Although the UK technically left the EU in early 2020, many regulations and policies have continued to apply to employers and organisations that conduct business with partners and clients overseas. But, in 2021, there will be an abundance of changes that organisations must be prepared to make in order to be in compliance with new rules and regulations on imports and exports.
The UK and EU reached a deal on 24th December that will help keep trade and transit flowing smoothly, but there are still many adjustments that those involved in both imports and exports must be aware of in order to avoid having their operations disrupted.
The New Deal
It is important for organisations to understand the new deal between the EU and UK.
One key element of the new agreement is that, in most situations, there will be no tariffs on goods traded between parties. The deal represents the first pact between the EU and another country that is free of tariffs and quotas. It is worth noting that, if countries within the EU have their own separate trade.
When it comes to bringing goods into the UK from the EU, organisations must familiarise themselves with the Stage 1 Core Model. This model outlines all processes that shipments must adhere to starting in January.
Post-Brexit, all traders now must adhere to the following requirements in order to import goods:
- A UK Economic Operator Registration and Identification (EORI) number
- The appropriate commodity code pertaining to the goods being imported in order to make a customs declaration and calculate duties on an import
- The customs value of goods, which is also needed to make a customs declaration and calculate duties
In addition to there being many new regulations and requirements for importing goods into the UK, the ending of the Brexit transition period has also introduced many changes for exporting goods.
When assessing and amending their previous export processes, traders must ensure that they have:
- A UK EORI number
- Access to the safety and security (S&S) system in order to submit exit summary declarations
- Access to Customs Handling of Import and Export Freight (CHIEF) and a CHIEF badge in order to submit export customs declarations
- Understanding of how to use this new government tool to check duties and customs procedures for exports
- A submitted application for an EU EORI number
The end of the Brexit transition has loomed with potential challenges for years. As evidenced by multiple components of new regulations being phased in or lasting only the first half of 2021, it is clear that the government understands that the adjustments will take time. That being said, all organisations affected by the changing import and export rules should still prioritise understanding the new processes and requirements as quickly and thoroughly as possible.
For more information, contact us today.