Dear Valued Clients and Partners,

We are thrilled to announce some exciting news that marks a new chapter in the journey of UKP Worldwide (UKPW). As part of our commitment to better serve you and accommodate our growing operations, we are moving to a new larger location.

Effective from Sunday 11th February 2024, UKPW will be relocating from our current location to the spacious and dynamic Westcott Venture Park. This strategic move has been carefully planned to facilitate our continued growth and expansion, allowing us to enhance our services and meet your evolving needs more effectively.

Our new address will be:
UKP Worldwide, Unit 12 Century Court, Westcott Venture Park, Aylesbury, HP18 0XP.

We believe that this move will bring numerous benefits to our valued clients and UKPW. The increased space and improved facilities will enable us to streamline our operations, provide more efficient services, and develop innovative solutions to meet the challenges of the modern global market.

Rest assured that our dedication to delivering high-quality, reliable, and timely services remains unwavering. During the transition period, we will make every effort to minimise any disruptions to our operations and maintain the excellent level of service you have come to expect from us.

We are truly excited about this new chapter in our company’s history and the opportunities it presents. We extend our heartfelt gratitude for your continued support and partnership. We look forward to welcoming you to our new premises and sharing our exciting journey of growth with you.

If you have any questions or require further information about our relocation, please do not hesitate to contact our dedicated Client Services team at ukpclientservices@ukpworldwide.com.

Thank you once again for your trust and partnership. We are excited about the future, and we are grateful to have you with us on this journey.

Best regards,

Lee Bucktrout
Chief Executive Officer

We are pleased to be sharing an important update from HMRC regarding the forthcoming changes required on imports from Ireland to Great Britain. If you have any questions or concerns about these, please email us at info@ukpworldwide.com where we will aim to answer any queries you may have. 

HMRC Communication 19th December 2023

In August 2023, the Government published the final version of the Border Target Operating Model which confirmed that from 31 January 2024 some goods will face full customs controls when moved directly from Irish ports to Great Britain. 

Goods will need to complete import processes if they are being imported directly from Ireland into Great Britain (​​not moving from or through Northern Ireland). 

Goods moving from Northern Ireland to Great Britain through Irish ports will also have to complete import processes if they are: 

• non-qualifying Northern Ireland goods
• excise goods (alcohol, tobacco, and energy products) or
• goods which do not move directly to an Irish port once they have left Northern Ireland for example, goods which are held in storage in Ireland. 

For these goods you will have to follow the import requirements set out in the Border Target Operating Model.  

When moving these goods, most traders will need to make import customs declarations at the point of import and will no longer be able to delay making declarations. Ports will be required to control these goods moving from Ireland to Great Britain, meaning that unless they have received customs clearance they will not be released from the port. 

What you need to do to prepare to move goods from 31 January 2024 

You will need to ensure you, or anyone who moves goods on your behalf, are familiar with the new process from 31 January 2024. 

• If you are moving qualifying Northern Ireland goods, you should confirm this to your haulier and / or carrier. You can find out more about qualifying Northern Ireland goods on GOV.UK.

• You need to register for a GB Economic Operators Registration and Identification (EORI) number if you do not already have one.

• As import declarations will need to be made through the Customs Declaration Service (CDS), you or your representative will also need access to 

• To make import declarations in your own records (Entry In Declarants Records (EIDR)) you will need to apply for authorisation to use simplified declarations for imports if not already authorised.

• If your goods are being moved from Ireland through Roll on Roll off (RoRo) ports in Great Britain, you will need to make your customs declarations before the goods depart from Ireland, and you will need to follow Goods Vehicle Movement Service (GVMS) processes. 

• If hauliers are moving goods on your behalf they will need to register for GVMS if they haven’t already done so, and you will need to provide the Movement Reference Number (MRN) from your declarations to the person moving your goods in order for them to be able to generate a Goods Movement Reference (GMR). Hauliers will need to provide a GMR for all lorries and trailers moving directly from Ireland. 

