Brexit and AEO
As we know the UK has agreed an extension as to when it will leave the EU [this being 31st October 2019]. Although everyone is somewhat Brexit weary, not helped by the political landscape being such that the outcome is by no means certain, there is still planning that businesses involved in imports and exports should consider.
- Understanding what Transitional Simplified Procedures mean and whether you should apply for them;
- Understanding what Temporary Customs Duty Rates are and how they affect your business;
- Understanding and engaging with your international suppliers, customers and logistics partners to ensure that trade in a post Brexit world [be it no deal or not] is done on a seamless and smooth basis; Examples of this include considering the incoterms you buy and sell on.
- Whether seeking AEO accreditation will assist you trading in a post Brexit environment;
The Customs People is made up of a team of experts who are constantly abreast of the latest developments regarding Brexit, meaning we are well placed to assist your business with its plans going forward.
About Brexit and AEO
The UK government is hoping to remain closely aligned with the EU regarding customs, and although the country will not remain part of the Customs Union, it hopes an alternative which allows frictionless trade to occur can be agreed.
As part of these plans, businesses can be viewed as a ‘trusted trader’, which means that any simplifications which are available in the future will be automatically granted to the business. This potentially includes a reduction in the requirements of submitting declarations when the new Customs Declaration System [CDS] is introduced [scheduled for mid-2020].
Authorised Economic Operator (AEO) status is an internationally-recognised quality mark that indicates a business’s role in an international supply chain is secure. By attaining this accreditation, UK businesses can protect themselves against some of the more negative ramifications of Brexit - in particular, the predicted delays in clearing ports.
For more information on AEO, including the wider benefits, visit our AEO Advice page.
In the event of a no-deal Brexit
If the UK exits the EU without a deal, UK businesses will need to apply customs, excise and VAT procedures to goods traded with the EU, in broadly the same way that currently applies for goods traded outside of the EU.
Although the government has previously assured that a no-deal Brexit is highly unlikely, it recently published a collection of over 100 papers on a no-deal Brexit.
While an abundance of information is available regarding the possibility of a no-deal Brexit, businesses are often left wondering what it actually means for them. The Customs People is on hand to assist, helping you to decipher what a no-deal Brexit means for your business specifically. Some of the Brexit measures are detailed above.
We have helped many businesses across a variety of industries to decipher the complicated implications Brexit for import and export firms, as well as with the application for AEO status. We are passionate about all things Brexit, and have contributed to articles relating to this issue, which you can view by clicking here.
How we can help
The Customs People can offer support and advice to businesses throughout the lengthy AEO application process. Our service is completely bespoke to your requirements, and we have a number of different packages available.