International Trade Updates – Strong and Herd

Import Essential: An Introduction to Importing

Notice to Exporters 2022/19: New OGELs to support UK Exports to India

Tue, 28 Jun 2022 14:31:31 GMT

Following the Prime Minister’s statement on 22 April referencing greater defence and security collaboration with India, the following 2 new open general export licences (OGELs) have been published for use from 28 ^th June, 2022.

Open General Export Licence (dual-use items: India)

Open General Export Licence (military goods and technology: India)

The purpose of the OGELs is to simplify export permissions for a range of dual-use and military equipment to India.

Each OGEL has specific permissions and restrictions that must be adhered to by the exporter, exports being subject to ECJU compliance audit.

Registration for the new licences is through the Export Control Joint Unit (ECJU) SPIRE system.

https://www.gov.uk/government/publications/notice-to-exporters-202219-new-open-general-export-licences-published/nte-202219-new-open-general-export-licences-published

Additional Sanctions Announced Against Russia - 23rd June

Fri, 24 Jun 2022 07:06:11 GMT

NTE 2022/18: Introduction of additional sanctions against Russia

The Government has announced new trade measures against Russia and have published a further Notice to Exporters (2022/18) dated 23 June 2022

The new measures identify further prohibitions on the export, supply and delivery, making available and transfer (as well as related technical assistance, financial services, funds and brokering services) of the following:

internal repression goods and technology
goods and technology relating to chemical and biological weapons
maritime goods and technology
additional oil refining goods and technology
additional critical industry goods and technology
Prohibitions on the export to, or for use in Russia of jet fuel and fuel additives, as well as prohibitions on the making available, export, and supply, directly or indirectly, of such products to Russia or for use in Russia (as well as related technical assistance, financial services, funds, and brokering services).

Further restrictions are meted on the provision of currencies, with further prohibitions on the export to, or for use in, Russia, of Sterling or EU denominated banknotes; as well as prohibitions on the making available, supply, or delivery of such banknotes to a person connected with Russia; and on the making available of such banknotes for use in Russia.

Some of the above prohibitions will relate to Russia, and the non-government-controlled Ukraine territories.

Prohibitions are also increased on the imports. In particular, the acquisition or supply and delivery of revenue generating goods that originate in or are consigned from Russia, as well as related technical assistance, financial services, funds, and brokering services, and further measures have been introduced on the provision of technical assistance, and financial services, funds, and brokering services relating to iron and steel imports.

Exceptions

There are some exceptions to the prohibitions. These are set out in detail in the legislation, with licences available for in very limited circumstances.

Links to the Guidance, the Notice to Exporters 2022/14, and the updated legislation are below:

https://www.gov.uk/government/publications/russia-sanctions-guidance/russia-sanctions-guidance

https://www.gov.uk/government/publications/notice-to-exporters-202218-introduction-of-additional-sanctions-against-russia/nte-202218-introduction-of-additional-sanctions-against-russia

https://www.legislation.gov.uk/uksi/2022/689/contents/made

UK Commences Trade Deal Talks with Gulf States

Thu, 23 Jun 2022 09:10:53 GMT

The UK Trade Secretary launches free trade negotiations between the UK and the Gulf Cooperation Council.

Trade Secretary Anne-Marie Trevelyan launched free trade negotiations on Wednesday 22 June between the UK and the Gulf Cooperation Council (GCC), consisting of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

The GCC bloc represents the UK’s seventh largest export market.

Government analysis shows that a deal with the GCC is expected to increase trade by at least 16%, adding at least £1.6 billion a year to the UK economy

A focus of the trade deal is to increase UK export scope into the bloc’s anticipated increase in demand for international products and services. The increase is estimated to rise to £800 billion (a rise of 35%) by 2035.

Further details can be found at the link below:

https://www.gov.uk/government/news/uk-launches-ambitious-trade-deal-with-gulf-nations

CDS Imports - HMRC urges 220,000 businesses to move onto new single customs platform

niamho@strongandherd.co.uk (Niamh O'Connor) — Tue, 21 Jun 2022 12:33:24 GMT

Did you receive your letter from HMRC about CDS, are you aware of what you need to do next?

CDS is coming.....
More than 220,000 businesses are being contacted by HMRC to urge them to move to the UK’s new streamlined customs IT platform, if they’re not already using it. To continue importing goods, businesses must use the Customs Declaration Service to make import declarations, after 30 September this year.

Even if you are not completing the declarations yourselves as a business you still need to make sure you are registered for CDS in order to continue business as usual. This process is not a straightforward one and can take some time, be prepared and register early to ensure minimum disruption.

We're here to help! Practical and clear advice and assistance for importers , exporters , agents and those that are completing their own declarations.

CDS Community™ Membership

Our CDS Community™ subscription service connects you to our CDS technical team for CDS enquiries as well as all your other import, export, and international trade questions. Standard questions will be addressed within a maximum of 24 hours, as per our Onecall™ helpline service, but specific CDS questions will be set as Priority 1 and will be addressed immediately (during working hours). Via the CDS Community™ we will guide and support you and your business to the correct places for information, reinforce your understanding of procedures and be there if/when things don’t go right.

Briefings, Clinics, Support, Priority Helpline & Online Resources Area all in one place.

A Spotlight on Import Declarations in a CDS World

Your introduction to Import Declarations in a CDS World. How traders will need to prepare in readiness for their first entry being submitted to CDS. This 1 hour spotlight session on CDS has been designed for Importers who use a forwarder / fast parcel operator / customs broker to submit their customs declarations.

https://www.gov.uk/government/news/220000-businesses-urged-to-move-onto-new-single-customs-platform

Twelfth WTO Ministerial Conference

Mon, 20 Jun 2022 14:30:43 GMT

WTO members secure an unprecedented package of trade outcomes at MC12

WTO members successfully concluded the 12th Ministerial Conference (MC12) in Geneva on 17 June,2022 securing multilaterally negotiated outcomes on a series of trade initiatives in key areas of trade that include agriculture, fisheries, the supply of vaccines and the continuation of the E-Commerce Moratorium, the latter confirming that trade tariffs will not be applied to digital trade.

The “Geneva Package” confirms the importance of the multilateral trading system and underlines the important role the WTO has in addressing the world’s most pressing trade issues at a particular time when global trade solutions are vital.

International Trade Secretary Liz Truss has also released a statement as to the role the UK played in the Ministerial Conference, the UK’s first as an independent member.

The WTO Article can be accessed at the link below

https://www.wto.org/english/news_e/news22_e/mc12_17jun22_e.htm

The International Trade Secretary’s statement can be accessed at the link below

https://www.gov.uk/government/news/uk-statement-following-the-conclusion-of-the-wto-ministerial-conference

Northern Ireland Protocol Bill

Mon, 20 Jun 2022 09:21:17 GMT

Traders in Northern Ireland may be met with more compliance challenges should the Northern Ireland Protocol Bill be implemented by the UK Government.

The proposed Red/Green channel that could replace declaring goods to be At Risk of onward supply to the EU, could mean that NI traders will need to be conversant with and compliant to both UK HMRC regulations and the Union Customs Code, the EU regulations.

Likewise, should a business wish to trade with both the UK and the EU, compliance to pertinent goods standards will need to be evidenced to support trade, in whatever direction the goods go. Further adaptation will be needed to a trader’s adherence to trade compliance if there is no regulatory harmonisation between EU and UK standards.

Clear official guidance will be necessary to enable good compliance working practice.

Some pre-EU Exit requirements will remain the same for some goods. For example, compliance for the movement of live animals will remain in place as a given.

Some goods will remain as ‘qualifying movements’, and checks will not be necessary from GB to NI. There is provision within the legislation for the term ‘qualifying movements’ to be expanded or amended, should this be determined necessary by the UK authorities to ease the movement of trade. There is also provision for the dual regime (UK and EU regulatory compliance) to be ‘switched off’ for certain types of goods.

The NI Protocol Bill places compliance responsibility firmly on the NI trader, although the detail of how the trader will be customs audited is detail that will filter down in due course.

Businesses will need to understand and comply with whatever standards and customs regulations they choose to follow, and if necessary, make provision for both.

A link to the proposed Bill can be found below:

https://bills.parliament.uk/bills/3182

The FCDO explanatory notes for the Bill are below

https://publications.parliament.uk/pa/bills/cbill/58-03/0012/en/220012en.pdf

EU reaction to the NI Protocol Bill: - Q&A link below

https://ec.europa.eu/commission/presscorner/detail/en/QANDA_22_3679

Going Places! Boost Your Exports by Breaking into New Markets

Thu, 16 Jun 2022 12:45:00 GMT

For 25 years, Strong and Herd have been assisting, guiding and informing British companies about export procedures. Now we want to help you to find more business!

Free events from Strong and Herd LLP Export Development Services

It’s a tough old world out there. The situation is never the same for everyone, but for many, 2022 is turning out to be much more challenging than was being predicted even a few months ago. But for every obstacle there’s an opportunity and in exporting, the world is a big place and there’s always something new.

For 25 years, Strong and Herd have been assisting, guiding and informing British companies about export procedures. Now we want to help you to find more business. That’s why we now offer export development services. Specific training and information to help your company build a winning export strategy, identify new opportunities, and find your way to new successes.

We're offering a series of FREE Market Spotlight events, giving you the chance to take a look at some of the brightest opportunities worldwide. Book your free place now!

30 June – Australia; The Lucky Country

It’s the world’s 13th largest economy, and despite the geography, the UK has very close links with Australia. So how come it’s only the UK’s 23rd largest export market? More importantly, why is the UK only their 11th largest supplier of goods? Germany sells more to Australia than the UK does, and so does Italy. With a brand-new trade agreement passing through parliament, and the prospects of preferential trade through CPTPP, maybe it’s time to look again. Register Here

5 July – New Zealand; The Land of the Long White Cloud

It’s bigger than the UK but has a population similar to Ireland. A country transformed by innovation in industry and agriculture, it’s a land of lucrative opportunities for British exporters of quality and reputation. As the new trade agreement between the UK and New Zealand nears ratification, maybe it’s time to look afresh at this unique and rewarding market. Register Here

7 July – India; Country or continent?

One in six of the world’s population live in India. No country can match it for diversity or superlatives. And while it’s an export market that presents challenges, it also offers great rewards for those who can meet its growing and changing demands. With 22 recognised languages and no less than 41 cities that boast a population of a million or more, India is surely too big for any exporter to ignore? Register Here

Each of these free events will be delivered online and will commence at 1.30 pm, to run for 45 minutes

A world of new opportunities, from Strong & Herd LLP

Planning for CDS Compliance... A Trader Perspective

Tue, 14 Jun 2022 10:51:23 GMT

We are beginning to see evidence of businesses preparing for the changes CDS will bring. Traders are starting to plan for CDS compliance, rather than waiting for impact at CDS introduction for imports in October.

Below are questions we like to see.

The trader already has a good track record of compliance and is fully aware of their obligations to HMRC regulations. The questions asked should be those asked by all traders preparing to instruct agents who are making their import declarations from 1 ^st October this year.

The Questions:

We understand CHIEF will no-longer be available for import declaration submission from 30 ^th September and is to be replaced with CDS.

We currently provide all freight forwarders/agents with import clearance instructions for each shipment and the carriers complete the declarations into CHIEF on our behalf.

In preparation for the transition, can you confirm exactly what this will mean for us as an Importer of Record? We already have a Government Gateway ID.

What do we need to do in preparation?
Will current processes stay in place, or will they need to be changed?
Will we need to complete any import declarations ourselves?
Is there any IT integration that needs to happen?
Will the freight forwarders or agents require any authorisation from us to still be able act on our behalf?

The Answers:

The basic premise is that the regulations remain the same, but the method of making the declarations will change, as will the level of detail needed to be provided to the agent on your behalf.

If you already have a government gateway account, you will need to register for CDS through the gateway. Your finance department may likely have registered for CDS, as CDS has been operational for the submission of VAT periodic returns for some time.

Your customs brokers will no longer be able to use CHIEF from 1 October this year for imports. The brokers should, by now be testing their CDS software on the HMRC Trader Dress Rehearsal Service in preparation for going live. Many brokers are already live on CDS.

The brokers will be making the declarations for you. The difference to your business is that you will need to enable your broker to have access to your account.

If you pay duty at import, then you will need to authorise your brokers to use your deferment account number (DAN), if you use one.

If you pay duty at import and you do not have a DAN (cash import entries), then you will need to authorise your broker to allocate the duty and VAT payments against your CDS cash account.

You will also need to take out an additional direct debit with HMRC to cover your DAN usage on CDS. The reason for this is that CDS uses a different bank account to CHIEF and the two are not interchangeable.

The link to the main CDS page is here:

Customs Declaration Service: service availability and issues - GOV.UK (www.gov.uk)

To register for CDS click this link:

Get access to the Customs Declaration Service - GOV.UK (www.gov.uk)

Once you have registered and linked your EORI to your CDS account, you can then start to authorise your agents using this link:

Get copies of your duty deferment statements - GOV.UK (www.gov.uk)

Clicking on the above link will take you to your financial page where you will see details of both your deferment and cash accounts. There is a link on the page which will allow you to start authorising agents.

In terms of clearance instructions to your brokers, you may need to add certain information. For example, if you are authorised for Inward Processing, you will need to provide details of your CDS IP authorisation and any guarantee. But, be guided by your brokers. They will know exactly what additional information they may require.

In summary:

You will need to register for CDS, but you will not be registering to make customs declarations.

You are registering so that you are visible to the CDS system as an importer (and exporter) so that you can download PVA statements, deferment statements and financial information.

You will need to authorise your brokers. This is done by adding their EORI numbers to your authorisations within your CDS Authorisation page.

The current import process doesn’t change, apart from how you pay duty to HMRC (there is a new direct debit for using a deferment account with CDS).

You will not need to complete customs declarations if you don’t want to. This can be done as it is now, by your brokers.

There shouldn't be any IT integration if you are not completing entries yourselves.

But you will need to authorise forwarders etc to use your cash and DAN accounts.

Strong & Herd CDS Resources and Training

CDS Community™ Membership

Practical and clear advice and assistance for importers , exporters , agents and those that are completing their own declarations.

CDS Clinics & Spotlight Sessions
Our clinics have been developed to give you an opportunity to ask questions and bring working examples of issues you facing surrounding the changes.

CDS Training
CDS is a major change to the way in which customs declarations are made, and this course provides detailed information on the changes.

CDS: Planned Outage 25th June 2022

niamho@strongandherd.co.uk (Niamh O'Connor) — Fri, 10 Jun 2022 08:09:36 GMT

CDS Planned Outage : 6.5 hour outage on declarations from 21:30 on Saturday 25th June to 04:00 on Sunday 26th June

Update

We will be making changes to the Customs Declarations Service (CDS) on Saturday 25 June 2022. As a result, you will not be able to submit declarations, or populate GMRs with CDS declaration references, between the period specified below:

6.5 hour outage on declarations from 21:30 on Saturday 25 June to 04:00 on Sunday 26 June - (Declarations submitted during this time will be held in a queue until the service is resumed)

You should submit your declarations and complete your GMR with any CDS MRNs/ DUCRs before 21:20 on 25 June to avoid any delays.

Please contact the CDS Technical Support Team as usual if you have any queries via the following email address: cds.operations@hmrc.gov.uk

Sending humanitarian aid to help Ukraine

niamho@strongandherd.co.uk (Niamh O'Connor) — Thu, 09 Jun 2022 14:07:52 GMT

Did you know that there is a simplified customs process for taking humanitarian goods outside of Great Britain to help Ukraine?

