Brexit No Deal Situation – Import and Export

Posted 12/08/2019

There remains uncertainty on how events will play out up to the 31st October. With the UK Government determined that the UK will leave the EU on this day and with no deal secured, there is a chance that the UK will be in a Hard Brexit situation. HMRC has been preparing itself and other businesses ready with speculative information to leave the EU in both scenarios.

The importing and exporting of goods between the UK and the EU will clearly be affected, no matter what the outcome, and it is likely that this will be treated as the UK currently treats goods exchanges between itself and non-EU countries. If the UK leaves with no deal in place then sellers outside the UK will be due to pay import tax on parcels worth £135 or less after the 31st October 2019.Additionally, a UK business importing EU goods may have to deal with foreign courts on items purchased from EU and be charged for credit/debit card payments, which may take longer to be processed.
Import steps:
1. Register for an EORI number if the business does not have one and has not traded with countries outside the EU. EORI numbers for UK businesses start with ‘GB’.
2. Check if the exporter being used can make customs declaration for the business’ goods. If not, the business can either hire an agent or do it themselves; they must register for National Export System if they want to do the declaration themselves.
3. Decide what custom procedures to apply for to make exporting easier.
4. Check what the customers will have to pay in the countries the goods are exported to.
5. Depending on the types of the goods, there may be additional things to do, such as changing labels or applying for licenses. The most likely ones with special rules are:
a. Animals, plants and agriculture
b. Medical devices and agricultural machinery
c. Chemicals, drugs, oil and gas and waste
d. Diamonds, arts, luxury goods
e. Military goods, services, technology
f. High tech goods & services
g. Financial sanctions

If a business is making exports to the EU by road, the following steps should be taken:
1. Apply for vehicle operator license and/or permits for other countries (both to and through), as required.
2. Make sure the driver is eligible for outside UK driving. Two forms to prove this are the CPC (Certificate of Professional Competence) and IDP (International Driving Permit).
3. Check the rules for the following goods carried:
a. Live animals and animals products
b. Dangerous goods
c. Perishable food
4. Check what documents the driver needs to carry and include:
a. Vehicle documents
b. Vehicle security checklist and instructions
c. Other documents; tachograph reports, insurance documents etc
d. Trailer registration, if necessary
5. Check the local road rules on AA website, and seek travel advice on outside EU countries.

Tags: brexit, VAT, import goods, export goods, import, export