Following the publication of the:
Trade and Cooperation Agreement Between the European Union and the United Kingdom of GB and NI
Please see below a brief summary of the key issues that may be relevant to you. We expect some more clarification over the next few days on some issues and the publication of up to date notices by HMRC.
Customs Declarations
- These WILL be required at both export and import, both here in the UK and in the EU.
- Import Vat will apply and will be payable based on the rules of the member state in the EU
- In the UK postponed VAT accounting can be used or a deferment account etc.
- The agreement does not affect arrangements on trade between Great Britain and Northern Ireland, which are covered under a separate protocol.
Tariffs and Quotas
- There will be NO tariffs on goods exported or imported between the UK and EU 27 (see below MAJOR CAVEATS)
- Cumulation can also be applied to UK/EU goods i.e. if a product is made in the UK from EU material these materials can be classed as originating (i.e. as if they were made in the UK).
- HOWEVER, the massive caveat to this is that goods must meet the requirements for preferential origin status.
- In addition to this a product will not be considered as originating in the UK/EU if a minimal process has been carried as described in the Agreement.
- Supplier declaration will be required from the exporter’s suppliers confirming origin of goods.
- The Exporter will be able to self-certify the origin of goods
- VERY IMPORTANT: if you export/Import goods that are not originating in the UK/EU add no value or undertake minimal processes and then export to the EU, then these products will be subject to the MFN standard tariffs and duties may apply. Same for goods coming from the EU to the UK.
Conformity
- Agreement avoids unnecessary technical barriers to trade with the EU on low risk products, more specifically information is provided on automotive products, wine, organics, pharmaceuticals and chemicals.
- All goods exported to the EU must meet their regulatory standard including food safety. Products of animal origin must carry veterinary certificates.
- Products that are required to display the CE mark must conform to EU standards.
- The UK will begin to introduce the new UKCA conformance mark but importers of CE marked goods from the EU will have 12 months to comply to the new requirements.
- The UK and EU will recognise each other AEO standards
Summary
- The UK/EU FTA eliminated duties and some invisible tariffs on goods which qualify subject to rules of origin
- Duties will still apply (subject to the Tariff) on non-originating goods as we have left the Customs Union
- Check conformity issues for specific goods
- Customs Procedures and declaration will happen from 11pm December 31 – ensure you and your suppliers/ customers are ready for this. Our Sister Company Independent Freight Solutions Ltd is a Freight and Customs broker and can carry out your export and import declarations: Email [email protected] or [email protected]
- Import VAT will need to be accounted for / payable in the EU
