How to avoid T1's on exports and achieve frictionless trade in the EU

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We’re nearly 6 months on from the Brexit transition date finally coming into place. The complexity of customs processes has continued to drive on, with more bottlenecks building up from the administrative burden caused by Brexit and most importantly, the lack of awareness regarding fiscal liabilities. VAT is one issue that needs to be managed carefully and if managed tactfully, can help businesses keep their goods in circulation just as before.  

As we all know, b2b transactions are no longer seen as intracommunity movements but as exports and imports between UK and the EU. We’ve been working with our French based fiscal representatives to work around a solution that helps our clients continue to sell their products and services in every European Union member state.  

This solution has connected our clients with trusted partners in France that help give them a touchpoint throughout the entire chain, removing the use of T1 documentation, saving valuable time and providing a process that enables goods to move in free circulation where possible.

We spoke to clients to understand their chokepoints and gain a deeper insight on how the first month of Brexit went for them. For one of our Product of Animal Origin (POAO) clients, whilst their paperwork was over 95% complete, they had huge concerns over the delays caused by T1 documentation.  

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As a meat exporter, our products are perishable, so timing was key for us. Pre-Brexit, our shipments would take less than 24 hours, but now, we’re looking at anywhere between 3-7 days. In the second week of Brexit, we stopped production completely, as we had 10 trucks just stuck at borders.  

Now, with a better understanding of the alternative processes we can take, we have been able to eliminate the lengthy T1 process, saving us vital time and allowing us to focus on what we do, which is buying and selling.

Charlie Chitty, Operations Director, Dawkins International  

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With nearly a week of delays simply due to document and border checks, there was a massive strain on food importers and exporters who heavily rely on speed to avoid having to destroy truckloads of food goods.  

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So, what are our top tips on avoiding T1’s?

- Establish a unique point of entry, such as France

- Obtain a Global VAT number  

- Assign your own company as the importer of records

- Sell DDP to or through France

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We wanted to ensure we were building a solution that gave our clients the ability to communicate with every part of the chain, giving them back some control over the process. By passing on their loads to agents at the border, the responsibility was lifted from the trader and allowed them to focus on running their business.  

We hosted a webinar covering this topic with a live Q&A – you can catch up with it here. We also recommend you get in touch with our specialist Customs team to help with tailored advice and guidance.