22/06/2020: On Friday 12th June the UK formally told the EU that it will not be asking for an extension to the Brexit "Transition Period". ?This means that from 1st January 2021 new trade rules will come into force and customs declarations will be required. Schenker's Brexit team continue to work on all the issues that need to be understood so that ?we can continue to support our Customers and make the transition to the new rules as simple as possible.
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02/02/2020: Update from Robert Hardy (Brexit Adviser & Registered Expert with EU Commission)
Well that’s it then, we have left the EU!
Now our attention diverts to the trade talks.?Our message is ‘keep calm and carry on’…preparing.?Expect Customs formalities from 1st January 2021 and prepare as such.
EVERYTHING CHANGES, NOTHING CHANGES
We received a lot of worried calls about the 31st January leaving date.? Many thought the paperwork started from 1st February.? It did not!? We are now in a transition period during which time the UK Government will negotiate with the EU (and others) and those negotiations will decide what tariffs and processes apply from midnight on 31st December 2020.? It should be noted that UK Gov now refers to EU as ‘rest of world’ and bunches them in the same category as USA, Australia, New Zealand, Canada etc. The mood has changed and the need for some form of frictionless deal by end of the year is firmly in the ‘nice to have’ column and a long way from the ‘essential’ column.?They are adamant that the transition period will not be extended.
NO DEAL IS HISTORY!
The concept of NO DEAL is dead.?There might not be a suitable trade agreement (with the EU) by the end of the year but Government is not referring to that as no deal but rather as a ‘work in progress’.??The border process is very likely to be similar to the previous NO DEAL version, only worse!?? Many of the easements that were introduced as a survival tactic for the cliff-edge exit are now off the table.?TSP (Transitional Simplified Procedure), lack of UK border inspections for food, feed and plants, temporary tariffs and perhaps even postponed VAT accounting (to be confirmed) are all shelved.?? Do NOT rely on them because, right now, they no longer exist.?? Remember, keep calm….? Plan for border friction and make sure your systems are capable of meeting the challenge.?? We are with Customs and various Border Agencies for an all-day event on the 10th February, the message is : autonomy over alignment (not good for a comprehensive trade deal) and expect friction.?? Will update you after that meeting (assuming we don’t also see the return of the dreaded Government NDA!)
Whilst we are well placed to handle import and export Customs declarations, (UK, Ireland and rest of EU), we still have an issue with TRANSIT and will be working hard to prevent this potential banana skin.?? Transit is likely to be very important but it has the potential to create authentication queues in the UK.? We have the power to fix it, so our message to the Future Borders Group is….. help us fix it!?? You should be concentrating on being ‘border ready’ and never intending to approach the port to get your paperwork, that’s what the under-prepared will be doing and you don’t want to be there!?? We did a piece on transit with Sky news last year – it is still relevant and well worth a second watch.? https://news.sky.com/story/lorries-face-huge-queues-in-a-no-deal-brexit-industry-11684363?
Make sure you know your incoterms.? Make it job number one.?? On the whole, you don’t need to panic but be careful with ex works or delivered duty paid (remember, delivered may become delivered duty paid if the buyer is not so keen on paying the duty!).?? These are very common terms but have major draw-backs when it comes to (a) Customs representation, (b) VAT registration in the buyers country and (c) the duty itself (which might actually be less than you thought).?? You need to understand the implications of incoterms and how they apply to you.? Get in touch if you need some help, we’ve done webinars and many talks around the subject and have never failed to help.?