I understand that as a Free Trade Agreement (FTA) was reached with the EU, no customs duties are payable on goods imports from and exports to the EU?
Free Trade Agreement EU
If it was only that simple. Whilst the FTA means that most movements of goods between the UK and EU will not have customs duty on them, duty could still be payable if the goods originate from outside of the UK or EU (or even if they comprise of components from outside the UK or EU). This is a complex area where principle has got in the way of practicalities. There is a 12–month transition phase with reduced reporting.
All goods moving between the UK and EU will require some form of customs declarations, so more red tape and cost. However, between 1 January 2021 and 30 June 2021 these declarations can be postponed.
Typically, a UK business will be the exporter of the goods from the UK. As the exporter, the seller must ensure that export declarations are lodged with UK Customs and that any necessary export licences are obtained for controlled goods. The reverse will be true where you are purchasing goods from the EU.
Most SME’s will use a freight forwarder to handle the customs paperwork. The most important information to collate is to get the origin, value and identification of the goods right so that you pay the correct (including no) customs duty.
