Sending parcels to or from the EU? A guide to EORI numbers.
EORI stands for Economic Operators Registration and Identification. It is a unique number assigned to a business or an individual who is importing or exporting goods into or outside of the European Union.
In the world of e-commerce logistics where businesses are importing or exporting goods commercially - into or out of the European Union it is a mandatory requirement to have an EORI number so goods can clear customs at the arriving or departing EU country.
Is a unique number given to business to help local authorities track individuals/businesses trade activity in each EU country. It is a mandatory requirement for businesses to have an EORI numbers to clear customs in the arriving/departing EU destination.
What do I need an EORI number for?
Customs Clearance: An EORI number is required for customs declarations when importing or exporting goods into or out of the EU. Without it, customs authorities will not process your shipments, leading to delays and additional costs.
Simplified Procedures: For businesses regularly dealing with international trade, an EORI number streamlines the process, making it more efficient and less time-consuming.
Tracking and Identification: It helps customs authorities track and monitor shipments and ensure that businesses comply with customs regulations.
Legal Requirement: For any business, including e-commerce businesses, trading with countries outside the EU, having an EORI number is a legal requirement. Without it, your business could face legal penalties.
How does my e-commerce business get an EORI Number?
Applying for an EORI number is completely free. You’ll need to provide some business details, such as VAT number (if applicable), the business name, and registered address. Once approved your business will receive its unique EORI number, which should be used in all customs documentation. Depending on where your e-commerce business is based will depend on how you can apply for your EORI number:
EU-based businesses: Apply for an EORI number from the customs or tax authority in the EU country where your business is established.
Non-EU businesses: You have two options:
Apply for an EORI number in any EU country: This allows you to deal with customs throughout the EU.
Appoint an EU-based intermediary: If you're using an intermediary they can often obtain an EORI number on your behalf.
Recipient EORI numbers for B2B shippers
There are times when you will also require the EORI number of your recipient. If you are shipping to another business that is based in the EU, then you need to include their EORI number. Here’s why:
Identifying both parties: Customs authorities require the EORI numbers of both the sender and the receiver to properly identify the parties involved in the transaction and track the movement of goods.
Compliance and customs clearance: Providing both EORI numbers helps ensure smooth customs clearance and avoids delays or complications. It demonstrates that both businesses are registered and authorised to trade within the EU.
Data collection and statistics: Customs authorities use EORI numbers to collect data on trade activities, and having both numbers allows them to accurately record and analyse trade flows between businesses.
Once your business has an EORI number, you may want to consider applying for IOSS (Import One Stop Shop). While the EORI number allows you to trade with the EU, IOSS is an online VAT registration scheme which simplifies the payment of VAT on goods sold online, to customers in the EU, valued at €150 or less. However, IOSS does not apply to B2B transactions. Read more about IOSS here.
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