No-Deal Brexit Update
With the 31st October less than 5 weeks away, the UK Government has drastically increased the volume of No-Deal preparation documentation in order for businesses to be ready for this eventuality.
The following is a consolidation of some of the key documents and reference points as well as some further notes on Travel, Imports and VAT.
The first place to start is at the Government Brexit homepage
The simple trader checklist
This is an excellent brief checklist containing the main points and actions to get prepared. Each point also links to the relevant section of the Government website, with an explanation as to what the procedure is and how this can be followed/ implemented.
Register for a HMRC Brexit webinar
Use the Government helplines for greater clarification
0300 3301 331 for Brexit imports and exports assistance or 0300 456 3565 for the Business support helpline (England only)
Further comments on key areas that will affect businesses are as follows:
- EU countries will require passports have an expiry date of at least six months after the date of entry
- European Health Insurance Cards may not be valid after Brexit, hence appropriate health insurance will need to be considered
- Visas will be required for long stays and for work or study visits
- International Driving Permits will be required to drive in most countries in the EU - https://www.postoffice.co.uk/identity/international-driving-permit
- if a UK car is taken to the EU, a green card for insurance and a GB sticker on the back will be required
- Mobile phone companies may introduce charges on data roaming
- Businesses shipping goods to the EU should confirm with their haulage providers that they meet the post-Brexit requirements and hold the relevant Professional Competence qualifications.
Imports and exports
- Ireland and Northern Ireland – Due to the commitment to having no hard border from the UK Government, there will be a temporary unilateral approach to checks and tariffs, meaning there will be no new checks on goods moving between these countries.
- Temporary tariff regime - The UK is introducing a temporary tariff for customs rates. The rates for UK imported goods can be found at https://www.gov.uk/guidance/check-temporary-rates-of-customs-duty-on-imports-after-eu-exit. The tariff for goods imported into the EU can be found at https://madb.europa.eu/madb/euTariffs.htm
- EORI number – You will need a GB EORI number to import or export goods with the EU and be able to submit customs declarations - https://www.gov.uk/eori. You will also need an EU EORI number if you are responsible for making import declarations in an EU country, for example if you are shipping goods to a French branch of your business
- Transitional Simplified Procedures – This is a HMRC program introduced for a limited period of time, to make importing from the EU easier. This will allow you to delay submitting a full declaration & paying duty rather than goods being held in customs until you’ve made a full import declaration and paid customs duty in full - https://www.gov.uk/guidance/transitional-simplified-procedures
- Common Transit Convention – Under this scheme, goods are not required to be declared at each border crossing, and duty is only paid once the goods reach their destination. This covers the EU member states, Iceland, Norway, Liechtenstein, Switzerland, Turkey, Macedonia and Serbia - https://www.gov.uk/guidance/what-you-need-to-move-goods-between-or-through-common-transit-countries-including-the-eu
- It may be necessary to transfer the certificate of conformity from the UK to an EU conformity assessment body. The UKCA is the new UK product marking for goods sold in the UK - https://www.gov.uk/guidance/prepare-to-use-the-ukca-mark-after-brexit.
VAT & Duty
- Duty and VAT may be payable on imported goods, it would be advisable to set up a duty deferment account to assist cashflow in paying for these, however 82% of exports from the EU will continue to be tariff free.
- It will be necessary to complete customs declarations, rather than declaring the sale and purchase of goods on EC sales lists. If you are planning to do this yourself (rather than use a freight forwarder or broker), you will need to purchase software that can submit declarations via HMRC’s National Export System (NES) and register for the relevant declaration service (CHIEF/ CDS) - https://www.gov.uk/guidance/customs-declarations-for-goods-brought-into-the-eu
- Grants are available for businesses wanting to handle customs declarations themselves - https://www.gov.uk/guidance/grants-for-businesses-that-complete-customs-declarations
- Businesses importing goods to the UK will be able to account for import VAT on their VAT return, rather than paying import VAT on or soon after the time that the goods arrive at the UK border – for imports from the EU and non-EU countries
- Current relief for low value imports sent as a parcel will no longer apply, VAT will be due on all parcels entering the UK
Further useful links
- Get your business ready to export
- Get your business ready to import
- Transitional simplified procedures (TSP)
- Getting help from third parties
- Deciding which customs procedures to use
- Common Transit Convention (CTC)
- National Export System (NES)
- Grants for businesses that complete customs declarations
- Preparing for Brexit
- Help and support for traders when the UK leaves the EU
- Prepare your business for Brexit (useful tool)
- HMRC Customer Forum
- EORI mythbuster
If you have any questions regarding preparations for Brexit please get in touch with us on 024 7667 3160 or email email@example.com.