Is Your Business Brexit Ready?
The UK left the European Union on 31 January 2020 and the Brexit transition period ended at 11pm on 31 December 2020. The UK and the EU have signed a new trade agreement, however, import and export customs declarations along with safety & security filing are required for trading with the EU and moving goods between Great Britain and Northern Ireland.
The end of the Brexit Transition period brings significant changes for logistics and supply chain operations, with customs formalities required on all goods moving between the UK and EU, and GB and NI. Over 150,000 businesses in the UK trade with the EU and many will need to submit customs declarations and security filings for the first time. Sign-up to Descartes’ e-Customs software in our Online Shop to manage your customs declarations for Brexit.
The Overall Impact of Brexit
Brexit impacts all businesses trading with the EU and moving goods between GB and NI and will require over 200 million additional customs declarations per annum. Expertise is in short supply and customs agency capacity does not exist today to deal with the expected increased volume of customs declarations for Brexit.
Put simply, if you trade goods with the EU, those goods will need to have import or export customs declarations covering their movement in/out of the UK. In addition, if you trade between GB and NI then goods moved into NI will require a Movement declaration. Regardless of the Free Trade Agreement between the UK and the EU the requirement for customs declarations on goods moving between the UK and EU remains. You need to use a commodity code (also known as a tariff code) to classify your goods when you complete import or export declarations.
As well as customs declarations for goods, the end of the transition period also brought in the need for safety and security fillings for their movements.
Sign-up to Descartes’ e-Customs software in our Online Shop to manage your customs declarations for Brexit.
The Unique Implications of Brexit
Changes caused by Brexit will impact a number of processes, but the most widely impacting change is the need for:
• Import customs declarations
• Export customs declarations
• Safety and security filings
• Good Vehicle Movement Service reporting at certain UK ports
• For all goods traded between the UK and the EU and goods moved between GB and NI
Much talked about in the media in the run-up to Brexit has been the possibility of delays that may occur for vehicles arriving at UK ports from the EU. Planning for these delays is a key aspect of any Brexit Transition plan and there are mechanisms available today that can help to greatly reduce or eliminate these delays, see External Temporary Storage Facility (ETSF). Other significant areas impacted include:
• Movement of goods under transit
• Postponed accounting of VAT
• Use of GVMS at certain UK ports
• Movement of excise goods
• Mandatory or recommended pre-arrival import customs declarations
• Authorised consignee/consignor status to ease movement through RoRo ports
• No low value consignment relief on VAT into the UK for e-commerce
• Duty rates on UK goods into EU and changes to rates on goods into the UK, including origin rules for goods to quality for EU-UK Free Trade Agreement rates
No matter how large or small your business, anyone trading with the EU from the UK or moving goods between GB and NI will be affected by Brexit. This includes:
• eCommerce retailers
• Freight Forwarders
• Logistics Service Providers
• Food & Agriculture
Brexit Timeline & Milestones
The UK left the European Union on 31 January 2020 and the Brexit Transition Period ended at 11pm on 31 December 2020.
The UK Government implemented a phased approach to the UK’s exit from the EU, including the possibility to defer import declarations for qualifying goods from the EU for up to 6 months and delaying the need for security filings and easing Sanitary and Phytosanitary (SPS) checks.
1 October 2021
EXS declarations will be required for goods which were covered by a temporary waiver for goods in RoRo vehicles, and for empty vehicles, containers and pallets moving under a transport contract from Great Britain to the EU.
30 October 2021
All Import declarations from Rest of the World into Northern Ireland must use CDS as is currently the case for movements from Great Britain.
30 November 2021
It will no longer be possible to use the legacy NCTS XML route which is being replaced by a new API.
1 January 2022
UK Importers will no longer be able to delay submitting full customs declarations and the payment of duties when importing non-controlled goods from the EU. Declarations and payment will be due at the point of import.
1 January 2022
GVMS must be used for imports and exports between the UK and EU at certain UK ports not using the Temporary Storage model.
1 January 2022
Pre-notification of Sanitary and Phytosanitary (SPS) goods, which were due to be introduced on 1 October 2021, will now be introduced.
1 July 2022
Safety and security declarations have not been required for goods moving into Great Britain from the EU, however, from 1 July 2022, safety and security requirements on these movements will apply (delayed from January 2022).
1 July 2022
The new requirements for Export Health Certificates, which were due to be introduced on 1 October 2021, will now be introduced as well as Phytosanitary Certificates and physical checks on SPS goods at Border Control Posts which were due to be introduced on 1 January 2022.
30 September 2022
Import declarations via CHIEF cease.
31 March 2023
Exports via CHIEF and NES cease and migrate to CDS system.