The Brexit extension removes the immediate danger of a no-Deal exit but…..
if a more right leaning/hard Brexit majority were to emerge from the general elections, particularly a coalition between the Conservative & Brexit party, the possibility is much greater, which is why prudent shippers will ensure that their Brexit contingency planning is in place, to safeguard their import and export supply chains.
The UK will not be leaving the EU on Thursday, as European leaders agree in principle to extend Brexit until 31 January 2020, although this could be earlier if a deal was approved by Parliament.
Theoretically nothing will change until 31st January 2020, earlier if a deal is ratified and a Withdrawal Agreement gets approved by both parliament and the EU, when the UK will enter a transition period until at least December 2020, during which time trade will continue as normal.
However, it is almost certain an election will see the Brexit Party rise in popularity, taking seats away from the Tories and labour, which could result in a coalition between Conservative and Brexit parties – a far more right leaning/hard Brexit majority – which would significantly increase the likelihood of a No-Deal Brexit before the new 31st January 2020 deadline.
Against this background of uncertainty, we would encourage customers to continue with contingency planning for their imports and exports.
1. If you didn’t already hold one and you trade with the EU, you should have had an EORI allocated by HMRC. Click HERE to validate your EORI number (NOTE: You should prefix your nine digit VAT number with ‘GB’ and suffix with ‘000’).
2. If you trade with the EU you should also have received HMRC notification of enrolment in Transitional Simplified Procedures (TSP), which has been designed to streamline UK imports, to avoid delays at Ro/Ro ports. You will need a Customs Deferment Account to pay any import duty and HMRC will expect you to maintain records of your imports. You will need to submit a TSP return by the 4th working day of the following month, with the first declaration suspended for six months.
3. For smaller volume shippers, with an EORI number, it will probably be easier to make standard customs declarations, using our deferment facility, if required.
4. The post-Brexit tariff has 87% of products zero-rated (at least for 12 months). It is critical that you correctly identify your commodity codes and cross-reference these to your products, to get the applicable duty rate. Speak to us if you are uncertain, because if you get it wrong, you may pay too much, or face the possibility of penalties.
1. If you didn’t already hold one and you trade with the EU, you should have had an EORI allocated by HMRC.
2. Exports from UK to EU must be on ISPM15 heat treated pallets, bearing the IPPC stamp. Currently pallets from EU to UK do NOT need to be heat treated but if EU insist on ISPM15 then the UK have threatened do the same, in order to create an inventory pool in the UK. Contact us now if you require a supply of ISPM15 pallets.
3 If you are exporting on a DDP basis you may need VAT and EORI registration in the destination country. NI to ROI for example, on DDP, you will need VAT and EORI in ROI. Your customer will need to arrange an import in his country, unless you are selling on DDP terms in which case you have to arrange everything.
4. We can raise the export declaration for you, which is necessary for generating Permission to Progress (P2P) and issuance of a Movement Reference number (MRN) to board the exporting carrier.