END OF TRANSITION PERIOD
Good Morning
The end of the UK’s transition period following ‘Brexit’ earlier this year, is now quickly approaching.
As we’re sure you are aware, with a free-trade agreement pending between the UK Government and the European Union, customs declarations will be required for moving goods between Great Britain and the European Union from the 1st January 2021. (This is assuming that the UK and EU do not agree a further transition period, which would mean that the export process would not change until another future agreed date.)
A team of dedicated experts have been working since the 2016 referendum to identify risks and find solutions that will minimise the impact and disruption of Brexit as much as possible.
They have invested in additional bonded warehousing space and trained new customs professionals in readiness for additional border clearance procedures. Their networks and systems have been reviewed and re-designed where necessary, and where new permits may be required, they have been obtained.
Getting your business prepared
1. DHL Express and FedEX are working to ensure their business's are as prepared as possible, however delays at the ports and therefore increased transit times for their road services are likely.
An Economic Operator Registration and Identification (EORI) number will be required to move goods between the UK and EU after Brexit. The UK Government has issued all VAT-registered businesses with an EORI number by post. Other businesses can apply via the Government portal here. It’s free to apply and takes around 10 minutes.
As a priority, please submit your EORI number to DHL Express here if you have not already done so, FedEx clients are requested to include their EORI number at the point of completing their customs invoices. This will help prevent additional delays.
To Check if your EORI number is already validated please refer to the below website
https://ec.europa.eu/taxation_customs/dds2/eos/eori_validation.jsp?Lang=en
2. Digital customs paperwork submissions will be essential to help clear customs quickly.
Following Brexit, in almost all circumstances additional paperwork will be required when importing or exporting non-document shipments between the UK and the EU. It’s important you understand which paperwork will be required for the type of goods you import / export.
If you haven’t already, please sign up to DHL Express’ Paperless Trade (PLT) service to submit digital customs invoices. Submitting customs paperwork this way is expected to be extremely beneficial when clearing shipments through Customs post-Brexit. Most countries accept PLT and it’s a good way to improve efficiency whilst reducing your environmental impact. More information on PLT can be found here. Contact your account manager to get started now.
3. As trading with the EU becomes more complex (especially in a ‘No Deal’ scenario), additional cost will be incurred throughout the logistics industry, as more systems and processes, paperwork and formalities are introduced.
4. Check if a licence is needed to export your goods outside the UK.
5. Make sure you know the commodity code of your goods.
6. You also need to make sure you know the customs procedure code for your goods.
7. Apply for a deferment account to delay payment of your import duties and VAT for up to 46 days.
8. Ensure you keep records for the last six years for all traded goods declared to HMRC.
9. Please also note that for UK importers, business have the opportunity to opt in to the new Postponed Vat Accounting scheme (PVA). Opting in will mean that the main benefit for PVA is that no VAT would be charged at the time of import into the UK. This would be for any shipment regardless of where it originated and not just designed for EU. VAT is accounted for on a customer’s VAT returns.