carrier has to wait too long for a response from the customer (typically longer than 10 days), the carrier will ship the goods back to Brainboxes and charge us for 2 shipments plus border fees. Brainboxes will charge these costs back to the customer.

 

AEO Certificate

 

We wish to reiterate our commitment to our European friends and customers. Brexit has now occurred and each day we have more clarity on the new procedures for interacting with the EU.

We will continue to work with you going forward to maintain our strong relationships.