What is IEN?
The IEN number is also a customs clearance serial number generated when the goods are declared in the UK. The full name is Import Entry Number. As long as the import customs clearance and tax payment will have this code on the C88 file; if the seller uses his own VAT customs clearance, then there is a separate IEN code on the C88.
This number is unique, which also means that customs clearance in accordance with the general trade model that used double-clearance tax before may not be able to provide each seller with an IEN number, which also means that Amazon has finally begun to cooperate with European tax bureaus Collaborate to ensure the compliance of the platform is not questioned.
It is understood that from April 1, 2019, Amazon will comply with legal requirements and implement the Warehousing Service Operator Due Diligence Scheme (FHDDS), which requires sellers to provide Amazon with IEN for all non-EU origin goods imported into UK warehouses, unless IEN is not required if these goods have been exempted.
As can be seen from the Amazon backstage, the platform provides sellers with 240 days to submit the IEN code, so sellers have sufficient time to prepare.
Amazon is obliged to notify HMRC (HMRC) if it knows or has reasonable grounds to suspect that the seller has failed to comply with UK VAT and customs obligations in relation to imported goods, and if Amazon has such good reason to suspect that you have failed to meet the relevant obligations, And still not fulfilled after 60 days, then Amazon is obliged to stop providing delivery services to the seller’s products. Failure to comply with these obligations could result in Amazon being fined up to £3,000 for each non-compliance, or cessation of FBA services to sellers, and could result in the revocation of Amazon’s license.
In addition, the seller needs to pay attention that if the seller’s goods pass through the customs normally, the IEN carrier must have it, and the shipment created before April 1 does not need to be filled. However, those created from April 1st need to be filled out by sellers.
IEN becomes the terminator of double tax clearance?
The cross-border e-commerce industry is gradually moving towards compliance after going through a stage of brutal growth. Compared with the e-commerce groups who were previously in a place outside the law, the cost of tax evasion and evasion is very low, and they can reduce costs in all aspects. In order to maximize profits, this industry has always attracted the entry of gold diggers one after another, making the entire industry a hardest hit by tax evasion and tax evasion. The logistics link is a part where sellers can make a big fuss.
In recent years, a series of measures to prevent tax evasion and evasion by cross-border sellers have been introduced one after another, such as the German VAT incident that caused a lot of uproar some time ago. However, under the pressure, those channels in the logistics industry that include gray customs clearance still have a chance to breathe.
Now that Amazon is pushing the new IEN regulations, many sellers say that the logistics cost may rise steadily in the future, and it will become even more difficult to save operating costs in the logistics link.
It is true that IEN is coming strongly, which means that the cooperation between Amazon and European tax bureaus has entered a new level, and some industry insiders said that IEN may become the terminator of double-clearing tax.
It is the obligation of every seller to actively pay taxes. Next, sellers need to actively pay attention to the IEN incident and comply with this regulatory flow. Not only did this matter make the sellers overwhelmed, but the recently noisy customs clearance issue also made the sellers’ heads hurt.
It is reported that the German Tax Office recently issued an important notification document, which shows that on April 13, 2019, the EORI number in the United Kingdom may not be able to clear customs in Germany and the European Union.
According to the actual situation: In response to the uncertainty of the current form of Brexit, German customs has issued an emergency warning measure. If the UK decides to leave without a deal on April 13 at the voting meeting of British parliamentarians on April 10 (Central European Time). Europe, then Germany will cancel the British EORI customs clearance in Germany, and the seller can apply for the German EORI on April 14 (that is, after the UK completes Brexit).
It is understood that at present, in the absence of Brexit, an enterprise’s business license can only have one EORI number in the EU. In such a dilemma, what should the seller do? Julia suggested that sellers, if there is no purchase plan in April-June, and are existing customers of J&P Germany, can wait and see the Brexit process first, and then apply for the German EORI number later. If you are concerned about being affected, you can apply for an urgent German EORI; and you must register and provide all national tax numbers and existing requirements for the seller by April 4. Finally, she also emphasized that if the UK undergoes a no-deal hard Brexit, the more important time points are:
1. April 1-April 3, 2019
Sellers can make urgent German EORI applications
2. April 13, 2019
UK EORI will not be able to clear customs in Germany
3. April 14, 2019
Non-urgent application sellers can apply for German EORI
In addition, the seller also broke the news recently that Amazon’s backstage requires sellers who are in the UK to provide an IEN number!
