Just over a month after leaving the EU, the overall situation on moving used household furniture and effects has become more complex. The information supplied on the UK Government websites is directed towards general haulage and does not address the unique criteria of citizens moving with their personal effects.
Border Control and Customs
As always with international shipping and logistics, border control and customs can affect the speed of your delivery. Post-Brexit, it is possible that the days of red tape and arduous documentation may return. The potential for increased costs and decreased efficiency is unfortunately very real. As these issues arise, they will need to be dealt with swiftly by the UK government. Some companies are already lobbying the government to ensure the matter of a simplified shipping process is high on their agenda.
Brexit Considerations for Household Goods Moves
Effective January 1st 2020, the European Union and the United Kingdom enacted The Trade and Cooperation Agreement. The agreement will have many implications for businesses, including changes in the way household goods moves are executed. To ensure compliance and awareness we would like to share the following recommendations.
Transfer of Residence (TOR) Process
The tax authorities in the UK,HM Revenue and Customs (HMRC), has advised that the TOR process must be followed for UK-bound household goods shipments from all countries, including those in the EU.
The relocating employee needs to submit a report to HMRC to request import clearance for their personal belongings and furniture. If approved, the shipment will not be subject to taxes. The process is expected to take three to five weeks. We strongly recommend initiating shipments only after the TOR process has been cleared, to avoid shipments being subject to taxes.
We always recommend that the relocating employee or a reliable family member is present during both the packing and loading of their household goods. It minimizes stress for the relocating employee and ensures this phase is completed correctly and greatly increases the likelihood of a successful move.If packing is delayed due to the TOR process and the relocating employee has travelled ahead to their new destination, stakeholders need to take into consideration that their employee may need to return home to supervise the packing of their household goods at a later date. This could result in additional travel and hotel costs. The ongoing impact of Covid-19 continues to complicate this further and we strongly encourage you to keep up to date with the relevant travel restrictions.
Shipments from the UK to Sweden
Despite negative implications for the global logistics industry, caused by the pandemic, it remains relatively easy and quick to send shipments of personal effects to Sweden. In fact, we have had cases where the shipment arrived before the relocating employee has had time to register in Sweden, in accordance with the new immigration requirements for British citizens.
If the relocating employee is unable to show proof of registration with the Swedish Tax Agency in connection with the goods import clearance, they will be obliged to pay customs clearance tax on the shipment, which currently is 25% .We therefore strongly recommend you to coordinate the timing of shipment arrivals closely with your moving partners.
Please do not hesitate to contact us for advise or assistance on these matters.
Your Human Entrance Team