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Brexit and possible customs implications for EU companies

Brexit possible customs implications for EU companies

The United Kingdom is expecting up to 180,000 companies would need to make customs declarations in the United Kingdom after 1 January 2021.

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Because of these numbers, the UK is providing a number of “easement opportunities” for companies. The current situation indicates that as of 1 January 2021, importers of standard goods would have up to six months from the date of importation to complete their customs declarations in full. They also would be allowed to defer payment of import taxes.

At present:

  • Beginning 1 April 2021, products of animal origin will be subject to prior notification and relevant health documentation.
  • Beginning 1 July 2021, a full customs declaration will be required at the point of import for all products, as well as payment of the associated customs tariffs.

Companies postponing their declarations and payments would have to maintain a very comprehensive record of all imported goods. In addition, they would have to open a duty deferment account with the UK government for the deferment of payment. 

KPMG observation

Companies that are well prepared for this challenge have laid down various supply chain scenarios in a “plan B.”
 

Read an October 2020 report prepared by the KPMG member firm in the Netherlands


For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich | + 1 312-665-1022 | dzuvich@kpmg.com

Andy Siciliano | + 1 631-425-6057 | asiciliano@kpmg.com

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