United Kingdom Export: Basic Process
As of January 31, 2020, the United Kingdom (UK) officially withdrew from the European Union (EU), and Brexit (a combination of the words Britain and exit) is the term used to refer to the UK's withdrawal. The UK is no longer part of the EU Customs Union or European Single Market. After Brexit, a free trade agreement (FTA) between the UK and EU entered into force on May 1, 2021. Known as the EU–UK Trade and Cooperation Agreement, it provides for free trade in goods and limited mutual market access in services, as well as cooperation in a range of policy areas, transitional provisions about EU access to UK fisheries, and UK participation in some EU programs. The complete FTA is available at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/982648/TS_8.2021_UK_EU_EAEC_Trade_and_Cooperation_Agreement.pdf. Due to Brexit, the information contained in this article may not be accurate. As more information becomes available, this content will be updated.
Export Protocol
The customs authority in the United Kingdom is known as Her Majesty’s Revenue and Customs or HMRC (www.gov.uk/government/organisations/hm-revenue-customs/services-information).
Documentation Package
The exporter prepares a documentation package consisting of the customs declaration, known as the Single Administrative Document or SAD (UK Form C88), and accompanying documents, which is submitted to HMRC. Traders exporting articles for which a customs declaration is not required must submit an Exit Summary Declaration (EXS) that includes the articles’ safety and security data (i.e., number of items, consignor, consignee, weight, etc.), along with the other required documentation.
Single Administrative Document or SAD (Form C88 in the UK)
The exporter or its representative is responsible for declaring articles to be exported from the EU on a SAD. The SAD and all accompanying documents are submitted to the customs authority in the EU country of export (which is the location where the articles are packed/loaded and customs controls are performed, even if other EU countries/ports are visited before ultimately leaving the EU). In the case of exports out of the UK, the SAD is submitted to the HMRC either electronically (see Electronic Filing below) or manually to the HMRC National Clearance Hub.
Upon filing and validation of the SAD, a unique 18-digit alpha-numeric reference number, called a Movement Reference Number (MRN), is automatically assigned by HMRC to the exporter.
Exit Summary Declaration (EXS)
If required, the carrier is responsible for submitting the EXS and any accompanying documents to the customs office of export. A third party (such as the exporter) may file the EXS with the knowledge and contractual consent of the carrier, but must include the carrier’s EORI in the submission as well as its own EORI. Ultimately the carrier is held responsible for submission.
Most exports from Great Britain to European Union (EU) member states will have had their safety and security requirements met through a combined customs export declaration, which contains safety and security information. The person(s) normally responsible for submitting a combined declaration is the exporter of the goods, or their representative.
An EXS is required in cases where the export consignments are not covered by a combined export declaration.
Safety and security information (through either a combined export declaration or EXS) will be required on all movements out of Great Britain to the EU, unless permanently exempt. Safety and security export declarations are not required for goods moving on direct shipping services from Great Britain to Northern Ireland, or for goods moved under common transit procedures from Great Britain to the Republic of Ireland, where the goods are destined for Northern Ireland. They may be required—in an extremely limited number of cases—for movements out of Northern Ireland, if not qualifying for unfettered access or supported by an export declaration.
An EXS is required for the following categories of shipment:
- Empty pallets, containers, and vehicles being moved under a transport contract including any empty reusable packaging such as stillages, roll cages etc. (A transport contract, or contract of carriage, is an agreement between a carrier and shipper or passenger, setting out each party’s duties and rights.)
- Goods that have remained in temporary storage for more than 14 days
- Goods that have remained in temporary storage for less than 14 days, but the import safety and security declaration details are unknown, or the destination or consignee has changed
- Goods that are moved under transit using either a transit accompanying document (TAD), transit security accompanying document (TSAD), or TIR Carnet document, where there is no separate combined export/safety and security declaration
Documentation Review
The HMRC reviews the documentation to check for:
- Authority of the entity to export
- Consistency of information across documents
- Legality of the proposed export
- Proper product classification
The HMRC also:
- Establishes whether to order an inspection of the shipment
- Computes duties, taxes, and other fees
- Refers documentation to other governmental agencies for exports of controlled products
- Establishes any special requirements for final clearance of the shipment
Most exporters engage the services of a logistics firm or a customs broker to handle export documentation and procedures.
Time to File
The SAD or EXS, as required, must be submitted within the following timeframes:
- Containerized maritime cargo: At least 24 hours before commencement of loading into the vessel that will carry the articles outside the EU
- Bulk/break bulk maritime cargo: At least four hours before leaving the EU port
- Short sea shipping: At least two hours before leaving the EU port
- Air traffic: At least 30 minutes before the departure of the aircraft
- Rail and inland waterways: At least two hours before departure from the EU customs office of exit
- Road traffic: At least one hour before departure from the EU customs office of exit
Electronic Filing
Exporters are required to file the SAD electronically through the National Export System (NES), which operates via HMRC’s Customs Handling of Import and Export Freight (CHIEF) system (www.gov.uk/guidance/apply-to-access-customs-handling-of-import-and-export-freight-c1800), the UK’s nationwide computer system that electronically controls and records the country’s international cargo movements. As of March 31, 2023, the CHIEF system will be replaced by the Customs Declaration Service (CDS), the government's new electronic system for handling customs declaration processes. HMRC is implementing the system transition from CHIEF to CDS in several stages, with final deadlines for import declarations in September 2022 and export declarations in March 2023.
