UNDERSTANDING THE IMPACT ON YOUR BUSINESS

WHAT DOES THIS MEAN FOR YOU, AND HOW CAN YOU PREPARE?

2021 CUSTOMS REGULATORY CHANGES

THE IMPORTANCE OF CUSTOMS COMPLIANCE

It is critically important that your business complies with Customs Regulations and Clearance processes and that you are aware of the upcoming European Regulatory Changes.

Conforming to these new regulatory changes will enable you to:

  • Fully comply with Security/Safety Screening
  • Minimize unnecessary transit time and clearance delays
  • Enable correct assessment of duties and taxes
  • Reduce or eliminate the possible risk of fines and penalties
  • Avoid unnecessary customer-service contact for you and your customers
  • Leverage the most simplified and beneficial Customs process

OVERVIEW OF THE THREE UPCOMING REGULATORY CHANGES IN EUROPE

1

JANUARY 2021

BREXIT: The United Kingdom has left the EU, and the transition period after Brexit comes to an end

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Will result in the need for a Customs Declaration for all shipments from EU to UK and UK to EU

2

MARCH 2021

ICS2 (Import Control System 2): ICS is the electronic security declaration management system for goods destined for the European Union Customs territory (either final destination or just transiting within the EU)

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Will result in the need for certain data elements to be sent to the EU Customs authorities – prior to loading in the country of export on a flight into or transiting the EU, Norway or Switzerland

3

JULY 2021

VAT De Minimis Removal: The EU will abolish De Minimis levels for imports into the EU (currently EUR 22* in the majority of the EU Member States)

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Will result in the requirement of formal Customs declaration for all inbound EU shipments

* EUR 22 De Minimis: Please note that in certain EU Member States (e.g. BG), the De Minimis value is €10 (instead of €22); other EU Member States (i.e. PL, FR, SE) have already decided to curb the use of this exemption to certain (mail) orders or in whole.

THE THREE CHANGES IN MORE DETAIL

1.

Brexit: The UK has left the EU, and the transition period comes to an end

IMPACT JANUARY 2021

Currently no Customs Declaration is required for shipments from the United Kingdom (UK) to the 27 EU member states (EU27), or vice versa. As of January 1, 2021, all these shipments (EU27 to GB, and GB to EU27) will require a Customs Declaration.

AFFECTED TRANSIT ROUTES:

(EU represents its 27 member states)

What is DHL Express doing?

DHL Express has set up a dedicated BREXIT Working Group, responsible for:

  • Monitoring and influencing the BREXIT developments
  • Enhancing DHL systems to ensure readiness for the go-live
  • Ensuring communication and support to customers when required
  • Hiring and training new employees who will prepare the additional BREXIT declarations
What is needed from you?

To ensure a smooth transition, we need you to provide complete and accurate Goods Description on your DHL Waybill and Commercial Invoice data for all shipments, and also:

  • Shipper, Exporter, Receiver and Importer of Record address and contact
  • Value of the goods, freight and insurance costs (depending on the Incoterm)
  • Line item, detailed Goods Description, and HS codes and Country of Origin
  • Incoterms, Weight and Quantity

From 1 January 2021, UK VAT on goods valued up to £135 will be collected at the point of sale, and not the point of import.

This means that overseas businesses selling goods to be imported into the UK, valued between £0-135, will be required to charge and collect any VAT due at the time of sale. As of January 1, 2021, all these shipments must be registered for UK VAT and pay VAT using a UK VAT return.

VAT registered UK importers can still choose to account for the VAT by providing their VAT registration to the supplier.

Alongside this, Low Value Consignment Relief (LVCR) will be abolished, meaning that VAT will be due on all sales of goods to UK consumers valued £0 - £135.*

*excludes all excise goods, and all C2C movements

2.

ICS2 (Import Control System 2): regulation will require data prior to loading

IMPACT MARCH 2021

ICS is intended to elevate mitigation of security-related risks and possible terrorist threats, such as explosives hidden in consignments.
As of March 2021, the new regulations will require data for every shipment to be submitted prior to it being loaded onto a flight into or transiting the EU, Norway or Switzerland.

AFFECTED TRANSIT ROUTES:

(EU represents its 27 member states)

What is DHL Express doing?

DHL Express has set up a dedicated ICS Program Team, responsible for:

  • Monitoring and influencing the EU Customs Regulatory developments related to ICS2
  • Designing and deploying the required operational processes
  • Enhancing DHL systems to ensure readiness for the go-live
What is needed from you?

In order to ensure a successful go-live, we need you to provide:

  • Complete and accurate Goods Description on the DHL Waybill
  • Precise and comprehensive Commercial Invoice data to meet legal requirements for every shipment, submitted prior to loading – including goods description on line items – to enable identification of the goods
  • Accurate shipper and receiver details on the Waybill and Commercial Invoice
3.

