How Brexit Will Affect Your UK-EU Business
New Requirements for the Movement of Goods Between The UK and EU
Most businesses in the past have not had any need to complete any detailed paperwork whilst the UK was part of the EU.
Since 1st January, to move goods across this new UK-EU border, there are the following considerations:
- If you are VAT registered, you must provide details of all your transactions with the EU on your VAT return with additional monthly declarations to HM Revenue & Customs if you exceed the intrastat thresholds.
- You need to comply with regulations in both the UK and overseas. For example, some goods that are allowed in the UK might not satisfy another country’s standards or even be legal there.
- Moving goods to and from the EU demands additional resources, both in terms of financing and skilled personnel.
- Extra logistical problems, contractual issues and paperwork. You may require a contract drawn up using internationally recognised terms and conditions and standard commercial practices to make it clear what your responsibilities are.
common questions
My Company Exports To The EU, Do We Need To Produce Export Declarations?
The vast majority of all goods being exported from the UK to the EU will need Customs Declarations from the 1st January 2021.
You can easily check if you need to do a declaration at the UK Government Website.
You will also need an EORI number – check how to register for one here.
UK Customs Compliance can be complex, which is why even the UK Government website advises businesses to outsource their Customs Compliance work to Customs Brokers, like us.
We create and submit all of the Customs Documents your business requires to HMRC on your behalf, removing the headache of understanding complex customs law.
We will analyse and check all of your necessary documentation and, depending on what goods you are moving, we advise if any licences are required.
Then, depending on the purpose of the export, we select the appropriate customs procedure for you.
My Company Imports From The EU, Do We Need To Produce Import Declarations?
As with UK Exports, the vast majority of all goods being imported from the EU into the UK will need Customs Declarations from the 1st January 2021.
If you are unsure your company needs to produce an Import Declaration, the UK Government provides an excellent short questionnaire that informs if you will need one.
You will also need an EORI number, discover how to register for yours here.
UK Customs Compliance can be hard to understand, especially if your Supply chain is more complex and Customs Procedures not standard, or if you are dealing with goods that are handled with special rules (such as excise goods or food).
For this reason, the UK Government website advises businesses to outsource their Customs Compliance work to Customs Brokers, like us.
We create and submit all of the Customs Documents your business requires to HMRC on your behalf, helping your business focus on what it does best.
We will analyse and check all of your necessary documentation and, depending on what goods you are moving, we advise if any licences are required.
Then, depending on the purpose of the export, we select the appropriate customs procedure for you.
What Customs Procedure Applies To My Shipment?
Goods are moved between the UK and the EU for many different purposes.
For example, they may be ‘sold into free circulation’ as part of an online purchase, raw materials may be imported for processing into new products, unwanted goods may be returning to their supplier, personal items may be shipped as part of a home relocation.
Selecting the right customs procedure can be a complex task, as there are over 100 to choose from, and they are subject to continual change.
It is an important assessment to get right, to ensure compliance and that your goods are classified for the correct duties and taxes.
It’s advisable to seek the advice and services of an Expert Customs Broker, such as us, to determine the correct Customs Procedure and Documentation required for your shipment.
We work with you to determine the customs clearance procedures most appropriate to the purpose of each shipment.
How Can I Get My Deferred Declarations Processed And Approved?
The UK Government has provided a number of easements which apply when importing goods from the EU during 2021.
These easements have in many cases postponed the need for import declarations, providing time for businesses to prepare for the introduction of new customs procedures;
“Deferred Import Declarations: If you are importing goods from the EU, which are not subject to any control or restrictions, you may delay making your customs declarations for up to 175 days after the original date of entry.” – HMRC
Note that this easement will not apply for certain goods including; controlled goods, goods which do not have an EU status or have not been in free circulation in the EU before arriving in Great Britain, and if the goods are not entering into free circulation in Great Britain.
The easement period runs until January 1st 2022; for example, goods imported in December 2021 will have until June 2022 to complete full declarations.
You may of course choose to make your customs declarations at the point of import.
However, if you do choose to delay making your customs declarations, you must keep records of all imported goods to enable you to submit full customs declarations and pay any customs duties which may be liable at a later date.
Don’t let your backlog of declarations build up into an unmanageable administrative nightmare.
Here at UK Customs Declarations, we are ready to start work now on clearing your backlog and ensuring that you stay in control and compliant, as we journey through 2021 together.
More information on the latest announcement can be accessed in this link;