Mike Court discusses the options as the EU Transition Period deadline hurtles towards us, despite other business delays…
As an International Trade consultant I have been asked many times, “how can we manage our business after the end of the transition period on 31/12/2020?” I always ask my clients, “what is it you want to do?”
- Do you want to take back control of your import/Exports?
- Do you want to take advantage of some cost saving procedures?
- Do you want to upskill your workforce?
If the answer to all this is yes then these are the small steps you can take to achieve those aims:
To regain control of your import/export customs procedures you will need to understand that it is the responsibility of your business to manage 3rd party freight forwarders, fast parcel carriers or customs agents. You will need to issue them detailed instructions on how to manage your freight at the U.K. borders. Bearing in mind that as of 01/01/2020 all shipments into and out of the EU will require some form of customs entry, even if there is zero Tariffs on the goods in question.
Then you need to decide if you are going to make the customs entries yourself using a software package that links your business/stock control system to the HMRC customs system. There are still government grants to enable you to purchase IT Hardware and Software to achieve this, along with grants to cover training across a variety of international trade and compliance topics – up to £2,250 per trainee. More information on training grants can be found HERE
If you have a warehouse on site, can you save money by converting part or all into a customs warehouse? If so you will save all import duty and import VAT until your products are either sold domestically or re-exported. This can provide excellent cash-flow savings in real terms, giving you an advantage at a time of uncertainty.
You will need to register with HMRC and apply to run a customs special procedure, this can be done quite easily, but it requires dedicated procedures for your business and staff training.
You will need to register with customs for simplified customs procedures.
All this can be achieved in the last 6 months of the year and International Trade Matters can help with all of the above, contact us to find out more.
Mike provides comprehensive training and consultancy services with International Trade Matters Ltd through Devon and Dorset Chambers of Commerce and by direct arrangement with businesses throughout the South West (and beyond). In these challenging times, much of the content is being moved online, but still very much happening, so do make contact if you would like to benefit from an excellent range of courses and training programmes, many of which are eligible for government funding.
By subscribing to our mailing list (which provides monthly updates on all things International, but you can unsubscribe at any time!) you can watch Mike’s latest, informative webinar on Tariffs, Origin & Valuation.