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Jul 29, 2020 at 7:04 AMGerlach Customs Services prepares companies for the phase after the transition period in the customs union. The European Union and the United Kingdom have each published recommendations for the time after the Brexit transition phase. Both sides urgently call on the economy to prepare for profound changes.
(Duisburg) The customs service provider Gerlach, a subsidiary of Deutsche Post DHL Group, is preparing its customers for the time after the transition phase of a customs union. Many changes are coming for customers, both in the UK and in the EU.
The European Union and the United Kingdom have each published recommendations for the time after the Brexit transition phase. Both sides urgently call on the economy to prepare for profound changes.
Six months before the economic break after Brexit, the UK and the EU issued guidelines for the time thereafter. In this context, it was pointed out that much is inevitable, such as customs formalities, even if a trade pact is reached.
Customs Declaration for Goods from the UK
Although the UK left the EU at the end of January, it remains a member of the internal market and the customs union until the end of 2020. Even with a potential trade agreement, customs declarations for all goods from the UK will be due under EU law starting January 1, 2021, according to the 35-page document issued by the EU Commission.
British companies will also not be able to offer transport services in the EU starting next year unless otherwise regulated in a contract. The document lists dozens of other points with important changes.
UK with 3-Stage Model for Customs
The UK has indicated that as a sovereign nation, it will operate a complete external border. This means that all goods traffic between the UK and the EU will be controlled. To help businesses better prepare for the new situation, the UK has announced that new border controls will be introduced in three stages by July 1, 2021.
According to the document, businesses must prepare for basic customs requirements starting January 1, 2021, such as maintaining adequate records of imported goods when importing standard goods, which can include everything from clothing to electronics. They will also need to consider how to account for and pay VAT on imported goods. Traders will then have up to six months to complete the customs declarations.
Starting April 1, 2021, all products of animal origin (POAO) and all regulated plants and plant products must be pre-notified and require the corresponding health documents.
In the third phase starting July 2021, businesses must submit complete customs declarations for their goods at the point of import and pay the corresponding duties. For goods subject to health and phytosanitary (SPS) controls, the relevant documents must be presented at the border control points, and there will be an increase in physical inspections as well as sampling. SPS controls for animals, plants, and their products will take place directly at the UK border control points and not at the destination.
Gerlach Customs
Gerlach is the largest neutral provider of customs services in Europe. Currently, Gerlach is represented in 12 European countries at more than 70 locations. In other European countries, Gerlach, as a wholly-owned subsidiary of Deutsche Post DHL Group, can benefit from an international partner network. In total, more than 750 customs experts and consultants are available for customs matters in 27 European countries. In addition, there is a global partner network in over 200 countries.
Photo: © Gerlach Customs
