Expanding your business for overseas trade is a big step for many companies and there is a lot to consider before it can be done. To be able to do this, owners of such businesses should familiarize themselves about the EORI system. It is important that a business owner who plans on doing business internationally should know about the EORI meaning for businesses.
What is an EORI number?
The EORI number actually is an acronym for Economic Operator Registration and Identification number. It is an ID code which is unique and it is used to track information and register any customs information within the European Union. The United Kingdom will officially not be part of the European Union by January 1, 2021 and so this means that EORI numbers from the UK will not be considered valid within the European Union. Starting that date, there will be two kinds of EORI numbers – one of the UK and one for the EU.
Who needs an EORI number?
Registering to get an EORI number can be done by an individual or by a business. If the business imports goods to or exports from the European Union, an EORI number is needed. Please note there are certain exceptions:
- this does not apply to those individuals or businesses providing digital services.
- Businesses in the UK that would be transporting goods to and from the Republic of Ireland as well as Northern Ireland do not currently require a EORI number. For companies that are under the umbrella of a bigger group, the application for an EORI number should be done by the head company which would then be used by any of its subsidiaries.
It is important to note that businesses that do not have an EORI number may have to deal with more delays and more expenses on their end, which could happen if the HMRC is not able to give clearance to any goods for import or export and the business would need to pay for storage fees.
How does one apply for an EORI number?
Businesses in the United Kingdom need to fill out the paperwork to be able to have an EORI number. The UK government’s website has a page on EORI number information. The form is be based on the needs of the business, the location, and the type of business. The form can then be sent electronically. The business owner applying for an EORI number would have to wait for a week to get their EORI number via email. This number would then be provided to the freight forwarder when there is a shipment of goods. It would be used for customs declarations.
Getting an EORI number for a business in the UK would be very important to help business owners not experience unnecessary hassle brought about by not having one. An EORI for business is easy to apply for by completing the right form with the correct information.
published under Business Address Guides
