Brexit and Customs Declarations
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As Brexit looms closer and closer, companies are preparing themselves for this change. As we approach the final days of negotiations for a deal between the UK and the EU, companies could feel a bit at sea, wondering what a deal or no deal will mean to their business. Companies will face significant changes and disruption to their day –to day work. On the 1stJanuary 2021, the UK will be deemed a “third country”.
One item that will not change whether a deal is done or not is that every shipment will have to have a customs declaration. Red tape is about to get bigger for companies exporting to the UK and companies using the UK as a “land bridge” to the EU. Regardless of any deal, there will be checkpoints between the UK and the EU.
A customs declaration is used to import and exports goods from non EU countries. It is lodged by either the company or the agent on its behalf. In the document, it states who is shipping and who is receiving the goods. It needs to state what the goods are, where the goods have come from, where the goods were made, how much the goods cost and the currency used.
Whoever completes the declaration is responsible for its validity, whether that is the company itself or its agent. Hence care needs to be taken when submitting this document and if using an agent, a company needs to give accurate details otherwise they could risk getting their goods stopped and refused entry, and possibly even being put on on “blacklist”.
The customs declaration advises customs on what is being moved and enables customs to look at the goods to assess whether they are a risk or threat.
UK Companies shipping to Northern Ireland will also need a customs declaration. However Irish companies shipping to Northern Ireland will not need a customs declaration.
All companies shipping to the UK will need an EORI number and on the positive side of things, the majority of Irish companies have applied for this number. Probably the biggest challenge for most companies will be the administration. Ireland currently does 1.6 million declarations per year and it is estimated that it could increase to 20 million per year. If a company decides to do these customs declaration in-house, it could be an administrative nightmare and if they decide to outsource it, a definite increase in the cost of sales.
Companies that use the UK as a land bridge to ship goods to the EU will require a customs transit declaration. “The shipment will require interaction with offices of departure and destination in the EU and with Office of Transit in the UK. Transit goods may be subject to control, leaving and re-entering the EU. Goods in transit are required to provide a financial guarantee to the authorities of the country through which they pass.”https://www.prepareforbrexit.com/insights/customs-brexit/
However, IT will enable to make exporting to the UK slightly easier as the Irish Revenue has introduced a system for shipments coming in off the ferries. A company exporting from UK mainland to Ireland has to send, once it has booked or checked-In with a ferry company, a pre-boarding declaration of what the shipment contains. If a company has not submitted this declaration, the truck will not be able to board. The same process is applicable to Irish companies shipping by ferry to the UK.
This process allows Revenue time to approve customs declarations as quickly as possible. Thirty minutes before arrival in Ireland, truck drivers can check on-line to see if they have been given the green light and can go through the “fast track” green lane at the port.
To a great degree, the customs implications of Brexit are largely unaltered by the type of final deal between the EU and the UK. The basic regulations and procedures will be mostly similar whatever are the precise features of the final agreement.
Contact : sales@openventuresconsulting.com to discuss your exporting requirements.