From 1st January 2021 goods shipping between the UK and Ireland will be subject to customs control and therefore customs clearance. Every item that you are shipping will now need to be declared accurately and will be subject to duty and VAT. Exporters will also be required to complete an export declaration with the EU customer completing an import declaration before they can use the goods in their home market. Importers of goods into the UK will also be required to complete import customs clearance on goods entering. All this means that our customers as an exporter or importer of goods will be required to retain all the goods they have moved for six years.
The three stages of Brexit
Stage 1 – 1st January 2021
On the 1st of January, all movements of goods will be subject to export and import customs formalities. For UK importers this means they will be able to defer payment of duty and VAT for up to six months. All UK goods moving into the EU will also be subject to VAT at the national rate of the country where the declaration is lodged.
Stage 2 – 1st April 2021
In the second stage of Brexit which will take place on 1st April 2021 additional requirements will be placed on goods subject to sanitary and phytosanitary controls. These goods include animal products, fish and fishery products, high-risk food and feed not of animal origin and plant and plant products.
Stage 3 – 1st July 2021
The third stage of Brexit will be rolled out on the 1st July 2021 and will make all movements subject to full import declarations as well as making them liable to VAT and duty at the point of the importation. Declarations of goods will include safety and security declarations and movements will be subject to increased border checks by border officials.
To find out more about what is changing for importers and exporters with the arrival of Brexit click here.
How you can prepare for Brexit
Up until this point, it has been difficult to be sure how you can properly prepare for Brexit, however, now that we have a greater understanding of what is changing there are a few things you can do to help prepare.
- Make sure you have a valid GB EORI Number – you can apply for this via http://www.gov.uk/eori.
- Apply for a duty deferment account to relieve the pressure on cash flow. You will get a Deferment Account Number. Applying for a Duty Deferment Account will enable your business to account for your VAT and Duty in 1 monthly payment. You can defer payment of VAT and Duty for up to 30 days.
- Once applied for you can issue us with a Standing Authority to use your DAN when processing import declarations on your goods.
- Ensure you are able to send a copy of your commercial invoice and packing list at the time of booking your collection. And also ensure they travel with goods.
- Get export licences for any of your commodities that require one – check here https://www.gov.uk/starting-to-export/licences
To find out more on how to prepare for Brexit, how you can work with your customers to prepare and what you will be asked for, click here.
How we can help
At Graylaw International we are here to help your Brexit transition run smoothly and can make all the necessary declarations on your behalf.
We will provide access to our customer portal to record the customs information for each consignment. This will record information about the nature and the value of goods being exported. This system will then submit your customs data to UK and IE customs and produce the required documentation. You will be able to log back into the system and check your goods have been cleared for shipment and manage your own bookings. Or alternatively, we will do this for you.
We will check all the relevant information and endeavour to spot any issues but remember you are responsible for the information you provide. Instead, can you put our software is unique in that not only does it clear the goods for movement it also clears the trailer for shipment keeping the two clearances together and on the same system and preventing any confusion or delays. It is also able to do both the export and import clearance into the arriving country should you need it.
To find out more ways that we can help your business prepare for these changes click here and if you have any other questions about the new Brexit changes call us on 01695 729 101.
