Brexit Customs

Depending on what day of the week it is this diagram may or may not represent the current state of Brexit. It has been a moving feast for nearly 6 years. For those of you that are confused at this point – The UK did leave the EU at 11 p.m. GMT on 31 January 2020. As Boris Johnston said at the time ” Brexit is done”.

But, for those us who have to deal with the aftermath the key date was 31 December 2020 at 11pm GMT. That was when the transition period ended and the EU rules, that continued to temporarily apply during the transition period, ceased to apply.

Brexit has been one of the most polarizing issues of recent decades. Everyone has had an opinion and continues to do so!

Brexit Customs Grace Periods

So for 2021 the EU tried to implement as much of the changes as they could. This was so that checks and balances could be made on goods movements between GB and EU in both directions.

However, the UK decided to allow some grace periods. This was to facilitate businesses and departments who weren’t quite ready for full scale checks. These grace periods initially for 3 months were inevitably extended and reextended.

GB allowed for the deferral of customs clearance lodgements for up to 175 days during 2021. While on the other hand, the ROI requires prelodgment ie before departure, in most instances. This has resulted in a lopsided Brexit.

The clearance deferrals in GB came to an end at 1 Jan 2022 except in relation to movements to and from the ROI. This was due to the ever-ongoing turmoil and negotiations over the Northern Ireland Protocol (“NIP”).

Brexit Customs Northern Ireland Protocol

If Brexit has been polarizing then the NIP has been the most divisive piece of the whole process. Under the agreed terms of the trade agreement between the EU and the UK checks are required on goods moving from GB to Northern Ireland. This is because Northern Ireland is treated as a gateway to the EU Customs Union. Checks at the Northern Ireland ports and airports (known as the “sea border”) were seen as preferable to a land border on the island during the course of the Brexit negotiations. However during the implementation phase in 2021 they caused a lot of consternation and the full extent of the required checks is still being re- negotiated at UK/EU level. The most recent change has been the vote in the UK parliament to replace the NIP with a traffic light Red/Green routing system the details of which have yet to be ironed out.

If you have any questions about our Brexit related Customs and VAT services please contact us.