Overview – What if UK and EU Don’t Reach a Deal on Trade?
How to Prepare – Review and assess the impact of the World Trade Organization tariffs on your products. Research UK programs related to the suspension/postponement on the outlay of duties and taxes.
Customs Import Declarations
How to Prepare – Although shippers will have up to six months to complete an import declaration and duty/tax payments, delaying the declaration can create an administrative backlog. Review your import documentation to ensure you have the required EU/UK EORI numbers and provide all information necessary for smooth clearance of your goods. UK tariffs that will be effective Jan 1, are found here.
How to Prepare – Advise if you or your customer are registered in any of the EU countries so the most cost effective entry point can be assessed. Note that some EU recipients may be able to claim back VAT.
Expect Delays at the Borders
How to Prepare – Review your trade lanes and port of entry/exit to ensure you have appropriate paperwork in line to mitigate delays. Note all trade documentations should include: Commercial Invoice, packing list and certificates will require important data elements including value of the goods, HS codes and product description.
Note that the UK Government announced full border controls on goods entering the UK will not apply until July 2021. The government will implement border control and health checks in three phases:
Phase 1 – Jan 1, 2021: Full tariffs and checks on controlled goods
Not only will tariffs be subject to change if any free-trade agreements are signed, but trade processes and procedures could change based upon the outcome of the ongoing Brexit negotiations. It is likely that if any deal is reached, it will not occur until close to the deadline, so it is crucial that you review your EU/UK supply chain now in preparation.