Archives for January 2021

BREXIT TRADE AGREEMENT

The transition period for the UK leaving the EU has ended. The EU and UK have struck a trade deal, and this has been ratified by the UK Parliament so from 1 January we are trading with the EU quota and tariff “free”. There are new Customs regulations and VAT requirements to get to grips with, but we have every confidence once we get used to the new system imports and exports will continue to flow.

The full agreement is entitled “trade and cooperation agreement between the European Union and the European atomic energy community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part” and can be seen here.

THE KEY POINTS OF THE AGREEMENT ARE:

• Travel – UK nationals will need a visa for stays longer than 90 days in a 180-day period and there will be new procedures for UK travellers at EU borders.  European Health Insurance Cards (EHIC) will remain valid until they expire. Mobile roaming charges may change so if you are using your phone abroad check with your plan provider first.
  
• Trade – There will be no tariff charges on goods or quota limits on the amount that can be traded from 1 January. However there will be Customs checks at borders and customs declarations will need to be made by exporters from the EU and the UK.
  
• Services – UK financial businesses lose their access to EU customers (many larger firms have already established subsidiaries within the EU to continue access) and whilst the UK has granted EU businesses temporary permission to continue servicing UK customers, there is no reciprocal EU agreement for UK businesses as yet. We expect regulatory discussions about “equivalence” in 2021 and hopefully, an arrangement whereby UK firms will get access to EU customers.       

There is a Government Brexit checker to assist with the planning for business, family, and personal circumstances. Use the Brexit checker to get a personalised list of actions. You can also sign up for emails to get updates for what you need to do. See here for more information.    

There are other agreements on fishing, security, the Justice system and study which have been widely commented on in the last few days and it is now a question of moving forward with the agreement and we will keep you informed of the practical measures that follow.

If you would like any more information on the Brexit trade agreement then please contact us using our details below: 

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

EXPORTING – GETTING AN EORI NUMBER

From 1 January 2021 you need an EORI number to move goods between the UK and the EU.

You can apply for your EORI number in advance. It can take up to a week to get one.

You will not usually need an EORI number if you only:

• Provide services
• Move goods between Northern Ireland and Ireland  
• If you use a post or parcel company they will tell you if you need an EORI number.

You will need an EU EORI number if your business will be making customs declarations or getting a customs decision in the EU. Get this from the customs authority in the EU country where you submit your first declaration or request your first decision.

IF YOU ALREADY HAVE AN EORI

From 1 January 2021 you’ll need an EORI number that starts with GB to move goods to or from the UK.

Check your EORI number. Apply for a new one if yours does not start with GB.

BEFORE YOU APPLY 

To apply you may need your:

• VAT number and effective date of registration – these are on your VAT registration certificate
• National Insurance number – if you’re an individual or a sole trader
• Unique Taxpayer Reference (UTR) 
• Business start date and Standard Industrial Classification (SIC) code – these are in the Companies House register
• Government Gateway user ID and password

If you need a Government Gateway user ID, use either:

• The one for your business or organisation
• Your own if you’re applying as an individual

If you do not already have a user ID, you’ll be able to create one when you apply. To apply for an EORI number please see here.

If you would like any more information on getting an EORI number then please contact us using our details below: 

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

IMPORTING GOODS BY POST 

(FROM THE EU INTO GREAT BRITAIN) FROM 1 JANUARY 2021

The Government has issued guidance on preparing to import goods from the EU to Great Britain from 1 January 2021.

Guidance on preparing to import for goods from the EU to the UK can be seen here

The process for importing goods from the EU will change. Businesses in Great Britain need to complete the following actions to continue importing from EU countries from 1 January 2021.

Great Britain is England, Wales and Scotland.

Guidance on moving goods into, out of and through Northern Ireland will be added to GOV.UK in the coming weeks. See here for more information.

The GB guidance covers:

NOTICE 144: TRADE IMPORTS BY POST, HOW TO COMPLETE CUSTOMS DOCUMENTS 

This notice is for postal importers of trade consignments who have to make a declaration on a Single Administrative Document (SAD).

This notice is intended to give general guidance to postal importers of trade consignments for which a declaration (entry) on a SAD is required. Further information on the completion of SAD forms is contained in the Integrated Tariff of the United Kingdom (the Tariff).

This notice is not the law and does not change the law.

