Brexit

Popular term explaining the UK leaving the European Union, the European single market and the European Customs union.

In both the Netherlands and the UK, it is possible to file an import declaration even before the goods arrive as a prelodged declaration. In the UK, in many cases, it is even mandatory to prelodge an import declaration.

By filing a declaration, you ask customs for permission to import, export or place goods under a special customs procedure (such as inward processing or customs warehouse). Based on the declaration, additional obligations may arise, such as paying import duties or keeping records. Based on a declaration, Customs may also want to inspect the goods involved.

Goods that are free within the EU (also called 'in free circulation'), meaning that these goods can be traded freely across the EU. An import declaration is no longer required, nor are there any import duties due. Also known as Union goods or T2 goods.

Goods that are free within the EU (also called 'in free circulation'), meaning that these goods can be traded freely across the EU. An import declaration is no longer required, nor are there any import duties due. Also known as Union goods or T2 goods.

Export is about shipping goods outside EU territory. To export goods, you need permission from customs, which you can request by filing an export declaration.

Import is about putting goods into free circulation from outside the EU. This can be done through an import declaration and the possible payment of any import duties.

AGS is the name of the Dutch Customs declaration system. All import and export declarations submitted to Dutch Customs must be submitted through this system. You cannot file declarations directly in AGS. There are, however, several commercial declaration packages available which allow you to file declarations in AGS. Please note that AGS is being gradually replaced by a new system called DMS in 2023.

Dutch Customs' new declaration system. DMS is already up and running and by the end of 2023 all declarations should be filed using DMS instead of AGS.

CHIEF is the UK Customs declaration system for export declarations. You need specific declaration software to be able to file declarations in CHIEF. During 2023 and 2024, CHIEF will be gradually replaced and UK export declarations must be filed using CDS.

UK Customs' declaration system for filing import declarations. You also need specific declaration software to be able to file declarations in CDS.

A customs procedure that allows goods to pass through a customs territory without having to file an import declaration first. This way, you can avoid paying import duties in the EU on goods you will later re-export. Transit also lets you file customs declarations at an inland location rather than at the border (such as a European or UK port). Clearing at the border often leads to longer delays than when you customs clear at your final destination. The most common transit options are T1 (for goods that are not in free circulation in the EU, so for which an import declaration still has to be filed) or T2 (for goods you want to export to, let's say, Switzerland or England, without having to declare them immediately at the Swiss or English border). Please note that goods moving from the Netherlands to Ireland and that are passing through England will also require a T2.

The European system in which transit declarations can be filed and which allows an easy follow-up of transit documents throughout the entire Common Transit Area (the EU plus several neighbouring countries, including the UK).

Rotterdam's port community system. All incoming and outgoing shipments via Rotterdam are recorded in Portbase. All relevant parties (customs, exporter, carrier, terminal, etc.) can access the necessary information about the shipment via Portbase and share status updates with each other. This way, Portbase ensures efficient handling of cargo in its port. Because of Brexit, the Portbase system has been extended to all ferry and short sea ports connecting to the UK. This means that every shipment to and from the UK must be notified in Portbase. For exports, usually the carrier or customs agent is responsible for doing this. For imports, it is the shipping company that has to notify the shipment.

GVMS is different to inventory-linked ports. If a carrier uses GVMS, he must submit a UK prelodged import declaration via the GVMS system before departing from the EU. This allows him to board the ferry and, on arrival in the UK, he can drive straight through.

Standardly speaking, when you import from outside the EU, you have to pay VAT on the imported products. You can later reclaim that VAT as input tax, but you will lose that amount of money for a while. If your business is registered in the Netherlands, you can apply for, what we call, an article 23 licence. This gives you permission not to pay the import VAT on import, but to defer it to your periodical VAT return, where you can directly deduct the import VAT as input tax. That way, you don't have to pay anything up front nor do you lose the VAT money  for a while. The UK has a similar system called 'postponed VAT accounting', which amounts to exactly the same thing as this Dutch article 23 licence, only without the need for a licence.

As a non-Dutch importer, you cannot get an article 23 licence. To avoid having to pay import VAT, however, you can appoint a fiscal representative. He or she is licensed to represent you for import VAT purposes. Since the fiscal representative is in fact a Dutch party, he can use the VAT reverse charge mechanism in the Netherlands. Next, this fiscal representative makes a fictitious delivery to the recipient of the goods. For the recipient, this is considered an intra-European acquisition (i.e. a purchase from a company from another EU country), for which VAT reverse charge is allowed. This allows the recipient to include the VAT due in its periodic VAT return and immediately deduct it as input VAT, thus preventing a temporary liquidity loss.

An agreement between two or more countries in which they set out agreements to promote trade between them. The main agreement is to impose fewer or no import duties on each other's products.

In both the Netherlands and the UK, it is possible to file an import declaration even before the goods arrive as a prelodged declaration. In the UK, in many cases, it is even mandatory to prelodge an import declaration.

One of the port community systems operational in the UK. Destin8 is the system used by the ferry ports where ferries arrive from the Netherlands and Belgium. If carriers choose to cross the North Sea 'inventory-linked', the customs representative must register the import declaration in Destin8 ensuring the cargo is released from the port.

At ferry ports in the UK, a carrier can choose to have the goods shipped 'inventory-linked' or via GVMS. Inventory-linked means that the goods are administratively stored at the port on arrival and are not released until an import declaration has been filed and this import declaration is linked to the shipment in the port system (usually Destin8).