Making sure you are prepared for the end of the transition period is what we do! Today we are going to discuss the third banana skin lurking in the shadows - transit guarantees.
What is a Transit Guarantee?
A transit guarantee, also known as a customs comprehensive guarantee, is a guarantee that will enable you to cover Customs Duty, excise duty and import VAT.
Do I Need a Transit Guarantee?
If you are exporting goods, you may be under the impression that you are not going to be liable for any of the duties following the end of the transition period on 1st January 2021. However, that may not be the case.
If you are attempting to export goods under transit conditions, meaning that the first country that they arrive in (after travel on road or by sea) is not their final destination, the exporter will be handed responsibility for the import duties until the transit procedure is closed. This will take place at the transit/customs office in the same country as the final destination of the goods.
In order for an exporter to cover the liability for the duties, they will need to apply for a transit guarantee.
How Do I Apply for a Transit Guarantee?
To apply for a transit guarantee, your business will need to be established within the UK or the EU. Depending upon the type of business you own, you will need to be a company official (e.g. company director), sole proprietor, trustee or a partner.
If you’ve been following our Brexit Banana Skins series closely, you will know that we have already touched upon IncoTerms and Transit/Customs Offices. You can find articles on those topics and other customs-related material on our blog.
We are only six weeks away from the end of the transition period. Don’t leave everything until the last minute - you will not have time to get everything ready.