Now that the transition period has ended, the UK has left the customs union. Great Britain (GB) companies trading with the European Union (EU), including the Republic of Ireland, and EU-based companies trading with GB are impacted. Ensure you comply with the new border and customs controls to minimise the impact on your supply chain.
How have tariffs and border regulations changed? All EU-GB trade require new import and export declarations, plus safety and security filings. And, the new UK global tariffs may change duty rates and HS codes.
New processes will continue to present challenges at the border as many companies become attuned to them. Potential inspections and presentation of certain types of goods at the border both from and to the UK will also have a knock on affect to the transit times companies are accustomed to.
Check if you are established in the EU or UK. As of January 1, 2021 any UK entity used to import or export to and from the EU is no longer considered an EU establishment, creating new potential complexities for you and your customs broker.
What are the best Incoterms for 2021 and beyond? A clear understanding of what’s in your sales contract will determine your post-brexit responsibilities. An update to terms may be needed to reflect the new customs clearance environment.
What paperwork do the new borders bring? Customs transit is still available to move goods between EU and GB. But companies should appoint a broker to support the required extra administration, such as the Goods vehicle movement system and SMART freight portal.
How have taxes changed? VAT accounting has shifted dramatically due to the introduction of postponement of VAT payment at point of entry. GB VAT registered companies that used to pay import VAT at the frontier are now able to postpone that payment until their digital VAT return, adding major cash-flow advantages.
New customs declarations are just one dimension of this political and economic shift. Use this timeline to help shape your response to every aspect of the new reality.
Brexit touches borders, trade lanes, and more. Working with Flexport gives you visibility and control over your supply chain across every mode.
Note: This content is provided for informational purposes only based upon the information available to us at the time. We do accept any liability or responsibility for reliance on the above. To receive guidance applicable to your situation, please speak to our experts directly.
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