Possible Consequences
In the event of no-deal Brexit, the UK will become the third country with respects to Export and imports into the EU.
The UK will become a third country as there is no trade agreement and the merchandise imports, therefore will be subject to the Tariff schedule that EU has registered with the World Trade Organisation. Also, the EU Vat scheme will be no longer valid which means VAT has to be paid in the UK for importing goods. VAT will be levied as well as customs duties while customs clearance will be in force.
Import and Export Declaration
| EXPORT | IMPORT |
| WHEN EXPORTING TO A THIRD COUNTRY, THE GOODS NEEDS TO BE DECLARED TO THE CUSTOMS AUTHORITY OF THE COUNTRY THE GOODS WILL LEAVE. | WHEN IMPORTING FROM A THIRD COUNTRY, THE GOODS NEEDS TO BE DECLARED TO THE CUSTOMS AUTHORITY OF THE RECEIVING COUNTRY. |
Customs procedures/ Customs Clearance
Companies can send parcels to an EU country and have them customs cleared in the destination country.
In this process, the importer (recipient) of the parcel will pay VAT, customs duties and handling fee.
All parcel will need to bear the customs document depending on the value of the item. A commercial invoice (with copies) is required as customs clearance is required upon receipt of the goods.
Customs Documents
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EXPORT DECLARATION: DOCUMENT |
IMPORT DECLARATION: DOCUMENT |
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How to Calculate Customs Duties
- The Value of the goodsCustoms duties and Value-added Tax (VAT) are calculated based on the value of the goods.The value declared on the customs declaration form and the commercial invoice should tally.
- The customs tariff to be applied
When importing goods to the UK at the relevant rate of VAT for the goods in question (the standard UK VAT rate is currently 20%) and the Govt in the UK has put in place a Tariff Scheme- Check the UK Global Tariff here
- Check the UK Global Tariff here
- The origin of the goods
Preferential origin is granted on goods from particular countries which have fulfilled certain criteria allowing preferential rates of duty to be claimed.
Seizure and Penalty
Customs officers have the power to seize goods and subject to a penalty in case of misdeclaration, inaccuracy in the paperwork submitted for customs clearance.
VSL can provide advice and assistance to their valued customers upon agreement to appoint them of a Customs Clearance Agent to act as a Direct Representative.
Official links to get started
- Get your EORI number here.
- Validate your EORI number here.
- Search for your commodity codes here.
- Learn more about the conditions for zero VAT rate here.
- Register for NES here.
- Download the form to access CHIEF here.
Know more in detail about How to export goods from Great Britain into EU countries from January 2021
