BITE-SIZED BREXIT BLOG

BREXIT PREPARATION

Businesses are being advised to prepare for Brexit, and whilst the government are still working towards a Deal, it is pertinent that businesses should be planning for a No Deal scenario.  BATF and the affiliated divisions are working on ways to help you to understand what this entails by simplifying and signposting you to relevant guidance.

Please see below links to updated guidance on IP, Legal Context, Custom Planning and ATA Carnets

ATA CARNETS & BREXIT

Jonathon Crosbie, Senior Documentation Officer at Birmingham Chamber of Commerce has created this guide on ATA Carnets and Brexit

READ THE GUIDE HERE

CUSTOMS PLANNING

Barbara Scott from Customs Associates Limited has created this guide to help with all the important aspects of importing, exporting and the potential change in tariffs

READ THE GUIDE HERE

IP

Stephen Welfare from Royds Withy King talks about IP issues and how they may affect your business in a no deal Brexit scenario

READ THE GUIDE HERE

LEGAL CONTEXT

This handy guide by MS LAW will give you the legal context of Brexit and what it means to you.

READ THE GUIDE HERE

BREXIT CONTINUED…

Please note this is not an exhaustive list of what may apply to your specific product/business but is meant to act as guidance.  Further industry specific guidance will follow in the coming days.  Prepare your business for Brexit (https://www.gov.uk/brexit)


This document sets out in one place what will change if the UK leaves the EU without a deal and outlines what the Government is doing to get ready for Brexit on 31 October. No-Deal Readiness Report

Register for an EORI number.

To interact with UK Customs systems to import or export goods businesses will need an Economic Operator Registration Identification (EORI) number.  http://www.gov.uk/eori 

HMRC has stepped up efforts to ensure businesses are ready to trade post-Brexit by automatically enrolling companies in the Economic Operator Registration and Identification system. More than 88,000 VAT-registered companies across the UK have now automatically been allocated EORI numbers.  If you are automatically enrolled you will receive a letter informing you of this.

• If a business is not VAT-registered, it will still need to register for an EORI number.   Information on how to register can be found here (https://www.gov.uk/eori)

• Getting an EORI number is one of the steps that businesses need to action urgently to be    prepared for leaving the EU

• After getting an EORI number, businesses will need to decide whether to complete customs declarations themselves, or employ a customs agent to do this. As part of the £2.1bn announced on 31 July, they are doubling the support made available for customs agents to train new staff or invest in better IT so businesses can get the support they need to complete customs declarations. If employing a customs agent, businesses will need to supply their EORI number.

• Traders also need to decide whether to apply for Transitional Simplified Procedures to make it easier to import goods from the EU. Find out how to register here

• If businesses have been issued a UK EORI number by HMRC and then apply online, they will receive a message to say that they already have one

• HMRC advises businesses to contact HMRC if they are unsure. HMRC will be able to confirm whether a number has been assigned

EORI mythbuster

EXPORTING AND EXPORT TARIFFS

Get your business ready to export

In the event of a no deal Brexit, exports to the EU will attract tariffs.  For the complete list of WTO tariff rates in the event of a no deal scenario, BJGI members should contact: rebecca.gough@batf.uk.com  or visit the WTO website (https://www.wto.org/english/tratop_e/tariffs_e/tariff_data_e.htm)

IMPORTING AND IMPORT TARIFFS

Get your business ready to import

If the UK leaves the EU without a deal, you may need to pay different rates of customs duty (tariffs) on imports into the UK from the EU and the rest of the world. These rates will only be applied if the UK leaves with no deal.

The temporary rates would be in place for up to 12 months. The government will then introduce a permanent tariff regime following a public consultation.

Depending on where the goods come from, the tariff rate will either be a preferential rate or a non-preferential rate, which is also called a ‘Most Favoured Nation’ (MFN) rate. Read more here:  

IMPORT GOODS USING TRANSITIONAL SIMPLIFIED PROCEDURES IN A NO DEAL BREXIT

Make it easier to import goods from the EU in a no deal Brexit, by delaying your declaration and paying import duties and VAT. Learn more about Transitional simplified procedures (TSP)

FREE TRADE AGREEMENTS

The UK, as an EU member, participates in around 40 trade agreements.  Trade agreements that the UK is part of as an EU member state will no longer apply if there’s a no-deal Brexit.  The UK government is working on new agreements to replace EU trade agreements after Brexit. Read the latest guidance here: UK trade agreements with non-EU countries in a no-deal Brexit. https://www.gov.uk/guidance/uk-trade-agreements-with-non-eu-countries-in-a-no-deal-brexit