HMRC introduced a temporary customs easement on 10 March to make it easier to move aid and donations to the people of Ukraine, which will be in place until 19 June 2023.

This means if you’re moving eligible goods designated as humanitarian aid through GB ports, you can do so without the need to complete electronic customs declarations.

Instead, you (or the driver moving the goods) will only need to make an oral or by conduct declaration and will not be required to supply any customs documentation. Some larger vehicles (such as Heavy Goods Vehicles) will still be required to use the Goods Vehicle Movement Service to move goods between Great Britain and the EU, although this will be waived for most smaller vehicles (those under 3.5 tonnes).

It is important to note that all controlled goods and dual use goods are excluded from this easement.

UK Government advice remains that organisations and people who would like to help should donate cash through trusted charities and aid organisations, rather than donating goods. Cash can be transferred quickly to areas where it is needed, and individuals and aid organisations can use it to buy what is most needed.

You can find more information about the easement, including what goods are eligible, on GOV.UK: Taking humanitarian aid out of Great Britain to support Ukrain e

HMRC Publication May 30th 2022 Urging Traders to move to the CDS

Wed, 08 Jun 2022 14:10:28 GMT

HMRC have noted that the migration to CDS can take some time to prepare, so the sooner you start, the better.

HMRC is stepping up communicating the urgency for businesses to move to its new Customs Declaration Service platform to support trade continuity going forward and is writing to businesses to help support them with the changes CDS implementation will mean to those moving goods across the border.

HMRC has written to over 6000 traders registered on CHIEF (the out-going IT platform) to urge their migration to the new system as quickly as possible

The letters and emails include further links to on-line resource data to support migration and set out the steps businesses must take immediately to ensure that they can continue trading effectively.

Whether your business makes its own declarations or uses an intermediary to do so for the business, HMRC is urging that you act now, and plan and implement the migration to the Customs Declaration Service as soon as possible.

HMRC have noted that migration can take some time to prepare, so the sooner you start, the better.

Support for the move can be found at the links below, including HMRC supplied Trader and Declarant check lists to help guide a business through the process.

Support to help you make the move

Further information about using CDS can be found here: Customs Declaration Service
To help businesses and agents plan their move to the CDS, HMRC has published step-by-step checklists
You can also use the Trader Dress Rehearsal service to help you prepare. The TDR enables real-time to practise in realistic business scenarios using your own business account data to test your software and train staff on how to use the platform without risk. You can use this service before you make the move to the CDS but are still encouraged to make the move onto the live system as soon as possible.
HMRC has also updated its guidance to help businesses complete import declarations by adding new examples for goods moved under special procedures. You can use these examples to help you complete declarations for your own goods on CDS.

If businesses need extra help and guidance to meet their customs obligations, there are on-line resources available.

Links below:

videos and recorded webinars on imports, exports, rules of origin, and import or export declarations
HMRC also have helplines and webchat should direct contact with HMRC be necessary

Registration for IPAFFS is now required for Plants and Plant Products as PEACH is phased out

Tue, 07 Jun 2022 10:15:34 GMT

Import of Products, Animals, Food and Feed System (IPAFFS): Registration for IPAFFS is now required for Plants and Plant Products as PEACH is phased out.

The new Import of Products, Animals, Food and Feed System (IPAFFS) is now ready for both registration and for the notification of imports of plants and plant products.

The IT Plants Systems Team in DEFRA will be in contact with importers week commencing 6 ^th June, to invite them to register for IPAFFS. This will also include invitations to introductory webinars for training on the new system.

If you import plants or plant products and do not receive an invitation from DEFRA by 13 ^th , June please make contact with DEFRA at the link below:

Defra-SPSIT-Plant_comms_enquiries@defra.gov.uk

Personal Exports of Plants and Plant Products to the EU

From 11 April 2022, the EU import requirements for plants for planting changed. This has meant that any plants for planting, including house plants, moving from GB to the EU are required to have been grown in registered nurseries before they can be certified for a Phytosanitary Certificate (PC).

A Phytosanitary Certificate is required for all movements of these plants into the EU, with the certification process requiring a GB competent authority authorisation.

Personal house plants fall outside of the certification process as house plants are not grown in registered nurseries, which is the enabler towards competent authority certification and issuance of a certificate.

All other regulated plants and plant products in passengers' personal luggage are prohibited

from entry into the EU, unless accompanied by a certified PC.

A link to Government guidance is below

https://planthealthportal.defra.gov.uk/eu-exit-guidance/it/ipaffs-for-plants-guidance/

Further information can be found on the EU’s website below:

https://ec.europa.eu/food/plants/plant-health-and-biosecurity/trade-plants-plant-products-non-eu-countries_en#:~:text=All%20regulated%20plants%2C%20plant%20products,accompanied%20by%20a%20phytosanitary%20certificate .

That was the news: May 2022

niamho@strongandherd.co.uk (Niamh O'Connor) — Mon, 06 Jun 2022 14:40:01 GMT

Bouncing back from the long weekend here in the UK, we are rounding up the latest updates for you from May. We saw the government introduce a new bill, which is set to help bring into force the Australia and New Zealand Free Trade Agreements, and they began trade talks with Mexico, looking ahead to a extensive and modern UK-Mexico FTA.

For all the latest news & updates, check out our Industry Insights page and don't forget to follow us on LinkedIn !

S&H News: May saw S&H re-focus on CDS from a traders perspective. We have been busy developing new spotlights, clinics and articles aimed at traders to support them through the migration process.

Amending an Export Declaration

HMRC extends period allowed to amend export declarations.

New Bill to enable implementation of Australia and New Zealand Trade deals

The UK signed the Australia FTA in December last year and the New Zealand FTA in February. Both deals will deliver benefits to people, businesses and communities throughout the country and support the levelling up agenda.

UK targets Russian airlines with new sanctions
The UK Government has announced that will be introducing new sanctions against the Russian airline sector.

Negotiations begin on a new UK-Mexico Free Trade Agreement

UK KICKS OFF TALKS ON NEW, MODERN TRADE DEAL WITH MEXICO - The International Trade Secretary today [Friday 20 May] launches negotiations on a new UK-Mexico Free Trade Agreement (FTA) alongside her Mexican counterpart, Tatiana Clouthier, in London.

A Spotlight On: CDS Imports
The rules aren't changing - it's the method.... What you need to know to import from 1st October. Just the basics.

Upcoming Events

How to Complete Import Entries

This Virtual Learning interactive workshop focuses on the intricate details of how to complete import customs entries in the UK. A tricky area explained by an expert using customs entry software to create a relevant and interactive workshop. Delegates will come away knowing what is needed to complete import customs entries in the UK important whether you are an agent or importer. Join Andy Baker and Managing Partner, Sandra Strong on this training course Register Here

A Spotlight on Import Declarations in a CDS World Your introduction to Import Declarations in a CDS World. How traders will need to prepare in readiness for their first entry being submitted to CDS. Register Here

Returned Goods Relief The EU-UK TCA rules change on RGR with the EU from 1st July 2022. Have you used RGR within your business? If yes, do you know what needs to be evidenced for audit if RGR has been used? Register Here

With thanks to Gail Leeson, Steve Berry and Andy Baker for this months TWTN

Import VAT - Flat Rate Scheme - change to process introduced from 1 June 2022

niamho@strongandherd.co.uk (Niamh O'Connor) — Tue, 31 May 2022 15:19:09 GMT

HMRC are taking the opportunity to remind you that if you use the Flat Rate Scheme and account for import VAT on your VAT return using postponed VAT accounting, there will be 3 changes to the way you account for import VAT for your VAT return periods starting from 1 June 2022.

Currently the value of your postponed imports is included in your businesses Flat Rate Scheme turnover calculation, and therefore subject to the flat rate percentage.

From 1 June 2022 these imports should be dealt with outside of the Flat Rate Scheme and you should exclude them from your Flat Rate turnover. You will still need to complete a Flat Rate Scheme calculation and also record the VAT due on any imports you have made. The value of import VAT should be included in box 1 on your VAT return, following the application of the Flat Rate percentage.

In February 2022 HMRC published the Revenue and Customs Brief 3 (2022): postponed VAT accounting and businesses registered under the Flat Rate Scheme . You should read the brief if:

You're registered under the Flat Rate Scheme
You have accounted for import VAT on your VAT return since 1 January 2021

For more information on how to account for import VAT on your VAT return visit GOV.UK

A Spotlight On: CDS Imports

Thu, 26 May 2022 12:11:47 GMT

The rules aren't changing - it's the method

What you need to know to import from 1st October. Just the basics:

The Customs Declaration Service will be implemented from the 1st October 2022, and things will change. Preparations will need to be made in good time, and those preparations will need to be made by different parties within a working importing business.

The business HMRC financial transactions will already be managed to some extent through the CDS portal and Government Gateway account. What will shift substantially is that access to enable declarations will need to move through the same accesses, even if you’re not making the declaration yourselves as a business (non-declarant), but instead are instructing an agent to make the declarations for you.

Your business will need to enable your declaring agent to make the declaration – and enabling the agent is done through CDS.

The following steps are the basics needed to be in place well before 1st October and prior to an agent arranging the declarations for you.

Give administration rights to the person giving the import instructions

Whoever it is in the business that gives the instruction to an agent to make an import declaration will need to have Administration Rights set up in CDS. Whoever set up the CDS account in the first instance will have the Admin Rights and will be the ‘Go-to’ to enable access for any person who will be responsible for giving the instructions.

Instructions? What instructions?

Example: If your business is inputting data into a fast parcel operator’s portal to advise on how an import must be handled – this is the person giving the instructions.

Authorise your agent to make your declarations in CDS by adding their details to your CDS account

The agent that is making the declaration on behalf of your business will not be able to make the declaration without their EORI having been set up against your CDS account. You will need to authorise them via your CDS Account for the agent to use your deferment account or cash account.

Agent? What Agent?

Example: If your business instructs a FPO on how an import is to be managed, the FPO is the declaring agent, and their business must be authorised to make the declaration for you. This authorisation is through CDS.

These are just initial steps that need to be taken.

What’s Really Important – is that CDS needs exacts. The Risks from the Start

The detail needed to make a CDS declaration is far greater than needed for CHIEF, the out-going digital method of making a declaration. If you are unable to provide the detail, your import is at risk.
CDS is “data hungry” and providing instructions to an agent needs to be clear and concise, with CDS there are many new data elements that an agent will not know the answer too that has to come from the importer.
An agent will become jointly responsible for any regulatory errors on the declaration made on behalf of your business. An agent is unlikely to take the risk of getting your declaration anything other than accurate, if it could cost them in the long run.

There’s no fudging or slurring with CDS. An agent will not be able to guess, and the importer is under regulatory obligation to both understand and implement the tariff requirements.

The rules for making a compliant import aren’t changing. It is the method of making that declaration that will change from October.

Be ready in good time.

As part of the move from CHIEF to CDS (Customs Declaration Service) for Imports later this year, we are eager to gauge awareness on how far UK Businesses transition plans have progresses? We would be appreciate you taking a minute out of your day to answer our poll.

CDS Awareness Poll

A Spotlight on Import Declarations in a CDS World

Your introduction to Import Declarations in a CDS World. How traders will need to prepare in readiness for their first entry being submitted to CDS. Register Here

Notice to Exporters 2022/17 Update to The Export Control (Amendment) Order 2022

Mon, 23 May 2022 10:48:27 GMT

The changes to the licencing criteria, along with China, Hong Kong and Macau now being included in the destinations subject to an arms embargo came into effect on 19th May 2022. They were implemented by The Export Control (Amendment) Order 2022.

Secretary of State for International Trade, Anne-Marie Trevelyan, through a Written Ministerial Statement dated 8 ^th December 2021 set out the new Strategic Export Licensing Criteria in a Government Trade Policy Update. The statement also announced the UK Government’s intention to enhance the UK’s military end-use controls to allow these controls to apply to a wider array of end-use scenarios. The statement also confirmed that China would be added to the list of those destinations subject to an arms embargo.

The changes to the licencing criteria, along with China, Hong Kong and Macau now being included in the destinations subject to an arms embargo came into effect on 19th May 2022 . They were implemented by The Export Control (Amendment) Order 2022.

This will not change the extent of the partial arms embargo on China but will mean that the updated military end-use controls will apply.

Links the Notice to Exporters 2022/17, the End Use guidance and Written Ministerial Statement made in December 2021 are below.

https://questions-statements.parliament.uk/written-statements/detail/2021-12-08/hcws449

https://www.gov.uk/guidance/end-use-controls-applying-to-military-related-items

https://www.gov.uk/government/publications/notice-to-exporters-202217-military-end-use-controls-update/nte-202217-military-end-use-controls-update

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Beginners Guide to Export Licensing Controls

Focus On: Dual Use Export Compliance - The Dual-Use Exporter

Focus On: Preparing for an Export Control Audit

Trader Checklist – Moving to the Customs Declaration Service (publishing.service.gov.uk)

Negotiations begin on a new UK-Mexico Free Trade Agreement

niamho@strongandherd.co.uk (Niamh O'Connor) — Fri, 20 May 2022 11:57:43 GMT

UK KICKS OFF TALKS ON NEW, MODERN TRADE DEAL WITH MEXICO

The International Trade Secretary today [Friday 20 May] launches negotiations on a new UK-Mexico Free Trade Agreement (FTA) alongside her Mexican counterpart, Tatiana Clouthier, in London.

Deal to boost trade relationship worth £4 billion, and open up one of the world’s largest consumer markets – with a population projected to reach nearly 150 million by 2035
Major boost for UK services industries, increasing trade in areas like financial services and digital driving economic growth and supporting UK jobs
Modern, enhanced agreement aims to remove barriers and bureaucracy for small businesses, helping them grow through exports

Negotiating a ‘Mexico 2.0’ deal would transform the UK’s relationship with the world’s 16 ^th biggest economy and secure a brand-new, enhanced FTA for a digital age, which supports hi-tech jobs, industries of the future and grows our economy.

Mexico is a major market for UK exporters. Its expanding population means demand for imports is set to grow by 35% by 2035. It is located in a strategically situated part of the world, serving as a gateway to the Americas as well as to the dynamic trans-Pacific region.

UK negotiators will look to go further and deeper in areas like services and technology, boosting a trade relationship already worth over £4 billion. The agreement could increase trade flows across the financial, creative, digital and technology services sectors thanks to advanced services provisions, boosting the UK’s already world-leading services industries.

It is the third major FTA negotiations launched by Trade Secretary Anne-Marie Trevelyan this year - following visits to kick off talks in India in January and Canada in March.

Secretary of State for International Trade Anne-Marie Trevelyan said:

“This enhanced deal would transform our relationship with Mexico, making the most of the immense opportunities its dynamic business landscape and young, growing population offer.

“From autonomous vehicle manufacturers in the West Midlands, to Wales’ green tech businesses and Scotland’s thriving food and drink sector, companies of all shapes and sizes across the UK stand to benefit.

“Trade deals like this are vital to growing the economy to address the cost of living, as they support jobs, help businesses thrive and spur investment. We’ve already kickstarted negotiations with India and Canada and are close to joining the CPTPP free trade area, with a combined GDP of £ 9 trillion, of which Mexico is a key member.”

