Due to the UK’s departure from the EU and the end of the transition period, new regulations regarding the import and export of goods between the UK and EU, including Poland, will come into effect on January 1, 2021. On July 13, 2020, the UK government issued the document ‘The Border with the European Union: Importing and Exporting Goods.’ It describes changes that are to be gradually implemented from January, as well as in April and July 2021. What will change in import and export to the UK?
Changes for entrepreneurs operating in the UK
As of January 1, 2021, all companies selling goods to other EU countries will need to prepare for basic customs requirements, such as keeping records of imported and exported goods, and decide on the method of VAT tax settlement for both imported and exported goods. For standard goods, British businesses will have a 6-month window to submit customs declarations to HMRC, and safety and security declarations will not be required during this time. However, these concessions will not apply to importers and exporters of excise goods, such as cigarettes or alcohol, who will be required to complete full customs declarations. From April onwards, advance notification and health documentation will be mandatory for all products of animal origin (meat, dairy, honey), as well as plants and plant products. Starting in July, importers into the UK will be obligated to submit declarations at the point of entry and pay the relevant tariffs. Full safety and security declarations will be required from that point onward.
The impact of changes on import and export between the UK and Poland
Polish entrepreneurs sending their products to the United Kingdom also have until the end of 2020 to prepare for the upcoming changes. Companies that have previously traded only within the EU will need to take actions that enable them to trade with the UK once detailed border control comes into effect. Polish entrepreneurs will also need to complete customs formalities related to importing goods from or exporting them to a third country, such as registering with the e-client service or obtaining an EORI number. They will also need to choose a customs procedure and obtain the relevant customs permit. Customs declaration for the appropriate customs procedure will also be necessary. Choosing how to submit import/export declarations is another decision, whether to collaborate with a customs agency, carrier, logistics agency, or operate independently. Entrepreneurs must also be aware of the possibility of providing security for customs debt. Additionally, they must consider new rules regarding the transit procedure. Furthermore, they will need to pay all customs duties according to the new tariffs established in the UK’s new regulations, and take into account restrictions and prohibitions on the transportation of certain products set by the UK.
Although the above requirements and restrictions will only apply from the new year and will be implemented gradually, it is already worthwhile to familiarize oneself with them and analyze the situation of one’s company. It is advisable to consider whether and how these changes will be significant for the business. Perhaps an analysis of the current flow of goods in light of the upcoming changes will be necessary. It is worth preparing in advance to avoid surprises and difficulties due to a lack of knowledge about the new regulations. Every company that imports goods from or exports them to the UK should already be thinking about what will happen in just a few months.