After a year of eased restrictions in 2021, the real Brexit is here. This next phase of regulations, Brexit 2.0, sees the removals of customs clearance safety nets for traders in the U.K. and progresses towards a stricter border between the U.K and the EU.
(If you haven’t yet downloaded your Brexit pack, all the information you need is there.)
Here are some of the highlights of the Brexit 2.0 changes:
U.K. importers, and their EU suppliers, now need to have a customs clearance in place before goods can enter the U.K. For road vehicles, both the import and export customs declarations need to be pre-lodged on the Goods Vehicle Movement Service (GVMS) system before boarding the ferry at origin.
All commercial invoices need to have REX statements for shipments over GBP5500/EUR6000 if you want to continue claiming preferential duty on EU imports.
What is the impact of Brexit 2.0 in the U.K.?
Goods vehicle will no longer be able to enter the U.K. without a clearance on GVMS. This means that your customs broker will need to proactively complete the customs clearance so that your shipment may leave the EU.
This will be the same for road shipments moving from the U.K. to the EU.
In addition to GVMS, the rule of preferential origin are tightening up in Brexit 2.0. If your commercial invoice is over GBP5500/EUR6000 and does not contain a REX statement, you will need to calculate import duty on your goods.
Legal food products need to be pre-notified on IPAFFS and the generated Unique Notification Number (UNN) will need to be declared on the import customs declaration.
(Note that the UNN will need to be on the health certificate form July 1st, 2022)
What is the impact of Brexit 2.0 in the EU?
Until now, you have been able to move goods out of the EU to the U.K. using only the export documentation. The U.K import declaration has not been necessary for exiting the EU border.
This will remain the same for sea and air shipments, as your goods need to be cleared before collection from sea ports.
For road shipments, your vehicle will require a valid Goods Movement Reference (GMR) from the Goods Vehicle Movement Service before it will be allowed to board the vehicle.
Due to this new introduction, it is anticipated that there will be delays at the EU border for paperwork issues during the first few weeks. Miguel Navarro, of Customs Support Group, gave this interview on the situation last week.
If you have not discussed this with your EU supplier yet, you can find a sample letter to them in our Brexit pack that will help you.