Find out about simplified customs processes for UK businesses trading with the EU in a no-deal Brexit.
You will need to declare goods imported into the UK by submitting a customs declaration. Once the goods have been cleared by HMRC, you’ll need to pay any duty and tax owed.
Check what you need to do if you’re:
- an existing authorisation holder and trade goods with the rest of the world as well as the EU
- registered for VAT as you can account for import VAT on your next VAT Return
When we refer to import VAT in this guidance, it’s for importers who are not registered for VAT.
Importing with an agent
If you use a customs agent to import, you can use the customs freight simplified procedures.
If you’re not authorised to use the customs freight simplified procedures but still want to benefit from it, ask a customs intermediary (who has HMRC authorisation) to use the procedure on your behalf.
You’ll need a duty deferment account and will still be liable for any customs duty, excise duty or VAT due.
Importing without an agent
If you do not use a customs agent to import you can use:
- new transitional simplified procedures
- customs freight simplified procedures
Transitional simplified procedures
Transitional simplified procedures are simple measures to make importing as easy as possible for you. Register for transitional simplified procedures to transport your goods into the UK without having to make a full customs declaration in advance.
You’ll also need a duty deferment account.
Customs freight simplified procedures
Customs freight simplified procedures is another way to access simplified processes, but HMRC must authorise you to use these.
You will also need a duty deferment account.
Goods that you’ll modify or are a part for something else
If you modify your goods or they’re a part for something else, you can use:
- inward processing relief
- outward processing relief
Inward processing relief
Inward processing relief allows you to suspend customs duty and import VAT on goods that you import while they’re being repaired or processed. For example, if you import sheet metal into the UK to turn into a car chassis and then export it to Germany.
You can then export the goods or enter them into another customs procedure without paying duty or VAT. You’ll pay customs duties and VAT when the goods are in free circulation.
You can choose to base the duties you’ll pay on the value of the goods at import, or the value of the final product after processing.
Outward processing relief
Outward processing relief allows you to temporarily export goods from the UK for processing or repair and then claim full or partial duty relief from UK customs duty when you re-import them. For example, if you export buttons from the UK to be sewn on to shirts in Italy, then import the shirts back into the UK for sale.
Goods that are in the UK temporarily and are not modified
For goods that are in the UK temporarily and have not been modified, you can use:
- temporary admission
- ATA carnets
Temporary admission is a customs procedure that allows you to import non-UK goods temporarily in to the UK:
- under certain conditions
- for a specified period of time
- with either total or partial relief from customs charges
Temporary admission is useful if you temporarily import goods such as:
- samples of your goods - for example, carpet samples
- professional equipment - for example, instruments for a touring orchestra
- items for auction - for example, vintage wines for auction
- items for exhibition - for example, artworks on loan to galleries
- items for demonstration
You cannot alter these goods while they’re in the UK. Using temporary admission means any import duty or import VAT is suspended as long as you remove the goods from the UK at a later date.
The ATA Carnet is an international customs document that allows you to temporarily import commercial samples, professional equipment or goods (for example if you’re going to a trade fair or exhibition).
If you have an ATA Carnet you can use a single document to clear goods through customs in countries that are part of the ATA Carnet system.
If you do not have an ATA Carnet you must go through each country’s customs procedures for the temporary admission of goods.
Find out more about ATA Carnets and how to apply for one, and moving goods with an ATA Carnet through the:
Moving goods within the UK and across partner countries
If you move goods across multiple borders, you can use transit.
Importing goods that meet defined criteria
If you import goods that meet defined criteria, you can apply for authorised use.
Authorised use (or end use) is a customs procedure where goods arriving in the UK may qualify for a reduced or zero rate of duty. This is as long as they’re put to certain uses specified by HMRC. These goods include:
- shipwork goods
- aircraft and parts
- hydrocarbon oil
- marine propulsion engines
- military equipment
- casein (used in the cheese industry)
This helps UK traders to be more competitive in certain trade sectors.
To qualify, your products will need to meet defined criteria and you’ll need to be able to identify them in the Trade Tariff.
Find out how to use the Trade Tariff for end-use.
Running a storage facility
If you run a storage facility, you can apply for authorisation to operate either a:
- customs warehouse
- temporary storage facility
Operating a customs warehouse allows you to store goods for traders on which customs duty and import VAT payments are suspended whilst you store the goods in your HMRC approved warehouse.
Once the goods leave your warehouse, the importer must pay the duty unless the goods are exported or moved to another customs procedure.
Temporary storage facility
A temporary storage facility is a place close to or in a seaport or airport, where you can store goods under customs supervision before being:
- placed under a customs procedure
- released to free circulation by duty being paid
- exported outside of the UK
Traders authorised to receive goods moved under Common Transit Convention at their premises (known as authorised consignees) will need to have a temporary storage facility.
Apply to Border Force to operate a temporary storage facility.
A duty deferment account allows you to pay your customs duties, import VAT and excise duties monthly by direct debit, rather than having to pay immediately each time you clear your goods through customs.
If you have customs duties, excise duties or import VAT to pay, you’ll need to have a duty deferment account to import goods using either:
- transitional simplified procedures
- customs freight simplified procedures
You do not need a deferment account for your import VAT if you’re accounting for it on your VAT Return.
If you have duties or taxes to pay, HMRC will take your direct debit in the same month that you submit your supplementary declaration. This will be on the 15th day of the month (or the next working day if the 15th is on a weekend).
We’ll take any excise duties on the 29th of the month (or the previous working day if the 29th is on a weekend).
Check what the tariffs will be, to see whether you’ll need to pay customs duties on your goods.
Apply to HMRC for a duty deferment account to defer any duties, import VAT or excise duties payable.
This guidance will be updated to tell you when you must have secured a financial guarantee from an approved financial institution to cover the amount of duty you defer. Guarantees can take several weeks to set up, so you need to contact your bank or insurer in good time.
Guarantees for moving goods or deferring duty
You will need a guarantee to move goods under the CTC procedure and to become an authorised consignor. This is an agreement to cover a customs debt or import VAT that’s arisen (or will arise) when duty is suspended and is needed because customs duty is not paid straight away.
You can use:
A comprehensive guarantee allows you to cover multiple debts under one guarantee. Traders must meet specific competence and compliance criteria to use a comprehensive guarantee.
Other customs simplifications, special procedures and temporary storage
You’ll need to give a guarantee to defer duty, but do not need to be authorised by HMRC to give one. For at least 12 months after Brexit, you will not need to give a guarantee to be authorised for the following:
- customs warehousing
- temporary admission
- inward processing
- outward processing
- authorised use
- temporary storage
This will mean that you can get your authorisation quickly. In some cases, HMRC will ask you to give a guarantee when you apply, for example, where your previous compliance history or the background of your employees shows that there’s a risk that you cannot not pay duties due.
Authorised economic operator status
Authorised economic operator status is recognised internationally as a quality mark. It shows that your role in the international supply chain is secure and your customs controls and procedures are efficient.
Depending on the type of authorised economic operator authorisation you apply for and are granted, benefits can include easier access to certain customs simplifications and deferment guarantee reductions or waivers.
To apply for UK authorised economic operator status you must meet a criteria including an appropriate record of compliance with customs legislation. HMRC checks the information you give and verifies this through a site visit.
Only businesses that are heavily involved in importing and exporting are likely to benefit. Most businesses will find that the registration for transitional simplified procedures is the best option for preparing for a no-deal Brexit.