UK Import Border Changes
News release from HM Government
News released from HM Government late yesterday confirmed that the UK import border will be in place with no easements by 1 Jan 2021.
The UK Import border arrangements are a change of direction. Deputy PM Gove held a meeting with heads of trade associations to tell them HM Government policy is to have a “hard” import border. No special arrangements, easements or special processes for EU trade until an electronic border can be made ready in 2025. Schemes announced to help trade in the event of a Day 1 No Deal Brexit in 2019 have been shelved (e.g. TSP/postponed VAT accounting).
- No easements or simplifications for 1 Jan 2021.Neither TSP or postponed VAT schemes previous announced will be activated.
- Assume security declarations (ICS) are required in addition to full import declarations from 1 Jan 2021.
- EU shipments will be processed in same way as rest of world today using routine border clearance procedures. Prepare now.
- Business must now get ready for full import process into UK on 1 Jan 2021, don’t expect simplifications.
- Grant scheme (training etc) extended to 2021
Change of Direction
To date preparation for post-Brexit for the UK side of the border with EU had been (somewhat) less problematic. HMRC had made their policy to prioritise trade flow over regulation. Government view now is there is 10 months to get ready so no easements are needed, get ready ! These decisions are the choice of the UK government. They are choosing to enforce routine processes at the borders as used for 3rd countries today, rather than allow business a relative free hand. UK traders have now been put on notice to prepare for the change of direction.
In conclusion, no change this year however for EU trade this is confirmation full import clearance will be the reality on 1 Jan 2021. From 1 Jan 2021 you need to plan for import declarations from the EU and Import VAT for EU origin shipments is now back in play,
VAT will be treated as it is today for rest of the world i.e. payable at import which could be a cash flow impact.
Get Ready !
Get your business ready for January 2021. Expect to have to declare imports and exports to Europe as you would to any other trading partner. If you need support or advice contact us here.
Our sister company Clearlight Brokerage offer a full range of declaration processing services. You can contact them here