If the UK leaves the EU without a deal, from 11pm on 29 March 2019, UK businesses will need to apply the same procedures to EU trade that apply when trading with the rest of the world.
Under current import processes, goods are not released from customs control until you make a full import declaration and pay the duty owed in full. HMRC are however introducing Transitional Simplified Procedures to make it easier to import goods from the EU, at ‘roll on roll off locations’. The measures are temporary, however will make importing into the UK from the EU a lot easier, where you have traded, prior to a no deal Brexit, with the EU only i.e. you do not currently have customs procedures in place.
These transitional procedures reduce the amount of information you need to give on an import declaration when the goods are crossing the border, by allowing you to defer:
- Giving a full declaration
- Paying duty
To register to use Transitional Simplified Procedures you must:
- Have an EORI number
- Be established in the UK
- Be importing goods from the EU into the UK - including goods travelling via the EU from the rest of the world, providing they have cleared EU customs formalities
You cannot register to use Transitional Simplified Procedures if:
- The only goods you import are coming into the UK directly from outside the EU
- You choose to use a customs special procedure for your goods
- You’re acting on behalf of a trader (for example you’re a freight forwarder)
- HMRC’s records show that in the past you have had overdue tax returns, have not paid tax or duties due or your business is insolvent
To note, there is a controlled goods procedure, if you are importing certain goods, for example alcohol or tobacco. There are also different rules if tariffs apply to goods.
You’ll be able to register for Transitional Simplified Procedures online from tomorrow, 7 February 2019.
For more information, please speak to your usual Lubbock Fine advisor or contact our VAT Specialist Jaspal Dhillon at firstname.lastname@example.org