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Some important advice from John O'Loughlin of @PwC ahead of January 1 2021 during a webcast alongside @GavinBarwell @carinbryans and @mcgeedavid. Basically any Irish companies which export to the UK or import from the UK should know the following:
2/ "At a minimum you need a EORI number, the equivalent of a VAT number, you need that to lodge a customs declaration. The people that lodge a customs declaration aren’t the company themselves nor is it someone like PWC, but it’s a customs agent...
3/ "They file and prepare the documentation..., you need to engage the services of a customs broker, have a mechanism to pay the customs duty and the right information and documentation to support tthe importation of those goods.
4/ "Without those steps in place in very simple terms goods don’t move. They’re going to be stuck at the border, depending on which side of the border you’re on, whether you’re importing into Ireland or exporting to the UK...
5/ "...goods are going to remain stuck and you’re not effectively in business at that stage."
Contracts: "Who is responsible in a supply chain for import and export activities...? Dont’ make assumptions, don’t assume your customer or supplier will take that risk.
Contracts: "Who is responsible in a supply chain for import and export activities...? Dont’ make assumptions, don’t assume your customer or supplier will take that risk.
6/ "We’re seeing problems arise now on VAT, particularly for non established companies, so that might be an Irish company looking to import into the UK or a UK company looking to import into Ireland. That is raising a significant amount of challenges."
7/ Finally, beware the rules of origin, even if the EU/UK conclude an FTA.
"The FTA will eliminate duties for goods moving to + from the UK + EU but it’s conditional on those goods originating. They have to be manufactured in the EU to get duty free access in the UK + vice versa
"The FTA will eliminate duties for goods moving to + from the UK + EU but it’s conditional on those goods originating. They have to be manufactured in the EU to get duty free access in the UK + vice versa
8/ "A lot of the goods we import are just in time and come through a UK warehouse. Clothing, furnishings, toys. They move from the Far East, through the UK and into Ireland. In that instance an FTA is irrelevant.
9/ "They are Chinese or Vietnamese originating and duty will apply. In that supply chain, not only one duty but possibly a double duty. That’s where customs planning kicks in."