• At inventory-linked ports or other locations, the haulier or the intermediary that is moving the goods on your behalf will need to follow standard processes to ensure your goods are presented to customs, declared, and cleared before they can be released to free circulation in Great Britain.

• Businesses making a full import declaration or simplified frontier declaration on CDS for goods moving from Ireland to Great Britain (including for excise goods) will no longer be required to ​‘​arrive’ their declaration by the end of the next working day after arriving in Great Britain. For goods being entered into excise duty suspense, the entry onto the Excise Movement and Control Systems (EMCS) must be made by the time they arrive in Great Britain.

• If you are moving goods from Northern Ireland to Great Britain via Ireland​, including qualifying Northern Ireland goods,​ you will need to comply with some Irish customs requirements to exit through a port in Ireland, and will need to check Irish customs guidance. 

More information on qualifying Northern Ireland goods 

The Border Target Operating Model confirmed that import declarations will not be needed for qualifying Northern Ireland goods moving directly from Northern Ireland or indirectly through Ireland to Great Britain, in line with the Government’s commitment to unfettered access. There are some very limited exceptions where import declarations are required, such as an ongoing requirement to provide these for excise goods​ when moving qualifying Northern Ireland goods through Ireland to Great Britain​, and these will be set out in guidance shortly.   

When moving qualifying Northern Ireland goods​​​ through Ireland to Great Britain​ for which import declarations are not required through Roll-on Roll-off ports, hauliers will still need to complete a Goods Movement Reference (GMR). They should indicate they are moving such goods on their GMR. Hauliers and drivers will need to provide commercial evidence if asked to confirm that their goods are qualifying Northern Ireland ​​goods for example, a dispatch notice, an invoice, or a consignment note. They will also need access to a travel document issued in the UK setting out the destination of the goods, to show that the goods have merely passed through Ireland. 

At inventory linked ports or other locations, similar processes will be used to allow these qualifying Northern Ireland goods to be released from inventories or local systems without requiring electronic declarations. 

We will be updating the guidance pages on GOV.UK to reflect these changes. 

Further help and support 

If you have any questions, visit Imports and exports: general enquiries on GOV.UK. 

UKP Worldwide (UKPW) featured in the September issue of Cross-Border magazine talking about the challenges retailers have faced since Brexit and the complex customs regulations that come with exporting to the UK. 

Read our full article here: CBM27-00-Digital-HighRes.pdf (cross-border-magazine.com)

We’ve featured “Connect back with your EU customers” in Modern Retail’s Fulfilment Update, August 2023.

What is it? 

When the Brexit transition period finished UK Customs and VAT legislation was updated. This means all overseas sellers that make any taxable sales in the UK, must register for VAT and account for UK VAT to HMRC. You are considered an overseas seller if you do not have a business established in the UK and make taxable sales of goods to customers in the UK. How VAT is charged depends on whether the trader is selling directly to their customers in the UK or through an online marketplace, the location of your goods at the point of sale, and the total value of the consignment you are shipping.

*Importing Stock to sell

If you are importing goods to the UK and sell through an online marketplace e.g., Amazon, ebay, etc. you will be liable for any Customs Duty & Import VAT when the goods are first imported into the UK. You can register for VAT to reclaim any Import VAT you paid. The normal rules about what VAT can be reclaimed as input tax will apply. UK registered businesses can use Postponed VAT Accounting (PVA). A UK established business must have a permanent physical presence, be registered at Companies House, and employ local staff. A serviced or virtual office is not enough to create an established business. For example, if you sell all goods using an online marketplace and you only have a fulfilment centre in the UK, then you are an overseas seller.

*Overseas Selling through Online Marketplace

If goods are located outside the UK when sold through an online marketplace, they will be liable for UK VAT on sales. The online marketplace will charge and collect this at the point of sale when the goods are sold.

