Brexit Blog: Business Export Advice
Richard Morley of Grant Thornton UK urges businesses who trade with the EU to prepare for Brexit
Economic Operator Registration and Identification (EORI) number:
If the UK leaves the single market or the EU Customs Union, UK businesses will need an UK EORI number to trade goods with the EU. The type of application will differ depending on whether the business is VAT registered, not VAT-registered and exporting, or not VAT-registered and importing.
After applying, the EORI number will be sent via email within 3 working days. However, because of the increased number of applications due to Brexit you should not delay. Businesses must contact the EORI team at HMRC if details of the business change.
Transitional Simplified Procedures (TSP):
HMRC has recently produced guidance introducing Transitional Simplified Procedures (TSP) for Customs, to attempt to make importing easier for the initial period after the UK leaves the EU should there be no deal. Under the usual import process, goods will not be released from Customs, until a full import, declaration is made, and any duty and import VAT is all paid.
Businesses will be responsible for making customs declarations for UK-EU trade in a no deal scenario, either themselves or through a customs agent. HMRC is introducing new Transitional Simplified Procedures (TSP) for Customs, to make importing easier for the initial period after the UK leaves the EU, should there be no deal. Under the usual import process, goods will not be released from Customs, until a full import declaration is made, and all duty is paid.
To be able to apply for TSP, a trader has to have an UK EORI number. The link to apply is below:
https://www.tax.service.gov.uk/submissions/form/transitional-simplified-procedures/Are-you-legally-established-within-the-United-Kingdom?n=0&se=t
The introduction of TSP is to make importing through the Channel Tunnel and roll-on roll-off (RoRo) locations, like Dover-Calais easier for a period after the UK leaves the EU should there be no deal. TSP will remain in place for at least a year to give enough time to prepare your businesses to follow the import processes you will need for trading with the rest of the world. TSP will be reviewed 3 to 6 months after 29 March 2019.
Once you are registered for TSP, if you are not importing controlled goods as per the TSP rules, then you are required to make a Customs declaration within your commercial records when the goods are imported. The trader will be required to submit a supplementary declaration to HMRC by the fourth working day of the following month that the goods were imported into the UK. HMRC will then take the direct debit on the 15th of the month after the goods arrived in the UK.
Duty Deferment Account:
We advise that businesses set up a duty deferment account to defer their duty costs. Businesses must have a duty deferment account to use TSP after 30 June 2019.
Requesting proof of Origin:
It is important for businesses to have all the documents available to portray the origin of goods, including origin statements on invoices from suppliers. This will help to be able to respond to requests regarding the origin of goods when they are traded along the supply chain. This will be particularly relevant when trading in relation to any Free Trade Agreements that the UK is a participant of.
Richard Morley is a Manager at Grant Thornton UK
