The key information and guidance you need to know if your startup exports to the EU.
Read time: 2 minutes
What has changed from a legal and process standpoint since 1 January 2021
A checklist that includes, EORI number, good declarations
New paperwork to complete, licences and procedures
The UK signed a trade agreement with the EU on 24 December 2020, which governs trade relations from 1 January 2021. Here we look at how the new deal could affect your startup if it exports to the EU or Northern Ireland.
The deal signed and approved on Christmas Eve was a “zero tariff, zero quota” agreement. It removed the risk of tariffs being applied to UK products exported to the EU but businesses will still have to be ready for extra checks and paperwork at borders. Specific rules have been drawn up for certain sectors, including, chemical and pharmaceutical.
Licences, duties and taxes
The licenses your startup is required to obtain or the duties it is subject to for exporting its products will depend on a number of factors such as their value and where they originated from.
The ‘Rules of Origin’ provision means that any goods may be subject to a customs levy if they arrive in Britain from an EU or a non EU country and are then exported to the EU. This means having to obtain a statement of origin from the exporter or the importer of record. Goods received from an EU country and then exported back to the EU may be subject to customs unless they have been through significant economic change.
An agreement was not met on the regulatory equivalence between the EU and the UK on financial services. This is expected to be addressed in the next phase of negotiations.
You can read the complete government guidance on the new rules for both importing and exporting here.
Brexit export checklist
Make sure you have a GB Economic Operator Registration and Identification (EORI) number. If you trade with Northern Ireland, you may also need an XI EORI number. You need this in order to move goods between the UK and non-EU countries. If you do not have one, you may have increased costs and delays. You can find out how to get an EORI number here.
Check whether the goods you are exporting are classified as standard, controlled or high-risk.
Are you and businesses in your supply chain preparing to submit import and export declarations on goods moving between the UK and the EU? You can familiarise yourself with the latest customs declaration information here.
Have you considered VAT and other tax considerations? You can find out more about your VAT responsibilities here.
Have you alerted customers and suppliers that delivery dates could be delayed?
For more guidance, visit our Brexit Hub.