We know that sometimes professionals use certain language, abbreviations or acronyms that aren’t always understood by others.
The language and jargon around Brexit can be confusing enough. But when it comes to freight forwarding post-Brexit, it’s important to understand the requirements to ensure you are fully compliant with new legislation.
Here we discover the most common jargon you’ll hear when discussing Brexit and freight forwarding now that Britain has exited the European Union.
CFSP Customs Freight Simplified Procedure
Around 70% of UK import declarations are currently handled under the CFSP scheme. The scheme allows the importer or freight forwarder to present a simplified declaration at the border (SFD, simplified frontier declaration) and the final import declaration at the end of the month.
CPC Customs Procedure Code
One of the most important fields on a Customs declaration. It tells Customs what type of transaction this is: standard seller/buyer, temporary export/import, outward processing relief, inward processing relief, the list goes on.
PVA Postponed VAT Accounting
Enables you, as an importer, to account for and recover import VAT as input tax on the same periodic (usually quarterly) VAT return, rather than having to pay it upfront.
TAD Transit Accompanying Document
Creating a transit movement on NCTS will generate a transit document (TAD). This document MUST travel with the goods in paper form. It includes a bar code that is scanned at each border crossing and is the basis of the track and trace functionality.
AEO Authorised Economic Operator
Quality mark for international Customs and trade. AEO is in two sections: AEOC Customs formalities and compliance and AEOS Supply Chain integrity and compliance.
EORI Economic Operator Registration Identifier
In order to communicate with Customs, you need an EORI number. They are free to obtain and should be held by all parties involved in international trade.
MRN Movement Reference Number
Most Customs processes generate an MRN. The MRN is proof that the goods have been entered into Customs and are authorised to move. In simple terms, nothing should move without an MRN.
EHC Export Health Certificate
Most POAO (products of animal origin) require an EHC to prove their conformity and suitability. An EHC must be issued by the exporter and endorsed by an authorised vet. UK exports to the EU (including GB to NI) will require an EHC, as will currently, imports to the UK.
T1 Transit Document
T1 is a transit document for non-community goods or goods that have been manufactured outside the EU. The T1 is also a customs financial guarantee. It’s a complicated subject, but in simple terms, the guarantee holder covers the duty and VAT liability which allows the goods to pass without border clearance.
EAD Export Accompanying Document
Often referred to as an EX or EX1 in mainland Europe. In order to export goods from the Customs territory, you must put the goods under Customs control; this is done by creating an EAD export declaration.
Read our full list of de-coded acronyms in our Jargon Buster at this link below.
Incoterms, or International Commercial Terms, are some of the most confusing aspects of the international shipping trade and if you want to delve deeper into which term might be best for your business, read our handy guide here.
Our team of experts are on hand to answer any queries you have and to ensure your goods clear customs smoothly.
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