EU Exit - Summary of UK position announcement of 12 June 2020
On 12 June, the UK government announced that it has formally notified the EU that it will not seek an extension to the Transition Period.
The UK planned to have full controls on its EU trade from 1st January but, due to delays in progress because of COVID-19, the UK government considers that this is not now possible.
From 1st January, declarations will be required for Controlled Goods but submissions and payments for all other goods may be delayed for up to six months. Traders must have a deferment account. But traders do not have to be pre-registered with HMRC.
Some imports of high-risk animal and plant products will need to be pre-notified to HMRC. There will be Customs and Border Force interventions based on risk management. Intrastat arrivals declarations will still be needed.
From 1st July 2021, declarations will be needed for all EU trade, including Safety & Security declarations.
A new support package to help traders get ready will be available, including another £50m for intermediaries.
There will need to be new port infrastructure built and we understand that the government is to consult with existing ports. Where there is no land available at the port (for example, Dover), the new build will be inland.
There will be a new Bulk Declaration Scheme for low value imports from 1st January 2021.
HMRC will be engaging with business over the coming weeks to develop more detail with a view to publishing a “Border Operating Model” by mid-July.
The government wants to have an improved upstream border readiness program in place so that there are limited delays on exports, i.e. for drivers to check that they have the right documentation to enter France. This may include a smart app which is under development.
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