ARE YOU READY FOR BREXIT?
We are pleased that an immediate no-deal Brexit has been averted, subject to final formalities. We now hope that the additional time will be used to come to a timely resolution that allows all businesses to move forward.
We continue to work closely with our customers, and remain fully committed to supporting their cross-border trade post Brexit.
Please speak to your Account Manager if you’d like to discuss our planning in more detail and how together we can prepare for Brexit.
What You Can Do to Get Prepared
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While Brexit negotiations between the UK and the EU continue, a worst case scenario for businesses is a no deal Brexit. This would result in the UK becoming a third country with respect to its trade with the EU. Such countries have no trade agreement with the EU and their merchandise trade becomes subject to customs procedures and to a tariff schedule defined under the World Trade Organization (WTO).
Also, the EU VAT scheme will no longer be valid after a no deal Brexit. This means that VAT has to be paid in the UK when exporting from the EU. VAT will be levied together with any customs duties and a customs clearance process will be necessary also if only VAT is due.
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In case of a no deal Brexit, companies exporting from the EU to the UK (and vice versa), will need to have an EORI number (Economic Operators' Registration and Identification number). You currently only need an EORI number when trading with countries outside the EU, as its required to release goods from Customs. Post-Brexit you will need this to trade with the UK too. In addition, UK-issued EORI numbers will not be accepted by EU countries post-Brexit, so you will need to register for EU issued EORI number if you want to seamlessly continue trading between the EU and UK. If you currently have an EORI number issued by a different EU Member State than UK, you’ll need to obtain a UK EORI number for post-Brexit UK imports and exports.
You can get UK EORI number via www.gov.uk/eoriUK EORI number. You will get your EORI number by email, usually within 3 working days.
You can register for EU EORI number hereEU EORI Number.
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If you are importing into the UK, it is advised to confirm VAT number and open a deferment account to make use of postponed VAT accounting and defer payment of duties. Further details on VAT system rules and processes in a no deal Brexit can be found hereVAT system rules for no deal Brexit.
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It is also very important to keep abreast of regulations applicable for your business. For example, the UK government introduced TSP (Transitional Simplified Procedures) to facilitate clearance which can be used at all ports in the UK including those in Northern Ireland. TSP is designed for businesses importing goods to the UK from the EU. Before applying for TSP authorization you need to ensure the ability to conform to requirements. Further information and registration for TSP can be found Simplified import procedures information and registrationhere.
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In addition, your business needs to be clear about some key documents needed when trading internationally (e.g. commercial invoice), and some of the data you need to complete customs declarations (e.g. value of the goods, HS codes).
You can find more support in identifying how your goods are classified via HM Revenue & CustomsHMRC advice on classifying goods
or European CommissionEU product classification system resources. -
Does Brexit impact imports into UK from non-EU countries?
The procedures and processes for imports from outside the EU27 will remain largely unchanged in the UK.
Will the EORI numbers previously issued by the UK Customs Authorities still be valid for trading with EU Member States or an EU EORI number is needed?
No. In the event of the UK leaving without a deal, UK will become and be treated as a 3rd country. Therefore UK issued EORIs, and other authorizations will no longer be valid as the UK will not be a 'competent authority'. Further details on this are available via the European CommissionEuropean Commission Brexit preparedness.
If a company has EU EORI number and wants to continue to ship to the UK, is there any requirement for a UK EORI number?
Yes, a UK EORI number (starting with GB) is needed. This means cross European traders might end up with two EORIs, one EU and one UK. Further information on how to prepare for Brexit from the UK government is available here.UK Gov Website
Does the EORI cover both importing and exporting goods?
EORI number applies for both imports and exports.
For which locations in the UK, Transitional Simplified Procedures (TSP) are applicable?
TSP can be used at all ports in the UK including those in Northern Ireland.
What if goods are imported into UK from non-European countries travelling through Europe e.g. from China?
In this case it should be considered how to clear goods. There is a possibility that the trader would be charged duty upon entry into the EU and then again when goods arrive in the UK. Shippers may wish to explore using transit to move goods under customs control through the EU.
Is a deferment account required if the trader has both UK EORI number and TSP authorization for UK imports?
If the goods attract a duty liability then TSP registration will need to be supported by a deferment account. The trader also needs to take into consideration how to treat VAT (e.g. postponed accounting).
Does a trader have to register for TSP for imports into UK?
There is no specific requirement to register for TSP.
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Preparing for Brexit
EU Preparedness Notices for BrexitEU Preparedness Notices for Brexit
National Brexit Information for EU Member StatesNational Brexit Information for EU Member States
Customs, Taxes, EORI
EU Member States National Customs InformationEU Member States National Customs Information
HM Revenue & Customs Advice for Classifying GoodsHM Revenue & Customs Advice for Classifying Goods
EU Product Classification SystemEU Product Classification System
TARIC ConsultationTARIC Consultation
Transitional Simplified Procedures
UK Government Transitional Simplified ProceduresUK Government Transitional Simplified Procedures
