Branded merchandise exports to the EU after Brexit

What to take away

What changed for UK suppliers selling branded merchandise into the EU

The UK left the EU single market and customs union. A sale from Greater London, the West Midlands or Greater Manchester to a buyer in Germany is now an export and an import. Two customs regimes apply.

That means a UK supplier of branded merchandise cannot treat an EU order as a domestic delivery. The goods need an export declaration when they leave the UK and an import declaration when they arrive in the EU.

HMRC is the UK tax and customs authority. It administers export declarations, VAT and duty. EU customs authorities handle the import side in their own member state.

Small consignments are not exempt. Even a box of branded mugs or a pallet of printed hoodies needs the correct paperwork if it crosses the border as a commercial shipment.

The British Promotional Merchandise Association (BPMA) represents many UK suppliers. Its members have had to add customs and origin checks to their order process.

Named UK suppliers in this market include Everything Branded, Total Merchandise, Fluid Branding and Allwag Promotions. Ask any supplier you shortlist for a specimen commercial invoice, an origin statement and their EU delivery terms before you appoint them.

The Office for Product Safety and Standards (OPSS) is the UK body that oversees product safety rules for many consumer goods, including some merchandise categories.

For UK-side compliance, the UK promotional merchandise regulations in England page sets out how the rules apply in England. Local enforcement and trading standards teams can vary.

Couriers and freight forwarders can file declarations on your behalf. They still need accurate data from you: commodity codes, values, weights and the reason for export.

If you use a marketplace or a fulfilment centre in the EU, the importer of record may be that business, not your customer. That changes who is responsible for import VAT and duty.

Customs declarations and commodity codes for cross-border orders

A customs declaration is the formal statement of what is moving, where it came from and where it is going. HMRC provides customs declarations, duties and tariffs guidance for imports and exports.

For UK export and import declarations, HMRC's Customs Declaration Service (CDS) is the declaration system. A UK business exporting from Great Britain needs a GB EORI number; the EU importer or customs representative lodging the EU import declaration needs an EU EORI number. Agree who lodges each declaration and confirm the relevant EORI before dispatch.

Every product line needs a commodity code. This is a number from the UK Integrated Online Tariff. It sets the duty rate and any import controls.

Branded merchandise covers many codes. A cotton tote bag, a stainless steel bottle and a plastic phone stand are different products with different codes. Those descriptions alone are not enough to assign reliable codes: material, construction and intended use can change the classification. Use the UK Integrated Online Tariff for the UK export code, and check the EU import code and duty in EU TARIC. Do not assume the UK and EU code extensions match.

Getting the code wrong can mean the wrong duty, delays at the border and possible penalties. It can also invalidate a preference claim.

Follow these steps to prepare a cross-border order:

The commercial invoice must show the seller, the buyer, the commodity codes, the value and the country of origin. It is not the same as a proforma invoice.

Import controls can apply to certain goods, such as some textiles, chemicals or items with food contact. The linked HMRC import controls and restrictions guidance covers goods entering the UK, not EU imports. For an EU-bound shipment, check the import controls set by the destination member state's customs authority and any relevant product regulator.

If the EU buyer arranges their own freight, they may be the importer of record. In that case your export declaration still has to be correct.

A common error is describing goods as samples or gifts when they are a commercial sale. That can lead to undervaluation and a customs query.

VAT treatment for EU buyers after Brexit

VAT treatment depends on who the buyer is and where the goods end up. There is no single rule for all EU sales.

If your EU buyer is a VAT-registered business and the goods move to their premises, the export is usually zero-rated in the UK. The buyer accounts for import VAT in their own country.

If the buyer is a private individual, they pay VAT at the point of import in the EU. The rate is set by the destination country, not by HMRC.

If you sell through an online marketplace, the marketplace may be responsible for collecting and paying VAT on the sale. Check the terms of the platform.

UK VAT rules still apply to the UK side of the transaction. You need a valid export declaration to zero-rate the sale. Without it, HMRC may treat the supply as standard-rated.

For EU buyers, the import VAT is usually recoverable if they are VAT-registered and the goods are for business use. They need a valid import declaration in their name.

The EU applies a customs duty relief for consignments valued under €150. Import VAT applies from the first euro since July 2021. Member states may have additional rules, but the €150 duty relief is EU-wide.

Do not assume that a VAT number alone removes all VAT. The number must be valid and the goods must actually leave the UK.

Our article on promotional merchandise rules and ethics covers the wider compliance picture for UK suppliers, including record keeping.

Labelling, product safety and UKCA or CE questions

Labelling rules and product safety duties apply to many promotional products. The rules depend on the product category, not on the fact that it is branded.

Toys, electrical items, personal protective equipment and some cosmetics carry specific safety duties. A branded power bank or a printed torch is an electrical product.

Under the UK regime, UKCA marking applies to many goods placed on the market in Great Britain. The CE mark continues to be accepted for many categories, but the rules differ by product and by market.

