The UK’s HMRC has released guidance to advise exporters trading with the EU in the event of a ‘no deal’ Brexit (4 December). In this ‘unlikely’ scenario, from the date of exit, 29 March 2019, ‘many UK businesses will need to apply the same processes to EU trade that apply when trading with the rest of the world.’
HMRC has set out a checklist for businesses in its guidance. It has also sent a letter to 145,000 VAT-registered businesses that trade only with the EU, explaining changes to customs, excise and VAT, and setting out the preparations that should be made.
The checklist states that in the event of ‘no deal’ businesses should:
- Obtain an Economic Operator Registration and Identification (‘EORI’) number
- get software or an agent to make declarations
- check if a licence is needed to import or export the goods. A licence is always needed to import or export:
- military and paramilitary goods
- dual-use and technology
- plants and animals
- medicines and chemicals
- classify the goods: find out the commodity codes that apply so export declarations can be filled in accurately
- apply the right customs procedure code, which identifies the correct customs and excise
- in the case of imports, make a safety and security declaration before the goods arrive in the UK
- pay customs duty on goods. The value of the goods needs to be ascertained to work out the level of customs duty to apply.
HMRC’s letter to businesses can be found here:
HMRC’s guidance dated 4 December can be found here: