UK no-deal Brexit duty deferment
- EU VAT
- Apr 6, 2019 | Richard Asquith
The UK’s HMRC has confirmed that in the case of a no-deal Brexit, it will not seek to collect import duties on imports from the EU until October 2019. Presently, a no-deal Brexit is scheduled for 12 April 2019 following the EU Council’s extension from the planned 29 March departure. HOwever, an application for an extension until at least June 2019 is likely.
Importers can benefit from the delay if they are enrolled in HMRC’s new Transitional Simplified Procedures (TSP), which was introduced in February to postpone customs declarations and duties payments to the end of each month instead of at the time of goods clearing customs. The new deferment means the first post no-deal Brexit duties and declarations will not be required until 4 October. Beyond this date, declarations and payments will be due each month. TSP will require a bank guarantee to permit the duties deferment.
In addition, TSP has been extended from being available at ‘roll on, roll off’ ports, such as Dover, to all ports and airports.
To apply for TSP, businesses should have already obtained their Economic Operator Registration and Identification (EORI) number.
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