VAT-registered businesses that trade with the EU and/or the rest of the world have received a letter from HMRC urging them to prepare for the changes taking place from 1 January 2021.
The letter, sent by the Directors General, Border and Trade, emphasises the need for all the correct processes, contracts, and agreements to be in place in order to trade with the EU from 1 January 2021.
What will change?
If a business sends goods from Great Britain to customers in the EU, they will be responsible for completing export declarations for those goods.
If a business import goods from the EU into Great Britain that are not on the controlled goods list and they have a good compliance record, there is the option to defer declarations for up to 6 months. However, records of everything imported must still be kept. Those with a poor recent compliance history will not be able to defer declarations.
Therefore, from 1 July 2021, all businesses moving goods will have to make declarations and pay relevant tariffs at the time the goods are moved.
Assistance in making declarations
HMRC advises that ‘Import and export declarations are complicated, requiring specialist skill, knowledge and IT, including government authorisations.’ They advise contacting companies such as freight forwarders or fast parcel operators who can assist with the required documentation as soon as possible.
More information about hiring someone to deal with customs for you, and for a list of businesses that assist can be found here.
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