EORI numbers & International Shipping: What eCommerce Businesses Need to Know

Shipping internationally as an eCommerce business comes with challenges. Delays, unexpected fees, and customs hold-ups can disrupt operations and frustrate customers. One key requirement that helps prevent these issues is the EORI (Economic Operators Registration and Identification) number. This unique identification code is essential for smooth international trade.

For eCommerce businesses, an EORI number is more than just a regulatory formality - it plays a direct role in ensuring shipments move efficiently through customs. Without one, you may face lengthy delays, additional charges, or even the risk of your goods being held or seized by customs authorities.

What is an EORI Number?

An EORI number is a unique identifier used by customs authorities to track and identify businesses involved in importing or exporting goods. Its purpose is to streamline customs procedures within the European Union and the United Kingdom.

If your business imports or exports goods outside your country’s customs union, you will likely need an EORI number. This is especially important for eCommerce businesses selling products internationally. After Brexit, UK businesses trading with the EU, and vice versa, are required to have an EORI number to ensure the efficient movement of goods across borders. Without one, you may face delays, additional costs, or even the refusal of entry for your goods.

Why is an EORI Number Essential for eCommerce Businesses?

An EORI number is crucial for international trade. First and foremost, it significantly accelerates customs clearance. With a valid EORI number, customs authorities can quickly identify your business, allowing them to process shipments more effectively. This minimises delays and ensures your goods reach customers on time. 

Without an EORI number, you risk lengthy delays at customs, potentially resulting in storage fees and missed delivery deadlines. More seriously, you could face penalties or even the seizure of your goods. Compliance with customs regulations is a legal requirement, and having an EORI number shows your commitment to following the rules, helping you avoid unnecessary complications. 
In addition, a valid EORI number enhances your business’s professional image. It signals that you are a reputable and reliable trader, fostering trust with both customers and business partners which can be an invaluable advantage in a competitive market.

Not having an EORI number can also impact shipping times and customer satisfaction. Customs-related delays can lead to negative reviews and lost sales. By ensuring efficient customs clearance, you can enhance the customer experience and maintain your business's reputation.

How to Obtain an EORI Number

For UK businesses, obtaining an EORI number is a straightforward process handled by HMRC. The application can be completed online through the official UK government website.

Here’s a simplified breakdown of the process:

• Visit the HMRC Website: Navigate to the official HMRC website and search for "apply for an EORI number."
• Provide Business Details: You'll be asked to provide essential information about your business, including your company name, address, VAT number (if applicable), and contact details.
• Submit Your Application: Once you've completed the form, submit your application online.

You should receive your EORI number immediately after applying. However, if HMRC needs to carry out additional checks, the process may take up to five working days.

EORI Number and Shipping Considerations

Once you have your EORI number, it’s essential to integrate it correctly into your shipping process. Ensure that it is clearly displayed on all customs declarations. This helps prevent delays and ensures customs authorities can quickly identify your business and process your shipments.

When working with international shipping providers, make sure to inform them of your EORI number and confirm that they have it recorded correctly. This ensures they can handle your shipments efficiently and avoid any potential issues at customs.

If your business operates from multiple locations or has several legal entities, you may need to manage multiple EORI numbers. Keep a clear record of these and ensure they are used correctly for each shipment.

It’s important to note that, post-Brexit, UK EORI numbers differ from those issued by EU member states. A valid UK EORI number will start with GB followed by 12 digits and end with three zeros. For example: GB123456789000. A valid EU EORI number starts with XI, as does a Northern Ireland EORI number.

Finally, verifying the EORI numbers of your suppliers and partners is best practice. This ensures they comply with customs regulations and helps prevent disruptions in your supply chain. It also fosters trust and ensures compliance across your business relationships.

You can check a GB EORI number here and an EU EORI number here.

Common EORI Number Mistakes and How to Avoid Them

Although the process of obtaining an EORI number is straightforward, mistakes can still occur. One common issue is entering an incorrectly formatted EORI number. It’s crucial to double-check the number for accuracy when entering it into shipping documents and online forms. A single incorrect digit or letter can lead to delays in processing your shipments.

Another frequent mistake is failing to update your EORI number when your business details change. If you move premises, alter your company name, or update your VAT registration, it’s essential to inform HMRC and update your EORI details. Failing to do so could result in delays, additional costs, or even penalties.

Finally, misunderstanding country-specific requirements can cause complications. While EORI numbers serve a general purpose, each country may have unique customs regulations or documentation requirements. Always research the specific rules for the countries you are trading with to avoid unexpected issues. Keeping up to date with any changes in these regulations is equally important to ensure compliance and prevent disruptions.

Benefits of Having an EORI Number?

Obtaining and maintaining an up-to-date EORI number offers significant benefits for your business, extending beyond legal compliance. It serves as a mark of legitimacy, simplifies customs procedures, and supports business growth.

First, having a unique business identifier readily available streamlines your interactions with customs authorities. This simplifies processes and reduces the risk of delays. By including your EORI number on all relevant documentation, you make completing customs forms and procedures much more efficient.

Second, an EORI number ensures compliance with cross-border trade regulations. This minimises the risk of penalties and legal complications, providing peace of mind when operating internationally.
Additionally, your EORI number unlocks further advantages. It is a prerequisite for applying for Authorised Economic Operator (AEO) status, which grants your business faster customs clearance and preferential treatment which can greatly enhance your supply chain efficiency.

Finally, a valid EORI number helps facilitate expansion into new international markets. By demonstrating your commitment to compliance and efficient trade practices, you build trust with potential partners and customers, laying the foundation for successful global growth.

Conclusion

In the complex world of international eCommerce, the EORI number is a fundamental tool for success. It's more than just a regulatory requirement, it’s a key enabler of efficient customs processes, trust-building, and global growth. By ensuring you have a valid EORI number and understanding its importance, you position your business to navigate international trade with confidence.

Focusing on compliance and operational efficiency is essential for minimising risks and costs while enhancing your reputation and customer satisfaction. Take the time to understand the requirements, apply for your EORI number, and integrate it effectively into your shipping procedures. Doing so will help you build a solid and successful international eCommerce business.

Useful Resources

• HMRC guidance on EORI numbers
• EU customs information (the Union Customs Code)
• Apply for GB EORI number
• Validate GB EORI number
• Validate EU EORI number