Brexit, better with an agreement

Brexit. The United Kingdom is Spain’s fifth trading partner with an annual volume of 12 million tons exportedand 6.8 million tons imported. Altogether, 31,500 million euros in trade in2019. With the agreement, bilateral trade can continue without customs duties or tariffs. However, the United Kingdom’s departure from the European Union will increase administrative and fiscal procedures for exports and imports.Therefore, on both sides of the border, it will be necessary to present customs declarations, declarations for products subject to special taxation (alcohol, fuel, tobacco). Moreover, many products for human or animalconsumption will have to undergo health controls, and vegetable goods orgoods containing or packaged with wood will be subject to phytosanitarycontrols, among others. This must all be taken into account by companies importing and exporting, which must also choose the best Incoterm clauses for their interests, because from 1 January 2021, according to the commercial clauses signed, they will assume the customs procedures and formalities on both sides of the border. It is also necessary to remember that imports must pay the VAT on the value declared in customs at the moment of importing. Optionally, importersmay use bonded warehouses, which, due to the guarantees established,will enable them to delay the payment of VAT until the goods are close to the retail sale time. Source: Uniport Bilbao