Brexit, derived from the combination of the words “Britain” and “exit,” refers to the United Kingdom’s decision to leave the European Union (EU). This process, effective on January 31, 2020, has profound implications for customs procedures, marking a significant shift in the trade relationship between the United Kingdom and EU countries.
Before Brexit, the United Kingdom was part of the EU’s single market and customs union, allowing for the free movement of goods and services among member countries without customs controls. However, after the departure, customs borders were established between the United Kingdom and the EU.
For businesses trading with the United Kingdom, this entails a series of new customs procedures. Border controls, customs declaration requirements, and specific regulations for the import and export of goods are introduced. Stricter compliance with tariff classification, product origin, and customs documentation is necessary.
Brexit also impacts delivery timelines and costs associated with the transportation of goods. Companies need to consider the additional time required for customs procedures and the potential application of tariffs. Moreover, the need to adhere to specific standards and regulations of each country adds complexity to the supply chain.
Adapting to these changes requires careful planning and, in many cases, the review and update of commercial contracts. Companies must stay informed about the latest customs regulations and possess the necessary knowledge to efficiently manage their business operations in the post-Brexit environment.
In summary, Brexit reshapes customs dynamics between the United Kingdom and the EU, introducing new procedures and challenges that require careful management by businesses involved in cross-border trade.