How to successfully face post-Brexit customs challenges? Learn about Coyote’s one-stop shop customs service
Brexit has brought a change in business relations between the UK and the European Union on many different levels. One area that has been particularly affected by the UK’s exit from the EU was the transport of goods across the English Channel. For exporters and importers, Brexit meant that they would have to deal with customs formalities.
Why are new regulations in the field of transport of goods between Great Britain and the European Union a source of potential problems for shippers? How can Coyote Logistics help to avoid them? How does Coyote support companies in the area of customs services? All this is explained by Magda Korzeniowska, EU Manager Custom Operations Compliance at Coyote Logistics in Europe.
Hi Magda, thank you for taking the time to speak with us.
Hello, the pleasure is all mine.
Let’s start by discussing why Brexit has been and continues to be a significant challenge for shippers regarding customs matters.
Simply put, shippers did not have to consider customs formalities for a very long time. The United Kingdom was a part of the European Union, where the free movement of goods was guaranteed within the common market. However, Brexit changed this situation. Now, road transport across the English Channel requires compliance with numerous new laws and customs regulations. Consequently, the entire process of transporting goods from the UK to the EU has become considerably more complicated. The risk of making mistakes has increased, which can lead to penalties and delays in delivering goods.
How are UK shippers dealing with the customs challenges posed by Brexit?
UK companies understandably want to ensure smooth shipping processes to the EU and avoid costly delays. However, not all of them have their own customs clearance teams. Previously, when exporting goods to the EU, they did not require such specialists. Now, they need to quickly address this gap.
How are they managing it?
We have observed a notable trend: there is a significantly increased demand from shippers to collaborate with experts who possess knowledge and experience in customs services. Companies are actively seeking individuals or entities who possess a thorough understanding of customs matters and are willing to help. Many of them have reached out to Coyote Logistics, and we support them in these matters because we know how to effectively handle them. Allow me to illustrate this with an example involving one of our clients, Skateside Skates. Prior to Brexit, they shipped 65% of their products to the EU. Unfortunately, the complications around Brexit caused a substantial decrease in their shipments. We offered Skateside Skates our comprehensive Cross-Channel logistics service, which includes customs clearance. Consequently, we manage not only the entire transport process but also handle customs clearance for them. With our experience and daily support, Skateside Skates now operates as if Brexit never happened.
What about companies that require customs assistance but already have their own transport service providers and wish to maintain their collaboration with them?
If a shipper is already collaborating with another transport company but wishes for Coyote Logistics to solely handle customs-related tasks, we can provide support. We have introduced a new one-stop shop customs offering with such customers in mind.
How does this service work?
We offer this service in collaboration with experienced customs agents in the UK. In essence, we take over all customs clearance formalities for goods being transported by road from the UK to Europe. By combining our knowledge and experience—(our in-house customs team handles up to 9,000 customs declarations annually)—with the expertise of our customs agency partners, we provide an efficient service.
Could you outline the process for customers wanting to access this service?
Certainly. First, the customer provides a sample commercial invoice, which explains the reasons for exporting or importing goods and provides insights into any difficulties the customer may already be facing. Next, the customer completes all the necessary forms to authorize Coyote Logistics to act as their representative in the eyes of customs authorities. We also require information about the truck that will transport the goods, including the vehicle registration and the planned crossing to Europe. Once we have these documents and details, we can formally request an export application and a T1 transit document…
What is a T1 transit document?
A T1 transit document allows goods imported into the EU to move freely between EU states. Essentially, a T1 document serves as a guarantee, usually backed by a bank, to ensure the payment of customs duties and other charges upon arrival in the destination country. I would also like to mention that at the end of the procedure, the driver must visit the customs office (IBF) to collect a paper copy of the T1 before boarding a ferry.
Furthermore, our customers can conveniently upload and download all the required documents themselves from their CoyoteGO® digital transport platform account.
Is there anything else you would like to add?
Perhaps just a reminder that post-Brexit customs matters do not have to be a significant challenge for the daily functioning of your business if you have the support of an experienced and trusted partner.
Like Coyote Logistics. Thank you for the insightful conversation.