We are only a few days away from Brexit and still the only way to prepare is for the worst version of it: The hard Brexit.
The European Commission published a checklist with tips for traders on their website. Follow this checklist and read all the information that might be applicable for your company doing business with the United Kingdom. Of course, the following information is already known but it can do no harm to mention it again.
Brexit will affect your company if…
- … it sells goods or supplies services to the UK, or
- … it buys goods or receives services from the UK, or
- … it moves goods through the UK.
What does this mean?
Without a transitional period (as tabled in the Withdrawal agreement) or a definitive arrangement, trade relations with the UK will be governed by general WTO rules, without application of preferences, as of March 30, 2019.
This means in particular that:
- Customs formalities will apply, declarations will have to be lodged and customs authorities may require guarantees for potential or existing customs debts.
- Customs duties will apply to goods entering the EU from the United Kingdom, without preferences.
- Prohibitions or restrictions may also apply to some goods entering the EU from the United Kingdom, which means that import or export licenses might be required.
- Import and export licenses issued by the United Kingdom will no longer be valid in the EU (EU27).
- Authorizations for customs simplifications or procedures, such as customs warehousing, issued by the United Kingdom will no longer be valid in the EU (EU27).
- Authorized Economic Operator (AEO) authorizations issued by the United Kingdom will no longer be valid in the EU (EU27).
- Member States will charge VAT at importation of goods entering the EU from the United Kingdom. Exports to the United Kingdom will be exempt from VAT.
- Rules for the declaration and payment of VAT (for supplies of services such as electronic services), and for cross-border VAT refunds will change.
- Movements of goods to the United Kingdom will require an export declaration. Movement of excise goods to the UK may also require an electronic administrative document (eAD).
- Movements of excise goods from the United Kingdom to the EU (EU27) will have to be released from customs formalities before a movement under Excise Movement and Control System (EMCS) can begin.
What you should do!
All businesses concerned have to prepare, make all necessary decisions, and complete all required administrative actions, before March 30, 2019 in order to avoid disruption.
Follow the checklist for traders and get to know which practical steps you need to take as soon as possible to be prepared.
We will keep you informed about updates on the Brexit developments. Keep an eye on our website or subscribe to our monthly newsletter! More practical information can be found on the European Commission website.