Brexit. Changes to customs duty.
A UK Global Tariff will be introduced on 1 January 2021
At the end of the transition period the UK will leave the EU Customs Union. The UK will operate a full border with the EU with effect from 1 January 2021.
The new border controls on imports from the EU to Great Britain will be introduced in stages. The customs declarations for those goods which are not controlled will delayed until 30 June 2021.
The Introduction of the UK Global Tariff.
The UK Global Tariff will come into effect from 1 January 2021. This lists the new rates of Customs Duty applied to imports. The tariffs applicable to different categories of imported goods, are available here https://www.gov.uk/guidance/uk-tariffs-from-1-january-2021.
Businesses that import good from the EU need to be prepared for these changes. Here is an overview checklist of steps you can take now if you are affected:
- Obtain an Economic Operator Registration and Identification (EORI) number which will be required if you trade with the EU. https://www.gov.uk/eori.
- Consider appointing an agent freight forwarder to help you with make customs declarations. For more information on the services agents can provide: https://www.gov.uk/guidance/appoint-someone-to-deal-with-customs-on-your-behalf
- If you import goods from the EU, check whether those goods are ‘controlled’. There are certain declarations required for various categories of imports. To find our more: https://www.gov.uk/guidance/list-of-goods-imported-into-great-britain-from-the-eu-that-are-controlled.
- Read the UK Global tariff to check the rate of Customs Duty that is likely to apply to the category of goods you import.
- You will need to decide if you are going to use the Postponed Accounting system (https://www.gov.uk/guidance/check-when-you-can-account-for-import-vat-on-your-vat-return). This allows businesses to defer import VAT and gives you time to learn the new procedure of how to declare of the deferred import VAT on your VAT return.
Our specialist Brexit Advisory Team is working with businesses to help them continue to trade with the EU. If you require advice please contact us.