Act now to avoid Brexit port delays

August 7, 2018 5:07 pm

While politicians work on avoiding a hard Brexit, they have begun producing the guidance papers detailing how trade will be affected if no deal is reached and the actions to be taken to avoid the worst effects.

We have identified two simple, inexpensive actions that will protect your supply chain post-Brexit.

One of the consequences of a hard Brexit (and possibly even a softer one) will be Customs declarations for all European movements.Which is why the guidance paper’s recommendations for the no-deal route is the need for importers and exporters to have an EORI number and prepare to pay duty or excise duty.

We suspect that EU Customs declarations will not be required at the port of arrival, to avoid delays and will therefore be submitted retrospectively.

Subject to an EORI number being declared upon arrival, but…………

Almost 200,000 UK companies only trade with Europe, which means they have no need to submit full Customs entries and consequently have no Economic Operator Registration and Identification (EORI) Number.

The good news is there is no extra administration in having an EORI number, it just means that you will be ready to carry on trading regardless.

If you do not currently have this in place, we can sort it out and make the application on your behalf, for a small fee.

With limited HMRC resource in place to deal with applications it would be prudent to take action, before the inevitable rush in 2019.

In terms of potential duty and excise duty liabilities, we would recommend an audit of your EU imports to assess the values and potential applicable tax rates, to assess the full cashflow implications of paying 20% VAT and duty – possibly in advance of arrival.

We can work with you to identify the appropriate Custom’s classifications and associated tax rates.

We can also advise your duty deferment options, with a view to set up active accounts when Brexit outcomes are more established.

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