top of page
Writer's pictureArne Mielken
Dec 10, 20216 min read

Brexit 2022: How to cope with the EU trading rules

But there are practical steps that businesses can take to ensure trading with the EU is as seamless as possible.


Many small business owners are struggling with the red tape and extra costs of trading with the EU following our departure from the single market. They face a blizzard of new regulations, including the fiendishly complex rules of origin, and the corresponding avalanche of paperwork and profit-sapping duties on goods. But there are practical steps that businesses can take to ensure trading with the EU is as seamless as possible.



Essential preparations

If you are exporting or importing for the first time, there are some fundamentals to take care of. First, you need to register and obtain an EORI business identification number from HMRC. It’s quick and free but watch out here because there are regional variations. For trade with Northern Ireland, for example, you need a separate EORI number and a different one is required if you are importing into the EU.

If you are importing goods, consider setting up a deferment account. This lets you make one payment a month via Direct Debit instead of paying for individual consignments. This is essential, otherwise, you could end up having your goods stuck at the port until you pay up.


Fill in customs declarations correctly

This is an essential document that you must now use for international trade and one that many small businesses get wrong. It has a whopping 54 boxes, but only some need completing, depending on whether you are importing or exporting goods, or just moving products through a country.

Make sure you provide the correct information about the origin of goods and their customs value – this can determine the rate of duty payable – and pay particular attention to box 33, where you input your commodity code. Make sure it’s the correct one so that you can set the right price for your products and avoid any back taxes. If the commodity code is incorrect, the importer may have to pay taxes.


Get the right permits

Depending on the type of goods you export, certain permits, certificate and authorisations may be needed. Without the necessary documents, you may not be able to export your goods to the EU.

For example, sanitary and phytosanitary (SPS) goods – which cover animal and plant products – require specific documents. Such goods are subject to rigorous border inspections, so importers need to register on official EU and UK IT systems and submit the required veterinary documentation to gain access to foreign markets. Failure to do so could mean your SPS goods being refused on health grounds.

You can find more information on the Access2Markets Database which lists all the import requirements of EU member states: https://trade.ec.europa.eu/access-to-markets/en/content


Choose the right broker

A broker or freight agent may do much of the heavy lifting for you – such as completing your customs entry with HMRC – so it’s crucial you pick the right one which means checking the following:

• What is their track record?

• Will they carry out customs formalities?

• Do they subcontract anything out?

• Do they have their own handling facilitates?

• What credit facilities do they offer?

• Are they AEO (Authorised Economic Operator) certified?

Make sure you brief your broker properly and tell them exactly what you want them to do.


Rules of origin

Don’t be fooled by claims that we still enjoy tariff and quota-free trade. This depends on whether so-called rules of origin are met. If your goods originate in the UK or the EU and you can prove it, then you won’t have to worry about extra tariff costs. But if you use foreign components – say, metal from the US to make a car part – then you will need to check the product-specific rules to see how much non-EU and non-UK content is allowable. The EU has published a self-assessment tool to assist businesses with this: https://trade.ec.europa.eu/access-to-markets/en/content


You can also find more advice on rules of origin in my video: https://www.youtube.com/watch?v=QM1XbMTpMOo


Set up shop in the EU

If all else fails, then consider setting up an EU base. There would be zero customs formalities and declarations to slow things down, and you wouldn’t have to worry about complex rules of origin. With a base in Europe, there would be no customs' duty, no border clearance paperwork or delays at ports to stress over and no need to register for VAT in multiple jurisdictions. Perhaps the biggest benefit of having an EU presence, however, is the direct access it gives you to more than 400 million consumers and the promise of more sales. However, this may not be a viable option for some small businesses, and these will have to navigate the complex new EU trading arrangements. It’s therefore wise to seek professional advice to ensure that doing business across the channel is as seamless as possible.

Where to find even more help and support



About Customs Manager Ltd.

Working with us means having a Customs Advisor, Global Trade Expert and Export Controls Consultant, on speed-dial. If you are looking for a customs consultant UK and EU, let us help you trade effectively, efficiently and, of course, compliantly, wherever you want to go in the world.


Need to stay up-to-date with changing customs and global trade rules? We monitor legislation so our clients don't have to. Learn about all changes in our fresh expert blog, join exclusive briefings and ask any questions 24/7 through to the VIP hotline. Or sign up to our no-charge, insightful newsletter.


Entrust us with your training needs and help us to upskill you and your teams in English, German, French and Spanish. We offer public and private live, in-house and on-demand (study from anywhere and anytime) courses.


To complete our support for globally trading businesses, we are also a UK Customs Broker. We act as a customs clearance agent on behalf of many EU and UK businesses, assisting with customs documentation and all other formalities to ensure the customs clearance of our goods. Whether you’re seeking a long-term partner to look after your customs clearance or require support for a one-off shipment, please don’t hesitate to get in touch to discuss your requirements.


Important Notice

Customs Manager Ltd. owns the copyright in this information, unless other sources are identified.

You are not allowed to use this information in any way that infringes the intellectual property rights in it. You may have to hold a valid licence to use this information. A licence can be obtained by becoming a Premium subscriber to the Customs Managers’ Trade Intelligence service. As a Premium subscriber, you may download and print this information which you may then use, copy or reproduce for your own internal non-profit-making purposes.

However, under no circumstances are you permitted to use, copy or reproduce this information to profit or gain.

In addition, you must not sell or distribute this information to third parties who are not members of your organization, whether for monetary payment or otherwise.

This information is intended to serve as general guidance only and does not constitute legal advice. We cannot guarantee the quality, content, or accuracy of the information provided on this page as laws and information change regularly. Moreover, the application and impact of laws can vary widely based on the specific facts involved. This information should not be used as a substitute for consultation with professional legal or other competent advisers. Before making any decision or taking any action, you should consult a Customs Manager Ltd. professional.

In no circumstances will Customs Manager Ltd, be liable for any decision made or action was taken in reliance on the information contained within this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.


43 views0 comments

Recent Posts

See All

Comentarios

bottom of page