HM GOVERNMENT GUIDANCE

There are a series of guides for businesses that trade with the EU in the event of a no deal Brexit. These cover:

IP AND EU SETTLEMENT SCHEME

VAT

If the UK leaves the EU without a deal, the government’s aim will be to keep VAT procedures as close as possible to what they are now. This will provide continuity and certainty for businesses. However, if the UK leaves the EU with no agreement, then there will be some specific changes to the VAT rules and procedures that apply to transactions between the UK and EU member states. The government has taken decisions and actions where necessary in order to mitigate the impacts of these changes for businesses.

This note summarises the main VAT issues that will affect UK businesses trading with the EU in goods and services if the UK leaves the EU without an agreement. Although no changes will be made before then, this note highlights the VAT changes that businesses will need to prepare for when importing goods from the EU, exporting goods to the EU, supplying services to the EU, and interacting with EU VAT IT systems such as the VAT Mini One Stop Shop (MOSS).

You can also read the full UK withdrawal guide that is available on the European Commission website here

TRADING CITES-LISTED SPECIMENS THROUGH UK PORTS AND AIRPORTS IF THERE’S A NO DEAL BREXIT

Designated land, sea and airports for trading or moving CITES-listed endangered animals, plants, or their parts and derivatives after Brexit. Change made:- added a requirement to use the CHIEF system to import specimens through the Eurotunnel.

For the latest guidance on trading and moving endangered species protected by CITES if there is no withdrawal deal please see the following link: https://www.gov.uk/guidance/trading-cites-listed-species-through-uk-ports-and-airports-after-brexit?utm_source=d17c4b59-b2ff-44fd-947f-a90594a81de9&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

MERCHANDISE IN BAGGAGE

There has been an update to the notice with regards to merchandise in Baggage, this relates in terms of transporting samples to and from the EU: Bringing merchandise from or to the UK in baggage or a small motor vehicle in a no-deal Brexit  

Please note other useful links:


Getting help from third parties
https://www.gov.uk/guidance/appoint-someone-to-deal-with-customs-on-your-behalf

Deciding which customs procedures to use
https://www.gov.uk/guidance/customs-procedures-if-the-uk-leaves-the-eu-without-a-deal?step-by-step-nav=db1149f5-f60a-4d02-be0c-9c9db2828665

Common Transit Convention (CTC)
https://www.gov.uk/guidance/what-you-need-to-move-goods-between-or-through-common-transit-countries-including-the-eu

National Export System (NES)
https://www.gov.uk/guidance/export-declarations-and-the-national-export-system-export-procedures

Grants for businesses that complete customs declarations
https://www.gov.uk/guidance/grants-for-businesses-that-complete-customs-declarations

Help and support for traders when the UK leaves the EU
https://www.gov.uk/guidance/help-and-support-for-traders-if-the-uk-leaves-the-eu-with-no-deal

HMRC Customer Forum
https://online.hmrc.gov.uk/webchatprod/community/forums/list.page

Information videos for traders in a no-deal Brexit
Videos about trading with the EU in a no-deal Brexit; webinar about transitional simplified procedures has been added.

HMRC impact assessment for the movement of goods if the UK leaves the EU without a deal

HMRC’s third edition of HMRC’s impact assessment for the movement of goods if the UK leaves the EU without a deal.

Statutory Instruments relating to Brexit

SI 2019/1307 – The Cross-border Trade (Public Notices) (EU Exit) Regulations 2019 has been added.

Sources:

www.gov.uk

www.hmrc.gov.uk

www.gov.uk/brexit 

  

Important Note:

The information contained in this document is provided in utmost good faith and has been based on the best information currently available at the time of writing, but is to be relied upon at the user’s own risk. No representations or warranties are made with regard to the completeness or accuracy and no liability will be accepted by the British Allied Trades Federation for damages of any nature whatsoever resulting from the use of or reliance on the information.

The sources of the specific information can be found within the document.

The views expressed in this document are solely those of the author and do not necessarily represent those of the British Allied Trades Federation.

The British Allied Trades Federation, a company limited by guarantee and registered in England & Wales number 69391. The registered office is Federation House, 10 Vyse Street, Birmingham B18 6LT.

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