The exact consequences of the Brexit are still unclear at the moment. However, customs formalities will certainly be introduced as from the end of the transitional period (1 January 2021). This means, among other things, that companies will have to return to customs declarations when they import or export goods to the UK. The question remains, however, whether this will be reasonably easy, as with Norway and Switzerland, or whether other procedures will apply.

To make customs declarations, you have to take certain steps. Find out on time how to do this or get advice and outsource certain matters.

If all else fails, the United Kingdom will again be subject to the rules of the World Trade Organisation (WTO). This means that:

1. Import and export tariffs will be applied -> products may become more expensive (in both the UK and the EU)
2. Border checks + possible congestion and related delays
3. Goods for import/export must be declared, and import and export declarations for NL and the UK must be drawn up.
4. Consignments to and from the UK are no longer classified as ‘intra-Community supplies and acquisitions’. Imports and exports are also subject to VAT.
5. Delays at the border due to customs formalities, and depending on the type of goods, (possible) inspections by the NVWA (Dutch Food and Consumer Product Safety Authority).
6. Only pallets (packaging wood) that have been treated against harmful organisms and have the international standard ISPM 15 marking may be used for carrying.

A hard Brexit or a soft Brexit is regularly mentioned. There is also a no-deal scenario. What exactly do these different situations involve?

• Hard Brexit
  A hard Brexit is one in which the UK leaves the European single market and the European customs union. The UK then no longer has to abide by any EU rules. The impact of hard Brexit is still uncertain. However, there will be a transitional period during which trade agreements and other arrangements will be made with the UK. This transitional period will run until 31 December 2020 and may be extended once by two years.
• Soft Brexit
  A soft Brexit is a situation where the UK abandons its bargaining position and indicates its desire to remain within the European single market (as in the case of Norway, for example). How much you notice of the changes brought about by the Brexit then depends on the negotiations, but in any case, the trade will be less flexible than it is at present. With the soft Brexit, you will also have to deal with customs formalities and the declaration of goods at import and export. The soft Brexit also has a transition period until 31 December 2020.
• No-deal scenario
  There is a ‘no-deal’ if there is no plan on 31 January 2020. For example, because the European Union does not agree with the UK’s proposal or because the British House of Commons rejects the British Prime Minister’s plan (as happened earlier this year). As of 1 February, the rules of the World Trade Organization (WTO) will apply, and you will again have to deal with, among other things, customs procedures, import tariffs, border controls, VAT on imports and exports and other trade barriers. However, there is a deal, so this scenario is no longer an issue.

The big stumbling block in the Brexit negotiations was the backstop. But what exactly is this, and why is it a problem?

During the signing of the Good Friday Agreement on 10 April 1998, it was agreed that there would never again be a hard border between Ireland and Northern Ireland. The reason for this was the years of ethnic-nationalist conflict in Northern Ireland. However, when the Brexit enters into force and the UK leaves the EU, there will have to be a border between Ireland and Northern Ireland. The backstop is a kind of insurance; should the negotiations on how this border will be shaped fail, at least there will not be a hard border. The border will then remain as it is now. However, there is a danger that Ireland will become a kind of ‘back door’, with goods ending up in free circulation in the EU via Northern Ireland and Ireland, for example. That is why the EU wants the UK to continue to comply with EU rules in this case, but the UK no longer has any regulatory influence. That is precisely the problem in the British Parliament as those who support Brexit no longer want to comply with EU rules.

A customs union is economic cooperation between several countries, involving the free circulation of goods, a uniform commercial policy towards third countries and the sharing of revenue collected from import duties levied.

The exact consequences for transport will only be known once the negotiations have been completed.

However, we will likely have to deal with more border checks, which could lead to delays and waiting times at ferry terminals. And all goods will have to include the proper customs documents. When the relevant import and export documents are missing or are incorrect, the goods will not be allowed into/out of the country. The validity of the euro permits will probably expire. We will have to go back to ECMT permits, of which we know there is a shortage. There is an EU emergency plan for this, but there is no agreement on this yet. Besides this, only pallets (packaging wood) that have been treated against harmful organisms and have the international ISPM 15 marking may be used for carrying. If you do not use these, your shipment can be held up, returned or even destroyed at the border. It is also very likely that the costs of transport will increase as well as the duration of transport.

Leading industry organisations and Portbase as the national Port Community System have joined forces to offer the short sea and ferry sector a chain-wide online Brexit solution.

For more information see www.getreadyforbrexit.eu.

Yes, other procedures will apply after Brexit. Whether it is a hard or soft Brexit, you will have to deal with customs formalities, import and export declarations and you will have to deal with import duties and VAT. So, it will also be important to draw up customs documents for each consignment. If you have a lot of shipments, this can get very expensive. If the EU and the UK do not reach additional agreements, the World Trade Organisation tariffs will apply from 1 January 2021. It is also possible that only pallets (packaging wood) that have been treated against harmful organisms and have the international ISPM 15 marking may be used then. If you do not use these, your shipment may be held up, returned or even destroyed at the border.

Yes, customs formalities will be reintroduced at the end of the transitional period. This means that companies must issue customs declarations on import and export, just as they do when trading with countries outside the EU. Among other things, you will need the original commercial invoice for this, stating the value of the goods, the HS code per product, an original company stamp and an original signature written in blue ink. You should also bear in mind that after Brexit you may have to deal with the declaration of goods at other agencies, such as NVWA (the Food and Consumer Product Safety Authority, for animal products, plant products, fruit and vegetables) or CDIU (Central Import and Export Office), for export licences for dual-use goods.

