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Brexit Checklist: Tariff Codes
19 November 2020
As we get closer and closer to the end of the Transition Period (31st December 2020 - 6 weeks to go!), we count down the weeks by highlighting areas that are key in preparing your business for the new trading models in 2021.
This week: TARIFF CODES
Commodity codes identify your products for import and export and have to be declared on a customs entry. It is very important to ensure you know the codes for your goods, and that these are accurate.
They determine what rate of import duty or VAT you will pay, and if your products are subject to any licences, quotas, duty suspensions or anti-dumping duties.
You can search for your commodity codes HERE.
Some goods can be difficult to classify.
Don’t despair - If you are unable to find the right code yourself, you can email HMRC for informal, non-legally binding advice. They will usually respond within five working days.
To legally confirm or reassign classifications (recommended if you will be importing high volumes or high values of a particular product), you can apply for a Binding Tariff Information (BTI) decision. This is legally binding and can take up to 60 days to process.
As part of our bespoke customs consultancy offering, our team can go through this process on behalf of you - get in touch here.
Now you know your commodity code(s), you can check any potential import duty rates applicable.
The UK has released its Global Tariff that will be used for all imports from 2021. We await news on whether there will be a UK/EU trade deal, which would aim to eliminate duty tariffs and reduce other trade barriers coming into force.
The UK is introducing Postponed VAT Accounting for VAT registered businesses in 2021.
If you opt to use this scheme, there will no longer be the need to pay Import VAT and then claim it back from HMRC. Instead, you will declare your Import VAT in your next VAT return with a ‘reverse charge’ offset.
BONUS WEEK
Have you considered...
The ongoing Brexit Transition Process continues to impact currency markets, and will likely result in considerable volatility to Sterling/Euro exchange rates pending
- A Deal/No Deal outcome
- The preservation of existing trade relationships
- Related trade tariffs
If you trade internationally and would like to explore ways to limit potential currency exposure, please contact us here.
COMING UP:
All you need to know about INCOTERMS and why they are going to be so important for UK/EU trade.