Transit Procedure Can Cut Brexit Customs Costs

15 Oct 2019 | 03.10 pm

Transit Procedure Can Cut Brexit Customs Costs

The government is urging companies to prepare for Brexit by availing of the Customs Transit Procedure to cut transit costs

15 Oct 2019 | 03.10 pm

Businesses are this week being urged by the government to make sure they are ready to avail of the Customs Transit Procedure for moving goods through the UK Landbridge post-Brexit.

The Customs Transit Procedure removes the requirement for businesses who are transiting goods through a non-EU country to pay duties and complete customs declarations when they enter the country and again when they leave it to re-enter the EU.

However, to use the Customs Transit Procedure a business must have a Revenue-authorised Comprehensive Guarantee, which covers Transit through third countries, which the UK will be post-Brexit.

Importantly, to avail of the Transit element of that guarantee, a business must also have in place a financial guarantee from a bank, to cover potential and actual customs debts such as customs and taxes associated with goods transiting the UK.

Business minister Heather Humphreys (pictured) stressed that it takes time to put the Customs Transit Procedure in place, so companies should start planning for it immediately.

Financial Guarantee

The minister added that the government’s Credit Guarantee Scheme can also be used by businesses to back their financial guarantee from a bank. The scheme can be availed of through Bank of Ireland, Ulster Bank and AIB, and it provides an 80% guarantee to the banks on qualifying facilities to SMEs.

“Whether you’re a cement manufacturer exporting to Germany or a florist importing flowers from Holland using the UK Landbridge, I urge you to contact Revenue and your bank or financial providers straight away,” said Minister Humphreys.

“Alternatively, you can engage a customs agent or logistics company to do so. Whichever procedure you choose, you need to begin the process without delay.”

Details on the Customs Transit Procedure can be found here.

For information on the Credit Guarantee Scheme, see here.

 

 

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