Further information on the launch can be found via the following links and attachments, which can be found below:

CDS Trader and Declarants Check Lists

Fri, 20 May 2022 08:26:11 GMT

HMRC Publish Comprehensive Guidance for Declarants and Traders to Support CDS Migration

HMRC have published comprehensive guidance to assist both traders and declarants in the planning and management of their migration to using the Customs Declaration Service.

CDS is scheduled to take over from the HMRC CHIEF (Customs Handling of Import Export Freight) computer system in a staged implementation starting later this year. All imports will be managed through CDS from 1 ^st October 2022 with exports migrating on 1 ^st April 2023.

CDS is already in use, with businesses managing regulatory financial transactions through the on-line service. Traders are urged to prepare to register for CDS in good time and not leave their CDS registration until the last minute.

HMRC have also advised that registration into full working process for businesses can take time.

Guidance and further detailed information is in links below:

Trader checklist – moving to the Customs Declaration Service - GOV.UK (www.gov.uk)

Declarant checklist – moving to the Customs Declaration Service - GOV.UK (www.gov.uk)

Declarant Checklist – Moving to the Customs Declaration Service (publishing.service.gov.uk)

UK targets Russian airlines with new sanctions

Thu, 19 May 2022 12:38:26 GMT

The UK Government has announced that will be introducing new sanctions against the Russian airline sector.

State-owned Aeroflot, Russia’s largest airline, and both Ural Airlines and Rossiya Airlines will now be unable to use or sell on their unused and very lucrative landing slots at UK airports. This will effectively prevent Russia from cashing in on an estimated £50 million for the sale of landing slots.

Link to the Press Release – 19 ^th May 2022

https://www.gov.uk/government/news/uk-targets-russian-airlines-with-new-sanctions

NCTS email channel for Transit submission will close at the end of the month

Mon, 16 May 2022 13:11:11 GMT

HMRC have published an update for Transit users further confirming that the NCTS email channel for Transit submission will close at the end of the month.

The New Computer Transit System (NCTS) email channel is closing at 11.59 on 31 ^st May 2022

The NCTS email channel will no longer accept any new declarations from the end of May 2022, and from this date all users of the email channel will have needed to migrate to the new XML API channel.

HMRC have advised that the new XML API channel will provide a more stable platform for submission of Transit Declarations, is more able to handle the increase in post EU Exit declaration volumes and is more data secure than the closing Legacy XML Channel.

Top Tips:

It is recommended that affected businesses transition as soon as possible to give sufficient time to ensure preparedness to implement use of the XML API channel into working day practices.
HMRC further recommend that checks should be made with software providers to define the impact that moving to the new channel will have on a business and what business action needs to be taken.

Successful implementation of new procedures may take time.

Support to users where software is incompatible with the new XML API channel

There are other options available should your business software be incompatible with the new XML API channel.

These alternatives are:

The HMRC online portal, which is free to use or
By using standard Import/Export procedures to move your goods.

The above will apply to all Great Britain (England, Wales and Scotland) and Northern Ireland movements.

HMRC have confirmed that they will be writing to all businesses still using the email channel, in an effort to support migration to the new XML API channel, and begin to prepare to make submissions using the new channel from 1 ^st June, 2022.

Link to the newsletter below:

Transit Newsletter 10 May 2022 .

CDS: Planned outage

niamho@strongandherd.co.uk (Niamh O'Connor) — Mon, 16 May 2022 07:27:34 GMT

CDS: Planned outage from Saturday 21st May @22:30 – Sunday 22nd May @01.00

Update

Further to our last message, we are moving our outage window for the Customs Declarations Service (CDS) from Tuesday 17/05/2022 to Saturday 21/05/2022, this is to incorporate additional work, and reduce the number of outages for the Service. As a result, you will not be able to submit declarations, or populate GMRs with CDS declaration references, between the period specified below:

2.5 hour Outage on Declarations from 22:30 - 01:00 - (Declarations submitted will be held in a queue until the service is resumed)

You should submit your declarations and complete your GMR with any CDS MRNs/ DUCRs before 22:20 on 21/05/2022 to avoid any delays.

New Bill to enable implementation of Australia and New Zealand Trade deals

niamho@strongandherd.co.uk (Niamh O'Connor) — Wed, 11 May 2022 13:35:16 GMT

The UK government has today introduced a new bill, which will help bring into force the Australia and New Zealand Free Trade Agreements (FTAs), the UK’s first independently negotiated FTAs in more than 50 years.

Bill will ensure Government is ready to enter the two trade agreements.
UK businesses can grow and take advantage of greater access into these markets.
Both the Australia and New Zealand deals will remove tariffs on 100 percent of UK goods exports, benefiting UK businesses.

Introducing this Bill is an important step in ratifying these trade agreements so that UK businesses can begin benefiting and expanding their trade with Australia and New Zealand as soon as possible.

Link to full press release New Bill to enable implementation of Australia and New Zealand trade deals - GOV.UK (www.gov.uk)

Link to Parliamentary Bill Trade (Australia and New Zealand) Bill publications - Parliamentary Bills - UK Parliament

Amending an Export Declaration

Tue, 10 May 2022 15:01:03 GMT

HMRC extends period allowed to amend export declarations

Good news for exporters who need to make a post-clearance amendment to their export declaration. HMRC will allow amendments up to 3 years after the original export declaration was cleared.

The information can be accessed here:

Making a full export declaration - GOV.UK (www.gov.uk)

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Introduction to Customs Procedures

Import Essentials: An Introduction to Importing

CDS Imports: The Customs Declarations Service

Customs Handling of Import Export Freight: service availability and issues - GOV.UK (www.gov.uk)

CHIEF Annual Business Continuity Exercise - Scheduled Outage

niamho@strongandherd.co.uk (Niamh O'Connor) — Thu, 05 May 2022 16:48:49 GMT

Customs Handling of Import and Export Freight (CHIEF) system - Tuesday 10 May 2022 10am to 12pm (midday)

We have been advised due to scheduled work on CHIEF, there may be some disruption to our GVMS online service from 10am to midday Tuesday 10 May 2022. The following actions linked to CHIEF may be affected:

create or update a Goods Movement Reference (GMR) — an error will occur if CHIEF declarations are being associated to the goods movement reference
check-in goods movement references (GMRs) (outbound) — goods movement references with CHIEF declarations will go to a ‘controlled’ state and when the maintenance ends:
queued messages will be processed
the risking response may change from ‘controlled’ to ‘release’
embark goods movement reference (outbound) — departure messages will be queued and will be processed and updated when the maintenance ends
embark goods movement reference (inbound) — goods movement references with CHIEF declarations will go to a ‘controlled state’ and when the maintenance ends:
queued messages will be processed
the risking response may change from ‘controlled’ to ‘release’

You will still be able to enter and validate Customs Declaration Service and New Computerised Transit System (NCTS) declarations to get a goods movement reference during this downtime.

Carriers with inbound crossings on the short straits (Dover and Eurotunnel only):

Due to the timings of the crossings, any GMRs which are embarked during the period of downtime will not update by the end of the crossing and will remain in a ‘controlled’ status.

Carriers should switch off the GMR validation step of the check-in process within their booking system from 10am to midday Tuesday 10 May 2022.

Carriers should continue to collect GMRs for crossings during the period of downtime. GMRs remain mandatory for freight movements using GVMS and hauliers without a GMR should be turned away.

Where possible, carriers should take action to retrospectively check in and embark any GMRs captured during the period of downtime once GVMS is available again from midday Tuesday 10 May 2022.

During this downtime, hauliers moving via Dover or Eurotunnel will not need to attend an Inland Border Facility unless they are instructed to by a customs officer, or

if they are moving goods that are going to an office of departure or office of destination (starting or ending a transit movement),
using any carnet or other document (such as a CITES permit) that needs to be processed by Border Force.

Carriers using GVMS at Standard Exports locations:

During the maintenance period, messages from CHIEF to GVMS will be held in a queue and GMRs containing CHIEF declarations will be initially set as a “controlled” status. When CHIEF becomes available the messages will be sent and any cleared GMRs without outstanding inspections will update from “controlled” to “release”.

Therefore, in order to avoid congestion at check-in, for all outbound standard exports crossings carriers should switch off the GMR validation step of the check in process within your booking system from 10am to midday Tuesday 10 May 2022.

Continue to collect GMRs for crossings during the period of downtime. GMRs remain mandatory for freight movements using GVMS and hauliers without a GMR should be turned away.

Where possible, take action to retrospectively check in and / or embark any GMRs captured during the period of downtime once GVMS is available again from midday Tuesday 10 May 2022.

All other carriers:
Carriers should not turn off GMR validation during this period of downtime. They should continue to collect, validate and embark GMRs for crossings during the period of downtime. GMRs remain mandatory for freight movements using GVMS and hauliers without a valid GMR should be turned away.

You can find more information on the government website

That was the news: April 2022

niamho@strongandherd.co.uk (Niamh O'Connor) — Thu, 05 May 2022 12:29:28 GMT

The 1st of April, or as many of us know it "April Fool’s Day" has been no laughing matter this year. One of the biggest announcements from HMRC in 2022 came towards the end of April, with the Government announcing the cancellation of Border Control Changes due later in the year.

We held our focus on Risk Management throughout April, following the route through international trade, from the sales agreement looking at Incoterms®2020 and the risk they can pose, right through to MSS Reports and how these can be utilised to manage risk and check your data.

For all the latest news & updates, check out our Industry Insights page and don't forget to follow us on LinkedIn !

S&H News: April another month of updates, which saw the team at S&H working hard to bring you the most up-to-date government guidance and information.

Government announces the cancellation of Border Control Changes
We completely understand how frustrating this news will be for many of our clients, this will also have had a financial impact on many who were already well underway with preparations for the changes due in July 2022.

Update to Government Guidance: Importing Organic Food
Importing organic food from the EU, Norway, Iceland, Liechtenstein and Switzerland to Great Britain.

Difficulty accessing import VAT Statements
Some importers have reported an inability to access their monthly import VAT statements , particularly for the March reporting period.

Risk and Incoterms
International Trade can be complex, Incoterms® 2020 are not a mandatory requirement to be included in a sales contract. If a rule is applied it is important that it is used correctly and both parties understand their obligations, costs and risks.

MSS Reports and Trade Compliance
The EORI is only the beginning of the compliance responsibilities for the trader. By subscribing to the MSS Report, this further check enables the owner of the EORI to confirm that their record of customs declarations matches the HMRC information.

Legal Definition Supplier Declarations
Supplier declarations and employing the EU UK TCA at the UK Border: Confirming preferential origin to support goods crossing the UK border may be no simple task, as it can involve the collation of substantial product origin data to evidence that preference may apply.

Importers’ knowledge
If an import declaration is made to Importers Knowledge and the evidence is not seen to have been in place at the point of import during HMRC audit, the liability for duty and any penalty will fall to the importer.

Upcoming Events

Beginners Guide to Exporting & Importing
Where to start? When world of International Trade is vast.... Our Beginner’s Guide is aimed at those new to the industry or those who haven't needed this knowledge prior to the UK exiting the EU.

Join Steve Berry on the 11th of May for this introduction to the world of export and import. No prior knowledge needed for this virtual learning course. The first stepping stone on our learning pathway, where will it take you? Register Here

Tariff Classification Explained - Technical Workshop
Improving your understanding of the Harmonised System (HS) will benefit you and your work in importing or exporting. There is only ever one correct tariff code for your goods, and it's important to know how to use the tariff correctly.

Join Calvin Sherratt on the 12th May as he guides you through this legal requirement. Register Here

AEO Practitioner Qualification Level 3
Covering both Customs Simplifications and Safety & Security, this IQ Level 3 Award takes you through the basics of the AEO requirements, as well as looking at what is required when completing sections 1-5 (Customs) and Section 6 (Safety & Security) of the UK Self-Assessment Questionnaire (SAQ). An important qualification for any company looking at becoming AEO, needing to establish AEO compliance or already approved, requiring a refresher. Completely updated to include the new UK Border requirements and Customs law (the Taxation (Cross-border Trade) Act 2018).

2022 Training Program - Download
We have re-designed our training to deliver a learning program that is accessible for all levels. Our new interactive, trainer-led Virtual and Face-to-Face sessions enable the learner to choose their own individual learning pathway, developing their skills along the way and building on existing knowledge.

Contact us to develop your Learning Pathway
For in-house training or learning pathways tailored to your business please contact enquiries@strongandherd.co.uk

For Public Training please contact info@strongandherd.co.uk

With thanks to Gail Leeson & Steve Berry for this months TWTN

Update to Government Guidance: Importing and exporting organic food

niamho@strongandherd.co.uk (Niamh O'Connor) — Tue, 03 May 2022 15:19:39 GMT

Importing organic food from the EU, Norway, Iceland, Liechtenstein and Switzerland to Great Britain

Updated the guidance under the 'Importing organic food from the EU, Norway, Iceland, Liechtenstein and Switzerland to Great Britain' heading. Use link below to read full guidance.

Importing and exporting organic food - GOV.UK (www.gov.uk)

Government announces the cancellation of Border Control Changes due later in 2022

Fri, 29 Apr 2022 09:36:36 GMT

We completely understand how frustrating this news will be for many of our clients, this will also have had a financial impact on many who were already well underway with preparations for the changes due in July 2022.

The import of phytosanitary goods from the EU into GB has been subject to planned change in border processes for implementation 2022, the first stage of import procedures having been implemented in January 2022 as planned.

However, the government has announced that further planned implementation of controls to imports due to be implemented between 1 ^st July and November 2022 will not take place, and procedures for imports of phytosanitary goods will remain as implemented on 1 ^st January 2022. This change includes imports of affected phytosanitary goods from Ireland into GB .

Technical data for those impacted:

Procedures that were implemented 1st January 2022

Pre-notification required for imports of products of animal origin, animal by-products, high risk food not of animal origin and lower risk plants and plant products.

Pre-notification using IPAFFS will remain necessary for all phytosanitary goods imported EU to GB.

The following changes to import procedures for phytosanitary goods from the EU into GB will now not be implemented.

Import Procedures due 1 ^st July 2022

Implementation of physical, document and ID checks on remaining regulated animal by-products,

meat and meat products, lower risk plants and plant products and remaining high risk food not of animal origin

Changes to Import Processes due on 1st September 2022

Physical, document and ID checks on dairy products

1st November

Physical, document and ID checks on all remaining products of animal origin, composite products and fish products.

In summary:

Pre-notification of phytosanitary goods remains necessary, but provision for Export Health Certificates and Border Control Inspections will not now be required from 1 ^st July 2022.
Organic products will not be subject to further change in import processes from those implemented in January 2022.
Phytosanitary Imports from Ireland into GB will remain as of January 2022, with no pre-notification of import required.
Phytosanitary goods subject to safeguard measures from 1 ^st January 2021 will remain subject to those measures. These measures include pre-notification, the requirement for Export Health Certification and border control inspection. This is unchanged.
Personal phytosanitary goods carried from the EU whether in luggage or in a vehicle will be subject to inspection.

We completely understand how frustrating this news will be for many of our clients, this will also have had a financial impact on many who were already well underway with preparations for the changes due in July 2022. As a company, Strong & Herd are here to help you and your business navigate the complexities of international trade and to keep you updated with the key facts and most recent information.

Delay in the publication of March 2022 Import VAT statements on the Customs Declarations Service

Thu, 28 Apr 2022 16:35:30 GMT

Some importers have reported an inability to access their monthly import VAT statements , particularly for the March reporting period.

