Preparing for a ‘no deal’ Brexit
The UK Government has started to publish detailed advice on preparing for a ‘no deal’ Brexit.
A no deal Brexit will cause significant disruption to the fashion and textile industry. However, UKFT will ensure all relevant parts of the government’s advice will be published on the UKFT website here together with our own advice and an updated UKFT Brexit Checklist.
The latest information from Government says that all companies trading with the EU should:
- ensure they have registered for an Economic Operation Registration Identification (EORI). The application process is very straightforward but there are different forms depending on whether you are registered for VAT or not. For a link to the forms click here.
- register in advance to use the Transitional Simplified Procedures – these transitional simplified procedures reduce the amount of information you need to give in an import declaration when the goods are crossing the border. They do this by allowing you to defer giving a full declaration and defer paying any duty.
If tariffs apply to the goods that you import and you want to use transitional simplified procedures, you will need to:
- apply to defer any duties payable to a later date – we’ll let you know how to do this when the streamlined process for deferring duty is available.
- have a financial guarantee by 30th June 2019 for any duties deferred.
- ensure they are ready to make customs declarations and comply with other customs procedures on goods traded with the EU. Depending on how you move your goods you may need to make a declaration before the goods arrive.
- for VAT, if there is a no deal then similar VAT arrangements will apply to EU member states as to trading with other non EU countries. After 29th March you will not be able to submit a VAT refund claim using the EU electronic VAT reclaim system. You will need to reclaim VAT from an EU member state using that member states existing procedures for businesses based outside the EU.
UKFT expects that UK companies would have to pay EU VAT on tradeshow space. It remains unclear whether companies would be able to reclaim this and how long it might take.
If your products carry a CE mark you can carry on using the mark after 29th March but if the registration was made via a UK certification body you may have to reapply to an EU-based certification body. A new UKCA certification system is also being set up.
As a member of the EU, the UK currently participates in around 40 free trade agreements with over 70 countries. Here is the latest guidance on: Existing free trade agreements if there is a ‘no deal’ Brexit.
UKFT has a complete list of the likely WTO tariff rates for fashion and textile products in the event of a ‘no deal’ scenario.
For information or advice on tariff rates, UKFT members should contact email@example.com.