Consequences on Import and export of goods.

March 29, 2019 will be two years since the United Kingdom of Great Britain and Northern Ireland, hereinafter referred to as the United Kingdom, notified the European Council of its intention to withdraw from the European Union (BREXIT).

Accordingly and in accordance with Article 50 (2) of the Treaty on European Union, as from 23:00 on 29 March 2019, the United Kingdom shall cease to be a Member State of the European Union, unless by that date withdraw the said notification or an extension of the withdrawal period by the European Council.

Negotiations between the European Union and the United Kingdom with a view to the conclusion of an Exit Agreement, whose project establishes a transitional period until 31 December 2020 (see Article 126 of Draft Exit Agreement) during which, and in accordance with the Exit Agreement, the United Kingdom will continue to apply, and to be subject to, Union law.

Upon the exit from the United Kingdom of the European Union or, if there is an Exit Agreement, with the end of the transitional period, the entry into the customs territory of the Union of goods and goods from the United Kingdom or the exit from the said territory of goods and destined for the United Kingdom shall be subject to compliance with the procedures laid down by customs legislation, in particular the presentation of customs declarations of import and export and, on importation (release for free circulation), the obligation to pay import duties and other charges.

For undertakings exporting and importing under preferential arrangements, the following document is recommended: BREXIT – Consequences on the preferential origin of the goods – Preferential Origin.

Thus, in the absence of withdrawal of the notification of exit by the United Kingdom or extension of the exit period by the European Council, trade in goods and merchandise with the United Kingdom shall be subject to customs formalities as from:

  • From March 29, 2019 (11:00 PM), with no Exit Agreement;
  • From January 1, 2021, with an Exit Agreement.

For the purposes of clarifying citizens and businesses, the European Commission has published several notices on the impact of BREXIT.

In tax and customs matters, the following should be highlighted, which are recommended for reading:

  • Customs and indirect taxation;
  • Import / Export License;
  • Intellectual Property Rights;
  • Preferred Source of Goods;
  • Value Added Tax.

For more information and news on BREXIT, it is advisable to consult the Working Group’s website for the preparation and conduct of negotiations with the United Kingdom under Article 50 of the Treaty on European Union (TEU).

Source: Portal de Finanças