This note contains information for HTA members about some of the guidance relevant to members. A further 60 guidance notes are to be published in September.
The full guidance notes and other information can be accessed through the UK and EU section on www.gov.uk.
UK Government approach
The technical guidance stresses that the UK Government firmly believes that a deal will be reached with the EU prior to 29th March.
However, it has published the guidance notes to allow people and businesses to start preparing should a deal not be agreed.
The technical guidance also stresses the importance of the Northern Ireland border in the ongoing negotiations.
Trading with the EU
Importing from EU Countries
Those importing goods from EU countries would have to follow customs procedures in the same way as they have to now for importing from non-EU countries.
- Businesses will have to register for an Economic Operator Registration and Identification (EORI) number. This service is not in operation at present. Businesses that register with HMRC will be contacted when the service is available. HTA recommends members to register with HMRC for email alerts through the HMRC section on www.gov.uk.
- Ensure contracts and terms and conditions reflect that the fact that the business is now importing.
- Consider how they will submit import declarations, including whether to use a customs broker, freight forwarder or logistics provider. If businesses decide to submit declarations themselves they will need to get the appropriate software and secure the necessary authorisations from HMRC.
- Decide the correct classification for goods.
- Pay relevant VAT and import duties.
- Businesses will have to register for an EORI number (see above).
- Export declarations will need to be submitted.
- For certain goods an export licence may be required.
VAT
The UK will continue to have a VAT system. Government will introduce postponed accounting for import VAT on goods brought into the UK. Companies exporting goods to the EU will be able to zero rate sales.
Classifying goods in the UK trade tariffs
Trade with the EU will be on non-preferential World Trade Organisation (WTO) terms. This means Most Favoured Nation tariffs and non-preferential rules of origin will apply to consignments between the UK and EU. The UK Government states it will publish UK duty rates before Britain leaves the EU.
Workplace rights
The EU (Withdrawal) Act 2018 brings across the powers from EU Directives to UK legislations. This means UK workers will continue to be entitled to the same rights as at present.
Receiving funding from EU-funded programmes
The UK Government has guaranteed that any projects where funding has been agreed before the end of 2020 will be funded for their full lifetime. This includes funding for Rural Development, Horizon 2020 and Erasmus+ Projects.
Farm payments
Eligible beneficiaries will continue to receive payments under the terms of the UK Government’s funding guarantee. Domestic legislation is being prepared which will require beneficiaries to meet the same standards as at present. The Agriculture Bill, expected shortly, will legislate for England, with the Devolved Administrations also preparing legislation.
Trade remedies
Government intends to establish an independent Trade Remedies Authority to investigate complaints of unfair trading practices and unforeseen surges in imports causing injury to UK industry.