Follow These Guidelines For a Smooth Shipping Process
Importing goods into the European Union (EU) can be complex. There are many intricacies that, especially for businesses unfamiliar with EU regulations and customs procedures, may seem unnecessarily complicated. In the shipping industry, time is money and even a one day delay from a misentered number can translate to big losses.
However, while EU systems and forms may seem overwhelming, they are relatively straightforward when you have accurate information. To help streamline the process, it’s important to follow best practices and have all of your documentation filled out accurately.
Here at SiShips, we have been working with domestic and international freight forwarders for decades. Drawing from that experience, we’ve put together this list of tips and recommendations to make your EU import process go down as smoothly as a sip of chardonnay on the Seine.
Ensuring Accurate Documentation
1. Accurate Party Information
The most common issue we see in the customs clearance process is incorrect or incomplete party information on the commercial invoice and packing list. It is crucial that the sold-to party listed on both documents matches the actual purchaser of the goods.
This is not to be confused with the ship-to party. If the sold-to party and ship-to party are different, be sure to include the actual receiver’s name and address.
2. Provide Contact Details at the Fulfillment Company
This sounds obvious, but double check the name, telephone number, and email address of a contact person at the fulfillment company are included on your forms.
Why is this important? If there are any issues during the import, you want it to be quick and easy for customs officials to reach someone who can supply an answer.
3. Include Harmonized Commodity Numbers
The harmonized commodity number is a classification code used to identify goods. Customs officials in particular care about this number because it is how they determine duties and taxes.
Both the commercial invoice and the packing list should clearly indicate this number. Failure to provide the correct commodity number can lead to a misclassification, resulting in incorrect duties being applied or, worse, goods being held at customs.
4. Specify EORI and VAT Numbers
The EORI (Economic Operators Registration and Identification) number and VAT (Value-Added Tax) number of the party responsible for customs clearance are critical pieces of information. These numbers must be included on both the commercial invoice and packing list.
An error with either of these numbers can lead to significant delays.
5. Accurate Commercial Invoice Total
At this point, it is probably clear that the biggest flag for customs is discrepancies in the value of goods. Customs duties and taxes are calculated based on the commercial invoice total, so it is important to ensure its accuracy.
Any funny business here can lead to hefty delays and penalties.
Streamlining the Import Process
6. Detailed Packing List
A comprehensive packing list is another key element in facilitating smooth customs clearance. This list should include the number of pieces in the shipment and the weight of each piece.
For pallet cargo, follow standardized documentation practices to make sure the information is easy for customs officials to verify.
7. Import Broker Information
If you have an import broker in Europe or the U.K., provide their full contact details on the shipping documents. An import broker can be invaluable when navigating EU customs procedures, especially for businesses unfamiliar with the process and working from a different time zone.
Your goods can still be delivered without a local import broker, but it is advisable to notify your logistics provider so they can be ready to assist if needed.
8. Distribution Center Requirements
Before shipping, check with the distribution center where the goods will be delivered for any additional requirements. These requirements can include documents such as an agreement to provide fulfillment center services, links to where the goods are available for sale, and proof of payment to your supplier.
Meeting these requirements upfront will help prevent delays upon arrival. In shipping, as with most things, being proactive is a great way to set yourself up for success.
Maximizing Financial Efficiency
9. VAT/Taxes Reclamation
Who doesn’t love getting money back?
If your EORI and VAT numbers are correctly set up, the VAT or taxes paid upon the goods’ arrival can be reclaimed. However, it’s important to note that import duties cannot be reclaimed. This is just another reason why having your documents in order helps save you time and money, literally.
SiShips Gives You the Advantage
SiShips combines expertise with state of the art software to bring you high quality domestic and international shipping solutions. We put the shipper in control, offering efficient and cost effective ways to ship your product.
To learn more about managed transportation with SiShips or to view a demo of our software, contact us today.
