An Post Promises Help With UK Parcel Shipments
Online retail from Ireland to the UK has become more complicated. An Post is developing a new service to help vendors apply customs duties at checkout, writes Doug Casey
Brexit has brought about significant changes for e-commerce retailers shipping from Ireland to the UK (excluding N. Ireland). Every item containing goods sent through the post requires an online customs declaration form. This can be completed electronically using Click &
Post at anpost.com or at a post office. Larger business users can avail of the An Post digital Autolynk facility.
If the item is a gift with a value under €45, no customs charges will be applied in the UK. For items valued over this threshold and up to €150/£135, Irish businesses have to register with HMRC, the UK tax authority, and complete a VAT return directly with HMRC. For items over €150/£135 in value, ecommerce vendors in Ireland selling into the UK have the option of either including the customs charge as part of the shopping basket, or the customer can pay charges as applied by HMRC before delivery.
A full electronic customs data record for each item within a parcel is now the key requirement for any Irish business now shipping to Britain. Additionally, there are two critical data fields that Irish online vendors shipping to Britain need to be aware of:
● It is essential to include the country of origin for an item i.e. where it was manufactured, as the EU-UK Free Trade Agreement only guarantees relief on duties of items that originate from Europe.
● A commodity code is used to classify the type of product being imported or exported. According to Gilles Ferrandez, commercial sales director at An Post Commerce, these need to be absolutely correct as inaccuracies can cause delay.
E-commerce retailers shipping from Ireland must also have an EORI number. “You will also need to apply for a UK VAT number if you have not already done so, and you will be required to file a UK VAT return with HMRC,” says Ferrandez.
He adds that An Post has developed a new online portal so customers can capture the electronic data either online on anpost.com, in their local post office, or using their An Post business account. “Our team is developing a Delivery Duty Paid solution for e-commerce retailers. This will allow for the management of deliveries for items with a value between €150 and €1,000 to ensure a seamless delivery for goods being sent to Britain,” says Ferrandez.
“For UK buyers, this means that an estimated customs charge will be included within the price payable at the vendor’s website checkout. We will then be able to arrange the electronic clearance of these parcels for Irish retailers and they will be delivered as normal, allowing for increased customer satisfaction.”
Such a system is already in place for UK online vendors who use An Post as their delivery partner in Ireland. The company processes electronic data in advance for its UK online retailers, meaning that consumers in Ireland can pay any charges upfront in their shopping basket.
“The system is fully compliant to Irish Revenue and EU customs regulations and we are currently submitting the largest volume of electronic data to Revenue’s Automated Import System,” says Ferrandez. “Our bonded warehouse with 50 onsite customs staff allows our team to engage with Irish Customs on a daily basis.”
For consumers in Ireland buying from UK websites, packages received from the UK (excluding N. Ireland) are subject to Irish VAT and, if applicable, customs charges. VAT kicks in if the value of the items (including shipping costs) is €22 or more. Customs or excise duties may also apply when the total value of the purchase exceeds €150. Customs charges do not apply to goods that are made in the UK, though VAT can apply to purchases from the UK regardless of where the product was manufactured.