Originally the UK government intended to reduce the majority of customs duties to zero. However the UK government is now consulting on replacing the current import tariffs with 4 bands to cover the majority of goods. The consultation will run from the 5th March 2020 and the government is wanting to hear from all business importing goods into the UK on how they feel the new tariff system should be implemented. Overall the UK government wishes to simplify the current complex tariff which it still shares with the EU until 31st December 2020.
The new import duties are expected to be consolidated around four bands.
As with the previous plan, certain products would be exempt and have their own custom import duty system. Currently there is no list available of what these products will be.
Today is brexit day. At 2300hrs the UK officially departs from the EU after 47 years. However we do not fully exit until 31st December 2020. For the next 11 months the UK will trade under all the same rules as before and there will be no change in the UK customs arrangements with the EU and the rest of the world. Between now and December the UK government will try and reach trade agreements with not just the EU all other countries in the world. The outcome of these agreements will define the UK relationship with its trading partners for the foreseeable future.
There will be changes in customs entries after the 31st December. Our website will be updated with information as new procedures are agreed and what action importers and exports will need to undertake. We have several pages dedicated to specific manufacturing sectors which will be updated as the UK government updates its exit plans.
With the Conservatives winning the UK election on 12th December 2020, they had no problems in getting Boris Johnsons Brexit deal passed on the 20th December 2019. If the European Parliament agrees to the deal the UK will officially leave on the 31st January 2020. As a deal has been done there will be a transitional period which will run until 31st December 2020. At this point technically all the trade deals and other related legislation will be in place with the EU and trade will then continue under these rules.
It is still possible for the UK to leave under a NO DEAL situation if the UK and EU are unable to agree final separation terms during the transitional period. In this case this would also happen on the 31st December 2020.
In order to make the BREXIT transition easier for organisations the UK government is introducing a transitional simplified procedure (TSP) when import goods. Traders registered for TSP will not need to make a full customs declaration at the border and will also be able to defer paying their customs duties.
Organisations which wish to use the TSP systems will have meet the following requirements:
There trader must then follow a set procedure either directly or through their appointed freight forwarder or customs broker on declaring the goods. More information can be found on the TSP page in our BREXIT guidance section.
If you are part of a VAT group then you will need to check to see what your EORI number is. You may need to make a new application for your own EORI number.
Non VAT registered sole traders and organisations will still need to apply through the HM Customs website for an EORI number. You will need one if you are buying or selling from the EU once BREXIT happens.