ARE YOU READY FOR BREXIT?
With the United Kingdom leaving the European Union on 31 January, an 11-month transition period commences during which we hope that both the United Kingdom and the European Union succeed in negotiating a comprehensive trade agreement, as described in the political declaration.
During the current transition phase, Deutsche Post DHL Group’s cross-border business continues as usual.
Through its global activity, Deutsche Post DHL Group is used to adapting to changing trade conditions and whilst Brexit is presenting all companies with exceptional challenges, we continue to work closely with our customers and remain fully committed to supporting their cross-border trade post Brexit.
What You Can Do to Get Prepared
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During the following months of transition, the negotiations between the UK and the EU will continue, but a worst case scenario for businesses is still a no deal Brexit. This would result in the UK becoming a third country with respect to its trade with the EU. Such countries have no trade agreement with the EU and their merchandise trade becomes subject to customs procedures and to a tariff schedule defined under the World Trade Organization (WTO).
Also, the EU VAT scheme will no longer be valid after a no deal Brexit. This means that VAT has to be paid in the UK when exporting from the EU. VAT will be levied together with any customs duties and a customs clearance process will be necessary also if only VAT is due.
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In case of a no deal Brexit, companies exporting from the EU to the UK (and vice versa), will need to have an EORI number (Economic Operators' Registration and Identification number). You currently only need an EORI number when trading with countries outside the EU, as its required to release goods from Customs. Post-Brexit you will need this to trade with the UK too. In addition, UK-issued EORI numbers will not be accepted by EU countries post-Brexit, so you will need to register for EU issued EORI number if you want to seamlessly continue trading between the EU and UK. If you currently have an EORI number issued by a different EU Member State than UK, you’ll need to obtain a UK EORI number for post-Brexit UK imports and exports.
You can get UK EORI number via www.gov.uk/eoriUK EORI number. You will get your EORI number by email, usually within 3 working days.
You can register for EU EORI number hereEU EORI Number.
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If you are importing into the UK, it is advised to confirm VAT number and open a deferment account to make use of postponed VAT accounting and defer payment of duties. Further details on VAT system rules and processes in a no deal Brexit can be found at the following:
UK Government - Paying Vat When You Sell Digital Services to EU Customers After Brexit
UK Government - Claiming Vat Refunds From EU Countries After Brexit
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From 31 Dec 2020 it is expected the UK-EU trading relationship will change. In preparation, your business needs to be clear about some key documents needed when trading internationally (e.g. commercial invoice), and some of the data you need to complete customs declarations (e.g. value of the goods, HS codes).
You can find more support in identifying how your goods are classified via HM Revenue & CustomsHMRC advice on classifying goods or European CommissionEU product classification system resources.
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Does Brexit impact imports into UK from non-EU countries?
The procedures and processes for imports from outside the EU27 will remain largely unchanged in the UK.
Will the EORI numbers previously issued by the UK Customs Authorities still be valid for trading with EU Member States or an EU EORI number is needed?
No. In the event of the UK leaving without a trade deal after the transition period is over, the UK will become and be treated as a 3rd country. Therefore UK issued EORIs, and other authorizations will no longer be valid as the UK will not be a 'competent authority'. Further details on this are available via the European CommissionEuropean Commission Brexit preparedness.
If a company has EU EORI number and wants to continue to ship to the UK, is there any requirement for a UK EORI number?
Yes, a UK EORI number (starting with GB) is needed. This means cross European traders might end up with two EORIs, one EU and one UK. Further information on how to prepare for Brexit from the UK government is available here.UK Gov Website
Does the EORI cover both importing and exporting goods?
EORI number applies for both imports and exports.
What if goods are imported into UK from non-European countries travelling through Europe e.g. from China?
In this case it should be considered how to clear goods. There is a possibility that the trader would be charged duty upon entry into the EU and then again when goods arrive in the UK. Shippers may wish to explore using transit to move goods under customs control through the EU.
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Preparing for Brexit
UK Government - The Transition PeriodUK Government Import, Export & Customs for Businesses
EU Preparedness Notices for BrexitEU Preparedness Notices for Brexit
National Brexit Information for EU Member StatesNational Brexit Information for EU Member States
Customs, Taxes, EORI
EU Member States National Customs InformationEU Member States National Customs Information
HM Revenue & Customs Advice for Classifying GoodsHM Revenue & Customs Advice for Classifying Goods
EU Product Classification SystemEU Product Classification System
