The end of the transition phase

Finally, the BREXIT has come - it is escorted by a free trade agreement.

It has been indicated for months but it has come into effect: The transitional phase of the United Kingdom's exit from the EU is over. Thus, the UK acquired the status of a third country under customs, export control and VAT law and is no longer part of the EU Single Market and the EU Customs Union. (Special rules apply in relation to Northern Ireland).

Around the BREXIT and the Trade and Cooperation Agreement, which was reached after months of negotiating shortly before the closing date on 24 December 2020 and which is provisionally in force since 1 January 2021, there is a range of new regulations and changes that are already in force or will come into force. For example, companies will have to check how to act in terms of their EORI numbers or authorizations, or whether their goods meet the requirements of the rules of origin in order to be covered by preferential tariff treatment. Procedures that were previously required, such as Low Value Consignment Relief, are being cancelled and new ones introduced.

Furthermore, third country status also affects foreign trade and export control law. Deliveries of goods and the transmission of software and technology from the EU now constitute exports. Especially with regard to dual-use goods, licensing requirements must be taken into account, which were not relevant to this extent until now. In addition, restrictions may also arise, for example, in the area of brokering.

It has already become clear in the last few days that the BREXIT like it is will not make things any easier overall (as also illustrated by the abundance of FAQs, guides and summaries of the last weeks and months). Some topics are still unclear and only time will tell. A close examination of current procedures and adjustments in internal processes is necessary to ensure that the changed requirements can be met and that companies do not run the risk of sanctions.

With many years of expertise in VAT law, customs law and export control, the AWB team will be happy to assist you with all these questions and developments to ensure that your trade with the UK continues to run smoothly in the future. Feel free to contact us!

We look forward to supporting and advising you!

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