UPDATED: The Government has admitted that British companies trading with Europe will have to fill in an extra 215 million customs declarations a year post Brexit.

And this post Brexit customs bureaucracy burden will cost British businesses around £7bn a year, according to Government officials.

The Government is poised to announce another £50m to support the hiring and training of some 50,000 new customs officers, as well as buy the IT infrastructure to cope with the 215m new customs declarations. This is on top of £84m provided so far.

However, insiders say the whole scheme has been ill thought out and does not leave nearly enough time to train customs officers property. The £50m figure works out at just £1,000 to recruit and train each new agent, a process which can take anything up to one year.

Duncan Buchanan of the Road Haulage Association said that there are not nearly enough new customs agents in place before the December 31 Brexit deadline. Buchanan said there was not enough time to train agents to the right standard, potentially causing chaos at borders.

And a report from the Institute for Government thinktank said that the £84m provided by Government to date to train new customs agents so far will not be enough to cover the number of agents required to handle 215m new pieces of customs clearance paperwork.

In 2018, former HMRC head Jon Thompson estimated that the cost of each customs declaration could be £32.50 each but that could go as high as £55.

You will need an EORI number

UK businesses trading with EU countries need to obtain an Economic Operator Registration and Identification (EORI) number if they do not already have one. UK businesses trading with the EU should (if they do not already have one) apply for a UK EORI number from HMRC, to ensure they can still move their goods into and out of the UK post-Brexit.

See also: What is an EORI number and how to get or check one

You can apply for a UK EORI number here.

You will also need an EU EORI number

You will also need an EU EORI number when you export to the European Union. You should apply for an EU EORI number from the customs authorities in whichever EU state you deal with the most, to ensure you can still move your goods into and out of the EU. Get this from the customs authority in the EU country where you submit your first declaration or request your first decision. You can find a list of EU customs websites here.

Similarly, EU businesses intending to continue trading with the UK will need to apply for a UK EORI number post-Brexit (though unlike the European Commission, the Government has indicated that there will be a post-Brexit grace period, in which EU businesses can continue using their EU EORI number to bring goods into the UK while they wait to get a new UK number).

Relieving the red-tape burden

One way to relieve the customs burden for businesses will be to use a customs agent to process your Brexit paperwork.

According to the Institute for Export and International Trade (IOE) half of the 1,000 exporters surveyed in a straw poll said they intended to use intermediaries post December 31, while the other half said they would handle their own submissions.

What does a customs agent do?

A customs agent – also known as a customs broker or import broker – works to make the import and export of goods run smoothly, by facilitating the clearance of goods through customs.

Customs agents are experts in international trade – it’s their job to keep abreast of the changing rules and regulations, and make sure that their clients have all the paperwork and licenses they need to import goods to the UK.

What’s the difference between a customs agent and a freight forwarder?

It’s helpful to understand that there are both freight forwarders and customs agents working in many markets. Customs brokers typically deal with the import and export side of international deliveries, including commodity codes, and EORI requirements – while freight forwarders are specialists in the logistics. However, many freight forwarders can also act as customs agents, and pick up the end to end process of moving your goods including both logistics and customs requirements.

The role of the customs agent

A customs agent will work with small business owners to check that the documentation, and where necessary, licenses, are in place for the goods they are bringing into the UK. They’ll also make sure that the correct duty and taxes are paid, to reduce any delays.

Their services can include any of all of the following:

• Checking the classification and valuation of your goods, and making sure you use the right commodity codes
• Liaising with government agencies and customs authorities on your behalf.
• Advising on any necessary licenses for import of restricted or hazardous goods
• Preparation and submission of documents which have to be filed to clear customs processes
• Helping arrange correct payment of import duties and VAT as necessary

One of the big advantages of using a customs agent is that they can help you navigate a complex and changing set of import and customs regulations. More changes to the customs code can be expected as Brexit looms.

