WE STRONGLY ENCOURAGE YOU TO HAVE A LOOK THROUGH OUR BREXIT CHECKLIST:
WHAT ELSE YOU CAN DO TO PREPARE:
- Consider an application for a Deferment account: This can improve your cash-flow and reduce your financial liability when your goods enter the UK by establishing a credit facility against which import Duty and VAT is accounted for. For further information please click here.
- AEO: AEO will grow in significance post-Brexit. Companies who have not considered AEO accreditation should consider the services of an AEO accredited logistics provider (such as Rhenus Logistics) to mitigate the impact of cross-frontier delays. For further information please click here.
- Determine the Tariff classification of your goods: This will be required to complete declarations and enable you to determine if duties are payable or suspended/waived. For advice on tariff classification go to the Gov.UK website here.
- Determine the value of goods: Also required for declarations, the value of goods is necessary for trade statistics and calculation of VAT/Duty. There are 6 methods of valuation, which should be consecutively applied, beginning with method 1, until the correct valuation is reached. For further information please click here.
- Determine the origin of goods: This will help establish whether your goods will qualify for duty preference/waiver and will form part of any declaration process. For further information please click here.
- Terms of sale: Be clear about your liabilities and responsibility with regard to Incoterms. In the event of a no deal, any FTA's currently applied to UK trade (presence/ATR) will no longer exist with duty payable. Discuss the implications and ensure clarity as to responsibility for payment. For further information please click here.
- VAT changes after Brexit: HMRC has stated that for most UK businesses there will be no change to current VAT rules with UK businesses being able to account for import VAT on their VAT return rather than paying it on arrival at the UK Ro-Ro port. You can find the full government report on VAT changes here.
Although the situation with Brexit remains unclear, by taking these steps you will be in a stronger position to deal with Brexit in whichever form it takes. The Government has published a comprehensive guide to advise companies on exporting and importing if there is a no deal Brexit.
By providing Rhenus with direct customs clearance authorisation so that Rhenus can complete all Import and/or Export declarations on your behalf. This will be a necessary requirement for ALL Import and/or Export shipments in a no-deal Brexit.
WILL THE UK BE ABLE TO ENTER BI-LATERAL AGREEMENTS WITH EU MEMBER STATES POST BREXIT?
The EU will always argue that the best way for a member of the EU27 to ensure that it achieves the best possible trade deal is as part of a wider UK-EU trade deal. Additionally, an EU member state is not permitted to negotiate a bilateral trade deal with a 3rd country as part of its membership commitment to the EU. However, as indicated earlier, the UK may be allowed to negotiate "mini deals" with Ireland, Malta, Spain etc.
ARE THERE LIKELY TO BE LONG QUEUES OF TRUCKS IN DOVER AND CALAIS?
It is the government's firm intention that delays to freight are kept to a minimum. The introduction of easements for traders, carriers and ro-ro operators are designed to ensure minimal disruption, however, at this time we are unable to legislate for any fiscal procedures which may be implemented in Calais/other EU ports of entry.
WHAT WILL HAPPEN TO VAT?
The government aims to keep VAT procedures the same as possible, with postponed accounting from EU & non-EU to be introduced. However, VAT registration is required on declarations to get postponed VAT. This statement can be used as evidence on your VAT return.
WILL I PAY DUTY FROM DAY ONE?
No, the government has announced its intention to maintain the current EU FTA, stating the importance to businesses and investors. However, it is expected that the EU shall apply MFN rates to UK goods as set out in the Common Customs Tariff (CCT).