Brexit guides - B2B supplies of goods into the UK

The UK government has set out its approach to the new border between the UK and the EU which will come into force from 1 January 2021 and is not dependent on the outcome of the free trade negotiations. It is important to remember that there are likely to be different requirements for goods moving between England, Scotland and Wales (known as GB) and Northern Ireland and these are still under discussion.

Full import controls into EU from GB are expected from 1/1/21.

There will be a staged approach to the introduction of the border for goods coming into GB from the EU, which is set out below:

1 January 2021

Businesses in England, Scotland and Wales (GB) importing goods from EU suppliers will need to prepare for basic customs requirements, consider how to account for and pay VAT on imported goods (postponed accounting for VAT reg), and will then have up to 6 months to prepare customs declarations. Any customs duty due can be deferred until the customs declaration is made. UK safety and security declarations will not be required for 6 months.

Standard customs declarations will be needed for controlled goods and excise goods, there will be physical checks at point of destination for all high-risk live animals and plants and a requirement to pre notify some movements, but not required to enter through a Border Control Post (BCP).

Export declarations and UK exit safety and security declarations needed for all goods. CTC users will need to follow all transit procedures. A goods vehicle movement system will be introduced from 1/1/21 for transit movements only.

April 2021

All products of animal origin (POAO) and regulated plants and plant products will  require pre notification and health documentation. Physical checks continue at point of destination.

July 2021

Traders moving any goods into GB from the EU will need to make full customs declarations at point of importation and pay all relevant tariffs. Full safety and security declarations required, goods for SPS controls need to be presented at BCPs, physical check and taking of samples will increase. GVMS in place for all imports, exports and transit at border locations choosing to use it.

Key issues to consider and further information are as follows:

• Who will be responsible for importing the goods into the UK? You may need to consider your terms of trade with the supplier to establish who will be responsible for the importation into the UK, and also who is responsible for documenting the export from the EU. (link to inco terms/example of impact of main incoterms – DDP, EXW, FOB, CIF?) https://www.great.gov.uk/advice/prepare-for-export-procedures-and-logistics/international-trade-contracts-and-incoterms/
• There is specific guidance for roll on roll off importations at this link  - https://www.gov.uk/guidance/moving-goods-to-and-from-the-eu-through-roll-on-roll-off-locations-including-eurotunnel
• A customs/freight agent may be needed to complete import documentation – details of UK agents can be found here:  https://www.bifa.org/home
• Deferment of customs declaration may be available for up to six months for importations after 1 January 2021 – further HMRC guidance is here:  https://www.gov.uk/guidance/declaring-goods-brought-into-great-britain-from-the-eu-from-1-january-2021?step-by-step-nav=1ddb4c89-1fe9-4ad0-b561-c1b0158e6bc5
• Information required for the documents  - the importer’s UK EORI is required plus commodity code, origin information which should be provided by the seller, but will be required for movements of own goods into the UK.
• For VAT registered businesses import VAT can be accounted for on the VAT return, otherwise it may be deferred for an initial period along with any customs duty. https://www.gov.uk/guidance/check-when-you-can-account-for-import-vat-on-your-vat-return
• Depending on the final agreement with the EU there may be customs duty according to the new UK tariff https://www.check-future-uk-trade-tariffs.service.gov.uk/tariff
• There may be non tariff barriers such as inspections for some goods 
• Government guidance implies that intrastat arrivals reporting will still be required
• A duty deferment account may be required for excise duty and any customs duty
• As a result of the Northern Ireland Protocol in the Withdrawal Agreement there are separate new processes for goods moving from GB (England, Scotland and Wales) into Northern Ireland and from Northern Ireland to GB. The detail of the these arrangements is subject to review, but current guidance can be found at this link: https://www.gov.uk/government/publications/moving-goods-under-the-northern-ireland-protocol