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
Jonathon Crosbie, Senior Documentation Officer at Birmingham Chamber of Commerce has created this guide on ATA Carnets and Brexit
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
Stephen Welfare from Royds Withy King talks about IP issues and how they may affect your business in a no deal Brexit scenario
This handy guide by MS LAW will give you the legal context of Brexit and what it means to you.
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.
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
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: email@example.com or visit the WTO website (https://www.wto.org/english/tratop_e/tariffs_e/tariff_data_e.htm)
IMPORTING AND IMPORT TARIFFS
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:
- Customs procedures
- Moving goods to the UK from the EU
- Claim VAT refunds from EU countries after Brexit
- UK product safety and metrology changes in a no-deal Brexit
- In a no deal scenario the UK would fall outside of the EU regulatory frameworks. You will need to take action to continue selling many manufactured goods in the EU, and may need to act to continue selling in the UK too.
- Placing manufactured goods on the EU market after Brexit
- Updates have been made to the customs processes you’ll need to follow if you move goods between Ireland and Northern Ireland; information about moving controlled and licensed goods, transitional simplified procedures and moving goods under transit have been added. Customs procedures for moving goods between Ireland and Northern Ireland in a no-deal Brexit
- Understand how to continue to access preferences where the UK has agreed trade continuity arrangements with partner countries, or through the UK’s Generalised Scheme of Preferences (GSP). Proof of origin: trade continuity agreements and GSP
IP AND EU SETTLEMENT SCHEME
- IP And Brexit
- Apply to the EU Settlement Scheme (settled and pre-settled status) (www.gov.uk/settled-status-eu-citizens-families)
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
Deciding which customs procedures to use
Common Transit Convention (CTC)
National Export System (NES)
Grants for businesses that complete customs declarations
Help and support for traders when the UK leaves the EU
HMRC Customer Forum
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’s third edition of HMRC’s impact assessment for the movement of goods if the UK leaves the EU without a deal.
SI 2019/1307 – The Cross-border Trade (Public Notices) (EU Exit) Regulations 2019 has been added.
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.