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    Ready for Brexit 2.0

    There are a lot of changes which come into effect from the 1st January 2022 which businesses who trade within Europe will be affected by. Here’s our round up of what’s happening.

    What is changing?

    Introduction of controls to goods moving between GB and the EU

    Ports and other border locations are required to control goods moving between Great Britain and the EU. This means that unless goods have a valid declaration, and have received customs clearance, they’re not able to leave the port in most cases. It’s also possible that goods may be moved to an Inland Border Facility for checks. If you don’t follow the correct process from 1 January 2022, the new systems will not permit their goods to leave the country and will be turned away as they will not hold export clearance. Our advice is to check with the courier or freight forwarder to know who will make the necessary declarations and what additional information they need from you.

    Delayed customs declarations – abolished

    Delayed import customs declaration are no longer available from 1st January 2022, so most people will have to make declarations and pay tariffs at the point of import. Clients should consider how they are going to submit customs declarations and pay any duties that are due post 1 January 2022.

    Rules of origin – for imports and exports

    Throughout 2021, businesses have been allowed to export goods to the EU using tariff preference and get supplier declarations afterwards, to give them more time. But from 1 January 2022 you must have supplier declarations (where required) at the time you export your goods. If you’re subject to a request for verification by EU customs authorities and can’t provide this supporting evidence, the EU customer will be liable to pay the full (non-preferential) rate of Customs Duty and HMRC may also charge you a penalty.

    Changes to commodity codes

    Commodity codes are changing – these codes are used worldwide to classify goods that are imported and exported. They are reviewed every 5 years, and will be changing on the 1st January 2022.

    Who does it affect?

    Any business that deals with the movement of goods from Great Britain to the EU and vice versa. Even businesses that use customs agents or freight forwarders need to confirm how the declarations will be dealt with from 1st January 2022.

    What do you need to do?

    •  Check that you’re able (and ready) to submit the customs declarations and pay any duties that are due from the 1st January 2022,
    • If using an intermediary, check that the intermediary is able to deal with this on your behalf, and confirm where the responsibility for these new obligations sit,
    • Have supplier declarations ready (where required) at the time goods are exported
    • Check the commodity codes for goods using the Trade Tariff Tool to see if there have been any changes to the codes for your goods.

    If you need any help or clarification get in touch.

    AUTHOR

    DAMIAN SHIRLEY, VAT Partner

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