Brexit jargon buster

Brexit terms explained

Brexit jargon buster

Brexit terms explained

With so many changes to how we Import and Export, there is bound to be terms you hear or see that you have not heard before.

We look to explain some of the common freight acronyms, the abbreviations associated with Brexit right now. Ever wondered what CPC or AEO stands for? How about CFSP?

AEO = Authorised Economic Operator

An internationally recognised status awarded by Customs
It recognizes internal processes and companies accredited with this are deemed reliable for custom documentation and therefore a ‘trusted trader’
After the Brexit transition period, AEO accredited companies will become more desirable and beneficial as a trusted trader will undoubtedly be subject to fewer checks.

CCI = Customs Clearance Information

The information required from the shipper/importer to us enabling customs clearance forms to be completed.

Incoterms

This is the terms of sale and establishes who is responsible for paying charges along the process of Import/Export
The payment of charges such as Duty, VAT, insurance, freight and clearance costs are all identified by the Incoterm
Some of the most commonly used Incoterms are listed below (see our Import/Export checklist for more information)

EXW (Ex-Works) – responsibility ends with the ‘seller’ at warehouse

CIF (Cost, Insurance, Freight) – normally for shipping movements, paying transport up to it being unloaded at destination territory

DDP (Delivered duty paid) – normally when paying VAT & duties on Import

C88(6)

This is the title of the form which requires completion as a UK import entry (customs declaration)
The document normally processed electronically, will usually then have a number of responses following transmission.

EAD: Export Accompanying Document

Also referred to as EX or EX1 in mainland Europe (not to be confused with EUR1 or T1)
In order to export goods from the Customs territory, as EAD export declaration must be created – who makes it depends on the Incoterms

EORI number: Economic Operators registration and Identification number

All traders must have an EORI number from 1st January
The trader’s EORI number must begin with GB in order to trade between the UK and the EU
You can check if you have a GB EORI number here
If you’re company is VAT registered, you should have received your EORI number directly from HMRC, but if not you can apply here

EXS: Exit Summary Declaration

Created by the EAD to alert the export border that the shipment is on its way
This allows the Border Force and HMRC time to decide if the vehicle maybe required to stop for additional checks

Fiscal Representative

The agent who is appointed to pay VAT and any possible duties in the destination of the shipment
Such duties (or taxes) must be paid in the relevant customs territory – so if you’re shipping from the UK into the EU, this agent will act on your behalf.

GVMS: Goods Vehicle Movement Service (Smart Freight Portal)

A software combines everything electronically - amalgamating all of the information and numbers together, enabling drivers to move between countries
This creates the GMR number.

GMR number: Goods Movement Reference number

The final number for which the clearance agent will request to enable a truck to get onto the ferry
This number is generated by a combination of documents uploaded to the GVMS

Letter of appointment of a Direct (or indirect) Customs Agent

An agent is sometimes appointed to act on behalf of a customer. In order to officially represent, you must complete and sign a letter of appointment of a Customs Agent
Known in the Eu as a Direct/Indirect Representative
A Direct Customs Agent acts in the company’s name. If there is an error it is the customer’s liability unless it is the agent’s fault, in which case there is joint liability.
Indirect Customs Agent: the agent acts in their own name, on behalf of the customer. If there is an error, they are jointly liable.

MRN: Movement/master reference number

The MRN is a unique number in the EU that is automatically allocated by the customs office that receives/validates and accepts an electronic customs declaration, a re-export declaration, exit summary declaration (EXS) or a re-export notification.

Transit document

The T1 shipping note is a customs document used in cross-border movement of goods for transporting customs goods from one customs office to another. Basically, the T1 note is used to carry non-EU goods within the EU territory. The T1 transit procedure is opened by customs at the point of departure.