2021 Post Brexit Trading Scenarios
9th November 2020
The process for importing and exporting goods to and from the EU will change at the end of the EU exit transition period. Businesses in Great Britain need to take the following action to continue trading with EU countries from 1st January 2021.
Definition of Great Britain and the EU
Great Britain is made up of England, Wales and Scotland. The European Union (EU) consists of 27 member states: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
There is a separate protocol for trading and moving goods to and through Northern Ireland after the transition period.
two likely Post Brexit Trading scenarios
The future trade relationship between the UK and EU depends on the outcome of current negotiations between the two parties. While nothing will change until the post-Brexit transition period ends on December 31st 2020, there are currently two likely scenarios that UK-EU trade will be conducted under from January 1st 2021.
A Free Trade Agreement (FTA)
The UK and EU are aiming to conclude an FTA by the end of the transition period. The details of this are still unknown but it is likely that an FTA would mean, broadly, that tariffs and quotas would not be applied on the majority of goods traded between the UK and EU, there could be some exemptions to this however. It’s important to emphasise that even with an FTA the need for customs checks, additional paperwork and other formalities will still be required from January 1st 2021.
If an FTA cannot be agreed by the end of the transition period, the UK and the EU will trade on World Trade Organisation (WTO) terms. Shipments will be subject to customs clearance, inspections & shipping processes similar to those already enforced for goods being shipped between the UK & countries external to the EU.
We’re happy to provide it – just get in touch!
AEO certified & with years of experience in handling customs formalities, Spatial Global have the knowledge and expertise to assist clients in submitting export & import declarations. We access customs directly via our operating system, processing and transmitting numerous entries every day. Simply get in touch with us & we’ll help find the most appropriate solution to meet your specific requirements.
Brexit Transition Hub - keeping you informed
The 'Brexit Transition Hub' is designed to help businesses navigate the flow of information being released by providing simple guidance and practical advice for all eventualities wherever possible. Plus provide access to one-to-one support to help answer any specific concerns related to importing or exporting.
Brexit Transition Hub includes:
- An Importer's Checklist for Brexit Transition
- An Exporter's Checklist for Brexit Transition
- VAT Deferral on Imports
- Common Transit Convention Explained
- New Commercial Invoice Template
- Customs Authorisation Template
- 2021 Post Brexit Trading Scenarios
And much, much more…
As an EU certified AEO customs operator in many European countries you don’t have to be a customs specialist yourself – leave it to us. Simply get in touch with us and we’ll handle your customs declarations in your own language and in due time.
Information published here is correct, to the best of our knowledge and belief, at the time of publishing but we take no responsibility in the event of incorrect or misleading information. This service is provided free of charge and without liability or obligation.