Logistics Terms EORI (Economic Operator Registration and Identification number)

If your business is involved in importing or exporting goods within the EU or the UK, you need an Economic Operators Registration and Identification (EORI) number. This unique identifier is essential for customs clearance and ensures smooth trade operations by allowing authorities to track and process shipments efficiently. With recent changes, particularly after Brexit, businesses must understand the differences between UK and EU EORI numbers and how to register correctly. In this guide, we’ll explain what an EORI number is, why it’s essential for businesses, how to apply for one, and the impact of Brexit on EORI requirements.

What is an EORI number?

An Economic Operators Registration and Identification (EORI) number is a unique identification code assigned to businesses and individuals engaged in importing or exporting goods within the European Union (EU) and the United Kingdom (UK). This number is used by customs authorities to track shipments, process declarations, and ensure compliance with trade regulations.

The EORI system was introduced by the European Commission in 2009 to streamline customs procedures and improve trade security. Without an EORI number, businesses cannot legally complete customs documentation, which can result in delays, additional costs, or penalties when moving goods across borders.

An EORI number is structured as follows:

• For EU countries: The number typically consists of the country code (e.g., "DE" for Germany, "FR" for France) followed by a unique identifier.
• For the UK: The number starts with "GB" for UK-based businesses and "XI" for Northern Ireland traders dealing with the EU.

Why is an EORI number important for businesses?

An EORI number is mandatory for businesses involved in importing, exporting, or transporting goods across EU and UK borders. Without one, shipments can be held at customs, leading to significant delays and financial penalties.

Key reasons why an EORI number is essential for businesses:

• Smooth customs clearance – Customs authorities use the EORI number to process declarations efficiently, reducing the risk of shipment delays.
• Legal compliance – Businesses must have a valid EORI number to comply with international trade laws.
• Avoidance of penalties and extra costs – Companies without an EORI number may face fines, additional storage fees, and longer processing times.
• Facilitates trade within the EU and UK – Having an EORI number ensures seamless cross-border transactions and compliance with post-Brexit customs regulations.
• Required for customs duty payments – Businesses must use an EORI number when paying import duties, VAT, or other customs-related fees.

If a company frequently trades with the EU or UK, applying for an EORI number early prevents disruptions and improves operational efficiency. Understanding and securing an EORI number is a critical step for businesses looking to engage in international trade successfully.

(Source: Firefly, Adobe)

Steps to Apply for an EORI Number

Applying for an Economic Operators Registration and Identification (EORI) number is a straightforward process, but it requires careful attention to ensure compliance with customs regulations. Here’s a step-by-step guide to obtaining an EORI number:

Step 1: Determine If You Need an EORI Number

• If your business imports or exports goods outside the EU or UK, you need an EORI number.
• Even if you use a customs broker or freight forwarder, you must have your own EORI number for customs declarations.
• Some service-based businesses may not require an EORI number, so check with the relevant customs authority.

Step 2: Choose the Right EORI Number Type

• UK-based businesses: Must apply for a UK EORI number (prefix: GB).
• EU-based businesses: Must apply for an EU EORI number (assigned by the customs authority in their country).
• Northern Ireland businesses trading with the EU: Need an EORI number starting with XI.

Step 3: Submit Your Application to the Relevant Customs Authority

• UK businesses: Apply through the UK government’s HM Revenue & Customs (HMRC) portal.
• EU businesses: Apply via their national customs office (e.g., German businesses apply through the Bundeszentralamt für Steuern, French businesses apply through Douane.gouv.fr).
• The application is usually online, but some countries may require paper-based forms.

Step 4: Provide the Required Information

The customs authority will request essential business details, including:

• Company name and legal entity type
• Business address
• VAT registration number (if applicable)
• National tax ID or company registration number

Step 5: Wait for Processing and Approval

• In the UK, EORI numbers are typically issued within a few hours to 5 working days.
• In the EU, processing times vary by country but usually take a few days to two weeks.
• Once approved, your EORI number will be sent via email or available in your government’s trade portal.

