QLC - A BREXIT Overview

BREXIT – “What’s the deal and what does it mean for you?”

So, the post BREXIT Trade Deal and future cooperation agreement between the EU and UK is in place. Whilst seemingly rushed with time running out to reach an agreement it would seem both parties pushed to get the deal over the line with just a few days to spare.

So, what do we have? QLC has been researching various the various Government sites / pages to consolidate an overview as we see it. This is an ever-evolving subject and we therefore recommend regularly checking the various links we provide and shown below for the latest changes / amendments.

We currently see the main areas we all in the Logistics environment and associated industries need to be aware as the following main topics.

A New Global Customs Tariff

Interesting enough, the UK’s tariff uses the same commodity codes as the tariff published by the EU, with some differences being applied by way of ‘some’ lower import duty rates. The new tariff applies to both EU and non-EU goods. The codes can be viewed via the following link shown below:

https://www.gov.uk/trade-tariff

New Customs Declarations

New style Customs Declarations are now required for freight moving both to and from the EU. As has been seen on the media this is resulting in some Supply Chain disruptions with more time needed to get the declarations in place. Declarations should indeed be in place prior to any movement of goods.

Vehicles / drivers will have to prove that freight is covered by the new customs processes prior to arriving at the port or terminal / point of departure.

Not having the correct documentation and evidence that the declaration process has been followed will result in vehicles / cargo being turned away. Further, in the case of UK exports, failure to comply may also result in financial penalties / fines. Refer to the Governments “BREXIT Checker” for more details, see link below:

Brexit - GOV.UK (www.gov.uk)

 EU Imports – Origin of Goods

Part of the BREXIT agreement is that we now have a ‘free trade’ deal with the EU. However, it is important to note that this only applies to goods which have an EU origin status. This is important and should be closely checked.

The Government has published and regularly updates information regarding origin rules and requirements relating to the above. Please note, a supplier’s declaration will be required to evidence the origin of goods.

https://www.gov.uk/guidance/claiming-preferential-rates-of-duty-between-the-uk-and-eu

Movement between the UK and Northern Ireland

Outgoing movements from mainland Britain to Northern Ireland are required to be declared to HMRC. This declaration is made via an import declaration for Northern Ireland and not an export declaration from the mainland. Freight imported directly into Northern Ireland from outside the EU and UK is subject to the normal declaration processes.

However, it should be noted for freight moving from Northern Ireland to mainland Britain there is no customs declaration required. The exception refers to freight under customs control / inward processing and other such schemes.

More details / clarifications can be found via the link below:

https://www.gov.uk/government/publications/customs-declaration-completion-requirements-for-the-northern-ireland-protocol

The “Free Trade Deals”

The UK Government has also negotiated and put in place UK trade deals in lieu of the end of customs rules made via the EU. These apply to Non-EU countries.

The “deals” are shown and updated via the Government link shown below

https://www.gov.uk/guidance/uk-trade-agreements-with-non-eu-countries

Postponed VAT Accounting (PVA)

Import VAT applicable on all imports, including from the European Union member states, can be postponed, by being included on your VAT returns. However, you must advise your appointed Clearing Agent that you intend to do this via PVA otherwise the duties due will be become due immediately or via your deferment arrangement.

Importers choosing to use PVA must also register to the Customs Declaration Service (CDS) to receive online VAT statements. Registration can be done via the link below. Please note that the VAT statements will only be accessed and available online for six months from the time of entry.

https://www.gov.uk/guidance/get-access-to-the-customs-declaration-service?utm_source=8b9904ad-cfc3-4dc1-af5d-c4ae01178891&utm_medium=email&utm_campaign=govuk-notifications&utm_content=daily

Revised GSP Duty Rates / Process

The current UK GSP system will be maintained. Freight meeting with the UK GSP rules of origin requirements will be able to claim a GSP rate of import duty ‘provided’ this is with a valid proof of origin.

Goods that are in free circulation in the UK up to 12 months after 31 December 2020 will require a Registered Exporter System (REX) statement relating to origin which will be required by HMRC as proof that goods originate from a GSP country. This must however be dated 31st December 2020 or earlier.

The following Government link provides more detail as well as the REX link:

https://www.gov.uk/guidance/check-your-goods-meet-the-rules-of-origin

REX – Registered Exporter system | Taxation and Customs Union (europa.eu)

We hope this helps  

We hope that this brief overview provides some insight and information in respect of the new requirements and regulations being put in place following the UK’s now official departure from the EU. 

QLC would be happy to assist with any enquiries or help you may require.

Email: enquiries@qlclogistics.com

Website: www.qlclogistics.com

QLC – “The missing piece to your logistics puzzle”