Simply Dynamics

17th November 2020

Brexit, Customs & Dynamics 365 BC/NAV

Are you ready - 3 Steps to consider?

Even if a trade deal is agreed before 1st Jan 2021 Customs declarations and 3rd Country VAT will mean the following 3 steps will be required for most businesses operating 3rd country import/export and transit movements. The information below has been based on our attendance at a number of BREXIT seminars and advisor meetings. But we strongly advise each client to consider their own situation and get appropriate relevant advice.

STEP 1: Your Business Registrations

EORI Registration

For any company moving goods via a 3rd Country an EORI registration is required (1 EU registration in ANY EU region and 1 GB/UK Registration if you are operating in GB/UK)

  1. ROI: Apply for your EU EORI number. (via ROS – short timeframe)
  2. GB: Apply for your GB/UK EORI number. (via HMRC – first requires Gateway ID)

VAT Registration

For ROI companies looking to deliver duty paid into GB or GB companies looking to deliver duty paid into ROI they will need a local VAT Registration number.

  1. ROI: New VAT registrations are currently taking up to 3 months
  2. GB: New VAT registrations are currently taking up to 3 months

Customs Comprehensive Guarantee

In both ROI and GB we understand this process is now taking months

  1. ROI: In order to operate AEP Payments for custom VAT and Duty you will need a revenue TAN number and if operating Deferred Payments, a Comprehensive Guarantee, to settle customs charges.
  2. GB: HMRC and GOV.UK have comprehensive guides explaining the conditions required.


We are recommending, if not already done, you complete the following data preparation in your Dynamics NAV/BC client as soon as possible.

From NOW

  • Incoterms
    • We recommend you update your Shipment Methods to reflect Incoterms 2020 and include “(Incoterms 2020)” in the description. These should be displayed on all sales and purchase documents. See Incoterms guide below.
  • Item/Product Master
    • Setup and verify the correct Tariff/Commodity codes.
    • The link below will allow you verify the correct code and any Tariff implications based on country of origin
    • Setup and Verify the gross and net weights per base unit of measure.
    • Setup the Country of Origin
    • *** remember if you are buying from a UK distributor a product Originating in China then from Jan 1st the relevant EU/Chinese tariff will apply even on the shipment from the UK ***.
  • Documents
    • If you have not already done so then your document packs should be updated to include Company Vat number, EORI number, product tariff codes and weights.

From 1st Jan 2021

  • General Business Posting Groups (GBPG’s)
    • Switch General Business Posting Groups on customers and vendors from GB/EU to a new one to reflect their new Export status.
  • Vat Business Posting Groups (VBPG’s)
    • Review your VBPG’s to ensure they are still valid or require new ones.
  • Vat Statement
    • This will need to be modified to reflect the new setups above.
  • Open Sales and Purchase orders
    • Any Import/Export orders that have no transactions yet (shipments or receipts) will need to be revalidated with the correct Posting groups.
    • Any Import/Export orders that are partially completed (shipments or receipts posted) need their remaining quantity reduced to zero and a fresh order created for the balance.
  • Charge Item setup
    • If not already in place you may want to setup Charge items to allow you process and absorb customs costs into either your import or export item costs.
Incoterms 2020

STEP 3: Your Business Processes

Business have 3 options to handle the upcoming changes

  • Existing Carrier Services
    • If your existing Carriers are offering Customs Clearance services then this may be your fastest and simplest solution in the short term. International carriers like UPS, FEDEX, DHL e.t.c. are providing these additional services.
    • Equally if your suppliers are offering delivery under DDP terms then your imports are not impacted and if you are shipping under delivery terms EXW your exports are not impacted.
  • Customs Clearance Agents

*** Purely as a guide we have included an image below of Public sample declaration pricing from Customs Clearance Agent Declaron ***

  • In-House / Manual
    • Client with either the In-house expertise or very low transaction volumes may decide to handle their customs paper-work manually.
Customs Pricing
Sample Customs Clearance Pricing - Declaron

How can SimplyD Help

If you would like to discuss your plans and requirements your assigned team lead can schedule a call - just log a request with our support desk

  • Mass Data Updates: If your require our assistance we can schedule same.
  • Document Pack: If you currently have our SD Document Pack the latest version includes many of the required changes.
  • Clearance Interface: We will be launching SD Interface Customs mid December 2020 to help automate the file transfer for import/export instructions and also processing customs return messages/acknowledgements. This should then be available in Microsoft Appsource for public cloud clients by late January 2021.

Like what you see? Contact Simply Dynamics today!

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