As part of its preparation for the potential situation of a ‘No-Deal’ Brexit, the Government has announced a simplified system for UK-based businesses that import from the EU.
HMRC’s Transitional Simplified Procedures (TSP) for customs will make importing from the EU easier for UK businesses, these procedures will be introduced on 29 March 2019 in the event of a ‘No-Deal’ Brexit and will be reviewed after 3 to 6 months. If withdrawn, a 12 month notice period will apply. This will give businesses time to prepare for the import processes that will replace the transitional procedure.
Once businesses have 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. They should also be able to postpone paying any import duties.
There will be a slightly different procedure for businesses which deal with controlled goods such as alcohol or tobacco.
Commenting on the announcement, the Treasury Minister Mel Stride said that, while leaving the EU with a deal remains the Government’s top priority, it is planning for every eventuality.
According to Mr Stride, the new procedures reduce the amount of information importers need to give in an import declaration when goods are crossing the border.
He added that, if tariffs apply to the goods they import, and the business wants to use simplified procedures, it may need to defer paying any import duties by setting up a direct debit.
HMRC is also reminding businesses to get an Economic Operator Registration and Identification (EORI) number, as this is crucial to be able to trade if the UK leaves the EU with ‘No-Deal’.
Julian Borley, Director at Milsted Langdon, said: “If you are unsure about the steps your business will need to take in respect of VAT, it is important that you seek specialist advice. Contact our experts at Milsted Langdon today, to find out how we can help your business.”