How the Brexit Trade Deal will Affect Us

Everyone is aware that the UK exited the EU on the 1^st January and thankfully at the very last moment a trade deal was agreed and it is now in operation and Premier Components, like many importers and exporters, have experienced some delays due to the new rules, regulations and documents that now apply.

Premier Components have been working extremely diligently with their customers, suppliers and third parties such as logistics and IT suppliers to ensure that we are fully compliant and that any delays are minimised. We would like to thank everyone for their patience and understanding as we all adapt to this new way of working.

By way of a small update we have laid out the main areas that have changed and where new documentation and procedures are applicable:

Customs Declarations

Customs declarations will now be required at both export and import, both here in the UK and in the EU. In addition to this, import Vat will apply and will be payable based on the rules of the member state in the EU. The agreement does not affect arrangements on trade between Great Britain and Northern Ireland, which are covered under a separate protocol.

Tariffs and Quotas

There will be no tariffs on goods exported or imported between the UK and EU 27. Supplier declaration will be required from the exporter’s suppliers confirming origin of goods. If the import goods do not originate in the UK/EU add no value (or undertake minimal processes and then export to the EU) then these products will be subject to the MFN standard tariffs and duties may apply. The same goes for goods coming from the EU to the UK.

Conformity

Agreement avoids unnecessary technical barriers to trade with the EU on low-risk products, more specifically information is provided on automotive products, wine, organics, pharmaceuticals, and chemicals.

In summary:

• The UK/EU FTA eliminated duties and some invisible tariffs on goods which qualify subject to rules of origin.

• Duties will still apply (subject to the Tariff) on non-originating goods as we have left the Customs Union.
• Check conformity issues for specific goods.
• Import VAT will need to be accounted for/payable in the EU.

Whilst some of this information may seem a little overwhelming, we can assure you that we have all aspects of import and export compliance under control here at Premier Components, and we are more than happy to offer any assistance, advice, or reassurance to any of our current (or prospective) trade partners.

We are so pleased that our transition out of the EU has been successful, and that we have an exciting prosperous future ahead with the European automotive aftermarket and remanufacturing industry!