The Ultimate Guide to EORI Number

The Economic Operators Registration and Identification (EORI) number, issued by HM Revenue and Customs (HMRC), is essential for businesses involved in international trade. It streamlines customs procedures and ensures compliance with UK regulations. Without an EORI number, businesses cannot move goods across international borders, leading to potential delays, fines, and operational disruptions.

The EORI system enhances security and efficiency in international trade, allowing customs authorities to track and identify traders. Since Brexit (UK’s exit from EU), obtaining this number has become crucial for meeting stricter customs requirements when trading with the EU and other countries.

This guide provides a comprehensive overview of the EORI system, helping businesses navigate the process effectively and comply with HMRC regulations.

What is an EORI Number?

The Economic Operators Registration and Identification (EORI) number is a unique identifier assigned by customs authorities to businesses and individuals involved in international trade. It serves as a critical tool for tracking and monitoring shipments as they cross borders. An EORI number is mandatory for importing and exporting goods within or outside the European Union (EU) and the United Kingdom (UK). By streamlining customs procedures, it ensures smooth movement of goods, reduces delays, and helps businesses comply with international trade regulations.

Purpose of an EORI Number

The primary purpose of an Economic Operators Registration and Identification (EORI) number is to facilitate smooth international trade by tracking and monitoring shipments as they cross borders. It plays a crucial role in customs clearance and is mandatory for businesses to export or to and export goods to and from the UK. Issued by HM Revenue and Customs (HMRC), the EORI number enables customs authorities to efficiently identify traders, process customs data, reduce the risk of fraud, and ensure the accurate collection of duties and taxes.

Who Needs an EORI Number?

This number is mandatory for businesses and individuals involved in international trade and customs processes. Here is who needs one:

• Businesses Importing or Exporting Goods

Required for businesses that import goods into the UK or EU or export goods to non-EU countries for smooth customs clearance.

• Businesses With a Physical Presence in the UK or EU

If your business has offices, warehouses, or any establishment within the UK or EU and engages in customs activities, this number is necessary.

• Customs Agents & Freight Forwarders

Professionals who manage customs processes and handle goods on behalf of other businesses must obtain such a number.

• UK & EU Businesses Post-Brexit

Since Brexit, businesses in the UK trading with the EU and vice-versa need this number to comply with customs regulations.

• Non-EU Businesses Trading with the UK or EU

Businesses based outside the UK or EU but involved in importing or exporting goods to these regions require this number.

• Entities Involved in Specific Customs Operations

Includes warehouses, transport operators, and logistics providers that manage the movement of goods across borders.

• Movements Between Specific Regions

This number is also required for goods moving:

Between Great Britain and the EU or other countries
Between Great Britain and the Channel Islands
Between Great Britain and Northern Ireland
From Northern Ireland to non-EU countries

Do Private Individuals Need an EORI Number?

Private individuals typically don’t need this number unless they engage in customs activities like importing or exporting for commercial purposes. However, frequent involvement in international trade may require this number to comply with customs regulations.

If an individual lacks this number for commercial imports or exports, the shipping agent can use the individual’s name and address. Individuals can also voluntarily apply for this number.

If individuals are ineligible for an EORI number due to limited customs involvement or lack of establishment, they can appoint a representative with this number to handle customs. Trading without this number is still possible through an indirect representative.

Exemption from the EORI Requirement

However, you won’t need this number if you’re moving goods that are:

Not classified as controlled goods
Intended for personal use only

UK EORI Number Format

A UK EORI number typically consists of the following components:

• Country Code Prefix

The first two characters indicate the country of registration. For businesses moving goods between Great Britain and other countries, the “GB” prefix is used. For businesses trading between Northern Ireland and non-EU countries, the prefix “XI” is used.

• Unique Identifier

This is a 12-digit number that is unique to each business. For VAT-registered businesses, this often includes their VAT registration number.

• Additional Digits for Branches

In some cases, additional digits may be added at the end of this number to identify different branches or divisions within a company.

Are EORI & VAT Numbers the Same?

According to HMRC, the EORI number is not the same as the VAT registration number. However, if a business is VAT registered, its EORI will often be based on the VAT number. For example, the EORI will include the business’ VAT number with additional digits at the end (000). Even if a business is not VAT registered, it can still apply for an EORI.

UK EORI Number Example

For a VAT-registered business: If your VAT number is 123 4567 89 then your EORI number will be GB123456789000
For businesses in Northern Ireland: XI123456789000

How to Apply for an EORI Number starting with GB?

To obtain a GB-prefixed Economic Operators Registration and Identification number, you’ll need the following details:

Unique Taxpayer Reference (UTR) – If you’re unsure about this, you can locate your UTR number online.
Business Start Date & Standard Industrial Classification (SIC) Code – These can be found on the Companies House register.
VAT Number & Registration Date – Applicable if you’re VAT-registered. These details are available on your VAT certificate.
National Insurance Number – Required if you are a sole trader or an individual.

For Non-UK Businesses

If your business operates outside the UK, you won’t need the UTR, SIC code, or National Insurance number.

Application Process

To apply, you must log in to your account. If you haven’t registered yet, you can create an account during the process.