HMRC have indicated that March reports should be available by 28 ^th April, 2022.

Further information is below, including a link to the guidance.

If you cannot access your statements

We are aware that some importers are having problems when trying to access statements to account for import VAT on VAT returns, particularly in March 2022.

We are working urgently to resolve this issue and expect to have March statements available from Thursday 28 April.

You can estimate your import VAT figures for the months you cannot access statements for.

Your estimate should be as accurate as possible, based on the amount you’ve paid for the goods and any other costs you agreed to cover.

For example:

packaging
transport
insurance

Your estimate can include any customs duties due on the goods, but it does not have to do so.

Once you can access the service and get your statement, you’ll need to make an adjustment to reflect the difference from your estimate, and account for this on your next return.

A link to the guidance is below:

https://www.gov.uk/guidance/complete-your-vat-return-to-account-for-import-vat#access

Government Announcement Delay on Controls for 1st July 2022

Thu, 28 Apr 2022 11:00:52 GMT

The government have released a Written Ministerial Statement this morning outlining that the remaining import controls on EU goods will no longer be introduced this year. What this means for our members and clients is any preparations they were making for the changes in July can be postponed.

The government have released a Written Ministerial Statement this morning outlining that the remaining import controls on EU goods will no longer be introduced this year.

Instead, traders will continue to move their goods from the EU to GB as they do now.

There is no indication of when the import controls will be introduced.

Government have confirmed that work will continue with industry to assess how a safe, secure and efficient process for dealing with EU imports can be created. This will build on existing work already taking place, including the UK Single Trade Window which teams in HMRC have been working hard to deliver as part of the 2025 Border Strategy.

What this means for our members and clients is any preparations they were making for the changes in July can be postponed. We will keep you updated as the information comes to us about what you need to do as a business when trading with the EU.

DIT release update to Trans-Atlantic Treaty dialogue

Thu, 28 Apr 2022 08:42:55 GMT

Following the conclusion of the second trade dialogue on future of Atlantic trade in Aberdeen, Scotland, on 25-26 April, the government have published the UK-US Joint Statement

https://www.gov.uk/government/news/joint-statement-on-uk-us-dialogue-on-future-of-atlantic-trade-in-aberdeen

The Dialogue builds on the successful inaugural Trade Dialogue in Baltimore, US, earlier in March. Drawing on the stakeholder discussions and bilateral talks Secretary of State Trevelyan and Ambassador Tai held in Aberdeen and Baltimore, they directed their teams to work at pace over the next several weeks to develop an ambitious roadmap with economically meaningful outcomes in a number of areas, including:

Supporting SMEs to trade
Harnessing the benefits of digital trade
Levelling up and worker-centric trade
Supporting resilient supply chains
Food security
Supporting the environment and climate action
Russia’s invasion of Ukraine.

Further details of the events which took place during the dialogue are at the link below, including good news for Scottish Whiskey producers:

https://www.gov.uk/government/news/us-trade-delivering-for-scotland-as-aberdeen-hosts-second-transatlantic-dialogue

DIT are keen for contact and questions relating to the Atlantic Treaty, and have released further information on Twitter – Links below:

https://twitter.com/tradegovuk/status/1519010945833619458

https://twitter.com/annietrev/status/1519005080254615552

UK Government announce new Trade Measures to support Ukraine

Tue, 26 Apr 2022 12:52:08 GMT

International Trade Secretary Anne-Marie Trevelyan met Ukrainian Ambassador to the UK Vadym Prystaiko in London last week to reiterate the UK’s unwavering support for Ukraine.

The UK Government has announced new trade measures to support Ukraine following Russia’s illegal invasion. These include:

The removal of tariffs on all goods from Ukraine, providing much-needed economic support;
New export ban on products and technology that Russia could use to repress the people of Ukraine. These could include interception and monitoring equipment;

These tariff measures are part of broad UK economic support to Ukraine, including £1bn in loan guarantees.

International Trade Secretary Anne-Marie Trevelyan met Ukrainian Ambassador to the UK Vadym Prystaiko in London last week to reiterate the UK’s unwavering support for Ukraine.

The full press release is available on Gov.uk .

On Thursday 21 April, the Trade Secretary and Chancellor of the Exchequer Rishi Sunak also announced further trade sanctions against Russia, expanding the list of products facing import bans and increasing tariffs. These include import bans on silver, wood products and high-end products from Russia such as caviar.

The UK will also increase tariffs by 35% on around £130m worth of products from Russia and Belarus, including diamonds and rubber.

You can read the full press release here .

As a reminder, businesses and traders with questions relating to trading with Ukraine, Russia, and Belarus can submit their enquiries to DIT’s Export Support Service by visiting https://www.gov.uk/ask-export-support-team , or calling the helpline using the number 0300 303 8955.

The full list of sanctions is available here , and you can read the guidance to assist in the implementation of, and compliance with these sanctions here .

Importers’ knowledge

Thu, 07 Apr 2022 13:43:25 GMT

If an import declaration is made to Importers Knowledge and the evidence is not seen to have been in place at the point of import during HMRC audit, the liability for duty and any penalty will fall to the importer.

In some trade agreements, an importer can claim a preference duty rate using information the importer holds that confirm the origin of the goods. This is known as ‘importers knowledge’ and can be used as an alternative to an exporter origin declaration

However, the compliance requirement on the importer is heavy, and the method can easily be mistaken if there is an assumption on the part of the importer that goods being delivered from a country are originating from that country under preference conditions (compliant with a free trade agreement).

Example:

An importer that has exported technology to enable production of products in an EU member state for return to the UK post-production, could have enough information on the product, production methods and source of materials to enable the use of Importers’ Knowledge at import into the UK.

Depending on the rules of the trade agreement being implemented at import, the UK importer may be required to hold the following compliance records for HMRC audit:

The commodity code of the goods.
A brief description of the production process (including the origin of the goods or materials used).
If the origin of the product for import is based on production materials being ‘wholly obtained’ (that is, if using the UK EU TCA, the materials that are used in production are wholly obtained from EU member states), the category for the goods would need to be recorded.
If the origin was based on ‘sufficiently worked or processed’ one of the following must be evidenced and recorded:
The value of the product as well as the value of all the non-originating materials used in production (if any are used) to establish compliance with the value requirement of evidencing originating materials used in the production process.
The weight of the product as well as the weight of any non-originating materials (if relevant) to establish compliance with the weight requirement of originating materials used in the product.
A list of all the non-originating materials, including their commodity code (in two, four or six-digit format, depending on the origin criteria).
Whether the goods have been altered or transformed.
If asked by HMRC, any additional information that will help verify the origin of the goods.

Importers’ Knowledge and the EU UK Trade Cooperation Agreement

Importers bear the burden of holding compliance evidence at import if preference is being claimed. If Importers Knowledge is used, the importer must have the relevant detailed information given above.

Important indicators on an import declaration that confirm the type of evidence that the importer holds when importing to preference duty rates using the EU UK TCA.

Document code given in box 44 of the import entry:

U110 + U111 indicates that an exporter preference statement has been used as evidence.
U112 indicates that importers knowledge has been used as evidence.

For clarity

For compliance purposes, the onus for evidence rests on the importer, as the origin information must be held by the importer in the UK at the time of importing using preference.

If an import declaration is made to Importers Knowledge and the evidence is not seen to have been in place at the point of import during HMRC audit, the liability for duty and any penalty will fall to the importer.

When importing using an exporters declaration as compliance evidence, the onus falls on the exporter declaring preference applicability, and HMRC have a recourse in regulation to enable requesting the supporting evidence from the authorities in the exporter’s country. There is no regulatory method for HMRC to request this information if the UK importer has declared to Importers Knowledge.

Legal Definition Supplier Declarations

Thu, 07 Apr 2022 13:12:09 GMT

Supplier declarations and employing the EU UK TCA at the UK Border:

Confirming preferential origin to support goods crossing the UK border may be no simple task as it can involve the collation of substantial product origin data to evidence that preference may apply.

Free Trade Agreements: Basic Principle

The basic principle when considering employing preferential origin to confirm a lower or zero duty rate on import, is to ensure that the trade agreement you are applying is understood for the compliance requirement, and that the compliance requirements are met.

Each agreement is different, and the EU UK Trade Cooperation Agreement is unlike any Free Trade Agreement the UK has with any other country. The TCA does not replace the pre-EU Exit free movement of goods, but instead offers movement within a strict protocol based on Preferential Origin.

Legal requirements

It is a legal requirement that UK exporters must evidence that their goods meet the Product Specific Rule within the TCA by collating supplier declarations from within the supply chain for those goods, before the UK manufactured product is exported. This origin compliance data must be filed for audit

The EU UK Trade Cooperation Agreement – At Export

A UK exporter wishing to confirm to an EU recipient customer that supplied goods are UK origin, it will be necessary to have records in place to evidence how you arrived at that preferential origin conclusion before you make the preference statement. This is a legal requirement.

Without this supporting evidence your business will not be compliant with UK regulations, or with the EU UK TCA.

Supplier Declarations: Evidence from the supply chain

Supplier declarations are documents that a supplier provides to an exporter to help establish whether the goods for export meet the Product Specific Rules of origin.

Example: If a UK manufactured product does not meet the PSR in the TCA on its own origin merit, then evidence could be gathered from within the supply chain that could confirm that the percentage of UK origin goods has been met.

Supply Chain Evidence and the UK EU Easement for Supplier Declarations to support an Export

There has been an easement in place for both UK and EU exporters, to allow time to gather the supplier information to support the use of a preference statement to be made at export of the UK manufactured goods.

This easement was for both UK and EU member state businesses and was based on the premise that UK and EU businesses would need time to build product origin records to support the declaration of Preference Origin applicability. Preference Origin is main stay of the EU UK Trade Cooperation Agreement.

This easement is restricted in what it was intended to do. It does not apply to a UK importer claiming a preferential duty at IMPORT. The importer must have the origin compliance evidence in place at the time of import.

The EU UK Trade Cooperation Agreement – At Import

The salient point to note is that when IMPORTING to preference, it is a legal requirement to have the compliance evidence in place BEFORE making the import declaration. There has been no easement either in the UK or the EU for making IMPORT declarations to a preference duty rate.

Without the supporting evidence of preference origin, an exporter CANNOT issue an exporter preference origin statement on the export paperwork, and the EU importer relying on that information to evidence preference on import into an EU member state, will not be compliant.

Importers Burden to evidence preference compliance at import – Compliance Considerations:

Without evidence of preference origin in place at import, the importer is non-compliant.
An exporting business must hold supplier origin declarations to support any exports that have made in 2021
If your business has been asked to verify goods origin for any exports made to the EU between 1 ^st January, 2021 and December 31 ^st 2021 and your business cannot provide either a supplier declaration or other suitable evidence to confirm goods origin, you must let your customer know
If an exporter is asked to verify the preference origin of goods and cannot provide this supporting evidence:
The importer will be liable to pay the full, non-preferential customs duty
The importer may be charged a penalty, and
The exporter may be excluded from using preferential tariffs going forward.

While you are here you may be interested in some Strong & Herd LLP training courses related to this topic:

MSS Reports and Trade Compliance

Thu, 07 Apr 2022 12:18:24 GMT

The EORI is only the beginning of the compliance responsibilities for the trader. By subscribing to the MSS Report, this further check enables the owner of the EORI to confirm that their record of customs declarations matches the HMRC information.

International Trade means Customs Declarations. To allow our goods to be exported from, or imported into the UK, there needs to be a declaration made to HMRC, who need to know specific information relating to the goods and the parties involved in the transaction.

This makes the EORI vitally important. Businesses cannot trade internationally without an Economic Operator Registration Identification. A GB EORI will be the business VAT Number, with an additional 3 digits. Although the EORI system applies in the EU, a GB EORI is required for the trader to be named as the consignor to export from the UK, or the consignee to import into the UK.

The EORI is only the beginning of the compliance responsibilities for the trader.

All the components of the declaration are the traders’ responsibility.

The trader could decide to ask a third party to complete the declaration to HMRC CHIEF. However, the trader must confirm their requirements to enable the Customs Declaration to be completed. The forwarder, carrier, customs broker, fast parcel operator (the declarant) needs to be established in the UK. The declarant cannot work on behalf of the trader without a written instruction. It must be confirmed if the declarant is working with the trader as a direct or indirect representative.

Providing the instruction to the declarant is only part of the compliance requirements. The trade must obtain a copy of the customs declaration to check it matches the instruction they have provided.

There are many considerations for a business to be a compliant International Trader. The name, address and EORI of the business identifies the trader to HMRC via the CHIEF declaration. There could be a variety of different departments who are involved in the various pieces of information that are required to be declared.

Sales could agree the export valuation. Purchasing could agree the basis of the import value. Various departments could be involved in classifying the goods against the UK Tariff. A business will need to decide if their export is permanent or temporary to ensure the correct Customs Procedure Code is declared. Preferential Trade is a consideration for many traders especially in a post Brexit World. However, Box 36 is a mandatory field for goods being entered to free circulation even if preference doesn’t apply.

Multiple customs declarations means that trade compliance need to provide instructions and check entries for a variety of different shipments each month.

It is important to know when the business EORI has been used. A log, record, or accessible database of each export / import is vitally important. This is the basis for the retention of documentation relating to international trade which businesses must keep on file. HMRC carry out audits on businesses to ensure they are compliant. All documentation relating to the export and import process must be retained. Goods could be temporarily imported under a special procedure, such as Inward Processing and subsequently exported after repair (as an example). In this example goods could appear on both the Import and Export log and the appropriate Customs Procedure Codes would “link” the two shipments.

An up to date log will ensure that the business knows what shipments have been made, when they have received a copy of the declaration and when that information is still waiting to be received.

For added compliance awareness, the international trader should consider subscribing to MSS Data. To explain, the acronym MSS is the Management Support System. This is a monthly report in the form of an e-mail spreadsheet supplied by HMRC that details every time the applicants’ EORI has been used in the month that the report relates to.

The key compliance check is to ensure that the business record of when their EORI has been used matches the information that HMRC has provided. Each customs declaration will have a unique reference number and a date. Keeping a record of the entry number whilst checking the information that has been declared is a useful exercise as there could be multiple customs declarations in each month.

The MSS Report will contain key pieces of information that form part of a traders’ compliance responsibilities. On the Export Entry Standard Item report this detail includes the Commodity Code(s), Customs Procedure Code, the ICS (Input Customs Status) and SOE (Status of Entry) code, which can be used as part of the traders’ evidence of export.

The equivalent import MSS Data (MSS Import Entry Standard Item report) also includes the Tariff Code and the type of import (the CPC), as well as the Preference Code that has been quoted in Box 36.

Full details of what information is available and how to subscribe to MSS Reports can be found on gov.uk https://www.gov.uk/guidance/mss-supporting-guidance#how-the-data-is-sent-to-you

Crucially for each declaration on the MSS Report, the entry number and the declarant are named.

This means that if the trader hasn’t received a copy of the customs entry, they can quote the entry number to the declarant to identify the document required.

If it is a customs declaration that the trader doesn’t recognise, they have the name of the declarant and the entry number to quote to carry out an investigation.

Ideally the traders’ record of their customs declarations should match the MSS Report. If there are additional entries on the MSS, the trader has the information to ask the declarant for further details.

