Imports & Exports

Importing and Exporting post-Brexit

When the UK leaves the EU, there will be tax and customs changes that could affect you if you are an importer or exporter of glass, glazing or fenestration products, parts or machinery.

If you are an exporter or importer the situation will depend on how the UK leaves the EU. Here are some scenarios drawn up by GGF political experts GK Strategy.

Scenario 1: “No deal”

If the UK were to leave the EU with no deal, the current free movement of goods between the UK and EU would cease and trade would be governed by World Trade Organisation (WTO) rules.

Exporters

If you are an exporter of goods to the EU and the UK leaves the EU without a deal, then it is advised that you:

• Get an Economic Operator Registration and Identification (EORI) number starting with GB to continue exporting goods. Instructions for this can be found on the government’s portal.
• Check your importer has an EU EORI number.
• Decide who will make the export declarations (you can hire someone to deal with customs for you, or you can do it yourself.)
• Decide if you want to export your goods using transit (you may be able to use the Common Transit Convention (CTC) to simplify how your goods pass through customs and when your importer pays customs duties.
• Check the rate of tax and duty for your goods (your importer will need to pay tax and duty on your goods after Brexit. This will depend on the classification of the goods.)
• Check what else you may need to do for the type of goods you want to export (you may for example need to apply for an export licence)
• Find out if any changes in VAT will affect you.
• Decide who will transport your goods outside the UK (you can hire someone to transport your goods, or you can do it yourself.)

The above is just some advice for exporters should the UK leave the EU without a deal.

Importers

If you are an importer of goods from the EU and the UK leaves the EU without a deal, then it is advised that you:

• Get an Economic Operator Registration and Identification (EORI) number starting with GB to continue importing goods.
• Decide who will make the import declarations (you can hire someone to deal with customs for you, or you can do it yourself.)
• Apply to make importing easier (You can apply to use ‘transitional simplified procedures’ to reduce the amount of information you need to give at the border.
• Set up a duty deferment account if you import regularly (create a duty deferment account if you want to be able to make one payment of customs duties a month instead of paying for individual shipments. Note: You must set one up if you plan to use transitional simplified procedures.
• Check the rate of tax and duty for your goods (You’ll need to pay customs duties and VAT on all imports.)
• Check what else you may need to do for the type of goods you want to export (you may for example need to apply for an export licence)

Scenario 2: UK leaves the EU with an agreement

Transition Period

If the UK leaves the European Union with an agreement, trading conditions would remain unchanged until the end of the transition period. The transition period is currently set to end on 31^st December 2020 but could be extended, depending on further negotiations. If no agreement can be reached by the end of the transition period, there remains a chance that the UK could leave without a deal when this ends.

Future Relationship (effective from end of Transition Period)

During the transition period, the UK and EU will negotiate a future trading relationship. The Government intends to negotiate a “free-trade agreement” with the EU, which may imply changes to regulations that increase requirements for border checks between Northern Ireland and the Republic of Ireland.

If no agreement is reached before the end of the transition period, the Irish Protocol will come into effect. This will affect GGF members importing and exporting goods to and from Northern Ireland and into the Republic of Ireland.

Irish Protocol (effective from end of Transition Period)

Goods arriving to Northern Ireland from Great Britain

If the Withdrawal Agreement is passed, businesses moving goods from Great Britain to Northern Irish ports may be required to pay customs duties. Duties will be paid on goods considered to be “at risk” of being transferred to the EU. If your business can prove that goods on which customs duties have been paid are not exported to the EU, you will be compensated by UK customs. The Government has yet to clarify how this would be implemented.

Goods arriving in Northern Ireland from outside of European Union

If you import goods into Northern Ireland from outside of the EU (from the Republic of Ireland for example), these would be subject to UK tariffs if they are destined to Northern Ireland. If goods are “at risk” of being transferred to the EU, they will be subject to EU tariffs.

Goods arriving in Great Britain from Northern Ireland

If you are moving goods from Northern Ireland to the rest of the United Kingdom, you will need to submit “exit summary declaration” forms under the new proposals.

The GGF will ensure all the latest developments for importers and exporters will appear here on this page of the GGF Brexit Hub.