VAT de Minimis removal: threshold will be abolished for imports into EU

IMPACT JULY 2021

At present, no formal Customs Declaration is required for shipments below EUR 22* (goods value). However, as of July 2021, all shipments below EUR 22 will require a Customs Declaration, for which you must provide correct Customs data.

AFFECTED TRANSIT ROUTES:

(EU represents its 27 member states)

What is DHL Express doing?

DHL Express is monitoring EU Customs Regulatory developments related to the VAT De Minimis Removal, as well as:

  • Adjusting our DHL Electronic Shipping Solutions and Customer Integrations to enable automated data flow from you to our clearance applications
  • Enhancing DHL systems to ensure readiness for the go-live
  • Hiring and training new employees who will prepare the additional declarations
What is needed from you?

In order to ensure a successful go-live, we need you to provide complete and accurate Goods Description on your DHL Waybill and Commercial Invoice data for all shipments, including:

  • Shipper, Exporter, Receiver and Importer of Record address and contact
  • Value of the goods, freight and insurance costs (depending on the Incoterm)
  • Line item, detailed Goods Description, HS codes and Country of Origin
  • Incoterms, Weight and Quantity
  • Type of Transaction & Reason of Export

TO AVOID SHIPMENT DELAYS, YOU NEED TO TAKE TWO IMPORTANT ACTIONS

PROVIDE AN ACCURATE GOODS DESCRIPTION ON YOUR WAYBILL

THIS WILL RESULT IN
Enabling Customs to identify the goods – based on the data provided – and conduct security/safety screening without stopping your shipment.

PROVIDE YOUR COMMERCIAL INVOICE DATA ELECTRONICALLY

THIS WILL RESULT IN
Enabling DHL Express to clear your shipments through Customs without delays, based on electronic transmission of your Commercial Invoice line-item data.

WHAT ARE ACCEPTABLE GOODS DESCRIPTIONS?

About acceptable goods descriptions

  • Acceptable Goods Descriptions include complete information, providing sufficient detail about the precise nature of goods in plain language
  • A description should indicate what the goods are, what they are made of and the purposes for which they are used
  • Goods descriptions must be accurate so that Customs authorities can identify prohibited/restricted goods and perform adequate risk profiling for safety and security reasons

Why is this important?

More and more, Customs Authorities are requesting complete and accurate goods descriptions in order to perform security/safety screening before shipments even leave the origin country. Without this precise information, DHL will not be able to transport your shipment.

Examples of unacceptable and acceptable goods descriptions on your waybill

Unacceptable Examples:

Acceptable Examples:

Aid consignments

Blankets, medications

Apparel

Men’s shirts, lingerie, girls’ vests, boys’ jackets

Appliances

Refrigerators, stoves, microwave ovens, coffee machines

Auto parts

Automobile brakes, windshield glass for automobiles

Machine parts

Pumps, seals, engines

Machinery

Metalworking machinery, cigarette-making machinery, sewing machines, printing machines

Machines

(See examples for "Machinery")

Oil

Mineral oil, plant oil

Plastic goods

Plastic kitchenware, plastic houseware

Electronics

Computers, televisions, CD players, tape recorders, mobile phones, monitors, printers

Equipment

Oil well equipment, poultry equipment

Wires

Iron and steel wire, copper wires

Foodstuffs

Fish, Beverages,  Milk Powder

Gifts

Dolls, remote-control cars

Household goods

Plates, dishes, tableware (See also examples for "appliances")

Source: EUROPEAN COMMISSION | Guidance on acceptable and unacceptable terms for the description of goods for exit and entry summary declarations

PROVIDE YOUR COMMERCIAL INVOICE DATA ELECTRONICALLY

WHY DO WE NEED ELECTRONIC COMMERCIAL INVOICE DATA?

About Electronic Commercial Invoice Data

DHL Express expects to receive both your Commercial Invoice data and shipment data together electronically. This way, the Customs clearance process can start immediately, providing huge advantages in terms of service quality and lead-time performance:

  • Complete and accurate Customs declaration with minimal human intervention
  • Fast automated Customs clearance processes for both exports and imports
  • Even better service quality, as goods can now clear Customs prior to their arrival
  • Full compliance with Customs authorities
  • Ability to conduct risk assessment (e.g. dangerous goods identification) before goods arrive

Why is this important?

Providing your shipment and Commercial Invoice line-item information to DHL Express electronically helps to avoid any incorrect or missing information that could delay the clearance process.

OVERVIEW OF KEY COMMERCIAL INVOICE DATA ELEMENT CATEGORIES

In order to clear your shipments with Customs authorities and avoid clearance delays, fines or penalties, it is essential that the following information is provided completely and accurately.

