US West Coast Port Situation

Brexit-Update: What you need to know

While the trade negotiations between the UK and the European Union continue to make slow progress, the month of June provided the last opportunity for the British government to extend the transitional period, which is currently limited to 31 December 2020. With no request for extension having been made, the focus is now on a gradual introduction of customs controls in the United Kingdom from January 1, 2021. The transition period is designed to allow traders to recover from the effects of COVID-19 and prepare for the new requirements. The United Kingdom will be subject to full customs control at its borders by 1 July 2021.

Earlier this year, the UK government took steps to eliminate certain customs facilitations, including the Transitional Simplified Procedures (TSP) and the Import VAT (PVA) shift. However, the British government has recognized that customs relief will also be necessary, at least temporarily, on January 1, 2021.

Thus, the possibility of shifting the import turnover tax is to be reintroduced. In addition, for a transitional period, there will be a customs procedure which will allow the imported goods to be declared by entering them in the accounts within a period of six months, rather than immediately upon importation. This procedure is called "Deferred Declaration".

An EU summit meeting for final talks between Great Britain and the EU will take place from 17 to 18 October 2020. Finally, on 19 October 2020 the results of a "deal or no-deal" scenario should be available. 

Regardless of the outcome of the talks, it is expected that from January 2021 onwards all goods exported to and from the UK will require tariff treatment, albeit during the transitional period described above as part of a process graduated by product group.

The following link will take you to a tool that outlines the required measures: https://www.gov.uk/transition

The UK government has also published details of preparation as an importer and exporter from/to the UK, which can be viewed via the links below: 

https://www.gov.uk/prepare-to-import-to-great-britain-from-january-2021

https://www.gov.uk/prepare-to-export-from-great-britain-from-january-2021

Further information can be found in the download document below.

If you have any further questions, please do not hesitate to contact your local contact at the relevant DACHSER branch.

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