Numerous voting of the British Parliament and the negotiations with the European Union have not prevailed yet the no-deal BREXIT. The no-deal BREXIT might be happening at the 12th of April 2019 (initially the date of exit was the 29th of March) and its consequences are significant regarding customs and tax for transfer of goods through the EU – UK border.

The fundamental change of no-deal BREXIT will be lack of harmonization between the British and Union law. Currently, under the EU law, all EU Member State countries are obliged to follow the same customs law rules, and the VAT (and partially excise duty) provisions are deeply unified.

Using the opportunity of future independence from Union laws, the British Government plans solutions on itself in the fields of border controls, customs duty and import VAT.

Examples of obligations, simplifications and facilitations related with import of goods into the UK in case of no-deal BREXIT dated on the 12th of April as the exit date;

  • UK EORI registration will be needed to submit the relevant declaration to import goods into the UK, incl. Entry Summary Declaration, temporary solutions (for the first 6 months after the exit date):
    o Entry Summary Declaration will be not obligatory for the first 6 months after the exit date;
    o EU EORI should be accepted to submit the relevant declaration to import goods into the UK .
  • The new customs procedure – Transitional Simplified Procedure, TSP:
    o most of entities established in the UK with the UK EORI number and the intention to perform international trade activities will be able to use the TSP;
    o importer under TSP:
  • submits a simplified frontier declaration before arrival of goods at the border, gives the haulier the reference number for this declaration, on arrival in the
    UK the trader updates the declaration to “arrived” before the end of the working day following the crossing, then lodge the supplementary declaration by the 4th working day of the month following the arrival of the goods to the UK;
  • Entry in the Declarant’s Records, EIDR will be also available under TSP, in this case the trader will provide the haulier with their EORI number as proof the goods are subject to a TSP process;
    o covers all kind of goods, incl. alcohol beverages and fuels, assuming that all necessary certificates and licenses for the goods are available;
    o temporary solution: during the first 6 months after the exit date the supplementary declaration will not be needed.
  • According to announcements of the HMRC, customs tariff for import from the EU to the UK will be free or lowered.
  • Most of entities established in the UK with the UK VAT registration will be able to settle import VAT in its VAT return.
  • Haulier should not be obliged to stop the truck at the border for import clearance in case of crossing the UK border via RO-RO locations, checks will be done on selected vehicles and goods based on risk assessment.
    Examples of other important rules on crossing the UK border from the EU:
  • Both TIR and transit under CTC will be in use.
  • Transit or other suspension procedure to be used in case of moving goods to Ireland though the UK.
  • Empty trucks or trucks with empty re-usable packages should not be subject to customs clearance at the border.
  • Wooden pallets and other wooden packaging will be covered by the international phytosanitary provisions (ISPM15).
    The list of the British regulations presented above is prepared based on information released by the British Government, particularly during the Brexit business engagement day 26 March organized by the British Embassy in Warsaw.
  • Simplifications and facilitations dedicated to crossing the future UK-EU border are not provided by the EU law. At the event no-deal Brexit, movement of goods from and to the UK will be considered as a regular import and export at the EU border (as to any third country outside the EU without bilateral agreements with the EU).
  • The key points to be considered from the perspective of the EU provisions at the event of no-deal BREXIT:
  •  border controls and customs clearance;
  • customs duties and import taxes, therefore the CN classification, origin of goods and customs value need to be applied;
  • customs origin of goods with UK origin materials.

Only a few days left before the expected exit date. Lack of deal at this point makes the preparation for the no-deal BREXIT one of the most urgent obligations.

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