Transitional Simplified Procedures (TSP) for customs will make importing easier for an initial period of one year should the UK leave the EU without a deal, HM Revenue & Customs (HMRC) has announced.
In a letter to businesses, the regulator sets out the actions and changes organisations need to be prepared for in the event that the UK fails to strike a trading agreement with the EU.
According to the report, the changes are likely to affect around 145,000 VAT-registered businesses who currently trade with the EU.
HMRC said TSP for customs will remain in place for more than a year to give businesses time to prepare to use the full customs processes that already apply to imports from non-EU countries.
It will enable businesses to transport goods from the EU into the UK without having to make a full customs declaration at the border, as well as postpone paying any import duties.
Before businesses can use TSP for customs, they must register for an EORI number, as mentioned above. UK businesses trading with the EU will need a UK EORI number to continue trading in the event that the UK exits the EU without a deal. Full instructions on how and where to get one can be found here.
Commenting on the report. Treasury Minister Mel Stride said: “Leaving the EU with a deal remains the government’s top priority. This has not changed. However, a responsible government must plan for every eventuality, including a no deal scenario. Businesses and citizens should ensure they are similarly prepared for leaving the EU.
“HMRC is helping businesses get prepared and, amongst other significant communications, has written 3 times to affected businesses, each time stepping up the advice and encouraging them to take action.
“This latest letter, and new GOV.UK guidance, announces Transitional Simplified Procedures for EU trade which will ease the transition, especially for businesses new to the rules associated with importing.”
Do you need advice on trading after Brexit? Get in touch with the team at Reanda UK today.