Step 6: Verify and Start Using Your EORI Number

• Once received, check that your EORI number is active by using an official customs database (e.g., the European Commission’s EORI validation tool).
• Provide the number to your customs broker, freight forwarder, or suppliers for seamless trade operations.

Required Documents for EORI Registration

To complete the EORI application, businesses must submit certain documents. These vary by country but typically include:

• Business Registration Certificate – Proof that the business is legally registered.
• VAT Registration (if applicable) – If the business is VAT-registered, a VAT certificate may be required.
• Company Tax Identification Number (TIN) – Used to verify the business with tax authorities.
• Proof of Business Address – Such as a recent utility bill, bank statement, or lease agreement.
• Passport or ID (for sole traders/individual applicants) – Required for non-incorporated businesses.
• Authorization Letter (if a third party is applying on behalf of the company) – If a customs agent or freight forwarder is handling the application, a signed authorization letter may be necessary.

By preparing these documents in advance, businesses can ensure a faster and smoother EORI registration process, reducing delays in international trade operations.

(Source: Firefly, Adobe)

Understanding UK EORI vs. EU EORI

Brexit has significantly impacted trade between the United Kingdom (UK) and the European Union (EU), leading to changes in Economic Operators Registration and Identification (EORI) number requirements. Before Brexit, UK businesses could use a single EU EORI number for all trade within the EU. However, since the UK officially left the EU on January 1, 2021, businesses now require separate EORI numbers for the UK and the EU if they trade in both regions.

Key Differences Between UK EORI and EU EORI:

For UK businesses exporting goods to the EU, an EU EORI number is now required. This means companies need to apply separately for an EU EORI number in one of the EU member states where they conduct business. For businesses based in Northern Ireland, an additional "XI" EORI number is needed for trade with the EU under the Northern Ireland Protocol.

Impact of Brexit on EORI Registration

Brexit has introduced new challenges for businesses trading between the UK and the EU. Here are the key impacts on EORI registration and customs processes:

1. UK Businesses Must Have Separate UK and EU EORI Numbers

• Before Brexit: A UK-issued EU EORI number was valid for all EU customs procedures.
• After Brexit: A UK EORI (GB) is only valid for UK customs. A separate EU EORI is needed to clear goods into the EU.

2. Increased Customs Declarations and Paperwork

• UK businesses now need to file customs declarations for goods moving between the UK and the EU.
• This has increased processing times and compliance requirements for importers and exporters.

3. Northern Ireland Has Unique EORI Rules

• Businesses in Northern Ireland trading with the EU must apply for an XI EORI number in addition to their GB EORI.
• If a Northern Ireland business trades with non-EU countries, they need both a GB and XI EORI number depending on their trade routes.

4. Delays and Additional Costs for Businesses

• Brexit-related border checks and compliance requirements have led to longer transit times and additional costs for businesses, especially in logistics and supply chain management.
• Many UK businesses have had to restructure their supply chains or set up EU-based subsidiaries to avoid border delays.

5. EU-Based Companies Now Need a UK EORI for UK Trade

• EU companies exporting goods to the UK must obtain a GB EORI number to clear goods through UK customs.
• This was not required before Brexit and has added extra administrative steps for EU exporters.

How to Manage Post-Brexit EORI Requirements

To navigate post-Brexit trade smoothly, businesses should:

✔ Apply for the correct EORI numbers depending on trade routes (GB, XI, or EU EORI).
✔ Use customs brokers or freight forwarders to ensure compliance with new regulations.
✔ Plan for increased paperwork and customs declarations when trading between the UK and EU.
✔ Consider setting up an EU-based entity if dealing with frequent EU shipments to avoid border delays.
✔ Stay updated on regulatory changes as the UK and EU continue to refine post-Brexit trade policies.

By understanding these new EORI requirements and adjusting trade strategies accordingly, businesses can minimize disruptions and maintain smooth cross-border operations.