For example, a customs agent will ensure you have all the correct paperwork in place for importing into the UK – such as your EORI number. They’ll make sure the shipment is labelled with the right commodity codes, and all the necessary documents and licences are in place. And this will mean that your shipment clears customs into the UK without delays, and with no worries about paying over the odds in import duty or being hit by a fine because of missing paperwork.

>See also: Customs brokers: Everything you need to know

What are the advantages of using a customs agent?

• Peace of mind – your customs agent will ensure your shipment is completed according to the current law. By hiring in this expertise you don’t need to learn it yourself, or employ someone in house to specialise in the area
• You can deal solely with your customs agent, rather than having to speak to several different government agencies individually
• Avoid overpaying duty or VAT – and remove the risk of underpaying and then facing fines and additional charges later
• Your goods won’t be released by UK customs until all the duty and VAT is paid, and documentation is in order. Using a customs agent can reduce delays and keep your business moving
• Many customs agents also offer additional services, such as tracking your delivery as it moves from the point of origin

Where can I find a customs agent?

The Government has published a list of authorised customs agents ahead of Brexit, and that list is continually updated.

What is a freight forwarder?

If you’re already doing business abroad, you’ve likely heard of freight forwarders before. They promise to take much of the stress out of international shipping – and deal with all aspects of the transportation and delivery of your goods. In most cases they’ll also deal with customs clearance. But do you really need to use a freight forwarder for your shipment? Or is it an unnecessary waste of cash?

A freight forwarder is an individual – or, more likely, a company – which arranges for goods to be transported from one place to another.

While this might sound straightforward enough, there is in fact a whole lot which goes on behind the scenes to make sure that product delivery you’re expecting makes it safely from your supplier to your office. A good freight forwarder, however, will make the process look seamless, efficient and simple.

>See also: Freight forwarder: Everything you need to know

What does a freight forwarder do?

A freight forwarder will take control of getting your shipment from its origin to your store, home or office. That can involve any or all of the following steps:

• Arranging transport from the origin – such as your supplier’s factory or warehouse – to the port or airport for shipment
• Preparing documents, licenses and all relevant paperwork for export at the point of origin
• Negotiating, booking and loading cargo for sea or air freight
• Setting up insurance and tracking delivery as needed
• Preparing documents, licenses and all relevant paperwork for UK customs authorities
• Arranging haulage and delivery to your agreed location in the UK

Often, it’s not the freight forwarder themselves carrying out many of the steps listed above. They’ll often subcontract things like local haulage to a partner based in your supplier location, for example. But what makes a freight forwarder helpful – and often crucial – is that they have the contacts across the globe to find the right person needed to get the job done, whether you’re importing from Sao Paulo or Shanghai.

Having a skilled freight forwarder will cost you in upfront fees – but it should make the import process run smoothly and reduce the risk of any unforeseen costs or nasty surprises.

What are the advantages of using a freight forwarder?

• You’ll only need to deal with one person to arrange your shipment, rather than several different haulage and freight companies
• Many freight forwarders are experts in import/export paperwork, and can help you navigate the complex processes involved
• With their local connections, freight forwarders can find service providers all over the globe to complete your shipment
• Freight forwarders can negotiate on shipping, haulage and warehousing costs on your behalf
• Using a freight forwarder offers peace of mind – if something goes wrong, or you need to submit an insurance claim, they should be able to help out

Where can I find a freight forwarder?

The British International Freight Association (BIFA) has a location-based search engine for its freight forwarder members and their specialisations.

What is a fast parcel operator?

Fast parcel operators can help you move documents, parcels, and freight across the world within a specific time frame. They can even handle customs clearance for you, provided you give them written instructions. The instructions must clarify whether these agents are acting for you directly or indirectly.

Where can I find a fast parcel operator?

The Government has published a list of authorised fast parcel operators ahead of Brexit, and that list is continually updated

Where to find a fast parcel operator

Further reading

How to prepare your small business for a no-deal Brexit

SMEs fail to receive benefits of sterling depreciation post Brexit