**Selling Direct to consumer – NOT through an Online Marketplace

Any goods sold directly to a UK customer, for example through a trader’s website and not through an online marketplace based in Great Britain, will attract Import VAT and UK Duty if the total order value is over £135. Consignments containing goods with a value of £135 or less, that are outside the UK when sold, will attract UK Supply VAT. Supply VAT should be charged and collected at the point of sale. The £135 limit applies to the total value of items contained within a consignment/parcel. The consignment value should be based on the intrinsic value, which is the price of the goods when they were sold, excluding any transport and insurance costs. This is unless they are included in the price and not separately shown on the commercial invoice and any other identifiable taxes and charges. Unless sent individually, the seller must add the individual values of all items in a consignment together to get the total value of the consignment.

What type of business could benefit?

If your business is registered for VAT in the UK, you can use PVA and account for Import VAT on your VAT Return for goods you import into the UK. If you are a retailer, online trader or manufacturer importing goods from outside of the UK – your business could benefit from improved cash flow when importing goods.

***Want to use an agent to help import goods on your behalf?

You can appoint someone to import goods on your behalf such as a freight forwarder or customs agent. You will need to appoint them, provide written instructions, and advise them on how your business wants to account for its VAT.  These instructions are vital so the correct VAT can be paid and accounted for when making your VAT return to HMRC. This ensures all VAT records match the goods that have been imported and you remain compliant.

Want to know more…

If you think your business could benefit from Postponed VAT Accounting or eCommerce Managed Returns & Duty Reclaim, why not email our Sales team at info@ukpworldwide.com.

Disclaimer: 
The information provided in this article is for general informational purposes only and is based solely on our experience in that field. It should not be considered as expert legal, financial, or tax advice. We do not provide VAT advice, and any information provided should not be relied upon as a substitute for consulting with a qualified professional. VAT regulations and laws may vary by jurisdiction and can be subject to frequent changes and updates. Therefore, it is essential to seek the guidance of a qualified professional tax advisor who can assess your specific situation and provide appropriate advice based on current legislation. Businesses importing to Northern Ireland are still considered part of the EU VAT area and have different requirements.

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You may have read a recent news report of one of the largest discoveries of counterfeit goods worth a record £87m found in shipping containers in Manchester*.

This is clearly not only illegal but also damages well-known brand identities due to poor quality, impacts on their revenues as well as unpaid duty and taxes to central government. There is also other criminal activity that is undertaken from the proceeds of these crimes.

This is why it is important, that when you are choosing your customs clearance broker you look to work with a reputable company that is AEO accredited, this is a good sign for supply chain and customs compliance as they have stringent administrative procedures in place. UKP Worldwide (UKPW) has been AEO accredited since November 2016, this not only ensures that you are compliant with current customs legislation for declaring the correct duty and taxes but that they are the first line of defence in ensuring that counterfeit goods are not flooding the streets and undervaluing your brand.

UKPW uses its in-house developed software to perform a number of validation checks on the data it receives from its customers to ensure that not only are the goods manifested correctly but the origin and value of the goods also stands up to scrutiny.

Lee Bucktrout, CEO and founder of UKP Worldwide, explained, “In the infancy of our customs brokerage business, we were approached by overseas 3PLs and retailers who could not provide the level of detail we required. Dealing with this type of trader would have led to many shipments being placed on hold and subject to customs inspection, and impacted on our other clients who were compliant. As a business, we decided very early on that we would only work with those customers that were looking to ensure a seamless transit of goods over borders by making the correct declarations. This allowed us to keep our operational costs to a minimum at the same time as ensuring a high level of quality of service. Online shoppers want their goods delivered without delay, so UKPW feels that it is playing an important part in the customer journey at the same time as ensuring that duty and taxes are collected.”

UKPW specialises in the bulk import and export of low and high-value eCommerce goods as well as offering a managed returns and duty reclaim solution. Come and talk to one of our Sales team to see how we can help keep your business growing sustainably.

*Source: Sky News