For importers any delays to shipments can be costly. Importing might look straightforward most of the time but sometimes a shipment is held unexpectedly, or you receive a bill that you weren’t expecting. Other times a supplier might deliver something that can’t be sold in Ireland. To prevent delays at the point of customs clearance in Ireland, here are some common mistakes to avoid.

Mistake 1: Using the wrong HS code

Using incorrect classification of goods is one of the most common causes of delays at the border and for causing overpaid duty. This can be as simple as supplier codes being copied over to new documents without double checking that they are correct, choosing codes based on duty rate rather than the description of the product, or misclassifying multi-component or mixed-material goods. HS codes that are incorrect or missing may lead to the seizure of goods, penalties being applied, or the incorrect duty or VAT being paid.

Mistake 2: Not registering for an EORI number before importing

If you do not register for an EORI (Economic Operators Registration and Identification) number before you import goods, any shipments will be blocked at customs clearance. This can cause significant delays to your logistics, add storage fees to your costs, and could even result in the goods being returned to the sender. Ports will charge a daily demurrage and storage fees for any detained containers, and until there is a resolution your freight forwarder cannot submit paperwork on your behalf due to a halt in process.

Mistake 3: Undervaluing goods on the commercial invoice

Importers are responsible for accurately reporting the goods that are being imported. When this process takes place and the relevant customs authorities are informed, the value of the goods must be accurate to ensure that the import tariffs are accurate. The tax is charged on the assessed value of the items in the consignment, so by undervaluing the goods, you could face higher taxes, delays in processing at customs clearance, and potential fines and penalties.

Mistake 4: Overlooking anti-dumping duties on Chinese goods

Anti-dumping duties (ADD) are targeted taxes placed on imported goods from China to the EU that are sold below fair market value. They are designed to protect local businesses in the EU from cheap Chinese imports that distort the market. Overlooking anti-dumping duties can lead to seizure of goods at the border and delays to your consignment reaching you. It can also lead to potential fines, charges of fraud, and retroactive bills where audits can place unpaid duties with high interest in your name.

Mistake 5: Choosing the wrong Incoterms

Incoterms define the persons responsible for different aspects of the journey. This includes the customs phase of a consignment’s journey, the transport provisions, duty that must be paid, and the risk. Common mistakes that are found relating to incoterms include an assumption that the supplier handles customs procedures when they do not, choosing DDP without understanding the implications, using EXW when the supplier is not prepared, and a basic misunderstanding and misalignment of all responsibilities between the buyer and the seller. Problems of this nature can lead to higher costs, delays, and disputes that cause aggravation over a potential long period of time.

Mistake 6: Not calculating the true landed cost before buying

Landed cost is one of the most important calculations that you’ll find in any international trade process. It allows both importers and exporters to understand the full cost of moving goods between destinations. It allows for accurate pricing, protecting margins, and allows for proper taxation to occur. Understanding landed cost gives you accurate information to confirm cash flow and profitability before placing an order, to plan shipment volume and frequency, to choose the most suitable transport method, such as working with a sea freight forwarder or air cargo specialist and helps you to negotiate clearly with suppliers.

Mistake 7: Using vague descriptions on shipping documents

With the phased implementation of ICS2 in the EU, one of the common mistakes that importers make is to use vague descriptions on shipping documents. Whether your cargo is being shipped by air freight, sea, road, or rail, every single item must be described with accuracy and clarity. This means a shipment must not include vague descriptions such as ‘general car parts’ for example, if you are importing brakes for a car. Inaccurate or missing descriptions can lead to delays at border control, a rejection of your Entry Summary Declaration (ENS), and potential regulatory fines.

Mistake 8: Missing out on Postponed VAT Accounting

If you don’t use Postponed Vat Accounting (PVA) as an importer, you will pay import VAT upfront at the border, rather than accounting for it as neutral cash flow on a VAT return. This can put a strain on your cash flow due to paying import VAT to customs agents, causes discrepancies between your internal records and invoices from freight forwarders. It also makes it difficult to remain compliant, with mistimed declarations or missed VAT payments easy to spot when audited.

Mistake 9: Underinsuring or skipping cargo insurance

Another common mistake that importers make is either under-insuring cargo or ignoring it completely. Always ensure that you have insured your cargo, to avoid the risks of loss of goods, damage to your cargo, or more. Without insurance you can suffer significant setbacks financially and are left to bear the cost of any damage or missing goods. Make sure that any insurance policy covers the full value of the cargo, freight, and other specific potential risks along the supply chain.

Mistake 10: Trying to manage customs and freight without expert help

Attempting to manage customs and freight as an importer without the help of experts can cause you delays at the border. A good freight forwarder knows how to handle all the regulatory compliance and scheduling that comes with importing goods into Ireland. Without this expertise, your cargo might be missing required information about the items being shipped, not have the right HS Codes or EORI numbers, or send underinsured cargo. There are a lot of moving parts for any consignment being imported, whether by land, sea, road, or air. Emerald Freight has the know-how, track record, and global network of trusted logistics suppliers to get your goods imported to you in Ireland with minimal delays.