GOV.UK explains how to place products on the market under the UKCA and CE regimes, including the categories where each mark applies.

For goods sold into the EU, the CE mark is generally required where the product category demands it. The UKCA mark is not recognised in the EU.

That means a single product may need both marks if you sell it in Great Britain and in the EU. The technical file must support both claims.

The EU importer may have to show its name and address on the product, packaging or accompanying document, depending on the product rules. The UK supplier usually provides the artwork and the declaration of conformity.

For products within its scope, the EU General Product Safety Regulation (GPSR) requires an EU-based responsible person when the manufacturer is outside the EU. The importer can fulfil that role, or another eligible EU-based operator can be appointed. Category-specific rules may also apply, including the Toy Safety Directive, the Electromagnetic Compatibility (EMC) Directive, the Low Voltage Directive and the REACH Regulation.

Labelling rules also cover language. Safety warnings and instructions must be in the official language of the destination country.

Packaging, batteries and electrical goods can bring extended producer responsibility (EPR) obligations that vary by country and product. For example, Germany's LUCID Packaging Register covers packaging registration, while France uses Triman sorting information for relevant products and packaging. Batteries and electrical items may also trigger national battery or waste electrical and electronic equipment (WEEE) responsibilities. Check registration and labelling requirements in each destination before sale.

If you are unsure which regime applies, check the product category first. Then check the destination country rules. Do not rely on the mark alone.

For contracts, put the labelling and conformity duties in writing. Our note on promotional merchandise commercial contracts explains why the terms should name who supplies the technical file.

Using preference agreements and trade terms to control cost

Preference agreements can reduce or remove Customs Duty on goods that meet the origin rules. HMRC explains how to pay less Customs Duty under a UK trade agreement.

The UK has trade agreements with many countries, but not with the EU in the same way. UK exports to the EU are covered by the UK-EU Trade and Cooperation Agreement.

To use preference, the goods must meet the product-specific origin rule. For many merchandise items, that means enough UK or EU content and the right processing.

You need a statement on origin or an origin declaration. The exact wording and the supplier declarations behind it matter.

A standard statement-on-origin model is: “The exporter of the products covered by this document (Exporter Reference No ... ) declares that, except where otherwise clearly indicated, these products are of ... preferential origin.” Complete it only when the goods meet the applicable origin rules, and follow current HMRC guidance on the required details.

If you cannot prove origin, the goods pay the standard duty rate. That can be several percentage points of the value.

Incoterms rules decide who pays duty, freight and insurance. Common choices for merchandise are DAP, DDP and FCA.

DDP means the seller pays import duty and VAT. That can be convenient for the buyer but it requires the seller to register for VAT in the destination country in some cases.

DAP means the buyer pays import duty and VAT. It is often simpler for a UK supplier with no EU VAT registration.

FCA means the buyer arranges the main carriage. The seller delivers to the named place.

A worked example: a UK supplier ships 500 branded plastic phone stands to a business in the Netherlands. The commodity code is 3926 90 97, which carries a standard EU duty rate of 6.5% on the goods value plus freight and insurance.

If the shipment is valued at £1,000 with £150 freight, duty is £74.75. The buyer pays import VAT at the Dutch standard rate of 21% on £1,224.75, which is £257.20.

If the goods meet the UK-EU origin rule and a statement on origin is held, the 6.5% duty is removed. The buyer still pays import VAT.

Use the market entry checklist before you quote an EU order. It helps you confirm codes, terms and registrations first.

Documentation and due diligence for EU shipments

Due diligence means checking the parties, the goods and the paperwork before the shipment moves. HMRC sets out the due diligence expected when making customs declarations.

Start with the buyer. Check the company name, address and VAT number. Companies House can confirm UK details, but for EU buyers use the local register.

Check the goods. Confirm what they are, what they are made of and where they were made. This supports the commodity code and the origin claim.

Check the documents. The commercial invoice, packing list, transport document and declaration must agree with each other.

Keep records for the period HMRC requires. Records should show the export, the value and the origin evidence.

Use a checklist for each shipment:

If you use a customs agent, give them a written instruction. Keep a copy of what you sent and when.

Common cross-border mistakes in promotional merchandise

Mistake one: using one commodity code for a mixed order. Each product line needs its own code.

Mistake two: ignoring labelling rules in the destination language. A safety warning in English only may not satisfy the EU importer's duties.

Mistake three: choosing DDP without an EU VAT registration. The seller can end up unable to reclaim import VAT.

Mistake four: leaving due diligence until the goods are at the border. Checks should happen before dispatch.

A table of the main duties helps suppliers and buyers agree who does what.

Use the table as a starting point. The exact split depends on the Incoterms rule and the product category.

If you sell into several EU countries, keep a country file for each one. Rules on VAT, labelling and packaging differ.

Before committing to a new market, confirm the commodity codes, Incoterms and VAT registrations for that country.

Common questions