Understanding EORI Number: A Beginner's Guide
It is common to see American clothing brands are widely exported to Europe, while European electronics importers frequently source goods from Asia. Behind these seemingly simple transactions lie complex customs procedures and regulations. To simplify clearance, customs authorities require an efficient and accurate way to identify every business involved in trade.
This is where the EORI number comes into play. But what is an EORI number exactly? What does it do? And how can you apply for one? In this article, we will answer these questions one by one to help you better understand this essential identifier for international trade.
What is the EORI Number Meaning?
The EORI number is a unique code given to businesses, individuals, or organizations involved in customs activities like importing and exporting. Think of it as a customs "ID card" that helps customs authorities in the EU and UK easily and efficiently identify each economic entity and process shipments.
Without an EORI number, businesses will not be able to complete the necessary customs declarations smoothly, and may even cause goods detention and delayed customs clearance. This significantly affects your business operation.
Only by having an EORI number can EU/UK customs quickly identify business information so as to accelerate customs clearance, and reduce waiting times and associated costs. Plus, it is also linked to VAT declarations and other tax affairs, ensuring you handle your tax obligations accurately.
Who Needs an EORI Number?
Need an EORI number or not, it greatly depends on which group you fall into. Here's a quick breakdown:
- EU Businesses: Regardless of your business size, you are required to get an EORI number as long as you sell to customers from other EU countries.
- Non-EU Businesses: If you store goods in the EU (e.g., through a fulfillment center or warehouse) for sale, import goods into the EU for sale to EU customers, or export goods from the EU, you must apply for an EORI number.
- UK Businesses: Following Brexit in 2021, most UK businesses now need an EORI number to trade goods with the EU. Remember, UK EORI numbers are different from EU ones.
- Freight Forwarders and Transporters: For any carrier involved in shipping goods across EU borders, you'll need an EORI number.
How to Apply for an EORI Number?
Getting an EORI number is essential when you are trying to import or export stuff within the EU or UK. Before applying, ensure that your business meets the criteria for needing an EORI number. Next, let's go through how to get one easily.
Determine the Application Country
- For EU businesses, it is a breeze. Just contact your local customs office, and they will guide you through the process.
- For Non-EU businesses, you need to apply for an EORI number in the EU country where your goods are entering (usually the country where you have a warehouse or fulfillment center). You must register with the customs authority of that specific country.
Prepare Required Documents
While the application procedures in different places may be slightly different, the following documents are required:
- Business registration information: including business name, registered address, etc.
- VAT number and registration effective date, if you have one.
- Business license.
- Description of the goods you will be trading.
Just a heads up for UK businesses: you are obliged to offer some additional details such as your SIC code, UTR, and National Insurance number.
Applying for an EORI number
To simplify the application process, most EU member states now offer an online application portal. You can directly visit the local customs website to submit your application online. Likewise, you can find an entrance on HMRC to apply for the UK EORI number.
While it is a piece of cake, it is also advisable to start earlier, preventing unnecessary delays.
How Long Can You Get an EORI Number?
The process of obtaining an EORI number typically takes anywhere from a few days to several weeks, depending on the country where the application is submitted.
If you're a non-EU business, it's recommended to appoint agents to apply for an EORI number for you as the process can be complex in different countries.
Once get an EORI number, you're good to go! You can use it for everything from customs clearance to export declarations. And don't forget to include it on all your customs declarations. Also, it is important to let everyone involved in the process get informed, including your freight forwarder, customs broker, and carrier. Failure to do so could result in unexpected delays or even penalties.
EORI numbers are generally permanently valid. However, if your business information changes, such as your company name, address, or tax information, you must update Customs immediately to ensure a smooth customs clearance.
Additionally, please ensure that your EORI number is always valid and accurate. You can use the VATAi EORI Number Checker to quickly verify the validity of EORI numbers for EU and UK entities, including your trading partners, suppliers, and customers.
How Much Does it Cost to Get an EORI Number?
Customs authorities provide EORI numbers free of charge, even though the application process may take some time and effort.
What Does an EORI Number Look Like?
The EORI number format usually includes a two-letter country code plus a unique identifier of up to 15 digits. However, different countries have slightly different structures. To make it easier to understand, here are some EORI number examples:
- Germany: A German EORI number starts with "DE" and is followed by a unique 14-digit identifier. German customs assigns this number when a company registers. So, it looks something like DE 12345678912345.
- France: The standard EORI number for France includes a 14-digit SIREN code for business registration. For instance, FR 12345678912345.
- Ireland: Irish EORI numbers are similar to VAT numbers. Both start with the country code "IE" followed by 7 digits. For example: IE 1234567.
- United Kingdom: The UK EORI number is a bit different. If your business has not yet registered for VAT, your EORI number will start with "GB" and have 12 digits after it, like GB123456789123. But if you get VAT registration, your EORI number will still go with "GB" but end with your VAT number and "000", looking something like GB123456789000.
Where to find an EORI number?
First of all, you can easily look up an EORI number on the customs documents you've received. Also, it might be included on your business registration papers. Just in case you still fail to find it, don't hesitate to contact your local customs authority. They can provide you with the necessary information.
Is the EORI Number the Same as the VAT Number?
No. EORI numbers and VAT numbers might sound similar, but they are actually quite different. To help clarify the differences between them, check out the table below.
For sellers involved in cross-border trade, especially when importing or exporting goods to the EU or using EU-based fulfillment centers, both EORI and VAT registration are required—EORI for customs and VAT for sales. If you have any questions about VAT, don't hesitate to contact VAIAi VAT Services for a free consultation.
Final Words
An EORI number is essential for businesses venturing into international trade. This article introduced the meaning, application process, and importance of the EORI number in detail. After reading, you might already have a comprehensive understanding of the EORI number. Having this unique "Customs ID" can not only help businesses speed up customs clearance and reduce delays and costs but also provide more convenience and compliance assurance for international trade.