This guide will answer all your questions on the National Export Systems (NES).
So if you have any questions about NES, read this guide.
- What Is The National Export System?
- What Are The Functions Of NES In UK Export?
- Do I Need To Register For NES Export?
- What Do I Need To Gain Access To The National Export System?
- How Do I Obtain An EORI Number For NES Export Registration?
- How Do I Gain Access To CHIEF?
- How Do I Declare Exports Under NES?
- What Information Should I Include In My NES Export Declaration?
- How Can I Submit Export Declarations If CHIEF Is Unavailable?
- What Is The Difference Between CDS And CHIEF?
- Does NES Export Apply To Exports Within The EU?
- Which Documents Do I Need To Export Goods From The UK?
- What Are Geo-Nomenclature Codes And How Are They Used In UK Export?
- What Is A Duty Deferment Account?
- Do I Need A Deferment Account?
- What Is A Deferment Fee?
- What Does It Mean To Be An Authorized Economic Operator In The UK?
- Are There Restrictions On The Movement Of Some Goods Out Of The UK?
- What Kind Of Goods Receive Priority When Being Exported From The UK?
- What Is The Purpose Of ECS In UK Export Control?
- Can I Exports Goods From Locations Not Linked In The UK Export System?
- Does The Use Of NES Apply When Exporting Goods Under Special Procedures (SP)?
- Can I Use NES To Make CAP Refund Claims?
What Is The National Export System?
This is a computer-generated system that allows for the electronic export declaration of your goods.
You need to have this system if you are planning to export from the UK.
Its operation is within the guidelines of a national electronic CHIEF (customs handling of import and export freight) system.
What Are The Functions Of NES In UK Export?
UK imports and Exports
There are different functions that NES performs when it comes to UK export. For instance, it is useful in the submission of all the information regarding your export.
This helps in the customs declaration and subsequent clearance by the customs authorities. It is also one of the documents you need when exporting restricted goods from the UK.
You have to indicate the license number for these goods on the NES before exporting them. NES also helps in understanding the trade volume between the UK and other countries.
This is because you have to indicate the country you are exporting your goods to on the NES. This is critical in helping the trade department analyze its trading volume with the partners.
Another function of NES is to calculate the value of your export. This is by submitting this value on the NES form.
This is vital for the customs clearance of your goods by the customs authorities.
Do I Need To Register For NES Export?
It is mandatory to register for NES export if you export your goods to countries outside the EU.
This is through applying to the customs and HM revenue. You get a CHIEF location and role after application.
You have to give your company’s economic operator registration number that is valid if you want to access the NES fully.
What Do I Need To Gain Access To The National Export System?
You have to submit the following information before accessing the National Export System:
An EORI Number
EORI Number Structure
An EORI number identifies you as an operator and is valid when exporting goods within Europe.
You need to quote this number to identify you as an operator when filing your customs declaration. It is also vital when filing your summary declaration.
The central customs authority is responsible for issuing this number.
A CHIEF Badge Role
The use of a CHIEF role is vital if you are using your freight forwarder. A CHIEF badge role is available in two different types.
That is a direct trader input (DTI) badge. You need this if you are exporting controlled goods.
The DTI is available either as a simplified frontier declaration and supplementary declaration. The other type is an email badge.
This is necessary if you are submitting a supplementary declaration. You have to submit the following to activate your DTI badge:
- An EORI with a number starting with GB
- The name of your business and address
- A community system provider is responsible for issuing your badge
- the number of your DTI badge.
The following are vital in activating your email badge:
- An EORI number starting with GB
- Business name and address
- an email address for use on the email badge
How Do I Obtain An EORI Number For NES Export Registration?
You can obtain the EORI number by checking with the customs authorities and registering your company’s name. You also have to submit a valid proof of address of your company and contact information.
You get the number once you pay the necessary fees.
How Do I Gain Access To CHIEF?
Two distinctive ways allow you to access CHIEF, either directly or indirectly. If you are accessing it indirectly, you have to do so through a software provider or a community systems provider.
You may access it by using an HMR web portal. The direct procedure allows you to submit your declaration using the web, email, or an XML.
Before using the direct route, you must have an Economic Operator Registration and Identification number (EORI). It would help if you also had a CHIEF badge. However, you need not apply if you are using a freight forwarder.
Each of these procedures has its requirement. You, therefore, need to check before you engage one for your use.