(Source: Firefly, Adobe)

Who Needs an EORI Number?

An Economic Operators Registration and Identification (EORI) number is required for businesses and individuals involved in international trade within the EU and the UK. However, not all entities need an EORI number. Below is a breakdown of who must obtain one:

Businesses That Require an EORI Number:

• Companies importing or exporting goods to/from the EU or UK – Any business moving goods across borders must have an EORI number for customs clearance.
• Freight forwarders and customs brokers – If they submit customs declarations on behalf of their clients, they must register for an EORI number.
• Logistics and transport companies – Businesses handling shipments that go through customs require an EORI number to track and process cargo efficiently.
• E-commerce businesses shipping internationally – Online retailers that sell goods across EU or UK borders must register for an EORI to comply with customs regulations.
• Manufacturers and wholesalers – If they import raw materials or export finished goods internationally, they need an EORI number.

Entities That May Not Need an EORI Number:

• Businesses trading only within their own country – If no cross-border shipments occur, an EORI number is not required.
• Service-based businesses – If a company provides services rather than physical goods, it typically does not need an EORI number.
• Private individuals making occasional imports – If an individual rarely imports goods for personal use, an EORI number is not necessary. However, frequent importers may be required to register.

If you are unsure whether your business needs an EORI number, it is best to check with your national customs authority to ensure compliance.

How to Check if an EORI Number is Valid?

Verifying the validity of an EORI number is crucial to ensuring smooth customs clearance and avoiding delays. Here’s how to check if an EORI number is active and valid:

Method 1: Use the European Commission’s EORI Validation Tool

• The EU EORI validation system allows businesses to verify if an EU-issued EORI number is registered and active.
• Visit the official European Commission EORI Validation Portal https://ec.europa.eu/taxation_customs/dds2/eos/eori_validation.jsp?Lang=en
• Enter the EORI number and click "Validate" to check its status.

Method 2: Check with National Customs Authorities

• For UK EORI numbers, businesses can verify their status through the UK Government’s EORI checking tool on the HM Revenue & Customs (HMRC) website.
• If an EORI number is not found in online databases, it may still be valid but not publicly listed—in this case, contacting the issuing customs office is the best option.

Method 3: Confirm with Trade Partners or Freight Forwarders

• If working with a customs broker, freight forwarder, or supplier, they can help confirm whether an EORI number is active before shipping goods.

Common Issues When Checking an EORI Number:

• Number not found – If the system does not recognize the EORI, it may be inactive or not yet registered.
• Incorrect format – Ensure the EORI number follows the correct structure, including the country code (e.g., GB123456789000, DE987654321).
• Recently issued numbers – New registrations may take a few days to appear in validation databases.

Ensuring that your EORI number is valid before trading can prevent customs delays, penalties, and unnecessary business disruptions.

(Source: Firefly, Adobe)

An Economic Operators Registration and Identification (EORI) number is a fundamental requirement for businesses involved in importing and exporting goods within the UK and the EU. Without a valid EORI number, companies may face customs delays, penalties, and increased operational costs that could disrupt their supply chain. Post-Brexit, businesses trading between the UK and EU must now navigate separate EORI requirements, including GB, XI, and EU EORI numbers, depending on their trading activities. Understanding these distinctions and securing the correct EORI registration is crucial for smooth cross-border operations.

To maintain compliance and avoid unnecessary customs complications, businesses should:

✔ Verify if they need an EORI number based on their trade activities.
✔ Apply for the appropriate EORI number (UK, EU, or both) before engaging in international trade.
✔ Regularly check EORI validity to prevent customs clearance issues.
✔ Stay informed about regulatory changes to adapt their trade strategy accordingly.

By following these best practices, businesses can ensure efficient customs processes, minimize risks, and facilitate seamless international trade. Whether you are a new exporter or an established global trader, understanding and managing your EORI compliance is key to successful international operations.