Whilst the Government is still confident that the UK will be able to leave the EU with a deal, guidance is being issued to help companies prepare for the prospect that the UK could leave the EU on 29 March 2019 with ‘no deal.’
In the latest development, HMRC has written to 144,000 businesses (above the VAT threshold), who currently trade with the EU only, to advise them to prepare for the possibility of a no deal scenario. The letter has a key focus on advising these businesses to apply for an EORI number now.
What is an EORI number?
Companies currently trading with countries outside of the EU are already required to apply for an EORI number to import and export goods.
EORI – An Economic Operator Registration and Identification number - distinguishes products being traded to and from the EU and enables the origin of goods to be easily identified.
An EORI number is required to make customs declarations, and in order for goods to be authorised for customs simplifications.
Alongside the 144,000 VAT-registered business who only trade with the EU, it is estimated that there are also around 100,000 non-Vat registered businesses who trade with the EU, for whom the need for a EORI number could also be applicable in the event of a no deal Brexit.
How to register for an EORI number
VAT-registered companies should complete the application for Economic Operator Registration and Identification (EORI) form.
Not VAT-registered companies should complete one of the forms below:
For more information regarding the EORI number system, check out our blog, 'What is an EORI number? And do you need One?'
For more tips on how for ensuring a smoother sailing through the Brexit transition, including a Key Checklist for Importers and Exporters in the event of a no-deal Brexit, check out our blog 'Brexit and trade - Tips for ensuring a smoother sailing through the Brexit transition'