This is important information to be aware of, especially if a business EORI has been incorrectly used. If a business has a record of their exports and imports and has obtained a copy of all the customs declarations that relate, that could be seen as compliant. By subscribing to the MSS Report, this further check enables the owner of the EORI to confirm that their record of customs declarations matches the HMRC information.

This will be important at audit when HMRC would audit the actual date submitted against the EORI. As customs compliance has increased due to the UK’s departure from the European Union, the importance of the benefits of MSS Data shouldn’t be underestimated.

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Introduction to Customs Procedures

Import Essentials: An Introduction to Importing

CDS Imports: The Customs Declarations Service

Focus On: Incoterms® 2020 Rules

Risk and Incoterms

Thu, 07 Apr 2022 11:54:29 GMT

International Trade can be complex, Incoterms® 2020 are not a mandatory requirement to be included in a sales contract. If a rule is applied it is important that it is used correctly and both parties understand their obligations, costs and risks.

Incoterms or International Commercial Terms provide exporters and importers with rules on "who is responsible for what" when goods move between a seller and the buyer. Although Incoterms are primarily designed for the movement of goods between two countries, they can also be used for domestic trade. Whilst considering the terms "seller" and "buyer" it is important to be aware that Incoterms does not stipulate the requirement for a sales contract to be in place, so the rules could apply for a movement of goods where there is no sale or purchase. Goods being exported to an overseas repair centre is one example.

International Trade means that a variety of costs must be covered. Documentation, customs declarations, domestic haulage, international freight duty and tax will be incurred when goods move between two points. For every Incoterm rule, the seller and buyer obligations are clearly defined. With obligations agreed, both parties will be clear on their responsibilities to establish what the financial impact will be to adhere to the select rule.

Separately, the seller of the goods will need to make a commercial decision on if they will pass any or some of the costs onto the buyer.

It is important to remind ourselves that although the Incoterms rules stipulate the two parties as the “Seller” and “Buyer” there doesn’t need to be a sales contract in existence for Incoterms to apply.

Obligations and Costs are only part of the story when understanding what Incoterms covers. The other considerations are when the seller delivers the goods to the buyer and when risk transfers from one party to another.

A consignment could move by road from Aberdeen to London or by sea from Felixstowe to Yokohama. If there was loss or damage en-route to the final destination, who would have the responsibility to replace the goods?

Incoterms do not work unless there is a delivery point named. Depending on the rule that has been selected, this might not be the final resting place of the goods. As an example, goods could be shipped under the Incoterm FCA which is Free Carrier. However, an Incoterm in isolation doesn’t provide enough detail. A clearer use of the rule would be FCA Middlesborough TS1 1HR (Incoterms® 2020) Now we have more detail to clarify that FCA has been applied and by checking the rule, we can establish that the risk is transferred from seller to buyer when the goods are loaded onto the vehicle at the sellers’ premises in Middlesborough. It is also clear which version of Incoterms applies.

From this information, we are unable to ascertain the final delivery point of the goods, but this information will be needed for customs and logistics purposes. This detail could be provided on an invoice, despatch note or separate instruction. What is clear is that in the instance that there is any loss or damage to the goods after they have been loaded on the vehicle, the buyer will have the responsibility. This means that the buyer will need to consider if they wish to cover their risk with appropriate insurance cover, based on the goods and the journey the consignment will make. However, under this Incoterm, as well as 8 other rules, there is no responsibility for the seller or buyer to insure their risk. What must happen is the point that the risk is transferred from one party to another is clear to enable the decision to be made on insurance. A consignment could be worth £100 and if there is loss the party responsible may decide not to insure and take their chances that the goods will arrive in one piece. A consignment worth £100,000 is a different story.

It might be wise to think about insurance for a container on the high seas or a pallet on an aircraft, but Incoterms and stipulating the delivery point could mean a consideration of risk for a domestic journey.

Goods could be purchased from a supplier in China on DAP Southampton Port (Incoterms ® 2020) The Chinese seller will have the risk until the goods arrive at the UK Port. DAP is another example where the seller or buyer do not have to insure their risk. The consideration is where does the buyer require the goods delivering to in the UK? Their warehouse could be in Leeds. In this instance the buyer would have the domestic transport costs from the port to their warehouse. The buyer would also have the risk. The UK Haulier could have insurance, but is it sufficient for the buyers’ needs?

Knowing where their risk begins, and ends, is vital to enable the seller and buyer to decide if they wish to insure the goods.

The exceptions to risk and Incoterms are the C Terms. There are four in all, but two are for use when goods move as conventional freight or via in-land waterways. The other two can be used for other modes of transport, including multi-modal.

Using an example, the seller agrees with the buyer a CPT Incoterm, Carriage Paid to. Using the example CPT Sydney Airport (Incoterms ® 2020), this confirms that the seller is agreeing to deliver the goods to the named point in Australia, but where does the risk transfer to the buyer? Based on this rule, it won’t be at Sydney Airport.

The default position, if another point is not agreed, is when the goods have been delivered to the first carrier (the same as the FCA example) but the best practice is to agree exactly where the risk is transferred, as another named point is also possible. It will then be clear when the sellers’ and buyers’ insurance responsibilities begin and end (again) without the obligation to obtain cover.

The only two Incoterms which stipulate insurance are CIP (Carriage and Insurance Paid To…) and the rule for conventional sea freight, CIF (Cost Insurance and Freight).

In these two instances, the seller must insurance the buyers’ risk based on a level of cover that is stipulated in the rule, unless both parties agree a different policy. As with our previous example, CIP Sydney Airport doesn’t provide the clarity needed to confirm where the sellers’ risk transfers to the buyer, so that point must be clear to enable the seller to obtain the necessary insurance cover. Subsequently, the seller must provide the buyer with evidence of the insurance cover.

Risk will always be an element whether goods are moving 10 miles or to the other side of the world. Insurance is mandatory for two Incoterms, but it could apply for the other terms. It is important to be aware that for many countries, the customs authority will want three components declared to establish the dutiable value. Sometimes known as the CIF Value and not to be confused with the Incoterms, the requirements are the Cost of the Goods, the Insurance Value, and the Freight Cost to the country of import. We have clarity that if the CIF Value is required and if the goods have been insured, this component must be included.

International Trade can be complex, Incoterms are not a mandatory requirement to be included in a sales contract. If a rule is applied it is important that it is used correctly and both parties understand their obligations, costs and risks.

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Focus On: Preparing for an Export Control Audit

Focus on UK Export Control Audit: Assessing Non-Compliance Risk at audit

Thu, 07 Apr 2022 10:19:38 GMT

Whether a business has received notification from the authorities of an impending audit, is preparing for an internal audit as part of established business compliance procedures or is simply aware of the importance of keeping the business compliant with evolving trade regulations – a third party review of the business compliance records can make all the difference to the official audit result.

The recent swift implementation of UK Russian Sanctions has highlighted the importance of End-Use due diligence to exporting businesses, sanctions being an issue that many UK businesses had not considered until the crisis arose in Ukraine. End-Use of goods subject to strategic controls has always been a compliance requirement and evidencing due diligence to that requirement may only become apparent at audit.

UK businesses are also facing challenging compliance issues post EU Exit.

Businesses that traded solely with EU businesses before the UK left the EU have been particularly impacted, having had less exposure to international trade regulations until the compliance requitement hit in 2021.

Strong and Herd can help interpret the relevant regulations into working business activities, identifying goods and practices in regulatory terms, to increase a business understanding of the compliance requirements, giving a thorough understanding of what is to be expected at, and prepared for during an ECJU or HMRC audit.

Some key business focus areas for an Export Control Audit:

UK Export Controls: UK export licencing, including but not limited to military and dual use controls
US extra-territoriality controls, ITAR, EAR and US Sanction controls
Other country controls including EU regulatory compliance
Evidencing Due Diligence, End Use and Sanctions controls
Preparation of robust compliance processes
Preparation of ECJU Pre-Visit Questionnaire
Preparing for a Voluntary Disclosure

As part of our new “Focus on…” sessions Strong and Herd’s Gail Leeson & Steve Berry will guide the licence holder to prepare for an audit by understanding what will be required prior to the auditors visit, what will happen on the day and the information required together with post audit next steps.

That was the news: March 2022

niamho@strongandherd.co.uk (Niamh O'Connor) — Thu, 07 Apr 2022 09:04:51 GMT

The past few weeks have been dominated with sanctions updates, which more than anything highlight the need for compliance within international trade. Compliance can be a complex area, increasingly so in today's world.

Throughout March we focused our attention on risk management, a theme we will be continuing with throughout April. March also saw us celebrate International Women’s Day, looking back on a time when women were banned from even taking up positions as customs and excise officers. Thankfully, the world of international trade has moved on since then!

For all the latest news & updates, check out our Industry Insights page and don't forget to follow us on LinkedIn !

S&H News: March drew our attention to risk management; from knowing who your customer is to the risk posed through representation, and understanding your product with regard to licence requirements.

Customs Valuation - An Overview
Establishing the correct Customs Value is a legal requirement. The first rule is that, when there is a sale, you must always declare the Transaction Price.

What are Export Controls and why are they so important?

Export Control compliance demands that businesses act responsibly in terms of the goods they supply and the information they provide to overseas entities.Export Controls are not solely a UK consideration. They apply across world trade.

A Spotlight On: The Methods Of Valuation
Money makes the world go round but until customs know who is paying the Duty and VAT the recipient will not be able to take delivery of the goods. Essentially valuation is one of the cornerstones of International Trade and Customs Compliance.

2022 Training Program - Download
We have re-designed our training to deliver a learning program that is accessible for all levels. Our new interactive, trainer-led Virtual and Face-to-Face sessions enable the learner to choose their own individual learning pathway, developing their skills along the way and building on existing knowledge.

" Strong & Herd LLP strive to build a community of mutual respect internally and with our great clients and members of our business support communities. Making training fun, interactive and practical is important to us and this price increase enables us to continue with this high level of service.

We are focusing our time developing new learning pathways that will guide you through the complex world of international trade with modules & training courses to suit your specific company requirements and learning needs." Sandra Strong Managing Partner

AEO Practitioner Qualification Level 3
Covering both Customs Simplifications and Safety & Security this IQ Level 3 Award takes you through the basics of the AEO requirements as well as looking at what is required when completing sections 1-5 (Customs) and Section 6 (Safety & Security) of the UK Self-Assessment Questionnaire (SAQ), an import qualification for any company looking at becoming AEO, needing to establish AEO compliance or already approved, requiring a refresher. Completely updated for UCC changes and EU-Exit implications.

Software Showcase with AEB - From CHIEF to CDS: Customs Update and Software Demo - FREE EVENT
This free webinar is relevant for companies of all sizes and across industry sectors that trade across UK borders – whether you are looking to migrate from CHIEF to CDS, seek a new CDS solution, want to change your provider, or are just starting out to manage customs declarations.

With thanks to Gail Leeson , Andy Baker, Tim Hiscock & Steve Berry for this months TWTN

Update GVMS Service Problems

Wed, 06 Apr 2022 12:36:08 GMT

Following our update on Monday 4 April, we are continuing to investigate the GVMS IT issue and have made the decision to leave the current continuity plans in place until midday Monday 11 April to allow flow at the border to continue uninterrupted while this work takes place.

HMRC apologise for the inconvenience this is causing.

The GVMS service availability page is being updated urgently https://www.gov.uk/government/publications/register-for-the-goods-vehicle-movement-service-service-availability-and-issues/register-for-the-goods-vehicle-movement-service-service-availability-and-issues

The important bit

Hauliers will need other evidence that a declaration has been made for example:

Transit Accompanying Document (TAD) (If unable to create a TAD, then photocopies or digital copies of copy 4 of the SAD should be carried)
Movement Reference Number (MRN)
Entry Reference Number (ERN)
Declaration Unique Consignment Reference (DUCR)
Postal Operators moving goods between GB and the EU will not be able to provide MRNs so alternative documentation can be accepted. Similarly, confirmation that consignments which qualify for the waiver that applies to parcels moving from GB into NI can also be accepted
Hauliers with empty vehicles can provide their GB EORI number

During this downtime, hauliers moving via Dover, Holyhead or Eurotunnel will not need to attend an Inland Border Facility unless they are instructed to by a customs officer, or if they are moving goods that are:

going to an office of departure or office of destination (starting or ending a transit movement);
covered by an ATA Carnet; or
need a CITES permit.

Customs declarations must be manually ‘arrived’ once the goods have arrived in GB, so that HMRC is aware that the goods are in the country. During the downtime, it has not been possible for declarations to be ‘arrived’ automatically in CHIEF or CDS via GVMS.

For goods that have arrived in GB while the interim measures have been in place, the declarant, trader or third-party intermediary who submitted the declaration will need to notify HMRC of the goods’ arrival manually.

To do this the declarant, trader or third-party intermediary will need to log into CHIEF or CDS and send the ‘arrival’ message confirming the goods are in the UK.

Planned Downtime
Saturday 9 April 2022 9:30pm to 7:30am Sunday 10 April 2022

GVMS Service Issues and Planned Downtime - Update 01.04.2022

niamho@strongandherd.co.uk (Niamh O'Connor) — Fri, 01 Apr 2022 09:51:54 GMT

HMRC have advised system issues with GVMS 01/04/2022

We are aware there are some system issues and our technical team are working to resolve them as quickly as possible.

Our service availability page for GVMS has advice for hauliers to follow: https://www.gov.uk/government/publications/register-for-the-goods-vehicle-movement-service-service-availability-and-issues/register-for-the-goods-vehicle-movement-service-service-availability-and-issues

That if they do not have a goods movement reference, they can now proceed with alternative documentation, for example one of the following:

transit accompanying document (TAD)
movement reference number
entry reference number
declaration unique consignment reference (DUCR)

Postal Operators moving goods between Great Britain and the EU will not be able to provide movement reference numbers so alternative documentation can be accepted. Any confirmation that the consignments qualify for the waiver that applies to parcels moving from Great Britain into Northern Ireland can also be accepted.

Businesses can access support with any system-related problems via our CIT helpline: https://www.gov.uk/government/organisations/hm-revenue-customs/contact/customs-international-trade-and-excise-enquiries

Planned Downtime
Saturday 9 April 2022 9:30pm to 7:30am Sunday 10 April 2022

2022.03.28 Notice to Exporters 2022/10 - ECJU update to Open General Export Licences

Tue, 29 Mar 2022 10:31:10 GMT

ECJU update to Open General Export Licences

The Export Control Joint Unit (ECJU) has revised the following OGELs to require registration before first use of the licence:

export after repair/replacement under warranty: dual-use items
export after repair/replacement under warranty: dual-use items – from June 2019
PCBs and components for dual-use items
PCBs and components for dual-use items – from June 201 9
The following OGELs have been revised to allow items to be exported from the UK, after repair in the UK, or the country of original manufacture.
export after repair/replacement under warranty: military goods – updated to allow items to be exported from the UK, after repair in the UK, or the country of original manufacture
export after repair/replacement under warranty: military goods – from June 2019 – updated to allow items to be exported from the UK, after repair in the UK, or the country of original manufacture

In addition, the OGEL export of dual-use items to EU member states , has been updated to include Iceland as a permitted destination.

