HMRC outlines ‘no deal’ preparations on importing from the EU

HM Revenue and Customs (HMRC) declares Transitional Simplified Procedures (TSP) for customs, should we leave the EU without a deal.

HMRC has written to 145,000 VAT-registered businesses trading with the EU about simplified importing measures and also updated them on the actions that they need to take to prepare.

TSP for customs will make importing easier for an initial period of one year, should we leave the EU without a deal, to allow businesses time to prepare for usual import processes.

Before businesses can use TSP for customs, they must register for an EORI number. UK businesses trading with the EU will need a UK EORI number to continue trading in the event that the UK exits the EU without a deal. Full instructions on how and where to get one can be found here.

Once businesses are registered for TSP, they will be able to transport goods from the EU into the UK without having to make a full customs declaration at the border and will be able to postpone paying any import duties.

These new measures condense the amount of information importers need to give in an import declaration when the goods are crossing the border.

They do this by giving a full declaration until after the goods have crossed the border and by paying any duty until the month after the import.

Mel Stride MP, the Financial Secretary to the Treasury, said “Leaving the EU with a deal remains the government’s top priority. This has not changed. However, a responsible government must plan for every eventuality, including a no deal scenario.

“Businesses and citizens should ensure they are similarly prepared for leaving the EU.  HMRC is helping businesses get prepared and, amongst other significant communications, has written 3 times to the affected businesses, each time stepping up the advice and encouraging them to take action.

“This latest letter, announces Transitional Simplified Procedures for EU trade which will ease the transition, especially for businesses new to the rules associated with importing.”

If tariffs apply to the goods that they import, and they want to use transitional simplified procedures, they will need to defer paying any import duties by setting up a direct debit.

For urgent help and advice trading with the EU or any other country after Brexit, please do not hesitate to get in touch.

Posted in Business.