Free trade of goods
Under the TCA, most goods can be traded between the UK and EU without being subject to tariffs (ie import taxes) or quotas (ie quantity restrictions).
Crucially, this free movement of goods only applies to products that originate from the UK or EU. To originate in the EU or UK, the products must be ‘wholly obtained’ from the UK or EU or ‘substantially transformed’ in the UK or EU in a way that adds value to them. Goods that are made in countries outside of the UK and EU but which pass through the EU to the UK (or vice versa) may, therefore, be subject to tariffs and quotas. For more information on this requirement, see the Government’s website.
What is the new border plan?
The UK Government has increased customs procedures and inspections on goods entering and leaving the UK. If a business transports goods across the UK-EU border by road, they should be aware of some of the key requirements put in place since the end of the transition period. This includes:
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ensuring that they have the correct documentation, licences and other requirements in place to cross the border
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Haulier advice sites can help you check the paperwork that you need to cross the border, although they will close on 13 May 2022
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drivers must have a valid:
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passport
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UK driving licence
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Driver Certificate of Professional Competence
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international driving permit (IDP) if needed for the country of travel, and
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any necessary healthcare documents
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businesses should check what customs declarations they need to make in order to transport their goods
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businesses should obtain the necessary EORI number, which starts with ‘GB’). This is an identification number required for transporting goods into the EU
Are there new customs requirements?
Customs requirements for goods entering the UK from the EU have gradually increased. Customs declarations are now generally required for goods being imported into the UK from the EU or exported from the UK to the EU.
There are, however, some checks yet to come into effect. The Government has suggested that some Brexit-related border controls may not come into effect until 2023, such as the requirement for physical checks on fresh food entering the UK from the EU.
The Government provides guidance to help businesses check whether they need to declare goods they’re exporting or importing. In addition, the import or export of certain kinds of goods may require specific licences or certificates. Businesses moving goods to, from or through Northern Ireland and/or Ireland should consider the alternate customs requirements for these situations.
As a start, businesses importing goods across the border should:
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check the marking, labelling and marketing standards for food, plant seeds and manufactured goods
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check the rules for importing alcohol, tobacco and certain oils
Businesses exporting goods across the border should:
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check the marking, labelling and marketing standards for food, plant seeds and manufactured goods
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check the rules for exporting alcohol, tobacco and certain oils
Further changes to customs requirements are expected on 1 July 2022, including:
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full safety and security declarations for imports
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export Health Certificates
Do I need to pay VAT when moving goods between the UK and EU?
Value-added tax (VAT) is a tax levied on goods and services that are consumed in the UK and EU. VAT is only levied on goods and services consumed in the UK, meaning most goods being exported to the EU should not be subject to VAT.
Any goods and services being imported from the EU into the UK may require payment of customs duties and VAT. Businesses should check the rate of customs duty on imports and check the rate of VAT.