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Traders told how to prepare for Brexit

14 July 2020

The UK Government has published the new Border Operating Model to come into force in 2021 when EU transition measures end.

Traders need to take a number of measures, including:

• Get a customs intermediary. Intermediaries can help traders find the information needed to complete formalities and submit the required declarations, for example customs information to HMRC systems. If you decide not to use an intermediary, you will need to make declarations yourself.

• Apply for a duty deferment account. Traders who import goods regularly, may benefit from having a duty deferment account. This enables customs charges including customs duty, excise duty, and import VAT to be paid once a month through Direct Debit instead of being paid on individual consignments.

• Prepare to pay or account for VAT on imported goods. • Ensure you have International Driving Permits.

• Apply for a GB Economic Operator Registration and Identification (EORI) number. This is required for all businesses moving goods into or out of the UK.

RHA chief executive, Richard Burnett said: “This campaign will prepare Britain for the ‘significant opportunities’ of Brexit. But I am completely at a loss to understand how this framework can be achieved by 1 January 2021. UK businesses will have to employ the services of 50,000 customs intermediaries to handle the complex new processes allowing them to move goods across borders. The recruitment of this team alone will be a long process as will their necessary training.”

FTA’s head of international policy Alex Veitch added: “It is good to have confirmation of a large proportion of the detail of how goods are expected to move between the UK and EU from the start of next year. We are advising our members to do all they can to get Brexit ready, for example adapting their systems to produce the right border documentation, working with customers to understand the requirements for each party in the supply chain, and enrolling in trusted trader schemes like CTC Transit. These will all be needed whether or not the UK government strikes a deal with the EU.”