The negotiations for an agreement are still in progress, however whatever the outcome controls will be implemented for all cross-border trade between the UK and EU.
(Please note that all references to UK to EU trade also apply to EU to UK trade).
If your company is involved with the trading or movement of goods between the UK and EU countries, or trading with the UK using EU Free Trade Agreements, your company will be affected by Brexit.
Business transactions between the UK and EU countries were previously seen as intra-community traffic and therefore not subject to customs import processes and duty payments. Brexit changes this, meaning products must be included in customs declarations, with a potential liability to pay duty.
Companies outside the EU doing business with UK companies might be affected as existing trade agreements will cease if/when the UK leaves the EU Customs Union. Trade after that will be subject to the new trade agreements the UK is negotiating.
We also expect significant impact on returned goods between the UK and EU since it could be that duty will be payable on the original import and the return.
Customs controls will be introduced between the EU and the UK when the transition period ends on 31 December 2020.
Some of the key preparations required are to obtain an EORI (Economic Operators Registration and Identification) number, classify your products and have a correctly formatted commercial invoice. For guidance on these and more items required please refer to the links in the drop down Brexit Menu.
You may also need to review your supply chain, especially if you are currently using a central warehouse based in the EU or UK to distribute across Europe, to avoid paying duty on entry to the EU and then again on entry to the UK.
You will also need to appoint CMI to act as your direct representation to complete Customs declarations, your normal contact can provide details of what is required for us to act on your behalf.
Unfortunately yes, because all shipments will require customs documentation on departure and arrival, for which you may require a customs broker. Additionally, it is likely that duty will be payable on entry to both the EU and UK, although this is still the subject of negotiations between the EU and UK.
Whatever the outcome of the negotiations, customs controls will be implemented by both the UK and EU, requiring clearance before cargo is allowed to move forward. Apart from the potential for port congestion, the logistics will change from an operation which is similar to a movement from the EU to the USA or Japan with documentation needed to be in place before goods are collected from origin. This will inevitably impact overall supply chain speed and reliability.
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