Export License, Commodity Clearance, Certificate of Exemption
Export license(s) and/or commodity clearance(s) may be required for certain restricted articles. A certificate of exemption may be obtained for certain prohibited, banned, or controlled articles. Any required license, permit, etc. should be submitted together with the SAD. To determine what, if any, export license(s) and/or clearance(s) are required for a shipment’s export from the UK, exporters can use the Integrated Online Tariff (www.gov.uk/trade-tariff). (See the Restricted and Prohibited page for details.)
Export Documentation
All exports of physical articles require the following basic documentation:
- Single Administrative Document (SAD) (Form C88) or Exit Summary Declaration (EXS)
- Commercial Invoice (CI)
- Freight Document: Bill of Lading (B/L), Air Waybill (AWB), Rail Waybill, or Road Waybill
- Packing List (P/L)
Some exports may require specialized documentation:
- Export Accompanying Document (EAD)
- Certificate of Origin (CoO)
- Insurance Document
- Export Licenses, Permits, Certifications
- Documents as may be requested/required by the subsequent importer
- Documents as may be required by the terms of a bank letter of credit (L/C) or documents against payment (D/P) provision
Restricted and Prohibited Articles
The export of restricted and prohibited articles may require an export license or clearance from the UK’s Department for International Trade's Export Control Joint Unit (ECJU) and/or another governmental agency. Restricted articles include certain arms and armaments, certain technology products, plants, animals, food products, natural resource products, currency, and radioactive materials. A certificate of exemption may be obtained for certain prohibited, banned, or controlled articles.
Prohibited articles include certain plants and animals, especially those of endangered species. Some restricted and prohibited articles may need to be appraised prior to export in order to determine if they are exportable. (See the Restricted and Prohibited page for further information.)
Inspection
Upon submission of the SAD or EXS, the CHIEF system automatically identifies articles that require documentary and/or physical inspection.
Exported articles may be subject to inspection when:
- The seal on the shipping container has been tampered with
- The container is leaking
- The shipment’s details in the shipping documents differ from that in the manifest
- An alert or a hold order has been put on the shipment
Customs may also perform random spot inspections.
Payment of Duties and Taxes
Articles to be exported are released once all taxes and duties are paid or secured to be paid. For articles that require value verification, appraisal, or classification in order to determine the amount of duty and taxes payable, such articles will be cleared by customs only after the exporter has discharged the obligation to pay assessed duties and taxes. UK exporters can use the Integrated Online Tariff (www.gov.uk/trade-tariff) to classify articles to be exported and determine any applicable duty charges or VAT. Any assessed duties, taxes, and fees must be paid or secured to be paid before a shipment will be released for export.
Export Regimes
The proposed export of certain arms, armaments, dual-use technology, and nuclear materials and equipment are likely to be covered by one or more Multilateral Export Control Regime. World Trade Press recommends consulting with logistics and legal specialists for more information.
Clearance and Release of Shipment
The customs office of export releases the shipment for export by issuing an Export Accompanying Document (EAD), which contains the shipment’s MRN. On release of the shipment, the customs office of export will transmit the necessary particulars of the export movement to the declared customs office of exit.
The office of export is the place designated by customs authorities where the customs export processing takes place. Normally, this is the office close to where the exporter or its representative is located or where the articles are packed/loaded. This is where the customs declaration (SAD) is lodged, where risk analysis is completed, and where the MRN is issued to the exporter. After completing all necessary procedures, the office of export issues an ‘anticipated export record’ message to the office of exit. After the articles are released by the customs office of export, the articles and a copy of the SAD are presented to the customs office of exit.
The customs office of exit is the last customs office visited before the articles leave the UK customs territory (e.g., the port, airport, or railway station). If an EXS is lodged, it is the office where all exit procedures are carried out before releasing the shipment. For articles covered by a SAD, it is the final location where articles are presented before they leave the customs territory of the UK. In the UK, “presentation” is done by electronically notifying customs of the shipment’s arrival at the port via the CHIEF system. When the shipment is released by the office of exit, i.e., given permission to progress (P2P), CHIEF sends an electronic message back to the exporter.
Where the customs office of export is the same as the customs office of exit, no EAD is issued and the export procedure is completed by that one office.
Export Support
HMRC provides a searchable online manual of export procedures at www.gov.uk/hmrc-internal-manuals/export-procedures. For additional information, contact HMRC using the electronic form available at www.tax.service.gov.uk/shortforms/form/CITEX_CGEF?dept-name=&sub-dept-name=&location=43&origin=http://www.hmrc.gov.uk.
Note: The above information is subject to change. Exporters are advised to obtain the most current information from a customs broker, freight forwarder, logistics professional, or the local customs authorities.
Sources: Her Majesty’s Revenue and Customs or HMRC (www.gov.uk/government/organisations/hm-revenue-customs/services-information)
Article written for World Trade Press by Brielle Burt and Brittony Hubbard.
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