IMPORT DECLARATION

All goods arriving in the United Kingdom by post from any country outside the EU must be declared to HMRC. In most cases, this means the sender making a Customs declaration on a form which is attached to the package. However, certain goods must be declared on a SAD – this is a UK and EU form used to legally declare imported goods to Customs also known as an import entry.

In the UK, the SAD is also known as Form C88. The specific version for postal imports is Form C88A.

WHEN IS A DECLARATION ON SAD REQUIRED?

A full import declaration on a SAD is required for all postal imports exceeding £750 (1,000 Euros) declared to home use and free circulation. For imports declared to one of the special procedures (that is, temporary admission, customs warehousing, inward processing and end use) a full customs declaration (SAD) is required to be submitted to CHIEF (Customs Handling of Import and Export Freight) in some cases (including where an “authorisation by declaration” (formerly known as a “simplified” authorisation) is used. The submission of the declaration to CHIEF allows for the guarantee (which is new requirement under the Union Customs Code) to be taken where necessary. A SAD is also required for returned goods relief over £600.”

WHAT FORM DO I USE TO DECLARE (ENTER) TRADE IMPORTS BY POST? 

The SAD for postal imports is form C88A. You must use this when declaring your goods to HMRC. They will send you a copy to complete and return. Another form, C87 Notice of Arrival of Goods by Post also accompanies the SAD. This advises you that the goods have arrived in the UK but cannot be delivered until you complete and return the SAD form to HMRC. It also gives a Customs reference number associated with your package. Please quote this number if you need to speak to HMRC about your package.

Use one SAD for goods covered by each Commodity code. Additional forms can be obtained by contacting HMRC at the postal depot where your package is being held.

Guidance on completion of the SAD is covered on the webpage outlined above.

If you have a question about Excise or Customs Duty use the webpage above or:

Telephone: 0300 200 3700. 

The address for questions by post is: HM Revenue and Customs, EEC, 10th Floor SW, Alexander House, Victoria Avenue, Southend-on-Sea, Essex, SS99 1AA

APPLY TO IMPORT MULTIPLE LOW VALUE PARCELS ON ONE DECLARATION FROM JANUARY 1 2021

You can use the bulk import reduced data set to declare one or more low value parcels in a single import declaration when you import goods to Great Britain.

If you have free circulation procedure goods contained within one or more postal packets, you may be able to use this process where:

• each postal packet is sent from a country or territory outside the UK to a recipient in Great Britain
• at the time of import, each postal packet contains goods with a relief from import duty available to the recipient of the goods
• the postal packets are imported in such manner as may be specified in a notice published by HMRC
• the total value of each postal packet imported is £135 or less
• the VAT for each postal packet is subject to UK supply VAT, rather than import VAT

A postal packet is where goods are contained in:

• a letter
• a parcel
• a packet
• another article transmissible by post

If you are already using low value bulking of imports or have used low value bulking of imports, you still may need to apply for authorisation for the bulk import reduced data set.

HMRC will check your records and tell you after 1 October 2020 if you need to apply for authorisation.

To become authorised to make these bulk declarations, you will need to:

• be established in the UK
• have a good customs compliance record, including VAT Returns and duty deferments
• show how you’ll identify and report any errors found after you’ve submitted your final bulked declaration, where applicable
• carry out declaration procedures to a professional standard
• have procedures in place to make sure you do not import prohibited goods
• have licences for any restricted goods
• have procedures in place to manage customs declarations

You may also need to apply for import licences and certificates for some goods you import.

Applications advice can be seen here

After you have applied HMRC will send a letter telling you if your application has been successful. It will also set out the conditions of the authorisation, such as how you:

• make declarations
• keep records
• tell HMRC about any issues or errors

You also will get an authorisation number that you can use on your declarations in the Customs Handling of Import and Export Freight (CHIEF) system.

Once you are authorised, you must:

• maintain complete and accurate records for 4 years for import and export purposes
• maintain complete and accurate records for 6 years for VAT purposes
• follow the conditions set out in the authorisation letter
• inform HMRC about any changes to your information in your application

If you would like any more information about the changes regarding Importing goods by post after the transition period then please contact us using our details below: 

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

CUSTOMS DECLARATIONS FOR GOODS YOU BRING OR RECEIVE 
INTO THE UK 

From 1 January 2021, if you are a UK-based business bringing or receiving goods from the EU, you must complete an import declaration to get your goods through customs.

You can do this yourself, but as completing a customs declaration can be complicated and you will need compatible software to do it, many smaller and medium sized importers typically use a specialist. Please see our guide entitled “Importing goods from the EU to Great Britain from 1 January 2021” if you are thinking of this approach.

