The Government has announced that new customs and border controls for European Union (EU) goods imported into the UK will be introduced at the end of the Transition Period in stages in order to support businesses that are affected by the coronavirus pandemic.
It comes as the Prime Minister formally notified the EU that it will “neither accept nor seek an extension” to the Transition Period, which ends on 01 January 2021.
Under the new measures, the UK’s new customs regime and border controls on EU goods will be implemented in three stages up until 01 July 2021 to give businesses “more time to prepare”. The Government have set out the following timeline:
January: standard goods, such as clothes and electronics
Traders of these items will need to prepare for basic customs requirements, such as keeping sufficient records of imported goods and will have up to six months to complete customs declarations. Tariffs, meanwhile, will need to be paid on all imports, deferred until the customs declaration has been made.
The report adds that businesses will also need to “consider how they account for VAT on imported goods”.
April: animal and plant products
From April, the second stage of implementation will require traders of products of animal origin, such as meat, pet food, honey, milk and eggs, and regulated plants and plant products to provide pre-notification and the relevant health documentation.
July: all goods
Stage three concludes the full implementation of the new customs and borders model, requiring traders moving all goods to make declarations at the point of importation and pay relevant tariffs.
Michael Gove, Chancellor of the Duchy of Lancaster, said: “We have informed the EU today that we will not extend the Transition Period. The moment for extension has now passed. At the end of this year we will control our own laws and borders which is why we are able to take the sovereign decision to introduce arrangements in a way that gives businesses impacted by coronavirus time to adjust.
“Today’s announcement is an important step towards getting the country ready for the end of the Transition Period, but there is still more work to be done by both Government and industry to ensure we are ready to seize the opportunities of being a fully independent United Kingdom.”
Reanda UK is a subsidiary of leading independent accountancy firm Grunberg & Co Limited. Our aim is to help businesses and individuals to navigate the UK’s world-renowned business and tax infrastructure, and to support them with their international ambitions. To find out how we can help you, please contact us.