Border controls for importing goods from the EU into the UK from 1 January 2021

Thu 02 Jul 2020

The UK Government has notified the EU that the UK will not seek an extension to the transition period, currently scheduled to end on 31 December 2020.  This means that, from 1 January 2021, the UK will no longer be part of the EU single market and customs union (which covers rules on goods imported from non-EU countries into EU Member States).

Ahead of leaving the customs union, the UK Government has released initial guidance on border controls in relation to goods coming from EU Member States.  The controls will be introduced in three phases, to help traders adapt to the new procedures and to mitigate any potential negative impacts the current COVID-19 pandemic may bring.

A summary of the three phases, including the timing of each phase, are as follows:

From January 2021 – Traders importing standard goods, covering everything from clothes to electronics, will need to prepare for basic customs requirements. While tariffs will need to be paid on all imports, payments can be deferred until the customs declaration has been made.  Traders will have up to six months to complete customs declarations .  In addition, businesses will also need to consider how they will account for VAT on imported goods.

From April 2021 – Traders who are importing products of an animal origin (“POAO”) such as meat, pet food, honey, milk or egg products will also require pre-notification and the relevant health documentation.

From July 2021 – Traders moving ALL goods will have to make full declarations and pay tariffs at the point of importation. Full Safety and Security declarations will also be introduced following an increase in physical checks and the taking of samples will now take place at GB Border Control Posts.

We fully understand that, for traders who have in the past shipped goods only from the EU to the UK, the new border controls announced above may cause anxieties.  However, Mazars has Customs specialists who are well-placed to advise on the steps a trader needs to take to prepare.

If you would like more information regarding the above, or assistance with any Customs compliance obligation, then please speak to your usual Mazars contact or get in contact with the Mazars indirect tax team.