For instance, if you opt for a direct application, you need a Government Gateway User ID and a password. If it is your first time or you don’t have this ID, you must register before proceeding.
An email application also requires you to have a CHIEF-compatible software package and an SMTP email connection. Likewise, an XML declaration requires you to have a CHIEF-compatible software package and an HTTPS internet connection.
This is because an HTTPS connection is secure compared to an HTTP connection.
If you choose the indirect channel of filing your declaration, you need an email address, a telephone number, and a business name.
How Do I Declare Exports Under NES?
Export declaration under NES entails selecting one of the following channels:
Standard Full Pre-entry Method
When using this method, you or your forwarding agent must fill a full pre-shipment declaration form. You can achieve this by selecting one of the two ways available.
You fill it electronically through CHIEF or by manually completing the Single Administrative Document (SAD) form. However, you need to note that the manual filing process takes longer compared to an electronic process.
Simplified Declaration Method
You need to be an authorized agent or dealer if you opt to use the simplified declaration method. There are two critical things you need to have for this process to be a success.
There is the abbreviate version of your reshipment advice before export (PSA advice). You also need to have a list of all the supplementary declarations.
You have to submit the latter within 14 days shipment period.
Local Clearance Method
The use of this method is only possible if you are an authorized agent or trader. This method allows for your export declaration from an authorized inland premise.
The first step in this method is to notify your customs authority of your shipment. This is by accessing the CHIEF.
When the customs permit you, you have to remove your gods from your LCP premises. The goods arrive at your port of origin in the UK from where shipping takes place.
You have to submit a full supplementary declaration within 14 days of shipping your goods when using this method.
What Information Should I Include In My NES Export Declaration?
You have to include different information on your NES export declaration before submission. The information you include should be true and explain the details of your cargo.
Such information includes your details as an exporter. As an exporter, you need to indicate your name, address, and telephone number if they want to reach you.
Another information is the consignee details. That is their name, address, and country of origin. You also have to include their telephone contact in case they want to reach them.
The details of the goods are also a vital submission. These details include the type of cargo you are exporting, the quantity, and their final destination point.
You also have to include the packaging material and nature of the goods. Don’t forget to include the value of these goods when submitting these details.
Indicating the origin of the goods for export is also a critical aspect of submission. Origin involves indicating the address and name of the manufacturer.
A commodity code and your license as an exporter are also necessary during submission.
How Can I Submit Export Declarations If CHIEF Is Unavailable?
If CHIEF is unavailable, there are fallback procedures that you can use to submit your export declaration. The submission processes of these fallback plans are usually manual.
The fallback plans are in two categories, that is:
This plan is suitable when the system is unavailable for 24 hours. The advantage of this process is it allows for clearance of your goods.
However, you have to key this information later in the system to allow for synchronization.
This procedure is of use if the system is unavailable for more than 24 hours. In addition, this procedure allows for the clearance of your goods.
You don’t have to key the information later in the system.
An HMRC usually invokes fallback plans if the system is unavailable for more than 12 working hours.
What Is The Difference Between CDS And CHIEF?
The major difference between CDS and CHIEF is that CHIEF replaces the CDS as exporting goods from the UK. This allows for exporters to access the services they previously accessed in CDS and facilitate faster goods declaration.
Does NES Export Apply To Exports Within The EU?
No. NES export does not apply to goods that you are exporting within the EU.
This is because these goods do not require any declaration since they enjoy free goods’ movement. You, therefore, do not need to apply for an EORI number and subsequent logging on to the CHIEF for ES declaration.
However, you have to go through the normal customs clearance process.
You also have to avoid exporting prohibited or restricted goods in such an arrangement to avoid getting into trouble with the customs.
Which Documents Do I Need To Export Goods From The UK?
The essence of having all the documents before exporting your goods from the UK is to facilitate the customs clearance process. There are different documents you need depending on the type of goods you are exporting.
The mandatory documents you need include:
This document indicates the means you are using to export your goods from the UK. It consists of information like the type and quantity of the goods.
It is one of the documents that the customs use to calculate the customs duties.
Bill of lading
An export license is a permission for you to export your goods from the UK.
If you don’t have an export license, you have to engage the services of a licensed freight forwarder.
You can obtain this license from the customs authorities.
Certificate Of Origin
A certificate of origin is a document that indicates that the goods you are exporting originates from the UK. You must submit this document since it helps the customs authorities analyze UK trade volumes.
Certificate of Origin
This is a document that indicates the goods you are exporting from the UK and their quantity. It also shows the cost of each of the goods.
