GOVERNMENT WARNS FIRMS TO PREPARE FOR EU TRADE RULE CHANGES
The government is encouraging UK businesses to prepare for rule changes for trade with the EU which will come into effect during the next six months.
HMRC has written to more than 160,000 VAT-registered businesses explaining the measures firms must take to continue trading with their counterparts on the continent.
Approaching deadline
To soften the impact of the UK’s departure from the EU single market and customs union last year, the government announced easements for new declaration requirements and other customs checks on imports from the continent.
This included the ability to delay completing declarations on imports.
However, traders availing of this easement must complete a supplementary declaration within 175 calendar days of the date of their import from the EU.
However, government easements do not mean traders can do nothing – they will need to prepare for the above changes.
Other requirements
Firms will also need to apply for a duty deferment account (DDA) and authorisation to use simplified declaration procedures, as well as deciding decide whether to make their own declarations or get a customs intermediary to do this on their behalf, the letter warned.
On top of this, from 1 October 2021, firms trading products of animal origin, certain animal by-products and high-risk foods not of animal origin will be required to make pre-notifications to British customs ahead of their goods movements.
Also, from this date, if traders haven’t made a full customs declaration for an export consignment, their haulier or carrier will need to submit a standalone exit summary declaration providing safety and security information.
Delayed crisis
Customs brokers believe that the delayed declarations timetable has simply delayed a crisis as UK firms remain unprepared for completing new customs processes for imports from the continent.
Appointing a customs intermediary
HMRC is providing information on how businesses can appoint intermediaries to deal with their customs documentation.
However, there are concerns of a shortage of customs intermediaries in the market for businesses to call upon.
If you have any concerns regarding customs declarations? Contact Us for free confidential advice.
