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As uncertainty grows over Brexit, the UK government has advised exporters and importers that they should understand and prepare for the changes coming into effect on 31st October 2019. There will be new procedures outlined by HMRC following a hard or soft Brexit.
A number of possible outcomes may happen, but we’re preparing for two of the most likely scenarios.
Hard Brexit
The first scenario is the UK leaves the EU on 31st October without any further trade agreements with EU members. This will ultimately lead to world trade agreements coming into effect.
Soft Brexit
If we don’t go ahead with a hard Brexit, the UK will leave the EU and existing trade agreements will be effective until 1st January 2021. This means goods will circulate free of any tariffs. Also, negotiations will continue for trade agreements and the government will agree to new tariffs and customs declarations.
What will change
Hard Brexit will result in customs declarations as well as duties and taxes incurred on imports and exports. Shippers will need to decide who pays these new fees.
Customs declarations will be required on exports and imports into the UK and EU. So will full description and accurate customs classification of goods and a value for customs.
Due to customs handling, rates and additional charges could change. There’s also possibility of delays due to inspection of imported goods by local customs agencies.
How do you get ready for Brexit?
Whether a hard or soft Brexit, the UK will become independent of the EU. As a result, customs declarations will be needed for exports and imports, in addition to accurate descriptions and values.
In the event of a hard Brexit you will need an EORI-number. We strongly recommend you request this ahead of time from HMRC. There is growing uncertainty as to how trading relationships will continue with the EU once Brexit has taken place. Whilst no one can predict exactly what will change, Absolutely are here to help our customers to plan ahead and offer assistance throughout the transition period.
For more information on how you can get your business ready for Brexit, please click here.
Alternatively, if you have any questions for Absolutely, please call us on 01753 764 060 or you can email brexit@askabsolutely.com.
