Border controls for EU goods imported into Great Britain will be introduced at the end of Transition Period in stages to give businesses affected by coronavirus more time to prepare.
At a glance
- New GB border arrangements confirmed for next year as the UK formally notifies the EU that it will neither accept nor seek any extension to the Transition Period.
- Border controls for EU goods imported into Great Britain (GB) will be introduced at the end of Transition Period in stages to give businesses affected by coronavirus more time to prepare.
- New GB border infrastructure to carry out checks and £50million of grants to accelerate growth of the UK’s current customs intermediaries’ sector.
New border controls and procedures confirmed for 2021 as the Chancellor of the Duchy of Lancaster, Michael Gove, formally notifies the EU that the UK will neither accept nor seek any extension to the Transition Period.
From 1 January 2021 the UK will have the autonomy to introduce its own approach to goods imported to GB from the EU.
Recognising the impact of coronavirus on businesses’ ability to prepare, and following the announcement in February that the UK would implement full border controls on imports coming into GB from the EU, the UK has taken the decision to introduce the new border controls in three stages up until 1 July 2021. This flexible and pragmatic approach will give industry extra time to make necessary arrangements. The stages are:
- From January 2021: Traders importing standard goods, covering everything from clothes to electronics, 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. While tariffs will need to be paid on all imports, payments can be deferred until the customs declaration has been made. There will be checks on controlled goods like alcohol and tobacco. Businesses will also need to consider how they account for VAT on imported goods. There will also be physical checks at the point of destination or other approved premises on all high risk live animals and plants.
- From April 2021: All products of animal origin (POAO) – for example meat, pet food, honey, milk or egg products – and all regulated plants and plant products will also require pre-notification and the relevant health documentation.
- From July 2021: Traders moving all goods will have to make declarations at the point of importation and pay relevant tariffs. Full Safety and Security declarations will be required, while for SPS commodities there will be an increase in physical checks and the taking of samples: checks for animals, plants and their products will now take place at GB Border Control Posts.
The announcement follows this morning’s meeting of the Withdrawal Agreement Joint Committee – the last formal moment to agree an extension to the Transition Period – at which the Government confirmed the long-standing position that no such extension would be sought.
A new £50million support package will boost the capacity of the customs intermediary sector – including customs brokers, freight forwarders and express parcel operators – providing businesses with further support ahead of the new processes taking effect in July 2021. This funding will support intermediaries with recruitment, training and supplying IT equipment to help handle customs declarations. Rules will also be changed to remove barriers for intermediaries taking on new clients.
In total, the Government has now provided £84m to grow the customs intermediary sector to encompass EU trade after 2020.
Additionally, the Government has committed today to building new border facilities in GB for carrying out required checks, such as customs compliance, transit, and Sanitary and Phytosanitary (SPS) checks, as well as providing targeted support to ports to build new infrastructure. Where there is no space at ports for new infrastructure, the Government will build new inland sites where these checks and other activities will take place. The Government is consulting with ports across the UK to agree what infrastructure is required.
Commenting on the government’s new proposed processes for moving goods from the UK to the EU from January 1st 2021, published today, BCC Director General Dr Adam Marshall said:
“With full border controls in place at all ports from January 1st next year, regardless of any deal that is agreed with the EU, and an estimated 200 million more declarations needed to be made by traders annually, firms that import and export to the EU should take action now and prioritise the appointment of customs intermediaries to advise on the next steps.
“It is pleasing to see the government listening to the Chamber network and reintroducing Postponed VAT Accounting, as well as allowing the deferment of duty and VAT on EU imports for at least 6 months from January 2020. And many businesses will appreciate the introduction of bond-free duty deferment accounts, which will provide much needed help to cashflow for businesses and reduce import costs.
“While businesses will welcome more detail on processes for trading goods overseas, some questions still remain unanswered, including on trade across the Northern Ireland border and the operation of the Goods Vehicle Management System. We will continue to look at the detail and how it affects businesses over the coming weeks.”
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