For Government advice on using a specialist, see here

HOW TO SUBMIT A CUSTOMS DECLARATION IF YOU ARE DOING IT YOURSELF

Most declarations are submitted electronically through Customs Handling of Import and Export Freight (CHIEF) system. If you are going to do this yourself, rather than appoint an agent, you will need to:

• apply for access to CHIEF
• buy third party software that can submit declarations through CHIEF

To apply for CHIEF see here

Use form C1800 to access Customs Handling of Import and Export Freight (CHIEF) and give traders full contact details that need to be linked to their “badge”.

This form is interactive (one that you complete on screen) and you must use Adobe Reader to complete it.

There are different rules for:

• carrying merchandise in your baggage with a value less than £873
• importing goods by post
• importing multiple low value parcels on one declaration

Please see our guide on importing goods by post.

BRINGING MERCHANDISE TO THE UK IN YOUR BAGGAGE 

Merchandise in baggage are commercial goods (for trade or business use) where:

• a commercial transport operator does not carry them for you
• you have travelled to the UK carrying goods in your baggage

You can bring goods to the UK in your baggage, but you will need to make a declaration.

From the 1 January you may need to:

• apply for an EORI number starting with GB at least 48 hours before travelling if your business does not have one already
• work out the weight and value of your goods
• check whether your goods are restricted goods
• check whether your goods are alcohol, tobacco or fuel
• obtain any licences or documents needed for importing
• if you’re making your own declaration, software that works with CHIEF

To apply for an EORI number see here

Guidance on restricted goods can be found here

MAKING A DECLARATION

Goods you must declare in advance – you or your appointed customs agent must submit a full declaration before you travel to the UK and: 

• their value is over £873
• they weigh more than 1,000kg
• they are excise goods
• they need a licence
• they are restricted goods
• they are goods you’re putting into another process or claiming relief

You may submit your declaration no more than 5 days before you travel to the UK.

ARRIVING WITH GOODS THAT HAVE NOT BEEN DECLARED IN ADVANCE

If you arrive in the UK with goods that you have not declared in advance, you must go to the ‘Goods to Declare’ channel or the red point phone in the customs area. You must make a declaration and pay any duties and tax due to a Border Force officer.

GETTING DUTY AND VAT REFUNDS

You may be able to ask for a refund after you’ve made your declaration if:

• you do not travel
• your goods are lost or destroyed before they reach the UK
• you make a mistake when you work out your duty

To get a refund, you must apply within:

• 3 years of making the over payment of Customs Duty or import VAT
• 12 months for duty you’ve paid on damaged or defective goods
• 3 years if after making a declaration you did not actually travel

Find out how to claim a refund for Customs Duty and also use this process to claim back your import VAT. If you are not registered for VAT see here

If you are VAT registered, you must claim import VAT back on your VAT Return.

WHEN TO SUBMIT

You must normally submit a full declaration at the time the goods enter the UK unless you are putting them into temporary storage.

For information on how to submit a full import declaration, see here

It is a different process if you’re using simplified declarations procedures.

APPLY TO USE SIMPLIFIED DECLARATIONS FOR IMPORTS

To find out about the different simplified declarations for imports and what you need to do to get authorisation to use them, see here

When you make a customs declaration on imports, you may be able to make a simplified declaration when your goods arrive at a UK port or airport.

You can enter the goods to free circulation and special procedures:

• inward processing
• outward processing
• authorised use
• temporary admission
• storage such as customs warehousing

To check whether you can use the simplified declaration procedure see here

If you would like any more information about customs declarations after the transition period then please contact us using our details below: 

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk  

EXPORTING GOODS FROM GREAT BRITAIN TO THE EU 
FROM 1 JANUARY 2021

From 1 January 2021, you will need to make customs declarations when exporting goods to the EU. These rules currently apply to exporting goods to the rest of the world, including Switzerland, Norway, Iceland and Liechtenstein.

You can make the declarations yourself or hire someone else such as a courier, freight forwarder or customs agent.

HIRING A PERSON OR BUSINESS TO DEAL WITH CUSTOMS FOR YOU

You can hire a person or business to deal with customs for you, such as:

• Freight forwarders
• Customs agents or brokers
• Fast parcel operators

What they can do for you (and who will be liable) depends on:

• The services they provide
• What you want them to do
• The commercial agreement you have with them
• They will need to be established in Great Britain or Northern Ireland.

