The hidden costs of bad EORI linking
Overview
Compliance mistakes can cost more than you think in the fast-paced world of international trade. One of the most overlooked issues is incorrectly linking an EORI number. While most businesses know they need an EORI (Economic Operators Registration and Identification) number for customs clearance in the EU and UK, only few realize the hidden financial and operational risks when it’s linked incorrectly.
What is an EORI number and why is it critical?
An EORI number is a unique identifier that customs authorities use to track businesses involved in import, export, and transit operations. Without it, goods cannot legally cross borders. But having an EORI number isn’t enough. It must be correctly linked to:
- The right legal entity
- The correct VAT number
- All customs declarations and systems
A single mismatch can trigger a variety of problems.
The real risks of bad EORI number linking
1. Customs delays and supply chain disruptions
Incorrect EORI details often result in shipments being held at customs. This leads to:
- Missed delivery deadlines
- Increased storage and demurrage fees
- Customer dissatisfaction and reputational damage
For businesses operating on tight timelines, these delays can be costly and damage client relationships.
2. Unexpected financial liabilities
A little-known fact is that the entity whose EORI appears on the customs declaration is legally the declarant, and fully liable for customs debt.
If your freight forwarder or broker uses the wrong EORI, you could end up paying:
- Import duties
- Penalties for incorrect declarations
- Interest on late payments
In some cases, businesses have faced six-figure liabilities simply because their EORI was misused.
3. VAT compliance headaches
Bad EORI linking can derail VAT compliance in multiple ways:
- Import VAT reclaims can be blocked due to mismatched data
- Incorrect VAT reporting in your returns
- Increased risk of audits and penalties
Without a valid and correctly linked EORI, you may lose the right to deduct import VAT, adding unnecessary costs to your bottom line.
4. Increased Administrative Burden
Correcting EORI mistakes is not quick or cheap. It often involves:
- Amending customs declarations
- Coordinating with multiple authorities
- Paying additional brokerage and handling fees
Correcting these mistakes drains time and resources that could be spent on growing your business.
Why do these errors happen?
Common causes include:
- Using an outdated or invalid EORI number
- Linking the wrong EORI to a VAT number
- Miscommunication between businesses and customs agents
- Lack of internal compliance checks and controls
How to avoid these hidden costs
- Validate your EORI regularly using EU or UK online tools.
- Ensure EORI and VAT numbers match across all customs documentation.
- Train your logistics and finance teams on compliance requirements.
- Audit customs declarations periodically to catch errors early.
- Act fast on discrepancies because the longer they remain, the higher the risk.
Final thoughts
Bad EORI linking is more than a clerical error, it’s a compliance risk with real financial consequences. From customs delays to unexpected tax liabilities, the costs can escalate quickly if not managed properly.
At Baltic Assist, we specialize in customs and VAT compliance across the EU. If you suspect issues with your EORI setup, or want to prevent them before they happen?
Our team can:
- Review your EORI and VAT alignment
- Identify compliance gaps
- Implement best practices to keep your supply chain moving smoothly
Contact us for a free consultation and avoid the hidden costs of bad EORI linking.
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