The UK has left the EU Customs Union and Single Market. Effective 1 January 2021, the movement of goods is subject to export and import Customs procedures similar to movements between the EU and Canada.
It can be difficult to figure out exactly what that means to your company. Read the Q&A's below to learn more.
Will a manual for UK border procedures be available?
The British Border Operating Model has been published: gov.uk/the-border-operating-model. This model describes the main customs processes that all importers and exporters will have to complete, including some additional processes that only apply to certain products. The Border Operating Model refers to goods moving between the EU and UK, not Northern Ireland. Information for companies looking to prepare for the end of the transition period can be found at gov.uk/transition.
In the UK, a simplified declaration is possible in the first months. Is there something similar in the EU for imports from the UK?
No, The United Kingdom left the EU on January 31, 2020 and the effects will become noticeable from January 1, 2021. Then the transition period will expire. In concrete terms, this means that Great Britain (England, Scotland and Wales) will have a 3rd country, for which customs formalities are required for import and export. The UK Border Operating Model describes the major customs processes that all importers and exporters will have to complete for the UK government. See: gov.uk/the-border-operating-model.
Phasing of controls has been announced for UK imports. Which documents are necessary from 1 January 2021 and which will expire in the first stages?
Exporters can choose to submit complete customs declarations immediately. If companies choose to use the delayed declarations policy, they must meet all associated requirements. They must keep all required documents in their own records, even though they may delay filing with HMRC (Her Majesty's Revenue and Customs).
How will imports and exports to Northern Ireland be handled from January 1, 2021?
Northern Ireland is considered part of the EU (Internal Market and Customs Union). No customs formalities are required for shipments to and from Northern Ireland from the Netherlands. In concrete terms, this means that it is treated as a Member State, even with its own country code (XI). The UK government has published guidelines on goods trade with Northern Ireland (NI). The guidelines cover the movement of goods between NI and Great Britain, as well as the movement of goods from NI to the EU and the movement of goods from NI to the rest of the world. The government also announced a £ 200 million investment in a new free-to-use Trader Support Service (TSS) for companies bringing goods to NI from the UK or the rest of the world. The service provides traders with guidance and support in dealing with requirements for moving goods to NI.
In the event of a hard Brexit, will the agreements made earlier (especially those across the border in the Irish Sea) remain valid?
Yes, the Irish Sea border agreement is part of the Withdrawal Agreement. The Withdrawal Agreement is separate from the negotiations on the new future relationship.
What formalities are required for the trade of excise goods to Northern Ireland?
Northern Ireland is considered part of the EU (Internal Market and Customs Union). No customs formalities are required for shipments to and from Northern Ireland. For excise goods, an intra-EU EMCS transaction is therefore required, for other goods there are no formalities.
How does UK customs prepare for physical checks?
The British government states that the necessary government systems and infrastructure are available on time. The UK government has announced a £ 705 million funding package for border infrastructure, jobs and technology to ensure UK border systems are fully operational. The British Border Operating Model has been published: gov.uk/the-border-operating-model. This model describes the main customs processes that all importers and exporters will have to complete, including some additional processes that only apply to certain products.
How does UK customs prepare for digital declaration and controls? When will the CHIEF to CDS conversion take place?
Exporters or their representatives must submit additional declarations to CHIEF for all standard goods imported from January 2021 to July 2021. After this, import declarations must be submitted to CHIEF until the transfer to CDS is completed.
What is the status of the UK Transitional Simplified Procedures system?
Transitional Simplified Procedures was a British system designed to prepare for a potentially no-deal situation. The UK has left the EU with the Withdrawal Agreement and the TSP is now closed. Instead, the UK has announced the Border Operating Model. This model describes the main customs processes that all importers and exporters will have to complete by January 1, 2021, including some additional processes that only apply to certain products. See: gov.uk/the-border-operating-model.
Is there an overview of the application periods for the various customs permits?
Deadlines have indeed been set for the issue of permits. These will be published shortly on the Dutch Customs website. It may be that just before or after the turn of the year there is a large peak load as a result of questions from entrepreneurs. Therefore, be there on time and therefore arrange customs matters now.
Is the CDIU prepared for the influx of applications for export licenses?
Customs (including CDIU) states that it is well prepared for the extra work that is a consequence of Brexit. But it may be that just before or after the turn of the year there is a large peak load as a result of questions from entrepreneurs. So be there on time and get customs matters in order now.
Where can companies that do not trade with the UK but process or export British products to countries with a preferential trade agreement, find information about the impact of Brexit on their exports?
An update of the guidance for (Dutch) customs based on European policy will be published shortly. Concrete answers such as for origin determinations are answered there. The EU readiness notices are published on ec.europa.eu/getting-ready-end-transition-period.
Which customs formalities are necessary if you do contract work with raw materials from the customer?
The obvious choice is to use an Inward Processing permit for this.
If a company exports goods for temporary export to the UK before January 1, 2021 and these goods return after 1 year, how should these goods arrive NOW? How do I demonstrate this for reimports in 2021?
An update of the guidance for customs will be published shortly. Concrete answers, such as with reimportation, are answered there. The EU readiness notices are published on ec.europa.eu/getting-ready-end-transition-period.
How to deal with e-commerce (returns) after January 1, 2021 to and from the UK?
