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.

1000

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

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.


For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal