Business as usual
While the Brexit deadline has been pushed back until the 31st October, the specifics on how this will affect the industry are still hard to come by.
The assumption is, if there’s a no-deal Brexit, all goods imported/exported to the EU will be treated the same – as non EU goods.
Bevica, our drinks industry specific business management solution based on Microsoft Dynamics 365 Business Central – helps small and mid-sized companies manage their accounting and finances, supply chain, operations, CRM and BI reporting. And is ready for whatever the politicians decide.
We haven’t needed to make any functionality changes to Bevica, as all options can be accommodated by Users themselves. Bevica will continue, business as usual.
However, as EU goods Imports/Exports will be treated as non EU movements for the UK, there are a number of touch points in Bevica:
For those that operate their own HMRC Bonded warehouse within Bevica, any required changes can be done via setup and reclassifying items. The most significant change in output is the treatment of Acquisition VAT, where VAT on EU goods will be treated as Non EU goods. The HMRC deferment statement will reflect this.
For those that operate third party bonded warehouses, the warehouse themselves will take care of HMRC changes.
Import / Export documentation
The UK won’t be able to use the ‘Excise Movement and Control System’ (EMCS) to record duty suspended movements of excise goods within the EU. International Receipts and Despatches will be via VI-1’s.
For those that manage this documentation via Bevica and e-customs web portal, the delivery address record itself holds the required information.
The HMRC section within the software will need to be changed to reflect the fact that these transactions are now exports. Different EU countries may additionally impose different requirements. Specifically France, Belgium, Netherlands and Spain.
For those that contract agents to process this paperwork, your agent will make the necessary changes.
Dispatch integration with Third Party Warehouses
The automated integration of sales orders, transfer orders and return orders within Bevica will not need to change. Where these transactions are for delivery outside the UK, Bevica will determine their correct classification given setup within the system.
Customs Clearance Tax
Customs Clearance Tax (CCT) may become applicable on EU products. This is managed by the Trade Tariff and its commodity codes, which may be changed to reflect any new Third Country Duty quotas.
CCT is most likely declared by the import agent, but it can be factored into the Enhanced Purchase Additional Charges routine which automatically calculates an accurate Landed Cost per receipt.
EU Sales List & Intrastat
The EU Sales List & Intrastat may no longer be required.
Economic Operator Registration and Identification (EORI)
All import/export companies will need an ‘Economic Operator Registration and Identification’ number.
As the landscape on Brexit changes we are committed to making sure we understand the impacts on Bevica and update the product where necessary.
If you have any questions on how Bevica can help you navigate Brexit, please get in touch.