The UK is currently in the Transition Period exiting the EU, which is due to end on 31st December 2020. This means that starting from 1st January 2021 the UK will formally exit the EU and the EU legislation will no longer be in force unless the UK Government had opted to adopt such legislation; this includes free movement of goods between EU countries.

How to import goods after 31st December 2020

On 13th July 2020, the HMRC has published a Guidance on ‘How to import goods from the EU into GB from January 2021’ which is on the government website.

The guidance sets out the options that are available to traders which include, but are not limited to, customs declarations, standard import procedures, simplified declarations procedure and transit if multiple territories are involved in the import.

There are a few steps to be followed before importing goods from outside the UK, including, but not limited to:

  1. Check what guidance you should follow – this will be applicable if you are importing goods from the EU from 1st January 2021 for selling, processing or using the goods within your business. If you are receiving the goods by post or importing them from countries outside the EU the rules may differ.
  2. Find out how to declare goods from 1st January 2021 and register your business for import.
    • If you are importing the goods and any transporter or customs agent is acting on your behalf, you will both require an EORI number (your number needs to start with GB).
      How do you apply for an EORI number? You can apply for an EORI number on the government website.

     

    • If you decide to use the Customs Handling of Import and Export Freight (CHIEF) system to make a customs declaration, you will require both access to CHIEF and a commercial software that can submit declarations through CHIEF. You can apply for access to CHIEF on the government website.

     

    • Alternatively, if you import goods regularly, you can apply for simplified declarations procedures and for Authorised Economic Operator status. Further information about eligibility and how to use such procedures can be found on the government website.
  3. Set up a duty deferment account if you import regularly – this will allow you to make one payment of customs duties a month instead of paying for individual shipments. Please note that if you use simplified procedures you must set up such an account to defer duty payments when you import goods and this can be done on the government website.
  4. Check the new rules for your type of goods including licences or certificates you may need, labelling and marketing standards for food, plant seeds and manufactured goods, alcohol, tobacco and certain oils. Please kindly note that if you are importing plant or animal products, high-risk food or feed, medicines, textiles, chemicals or firearms you may be subject to different rules, including inspections of goods requirements, and we strongly recommend you seek further advice.
  5. Submit the import declaration.
  6. Check the rate of tax and duty you will need to pay – i.e. customs duties and VAT on imports. HMRC will usually tell you how much you need to pay after you submit your declaration.
  7. Check if you can make the importing process quicker- in certain situations, you may be able to delay making a declaration for up to 6 months after you imported the goods.

Further information and guidance regarding the general steps to be followed to import goods can be found on the government website.

How to export goods after 31st December 2020

The HMRC has also published a Guidance on ‘How to export goods from the GB into the EU from January 2021’ which is available here.

Similar to the above, the HMRC export guidance sets out the standard export procedure or transit if goods are moving through multiple territories.

If you wish to export goods from GB to the EU from and including 1st January 2021, you should consider:

  • Checking what guidance you should follow-i.e. sending goods by post or exporting to countries outside the EU may be subject to different rules.
  • Customs declarations- the rules will be the same as the ones applicable to exporting goods to the rest of the world, including Switzerland, Norway, Iceland and Liechtenstein.
  • Checking the rules for exporting different types of goods including what licences and certificates you may need, labelling and marketing standards for food, plant seeds and manufactured goods, alcohol, tobacco and certain oils.
  • Whether your business has an EORI number starting with GB or registered CHIEF to make custom declarations. This is similar to the import requirement and further information can be found above.
  • VAT – you may be able to charge customers VAT at 0% (known as ‘zero rate’) on most goods you export to the EU. Further information can be found here on the government website.

Further information and guidance regarding the general steps to be followed to export goods can be found here.

The Corporate and Commercial team here at Fisher Jones Greenwood LLP can advise you in relation to the steps you may need to take to prepare your business for the post-Brexit era; as well as assist you with the preparation of any documentation that may be required in relation thereto. Should you require any information or assistance do not hesitate to get in touch. Please call 01206 700113 or email [email protected].