Trading under the Border Operating Model

We recently posted about the document the UK Government has released outlining the new procedures that will be in effect for cross border trade between the UK and EU. Here we explore some of the more detailed resources that will help you prepare for the changes. We want to point you to some of the resources that will help you prepare your business.

Firstly, review the links in the previous post if you haven’t already done so. There is a lot to take in and potentially lots to prepare. 

Some things are now fixed and will apply from 1st January 2021 (the Customs Declaration situation, the import VAT rules) so you can start preparing for those changes. Some things are still being negotiated (the UK-EU trade deal) so you need to review how WTO rules and tariffs could affect your business and if you trade across the Irish border there is also more to come on that. If you haven’t already, we strongly suggest you start.

Resources that may be useful for you

Two useful flowcharts have been published by HMRC covering how to export to the EU from the UK and how to import into the UK from the EU, these two key documents need to be reviewed should you import or export and can be found here.

These two other links cover a range of topics regarding Importing or Exporting, you can choose your pathway through:

• https://www.gov.uk/starting-to-import 
• https://www.gov.uk/starting-to-export

Customs Declarations

These will be required, now is the ideal time to review your trade terms including Incoterms (International Commercial Terms) to check who is responsible for the customs declarations, trade documentation, licences and freight costs. Grants are available for training on this for example via the UK Customs Academy. The Institute of Export & International Trade has published a summary of 5 steps for exporters, 10 points for importers and how importers can defer declarations.

Intrastat

The requirement to submit an Intrastat return will continue for Intrastat businesses, for Import only, whether using standard import (with full customs declarations), Deferred Declarations (standard goods) or Simplified Declarations. The import and export publications available have been updated to reflect this, they are available here.

EC Sales List

The requirement to submit an EC Sales List for all sales to EU businesses ends on1st January 2021, the final report for sales up to 1st January 2021 is required by the 21st January 2021, specified in an update at the end of this guidance.

Tariffs

If no Trade Deal is reached with the EU, the UK reverts to WTO terms (MFN – Most Favoured Nation terms). Tariffs may apply to EU goods in the same way they do to any WTO member (outside a trade deal). Commodity Codes must be correct, this is the responsibility of the company, not the Agent (if used). Many of the UK Global Import Tariffs have been changed/simplified, including some on the Covid19 Commodity Code list. Plus, Liberalisations have been made to support manufacturing and green industries with the tariffs being removed on over 2,000 products.

We have a few links that may prove invaluable to you:

• Search the UK Global Tariff listings
  https://www.check-future-uk-trade-tariffs.service.gov.uk/tariff
• Guidance on the UK's trade agreements with non-EU countries
  https://www.gov.uk/guidance/uk-trade-agreements-with-non-eu-countries

We will continue to support our customers through this process, further updates will follow this post.

Need further help?

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