On the 31st of December 2020 an eleven month transition period will end and the UK will finally exit the EU.
Importantly this will not only impact our trade with the EU but also our Global trading partners. No matter how the negotiations with the EU go the end of “Transition” will inevitably impact UK international trade.
January 1st 2021 will see all international trade subject to customs control, for those companies who have only ever traded with the EU this is going to be very different and probably difficult. Companies who have a history of trading with the rest of the world should be better equipped to cope with the change, but even they may see changes in duty rates.
A new customs tariff has been published with updated rates of duty, meanwhile the government is busy negotiating replacement trade deals with the rest of the world. These negotiations may result in UK exports being subject to different rates of duty at destination than have been available to exporters as part of the EU trading block.
It is imperative all companies involved in imports and exports prepare for this, failure to do so could mean a failed business.
Attached is a letter the Government has sent to every VAT registered company detailing some basic steps every international trading company should make.