FREIGHT FORWARDERS

Freight forwarders move goods around the world for exporters and importers. A freight forwarder will arrange clearing your goods through customs. They will have software to communicate with HMRC’s systems. You can find out how to use a freight forwarder on the British International Freight Association and Institute of Export websites.

CUSTOMS AGENT OR BROKER 

Customs agents and brokers help your goods clear through customs and borders.

You can hire a customs agent or broker to act as a:

• Direct representative
• Indirect representative

Typically they will:

• Check the classification and valuation of your goods, and making sure you use the right commodity codes
• Liaise with government agencies and customs authorities on your behalf
• Advise on any necessary licenses for import of restricted or hazardous goods
• Prepare and submit documents which have to be filed to clear customs processes

FAST PARCEL OPERATORS

Fast parcel operators transport documents, parcels and freight across the world in a specific time frame. They can deal with customs for you, as part of their delivery.

They cannot act on your behalf without written instructions from you. The instruction must show whether they are acting for you directly or indirectly. HMRC will only ask for evidence of the authorisation if they need it.

HMRC list of customs agents and fast parcel operators can be found at: Gov.uk List of Customs agents and fast parcel operators

Getting someone to act directly

You can hire a person or business to act in your name. You will be liable for:

• Keeping records
• The accuracy of any information provided on your customs declarations
• Any Customs Duty or VAT due

You cannot ask someone to act directly if they are submitting your declarations using:

• Simplified customs procedures
• Entry in the declarant’s records

When acting directly, even if they have authorisation, they can only submit those types of declarations if you have authorisation.

Getting someone to act indirectly

You can get someone to act for you in their own name, this means they are:

• Equally responsible for making sure the information is accurate
• Jointly and severally liable for any duty or VAT

If they have authorisation, you can get an indirect agent to make declarations using:

• Simplified customs procedures
• Entry in the declarant’s records

You cannot ask someone to act indirectly if you are declaring goods for:

• Inward processing
• Outward processing
• Temporary admission
• End-use relief
• Private customs warehousing

MAKING EXPORT DECLARATIONS YOURSELF

If you are a UK-based business sending goods outside of the UK and from the 1 January to the EU as well as the rest of the world, you must complete an export declaration to get your goods through customs.

Before you start you must also have an Economic Operator Registration and Identification (EORI) number. See Here

You must also have a Customs Handling of Import and Export Freight (CHIEF) badge role (if you are using a freight forwarder you do not need to apply). See Here

If you get Authorised Economic Operator Customs Simplifications status this may speed up the process of applying for the National Export System.

Check Here if Authorised Economic Operator status could benefit you

SUBMITTING A DECLARATION 

Most declarations are submitted electronically using the National Export System. If you’re going to do this yourself, rather than appoint an agent, you will need to register for the National Export System. See Here

You must use the National Export System to make export declarations to customs.

You can use the system to send declarations through:

• Web
• Email
• XML
• Community Systems Providers

Registering for web declarations

To make your declaration through the web, you need a Government Gateway user ID and password. If you do not have a user ID, you can create one the first time you register. See Here

Registering for email declarations

To make your declaration by sending an email, you need a Government Gateway user ID and password. If you do not have a user ID, you can create one the first time you register. If you choose this method you’ll also need:

• A CHIEF-compatible software package (EDIFACT)
• An SMTP (standard) email connection

Email cannot be used for common agricultural policy declarations.

Registering for XML declarations

To make your declaration by XML declaration, you need a Government Gateway user ID and password. If you do not have a user ID, you can create one the first time you register. If you choose this method you’ll also need:

• A CHIEF-compatible software package (EDIFACT), including an XML wrapper
• An HTTPS internet connection (this is a more secure connection than HTTP)

COMMUNITY SYSTEM PROVIDERS

Community Systems Providers run the major inventory-controlled ports around the UK. You can access the export system indirectly through a Community Systems Provider using your own software or software provided by an independent software company.

Freight forwarders buy annual badges to their systems and charge exporters a fee for entering goods for export on their behalf. Customs do not charge for use of their systems and any charges are set by the freight forwarders direct. See Here

Please note: Full guidance can be found Here. 

If you would like any more information on exporting goods from Great Britain to the EU from the 1st January then please contact us using our details below: 

(E) enquiries@advaloremgroup.uk or (T) 01908 219100 (W) advaloremgroup.uk