The customs authorities use this document to calculate the duties to pay before you export.
A commercial invoice is an alternative to the packing list since it serves the same function. It declares the type, nature, and value of the goods you are exporting.
The function of an insurance policy is to protect your goods against damages or loss during the shipping period. Therefore, you need to have one since it helps in reducing the loss in case of risks happening.
Different risks can occur during the shipping process. You, therefore, have different insurance policies depending on the type of goods you are exporting.
What Are Geo-Nomenclature Codes And How Are They Used In UK Export?
These refer to an arrangement of codes representing countries. They are useful in helping the UK customs authorities to analyze their trading with other countries.
The system also helps in analyzing trade discounts with other countries.
What Is A Duty Deferment Account?
This type of account allows you to pay once per month using direct debit rather than paying for each cargo. This is an account that you should have if you are an exporter or a freight forwarder.
The advantage of this account is it allows you to have a substantive cash flow and saves you on operating costs. This reduces some of the costs associated with customs clearance, such as taxes and customs duties.
You must have a guarantee before applying for a duty deferment account. The guarantee should be sufficient enough to cover the two-month liability of your business.
The best guarantee that you can have and which works in most of these cases is your commercial bank. However, this depends on the regulations of such a bank.
Do I Need A Deferment Account?
You need a deferment account if you are an exporter of goods from the UK. It helps defer payment of your exercise duty and other charges for a given period, usually a month.
Before application this account, you need to submit several aspects of your business. These aspects include the EORI number of your business, a registered company number, and an address valid on your EORI number.
If applicable, you also have to submit the VAT number, company official and director’s details, and the debt estimation.
What Is A Deferment Fee?
A deferment fee is that payment you pay later as per the agreement you have with your customs authorities. This allows you to export your goods without having to worry about these payments.
Deferment fees can be in the form of exercise duties and taxes due to the customs authorities. However, to have a deferment fee, you need a guarantee which, in most cases, your commercial bank.
What Does It Mean To Be An Authorized Economic Operator In The UK?
An authorized economic operator allows you to trade easily with other countries outside the EU. This is because you can easily declare your goods in the CHIEF system.
Are There Restrictions On The Movement Of Some Goods Out Of The UK?
Yes. There are restrictions on the movement of certain goods from the UK. This means for you to export these goods, you need a special license.
Such goods include certain medicines, machinery, drugs, asbestos animal fur, explosives, and animal-related products.
What Kind Of Goods Receive Priority When Being Exported From The UK?
Perishable goods are the only ones that receive priority when exporting from the UK. All other goods have the same treatment on a first-come, first-serve basis.
What Is The Purpose Of ECS In UK Export Control?
ECS helps harmonize procedures and offer protection to the goods you are exporting from the UK. You need to use your ECS with the CHIEF during the NES declaration.
The ECS helps the customs authorities to identify and label the goods you ate importing from the US.
Can I Exports Goods From Locations Not Linked In The UK Export System?
Yes. You can export your goods from locations that are not in the UK export system. However, there are certain factors to consider with the use of this method.
For instance, you have to declare these gods in three forms. That is, form C1601 which indicates the arrival of the goods for export.
You also have form C130EX, which permits you to progress with your exportation process. This includes customs clearance and paying for the customs duties. The final form is C888 which helps with the manual declaration of your cargo.
A manual declaration is only useful if the electronic system is not available. However, the HMR is responsible for keying the manual declaration back into the system when it becomes available.
After customs clearance, the authorities issue you with a stamped form C13EX to give to your loader. You have to return this document to customs when the loading is complete.
Does The Use Of NES Apply When Exporting Goods Under Special Procedures (SP)?
Yes. NES applies when you are exporting goods under special procedures. This is because NES helps in tracking these goods during the shipping process.
Special procedure goods are those which allow for favorable exporting prices. For instance, you can suspend the payment of TAX and duties under this procedure.
You can either use the full or simplified declaration to declare special procedure goods.
Can I Use NES To Make CAP Refund Claims?
Yes. You can use NES to make CAP refund claims.
For this to happen, the goods you are exporting should leave the UK within 560 days after declaration on the NES. The customs may also require you to have a valid CAP license.
Depending on the initial agreement, you can make the claims yourself or ask your agent to do so. You must provide the right information when making a refund claim to avoid suspicions.
For all your questions and inquiry about import and export business, BanSar is here to help.