UK to Phase In Entry Requirements for EU Goods Over 6 Months in 2021

The United Kingdom on June 12 announced new plans to phase in import entry requirements for goods from the European Union over a six-month period following the end of the Brexit transition period on Dec. 31, 2020. The U.K. government will also provide £50 million in additional funding for customs brokers, forwarders and express couriers for recruitment, training and information technology (IT) expenses.

The U.K. had previously said it planned to impose full import controls on EU goods and treat them as goods from any other country beginning Dec. 31 (see 2002120049). The decision to phase in controls comes as a result of the “impact of coronavirus on businesses’ ability to prepare,” the U.K. government press release said. “This flexible and pragmatic approach will give industry extra time to make necessary arrangements.”

For the first six months after the transition, importers of “standard goods, covering everything from clothes to electronics,” will have a six-month grace period until they have to file customs declarations. Tariffs will still have to be paid on all imports, but “payments can be deferred until the customs declaration has been made,” the release said. “There will be checks on controlled goods like alcohol and tobacco. Businesses will also need to consider how they account for VAT on imported goods. There will also be physical checks at the point of destination or other approved premises on all high risk live animals and plants.”

Beginning April 1, 2021, “all products of animal origin (POAO) -- for example meat, pet food, honey, milk or egg products -- and all regulated plants and plant products will also require pre-notification and the relevant health documentation,” the release said.

Finally, beginning July 1, 2021, traders moving “all goods will have to make declarations at the point of importation and pay relevant tariffs,” the U.K. said. “Full Safety and Security declarations will be required, while for [Sanitary and Phytosanitary (SPS)] commodities there will be an increase in physical checks and the taking of samples: checks for animals, plants and their products will now take place at GB Border Control Posts.”

The “new £50 million support package will boost the capacity of the customs intermediary sector -- including customs brokers, freight forwarders and express parcel operators -- providing businesses with further support ahead of the new processes taking effect in July 2021,” the release said. “This funding will support intermediaries with recruitment, training and supplying IT equipment to help handle customs declarations. Rules will also be changed to remove barriers for intermediaries taking on new clients,” it said.

“In total, the Government has now provided £84m to grow the customs intermediary sector to encompass EU trade after 2020,” the release said.

The U.K. also “committed” to building new border facilities “for carrying out required checks, such as customs compliance, transit, and Sanitary and Phytosanitary (SPS) checks, as well as providing targeted support to ports to build new infrastructure,” the release said. “Where there is no space at ports for new infrastructure, the Government will build new inland sites where these checks and other activities will take place. The Government is consulting with ports across the UK to agree what infrastructure is required.”