Data Element Category

Example

Why is this important?

1

Shipper & Exporter of Record (EOR)

Shipper & Exporter of Record (EOR): John Shipper | Road Name, No | Zip Code | Country

Receiver & Importer of Record (IOR)

Receiver:
Paul Receiver | Road Name, No | Zip Code | Country

Importer of Record (IOR)
Tom Importer | Road Name, No | Zip Code| Country

Legally required for security filing and as part of a compliant customs declaration

2

Contact
(e-mail, mobile number)

John.Shipper@email.com | +12 3456789

Paul.Receiver@email.com | +98 7654321

Tom.Importer@email.com | +45 6478391

To contact in case of missing paperwork / information, avoiding clearance delays so we can clear customer shipment as quick as possible

3

Registration Number

Number: 12345678910

Type

Type: EORI Number

Issuing country

Issuing Country: Belgium

Critical info for DHL to clear the shipment (i.e. tax & customs registration of the parties involved).

If customer wants to use a shipper VAT collect model, DHL requires the shipper’s VAT Registration (e.g. IOSS, LVG, OSR), otherwise VAT potentially is charged twice.

4

Type (Business / Private)

Type: Private or Commercial , B2C or B2B

Reason for Export

Reason for Export: Repair and Return

For compliant customs clearance and to ensure the correct Deminimis threshold and duty exemptions are applied

5

Line Item Goods Description

Sunglasses with lenses optically worked

Line Item HS Code for Export / Import Line

9004.10.XXXX* (*last digits are country-specific)

Item Country of Origin

China

Line Item Quantity and Measure

3 units (sunglasses)

Legally required for security filing and as part of a compliant customs declaration

6

Goods Line Item Value & Currency

Goods Line Item Value: US$150 (x 3 units)

Total Other Monetary Amount

Insurance: US$ 25

Total Freight Value & Currency

Total Freight: US$ 50

Total Invoice Value & Currency

Total Invoice: US$ 525

Incoterm and Place

Incoterm: EXW Place: Shanghai / China

Legally required for as part of a compliant customs declaration

7

Total Gross Weight & Unit

0.5 kilograms (KG)

Legally required for security filing

8

WB Number

WB Number: 123456789

Customs Document Date Customs Document

Customs Document Date: July 22nd 2020

Type and ID

Type: Commercial Invoice | ID: 98765543

Legally required for compliant customs declaration

Examples of unacceptable and acceptable line-item goods descriptions and HS codes on your Commercial invoice

Unacceptable Examples:

Acceptable Examples:

Samples

Samples of curtains (including drapes) and interior blinds; curtain or bed valances of cotton
HS Code: 6303.91.XXXX (last digits are country-specific)

Parts

Parts of pumps for liquids, whether or not fitted with a measuring device; liquid elevators
HS Code: 8413.91.XXXX

Gifts

Sunglasses with lenses optically worked
HS Code: 9004.10. XXXX

Textiles

T-shirts made of cotton, knitted or crocheted
HS Code: 6109.10. XXXX

CLEARANCE CHECKLIST / KEY TAKEAWAYS

Next steps:

  • Have a complete understanding of these new European Customs regulatory changes and how they will impact you and your customers
  • Ensure all Goods Descriptions on your DHL waybills are complete, accurate and meet the new requirements
  • Be certain your Commercial Invoice data is being electronically transmitted to DHL. Meet with any relevant stakeholders (i.e. your IT team) to make this determination
  • If you have any questions or are not yet providing DHL Express with complete and accurate Commercial Invoice data electronically, please contact your sales representative or the DHL Electronic Shipping Solutions Team to learn more about the options available to your business

Electronic Shipping Solution options include:

MyDHL+

Ideal for one shipment or many, this is an online portal that enables you to use just a single login to import, export, track shipments and much more – anywhere, anytime.

MyDHL API & Electronic Data Interchange (EDI)

Useful for large shipping volumes and multi-site logistics operations, this option fully integrates shipping into your existing global business processes.

EasyShip

Desktop Solution for large shipment volumes, multi-national supply chains and/or companies with a central shipping function.

Express Logistics Platform (ELP)

Online application for forward- and reverse-flow logistics (shipment handling with multiple legs).

Emailship

A suite of reusable DHL forms and step-by-step instructions that have been specially designed to enable quick and easy shipping using only your email (supports limited connectivity).

Download a Clearance Checklist PDF.

Disclaimer
While we have made every attempt to ensure that the information contained herein has been obtained, produced and processed from sources believed to be reliable, no warranty, express or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability or usefulness of such information. All information contained herein is provided on an "as is" basis. In no event will DHL Express, its related partnerships or corporations under the Deutsche Post DHL Group, or the partners, agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information contained herein or for any consequential, special or similar damages, even if advised of the possibility of such damages.