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Posted 3rd November 2020

Freight acronyms: everything you need to know ahead of Brexit

Ever wondered what DDP or AEO are? How about CFSP? We've taken the most important abbreviations ahead of Brexit to provide you with answers.

AEO: Authorised Economic Operator

  • An internationally recognised status awarded by Customs
  • We were awarded this status in 2019, which recognises our internal processes as reliable, meaning we are a ‘trusted trader’.
  • After the Brexit transition period, AEO will become more desirable as the Customs guarantee ensures our trusted trader status will require fewer checks.

 

CCI: Customs Clearance Information

  • Information to be provided by the shipper/importer, to provide clearance information to us.

 

CFSP (EIDR): Customs Freight Simplified Procedures (Entry In Declarant’s Record)

  • A customs system that allows faster release of goods at the customs clearance destination
  • In order to use this system, customers must have a deferment account and a trading reference number.

 

C88(6)

  • A UK import entry (customs declaration).
  • A plain paper document normally submitted electronically with a number of electronic responses following its transmission.

 

EAD: Export Accompanying Document

  • Also referred to as an EX or EX1 in mainland Europe (not to be confused with EUR1 or T1)
  • In order to export goods from the Customs territory, an EAD export declaration must be created – who makes it depends on the Incoterms.

 

EORI number: Economic Operators registration and Identification number

  • From 1 January, all traders must have an EORI number beginning with GB in order to trade between the UK and the EU.
  • Check if you have a GB EORI number here
  • If you’re VAT registered, you should have received your EORI number directly from HMRC, but if you haven’t you can apply here.

 

EXS: Exit Summary Declaration

  • This is created by the EAD and alerts the export border that the shipment is on its way.
  • It allows HMRC (and Border Force) to decide if they want to stop the vehicle for additional checks.

 

Fiscal Representative

  • An agent who is appointed to pay for VAT and possible duty in a shipment’s destination country. Read more in our blog post here.
  • These taxes must be paid in the relevant customs territory – so if you’re based in the UK, and you’re paying taxes in the EU, they’ll act on your behalf.

 

GMR number: Goods Movement Reference number

  • The final number which is asked for by the clearance agent in order for the trucks to get onto the ferry.
  • This is generated by a combination of documents uploaded to the GVMS.

 

GVMS: Goods Vehicle Movement Service (Smart Freight Portal)

  • This is not yet confirmed.
  • A software that amalgamates all the numbers and information together in order for drivers to move between countries – it combines everything electronically.
  • This allows it to create the GMR number.

 

Incoterms

  • The terms which establish who pays for duty, VAT, freight and clearance costs. Read more in our blog post here.
    • DAP – delivery at place.
    • DDP – delivery duty paid.
    • ExWorks
    • FCA – free carrier.

 

Letter of appointment of a Direct (or indirect) Customs Agent

  • Known in EU as Direct/Indirect Representative
  • Sometimes an agent is appointed to act on behalf of a customer – in order to ‘officially’ be represented, you must complete and sign a letter of appointment of a Customs Agent.
  • Direct Customs Agent: agent acts in the customer’s name. If there’s an error, the customer is liable (unless it’s the agent’s fault, in which case there’s joint liability).
  • Indirect Customs Agent: agent acts in their own name, on behalf of the customer. If there’s an error, they are jointly liable.

 

MRN: Movement/master reference number

  • This is a barcode reference allowing movement containing elements such as transit document number.

 

Transit document

  • A document that accompanies most goods that have not cleared into free circulation, which includes a barcode scanned at each border crossing and is the basis of the track and trace functionality.
    • T1 – a form that states the point at which duty is paid.