The state of UK shipping is facing challenges as European regulations shift, borders change, and carrier contracts become outdated. Many merchants are either overpaying or experiencing unexpected customs rejections due to these issues. The solution lies in updating your shipping processes to adapt to the current environment.
For those shipping from the UK, there are four key operational changes that need to be reviewed.
With the new post-Brexit regulations in place, the days of inaccurate customs forms are over. Errors that were previously tolerated are now leading to immediate rejections or delays in customs clearance. To ensure smooth processing, three crucial data fields must be accurate:
- Granular Harmonized System codes: Each item must have a precise HS code that matches its material, construction, and purpose. Utilize HMRC’s Trade Tariff tool to create a reference spreadsheet for your SKU catalog and eliminate manual data entry.
- Matching commercial invoices: The total value on your customs declaration must match your invoice exactly. Detailed item descriptions, including material composition and country of origin, are essential to avoid delays.
- Verified UK EORI number: This free license is mandatory for all UK exports. Obtain your EORI number from HMRC and ensure it is integrated into your shipping profile.
Starting July 1st, the European Union will no longer offer a €150 customs duty exemption for low-value imports. This change will impact commercial shipments entering the EU, with each item category subject to a flat rate of €3 in duties.
For ecommerce businesses sending small, low-cost items to Europe, this shift in regulations necessitates a reevaluation of pricing strategies. Updating shipping fees or exploring localized EU fulfillment centers may be necessary to mitigate additional costs.
If you are still using Delivery Duty Unpaid (DDU) for international orders, consider switching to Delivery Duty Paid (DDP) to enhance customer experience. DDP eliminates surprise border fees by collecting duties upfront and streamlining the clearance process.
Key Point: If international duties account for more than 10% of your average order value, transitioning to a DDP model can improve conversions and reduce return rates significantly.
Northern Ireland operates under a unique customs arrangement, following EU rules for goods. Understanding the implications of this arrangement is crucial when shipping goods between Great Britain and Northern Ireland.
For businesses shipping to Northern Ireland, registering for the UK Internal Market Scheme (UKIMS) can simplify customs procedures. This registration, along with support services offered by HMRC, can streamline shipments to Northern Ireland.
Regularly reviewing carrier contracts is essential for optimizing shipping costs. As your shipping volume grows, renegotiating rates with carriers like Royal Mail, DPD, and Evri can lead to cost savings.
To streamline your shipping process without extensive backend coding, consider using an aggregator like ShipStation. By integrating with WooCommerce, ShipStation automates order processing, generates accurate customs paperwork, and provides access to discounted rates with major carriers.
ShipStation offers flexible terms and a free trial period for businesses looking to enhance their shipping operations. By leveraging tools like ShipStation, merchants can navigate the complexities of international shipping more efficiently.
