Getting ready for Brexit
Why is Carousel well-positioned to help with Brexit?
Carousel has more than 30 years’ experience in customs and clearance.
Having launched our Brexit Action Team and Helpline in 2018, we are perfectly positioned to offer expertise, time-critical services and solution design advice. Here's just a short overview of the key services Carousel can support with:
- Additional warehousing throughout the UK and in Europe
- Bonded warehousing
- Daytime flights and extra capacity on routes from Baden-Baden and other key European destinations
- Express line haul services, supporting a just in time logistics model
- Customs clearance and cross border expertise.
What is Carousel doing to prepare for a Hard Brexit?
Carousel is very experienced in time-critical transport solutions with 'complex' logistics requirements and highly specialised in customs clearance and compliance. As such we are able to offer fast and tailor-made solutions for your shipment even after the Brexit. We are fully AEO-certified and have the competence and capability to keep your parts and products moving, no matter the outcome.
We are continuing to monitor the Brexit situation closely and if you're signed up to our client newsletter, you as soon as any significant developments are confirmed - please look out for these updates from us. If you're not receiving updates from us, but want to, please let us know.
What do I need to do now?
From a trading point of view, nothing will change until a trade deal can be reached. Carousel can confirm that we will not be changing our export and import requirements in the foreseeable future and you should carry on sending time-critical freight as normal.
Whilst we are in this transition period, the UK Government will negotiate with the EU to decide what tariffs and processes will be applicable from midnight 31 December 2020 onwards. There are big battles ahead on things such as what constitutes a level competitive playing field and over fishing rights, financial services, data protection, and the jurisdiction of EU law.
However, the important thing to remember is that, despite the transition period, the Brexit process remains uncertain and a ‘No Deal’ scenario is still a possibility as the Government is adamant that the transition period will not be extended. As such, we will continue to prepare for all scenarios, and we urge you to do the same.
What can I do to prepare for a Hard Brexit?
It's important to note that previously introduced easements, such as TSP (Transitional Simplified Procedures) have now been suspended. (Update from HMRC on 30 January 2020) They are no longer available until the Government provides a confirmed directive. If you’ve already applied for this service, we recommend you keep all paperwork safe until more details are known.
In addition to the above, temporary tariffs and postponed VAT accounting are also currently not available during the implementation period.
There are however a few things you can do to get prepared now. Here are a few questions to ask yourself:
1. Have you appointed your customs broker?
To avoid any unnecessary clearance delays, we recommend all Carousel clients use us and our partners for all customs clearance work. There are some documentation you need to complete to appoint Carousel as your customs agent. Please speak to your Key Contact if you're unsure of what to do.
2. Do you have your Economic Operator Registration and Identification (EORI) number?
You’ll need a UK EORI number that starts with the letters ‘GB’ to be able to submit customs declarations to move goods between GB and the EU after the implementation period ends.
If you already have a UK EORI number starting with ‘GB’, keep it safe as you will need it when the implementation period ends. If not, you should register for one at www.gov.uk/eori. Don’t worry, it’s quick and easy to do.
3. Have you reviewed your Incoterms?
Under current arrangements, a business which imports from the EU will not pay customs duties because the UK is part of the EU Customs Union. But in a "no deal" Brexit scenario, tariffs are likely to be payable. Be sure to review Incoterms as part of your Brexit preparations. Some terms may incur costs before the details of a possible agreement and future legislation in the UK are fully known.
4. Are you CFSP registered?
Administered by HMRC, Customs Freight Simplified Procedures (CFSP) is an electronic customs system for imported third country goods. It allows faster release of goods from countries that are not members of the European Community. CFSP isn't compulsory but you may find it useful. Speak to us if you'd like to find out more about this.
What is an AEO status and what does it mean for me?
AEO is an internationally recognised mark that simplifies customs procedures and authenticates that Carousel’s customs controls meet EU and HMRC standards to help mitigate delays that could occur in a ‘No Deal’ Brexit scenario.
Across our group of companies our AEO certification allows Carousel to accelerate import and export procedures and facilitate ‘Just-In-Time’ logistics solutions, should a ‘No Deal’ or 'Hard Brexit' happen.
The accreditation guarantee Carousel clients: fast-tracked Customs’ control; less need to provide as many mandatory declarations and prior notification of any inspections relating to safety, security and customs’ legislation. Carousel’s German entity will also be able to move goods into temporary storage between different member states. These benefits allow Carousel to offer clients:
- The latest possible pick-ups
- Earlier deliveries
- Improved visibility and control on consignments
- Fewer delays
- Better inventory management
- Streamlined processes.