What is an EORI Number and Why is it Important for eCommerce?

As an eCommerce founder looking to expand internationally, you’ll need an EORI number to comply with customs regulations when shipping goods to or from the UK.

Not having an EORI number can result in significant delays, additional costs, and penalties. Here are the key reasons why an EORI number is essential:

EORI Number Required for Customs Declarations

Every time your business imports or exports goods, customs authorities need an EORI number to process your shipment. Without it, customs clearance cannot proceed, which means your products may be held at the border, causing delays and additional costs.

Avoid Shipping Delays

Shipments without an EORI number can get stuck at customs for days or even weeks. This can severely affect your delivery timelines, potentially leading to unhappy customers, negative reviews, and loss of business. Having an EORI number ensures that your goods move through customs smoothly and reach customers on time.

Compliance with Import and Export Regulations

The EORI number is part of the legal framework that governs international trade. For eCommerce businesses shipping goods across borders, failing to comply with customs regulations can lead to fines or goods being rejected at the border. The EORI number helps you meet these compliance requirements.

EORI Number is Essential for VAT Registration

If your business is VAT registered, your EORI number will be linked to your VAT number. This connection ensures that VAT on imported goods is accounted for correctly, reducing the risk of mistakes or miscalculations. It also allows you to defer or reclaim import VAT, helping to manage cash flow more efficiently.

Who Needs an EORI Number?

Any business or individual involved in the import or export of goods between the UK and non-EU countries (including the EU post-Brexit) will need an EORI number. This includes:

• eCommerce businesses shipping products internationally.
• Freight forwarders or logistics companies managing customs procedures for eCommerce brands.
• Manufacturers or wholesalers importing raw materials or goods from abroad.

Even if you’re a small eCommerce business just starting to explore international markets, you’ll need an EORI number to comply with customs regulations.

How to Get an EORI Number

Obtaining an EORI number is a straightforward process, and it’s free. Here’s a step-by-step guide to help you through the application process.

Step 1: Check If You Already Have an EORI Number

If you’ve previously traded internationally, you might already have an EORI number. Check with your accountant or tax advisor, or search your business records. You can also contact HMRC to verify if you have an EORI number.

Step 2: Gather the Necessary Information

Before applying for an EORI number, you’ll need to gather some essential information:

• VAT Number (if you’re VAT-registered)
• Business Registration Details: Your business name, address, and company registration number.
• National Insurance (NI) Number: If you’re a sole trader or individual importing goods.
• Details of Your Planned Imports or Exports: You may be asked about the nature and volume of your intended international shipments.

Step 3: Apply for Your EORI Number

To apply for an EORI number in the UK, visit the HMRC website and complete the online application. You’ll need to provide the information you gathered in Step 2.

Most businesses will receive their EORI number within a few days, though in some cases it may take longer, especially if additional verification is required.

Step 4: Add the EORI Number to Your Shipping Documents

Once you receive your EORI number, be sure to include it on all customs documentation for your international shipments. This ensures smooth processing at the border and avoids delays.

Do You Need a UK and EU EORI Number?

With Brexit changing the way UK businesses trade with the EU, some eCommerce companies may need both a UK and an EU EORI number.

If you’re a UK business shipping goods to or from the EU, you’ll need a UK EORI number for your UK-based operations and an EU EORI number for trade within the European Union.

How to Apply for an EU EORI Number

• If your business is based in the UK but you regularly trade within the EU, you’ll need to apply for an EU EORI number through the customs authority of the first EU country you export to.
• You can find application instructions on the specific EU country’s customs website.

Consequences of Not Having an EORI Number

Failing to obtain an EORI number can result in a range of problems that can hurt your business. Here are the most common issues you’ll face:

1. Delayed Shipments

Without an EORI number, customs authorities will not clear your goods, resulting in significant shipping delays that may negatively impact your customers’ experience and your brand’s reputation.

2. Additional Costs

Delays caused by missing EORI numbers can also lead to increased costs, such as storage fees, penalties, or fines. This adds unnecessary expenses to your supply chain and could affect your profit margins.

3. Regulatory Non-Compliance

Customs regulations are strict, and failure to comply by not having an EORI number can lead to legal consequences, including fines or seizure of your goods at the border. This can be a costly and time-consuming problem to resolve.

How E-PickPack Can Support Your International Shipping

At E-PickPack, we understand the complexities of international shipping for eCommerce businesses. From customs clearance and EORI registration to fulfilment and shipping solutions, our team can help you navigate international trade smoothly.

We work with eCommerce brands to ensure that every aspect of your fulfilment is handled efficiently, from picking and packing to ensuring your shipments meet all regulatory requirements.

With E-PickPack, you can focus on growing your brand while we take care of the logistics.

Conclusion

For any eCommerce business looking to expand internationally, an EORI number is an essential piece of the puzzle.

It not only ensures that your goods can pass through customs smoothly but also helps you comply with legal requirements and avoid costly delays.

Obtaining an EORI number is a simple process, and once you have it, you can start reaping the benefits of international trade.

Whether you’re just starting out with cross-border shipping or scaling your business globally, make sure you have an EORI number to keep your operations running smoothly.

Ready to take your eCommerce business international?

Contact E-PickPack today for expert fulfilment and shipping solutions that help you deliver on time, every time.