An update of the guidance for customs will be published shortly. Concrete answers such as how to deal with e-commerce returns are answered. The EU readiness notices are published on ec.europa.eu/getting-ready-end-transition-period.
How final are UKGT's rates as stated on gov.uk?
There are currently no plans to revise the current UKGT, the UK government indicates. If a British-European trade agreement is concluded, other rates may be agreed here. If there is no deal, WTO rates apply.
Are there still quotas on products?
Quotas are part of the negotiations that are in full swing.
What can companies still do with regard to customs regulations to mitigate the impact of a possible hard Brexit?
Start with the first three steps of evofenedex's Brexit checklist. Subsequently, making the Brexit Impact Scan can offer a solution if it appears that one or more permits are required, apply for them as soon as possible. More information can be found at: evofenedex.nl.
How can British companies best prepare for import-export to the EU as of January 1, 2021?
With regard to customs matters, these companies are also advised to start arranging the necessary obligations as soon as possible, such as applying for a British EORI number, appointing a customs agent, etc. Companies that want to make the declaration themselves in the UK, may be eligible for a simplified import declaration. This can be applied for import declarations in the period from January 1, 2021 to June 30, 2021. More information.
Which ICC Incoterms® 2020 is recommended for export to the UK? What risks are associated with the Incoterm DDP? (many UK customers request DDP terms of delivery as of 1-1-2021)
The choice of the correct ICC Incoterms® condition can vary by company. There is no standard delivery term for shipments to or from the UK after 1/1/2021. The fact that English customers often ask for DDP is probably because they themselves have no experience with customs formalities. Nevertheless, we advise companies to be cautious about this as DDP means that the seller will have to clear customs and make a local delivery in the UK. This has tax consequences in the UK, which you as a seller will have to meet. Please note: Companies that want to make the declaration themselves in the UK may qualify for a simplified import declaration. This can be applied for import declarations in the period from January 1, 2021 to June 30, 2021. More information.
If a Dutch supplier is going to deliver DDP to the UK, then the Dutch supplier needs a British EORI number, how can an EORI number be applied for in the UK?
After December 31, 2020, you will need an EORI number starting with GB to move goods to or from the UK. The EORI number can be requested in 5-10 minutes.
Do the ferry and shortsea ports in NL, BE and FR already have a code (office of exit)?
The ports can be found in the COL (list of customs offices). The COL is published (publicly) and can be found and consulted here.
What will the procedure be regarding CITES goods (endangered species of wild animal and plant) that companies may export to the UK this year without an export license, but may return to DC in the EU next year?
All import, export, re-export and introduction of species covered by the UK Wildlife Trade Regulations (UKWTR) must be authorized and the importer or intermediary must present the valid, original CITES export and import permits to border officials for approval at a designated CITES port / point. Imported goods may also need to be accompanied by an export permit, re-export certificate or certificate of origin. The EU export permit (or re-export certificate) must also be approved by a customs upon leaving the airport and then both the export and import permit are validated (ie stamped) by customs upon entry into UK. It is the responsibility of the importer to ensure that the original permit is presented to Border Force personnel at the point of entry.
For which products is a certificate from the NVWA required?
For the obligations from British governments, please visit this page.
Must a phyto certificate, cvo, etc. be drawn up in addition to the EX A document for the export of all fruit and vegetables?
View the specific Brexit page of the NVWA for the obligations with regard to the export of plants and plant products here. For the time being, DEFRA (UK NVWA) only requests an EU phyto certificate for products that require EU plant passport. However, special rules are being developed with regard to Xylella.
Are the various BIP (border inspection points), or rather border control points, in NL set up and ready to receive goods for veterinary inspections?
A GCP (formerly BIP) contains inspection points, which are run by so-called inspection point holders. These are commercial companies supervised by the NVWA. After 1 January, two extra inspection points will be realized on the north bank of the port of Rotterdam, these are Agro Merchants Westland Warehousing B.V. and van Duijn transport Coldstore B.V. There is not yet foreseen an inspection point for livestock in the Rotterdam port area.
Is there a transition period for VAT issues for goods that have been released for free circulation on behalf of English customers, based on fiscal representation, and that are still stored in the Netherlands after January 1, 2021?
From 1 January 2021, a delivery to the UK is an export delivery and, just like a (fictitious) intra-Community transaction, it is taxed at the 0% VAT rate (provided the export can be demonstrated). In addition, from that date onwards, the goods must be cleared in the UK and import duties and VAT must be paid in the UK. For more information on VAT and Brexit, see this page and download the VAT & brexit checklist.
What are the customs and VAT procedures if a company wants to keep the shipment in storage in the UK as a third country?
In the current situation, the transfer of goods to the UK often has a VAT aspect; does this concern a shipment of own goods to the UK or are the goods transferred on the basis of a consignment delivery. It is expected that this European VAT system will no longer apply to the UK in 2021. From that moment on, one will have to deal with import VAT when importing goods into the UK. From 2021, the transfer of goods to the UK will have a customs component, similar to all third countries: customs export to the UK and a customs import to the UK. If the goods are stored in the UK in their own name, provisions will have to be made in the UK. If the goods are kept in customs storage for the purpose of declaring a further destination, the storekeeper in the UK will most likely become subject to a license. It depends on the type of storage and what the further destination will be whether a separate registration for both customs and also for (import) VAT will be necessary for companies.
If this information is not sufficient for you or if you have additional questions, you can always contact your regular contact person within DSV.
