A British company must do, and obtain, the following to trade with a company outside Britain.
- VAT Number.
- EORI Number (This will work as the British REX Number).
Apply for a EORI number. - Duty Deferment Account. This is a bond you do with HMRC, so you can import goods from countries which are not members of the EU and other REX Countries.
- Note. There can be custom on some specific Tariff Codes – Tariff code is equal HS Codes which are the standardized commodity codes.
- Advantage. You can custom cleared to this Account number, and that means that you can use the goods upon arrival.
- Disadvantages if you do not have. You must clear and pay Duties before delivery can be made, this may lead to longer lead time and increased costs.
- PVA - Postponed VAT Account. This is an account fix which the British government has introduced, so the British Companies can have a VAT account with HMRC, so they can clear VAT on a monthly or Quarterly base. This means that this money is “only” money in the accounting world. If companies use this PVA – Custom closing will be done smoothly and quickly in most cases.
- Advantage. You can receive goods straight after Custom closing.
- Disadvantages if you do not have. You must clear and pay VAT before delivery can be made, this may lead to longer lead time and increased costs.
Remember that the trade Agreement between Britain and EU has given many benefits in trading, however, some new aspects must be taken into consideration. There will be Duties on commodity which does not have EU or Rex Member preferential Origin. The custom rates will most like be according to the WTO Rates (Most Favored Rates - MFN) if there is not any specific trade agreement.
Furthermore, all goods coming into Britain must be paid a 20 % import VAT, this is not anything to do with trade agreements, but because Britain is no longer of the European Market conditions of the Free flow of good with EU. This is not a European Issue, but a local issue which is decided and controlled by the British Government
