Uncertainty surrounding the outcome of the trade deal with the European Union means we must make sure that we are prepared for every eventuality. To make things a little simpler we have broken down what you can expect to see after the 1st January 2021.
When Will We Know the Outcome of Brexit?
On the 1st February 2020, the UK entered the transition period. This means that we had one year to complete negotiations and secure a trade deal with the EU. By 26th November, we will know if we are leaving the EU with a trade deal or if we are going to be faced with a hard Brexit. Whilst both outcomes differ significantly, both still mean custom formalities.
Our new customs authority will be the World Trade Organisation (WTO) and unless we agree a trade deal with the European Union, we will have to follow their rules regarding trade and movement of goods.
What Will Change on the 1st January 2021?
One of the biggest changes will be regarding customs paperwork and declarations.
We know that import, export and safety & security declarations will be needed to move goods between the UK and the EU. All goods entering and leaving the UK must have a filed customs declaration and be customs cleared.
Many companies who currently trade with Europe have no experience or knowledge about customs and one of the biggest concerns is that businesses will be unprepared for the changes. This could result in huge queues at the ports and possible disruption to the movement of goods.
We will no longer have freedom of movement within Europe and this means that any company that wants to continue to trade within the EU will have to apply for an EORI (Economic Operator Registration and Identification) number. This is essentially a customs identity document and is used when information is exchanged between customs offices.
What About Trade Agreements?
We will start to formalise new trade agreements with countries both inside and outside of Europe following the transition.
Once a trade deal is finalised, legal requirements regarding customs could change, which means that it is important businesses are informed about the changes.
How Can CustomsLink Help?
Getting to grips with customs requirements in 2021 could be incredibly difficult. There is a lot that we won’t know until we know what the ‘divorce agreement’ between the UK and the EU is.
CustomsLink makes the entire process simpler and can prepare you for the customs formalities that we do know will be happening. Our digital, online platform is the smart solution for all your customs processes. A step by step process that guides you through the completion of your declaration regardless of your knowledge of customs.
Let us help you get a handle on customs!