Status Changes

When the UK leaves the EU then the UK stops being part of the single market, and they become different territories.

Products coming from or through the EU are now crossing borders so they will need documentation, and duty may be charged, just like importing from overseas.

Importing into the UK

Imports from the EU will generally be treated the same as imports from other countries after Brexit. However, you can register for HMRC’s Transitional simplification procedures (TSP). You may wish to discuss this with freight companies and/or suppliers to avoid delays.

TSP

Transitional simplification procedures (TSP) are planned for the payment of import duties and taxes. Everyone will be able to use them after Brexit but not all goods will be eligible, and some ports may not be on board.

Under these procedures import documentation is completed online, monthly, due 4th of each month. rather than at point of import. Payment terms will be as follows:-

• Import duty – 15th of the month
• Excise duty – 29th of the month
• VAT – deferred to VAT return

EORI numbers

An Economic Operators Registration and Identification (EORI) number is for use on import and export documentation, both in the UK and throughout the EU. As the UK will no longer be part of the EU, then your existing EORI number commencing GB will become a UK number that you can continue to use it for UK declarations.

If you have not imported or exported before then you may need to apply for one.

TRANSIT

Tranist, or the Common Transit Convention (CTC) is a system for simplifying the transport of goods into and around Europe (and other member countries), usually by road. Goods are logged from consignee to consignor to or through offices of transit with one set of Transit Accompanying Documents (TAD) under a Customs Comprehensive Guarantee (CCG) such that

• Customs declaration are not required at each border crossing
• Duties are only paid at the end destination
• Some customs procedures may be completed away from the border(s)

LVCR

The EU currently has a 22 Euro (£15) de-minimus limit for charging VAT on imports into the EU – called Low Value Consignment Relief (LVCR) – that is due to be abolished in 2021.

When the UK leaves the EU this will no longer apply, effectively reducing the limit to nil.

However, a new pay on purchase scheme is planned for the UK with a £135 limit – whereby duty is calculated and paid by the supplier online rather than at the point of import