We at Banks & Lloyd felt it was best to remind everyone about preparing for a no-deal Brexit following recent developments regarding the UK’s progress, or lack thereof, on Brexit. In light of recent events it does seem a lot less likely of a no-deal happening, particularly with a parliamentary vote ruling it out, however with no extension to the current deadline agreed we stand in a very real position of leaving the EU by default on the 29th of March with no continuing or new agreement in place. With this is mind, we now also understand much better what a no-deal Brexit actually looks like, thanks to the release of documentation from the HMRC, particularly when it comes to importing goods both from within the EU and globally.

In a nutshell, the UK will see 87% of Global imports (EU inclusive) become tariff (Duty) free. 100% of imports from the EU are currently tariff free, but following a no-deal outcome, this would drop to approximately 82% of imports, meaning 18% of what we currently import from the EU will have a tariff applied to them. This is on top of the additional bureaucracy and processes to getting the goods into the country, tariff or not. On the flip side however, imports outside the EU will see a reduction in the number of tariffs applied, with 92% to become tariff free, up from the current 52%. We have listed below as best we can what we deem to be the most important points that have been detailed by the HMRC.

*Disclaimer*
Due to the nature of Brexit and how the information is being provided, the last-minute nature of the decisions being made within the government and that the information has a habit of constantly changing in rapid succession, Banks and Lloyd cannot be held liable for any inaccuracies regarding the below.

 

NO DEAL BREXIT BREAKDOWN INFORMATION FOR IMPORTERS

  • Even though the new tariffs may result in 0% Duty and deferred VAT, a customs declaration must be made on all imports into the UK. This can be:
    • A standard clearance
    • A simplified procedure
    • A specialist entry
  • The new tariffs will apply as of the 11pm GMT 29/03/2019, regardless of whether your goods have already started their journey to the UK. If they are not in the UK before this date, then the new rules will apply on arrival.
  • It was decided some time ago that in the case of a ‘no deal Brexit’ import VAT must be declared and calculated, but will be paid and /or accounted for as part of the process of your periodic VAT return rather than at the time of importation.
  • Duties, if applicable, must be declared and paid on arrival *unless following TSP (Transitional Simplified Procedures). The TSP process only relates to Road Freight at the specific Road Freight/RORO ports (Dover, etc).
    • Many of the new Duty rates will be 0% but there remain many commodities which will be or remain subject to Duty. Please check with our office in relation to the commodities which apply to your business: Some examples are as follows:
      • Certain Ceramic Tiles – 5%
      • Other Ceramic Tiles – 0%
      • Slate – 0%
      • Stone – 0%
    • It is currently our understanding that, with exception of GSP, GSP+ or LDC nations, Duty rates will be applied on a global basis. For instance, the Duty rate for a commodity may be 5% and that would then apply to imports from Brazil as well as from Spain.
    • Some 87% of the commodities will be re-set to 0% with only 13% of commodities remaining subject to Duty.
    • We believe arrangements regarding Anti-Dumping Duty will remain in place for the foreseeable.

We understand that the event of a no-deal Brexit may have serious implications on your supply chain management, particularly if you import from the EU and/or your main trade falls within a commodity that would be subject to Duty going forward. With many invaluable years of experience in global freight forwarding under our belt, we can help to minimise any impact by looking at every option available when moving your goods.

If any of the above affects yourself and would like to seek further advice, or if you find yourself not knowing how to move forward with the movement of your goods, then please do not hesitate to contact us using the form provided below or by contacting us on +44(0)1625 441 221 and requesting to speak to our dedicated Brexit team.

With the ever-changing nature of Brexit, we would advise keeping yourself up to date as much as possible. You can do that one of two ways with ourselves, by signing up to our BREXIT specific newsletter, which you can do here

Or by following us on Linkedin – 

AEO