28 August 2018/Categories: CILT, Industry News, Logistics & Supply Chain
In a nutshell, businesses importing and/or exporting from/to the EU will need to submit import and export declarations and, depending on the type of goods they move, may also need an import or export license. They will have to register for a UK Economic Operator Registration and Identification (EORI) number, meaning slower processing times and increased costs for euro transactions. Importers will have to file customs declarations for goods from the EU, and exporters will have to submit an export declaration. The latter may need to be lodged in advance so that permission to export is granted before the goods leave the UK.
To complicate things even further, HM Treasury would establish a new UK trade tariff to replace the EU Common Customs Tariff (CCT) for imports to the UK. The tariff would contain rules for determining the amount of import duty applicable to those goods based on their description (the commodity code) and country of origin. It would also set out import procedures, such as how the value of a good is calculated, and which forms, codes, and procedures are to be used.
New urgency for automation and digitization
The right customs platform fully integrates into a company’s overall global trade and supply chain management processes, standardizing and accelerating processes and, importantly, reducing costs and eliminating maintenance efforts. Once all relevant workflows, data, and partners are fully integrated into a company’s end-to-end supply chain processes, they can deliver added-value, efficiency, and regulatory compliance – ultimately accelerating and securing the value chains. For businesses in the digital age, this is direly needed for survival in today’s fast-changing and competitive environments.
Geoff Taylor, Managing Director at AEB (International) Ltd, said: “Forward-looking businesses should be implementing solutions that drive forward the digitization agenda of their business while mitigating risks from Brexit as much as from other global trade changes. Smart automation allows companies to accelerate the various customs processes and save valuable resources.
Based on the latest government notices, this refers especially to import and export filing, license management for dual-use and controlled goods, as well as product classification and duty calculations. The right software enables internationally active companies to continue trading efficiently and in compliance with all the latest regulations. The good news about this kind of investment is that it won’t be wasted whichever way Brexit will go. The time to wait has past, latest publications make it clear that traders need to act now.”
The government’s various technical notices can be found at https://www.gov.uk/government/collections/how-to-prepare-if-the-uk-leaves-the-eu-with-no-deal#importing-and-exporting.
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