24th April 2019
The EU and UK have agreed a delay to Brexit until 31 October. So how will the deadlock be broken?
The UK could leave earlier if a withdrawal agreement has been ratified by MPs. The country must now take part in European elections on 23 May – if it did not the UK would have to leave the EU on 1 June without a deal.
GEM understands that Brexit is going to have an impact on the movement of goods and services between the UK and the remaining EU member states. We would like to assure all our Customers that GEM is confident that whatever the outcome of the Brexit discussions we will continue to support your international growth strategy into and within Europe.
Businesses can currently move goods freely between EU member states. For Customs, this means that businesses trading with the rest of EU do not have to make Customs import or export declarations, imports from the EU are not subject to import duty.
If the UK leaves the EU without a deal, there would be immediate changes to the procedures that apply to companies trading with the EU. It would mean that the free circulation of goods between the UK and EU would terminate.
With no trade agreement in place, we would need to treat your EU-destined items differently.
What does it mean?
After the UK leaves the EU, in the event of a ‘no deal’ consequence, companies exporting goods to the EU will be required to follow Customs procedures in the same way that they currently do when exporting and importing goods to a non-EU country.
For you to consider
In the UK, an Economic Operator Registration and Identification (EORI) number is assigned to importers and exporters by HMRC and is used during the customs clearance process for both import and export shipments travelling to or from the EU and countries outside the EU.
In a post-Brexit world, it is very likely that it will be a mandatory requirement to have an EORI number to ship into the EU from the UK. Click here to EORI register
Parcels destined to EU will require a commercial invoice, duty rates are dependent on the product being shipped, and will require accurate Harmonisation codes (HS), descriptions, values and country of origin of the product. GEM can provide assistance here.
Mail destined for EU will require a Customs declaration in form of either: CN22 Documentation for goods to a maximum value of £270 or CN23 Documentation for goods that have a value of over £270. GEM can provide assistance here. More information can be found here.
If you are importer and will be paying VAT & Duty on product you may want to consider registering for a deferment account. More information can be found here
While the future of the UK-EU trading model remains unclear, we are working to ensure that regardless of the outcome, we’ll be ready to continue to provide services into the EU.