In the absence of a withdrawal agreement which would introduce a transitional period to the end 2020 (with the possibility of extending it as provided for in the withdrawal agreement), from the date 30 March 2019 The United Kingdom will be treated as a non-EU country for customs purposes.
Businesses in the EU now urgently need to prepare for the UK to withdraw from the EU if they have not yet taken such steps.
Brexit will affect your business if...
- ... it sells goods to the United Kingdom or provides services to customers in that country, or
- ... purchase or receive services from undertakings in the United Kingdom; or
- ... movement of goods through the United Kingdom.
What does that mean?
Without a transitional period (as defined in the withdrawal agreement) or a final trade agreement with the United Kingdom, trade relations with the United Kingdom will, as of the date 30 March 2019 – be subject to the general WTO rules without applying preferences.
This means in particular that:
- • Customs formalities will apply, declarations will have to be made and the customs authorities may request guarantees for potential or existing customs debts.
- • Customs duties will be imposed on goods entering the EU from the United Kingdom without preferences.
- • Certain goods imported into the EU from the United Kingdom may also be subject to prohibitions or restrictions, meaning that import or export licences may be necessary.
- • Import and export licences issued by the United Kingdom will no longer be valid in the EU (UE-27).
- • Customs simplification licences and procedures such as the customs warehousing procedure issued by the United Kingdom will no longer apply in the EU (UE-27).
- • Authorisations for authorised economic operator issued by the United Kingdom will no longer apply in the EU (UE-27).
- • When importing goods imported into the EU from the United Kingdom, Member States will impose VAT. Exports to the United Kingdom will be exempt from VAT.
- • The rules on the declaration and payment of VAT (in the case of the provision of services such as electronic services) and cross-border VAT returns will be amended.
- • An export declaration will be required for movements to the United Kingdom. An electronic administrative document may also be required for movements of excise goods to the United Kingdom.
- • For movements of excise goods from the United Kingdom to the EU, (UE-27) exemptions from customs formalities will have to be made before the movement of those products under the Search for available translations of the precision link •• • excise (EMCS).
What should I do?
In order to avoid disruption, the undertakings concerned must prepare themselves, take all necessary decisions and complete all required administrative actions before the day 30 March 2019
The following checklist allows you to find out what specific steps should be taken as soon as possible to be prepared.
Checklist for brexit for traders
It should be established whether your company is trading with the United Kingdom or whether it is moving goods through the United Kingdom. If so:
- It should be registered with national customs authorities (if you have not already done so) in order to be able to trade with non-EU countries. This list shall contain the contact details of the national customs authorities.
- It should be established whether your company is prepared to continue to trade with or through the United Kingdom, having the necessary:
- human potential (customs trained workers);
- technical capabilities (information systems and others) and
- customs licences, such as special procedures (for storage, processing or marketing under the special purpose principle).
- It is necessary to find out from its national customs authorities whether your company may benefit from customs simplifications and facilitations, such as:
- simplification of the placing of goods under a customs procedure;
- General security, with reduced amounts or exemptions;
- simplification of transit procedures.
- The submission of an application to the national customs authorities for the status of authorised economic operator should be considered.
- If your company is registered at a small one-stop shop (MOSS) in the United Kingdom, it should be registered in one of the Member States UE-27.
- If you have paid VAT in the United Kingdom in 2018 a request for a refund of VAT must be submitted in good time before the date 29 March 2019, to be considered before that date.
- It is important to communicate with your trading partners (suppliers, intermediaries, carriers, etc.) as brexit may also affect your supply chain.
- We advise you to look at e-learning modules in the field of customs and taxation to see if you or your employees need additional training.
More detailed technical information can be found on the European Commission’s website, which includes ‘preparation notices’ in a number of different fields, including customs and taxation. For additional information and assistance, contact national authorities, their local Chamber of Commerce and Industry or an industry association.