BREXIT – All you need to know now!

Time is running: No more than 100 days until the end of the transition period, and then the United Kingdom will no longer be part of the European single market on January 1, 2021. But what will the trade in goods between the EU and the UK look like then? We have summarized everything you need to know now.

October will be a month of decisions. It is impossible to predict how the open questions of trade in goods will be decided in concrete terms, but the danger of the negotiations failing is no longer to be dismissed. With or without the desired deal, trade will have to be organized according to WTO rules from January 1, 2021. This means that the United Kingdom will no longer be part of the EU customs union. And it will inevitably entail border controls and customs formalities, which will lead to corresponding restrictions in the movement of goods between the EU and the United Kingdom We are therefore currently making all necessary preparations for a "No Deal" scenario, to which our shippers must also be prepared.

Without a Deal, trade with UK would have to be organized according to WTO rules, which will  inevitably entail border controls and customs formalities.

Besides, Hellmann will participate in discussions with the Chamber of Industry and Commerce (IHK) and the German Freight Forwarding and Logistics Association (DSLV) together with the British customs authorities to provide our customers with the most up-to-date information and cause the least possible effort despite all new requirements. So how can customers and shippers prepare themselves?

Apply for an EORI number

EORI number means Economic Operators' Registration and Identification number. The EORI number is issued free of charge on request by the General Customs Directorate - Dresden Office - Master Data Management. Link: Application for an EORI number

Classify your products

As a shipper you should classify your products with the current TARIC code and according to the European HS code (= Harmonized System). If this code is indicated on your customs declaration, the customs authorities will know which goods are included in your shipment and the amount of import duties and other taxes on import. Detailed information on customs tariff numbers can be found by clicking on the following link: Customs tariff numbers. Possible customs duties for the United Kingdom can be found here TARIC tariff for import and here GOV-Check tariffs for export. Check the new requirements of the British government regarding import regulations, preferences and origin of goods, licensing requirements and therefore required trade and other documents, licenses and test reports.

Check delivery conditions

Review your terms of delivery (Incoterms 2020) with your business partners to avoid unnecessary costs and risks and to regulate who should carry out the customs formalities. On the following page you will find more tips on how to prepare "BREXIT - PREPARATION FOR THE END OF THE TRANSITIONAL TIME" from the EU Directorate General TAXUD and various preparatory communications from the European Commission in several languages for different sectors, including air transport, customs, maritime transport and road transport.

Everything you need to know or want to know about the British customs border process can be found in the Border Operating Manual, which includes, among other things, the three phases of the changeover from January 2021.

Whether hard ord soft Brexit, No Deal or Deal, we will do everything we can to be "Ready for Brexit" for you! To this end, we will inform you regularly in the coming weeks and months.

Marcus Richardt

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