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Best Practices for Importing into the European Union

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August 19, 2024 at 1:48 pm

Best Practices for Importing into the European Union

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.

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Posted

December 12, 2023 at 3:25 pm

How ACH Payments Can Streamline Your Business

How ACH Payments Can Streamline Your Business

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Set Up Automated Clearing House Payments with SiShips

How would you like to save time, improve cash flow, and increase flexibility all at no additional cost? If you haven’t set up Automated Clearing House (ACH) payments, now is the time to do so. Click here to start your application.

By embracing ACH, businesses and individuals can enjoy lightning-fast processing, ensuring payments and transfers are completed without the tedious wait associated with checks or wire transfers. These payments are secure and fully automated, providing peace of mind. Perhaps most significantly, you can pay all of your duties monthly in a single payment. This means ACH payments significantly reduce transaction fees, allowing for considerable savings, especially for shippers with regular and bulk orders.

Combined with the personalized tracking and reporting from our signature SiShips software, ACH payments offer a seamless, secure, and cost-effective solution for managing financial transactions in today’s fast-paced global economy.

How do Automated Clearing House Payments Work?

Enabling ACH payments is simple for importers of record that hold a continuous bond.

1. Sheltered International will request periodic monthly statement (PMS) approval from US Customs and Border Protection. This allows duty to be paid monthly.

2. Once PMS is approved, Sheltered International sends the client’s application to US Customs and Border Protection. Click here for the application.

3. Once the payer unit number (PUN) is received by the client, it should be forwarded to Sheltered International.

4. Once approved, any duty will be deducted from the client’s account directly each month by US Customs and Border Protection.

5. Sheltered International will provide an entry summary for each import alongside monthly statements.

PMS track entry activities throughout the month to provide a monthly statement. This structure also extends the payment window and is where ACH payments really start to shine. 

Normally, when paying per shipment, the importer must pay duties within 10 business days. However, PMS offers the importer 15 business days after the end of each cycle to pay. For example, the duties on goods imported between January 1 and January 31 will be summed at the end of the month. The monthly payment is then not due until the fifteenth business day of the following month—in this example, February 21. 

With this additional time, your business can extend cash flow by up to 54 days. The single payment not only makes it much easier to track your finances, but also offers significantly more control over your working capital.

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ACH Automated Clearinghouse Payments can make a world of difference for importers and exporters

Making Duty Payments a Breeze

As we can see, ACH payments can save you time and money in the short and long term. Unlike credit card transactions, which often come with high processing fees, or international wire transfers that can be prohibitively expensive, ACH transactions typically have much lower fees. For an importer dealing with large volumes of transactions, these savings can be significant, directly impacting the bottom line. Over time, the reduction in transaction costs can amount to a considerable sum, making it a financially prudent choice.

The predictability of ACH payments is a game-changer in terms of cash flow management. Unlike checks, which can have variable processing times, or wire transfers that may get delayed, ACH payments have a consistent processing schedule. This predictability allows for precise cash flow forecasting, enabling better financial planning and stability. 

Another added benefit of ACH payments is their security. ACH payments are governed by strict regulations, providing a secure framework that significantly reduces the risk of fraud. Each transaction is encrypted and monitored, offering a level of security that is hard to match with other payment methods. 

To streamline the process even further, our software SiShips generates a duty summary (7501) for each entry throughout the month for accounting and record-keeping. Once the month has closed, a final statement will be provided to review before US Customs and Border Protection pulls the duty on the 15th business day the following month. These reports can all be easily accessed through our software. That’s less time that you have to spend on accounting and more time you can devote to supporting your customers and growing your business.

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.

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