With a no-deal Brexit remaining a possibility and with under a month to go, time is running out to prepare for the VAT, Duty and Customs clearance issues businesses may face, in particular those that trade in goods with the EU. Here is a reminder of what you should be planning for now…
If the UK leaves the EU without a deal, UK businesses that import or export goods will need to apply the same procedures to EU trade that apply when trading with the rest of the world.
Under the current system, goods imported into the EU are only released from Customs if a full import declaration is made and any duty paid in full at the time of import.
There is a risk that, if you do not have the appropriate systems set up, there will be delays in delivery times and possible additional cost. You may therefore be behind the competition. If we leave without a deal these changes take effect from when we leave. If this is 31 October, as widely predicted, there is not much time left to make sure that you are prepared.
A recent survey has revealed that manufacturers panic stockpiled in March, as the UK headed towards a possible no-deal Brexit, it was this stockpiling activity that saw a 13-month high for the sector.
Manufacturers’ concerns regarding imports and exports being held up at the UK border led to raw materials and finished goods being purchased at the fastest monthly rate of any G7 country since 1992. This was all designed to create “buffer stocks” in their warehouses.
The services sector of the UK economy seems to have taken a very low profile, and pragmatic approach, to the pending question of whether the UK exits the EU under a negotiated deal or crashes out with no transition arrangement under World Trade Organisation (WTO) rules.
At the time of writing there is little more than a month to go to the planned EU Exit date of 29 March, yet there remains considerable uncertainty as to whether the UK will be leaving the EU with a negotiated deal or not, or even if the UK will be leaving the EU at all on that date as planned.