On 23 August the UK government published 25 technical guidance notes giving advice about preparing for a No Deal Brexit. The UK is set to leave the European Union on 29 March 2019.
The below contains guidance from the HTA for if a No Deal Brexit should occur. A further 60 guidance notes are set for publishing in September.
The full guidance notes and other information is available through the UK and EU section on www.gov.uk.
UK Government Approach:
The technical guidance stresses that the UK Government firmly believes that a deal will materialise with the EU prior to 29 March.
However, it has published the guidance notes to allow people and businesses to start preparing should a deal not occur.
The guidance stresses the importance of the Northern Ireland border in the ongoing negotiations.
Trading with the EU:
- Importing from EU Countries
Those importing goods from EU countries would have to follow customs procedures in the same way as non-EU countries.
- Businesses must register for an Economic Operator Registration and Identification (EORI) number. This service is not in operation at present. Businesses that register with HMRC will have someone get in touch when the service is available. HTA recommends members to register with HMRC for email alerts through the HMRC section on www.gov.uk.
- Ensure contracts and terms and conditions reflect that the fact that the business is now importing.
- Consider how they will submit import declarations. This includes whether to use a customs broker, freight forwarder or logistics provider. If businesses decide to submit their own declarations they need software and authorisations from HMRC.
- Decide the correct classification for goods.
- Pay relevant VAT and import duties.
2. Exporting to EU Countries
- Businesses will have to register for an EORI number (see above).
- Export declarations will require submitting.
- An export licence will be necessary for certain goods.
Businesses involved in importing/exporting from/to the EU may wish to consider the advice available on www.gov.uk. This covers current processes for dealing with non-EU countries.
The UK will continue to have a VAT system. Government will introduce postponed accounting for import VAT on goods brought into the UK. Companies exporting goods to the EU will be able to zero rate sales.
Classifying Goods in the UK Trade Tariffs:
Trade with the EU will be on non-preferential World Trade Organisation (WTO) terms. This means Most Favoured Nation tariffs and non-preferential rules of origin will apply to consignments between the UK and EU. The UK Government states it will publish UK duty rates before we leave the EU, regardless of a No Deal Brexit.
The EU (Withdrawal) Act 2018 brings across the powers from EU Directives to UK legislations. This means UK workers will continue to be entitled to the same rights as at present.
Receiving Funding from EU-funded Programmes:
The UK Government has guaranteed any projects where funding agreements are in place before 2021 will be fully funded. This includes funding for Rural Development, Horizon 2020 and Erasmus+ Projects.
Eligible beneficiaries will receive payments under the terms of the UK Government’s funding guarantee. Domestic legislation is being prepared. This will require beneficiaries to meet the same standards as at present. The Agriculture Bill will legislate for England. The Devolved Administrations are also preparing legislation.
Government intends to establish an independent Trade Remedies Authority. This will investigate unfair trading and unforeseen surges in imports causing injury to industry.