Continuing to work together

As part of our dedication to providing exceptional customer service to our partners in over 35 countries worldwide, we would like to welcome you to our online Brexit resource.

Whether you are a UK customer or one of our partners based in Europe or further afield, our aim with this page is to provide you access to practical help, relevant information and useful resources.

Everything we do is dedicated to exceeding your expectations.

Brexit FAQs

*This guidance is subject to change and does not constitute, or provide a substitute for, professional advice.

Do you have a European company I can work with to make trading even easier?

Yes! European partners now have the opportunity to work with our BMC EU company. Please contact a member of our sales department for further information.

If you would prefer to continue working with our UK company, please take a look at the FAQs listed below for additional information.

What are Incoterms and why are they important?

Incoterms is short for International Commercial Terms. Incoterms are published by the International Chamber of Commerce and they’re an internationally recognised set of rules designed to clarify the obligations of customers and suppliers in trading contracts with regard to transportation, loading, unloading, insurance, tax, and duties.

There are over ten different Incoterms but the main ones likely to be of relevance are:

Delivery at place (DAP)

This is a commonly used Incoterm for all forms of transport which places the maximum obligation on the supplier to deliver and insure the goods to a named place. The customer is responsible for unloading and paying all taxes and duties.

Delivery Duty Paid (DDP)

As with DAP, the obligation for transport falls on the supplier, but so does the payment of taxes and duties. The customer is still responsible for unloading.

Ex Works (EXW)

This Incoterm is used where the customer (or the customer’s agent) collects the goods. The customer is responsible for loading, transporting and insuring the goods, along with paying all taxes and duties.

We are working with our transport partners to facilitate the most suitable Incoterms for all of our customers.

What is an EORI number and why is it important?

An EORI number is an Economic Operator Registration and Identification number which is used to track and register customs information in the EU. Any trader bringing goods into the EU from a third country as the Importer of Record needs an EORI number. From 1 January 2021, the UK will be a third country and customers will potentially therefore need an EORI number. The EU website advises how to obtain one in your country.

BM Catalysts have obtained an EU EORI number and, acting as the Importer of Record, may bring the goods into free circulation in the EU through a ‘cross-dock’. In these circumstances, BM Catalysts will utilise its own EU EORI number but it is recommended by its advisers that the ‘consignee’s’ (i.e. the customer’s) EORI number is still shown on the Commercial Invoice.

Subject to contract, the agreement of ‘DAP+’ Incoterms and operation of special VAT arrangements, BM Catalysts will also be able to act as the Importer of Record for direct transit without the ‘cross-dock’, in a way that gives the customer a ‘DDP experience’ with regard to the VAT and duty. Again, BM Catalysts have been advised that it is recommended that customers also obtain their own EORI number so that BM Catalysts can show this on the Commercial Invoice in order to better facilitate the smooth flow of goods.

Will I have to pay VAT on goods I buy from BM Catalysts now that the UK has left the EU?

Subject to arrangements with transport partners, BM Catalysts may deliver the goods via a ‘cross-dock’ in the Netherlands initially. In these circumstances, BM Catalysts will be the Importer of Record and account for the VAT as a bookkeeping entry on its own NL VAT Returns.

Where DDP Incoterms are agreed using the special VAT arrangements, BM Catalysts are advised that customers will simply have to account for VAT as a positive and a negative on their VAT Returns. BM Catalysts recommend that all customers seek advice from their own professional advisors regarding the operation of VAT.

If DAP or EXW Incoterms are operational, then customers who have Deferment Accounts will be able to defer VAT and duty, but otherwise VAT and duty are payable at the time of import. Either way, BM Catalysts are advised that the VAT is recoverable later on the customer’s VAT return. Again, professional advice should be sought.

Will I have to pay import duty tariffs on goods I buy from BM Catalysts now that the UK has left the EU?

A Free Trade Agreement (FTA) has been reached between the EU and UK, so tariffs for items originating in the UK will not be applicable:

Product group FTA (UK Originating) WTO (Non-UK Originating)
Catalysts 0.00% 4.50%
DPFs 0.00% 4.50%
Pipes 0.00% 4.50%
Pressure Pipes 0.00% 3.50%
Fitting Kits 0.00% 3.50%
Universals 0.00% 4.50%
Flexes 0.00% 4.50%

Please contact a member of our sales team for details on country of origin by part number.

What are Commodity Codes and why are they important?

Commodity Codes are a system for classifying goods for the purposes of determining tariff rates subject to rules of origin. Also known as ‘HS Codes’ from the WTO Harmonised System, or ‘CN codes’ from the EU ‘Combined Nomenclature’.

Goods are categorised into Chapters (2 digits), Headings (2 digits), Sub-headings (2 digits) and the tariff code level (a further 2 digits) making an 8 digit code. At the local level, a further 2 digits can be added to give a 10 digit code.

Product group 10 digit Commodity Code
Catalysts 8708923500
DPFs 8708923500
Pipes 8708923500
Pressure Pipes
Fitting Kits
Universals 8708923500

Why is country of origin important and what are the rules?

Country of origin is a determining factor in whether import duty tariffs are due. With an FTA agreed between the EU and UK, goods of UK origin have a zero tariff under the terms of the agreement. Rules of origin in the agreed FTA are based on the following factors:

  • Change of commodity code
  • Sufficient transformation or processing
  • Sufficient value added

Subject to advice still being taken and to the wording of the FTA agreed, BM Catalysts believe that most catalogued part numbers are likely to meet the standard required to claim UK origin.

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Company registration number: 1673421