What is the single market?
The single European market was established in January 1993 to allow the free movement of people, capital and goods within the EU member states.  As a result there are no customs borders when shipping within the EU and ‘goods can move within the EU member states without customs presentation and paperwork or the payment of customs duties’. (Source: UK trade and investment – 101 questions about exporting).

Which countries are included?
Current EU member states include Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.

It should be noted that the Channel Islands, the Canary Islands (Tenerife and Gran Canaria) and Monaco are classed as non-EU countries for customs purposes.

Will I need any extra documentation when shipping outside the EU?
A commercial invoice will be required when shipping outside of the EU.  This will be presented to customs so it is essential that all the information on this document is true and correct.

What information should be on the commercial invoice?
The commercial invoice is created by us and sent with all non-EU shipments. However, the required information is name and address of shipper and receiver, country of manufacture, shipment tracking number, number of boxes, total weight of shipment and full description of each commodity with any part or serial numbers, commodity code and reason for export.  We can only declare the true value of the goods.  Any attempt to put an incorrect value on an invoice can be deemed as fraudulent by customs.

What is a Certificate of Origin and when is it required?
A Certificate of  Origin will be required if:

• the customs authorities of an importing country call for proof of origin, or …
• a customer has requested the additional paperwork.

There are two types of certificate – an EC Certificate of Origin and an Arab British Certificate of Origin.

The EC Certificate of Origin is certified by the local chamber of commerce.  The Arab British Certificate of Origin is required for the following Arab league countries and will frequently need to be legalised by the embassy of the destination country as well as the standard certification by the local chamber.  There can be a 4 – 7 day wait for the Arab British Certificate of Origin.

Arab League countries include Algeria, Bahrain, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, UAE and Yemen.

What is a EUR1 form and when is this required?
The EUR1 is used to claim preferential (reduced or even zero) rates of duty in the country of importation.  To qualify the goods must fully meet the rules of origin in the exporting country and be accompanied by a correctly completed and endorsed EUR1. The preference system applies only to countries where trade agreements exist within the EU and benefit the buyer by making goods cheaper to import.  The EUR1 form should be completed by the exporter.

ost countries have agreed that where a consignment is below 6,000 Euros (or equivalent in local currency) an invoice declaration such as ‘we declare that except where otherwise clearly indicated, these products are of United Kingdom preferential origin’ will suffice. (Source: http://www.sitpro.org.uk/trade/exportuk.html).

What is a Community Code?
A Community Code is an eight digit tariff number that needs to be declared to customs (standard procedure is to declare at least the first 6 digits of the code). Every item will have a Community Code and will need to be declared correctly on the commercial invoice as the correct rate of duty needs to be applied.

We cannot declare an item or items on a commercial invoice under an incorrect Community Code.

How do I work out the correct Community Code for my product?
The majority of products exported by KnowledgePoint and KnowledgeCast are exported under Community Code 490199 which relates to ‘printed books, brochures, leaflets and similar printed matter, whether or not in single sheets’.

If I doubt, the best way forward is to contact local customs or visit http://kaccdb.eu.int/mkaccdb2/indexPubli.htm and follow the link to the applied tariff database.

What is duty?
Any shipment that enter or leaves the EU will have duty applied in the country of arrival.  It is not applied to shipments that circulate within the EU single market.  Duty rates will differ per country on value, tariff classification and origin of goods.

What is a C88/SAD document?
This is an electronic import/export customs declaration (sometimes referred to as an EX1 form). It is generated on our behalf by UPS or DHL for all non-EU shipments over £600.00.  A C88/SAD document is not generated for intra EU shipments.

What can be used for proof of export?
This can be requested and is available for any shipment that is shipped from KnowledgePoint or KnowledgeCast.

• a proof of delivery and copy of the AWB will usually suffice for intra-EU shipments
• a copy of the C88/SAD form is required and can be obtained from the relevant courier for non-EU shipments

What are incoterms?
These were established as a contract between buyers and sellers involved in international trade.   Incoterms cover responsibility for payment of shipping, duties and taxes (ie: shipper or receiver(?)). Responsibility varies depending on the incoterm selected.  DDU and DDP are the incoterms most frequently used by KnowledgePoint and KnowledgeCast.

What do DDU and DDP mean?
DDU stands for Delivery Duty Unpaid, ie: the shipment is sent to a named place which is likely to be the closest airport in the destination country.  The consignee is responsible for all clearance fees and taxies incurred and delivery to final destination.

DDP stands for Delivery Duty Paid. This is similar to DDU except that the shipper is responsible for all clearance fees and duties and taxes incurred.  The shipper also has the responsibility to ensure the order is delivered to the named address.  The incoterm is used to ensure that shipments are processed through customs as quickly as possible and then all charges are billed back at a later date.

(Source: http://www.3plwire.com/2006/10/08/incoterms-ddp-delivered-duty-paid/).

How do I know whether an item or items are to be shipped DDU or DDP?)?
The easiest way to check is on the commercial invoice under ‘delivery terms’ or check a copy of the airway   bill.  For intra-EU shipments there will be no duties so the incoterm will default to DDU.

What is formal broker clearance and when is it required?
Even if an order ships on a DDP  service the customer may be required to complete paperwork for customs purposes.  This is often country, weight and shipment value specific.  The courier company will work alongside the consignee to complete this unless an external broker is used.

Why are external brokers used?
Customer often prefer to use their own broker instead of UPS or DHL. The shipment will be passed to a broker on arrival if this decision has been made while the shipment is in transit.  Using a broker means that once the shipment is handed over it is no longer the responsibility of the shipper and courier to complete delivery.