Solutions for UK IEN coding:
IEN actually refers to the import declaration code, which has the same meaning as the customs declaration code in mainland China, as long as the import customs clearance will have this code; if the customer uses his own VAT customs clearance, then there is a separate IEN code on C88 . If the tax-included channel is used, then the idea of tax-included is that one VAT clears the goods of different stores with multiple tickets. We can also provide IEN, but in this case, Amazon may question the VAT of the main body bound to the store and provide us with it. The VAT bound by the IEN is different. Of course, the processing of the IEN generally has a time limit (280 days, the customer can check how many days are left); our company will provide the British customs clearance service in the next, but this package Tax service In order to solve the problem of separate IEN, customers can provide their own VAT to us, we will do customs clearance, we need to charge a separate customs clearance fee, we will declare taxes reasonably to avoid excessive taxes!
When goods are imported into the EU, they are assigned an Import Entry Number (IEN) by EU customs authorities. When your shipment enters the EU and is declared to customs authorities, it will be assigned an IEN. The IEN is issued to the customs declarer, who may be your logistics or freight forwarder. If you use a freight forwarder, they can contact you to send the IEN. There may be cases where shipments are not assigned an IEN or you may not be able to obtain them. When importing goods, please check with your logistics provider/carrier or customs authorities.
This policy is based on UK legal requirements to ensure that sellers meet UK VAT and customs obligations related to imported goods. If Amazon has such good reason to suspect that you have not fulfilled the relevant obligations, and still not fulfilled after 60 days, then Amazon has Obligation to stop providing delivery services for your products. Failure to comply with these obligations may result in Amazon being fined £3000 for each failure to comply and may result in the revocation of Amazon’s licence.
Regarding the UK IEN tax number, the following are related frequently asked questions, you can refer to:
1. What if I cannot obtain the Import Entry Number (IEN) for some or all of my shipments?
If you do not have an IEN for your shipment, you do not need to enter one. If you would like to notify us, you should confirm that you do not have an IEN on the Shipment Processing Progress page in Seller Central. For more information, see the “Where do I enter the Import Entry Number (IEN)?” question on the bottom help page link page.
2. What does the Import Entry Number (IEN) look like?
The European Union’s IEN does not follow a standard number and/or letter format. IENs may be issued by different EU customs authorities, depending on the import method. On customs documents, the IEN can be identified as “Import Number”, “Entry Number” or “Customs Entry Number”.
3. Where do I enter my Import Entry Number (IEN)?
As of April 1, 2019, you will be able to create shipments that were created but not in a “Closed,” “Deleted,” or “Canceled” status, as well as shipments created on or after April 1, 2019 Enter IEN. You do not need to provide details for shipments with a status of “closed”, “deleted” or “cancelled” and shipments created before April 1, 2019. On the Shipment Processing Progress page in Seller Central, you will see the IEN status next to each FHDDS compliant shipment, indicating whether the IEN entry is complete, incomplete, or closed for editing (see FAQ — “Entering Import Entries” number (IEN)”). You can click on the IEN status to open a text box where you can enter the IEN for the shipment or an IEN indicating that you do not have a shipment. After saving your IEN entry, the IEN status will show Complete.
4. How long does it take to enter the Import Entry Number (IEN)?
After you create a shipment, you have 240 days to go to the Shipment Processing Progress page in Seller Central to add the relevant IEN you received for that shipment (if you have received it). After 240 days from the date the shipment was created, the IEN status will show as Closed for Editing. At this time, you can still view your IEN entries, but you can no longer edit them.
5. Can I edit a previously provided IEN?
Yes, you can edit saved IEN entries for 240 days after the shipment is created. After 240 days, the IEN entry will be locked from editing.
