TOP SIX ACTIONS THAT BPMA MEMBER COMPANIES SHOULD BE TAKING NOW TO PREPARE FOR A POSSIBLE BREXIT NO-DEAL SCENARIO
1. Apply for a EORI Number:
If the UK leaves the EU without a deal, companies need a UK EORI number to continue trading with the EU after 29 March 2019. To apply for a EORI number simply fill in the correct form on the HMRC website. The application form you fill in depends on whether you are a) registered for VAT, b) not VAT-registered and you’re exporting or c) not VAT-registered and you’re importing. Your EORI number will be issued by email, usually within 3 working days.
2. Map and Audit Supply Chains:
Consider the impact of a no-deal on your role in supply chains with EU partners. In a no deal scenario, trade with the EU will be on non-preferential, World Trade Organisation terms. This means that Most Favoured Nation tariffs and non-preferential rules of origin will apply to consignments between the UK and EU. Discuss Brexit readiness with your critical trading partners and ensure they have contingency plans in place. It is also worth considering alternative transit arrangements in case your existing transport routes become blocked or bottlenecked.
3. HTS Classification:
To import and export goods, you will need an HTS classification for every product. This will determine the duty rate paid at import. HTS codes can be found here. Check the description carefully against the goods you are moving.
4. Duty payments:
If you already have a deferment account with HMRC, check that you have an adequate level of guarantee. Consider that all goods coming from the EU will now incur duty. If you do not have a deferment account, consider obtaining one. A deferment account will allow you to defer your payment of duty and import VAT to the end of the month. You defer the payment to your account and HMRC will then take the payment for the whole month on the 4th day of the following month. You will need a bank guarantee to cover the average duty and Import VAT payable in a standard month.
5. Register for TSP:
Transitional Simplified Procedures will reduce the amount of information you need to give in an import declaration when the goods are crossing the border. They do this by allowing you to defer giving a full declaration and also paying any duty. Register here
6. Manufactured Goods – Regulatory requirements after Brexit :
Guidance for businesses on the regulatory requirements for placing goods on the UK and EU markets after the UK leaves the EU can be found at Manufactured goods: regulatory requirements after Brexit
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