With the New Year comes another important Brexit deadline – this time an end to the period for delayed customs declarations.
The shake-up will have a big impact on trade with the continent, and it is vital businesses are prepared should they wish to avoid chaos at the border.
Here, Andrew Diver, Head of Taxation at Beatons Group, explains why companies should look towards an HMRC stress-free January.
What is the situation?
Businesses importing goods from the EU into the UK have benefited from delayed declarations with HMRC measures meaning they could be declared 175 days from the point of entry.
Why were measures brought in?
The measures, as part of the Brexit transition, were originally set to expire on June 30 this year but were pushed back to New Year’s Eve.
They were designed to make the transition out of the European Union easier for traders and keep international trade flowing without excess delay.
But while these have been a key aid to businesses across Britain, the New Year will bring with it great change.
From the 1st, all goods entering the UK from the EU will need a full declaration – including supplier declarations and statements of origin. Using EU as a country of origin will also be removed, and the relevant member state origin code will now be required.
Postponed VAT accounting will still be available except where HMRC have specifically advised otherwise.
What should businesses do?
Importers should have begun preparations for the changes, with Christmas and the New Year now approaching at an alarming pace.
Putting in place relevant procedures in-house, or engaging with a customs broker, can help make the required full customs declarations for goods imported.
Businesses should get an EORI number from the government before importing goods and entering them into EIDR records.
Moreover, they will also need to account for import VAT.
Also, unrelated to Brexit, commodity codes to classify goods will also change from January 1, 2022, as part of their usual five-year review cycle. Commodity codes which have been used for the past five years may no longer be accurate.
How Beatons can help
The Beatons Group specialises in a wide range of tax, customs, and duty areas, including companies importing from the European Union.
Should your business require assistance, contact the friendly team on 01473 659777.