You’ll need to have an EORI number when you ship goods internationally.

That’s right, another pesky acronym. BoL, FCL, LCL… There are so many of them, aren’t there? The thing is, shipping acronyms are shorthand for crucial bits of information that all shippers should know.

Never come across an EORI number before? Don’t worry. At the end of this blog, you’ll have a comprehensive insight into what an EORI number is and why you need one.

Let’s start from the top.

What Is An EORI Number?

An ‘Economic Operators Registration and Identification Number’ is a unique reference number given to imports and exports entering or leaving the UK. EORI numbers enable government departments and agencies to effectively exchange information about consignments, monitor what’s moving where and keep international trade secure.

There are two types:

An EU EORI number serves businesses that want to import or export goods into or out of the EU and is issued by the member state where the company is based. The number is fronted by a country code, such as FR for France, and followed by a 9-digit number that is unique in that member state.
A UK EORI number is assigned by HMRC and is only valid in the UK. All UK EORI numbers begin with the letters ‘GB’ followed by a 12-digit number based on your company’s VAT number.

EORI numbers are essential for businesses moving goods because, without the appropriate EORI number, your consignment won’t be cleared through customs.

When Do You Need An EORI Number?

Though a vital part of the customs process, EORI numbers aren’t just for clearing customs. The use of EORI numbers in the UK is extensive.

Let’s take a look at some of the ways they’re utilized.

Import And Export

Plane, train, ship or truck… It doesn’t matter how you’re shipping your goods; any company importing or exporting to or from other countries needs an EORI number. And only when you’ve got one are your goods eligible for deferred value-added tax payment (VAT).

Wondering if your company needs an EORI number? The answer is probably yes. You’ll need one if you transport commercial goods:

Between the UK or the Isle of Man and any other country (including the EU)
Between the UK and Northern Ireland
Between the UK and the Channel Islands
Between Northern Ireland and non-EU countries.

Shipping Business Procedures

You can use your EORI code in multiple different circumstances throughout the shipping process. You’ll need to input your EORI number when you:

Make a custom declaration. Goods should be declared at customs so that the authorities can check for any banned or prohibited items.
Apply for an Advance Origin Ruling. This certifies the origin of your goods.
Lodge a full import or export declaration. Some locations require you to have submitted an entry declaration summary before your goods are even loaded onto the truck or vessel
Make a temporary storage declaration. Sometimes you’ll need your consignment to be kept by for a short while.
Hand over the customs process to a delegate based in the country you’re sending or receiving goods from. This can make for much smoother communication between parties, especially when there is a language or time barrier.

What Information Is Needed For An EORI Number?

Before you start the application process for an EORI code, it’s helpful to know what pieces of information you’ll need. This prevents you from having to go hunting for missing documents and saves the time it takes to resubmit incorrect files.

Here’s what you’ll need to prepare ahead of time when applying for an EORI number in the UK.

Your Unique Tax Payer Reference (UTR). HMRC will assign you a unique UTR if you need to complete a tax self-assessment.
The business commencement date. This means the date from which your business opened and started selling its products or services.
Your Standard Industrial Classification (SIC) code. SIC codes are 5-digit numbers that classify companies by their main economic business activities.
Your Government Gateway user ID and password. The Government Gateway allows you to access the HMRC online system, where you can find all of your business tax info, among other business and personal services.
Your VAT number and registration date (if you are VAT-registered)
Your National Insurance number

Gathering all of this information before you start will smooth the process of applying for an EORI number.

What Happens If I Don’t Have An EORI Number?

Without an EORI number, your goods will be held by customs.

It’s as simple as that. Your consignment will not be allowed to enter the country, and the importer won’t be allowed to collect their goods.

It’s worth saying that the good news is you won’t receive any penalty for a lack of an EORI number, and your goods won’t be destroyed or anything drastic. But no EORI means you’ll undoubtedly incur additional costs for storing the goods whilst you sort out applying for one, not to mention considerable delays for everyone involved.

EORI Numbers Are The Key To Successful Shipping

An EORI number is necessary when you import or export goods and is vital to provide security for international trade.

But understanding the shipping process and all of the jargon that comes with it can be complicated and time-consuming. Well, Millennium is here to help. We know everything, so you don’t have to!

Why You Need An EORI Number When Shipping Internationally