On 13 July 2020 the Government published new guidance which sets out procedures for businesses moving goods between GB and the EU from 1 January 2021. These do not cover the movement of goods between GB and Northern Ireland which are covered by different rules.
On 1 January 2021 the transition period with the EU will end, and the UK will become a “third country” and as such, it will be required to operate a full, external border, in a manner similar to the UK’s current position with the Rest of World (ROW). This means that controls will be placed on the movement of goods between GB and the EU for the first time in decades.
The principles of the so-called “Core Model” will apply to all goods movements between GB and the EU, regardless of the mode of transport of the movement.
HMRC has stated that, to afford industry extra time to make necessary arrangements, it has taken the decision to introduce the new border controls in three stages up until 1 July 2021.
The guidance covers the core process of;
- customs declarations
- customs duty
- import VAT
- safety and security declarations (imports and exports)
It sets out actions that businesses should take now (especially in light of the coronavirus position), as they will be required regardless of the outcome of continuing negotiations (which, let’s face it, are likely to amount to nothing).
Some other changes will affect only specific goods movements, eg; foodstuffs which will include the need for special certifications, entering the country via specific locations, and undergoing
additional checks at the border.
If not already in place, businesses need to:
- apply for a GB eori number
- apply for a duty deferment Account
- prepare to pay or account for VAT on imported goods
- ensure drivers have correct International Driving Permits
- consider commercial arrangements
- consider incoterms
- obtain the Commodity Code of goods
- establish the customs value of goods
- consider how customs declarations to HMRC systems will be made and the use of an Customs intermediary
The EC has published a new version of the Guidance on Customs on 14 July 2020.
This a comprehensive guide is absolutely essential reading for any business which imports or exports goods cross border (transactions known as acquisitions and dispatches from/to the EU pre-Brexit). The publication demonstrates that there will be considerably more red tape and delays which will not reduce in the future. The marketability of GB goods in the EU is unlikely to increase and, if there is no alternative to importing goods from the EU, the cost and time taken to purchase will grow.
Good luck everybody!
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