Stay ahead of the customs curve With electronic customs data Royal Mail International Updated: 04/02/2019

Overview More and more countries are starting to require that imported international items (i.e. your export items) are accompanied by electronic customs data This includes information on the sender, the recipient and the contents of the item We need you to provide this data in the correct format to meet these new requirements and ensure continued sending of international items without foreign restrictions These are industry-wide requirements and we are committed to helping you get ready to do this Slicker customs clearance in receiving countries should enable a smoother customs process for senders We have been asking you to provide electronic customs data as of 1 January 2019 for the reasons outlined in these slides 08/11/2018

Why electronic customs data Individual country customs requirements – security high on the agenda The USA has passed legislation mandating inbound shipments to be accompanied by electronic customs data from the end of 2018 Brazil are already delaying items without electronic customs data and said they may apply additional fees to recipients for manual processing costs China and Russia are prioritising items with electronic customs data and may delay items without, or return them, e.g. if the data cannot be obtained EU landscape and legislation EU 2020 – The Union Customs Code Regulation Leaving the Customs Union when the UK leaves the EU could require us to provide electronic customs data to destinations within the EU Electronic customs data will soon become the norm and we are committed to working with you to help you be ready! 08/11/2018

How do you benefit? Accurate electronic customs data will ensure readiness and compliance for legislative changes and individual country requirements delays and penalty charges are avoided easier and possibly faster customs clearance and import processes, resulting in enhanced end-customer experience ready access to export delivery features such as notifications and delivery choice as they become available in future The requirement to provide electronic customs data for international items is another reason for using a data-compliant shipping platform such as Click and Drop or Pro Shipping 08/11/2018

Recommended to aid customs processing What this means for you Electronic data requirements What stays the same? Sender details (Name, address) Recipient details (Name, address including destination country) Trade Tariff (Harmonised System or HS) code and country of origin of contents Item details (Description, quantity, weight and value of contents) Postage and insurance costs Recipient telephone number and email Basic info Customs Recommended to aid customs processing Sender telephone number Basic and customs information (green & blue boxes) are already requested and need to be provided accurately A Universal Postal Union (UPU) compliant S10 barcode so the electronic customs data can be linked to the exported goods For tracked export goods, in addition a 2 D barcode What’s new as of 1 Jan 2019? Customs data you are already requested to provide (see left for details) will now also need to be provided electronically* * The easiest way to provide electronic customs data and apply the Royal Mail 13-digit item identifier (S10 barcode) is by using one of Royal Mail’s shipping platforms such as Click & Drop and Pro Shipping or by integrating your system with Royal Mail’s Shipping API. * Royal Mail provides an HS code categorisation service that can be used to aid the provision of customs data; please contact your Account Manager or contact us at internationalservices@royalmail.com 08/11/2018

Labels and electronic data item details Product / Service Type Unique ID Format / Dimensions item details Weight Postage cost* UPU S10 Barcode inc. untracked Recipient Details Contact name Business name Street address line 1 Street address line 2 Street address line 3 City County Postcode Country Mobile number Email address Sender Details Contact name Business name Street address line 1 Street address line 2 Street address line 3 City County Postcode Country Telephone number (mobile preferred) Email address - Basic information *The cost the sender charges their customer for postage/packing of an item - Recommended to aid customs processing - Customs information 08/11/2018

CN22 – low value goods 08/11/2018 Automating label printing Notes: Per item Category (e.g. gift/documents etc.) Value Sender’s signature (to certify declaration) Date Per Contents Item Description Quantity Weight Value Per item Trade tariff (Harmonised System or HS) code Country of origin of goods Automating label printing Notes: All of this data now needs to be submitted electronically, except for the signature which is not currently mandatory in electronic format Royal Mail Click & Drop enables label production to make the process even easier The CN22/CN23 label needs to be affixed on the outside of the item as before - Basic information - Customs information 08/11/2018

CN23 – high value goods 08/11/2018 Notes: Per item Category (e.g. gift/documents etc.) Value Sender’s signature (to certify declaration) Date Per item Trade tariff (Harmonised System or HS) code Country of origin of goods Per Contents Item Description Quantity Weight Value Notes: CN22’s and CN23’s should already be populated fully and accurately. The change for some customers will be to provide the data electronically, except for the signature which is not currently mandatory in electronic format The CN22/CN23 label needs to be affixed on the outside of the item as before - Basic information - Customs information 08/11/2018

Electronic data requirement What data do we need? Why do we need it? The green and blue boxes are already mandatory; the difference is that these must now be completed electronically. You must make sure these are filled in accurately and electronically Basic info Sender details (Name, address) So that your item can be returned if required Recipient details (Name, address including destination country) So that your item is delivered to the correct person and address Customs info So that the receiving post can contact the sender if there is a problem with customs or delivery of the item. If this is not provided the item could be delayed or even destroyed if they can’t contact the sender. Sender telephone number This code classifies your goods and receiving countries use it together with the country of origin of contents to decide whether to permit entry. Different countries have different rules, so its best to get this right. If you don’t include this information or get it wrong, your item could be delayed or the receiving country may apply an additional processing charge where this information is omitted or incorrect. Royal Mail provides an HS code categorisation service for all your items, please contact your Account Manager or contact us at internationalservices@ royalmail.com. Trade Tariff (Harmonised System or HS) code and country of origin of contents 08/11/2018

Electronic data requirement What data do we need? Why do we need it? Customs info This data is required for security, processing and customs charging purposes by the receiving country. Failure to provide it or providing incorrect data can lead to: Incorrect customs charging – meaning your items could be charged taxes or duties at higher rates Your items being denied entry or delayed in customs if customs believe items have been mis-declared or that there could be undeclared prohibited goods Application of additional penalty processing costs Item details (Description, quantity, weight and value of contents) Postage and insurance costs The S10 barcode has been a UPU requirement since 1 January 2018 and is used to reference the customs data for receiving postal authorities. This is because not all countries have the technology to read 2D barcodes yet If the 1D barcode is not applied then the electronic data message will fail and your item could be charged, delayed or refused entry as if you had not provided any electronic information Universal Postal Union (UPU) compliant 1D / S10 barcode in addition to the 2D (square) one required for UK processing email – we are working on a solution for that. Recommended to aid customs processing Although this data is not mandatory for electronic customs, it is useful for receiving postal and customs authorities so that they can contact the recipient if their item is held in customs or undeliverable due to addressing problems. If they can’t contact the recipient then the item may not be able to be delivered or suffer delays. This information aids customs processing such as automatic SMS or email notifications and delivery choices. Recipient telephone number and email 08/11/2018

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