Custom changes and declaration, UK 2022

Full Custom Controls

Full Custom Controls will be the dominating feature of the new Post-Brexit Custom Changes. Declarations became effective on 1st January, 2022. Britain's exit from the European Union has fostered quite a number of new Post-Brexit regulations. These changes are a result of UK leaving the single market at the end of the Brexit transition period in December 2020, which meant that the EU and the UK no longer observe the same Custom rules. Companies and business owners were advised to adequately prepare for a new wave of changes in Custom and Declarations that took immediate effect on the 1st January 2022 and other changes that will be introduced later this year.

An End to Delayed Custom Declarations

Companies whose goods are entering Great Britain from other EU countries will no longer be able to delay making imports customs declarations under the staged Customs Controls that took effect in 2021. Companies will therefore have to make declarations and also pay relevant tariffs at the point of import. However, the six months (175 days) delay in making Customs declarations for Non-controlled goods entering Great Britain from Irish ports will not experience immediate changes. They will only be required to make an entry in declarants imports which must be at the exact time of the import.

Using Simplified Declarations

If your company is privileged to have been authorized for 'Simplified Declarations' by HMRC, you will have your goods released directly to a specified customs procedure without needing to provide full custom declarations at the point of release. The authorization procedures for this process will need an approval from HMRC which can take up to two months (60 days) to complete all the checks needed. It is also important that companies have a Duty Deferment Account in place.

Strict Border Control

Taking immediate effect from 1 January 2022, all Companies are now required to submit an “arrived” export declarations if their goods uses the arrived export process while moving through one of its border locations. The new regulations will not permit goods to leave the country if companies and business owners do not follow the necessary processes. It directly means that goods can be turned away as they will not hold export clearance. It’s highly possible for your goods to be directed to an Inland Border Facility for physical or documentary checks if the checks cannot be completed at the border. Business owners will have to inform all personnel involved in transporting their goods on their mode of operations. Goods that are moved to Great Britain and EU will now be controlled by ports and border locations. Companies and business owners will then need to have valid Declarations and Custom clearance before their goods will be cleared off the port and released into circulation. However, this rule does not totally apply to goods from the Republic of Ireland.

Rules Of Origin Apply (Import and Export)

Taking immediate effect from 1 January 2022, all Companies are now required to submit an “arrived” export declarations if their goods uses the arrived export process while moving through one of its border locations. The new regulations will not permit goods to leave the country if companies and business owners do not follow the necessary processes. It directly means that goods can be turned away as they will not hold export clearance. It’s highly possible for your goods to be directed to an Inland Border Facility for physical or documentary checks if the checks cannot be completed at the border. Business owners will have to inform all personnel involved in transporting their goods on their mode of operations. Goods that are moved to Great Britain and EU will now be controlled by ports and border locations. Companies and business owners will then need to have valid Declarations and Custom clearance before their goods will be cleared off the port and released into circulation. However, this rule does not totally apply to goods from the Republic of Ireland.

Rules Of Origin Apply (Import and Export)

The Trade and cooperation Agreement (TCA) between UK and EU allows imports and exports to qualify for a lowered duty rate (tariff preference). However, Companies will benefit from this deal only if: Imports from the EU originate there and Exports to the EU originate in the UK. The requirements above simply means that goods must have either been produced or manufactured in the UK or EU and not where it have been shipped or bought from. It is also important that the goods meet the product specific rules of origin requirements in the TCA. Importers from the UK and EU can claim tariff preference only if they have one of the under-listed proofs of origin.

● A Statement on Origin – This is the exporter's confirmation document that his/her/their products originate in the EU or UK.

● The Importer's Knowledge – Importers can claim tariff preference based on their own Knowledge of where the goods they are importing originate from.

Companies and business owners may need to have a Supplier Declaration in place alongside providing the EU importer with a Statement on Origin if they deal in exports to the EU. It is also important that the Supplier Declarations must be available at the exact time of export. You should also note that UK exporters are not obligated to share Supplier Declarations with the buyer/importer, only with HMRC. You might have your EU customer(s) pay the full (non-preferential) rate of Customs Duty and as well as the likelihood of you being penalized if subject to a request for verification by EU customs and cannot provide supporting evidence. It is therefore essential that proper record keeping is adhered to in order to prevent Custom fines and disqualification of Duty Relief. Normal VAT rules still apply for imports from the EU even if they are qualified for tariff preference. It is important for companies to note that the EU country code will soon be disabled from HMRC system and should no longer be used.

A Change In Commodity Codes

Commodity codes are standardized 6-digits codes used worldwide to classify imported and exported goods. These codes are reviewed by the World Customs Organization every 5 years, and the latest review featured a change in the UK commodity codes from 1 January 2022.

Temporary Extensions For Movements From Ireland

Goods moving to Great Britain from Ireland and Northern Ireland will experience a temporary extension of current customs arrangements as long as the discussions between the UK and EU concerning the operation of Northern Ireland’s Protocol is still in process. This information by the UK government implies that goods moving between the EU and Great Britain will face full custom controls, except goods from Ireland.

Postponed (Import) VAT Accounting

If you are a VAT-registered importer, it is possible to continue using Postponed VAT Accounting (PVA) on all Custom Declarations that require Companies to account for import VAT, including supplementary Declarations, unless instructed otherwise by HMRC.

Expected changes from 1 July 2022

There are confirmations that the movement of certain goods will be subject to a necessary three-checks routine. The first will be an electronic document check to confirm if the consignment of goods possesses the right commercial documentation and certification. The second will be an identification of the seal applied to the consignment before its departure. While the final check will be done physically when the goods arrive.

Further changes will include;

● Requirements for Phytosanitary certificates.

● Physical checks on sanitary band Phytosanitary goods at Border control posts.

● New requirements for Export Health Certificate

● Requirements for full safety and security declarations for all imports