As agreed at the EU Council Meeting the UK departure from the EU has now been extended to 31st October, with a review scheduled in June.
While this has allowed Businesses avoid a cliff edge scenario on 12th April, it will not be long before October 31st presents the same challenges. Now that there is a little more time to prepare we are urging companies to use that time wisely.
Along with our step-by-step guide we are also advising businesses to:
- Use the next few months wisely.
- Apply in time for Customs Authorisations.
- Do not leave planning and preparation to the last minute.
Ensure you have a Customs Registration Number – EORI
If you intend to act as an importer from / exporter to the UK and the EU, you cannot do so unless you are registered with Customs. Similarly you will be required to have a UK Customs registration to export from / import to the UK.
Establish whether you need to obtain a Deferred Payment Account and, if so, put in place a guarantee provision with your bank to cover the duties that are going to be suspended.
A Deferred Payment Authorisation will allow you to import goods into Ireland from the UK and defer the payment of Customs Duties and Import VAT to the month following import.
If you export to the UK you should also now request a Deferred Payment Authorisation from HMRC.
Ensure your tariff classifications are 100% correct and, from this, confirm the duty rates that may be payable.
Ensure you have a clearance agent to lodge Customs Declarations on your behalf
A clearance agent will act on your behalf to enter your Import and Export Documents into the Customs System (AEP,Ireland and CHIEF, UK).
Alternatively review the option of bringing this in-house.
Talk to your suppliers and customers to confirm who is acting as Importer and/or Exporter of Record for your purchases and sale
They are responsible for the payment of the Import Duties along with customs compliance.
If you trade in Agricultural goods, and particularly if those goods are of animal origin, then additional Vetinary checks and certs will be required along with additional time frames for notifying Customs of Imports.
Ensure you are registered with DAFM and comply with new UK import requirements.
Review your VAT position in Ireland and the UK.
As a VAT registered entityyou can avail of simplifications with regard to accounting for VAT on import. This will significantly benefit cash flow.
Seek advice if you import from/export to Northern Ieland
Special rules will apply. Check if you will qualify for UK Simplified Import procedures.
After completing steps 1-8 you can look to apply for the Authorised Economic Operator (Trusted Trader Customs Authorisation.
This is a complicated process and requires a considerable number of procedures to be in place from both a Customs, IT, Accounting, Logistics and Supply Chain Security perspective.
The average time frame to securing AEO status is 4-6 months in Ireland and 9-12 months in the UK.