• Export declaration NL. You can do this yourself or have a customs agent do it. We can also take care of this for you at CTS GROUP.

Import declaration UK. As there is no possibility to make an import declaration when the goods arrive in the UK, it must be made before the goods leave the EU. As a carrier, we also need proof of this declaration. Without this proof, access to the ferry/tunnel is not possible.

Simplified import declaration
In the case of no deal, the UK has introduced a simplified declaration procedure, the Transitional Simplified Procedures (TSP). When your receiver (UK Importer) has registered for this, we as a carrier need his TSP-approved UK EORI number. You can read more about this here. In other cases, we need the MRN number of the UK import declaration. So, always contact your consignee! You can find more information about customs declarations in the UK here.

• Export declaration UK. It is advisable to check whether the shipper in the UK (UK Exporter) can take care of this.
• Import declaration NL. You can do this yourself or have a customs agent do it. We can also take care of this for you at CTS GROUP.
• Pallets with international ISPM 15 marking. Only pallets that have been treated against harmful organisms are admitted to the UK and the EU.

You can find more information on the customs’ website or via evofenedex.

Yes, after the end of the transitional period, you will also have to deal with import duties. The amount will depend on your product and the agreements made between the EU and the UK. In the most impactful scenario, the high WTO import duties will apply from 1 January 2021. These WTO import tariffs are the same for all countries with which the EU does not have a trade agreement. You can find the current EU WTO import tariffs per product in the TARIC customs database. You can find more information here.

Besides having to add other documents to your shipment after Brexit, you may also have to use other pallets. As the mutual agreements will lapse, you may only use pallets (packaging wood) that have been treated against harmful organisms and have the international standard ISPM 15 marking. If you do not use these, your shipment may be held up, returned or even destroyed at the border. You can find more information about this marking here.

Yes, we will continue to provide transport to and from the UK even after Brexit! We started as a UK specialist and will remain so. As an organisation, we ensure that we are prepared for all outcomes. Also, we employ various specialists who can help you draw up customs documents and who have experience with transport to/from countries outside the EU.

But we cannot do it alone. To be able to continue providing transport for you, it is essential that you also do your part. You must ensure that the customs documents are drawn up and that you have the necessary information. Of course, our in-house customs experts can help and advise you in this regard.

As a specialist in distribution to and from the United Kingdom, we follow all developments closely. We have many years of experience in transport to and from Norway and Switzerland, so we are familiar with shipping to and from non-EU countries and have the necessary in-house knowledge to deal with any situation. We employ customs experts who can inform you and assist you with customs procedures. We can also draw up the customs documents for you.

To prepare well for Brexit, it is important to assume a hard Brexit in which the UK is no longer part of the European single market and the European Customs Union, and that no further (trade) agreements have been made. The rules of the World Trade Organisation will then apply.

1. List the implications for your trade with the UK;
2. Do the Brexit Impact Scan;
3. Request an EORI number if you do not yet have one;
4. Know how to draw up customs documents (or have them drawn up);
5. Take a look at your agreements with your business relations in the UK, for example, the delivery conditions (Incoterms);
6. Find out about import duties and the consequences for VAT;
7. Check product requirements. The CE marking may no longer be valid in the UK after Brexit;
8. Check your goods and determine whether you may still have to deal with export certificates or export permits.

You can find more information on our blog and via the links at the bottom of this page. On the website of the Netherlands Enterprise Agency (RVO) you can do the Brexit Impact Scan and receive information on topics like export, import, transport, digital data and services and intellectual property, among other things.

In the worst case, you will no longer be able to trade with the UK after the end of the transitional period. Take action now. You can read what you can do in our blog: pallet transport after Brexit.

An EORI (Economic Operators Registration and Identification) number is an identification number that you need if you do business across the border and have to deal with Customs when you file a declaration or have it filed. Soon, this will also be the case for trade with the UK. If you do not yet have this number, you can submit an application to Customs. There are no further costs involved, but it may take a long time. For more information about the EORI number and how to apply for it, please visit the site of the Tax and Customs Administration.

Consignments to and from the UK are currently classified as ‘intra-Community supplies and acquisitions’. This will no longer be the case after Brexit. That means there will be VAT on imports and exports. This also means that VAT will have to be paid immediately upon import of the goods. It is also possible that the VAT is reverse charged to the monthly returns. However, you need an Article 23 permit (reverse charges) for this. You can request this from the tax authorities. For more information, see VAT and doing business outside the EU.

The Confederation of Netherlands Industry and Employers (VNO-NCW) and SME Netherlands (MKB-Nederland) have set up a special Brexit task force with the government and numerous sector organisations to think together and provide input throughout the process. In Europe, traders give their input through Business Europe.

If you are trading with the UK and your company appears to be affected by the consequences of Brexit, you can get a subsidy with the Brexit voucher for advice on alternative markets and the effects of Brexit on your company. You can apply for Brexit vouchers at the Netherlands Enterprise Agency via mijn.rvo.nl. There are several conditions attached to these vouchers. For more information, see the Brexit Loket (Brexit help portal).

For more information, we would like to refer you to our blog: pallet transport after Brexit. If you do not find what you are looking for, you can ask us about your pallet transport to and from the United Kingdom after Brexit by sending an email to brexit@ctsgroup.nl.

For general developments regarding Brexit and its consequences, please visit the websites below.

• TLN
• evofenedex
• EU Exit Campaign (English)
• My Brexit (English)