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General

Brexit transition period to end on 31 December 2020 (GEN – 1124.00)

16 June 2020

2 min read
Brexit
General

Brexit transition period to end on 31 December 2020 (GEN – 1124.00)

16 June 2020

2 min read

GEN – 1124.00. Following the meeting of the EU-UK Withdrawal Agreement Joint Committee on Friday, 12 June 2020, the United Kingdom has formally notified the European Union that it will neither accept nor seek any extension to the current Transition Period ending on 31 December 2020.

UK getting ready for the end of the transition period

In order to give businesses the necessary time to prepare, the UK Government is introducing border controls in 3 steps for EU goods imported into Great Britain.

From January 2021

Traders importing standard goods, covering everything from clothes to electronics, will need to prepare for basic customs requirements, such as keeping sufficient records of the imported goods. They will have up to six months to complete customs declarations. Where tariffs need to be paid on the import, payments can be deferred until the customs declaration has been made. Businesses will also need to consider how they account for VAT on imported goods. There will be physical checks at the point of destination or other approved premises on all live animals and plants.

From April 2021

All products of animal origin all regulated plants and plant products, will also require pre-notification and the relevant health documentation.

From July 2021

Traders moving all goods will have to make declarations at the point of import and pay the relevant tariffs. Full Safety and Security declarations will be required.

To help handle the expected 200 million extra customs declarations, the UK Government has developed a new £50m package to boost the capacity of customs intermediaries such as customs brokers, freight forwarders and express parcel operators.

Additionally, the UK Government has committed to building new border facilities in Great Britain for carrying out required checks, such as customs compliance, transit and Sanitary and Phytosanitary checks, as well as providing targeted support to ports to build new infrastructure.

Consequences in the EU

The UK is a third country without a free trade agreement with the EU. Export to and import from the UK will be treated the same way as with other similar third countries like the USA, China or Russia.

This means that administrative formalities must be settled. Even though many of these formalities can be settled online, it should not surprise anyone that some of the procedures may take up to 6 months.

Recommended Actions

Members who have not yet done so, are urged to check the recommended actions outlined in GEN – 1118.00.

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