Import of food and alcohol from Europe to Great Britain after Brexit

Great Britain left the European Union on January 31, 2020. On January 1, 2021, all companies based in the United Kingdom became for the EU companies based in a third country. This has greatly changed the nature of trade relations. The participation of Great Britain in the single market and the EU customs union has ended, and the free movement of goods, services and people has also ended. And although it has just been a year since the changes, many exporters still have a problem with adapting to the new legal regulations.

Brexit made the flow of goods and services between Great Britain and the European Union quite problematic - the United Kingdom gained the status of a third country under the EU customs, excise and VAT regulations. The greatest difficulty for European exporters and British importers was the adaptation to the new customs regulations, formalities and the need to meet new requirements (including the purchase of specific licenses) in order to be able to continue the current activity.

What does the import of European food and excise products into the UK look like today?

Necessary customs formalities

From January 1, 2021, one of the basic requirements is to have an EORI registration and identification number. This obligation applies to all entrepreneurs who export goods to the UK or import British products into the EU. Without an EORI registration number, it will not be possible to complete all customs formalities. Importantly, all permits for authorized entrepreneurs and other permits issued by the United Kingdom have also expired in the EU. Entrepreneurs who previously based their activities on them were forced to apply for a new EU permit in one of the EU Member States.

In addition to the need to obtain an EORI number, economic operators have to register in the customs administration systems, present the goods to the customs authorities during their clearance and make customs declarations. Here, some elements of the entire procedure are difficult - including the issue of the correct duty rate, the correct classification of goods or their value. A certain facilitation may be the fact that, as a rule, customs declarations are submitted in electronic form via appropriate IT systems. The entrepreneur can also use the services of customs agencies, but this solution is associated with the need to incur additional costs.

Customs and preferential treatment of goods

From January 1, 2021, the rules of the origin of goods have also changed. In order for them to be given preferential treatment, their origin must be proven, based on an appropriate agreement between the United Kingdom and the EU. If there is no specific contract or the entrepreneur fails to prove the origin of the goods, they will be subject to customs duties.

Brexit and VAT

Following the end of the transition period, the United Kingdom was no longer subject to EU VAT rules as it had lost its status as a Member State. This means that the movement of goods, previously constituting an "intra-community supply" or "intra-community acquisition of goods" (B2C transactions), will be replaced by import and export of goods.

In practice, this means a change in the current settlement rules. Entrepreneurs importing goods from the United Kingdom are now required to calculate and report the VAT due on the imported goods in customs declarations. From January 1, 2021, the tax base itself has also changed - now, as a rule, it is the customs value of imported goods increased by the duty due and other calculation elements indicated in the VAT Act.

In the case of exports from Poland to the United Kingdom, taxpayers often have a problem with determining whether the export of certain goods will require VAT in Poland and whether it will be possible to apply the 0% VAT rate. The entrepreneur dealing with the export should first of all determine whether in a given situation there is export within the meaning of VAT and determine which entity involved in the supply chain should be the exporter within the meaning of customs regulations. It is also necessary to implement internal procedures for completing and archiving documentation, which is necessary to apply the 0% VAT rate in exports.

Alcohol and excise products

From January 1, 2021, the movement of alcoholic products (and other excise products) between the European Union and Great Britain is also more difficult. Excise duty is charged when importing excise goods from the UK into the EU. It is collected when these products are placed on the market. Other customs laws also apply. Certainly, many entrepreneurs negatively felt the inability to use the EMCS system (Excise Goods Movement and Supervision System). In the case of import from Great Britain, it is necessary to submit a customs transport declaration.

On the other hand, in the case of introducing excise goods from the territory of the EU to the United Kingdom, the entrepreneur must submit the so-called export customs declaration. The fulfillment of obligations must be in accordance with the regulations on import / export from / to third countries.

Please note that both in the case of importing excise goods from the UK to the EU or exporting excise goods from the EU to the UK, the taxpayer is required to specify the amount of excise duty payable in customs declarations.

Changes in the field of etiquette

From January 1, 2021, the European Union and the United Kingdom are two separate legal areas. This means that products imported from the EU to Great Britain must meet certain requirements imposed by that country and comply with British standards set out in the regulations. It is also the other way round - all goods imported from Great Britain into the European Union must comply with EU standards and regulations and be subject to all customs controls.

This change also has consequences for the marking or labeling of products placed on the EU market. Products containing data from UK-based authorities or persons no longer comply with EU labeling rules.

Entrepreneurs must also remember that in some cases it is necessary to obtain a permit to export or import to a third country.

Northern Ireland is a "green island" of trade

It should be emphasized that the consequences of Brexit do not yet apply to the entire territory of Great Britain. The exception is Northern Ireland, for which a special protocol was issued, valid at least until the end of 2024 (it is possible to extend this period). On its basis, all transactions related to the movement of goods between the EU and Northern Ireland are treated in the same way as for EU intra-Community transactions. Therefore, it is recommended that EU taxpayers pay attention to where their UK counterparties are located - as they may find that import and export procedures are simpler.

Further changes in 2022

2022 will bring further changes in the import / export procedures between the EU and Great Britain. What can we expect?

First of all, from January 1, 2022, import customs declarations are required for all goods. The possibility of postponing customs clearance has also disappeared. You should also expect customs inspections of the cable from the territory of the European Union. In addition, there are additional formalities related to importing to Great Britain - the service of moving goods vehicles (the so-called GVMS) has become obligatory, there has also been a need to pre-notify products of animal origin (POAO) and document controls in the British IPAFFS system.

These are not the only changes - the next ones will come into force in July 2022. Then, a Safety and Protection Declaration (ENS) will be required for all imports from the UK, and an Export Health Certificate (POAO) will be required for products of animal origin. In addition, pre-notification of sanitary and phytosanitary products in the British IPAFFS system will become mandatory, and physical checks at border inspection posts for animals, products of animal origin and plants and plant products are also to be more frequent.