HMRC Advise of CDS Systems Downtime for 31st March & 9th April, 2022

Thu, 24 Mar 2022 15:41:51 GMT

We recently made you aware we would be making changes to Customs Declarations Service (CDS) on 31/03/2022 and 09/04/2022

As a result, you would not be able to submit declarations, or populate GMRs with CDS declaration references. These timings have now been updated as below:

Thursday 31 March 2022 9:45pm to 11:15pm - CDS maintenance
Saturday 9 April 2022 9:30pm to 7:30am Sunday 10 April 2022 - CDS maintenance

You should submit your declarations and complete your GMR with any CDS MRNs/ DUCRs before 21:45 on 31/03/2022 to avoid any delays.

Please contact CDS Technical Support Team as usual if there are any queries via the following email address: cds.operations@hmrc.gov.uk

In addition, please see the below upcoming DERFA webinars, for your info:

Webinar meat and meat products

This webinar is designed to provide importing businesses based in Great Britain with a more in depth understanding of the process that needs to be followed to continue importing meat and meat products from the European Union. This session will take you through all the steps you need to complete from 1 July 2022. It will cover some steps EU exporters need to be aware of too.

Webinar Animal By products

This webinar is designed to provide importing businesses based in Great Britain with a more in depth understanding of the process that needs to be followed to continue importing animal by-products from the European Union. This session will take you through all the steps you need to complete from 1 July 2022. It will cover some steps EU exporters need to be aware of too.

A Spotlight On: Representation and Risk

Tue, 22 Mar 2022 13:41:06 GMT

Has Representation been considered within your supply chain? Why? you might ask.

Every export and import consignment has the element of risk, together with the type of Representation that has been used. Customs debts include duty, VAT and Anti-Dumping Duties that may be applicable at the time of import and export due to any errors or omissions. Has Representation been considered within your supply chain? Why? you might ask. This is because Representation determines who is responsible for any customs debts due to errors, be it the agent, importer or exporter.

Why would Representation be important?

Representation means that an agent, customs broker, or freight forwarder is representing you for customs purposes at the time of import or export. HMRC also uses the term 'liable' which indicates who would be responsible for any customs debts, should there be any errors and omissions within your import or export entry. This can be a real concern for businesses and needs to be a part of your compliance process. Remember, it is always the importers' or exporters' responsibility to ensure that the correct customs clearance information is passed onto the agent, customs broker or freight forwarder. How can they complete a customs entry on your behalf if they have not been instructed to do so with your clearance instructions? This could lead to disputes as to who has to pay for any duties arising from errors, and this is the main focus on Representation.

Types of Representation

There are three types of Representation, the first being Self-Representation. This is where you are completing your own customs entries on your own software, so you are representing yourself. The next two types of Representation focus on a second party completing the customs entries for you. These are known as 'Direct' and 'Indirect' Representation. But, why are these important?....

Indirect Representation is the default Representation type between the parties and it means that both parties are jointly and severally liable for any customs debts. This means that, should there be any customs debts due to errors or omissions (on the customs entry), both parties would be liable for the customs debts, be it the agent, importer or exporter. If an agent delegates the task of making a customs declaration to a sub-agent, then the sub-agent and the importer or exporter will both be liable for any customs debt. If the sub-agent is an employee of the agent, the agent may also be liable in this case, so careful consideration is needed.

Direct Representation focuses on the agent or freight forwarder acting solely on the importers' or exporters' behalf. Thereby meaning that any debts that may be due, again from any errors or omissions, will be the sole responsibility of the importer or exporter. This is the preferred Representation type used by agents and freight forwarders, and you can see why this is the case because it means that the agents and freight forwarders are not liable for any customs debts due to errors and omissions. They are simply following the importers' or exporters' instructions for clearance.

However, Direct Representation does also have its' own risks for the agents and freight forwarders, because if the agent makes a deliberate or unreasonable error, then the agent may become jointly and severally liable for the customs debts due. There is also another risk with Direct Representation, involving a sub-agent. If a sub-agent has been delegated with the task of completing the import or export customs entry, then the agreement between the agent or freight forwarder must make allowances for this. This can quite often not be the case within any Direct Representation letter between the parties, so it is important to ensure that, if a sub-agent is employed, then it should be made clear within the agreement. If it is not within the Direct Representation agreement, then the sub-agent will not be empowered to directly represent the importer or exporter and they will be considered to be acting on their own behalf, and they will be fully liable for any customs debt that arises.

As you can see, both Indirect and Direct Representation have their own risks to both the agent and the importer or exporter. In order for an agent to act in a Direct capacity on behalf of the importer or exporter, then the agent must have a Direct Representation letter signed by the importer or exporter. The agent should not arrange for an import or export entry to be completed under Direct Representation, unless they have written authority to do so.

You may have come across an agent asking to you to complete a Direct Representation letter. Hopefully, you can now see why they have requested this.

How do I know which Representation type my agent has used?

This can be found within the customs entry itself, so always ensure that you receive a copy of the customs entry from your agent. SAD Box 14 within your CHIEF customs entry is the declarant information field that is completed and this is where it will state which Representation type has been used. Together with the declarant's name and address, it will also state the declarant's EORI number, and next to the EORI number you will see either a 2 or a 3:

2. Means Direct Representation type has been declared.

3. Means Indirect Representation type has been declared.

Note that Self-Representation is declared by selecting Representation type 1.

Always make sure that the agent has a copy of your clearance instructions, and check that the customs entry has been completed correctly. If the agent has not followed your instructions and the entry has been cleared incorrectly (possibly leading to customs debts), then the Representation type will be used by HMRC in any compliance action.

Make sure this is a part of your compliance procedure to check which Representation type has been used, remembering the rules above, and who is responsible for the customs debts if they occur.

While you're here, you may be interested in

Shipping Office Services - We have the experience to ensure your company remains compliant with the laws relating to international trade as well as helping you benefit from improved compliance and expertise aspects of Customs procedures.

Find out more

How to Complete Export Customs Entries

How to Complete Import Entries

Russian Sanctions Update - Additional Duties of 35% on Russian and Belarusian Imports

Thu, 17 Mar 2022 07:30:18 GMT

Russian imports of the following products will face an additional tariff increase of 35 percentage points, over and above any existing tariff rate.

Provision for changes to the tariff are legislated under the Taxation (Cross-Border Trade) Act (2018).

The following goods will be affected on import to the UK:

Iron, steel, fertilisers, wood, tyres, railway containers, cement, copper, aluminium, silver, lead, iron ore, residue/food waste products, beverages, spirits and vinegar (this includes vodka), glass and glassware, cereals, oil seeds, paper and paperboard, machinery, works of art, antiques, fur skins and artificial fur, ships and white fish

The changes will be reflected in both CDS and CHIEF in due course.

DIT has expanded its Export Support Service (ESS) to act as a single point of enquiry for businesses and traders with questions relating to the situation in Ukraine and Russia.

Any business that has questions about trading with Ukraine or Russia can call the ESS helpline using the number 0300 303 8955 for support or visit the support page

Link to the DIT ESS

https://www.gov.uk/ask-export-support-team

Link to the Russian Sanctions pages

https://www.gov.uk/government/news/uk-announces-new-economic-sanctions-against-russia

BIS publishes a US Export Controls and Sanctions Webpage in response to the Russian invasion of Ukraine

Tue, 15 Mar 2022 10:14:12 GMT

New US Export Controls and Sanctions webpage: BIS Creates Russia-Belarus Export Control Resources Webpage

The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has created a dedicated Russia- Belarus Export Control Resources webpage, an invaluable source of information for UK businesses that export US controlled goods

‘In response to the Russian Federation’s (Russia’s) invasion of Ukraine, the Bureau of Industry and Security (BIS) has taken swift and severe action to impose stringent export controls on Russia. These restrictions have also been applied to Belarus in response to its substantial enabling of Russia’s invasion.’

The link to the page is here:

https://www.bis.doc.gov/index.php/policy-guidance/country-guidance/russia-belarus

BIS have also published a fact sheet to support the new webpage, accessed at the link below:

https://www.commerce.gov/news/fact-sheets/2022/02/us-department-commerce-bureau-industry-and-security-russia-and-belarus

Notice to Exporters Update to Export Licences

Mon, 14 Mar 2022 11:09:06 GMT

The ECJU have published more March updates on their Notices to Exporters pages.

The notices advise of changes to UK export licences and further trade restrictions influenced by the crisis in Ukraine and should afford more clarity to UK exporters.

The notice below sets out which open general export licences (OGELs) have been amended following a review of open licences permitting exports to Belarus.

https://www.gov.uk/government/publications/notice-to-exporters-202206-ogels-amended-to-exclude-belarus

The notice below advises that Export Control Joint Unit (ECJU) has published a limited time licence for certain insurance and reinsurance services.

https://www.gov.uk/government/publications/notice-to-exporters-202205-general-trade-licence-russia-sanctions-aviation-insurance

The following notice advises that new trade sanctions measures have been imposed on Russia.

https://www.gov.uk/government/publications/notice-to-exporters-202204-introduction-of-new-sanctions-against-russia

The link to all of the 2022 published Notices to Exporters is below

https://www.gov.uk/government/collections/notices-to-exporters#notices-to-exporters-2022

Taking humanitarian aid out of Great Britain to support Ukraine

Fri, 11 Mar 2022 10:34:48 GMT

HMRC have published guidance for those wishing to export humanitarian aid for Ukraine from England, Scotland and Wales, with the updated guidance published 10 ^th March 2022

The original guidance from the Cabinet Office advised against exporting tangible goods and strongly recommended that those who wished to donate to donate to recognised charities, and for those donations to be financial.

The official recommendation has not prevented businesses and individuals from rising to the challenge of collecting donated goods to support the relief effort, some travelling themselves across the EU to make deliveries using their own transport.

Strong and Herd have been petitioning HMRC to enable easements allowing the swift passage of Ukraine relief goods across GB borders.

Any businesses arranging deliveries of goods donated to UK local collection points, including smaller individual enterprises packing vans full of essential donated supplies, will all have faced customs procedures at the UK borders on export since the crisis began.

We are now beginning to see some EU Customs authorities implementing easements to allow for the effective movement of the deliveries of these vital supplies through their ports.

The salient points are:

To make sure that a delivery is prepared for export from GB and the subsequent import into the EU member state.
That the EU member state authorities in the state of import have made an easement possible to enable that import of humanitarian aid, and whether, or not Transit procedures may be required to support onward delivery.

The Basics

What to do if exporting Humanitarian Aid from GB through the EU to Poland.

Check the requirement of the GB port of exit. See the HMRC guidance for the reasons why this is important as it will affect how you move your goods through the port, and whether you need to make any stop at Customs
Create documentation that includes:
A packing list for the goods, and pack similar goods together
The name and address of the party that organised the donation
The Economic Operator Registration Indicator number and the receiving charity’s details, if delivering to a registered charity in the EU.
The type of goods and the transport designation.

Note: Some charities are declining the offer of goods transported to them directly.

The link below is to the British Red Cross Ukraine crisis FAQs page.

https://www.redcross.org.uk/get-involved/donate/donation-questions/emergency-appeals/ukraine-crisis-appeal-faqs#People%20of%20Ukraine

The link to the comprehensive government guidance is below.

https://www.gov.uk/guidance/taking-humanitarian-aid-out-of-great-britain-to-support-ukraine#check-if-you-can-use-a-simplified-customs-process

Helpful Technical customs information for export

The generic tariff code to use for goods being exported as disaster relief on the export documentation is 9919000060 (see the UK Global Tariff for details)

https://www.trade-tariff.service.gov.uk/commodities/9919000060#export

The Customs Procedure Code to use to support the export is 10 00 098

Other useful information

The rule of thumb is to coordinate relief efforts through recognised charities. However, for those that are packing vans and coordinating local collections for goods to be driven through the EU to Poland, there are logistics companies that are providing advice free of charge, and some at a reduced rate.

The Road Haulage Association has provided a contact email address where advice may be sought as to those logistics companies that are providing assistance and advice on making customs declarations, and of the practicalities of moving goods over the border into the EU specifically relating to the relief effort.

The link to the Road Haulage Association email specific to the Ukraine crisis can be found here: ukraine@rha.uk.net

Another example of a coordination point is being offered DB Schenker in Germany.

The business has opened a collection point in Cologne, Germany for any donations to Ukraine and is opening a transportation rail bridge in coordination with the German national railway Deutsche Bahn, to deliver humanitarian aid across the EU.

The contact details to register freight and coordinate collections are:

030-720220640 or click on schienenbruecke-ukraine@deutschebahn.com

Supporting regulations and UK Customs Guidance details below:

HMRC

https://www.gov.uk/guidance/taking-humanitarian-aid-out-of-great-britain-to-support-ukraine#check-if-you-can-use-a-simplified-customs-process

The link to The UK Export Support Team is below

https://www.gov.uk/ask-export-support-team

The EU regulation:

COUNCIL REGULATION (EC) No 1186/2009 of 16 November 2009 setting up a Community system of reliefs from customs duty.

The pertinent regulation includes definition for the import of disaster relief at Article 72.C and Article 74.

https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:324:0023:0057:EN:PDF

Text:

1. Subject to Articles 75 to 80, goods imported by State organisations, or other charitable or philanthropic organisations approved by the competent authorities shall be admitted free of import duties where they are intended:

(a) for distribution free of charge to victims of disasters affecting the territory of one or more Member States; or

(b) to be made available free of charge to the victims of such disasters, while remaining the property of the organisations in question.

2. Goods imported for free circulation by disaster-relief agencies in order to meet their needs during the period of their activity shall also be granted the relief referred to in paragraph 1, under the same conditions.

A Definition: Intangible Controlled Technology Software

Thu, 10 Mar 2022 15:11:04 GMT

Any transfer of controlled technology overseas, whether permanent or temporary, will require a UK export licence.

The UK export controls can apply in a variety of business circumstances. These can include:

Export of technology for the purposes of demonstration.
Contract bid, or tendering for an overseas contract where technology is included in the bid process.
Maintenance and service contract fulfilment.
Export of training material to support use of exported goods.

Where the transfer of controlled technology or software is electronic, whether by email or file transfer, understanding the following definitions may help in determining licence requirement:

Definitions:

The location of the exporter is the country from which the exporter is transferring the controlled technology or software, or the location of a person who makes available the controlled data that is being accessed from overseas.

Example: If a field engineer downloads controlled technology to support the maintenance of equipment abroad, that download of data must be licenced from the UK, the destination country being the country in which that engineer makes the download.

The destination of transfers of technology is dependent upon the location of the intended recipient.

The electronic routing or cloud storage location of the controlled technology does not determine the export destination.

Cloud server storage of data, and routing of the data for storage purposes is not licensable. The location of the intended recipient of the data will be the country of intended export.

Supporting a Zoom call where controlled technology may be discussed.

If a UK based company intends to hold a conference call where controlled data may be screen shared, the UK business has an obligation to determine the location of those participating in the call and to ensure that appropriate export licences are in place to cover both sharing (transferring) the technology and the attendee countries where the call is being received.

Recording electronic exports.

There are a variety of open general export licences that allow for the transfer of electronic data and require that appropriate records are kept for audit. If an open licence is not available to cover business activity, then the next step will be application for a Standard Individual Export Licence. Determining the most appropriate licence to fit the purpose of the export is the starting point, with any compliance documentation supporting licence use filed for audit.

Also integral to compliance is that those transferring electronic controlled data, technology or software, understand their compliance obligations, both to the business they support and to the UK export control regulations.

Records can be kept on spreadsheets. Processes can be recorded as flow charts. Records for compliance audit do not need to be over complex, just fit for purpose.

