There is a common misconception that if the UK gets a trade deal from the EU, then customs declarations will not be required on January 1st next year. This is false.
The UK has already formally left the EU. A transition period was put in place to allow the UK and the EU time to form a trading relationship post-Brexit. Right now, it does not seem that both sides are closer to an agreed arrangement. In a no deal scenario the UK would leave EU institution such as the European Court of Justice. The British public have been told that this is a good thing, whereby they can take back control of their sovereignty and their judicial system. This doesn’t affect Ireland or Irish business in any real way.
A no deal scenario also means that the UK has no formal way of trading with the EU. This is much more serious for Ireland. A bilateralagreement is needed between the UK and the EU to provide access to the EU and the single market. In a no deal scenario the default position for the UK is to adopt World Trade Organisation (WTO) rules. This means that tariffs and quotas on imported goods to the EU from the UK and vis versa would apply. Costs across various sectors will almost certainly increase.
Automotive trade between the two jurisdictions is buoyant right now. Come January a 10% tariff would be imposed on goods. Some goods are tariff free anyway, even under WTO rules. However, the agriculture industry will struggle. Average tariffs are approximately 35% under WTO rules.
Whatever happens between London and Brussels in relation to a deal, customs declarations will still be required. Even if your product is at a zero-duty rate you will still need to submit a declaration to get your port clearance. If your business is in Ireland and you export to the UK, you will need to make an export declaration. On the UK side a corresponding UK import declaration will have to be made to Her Majesty’s Revenue & Customs (HMRC). Please click here to see how to make a declaration.
A deal does not mean no declarations. This cannot be stressed enough. For more information on import and export customs declarations requirements and customs declarations software, please click here.
If you trade with the UK it is not too late to organise your company for Brexit. Contact Custran and we will assess your requirements and help you on your way.