As of 1 January 2021, the UK will cease to be bound by EU Single Market and Customs Union rules which have applied on a transitional basis under the Withdrawal Agreement since our formal exit on 31 January this year.
The Government has a dedicated UK Transition webpage, covering citizens and businesses in all sectors. This is structured around navigating to a personalised list of actions based on answers to specific questions about individual circumstances.
Many of the changes described will take effect irrespective of any deal on a future Free Trade Agreement (FTA) between the UK and the EU. The primary purpose of an FTA would be to avoid the introduction of tariffs. But it also be likely to cover Rules of Origin and potentially the mutual recognition of standards and so-called level playing field issues.
In brief, ending transition without any future relationship agreement would mean trading with the EU as a normal third country with no preferential treatment in terms of tariffs or anything else in either direction, commonly known as WTO rules. What happens with an agreement will depend on the actual terms of that agreement – on which negotiations are still in progress.
The exception to this is Northern Ireland, where the Protocol to the existing Withdrawal Agreement lays down rules which will apply with or without a wider trade deal. Separate negotiations are taking place on the detailed implementation of the Protocol, which are also still in progress. However the Government has established a specific Trader Support Service which is now open for registration.
At a minimum, businesses who wish to trade with the EU need to do the following
- Make sure you have a valid EORI number which starts with GB
- Make sure your UK approved food businesses are listed with the EU if you or your suppliers wish to export POAO to the EU or NI
- Register for EHCs online and register to notify imports through IPAFFS.
- Understand customs procedures and tariff implications
- Follow the procedures that will apply to your trade as outlined in the government’s latest Border Operating Model
- Consider using a Customs Intermediary. If you decide not to use an intermediary, you will need to make customs declarations yourself.
- Ensure your Incoterms (International Commercial Terms) outlining delivery and shipping responsibilities are correct and up to date.
All of these issues are dealt with in more depth in the following sections and frequently-asked-questions sections of this website.
IGD have produced a helpful self contained guidance document here .