Brexit and Customs: What Does It Mean?

Currently, the word ‘Brexit’ said in the majority of situations brings about an orchestra of groans and sighs. Large proportions of the public are fatigued by the discussion and have had their minds run ragged by the uncertainty surrounding the concept. Nevertheless, it is something to be addressed, as the deadline of 29 March 2019 looms.

The UK’s exit from the EU will impact on the haulage and logistics industry, particularly those sectors that move their own products internationally. Regardless of whether or not a deal is entered into between the UK and the EU, there will still be notable changes at the border between the two entities.

Operators who import the materials to manufacture their products and export those products via road freight will begin to feel pressure from HM Revenue and Customs (HMRC) to be compliant with customs procedure. There will be an increase of administration taking place at customs ports and businesses will have to commence establishing how much they are to pay in import duty from the EU.

‘No Deal’ Brexit
Exiting the EU without a deal in place will see the UK fall back onto a different import and export procedure when trading with the EU block. This procedure is the procedure for trade with ‘Third Countries’ and requires heavy regulation of customs compliance from the importer and/or exporter of the goods in question.

Operators will see the rise of the Single Administrative Document (C88) and encounter the processes in operation at ‘Non-Inventory Linked’ Ports. The system itself is heavily based in hardcopy format. In such a framework, it is important that operators exporting their own goods are aware of the correct tariff categorisation and valuation of their products to facilitate frictionless movement across the border.

Businesses and companies could find themselves the subject of scrutinising audits from HMRC and facing a tribunal if they do not take legal advice in advance regarding the compliance of their operations.