In the event of a ‘no deal’ Brexit
As you will know, there are still several possible outcomes for Brexit. However, we want to reassure you that whatever the end position turns out to be, we are confident that we will still be able to deliver our goods to you.
If the UK stays within the Customs Union, then nothing much should change. However, we could end up with a more distant trading relationship (so-called No Deal Brexit), which could come as soon as 1st November. The consequences of No Deal is what we are describing below and it is in preparation for this possible outcome that we need some information from you.
Key changes arising from No Deal Brexit
- The free movement of goods between the UK and the EU will end. You will be importing our goods and so extra Customs Procedures, import VAT and Duty will apply.
- Shipments will need to be registered with the authorities in advance and cleared to move before they can be exported from the UK and imported into the EU.
- For our deliveries, the details of shipment registration will be handled by the logistics company and 3rdparty clearance agents. However, in order for them to be able to do this we will need to give them some information which we need from you (see below).
- The “live” information for each load has to be exactly right. Therefore, your order will need to be frozen 3 days in advance of shipment so that the necessary paperwork can be properly prepared and registered. Unfortunately, this means that you will no longer be able to make any last-minute changes to loads or ask us to “max out” the vehicle at time of loading with stocked items.
- We will add the necessary extra product-specific information to our regular invoice. The key requirements are: commodity codes; rules of origin information; net weights and gross weight.
- We will also clarify on the invoice that our delivery to you is DAP (Incoterms 2010)
- If you currently organise your own transport and collect from us at Millom (Incoterm EXW), we strongly recommend that you change to DAP whilst things settle down. If you are certain that you want to continue with EXW, then please talk to us separately as we need to ensure that you have all the registration processes covered.
- We are currently talking to our hauliers about their level of preparation for No Deal. In the short-term, we may restrict the number of them who we deal with as, during the transition period, good communication will be very important.
- Since you will be importing goods, you will need a clearance agent to act for you in your country. This agent will be approved to register any VAT/duty payments that you need to make before the goods can be delivered. If you have imported goods from outside the EU before, then you will be familiar with this and you may already have an agent who you are happy with and whom you have already authorised to act on your behalf. If you do not have an agent already, then either you can organise one yourself or you can let us know that you want us to provide this service for you. If you want us to provide the service, then we will make sure that the haulier knows this as they will use their regular clearance agent for your country. Note: even if we provide the clearance service for you, you will still need to be contacted to authorise the payment of VAT at time of import (see below).
- A note on VAT and duty. Only a couple of our products are dutiable (Gripples, Centaur), so duty will probably not be something that needs to concern us much. With regard to import VAT, this depends on what your country’s government decides to do. You may have to pay VAT on arrival of the goods and claim it back later as part of your normal VAT return. However, we know that some EU countries are thinking of not bothering with imposing VAT at time of import on goods from the UK, in which case there would not need to be any special payments made. This will become clearer over time.
Information we need from you
- Tell us your EORI number. If you haven’t got an EORI number, then you need to request one urgently.
- If you have a Deferment Account*, please let us have the number.
- Confirm if you have an agent who you wish to use for import clearance processes. You will need to inform us in the future if you ever change your agent.
- Confirm your contact details for load clearance on import. This is either i) the details of your agent, or ii) the person in your company who can authorise payment of VAT. This contact needs to be accessible during normal working hours and you need to ensure that there is cover in place for holidays/absence. Note: this kind of contact is often made via email.
* A Deferment Account allows any import VAT and duty to be automatically added to a balance, which can be settled at a later date. There still needs to be a local clearing agent involved to register the import, but the Deferment Account removes the need for you to be contacted in real time to pay the VAT. If you haven’t got a Deferment Account and you think it would be useful for you, then you can apply for one from your tax authorities. However, there are various criteria that have to be met before they authorise one.
We hope that the above is clear, but if you have any questions at all about the changes and what you need to do, then please let us know by emailing email@example.com or calling on +44 (0) 1789 778766.
You can also find out any specific arrangements in your country here: https://ec.europa.eu/info/brexit/brexit-preparedness/national-brexit-information-member-states_en