There are government guidelines on the export of controlled technology, the link to it is below:

https://www.gov.uk/government/publications/exporting-military-or-dual-use-technology-definitions/export-of-technology-remote-access-and-the-use-of-cloud-computing-services

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

The Export Course - 2 Day Course

https://www.gov.uk/government/publications/notice-to-exporters-202205-general-trade-licence-russia-sanctions-aviation-insurance/nte-202205-general-trade-licence-russia-sanctions-aviation-insurance

Russian Sanctions: Statutory Instruments

Wed, 09 Mar 2022 13:43:14 GMT

UK exporters may find it challenging to determine clarity as to what exports or actions are not permitted between the UK and Russia. Absolute clarity is given in the regulatory change that is published as a Statutory Instrument, the method the UK implements to alter a regulation.

The Statutory Instruments are published on the Legislation.gov.uk website once the regulation is laid.

There are always explanatory notes at the end of an SI, indicating the intent of the change to the legislation.

From there it is a case of a UK exporting business to understand what restrictions are, and to implement the regulations with due diligence and in a compliant manner

SI 2022 No 123 of 10 ^th Feb : The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2022– Relating to Designated Persons

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) to amend the Russia (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/855) (“the 2019 Regulations”). These Regulations amend the designation criteria in regulation 6 of the 2019 Regulations to specify additional activities for which a person may be designated. Under the amended criteria, an “involved person” now includes a person who is or has been involved in “obtaining a benefit from or supporting the Government of Russia”. Paragraph (4) of regulation 6 defines that term. Paragraph (7) contains relevant definitions of terms used in the amended provision. Read Full Amendment No 123 Here

SI 2022 No 203 1 ^st March : The Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2022: Relating to Ports and Shipping

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) to amend the Russia (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/855) (“the 2019 Regulations”). These Regulations provide for new shipping sanctions measures in relation to Russia. The Regulations prohibit Russian ships, and other ships specified by the Secretary of State, from entering ports in the United Kingdom. There is a notification and publicity requirement where the specification power is used. The Regulations provide the Secretary of State with a power to control the movement of Russian ships or specified ships by requiring them to leave or enter specified ports, proceed to a specified place or remain where they are. The Regulations also confer powers on the Secretary of State and harbour authorities to detain Russian ships or specified ships at ports or anchorages. The registration of ships on the UK Ship Register is prohibited where they are owned, controlled, chartered or operated by a designated person or persons connected with Russia, or where they are a specified ship. An exception from the prohibition on port entry is provided for where access or entry is needed by the ship in case of emergency. The Regulations make it a criminal offence to contravene any of the prohibitions in these Regulations. A consequential amendment is also made to the Merchant Shipping (Registration of Ships) Regulations 1993 (S.I. 1993/3138) so that the Registrar General of Shipping and Seamen can refuse to register sanctioned ships and can terminate the registration of sanctioned ships on receipt of a termination direction from the Secretary of State. Read Full Amendment No 203 Here

SI 2022 195 The Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2022 : Relating to Military, Dual Use and Critical Industry Goods

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) to amend the Russia (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/855) (“the 2019 Regulations”). These Regulations provide for new trade sanctions measures in relation to Russia. Prohibitions on the export, supply and delivery and making available of military goods are extended to include dual-use goods and critical-industry goods. Prohibitions on the making available and transfer of military technology are extended to include dual-use technology and critical-industry technology. Related prohibitions on the provision of technical assistance, financial services, funds and brokering services are also extended in relation to dual-use goods and technology and critical-industry goods and technology. These new prohibitions replace prohibitions relating to dual-use goods and dual-use technology for named persons, and for military use. Transitional provision is made in relation to licences issued to authorise trade within the scope of the replaced prohibitions. A number of exceptions from the trade prohibitions on critical-industry goods and technology are provided for, in relation to personal items and diplomatic missions, consular posts and international organisations, the movement of aircraft and vessels, consumer communication devices and software updates, and emergencies. Read Full Amendment No 195 Here

SI 2022 No 205 The Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2022 : Relating to Financial Services

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) to amend the Russia (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/855) (“the 2019 Regulations”). The Regulations add new financial sanctions to Part 3 (Finance) of the 2019 Regulations. The amendments insert a restriction on the provision of financial services for the purposes of foreign exchange reserve and asset management involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, the Ministry of Finance of the Russian Federation, or persons owned or controlled by, or acting on behalf of, or at the direction of, the same. The Regulations insert licensing grounds relating to these new provisions. Read Full Amendment No 205 Here

SI 2022 No 241 The Russia (Sanctions) (EU Exit) (Amendment) (No. 6) Regulations 2022

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) to amend the Russia (Sanctions) (EU Exit) (Amendment) Regulations 2019 (S.I. 2019/855) (“the 2019 Regulations”). These Regulations provide for new aviation and trade sanctions measures in relation to Russia. The Regulations prohibit Russian aircraft from overflying or landing in the United Kingdom. The Regulations also confer powers on the Secretary of State, air traffic control and airport operators to issue directions for the purpose of preventing Russian aircraft from entering the airspace over the United Kingdom or from landing in the United Kingdom, or requiring aircraft to leave the airspace over the United Kingdom. The Regulations also confer powers on the CAA to refuse, suspend or revoke permissions in respect of Russian aircraft. The registration of aircraft on the register kept by the CAA is prohibited where they are owned, operated or chartered by demise by a designated person. An exception from the prohibitions on landing and overflight is provided for where failing to land would endanger the lives of persons on board or the safety of the aircraft. The Regulations make it a criminal offence to contravene any of the prohibitions or fail to comply with a direction in these Regulations. The Regulations also amend the trade measures in the 2019 Regulations to add new categories of aviation and space goods and technology, based on items falling within chapter 88 of the Tariff of the United Kingdom. The existing prohibitions applying to restricted goods and restricted technology are extended to these goods and technology, as well as a new prohibition on insurance and reinsurance services. Existing exceptions in relation to aircraft and vessels, for emergencies in certain cases, for authorised conduct and for purposes of national security or prevention of serious crime are applied to the new prohibition. Parts 4, 7 and 9 also amend the 2019 Regulations and the Merchant Shipping (Registration of Ships) Regulations 1993 (S.I. 1993/3138) to correct certain omissions and errors in the Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2022 (S.I. 2022/203). Read Full Amendment No 241 Here

NTE 2022/05: General Trade Licence Russia sanctions aviation insurance, merchant shipping registration

Link below

International Women’s Day 2022 – Women in International Trade and Customs

niamho@strongandherd.co.uk (Niamh O'Connor) — Tue, 08 Mar 2022 16:06:32 GMT

As we celebrate international women’s day in 2022, we take a look back at a time where women were banned from even taking up positions as customs and excise officers.

Extract from a debate on Tuesday 24 April 1928 between Nancy Witcher Langhorne Astor, Viscountess ASTOR and the Financial Secretary Mr. Arthur Michael Samuel.

Viscountess ASTOR

"Asked the Financial Secretary to the Treasury whether, seeing that women are employed on Customs work in other European countries, he will consider the appointment of suitable women as Customs and Excise officers here?

Is the hon. Gentleman aware that certain grades of work for which women are not considered eligible in England are being perforated by women in other countries, and does he think that women in England are less able to carry out those duties than are women in other countries?"

Mr. SAMUEL

"I cannot know what goes on in other countries. But I know that women might possibly be maltreated or insulted if they carried out such duties at docks, harbours, breweries, and places where rather rough treatment might be expected. It is for that reason only that these duties are closed to women."

Source Customs And Excise Officers (Women) - Hansard - UK Parliament

Thankfully due to the constant push from women like Nancy Witcher Langhorne Astor, today there are thousands of women working within International Trade.

Daily we work together and alongside so many of these women not only within Strong and Herd itself but across board within International Trade.

Today we stand in solidarity with all women across the world striving for gender equality within the workplace. Whether deliberate or unconscious, bias makes it difficult for women to move ahead in 2022 we look to #BreakTheBias

Happy International Women’s Day from our women to yours!

Russian Sanctions Update: Live Webinar

Tue, 08 Mar 2022 11:02:10 GMT

Russian Sanctions, where to start.... What do I need to know to ensure compliant exports to Russia?

With the Ukraine crisis deepening and we witness the UK government respond initially with strong parliamentary rhetoric followed by the legal tightening of export regulations restricting UK exports to Russia, it can be difficult to navigate the rhetoric from the regulation, then to implement working practice to keep your export business compliant.

Those UK exporters trading with Russia are responding with caution as they determine the legality in continuing trade with Russia where contracts are established, and commercial requirements must be met.

The question is ‘what do I need to do to ensure that my exports to Russia are still legal?’

Steve Berry and Liam Noonan will be addressing Russian Sanctions on Wednesday 9 ^th March, in a Focus on Russian Sanctions clinic.

The impact of new regulations will be clearly explained, and questions will be welcomed from attendees to enable putting those regulations into clear working practice to ensure that your business remains compliant to UK export regulations.

Know Your Customer; Why You Need to Check Who You’re Dealing With

Mon, 07 Mar 2022 14:38:23 GMT

Whatever your circumstances, don’t ever be tempted to short-cut due diligence. Becoming a victim of fraud, or perhaps even worse involved in illegal fraudulent activity, are ever-present dangers, and something everyone needs to take careful steps to avoid.

Many years ago, a British company got a sales enquiry from a commercial buyer in another country. The British company didn’t know much about exporting, and understandably, they were mostly concerned about getting paid. They buyer was sympathetic; he offered to send a cheque and wait for it to clear before the goods were shipped.

The cheque arrived, and the finance manager noticed that the name on the cheque didn’t seem to match the given company name. No matter, he thought. A cheque’s a cheque, we’ll let the bank sort it out. So, the cheque was paid in, and before long they got notification that it had cleared. The goods were shipped and that was that, or so they thought.

It was almost a year later that the bank, suddenly and without warning, took the money back. The bank manager was apologetic and explained that the cheque had turned out to be stolen. The exporter had no recourse. The buyer had disappeared and attempts to trace him came to nothing.

A salutary lesson. And these days, the exporter might well have been landed with a lot more trouble than an unpaid debt. There are statutory regulations covering financial services and some controlled goods that place a legal obligation on sellers to undertake specific due diligence. Authorities are increasingly concerned about transactions being used as a cover for fraud or even to fund illegal activity or terrorism.

Even without considering our legal obligations (which needless to say we must never neglect), it’s in an exporter’s self-interest to take reasonable steps to know who they’re selling to. But it’s surprising how often an exporter gets caught out.

Whenever we get an enquiry from a new contact, we should as a minimum be checking that they exist, that they are who they say they are, and that the purchase is relevant to their business. “Don’t look a gift horse in the mouth”, people say, but I’m suggesting that’s exactly what exporters must do, every time.

In the digital age, there’s really no excuse for ignorance. Virtually all correspondence these days is by email. An email address gives a domain name. In some parts of the world, we may still see a legitimate business using a third-party domain such as AOL or Hotmail, but that’s becoming less and less common. The domain name makes it easy for us to check the company website. Who do they say they are? Where are they? What’s the nature of their business? Do they sound like people who would be interested in our products? Some websites have a page called “Meet the Team”, or something similar. Is the individual we’re dealing with named on that page? If not, why not?

We can easily go further. Large financial operators such as Dun and Bradstreet can be a very convenient source of free, public information about a company. Their business directories give brief details about the location, activities, turnover, registered address, and contact details. Most countries have an equivalent to the UK’s Companies House, that shares official information about a registered company, its purpose, its directors, and some brief financial reports.

Having satisfied ourselves about their status, we should be vigilant in looking out for anything that doesn’t quite fit. How come they’re content to place a large order without seeing any samples? If they did request samples, have they had time to evaluate them properly? Have they asked any of the technical questions we usually get asked?

How far we ought to go depends on the nature of our products/services, the industry, the market and any anticipated long-term consequences.

Transparency International produces an annual report called the Corruption Perceptions Index , which ranks countries according to the apparent risk of corruption. Naturally, fraud can happen anywhere, but it’s wise to take extra care when trading with a country that’s low on the list.

The nature of the business you are in will also be a factor to consider. Some products by their nature are easily re-sellable, particularly consumer goods, alcohol, perfumes, and mainstream electrical products. They are typically favoured targets for money-laundering. If that describes your products, you are more likely to be a target for fraudsters.

Not least, the anticipated long-term relationship with the buyer should guide us. If the purchase is a one-off for a specific purpose, we may consider the most elementary steps to be enough. But if the customer is a potential distributor or wholesaler, who may in time be placing regular large orders, we probably need to take extra care.

During lockdown, visits to markets were largely impossible, and even now many of us have got used to travelling less and may perhaps be less inclined to make a journey to visit a potential distributor or other representative. It’s debatable whether this is wise, but if we are inclined to appoint a representative without a face-to-face meeting, then we really need to go the extra mile digitally, to make up for all those airmiles we’re not doing! For instance, we may consider buying a more comprehensive credit report, and seeking information about the company’s standing and reputation in the market.

If you can’t actually visit a prospect, have you considered doing a virtual visit? Just go to Google maps and use the ubiquitous yellow man to visit their address. Is it a gleaming new building, a shed, or even a regular domestic address?

Check out the person you’re in contact with, too. Are they on LinkedIn for example? Does their profile fit?

Whatever your circumstances, don’t ever be tempted to short-cut due diligence. Becoming a victim of fraud, or perhaps even worse involved in illegal fraudulent activity, are ever-present dangers, and something everyone needs to take careful steps to avoid.

We offer public training in payments, appointing and managing agents and distributors, and export and import procedures.

Finance Training Courses - Strong & Herd LLP

Customs Procedures Training Courses - Strong & Herd LLP

Import Procedures Training Courses - Strong & Herd LLP

Export Procedures Training Courses - Strong & Herd LLP

Russian Sanctions Statutory Instrument

Thu, 03 Mar 2022 11:06:22 GMT

2022 No.195 – SANCTIONS. The Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2022

The Statutory Instrument number 2022 No 195 relating to Russian Sanctions has been published and is available for download from the link below

https://www.legislation.gov.uk/uksi/2022/195/made/data.pdf

The explanatory text to the Statutory Instrument is copied immediately below.

The SI itself contains details of the of exports that will be directly affected by the amendment to the legislation.

Amended export licences for controlled goods have already been published by the Export Control Joint Unit. The link to the Notice to Exporters 2022/03 is also at the bottom of the page.

Statutory Instrument Explanatory Notes:

These new prohibitions replace prohibitions relating to dual-use goods and dual-use technology for named persons, and for military use. Transitional provision is made in relation to licences issued to authorise trade within the scope of the replaced prohibitions.

A number of exceptions from the trade prohibitions on critical-industry goods and technology are provided for, in relation to personal items and diplomatic missions, consular posts and international organisations, the movement of aircraft and vessels, consumer communication devices and software updates, and emergencies.

A full impact assessment of the effect that this instrument will have on the costs of business,

the voluntary sector and the public sector has been published alongside these Regulations and is available from legislation.gov.uk or from the Foreign, Commonwealth and Development Office, King Charles Street, London SW1A 2AH.

https://www.gov.uk/government/publications/notice-to-exporters-202203-licence-suspensions-and-ogels-revised/nte-202203-licence-suspensions-and-ogels-revised

Notice to Exporters 2022/03: Licence Suspensions and OGEL's Revised - Russian Sanctions Update

Tue, 01 Mar 2022 15:41:33 GMT

Approval of new export licences for dual-use items to Russia has been suspended with immediate effect.

