Customs rules required under EU law will apply to all goods entering the customs territory of the EU from the UK, or leaving that customs territory to the UK. Even if a free trade area is agreed between the EU and the UK, providing for zero tariffs and zero quotas on goods, and with customs and regulatory cooperation, all products traded between the EU and the UK will be subject to any applicable regulatory compliance checks and controls on imports for safety, health and other public policy purposes.
From 1 January 2021, companies will have to demonstrate the originating status of goods traded in order for these to be entitled to preferential treatment under a possible future EU-UK agreement. Goods not meeting origin requirements will be liable to customs duties even if a zero-tariff, zero-quota EU-UK trade agreement is put in place.
Eligible businesses importing goods in UK from EU will be able to use:
- Customs Deferred Declarations (Standard goods):
The UK launched a 6-month soft-landing plan for importers of non-controlled (standard) goods into the UK which will come into force on 31 December 2020 with or without an EU FTA conclusion. This allows you to keep records of the goods you are importing and delay submitting a full customs declaration and paying customs duties for up to six months after import. Your Customs intermediary will be required to be authorised for Simplified Declaration procedure before they submit supplementary declarations.
More info available HERE and HERE
- Customs Duty Deferment Account:
You can apply and be authorized for a Duty Deferment Account to pay any duties owed on goods by monthly direct debit. You must have set this up before you complete your supplementary declaration.
A duty deferment account lets you make one payment a month through Direct Debit – instead of paying for individual consignments – as a total sum on the 15th of the next month.
More info available HERE
- Postponed VAT Accounting:
You can account for import VAT on your VAT return so you’ll declare and recover import VAT on the same VAT Return, rather than having to pay it upfront and recover it later, for goods you import into UK from anywhere outside the UK. You need to be UK VAT registered business and do not need to be authorized to account for import VAT on your VAT Return.
More info available HERE
Customs processes are complicated, so it is strongly recommended that you get in contact with your Customs Intermediary at your earliest convenience to agree the new procedures in order to be fully ready for your Customs compliance.
Please get in contact with us if you need more assistance to get prepared for the new Customs procedures in place from 01 January 2021.
