Lawyers Say Letter A Welcome Reminder Of Steps To Be Taken Before End Of Transition Period

As HMRC sends letters to VAT registered businesses explaining what they need to do in order to continue moving goods between Great Britain and the EU from 1 January, 2021, lawyers at Irwin Mitchell have welcomed the importance of outlining the key steps businesses need to take.

Regardless of any trade deal agreed between the UK and the EU, a full external border will be in place between the two for the import and export of goods categorised as ‘controlled’ from the start of 2021 and, as stated in the HMRC letter, businesses must:

• Have a UK Economic Operator Registration and Identification (EORI) number
• Decide how they will make customs declarations
• Check if their imported goods are eligible for staged import controls

While there will be a six month grace period on filing some customs declarations and payments, in order to give businesses time to adjust and reduce delays, certain details will need to be in place from 1 January.

The letter follows recent reports that a Kent Access Permit may also be required for hauliers making for the EU and that the rules surrounding access to the county are likely to be enforced.

Expert Opinion

“Regardless of any deal with the EU, some of these rules are going to be in force from day one. With some reports suggesting just one in four businesses are fully ready for trade post Brexit, there is a real fear that in dealing with the fallout from the Covid-19 lockdown, some businesses may not have had the bandwidth to tackle their Brexit arrangements too.

“The new border controls will be introduced in stages, and customs declarations for non-controlled goods will have a six month grace period. It’s important this time is used as an opportunity to ensure businesses continue to run smoothly once the new rules come into force.

“It’s not too late to seek advice, but everyone needs to understand that they must have their arrangements in hand if they intend to continue moving goods between Great Britain and the EU from January 2021.” Sarah Cardew - Partner