brexit solutions

(as of February 2021)

Worldnet Offers Daily Overnight Service

London –> Paris

Paris –> London

Continual and Sustainable During Brexit Difficulties

Pickups as late as the close of business, Monday-Friday
Delivery next day, Saturday also available
Other EU origins and destinations available
Subject to our normal Terms and Conditions, your first shipment is delivered on time or it’s free

Brexit created serious disruptions to logistics as we know it between the EU and the UK.

Initially created as a regulatory compliant, emergency workaround for our current clients, the service has been successfully reliable such that we are eager to expand it to new customers.

Reach out to us in London or Paris to find out more!

Email us at: globalsales@worldnet-intl.com

Post-brexit Guidelines

On the 1 January 2021, Phase 3 of the transition period, will end and the UK will operate a full, external border as a sovereign nation. This means that controls will be placed on the movement of goods between the UK & EU.

The UK Government has announced that it will implement border controls in three stepped phases up until 1 July 2021.

1. From January 2021: FUll UK clearance procedures will be in place, all consignments will need to be cleared on arrival. The relaxation of strict controls throughout 2021 will cease and documentary controls will be in place.

In 2021, there was a relaxation of some rules, notable Rule of Origin' where goods can enter the UK, using preferential zero tariffs. If certain invoice declarations are present. The invoice declarations are still required on the onus on the Importer to provide evidence that the correct criteria have been applied. These rules are complex and can vary from product to product. Learn More

Brexit Requirements

All traders will need to have considered these actions before they move goods. The UK’s negotiations with the European Union will have no impact on the need to take these actions.

There are various actions traders should take to prepare for the staged introduction of customs controls. The UK Government is not seeking anything in negotiations with the EU that will change the necessity of the following requirements.

When some of these actions need to be taken will depend on whether traders are deferring their customs declarations during Stage 1 (January to July 2021). More details on the requirements for each stage are set out in the relevant parts of this document.

1. Apply for a GB EORI number

This is required for all businesses moving goods into or out of GB, including those deferring their import declarations. It can take up to a week to get one, and around 5-10 minutes to apply. VAT registered businesses with EU trade were previously enrolled with an EORI number, so should check whether they already have a number before applying.

EORI Application Link

2. Apply for a Duty Deferment Account

Traders who import goods regularly may benefit from having a duty deferment account (DDA). This enables customs charges including customs duty, excise duty, and import VAT to be paid once a month through Direct Debit instead of being paid on individual consignments. VAT registered traders can instead account for import VAT on their VAT return using postponed VAT accounting, as detailed below.

To set up a DDA, traders, or their representatives, apply for a deferment account number (DAN) and will need to be authorised by HMRC. New rules are being introduced which will allow most traders to use duty deferment without a Customs Comprehensive Guarantee (CCG).

How to set up a Duty Deferment Account

3. Prepare to Pay or Account for VAT on Imported Goods

VAT registered traders will be able to account for import VAT on their VAT return by using postponed VAT accounting from 1 January 2021. Unless they are eligible to defer their supplementary declarations, they will not be compelled to use postponed VAT accounting.

Non-VAT registered traders (and any VAT registered traders not using postponed VAT accounting) will need to report and pay import VAT through the customs processes. Within this context, VAT payments can be deferred using a DDA as outlined above. VAT on imports of goods in consignments not exceeding £135 in value will be treated differently to those goods in consignments exceeding £135.

4. Additional Actions for Customs, VAT, and Excise Processes

Find the right commodity code for your goods.
Businesses importing goods into GB should ensure they are familiar with using the ‘Trade with the UK’ tool which provides detailed information on tariffs, taxes, and rules. The tariffs shown are those currently being applied until 1 January 2021. Use the UK Global Tariff tool to check the tariffs that will apply to goods imported from 1 January 2021.
Traders should engage with supply chains to discuss how to work together, going forward, and the information required by different entities to complete customs procedures.

Finding the right commodity code

IMPORT PREPARATIONS

From January 2021, in order to fulfill the import process, all traders will need to ensure they have:

1. A GB Economic Operator Registration and Identification (EORI) number before moving their goods.

2. The Commodity Code of their goods – needed to make a customs declaration and calculate duties on an import.

3. The customs value of goods – needed to make a customs declaration and calculate duties on an import. The rules for valuation are based on the World Trade Organisation (WTO) valuation agreement and will not change from 1 January 2021.

4. Considered whether they can, and would benefit from, using any available simplifications or facilitations, including deferring customs declarations for standard goods.

Get guidance if your business trades with the EU

VAT ON IMPORTED GOODS

• Traders not using Deferred Declarations

VAT registered traders not choosing to, or not eligible to defer their customs declarations will be able, but not compelled, to account for import VAT on their VAT return by using postponed VAT accounting.

Non-VAT registered traders who are not choosing to, or not eligible to defer their customs declarations will have the same options available to report and pay import VAT through the customs processes. As is possible for customs duties, traders and intermediaries can use duty deferment to defer payment of import VAT until a prescribed date, delaying payment for an average of 30 days. Details can be found in SECTION 3.1.4

• Traders using Deferred Declarations

VAT registered traders who are eligible to defer their supplementary declarations must use postponed VAT accounting. This means they will need to account for import VAT on their periodic (usually quarterly) VAT return which includes the date they imported the goods. To do this they will need to estimate the import VAT due from the records of imported goods they are required to keep in their own commercial records. When they submit their deferred declaration, they must adjust this estimate to precisely account for the import VAT due on a later VAT return.

Non-VAT registered traders who choose to defer their supplementary declarations will follow the same process as they do for customs duties and will pay any import VAT due on their Duty Deferment Account.

IMPORTS ADDITIONAL REQUIREMENTS

Species covered by CITES are listed in the UK under one of four appendices to the applicable regulations, according to the degree of protection that each species needs.

UK CITES requirements are the same for the EU as RoW.

• Imports to the UK need a valid, endorsed export permit (or re-export certificate) from the country of export, and an import permit from the Animal and Plant Health Agency (APHA).

Imports to the UK would need an export permit, re-export certificate or certificate of origin from the country of export, and a valid import notification on entry to GB.
Imports to the UK would need an import notification on entry to the UK.
Requirements All import, export, re-export and introduction of species covered by UKWTR need to be authorised, and the importer or intermediary must present the valid, original CITES export and import permits to Border Force officers for endorsement at a designated CITES port/point of entry.
If no valid import permit and necessary export permit or certificate is presented at the UK point of entry/exit, the specimen will not be allowed to proceed and could be seized.
Both the GB importer and the EU exporter will need to apply for a CITES permit from their competent authority. Contact details for EU competent authorities can be found here. For GB, CITES import permit applications are processed by APHA at the Centre for International Trade in Bristol. Details for traders are available online.
Traders will need to allow 15 working days for permits to be processed. There are some specific exemptions from these requirements, and applicants are encouraged to contact APHA prior to making an application. This can be done online.
Imported goods may also need to be accompanied by an export permit, re-export certificate or certificate of origin; this will be dependent on the relevant appendix to the Convention that the species are listed in.
The EU export permit (or re-export certificate) must also be endorsed (printed permits are wet stamped, e-permits will be validated) by a customs officer upon exit, and then both the export and import permit/notification are endorsed (i.e. wet stamped) by a customs officer upon entry into GB. It is the importer’s responsibility to make sure that the original permit is presented to Border Force staff at the point of entry.