Brexit and customs implications

The UK will be leaving the customs union on 31st December 2020.

What happens next is dependant on whether or not we can secure a trades deal with the EU.

Outcome 1:

            We secure a free-trade agreement and carry on a tariff free relationship with the EU.

Outcome 2:

Customs declarations

•  From 1st January 2021 members of the EEA (European Economic Area) will need to make customs declarations whenever goods enter or leave the UK. 
  
• The simplest way to do this is by using an intermediary (custom agent, freight forwarder etc)
• Otherwise, a declaration can be made online via the CHIEF system (Customs Handling of Import and Export Freight)

Duty Deferment

• A duty deferment account allows business to make a payment for tax and duties once a month rather than on every individual consignment

EORI Number

• An Economic Operators Registration and Identification number will be required for businesses that move goods between the UK and EU.
  
• There are increased costs for someone without an EORI number- eg storage
• EORI not needed for service only businesses
• EORI number takes 10 minutes to apply for and takes a week to come through

As a response to COVID-19 the UK government have decided to put back full border checks for EU consignments coming in to the UK. This is delayed until 1st July 2021.

For further information please click here