As of January 1st, 2021, the United Kingdom (UK) will leave The European Union (EU) and will from that point on be considered a third country (3.), same as all other countries outside the EU.
What significance does it have for your business and what should you be aware of?
- Export declarations must be made to the UK on everything sent-out after January 1st, 2021.
- Going forward, make sure to get your goods to the UK through a bonded warehouse, to save on duty in DK. However, be aware that since it is “T1 goods” that are sent to a 3. country, your carrier will have to issue a “T1 shipping document” when picking up the goods. This is the same way as when exporting to other 3. countries from bonded warehouses. Depending on your agreement with the carrier, this could also result in an extra cost, in addition to the Freight cost.
- If your goods are usually sold as DDP, make sure to change your Incoterm to DAT or DAP, so you do not risk a claim for payment of customs duties in the UK. Only if you have a company in UK, does it make sense to sell DDP, as you can make an invoice issued to your own company in UK.
- If you sell via a webshop to the UK, be aware that duty and VAT, as well as costs on the item, are used to issue the customs documents.
- When making new commercial agreements, you must invoke “force majeure” in relation to Brexit, so you are secured if the UK imposes new import-requirements - those that you do not have the possibility to live up to - on already produced/shipped goods. Examples could be new labeling rules, import licenses, etc.
- Feel free to make a clause in your agreement regarding responsibilities, costs and distribution of these, if Brexit might cause an issue for you in these areas. This could for example include delivery, waiting time at the border, etc.
- Trademarks and design-rights must be applied nationally to the UK Trademark authorities if you have these rights today and wish to protect them in the future, whereupon the if UK is not subject to EU regulations.
Trade-agreement between EU and UK
Currently, there are many rumors about a Trade-agreement, but it remains to be seen whether this will come to fruition. If the parties do not reach an agreement, customs duties will be imposed on all EU goods exported to the UK. Latest news is that the deadline for completion of the agreement is on the 15th of October, 2020.
Standards – The CE mark
At the end of the transition period, you should be aware that a new UK “counterpart” to the CE mark, the so-called UKCA mark, will be introduced. For a limited time period, that is yet to be determined, both the UKCA mark and the CE mark will be concurrently accepted in the UK.
At the end of this limited period, the UKCA mark will replace the CE mark entirely. The requirements for the UKCA mark are intended to fully match the CE mark, but you should be aware that the UK may introduce standards that differ from the European ones, unless otherwise agreed upon in the future.
After the transition period, UK will continue as a member of the European standardization organizations, CEN and Cenelec. This means that all European standards must continue to apply in the UK and that there may not be any national UK standards that conflict with European standards.
You can see an overview of the harmonized standards on the Danish Standards website.
You can also read the latest developments in relation to British standardization practices on the website here.
Virk.dk has made a checklist for companies, to check if they are ready for Brexit.
Link to BREXIT-checklist - https://startvaekst.virk.dk/brexit-tjekliste
- Note this is only in Danish.
A Webinar about Brexit
Danish Customs is hosting a webinar about Brexit and we recommend all our customers to participate.
Here you will also be able to ask questions and get answers directly from the Danish Customs.
If you have any questions regarding the daily set-up, do not hesitate to contact us.
- Customs Manager: Jesper Knudsen, email@example.com, +45 2788 0260
- Customs Consultant: Maybrith Arpe-Sørensen, firstname.lastname@example.org, +45 7632 0333