Ready for Brexit? As we move toward preparations for the end of the year, here at Wallis, the team are focussed on making the transition as smooth as possible, ensuring we take care of the necessary requirements and processes on your behalf.
Wallis are ready for the imminent changes in import & export customs procedures. We have created this article so that you are not overwhelmed with information but have clear action points and frequently asked questions that you can tick off so your business will be ready to export/import from the 1st January 2021. There are also a handful of very useful links that we have inserted throughout the article should you wish to read further!
A brief summary on the impacts of Brexit on importing and exporting to the EU
The UK and EU are negotiating a free trade deal. The free trade deal is only concerned with amounts of duty and origin rules for duty. Whatever happens customs entries will need to be arranged for both imports and exports.
However, more recently, both parties have reported a stalemate in these negotiations which is likely to lead to a no-deal scenario. This would mean an increase in customs procedures, compliance, regulatory measures & an introduction on tariffs for imports and exports into the EU.
Alok Sharma (Secretary of State for Business, Energy & Industrial Strategy) and here at Wallis, we urge you to take action now to ensure your business operations are not interrupted after the transition period ends and the new export and import processes and formalities go live.
From the New Year, customs declarations will need to be made when you import goods from the EU and exporting too. It is expected that the UK alone will be submitting over 100 million customs declarations annually, so it is imperative that the customs paperwork is completed to prevent any delays at the borders or delays on your goods arrival.
Check that you have the correct tariff / commodity codes for your goods.
For Exports: https://madb.europa.eu/madb/euTariffs.htm
For Imports: https://www.trade-tariff.service.gov.uk/sections
Incoterms 2020© determine obligations for GB exporters and EU importers. Check the incoterms with your customer and supplier and agree on who is responsible for providing which services including customs clearance. The Incoterms will determine your responsibilities as an exporter/importer and will help calculate your costs as a business. For example, if your incoterms as a GB exporter require you to complete customs formalities at the EU border, you will also need an EU EORI Number as well as a GB EORI Number.
- Check that you have the correct tariff / commodity codes for your goods.
- Check what the EU tariffs are for your products in the event of a no deal.
- Check if an export/import licence is required for your goods.
- Subscribe to HMRC reports that detail all entries recorded under your EORI number. https://www.gov.uk/guidance/mss-supporting-guidance
- Link to the new detailed Border Operating Model
How to Export?
Most goods exported to the EU will require a commercial invoice and an Export customs declaration however additional documents like an Export Health Certificate (EHC) or Certificate of Origin may also be necessary. As part of the Customs entry a safety and security declaration will be required
- Goods subject to Sanitary and Phytosanitary Controls will have higher requirements and need an Export Health Certificate (EHC).
- Export licenses will be required for all goods exported to EU that may be designated as dual use.
If you are exporting excise or controlled goods, you will need an export license.
- Duty and VAT is liable on arrival in EU. Check if you need to register for an EU EORI number. See gov.uk/eori for details on how to apply
Transit through EU states to final destination will require additional ( Transit ) documentation.
How to Import?
UK importers are responsible for declarations, any import tariffs and VAT unless goods are sold on DDP Incoterms.
Import tariffs may be payable if there is no trade deal between the UK and EU.
For further information, see the link below.
Will I need to pay VAT & Duty on imports from the EU after the transition period?
Yes, imports from the EU will be subject to customs clearance and possibly VAT and duty. Check the UK Trade Tariff that will apply to all imports from 1st January 2021 via the link: https://www.gov.uk/check-duties-customs-exporting
How do I complete a customs declaration?
Contact our team at Wallis HQ and we will be able to make the import and export declarations for you, with in house staff arranging all customs clearances for your movements in and outside the EU.
What is the UK Global Tariff?
The UK Global Tariff has been published and will be used for all customs entries for imports into the UK moving forward from 1st January 2021, so you can check on the gov.uk website. There are also exceptions / reliefs to import tariffs which you may want to take advantage of. https://www.trade-tariff.service.gov.uk/sections
Changes to Wood Packaging after Brexit
After the 31st December 2020, there will be a significant change in how the movements of wood packaging materials including pallets and crates. All materials must conform to the International Standard of Phytosanitary Measures No. 15 (ISPM 15) and carry the appropriate IPPC mark from 1st January 2021 to transport any wood packaging to and from the UK to EU/EU to UK. Failure to do so will incur checks and enforcement measures at destination.
Is it necessary to insure our cargo?
We will always recommend that you have marine cargo insurance. Wallis can provide you with this cover if you do not have your own policy.
If you have any queries or further questions that haven’t been answered, please get in touch with our logistics team on +44 (0)1206 751133 or firstname.lastname@example.org