BREXIT : PROGRESSIVE ADJUSTMENT UNTIL JULY 2021 FOR CUSTOMS REQUIREMENTS

The United Kingdom Tax Authority (HMRC) has issued guidelines on trade between the EU and the UK on the following issues («The border with the European union importing and exporting goods»[1]) to illustrate the discipline applicable to exchanges with the EU, as of 1 January 2021, which is based on a multi-stage approach.

In order to allow businesses to adapt to new policy changes and to implement the new customs procedures – also considering the impact of Covid-19 on the transition process – HMRC has differentiated the application of the new discipline into three-time phases, distinguishing the procedure according to the nature of the goods.

In particular, for the so-called “controlled goods” listed in the guide (including goods subject to excise duty, goods subject to sanitary and phytosanitary controls, medicines, etc.), the introduction in the United Kingdom will be subject to the fulfillment of certain additional requirements concerning the “core model” which affects the rest of the so-called “standard goods”.

For the latter, from January to July 2021, it will be possible to submit a deferred declaration within 6 months of the introduction of the goods, which will allow the simultaneous deferment of the tax payment.

From April 2021, however, checks will be stepped up on certain categories of goods (listed in Section 1.2.3, including plants and plant products), for which the presentation of documentation attesting to the quality and safety of the product and, in some cases, prior notification to the customs authorities of the introduction will also be required.

Subsequently, from July 2021, the system will be fully operational and imports into the UK will be subject to a full customs declaration and there will be a further generalized increase in controls. In addition, from this period, a dual customs clearance model is envisaged which, depending on the customs of entry, will allow the goods to be stored for up to 90 days (temporary storage model) or – when this is not possible – will require documentation to be forwarded to customs before the goods leave the EU territory (pre-lodgement model).

With the same guide, HMRC also intended to recommend that operators should be provided with the EORI GB code, which is necessary to do business with the UK and essential especially for e-commerce operators. This point is also essential for businesses making transfers of goods in the UK (e.g. deposit or loan accounts) and intersects with issues related to internal VAT profiles and direct taxation.

For customs operations, HMRC recommends the use of intermediaries to interface with the customs system and to apply for a duty deferral account which will allow the payment of the amounts due at customs once a month by direct debit.

For VAT, then, it will be possible to opt for deferred payment, with a different discipline depending on whether or not the trader is a “registered trader”.

It should also be noted that the VAT registration with HMRC will be managed on the basis of the value, above or below £135, of the shipment.

Finally, it should be recalled that as from 1 January 2021 the UK will apply its own erga omnes tariff with specific duties, except for any trade agreements which are not in sight to date.Lo scenario è in divenire ed oggetto di repentini aggiornamenti.

[1]https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/925140/BordersOpModel.pdf

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