Processing Time

In most cases, you’ll receive your EORI number immediately. However, if HMRC conducts additional checks, it might take up to five working days.

Apply for an EORI number starting with XI

If you’re involved in moving goods between Northern Ireland and Great Britain and other non-EU countries, you’ll need an XI EORI. However, you must obtain a GB EORI before applying for it.

Steps to Apply:

Check Your Eligibility – Ensure you meet the criteria for an XI EORI.
Apply for a GB EORI Number – This is a mandatory step before proceeding with the XI EORI application.
Fill in the XI EORI Application Form – Once you have your GB EORI, complete the XI EORI registration form.

What You’ll Need:

When submitting your application for an XI EORI number, ensure you provide the following:

XI VAT Number – If your business has one, include it in your application.
EU VAT Numbers – Provide any VAT numbers issued by EU member countries.
Proof of Business Presence in Northern Ireland – Submit two supporting documents, such as a bank statement or utility bill, to confirm your business operates within Northern Ireland.

Exceptions:

You won’t need to provide proof of a business establishment in Northern Ireland if:

Your GB EORI application already shows a Northern Ireland address
Your business isn’t based in Northern Ireland, but you need an XI EORI for customs declarations or acting as a carrier

Processing Time:

You’ll receive your XI EORI number within 5 working days.

How to Complete the EORI Application Form?

To apply for a GB or XI EORI, visit the Get an EORI number and fill out the application form. Ensure you have all the necessary details before submitting the form.

If you’re VAT registered, apply here.
If you’re not VAT registered but want to export goods, use this form.
If you’re not VAT registered but want to import goods, fill out this form.

Benefits of Having an EORI Number

In today’s global trade environment, this number is essential for businesses that import or export goods outside the UK or the EU. It is a unique identification number used by customs authorities to track and process shipments. Having this number ensures smooth customs clearance and compliance with international trade regulations. Some of the key benefits of having an EORI number are:

Customs Clearance

It is required to clear goods through customs. Without this number, your shipments may be delayed or rejected.
Compliance with UK & EU Regulations

Ensures your business follows all customs laws and regulations.
Enhanced Trade Facilitation

Enables seamless tracking and identification of goods.
Access to Valuable Trade Data & Records

Allows businesses to monitor their customs history and performance.
Boosted Business Credibility & Professionalism

Shows compliance and professionalism to authorities and business partners.
Quicker VAT Refunds & Duty Relief Claims

Helps in efficiently claiming VAT refunds and duty reliefs.
Smooth Interaction with Customs Authorities

Simplifies communication and helps in resolving disputes and Enquiries.
Improved Supply Chain & Logistics Management

Ensures a more streamlined and efficient handling of inventory and logistics.

Consequences of Not Having an EORI Number

In international trade, this number is a legal requirement for businesses involved in importing and exporting goods. It allows customs authorities to track and process shipments efficiently. Without this number, businesses face several challenges that can negatively impact their operations. Some of the challenges are:

Delays in Shipment – Customs authorities may hold goods until an EORI number is provided, causing disruptions in the supply chain and potential loss of customers.
Fines & Penalties – Non-compliance with customs regulations can lead to hefty financial penalties and additional administrative fees.
Inability to Trade – Without an EORI number, businesses cannot legally import or export goods, resulting in lost revenue and missed market opportunities.
Reputation Damage – Repeated non-compliance can harm business relationships with partners and customers, affecting future contracts and collaborations.
Customs Seizure of Goods – In some cases, goods may be seized or returned to the sender if customs procedures are not properly followed.
Higher Storage Costs – Delayed shipments held at customs can incur additional storage and handling fees, further increasing operational expenses.

How to Ensure Your UK EORI Number Stays Valid & Up-to-Date?

While this number itself does not expire, businesses must proactively renew and update their registration in specific circumstances. These include significant changes in ownership, business activities, or contact details. Timely updates are essential to maintain compliance with customs regulations and avoid potential disruptions in international trade. Regular reviews and audits of the EORI-related information help ensure accuracy and prevent costly delays during customs clearance.

Common Issues & Solutions

Incorrect EORI Format

Ensure that the EORI number format and prefix are accurate. Mistakes in the format can lead to customs delays and rejections. Cross-check with official guidelines and contact HMRC for clarification if needed.

Delays in Issuance

This can occur due to incomplete or incorrect information provided during the application process. To avoid this, double-check all documentation, including company registration details and VAT information. Submitting supporting documents promptly can speed up the process.

Lost EORI Number

If you have misplaced your number, reach out to the customs authority for retrieval. Keep a digital and physical record of the number for future use. In case of any updates to your business information, notify HMRC to avoid confusion during customs clearance.

Conclusion

In today’s globalized economy, having an EORI number is not just a legal requirement but a strategic necessity for businesses engaged in international trade. It streamlines the customs process, reduces the risk of costly delays, and ensures compliance with UK and EU regulations. By proactively obtaining this number, businesses can enhance their operational efficiency, build stronger relationships with international partners, and expand their market reach. To avoid potential fines and disruptions in the supply chain, it is crucial for businesses to apply for this number as soon as possible.