Brexit: UK trading conditions after leaving the EU
- 06 February 2020
- Business Consultancy
On 31 January 2020 the United Kingdom left the European Union, and from 1 February a transition period began that will last until 31 December 2020. During this time, trade relations with the UK will continue as before, there will be no changes for traders in any aspect (customs, tax, regulatory, etc.) and the UK will continue to apply all EU rules.
In the trade area, the UK will continue to be part of the Customs Territory of the Single Market and, therefore, the free movement of goods will continue. Nor will it affect the origin status of its products, so companies will be able to continue to benefit from the tariff preferences of the agreements signed by the EU under the same conditions. Likewise, the EU will notify the countries affected that during this transitional period the United Kingdom will have to be treated as a Member State for the purposes of these agreements.
From 1 January 2021, the UK will no longer be obliged to apply EU rules and the trade agreement reached would come into force. In the event of no agreement, the UK would be treated in the same way as other World Trade Organisation countries with which the EU does not have a preferential agreement.
For the export and import of goods, the need to complete all customs and non-customs formalities required by the third country will begin on 1 January 2021. With or without a trade agreement, after the transitional period the UK will be outside the EU Customs Union and will act as a third country for all purposes, both in trade in goods and services. Therefore, its products will no longer have EU originating status.
For further information and doubts, please contact our Tax Department (cinc@cinc.es).
Kind regards,
CINC Business Consultancy
