Updated: Nov 15, 2022
As the UK signs new trade agreements, and with a view to facilitate trade with these markets, some have made special concessions for traders who have ‘Approved Exporter status’.
The chamber often gets questions from exporters who confused having an EORI number with being an Approved Exporter, reason why we thought it would be helpful to understand the difference and the benefits of having an approved exporter status.
UK companies moving goods between Great Britain and any other country including the EU, Northern Oreland and non-EU countries are likely to need a GB EORI number, which stands for Economic Operators Registration and Identification number. Your EORI number is your unique registration number as a trader and enables you to export or import goods in and out of the UK.
If you are a regular exporter you can apply to HMRC to become an Approved Exporter. This licence effectively allows traders to export their goods using a simplified export procedure. This special facility allows businesses to give proof of the preferential origin of the goods exported directly using the invoice declaration and without any amount limit.
When a customs authority authorises a company as an Approved Exporter, it would enjoy certain advantages such as:
• Elimination of waiting times at customs for the issue of the Eur1 Certificate
• Cut the costs associated with the issue of the Eur1 certificate
• Reduction of the risk of error, also punishable by law, in relation to any discrepancies between what is what is stated on the invoice and what is reported in Eur1
• Speed and simplification of the customs protocol
Equally, for companies wishing to apply to become an Approved exporter, it is advisable to ensure your staff has the knowledge and understands the importance to have robust internal systems and processes in place which can help verify and monitor the originating and preferential status of the goods exported. So with the privileges that come with being an approved exporter, traders also are assuming the risk with all the legal consequences should there be any errors.
To understand which countries you can benefit from having an Approved Exporter Status, make sure you regularly use the UK Export Government tool to verify export requirements and concessions. Some examples of countries for which FTAs enables the Approved Exporter Status include South Korea, Turkey and the EU.
So, how can your business become an Approved Exporter?
To apply for Approved Exporter status exporters must provide the competent customs office with the necessary information. Once authorization is issued, it is valid for all exports of the covered originating goods during the period of the authorization.
You can apply online or by post completing the form C1454. For more information about the process, please check the UK Gov website.
The main conditions to obtain the approved exporter status are:
• You will need your GB EORI number – register in the UK.
• The commodity code(s) of the goods you intend to export under preference
• Estimates on quantities and values of consignments to be exported each year
• Providing supporting evidence. Check the guidance related to ‘Paying less customs duty on goods from a country with a UK Trade Agreement’.
How can the Chamber help you?
Need help auditing your current internal processes, systems, and evidence in place to prove originating and preference status?
We provide a preferential proof of origin review service. Simply call us at 0161 393 4314 or email the team at firstname.lastname@example.org to book a session.
Cannot use your Approved Exporter Status with a specific country to have preferential access?
Then remember some Trade Agreements enable traders to use EUR1 Movement Certificates, which we can help you with. For more information check our website or contact our team at 0161 393 4314 or email us at email@example.com