Brexit: Goods consignments to Great Britain
What impacts will Brexit have on shipments to Great Britain?

According to current plans, the last parcel post sent to the UK using Swiss Post GLS under the currently applicable import regulations will be on 28.12.2020.

• UK VAT number and UK EORI number when using GLS incoterms 10 and 18 (VAT Registration Scheme)
• Designation and number of goods with the associated customs tariff numbers (HS codes) and the respective value
• Name and address of the consignment recipient including telephone, e-mail and contact person
• Delivery address if different from the invoice address

For more comprehensive information on commercial invoices, visit www.swisspost.ch.ch/swiss-post-gls and look under “Necessary invoice information”.

• GLS incoterm 10 (DDP)
• GLS incoterm 20 (DAP)
• GLS incoterm 30 (DDP, VAT unpaid)
• GLS incoterm 40 (DAP, cleared)
• GLS incoterm 60 (Pick&ShipService, Pick&ReturnService)

For additional information on existing GLS incoterms, see www.swisspost.ch/swiss-post-gls

For consignments containing goods worth up to GBP 135, the new GLS incoterm 18 must be used.

• GLS incoterm 18 (DDP, VAT Registration Scheme): carriage free, duty paid, taxed – this new incoterm involves the sender paying for freight and customs clearance. The value added taxes are paid either by the importer or the sender after registering in the UK. No customs duty is applicable.
• For consignments containing goods worth up to GBP 135, use of GLS incoterm 18 is mandatory for commercial senders.
• The VAT is paid directly to the British finance authorities (HMRC). This may require prior import value added tax registration on the website of the British government and application for a UK EORI number.

The following phrase must be included on the invoice when using the VAT no. of a UK importer: “Use importer account for VAT to HMRC”.

GLS incoterm 18 cannot be used for consignments containing goods worth over GBP 135.

Swiss Post GLS charges CHF 15 for each instance of customs clearance for incoterm 18 consignments.

The British government prescribes various rules for selecting incoterms depending on whether you are sending to a commercial (B2B) or private recipient and on the value of the goods. The following table shows all the available GLS incoterms for sending consignments to the UK from 1 January 2021. To find the right incoterm, discuss this with the importers in the UK and decide who will bear the import value added taxes, customs duties and customs clearance fees incurred.

GLS incoterms 50, 11, 15, 17, 21, 33, 41 and 91 will then no longer be available when sending to the UK.

Swiss Post GLS parcels from Switzerland arrive at their destination in the UK within a normal delivery time of three to five working days (Mon – Fri). We will strive to retain these delivery times even after the new customs regulations come into effect. However, there may be delays to begin with due to the customs clearance process, over which we have no influence. In the event of incomplete or erroneous accompanying documents, such as an incorrect declaration, there may be delays in parcel handling and customs control for which Swiss Post GLS is not responsible.

When using GLS incoterms 10 and 18, the sender’s UK VAT number and UK EORI number need to be stated on the invoice for the customer.

When using GLS incoterms 18 and 10 (for B2C commerce), the sender is obliged to register in the UK for tax purposes in order to have a UK VAT number and UK EORI number.

For B2B commerce, registration in the UK by the sender is only necessary if the sender wants to pay UK VAT directly.

When sending consignments containing goods worth over GBP 135 to commercial recipients (B2B) using GLS incoterms 20, 30 and 40, the sending business customer must have a UK EORI number. However, a UK VAT number is not required in this case.

Yes, with Swiss Post GLS consignments can be imported into the UK using the PVA processTarget not accessible. To ensure the correct operational processing, it is necessary to issue the British network partner Parcelforce with a one-off authorization. Please contact your Customer Support Officer for more information.

From 01.01.2021, every goods consignment from Switzerland to the UK will be subject to VAT. Two different procedures will come into effect depending on the value of goods:  

For commercial “business-to-consumer” PostPac International and small goods consignments containing goods worth up to GBP 135, the business sender in Switzerland must now always collect the British value added tax and deliver it directly. In order to avoid possible delivery delays due to customs blockades, the sender is strongly advised to register for tax purposes in the UK. If a sender is registered for tax purposes in the UK and settles the British VAT with the UK tax authorities, the consignments are delivered to the recipient without incurring additional costs (e.g. a customs clearance fee) in the same way as a DDP customs clearance solution (duty paid and taxed) For commercial shipments containing goods with an intrinsic value of up to GBP 135 (excluding VAT and transport costs), there is no longer an option of importing goods into the UK using incoterm DAP/DDU (delivered at place or delivered duties unpaid = duty unpaid and untaxed)  

“Business-to-consumer” PostPac International and small goods consignments containing goods worth over GBP 135 continue to be subject to VAT and potentially customs duties on the part of the recipient irrespective of whether the sender is registered in the UK. The sender is not permitted to collect the British VAT for the stated consignments and must send the consignment via incoterm DAP. 

There is currently no customs clearance solution for consignments containing goods worth over GBP 135 in the international letter and parcel channel. 

From 01.01.2021, every commercial goods consignment being sent to the UK will be subject to VAT. Consignments between private individuals containing gifts worth up to GBP 39 and consignments with excisable goods (including alcohol and tobacco) are exempt. Consignments containing such products are treated as consignments containing goods worth over GBP 135 as they also cause customs duties to be incurred. 

The EAD data (electronic advance data) must be recorded electronically for all consignments containing goods. For PostPac International, this happens automatically through the electronic creation of the waybill; and for small goods consignments, through use of the International accompanying documents or the Webshop Connector International (WSC). 

No British tax or EORI number is noted on the consignment by the sender. The customs authority detects whether the sender is registered in the UK on the basis of the sender information in the EAD data, and processes the consignment accordingly. It is strongly advisable to state the UK tax and EORI numbers on the waybill and commercial invoice for PostPac International.

From 01.01.2021, it will no longer be possible to send consignments to Great Britain using the DDP customs clearance solution. If sending consignments containing goods worth under GBP 135, you can register in Great Britain and send your goods taxed and duty paid (DDP) as before. Customers using the DDP customs clearance solution can process GB consignments in the Webshop Connector International or via the web service (e.g. create the shipping label for the consignment) as before. The EAD data is automatically transmitted in the background and does not need to be recorded separately under international accompanying documents. Additional key information on posting procedures can be found here.

Swiss senders can register with the UK tax authority (HMRC). Registration includes an application for a UK VAT number. Registering for tax purposes obliges the sender to submit a UK VAT statement on a monthly or quarterly basis.

Swiss senders can apply for a UK EORI number from the UK tax authority (HMRC).

If a consignment containing goods below GBP 135 from a non-registered Swiss sender arrives in the UK, the consignment will be blocked by the customs authority. The sender will be contacted. 

You can find full information about registering for the PVA process in the guidelinesTarget not accessible published on the website of the British tax authority (HMRC).