Following the Prime Minister’s oral statement to Parliament on 24 February 2022 and the Written Statement made by the Minister for International Trade on 25 February 2022; and under article 32 of the Export Control Order 2008, the Secretary of State for International Trade has suspended all extant export licences for dual-use items to Russia.

This includes licences with Russia as a final destination.

Approval of new export licences for dual-use items to Russia has been suspended with immediate effect.

If you have licences in scope, Export Control Joint Unit (ECJU) will contact you to confirm the decision and advise about actions you will need to take.

https://www.gov.uk/government/publications/notice-to-exporters-202203-licence-suspensions-and-ogels-revised/nte-202203-licence-suspensions-and-ogels-revised

Join the S&H Team for a live 1 hour webinar for a full update
Russian Sanctions - Update - Strong & Herd LLP (strongandherd.co.uk)

UK Manufacturing & Engineering: Top Tips for Export Licence Requirements

Mon, 28 Feb 2022 15:00:56 GMT

The UK Global Tariff can be a valuable source of direction at export as to whether goods for export may need an export licence. If goods are accurately classified, checking the notes on the tariff for an export control marker makes good compliance sense. It’s better to be safe than sorry.

Military and Dual Use Goods

If goods are specifically designed or have been adapted for military purpose, then a UK export licence applies. Job done.

Dual use goods control can be easily missed if an exporter mindset rests where the export purpose is benign. Therefore, control requirements are often missed if the UK business is unaware that controls will apply simply because of the goods potential use, rather than the reason they are being exported.

As with any regulation, ignorance of the law is no defence.

Examples where an export can slip through the controls net

Engineering goods and tools: particularly if they are destined for or could be used in the oil and gas industry
Underwater cameras: Good one. If cameras can function underwater past a given depth, a control will apply, and an export licence will be necessary. Underwater cameras are used in oil and gas exploration
Aerospace and maritime goods: High pressure valves, O-rings and seals can easily be captured under the controls.

It will be important for a person considered to be ‘competent authority’ (regulatory term) within an organisation to accurately classify the goods against the tariff, and against the UK Strategic Export Controls lists, should an export control marker be indicated in the export notes on the tariff.

Top Tips

Accurate Tariff Classification is essential . Know what you are exporting.

Interrogate the UK Global Tariff and accurately classify your goods. This will take training and practice. Goods that could be subject to a control are flagged in the tariff notes and the user is directed to check the controls.

The controls can also include the end use destination. It is important to be aware of end use controls too.
Use the Goods Checker, the link to Goods Checker guidance is here: https://www.spire.trade.gov.uk/docs/guidance/Goods%20Checker%20Guidance.pdf

Examples of Export Markers from the UK Global Tariff Export Tab:

EX001 Export Control for All Third Countries :

Description : The export of these items may be controlled under the Export Control Order 2008 as amended. Please refer to the Goods Checker to determine whether your items are controlled and whether you need a licence from the Export Control Joint Unit.

Note: The Goods Checker tool is available to help identify whether your goods for export could be captured on the Strategic Export Controls Lists.

EX005: Export Authorisation (Dual Use) for Third Countries

Description: The export of these items may be controlled under Retained Council Regulation (EC) No. 428/2009. Please refer to the Goods Checker to determine whether your items are controlled and whether you need a licence from the Export Control Joint Unit.

Note : The Retained Council Regulation (EC) No. 428/2009 is the UK Dual Use regulation retained from the EU regulation that applied before the UK left the EU.

EX012: Export control on restricted goods and technologies for Russia

Description: The export of energy-related goods for use in Russia and infrastructure-related goods and technology to Crimea is controlled (as well as related activities). Please refer to the Sanctions to determine whether your items are controlled and whether you need a licence from the Export Control Joint Unit.

Note: This is a good example where awareness of the end use of goods is restricted due to a UK Sanction or Embargo.

The exercise of both classification and goods rating against the controls lists should be completed, and the results of this tariff investigation recorded. If goods are stopped at export, evidence must be provided to Border Force that the investigation and resulting conclusions are proven and accurate.

Know what is being procured and keep accurate records.

Often the weakest link supporting an export audit, is the classification of goods being procured. Therefore, procurement records are becoming increasingly important to support company exports, whether goods are being procured from UK suppliers or from abroad.

Consider making the completion of a classification document as part of your PO conditions of purchase. Data capture at the procurement stage could support the recording of goods’ Origin (to support use of Preference Origin and use of a free trade agreement) and help determine whether there are any other country controls that may apply on re-export. For example - US goods are tightly controlled whether integrated into goods to be exported or re-exported in their original imported state.

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

The Dual-Use Exporter: Understanding Dual-Use Export Controls

A Spotlight On: The Methods Of Valuation

Mon, 28 Feb 2022 10:07:10 GMT

Money makes the world go round but until customs know who is paying the Duty and VAT the recipient will not be able to take delivery of the goods.

Essentially valuation is one of the cornerstones of International Trade and Customs Compliance.

For every export there will be a subsequent import and when we import goods, it's all about the money. Most imports happen because a buyer has purchased goods from a supplier outside the UK but even free of charge imports require a value for customs purposes.

When we think of importing into the UK we often think about the controls in place, however we must not forget that Imports are also subject to Duty and VAT charges. Duty and VAT need to be considered by the importer as they increase the final price of the goods. Even if the goods are not a purchase, customs need a value declared that is correct and compliant, as duty and VAT may still have to be paid at import. Even if we import samples we will have to declare a true import value, and it is important to know what the official definition of a sample is in the eyes of the customs authorities.

Why is this so important?
The value that we declare to customs will impact on our financial outlay to enable the goods to be imported and, perhaps more importantly for customs, on how much money is collected on behalf of the government. It is important to remember that any information declared to HMRC is subject to checks.

As part of an audit, customs will focus on anything that impacts on the amount of duty and VAT that has been paid. HMRC can issue fines and penalties for a non-compliant business.

So, for goods imported to stay permanently in the country (often known as a Home Use entry or entry to Free Circulation), the duty to be paid will be dependent on the Commodity Code of the goods and the Value Declared to Customs. Remember VAT is also applicable at import, although in the UK the owner of goods can reclaim VAT via their VAT returns if they receive a C79 VAT Certificate or Postponed VAT Accounting Certificate (MPIV).

Trade Agreements can lower or remove Duty, but the Importer must be certain that their goods meet the rules of qualification and Trade Agreement do not reduce taxes, such as VAT at import

Methods of Valuation
There are 6 Valuation Methods that could apply to imports. The primary method applies to a purchase of goods and is the one most commonly used –

Method 1, Transaction price. If there is no financial transaction taking place, then an alternative valuation method must be applied but you must go through the alternative methods in order starting with Method 2, Identical goods price.

At import into the UK, Duty is charged on the Customs Value. The customs value is established by the correct application of one of the six valuation methods. The cost of the goods is not the sole charge that is dutiable. Freight and Insurance are also liable to duty. Under Incoterms® Rules the buyer or seller may be responsible for the payment of the freight costs. It is important to note that whoever pays the freight this charge it must still be included in the customs value. The consignment might be insured by the seller or the buyer. If the goods have been insured this cost must also be included in the declaration to HMRC via CHIEF or the newer CDS, the Customs Declaration Service computer.

Therefore, the Customs Value at import into the UK is based on the C I F Value. Many trading nations require that these three components are declared to Customs at Import, although there are exceptions to this rule. As an example, an Import into the USA would require the FOB Value to be declared, ie not include international freight or insurance but including the costs incurred to get the goods to the place of departure.

Whilst we consider value we must also think about the currency. The value declared to customs in the UK must be in Pounds Sterling £, if any of the charges are in another currency CHIEF/CDS will convert the valuation to sterling using the official monthly exchange rate.

Methods 2 and 3 mean that the valuation is established by using a comparable value of a product. Either of identical or similar goods.

It is important to be aware that it is not just about the correct application of the Valuation method that is used. The importer also needs to be able to provide evidence to support the decision that has been made.

Generally, we can say the further we move down the list of methods the less likely it will be that they are applied in international trade. For example, a business who purchases their imports will never go past Valuation Method 1.

To finish the list.,
Method 4 is based on a UK Domestic Selling Price
Method 5 is based on the Cost of Production of the Goods

The final method, the 6 ^th Method would be used when no previous method applies to the import and often it will require HMRC approval to enable it to be applied.

If you are a UK Importer you must value your good using one of the 6 methods, working your way through each method until you are able to value your goods correctly. And remember you must ensure you keep evidence of this for 6 years to be safe. HMRC will go back 4 years for import duties, however the VAT rules say 6 years so don’t get caught out!

Money makes the world go round but until customs know who is paying the Duty and VAT the recipient will not be able to take delivery of the goods.

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Update: Russian Sanctions

Fri, 25 Feb 2022 09:09:24 GMT

As the Ukraine crisis quickens and nations respond by implementing Russian Sanctions, UK businesses will be considering how the developing measures will directly affect their trade with Russia

The most publicised early measures were financial but have quickly developed into restrictions to exports of equipment and manufactured goods. UK businesses exporting to the oil and gas, aerospace and transport industries will be impacted.

As we see prices at the petrol stations soar, we may soon see the prices of staples such as bread increase, impacted in the first instance by the increase in haulage costs due to price of fuel, then by restrictions on Russian grain - Russia is major source of imported wheat.

https://www.gov.uk/government/publications/financial-sanctions-ukraine-sovereignty-and-territorial-integrity

https://www.gov.uk/government/collections/uk-sanctions-on-russia

Any companies concerned about their business with Russia or Ukraine to contact the DIT Export Support Service the dedicated online service or call 0300 303 8955

Ask the export support team a question - GOV.UK (www.gov.uk)

CDS Downtime - Update from HMRC

niamho@strongandherd.co.uk (Niamh O'Connor) — Tue, 22 Feb 2022 17:04:11 GMT

Update from HMRC for Carriers

As part of our ongoing IT improvements, we will be updating the Customs Declaration Service (CDS) on the following dates:

CDS date and time:

• Saturday 26 February 2022 11pm to 12:30am Sunday 27 February 2022

CDS / GVMS carrier actions to take: Please follow the steps below for all Northern Ireland (NI) crossings (Great Britain (GB)>NI movements and NI>GB movements) which will be impacted:

Switch off the Goods Movement References (GMR) validation step of the check in process within your booking system for all GB>NI and NI>GB crossings from Saturday 26 February 2022 11pm to 12:30am Sunday 27 February 2022
Continue to collect GMRs for crossings during the period of downtime. GMRs remain mandatory for freight movements using GVMS and hauliers without a GMR should be turned away.
Where possible, take action to retrospectively check in and / or embark any GMRs captured during the period of downtime once CDS is available again from 12:30am Sunday 27 February 2022

Please follow the steps below for any outbound GB crossings (GB>European Union (EU) movements) which will be impacted:

Switch off the GMR validation step of the check in process within your booking system for GB>EU exports only from Saturday 26 February 2022 11pm to 12:30am Sunday 27 February 2022
Continue to collect GMRs for crossings during the period of downtime. GMRs remain mandatory for freight movements using GVMS and hauliers without a GMR should be turned away.
Where possible, take action to retrospectively check in and / or embark any GMRs captured during the period of downtime once CDS is available again from 12:30am Sunday 27 February 2022 Please follow the steps below for any inbound GB crossings (EU>GB movements) which will be impacted:
No action is required for EU>GB crossings and all GVMS steps should continue as per your normal requirements for inbound crossings.

The maintenance periods and actions to take were correct at the time of publication. It’s important you regularly check the HMRC service availability GOV.UK webpage for the systems you use as dates and time can change: https://www.gov.uk/government/collections/hm-revenue-and-customs-serviceavailability-and-issues

We have informed hauliers about the steps to take and apologise for any inconvenience caused.

Update from HMRC for Hauliers

As part of our ongoing IT improvements, we will be updating the Customs Declaration Service (CDS) on the following dates:

CDS date and time:

Saturday 26 February 2022 11pm to 12:30am Sunday 27 February 2022

CDS / GVMS Haulier actions to take : You will not be able to add CDS declarations references to a Goods Movement Reference (GMR) during this period of maintenance.

Please ensure you complete all your Goods Vehicle Movement Service (GVMS) actions outside of the maintenance period and prior to arriving at the port for your journey.

It’s important you regularly check the HMRC service availability GOV.UK webpage for the systems you use as dates and time can change: https://www.gov.uk/government/collections/hm-revenue-and-customs-service-availability-and-issues

We have informed carriers about the steps to take and apologise for any inconvenience caused.

Customs Valuation - An Overview

Tue, 15 Feb 2022 13:38:59 GMT

Establishing the correct Customs Value is a legal requirement. The first rule is that, when there is a sale, you must always declare the Transaction Price.

Establishing the correct value of shipments for customs purposes is the third of the three key compliance areas that must be addressed by both trade and customs authorities. Alongside tariff classification and establishing the Origin of the Goods, valuation come under the administration of the World Customs Organisation (WCO) and has rules set through the GATT Agreements now regulated by the World Trade Organisation (WTO).

In its simplest form the word “value” describes what something is worth. But if this was the only definition we had then establishing the “worth” of a product for customs purposes would be arbitrary, subjective and variable. This is not adequate for Customs compliance or for traders who need certainly in how much duty will be charged on their products.

So how do we establish a true value of goods – do we use the price someone is willing to pay for the product? Perhaps, but what about goods that move when there isn’t a sale – do these have no value? Do Customs not collect duty on “free of charge” supplies? What a great potential for fraud or creative accounting if this was the case.

The WTO Valuation Agreement (also known as the Marrakesh Agreement) laid down the hierarchy of the Valuation Methods to be used when valuing goods at import for the collection of duties and taxes:

Method 1: Transaction Price
Method 2: Identical Goods Price
Method 3: Similar Goods Price
Method 4: Deductive Value
Method 5: Computed Method
Method 6: Fall Back Method

The Customs Value must also include, when relevant, some Adjustments (as laid down in Article 8) – these include:

commissions and brokerage, except buying commission
the cost of containers and packing
goods or services provided free of charge by the buyer to the seller (“assists”)
royalties and licence fees
proceeds of re-sale paid back to the seller after import

There is the option for countries to also include in the Customs Value the

cost of international freight and
the cost of transport insurance

The UK and the EU include these two cost elements in the import customs value.

The WTO mandate is for all member countries to “apply to the Principles of this Agreement” so it can be re-written into national text as long as that does not change it, in principle. The Marrakesh Agreement of 1994 also set up:

Dispute Settlement Body for Valuation Issues (WTO) – it considers the procedures used to establish the correct Customs Value rather than looking at the “rights or wrongs” of a case. It’s all about using the correct valuation Method for the right reasons and being able to justify it.
Committee on Customs Valuation (CCV) within the WTO which makes Ministerial Decisions on new trading practices that affect valuation, eg the delivery of software by electronic means thereby avoid customs authorities, yet it adds value to imported goods
Technical Committee on Customs Valuation within the WCO. The TCCV provides advice on practical issues but this advice is for guidance only it does not become law.

Establishing the correct Customs Value is a legal requirement. The first rule is that, when there is a sale, you must always declare the Transaction Price. Where there is no transaction the hierarchical Method from 2-6 must be applied starting with the Identical Price for the Goods if they were being sold.

The burden of proof always remains with the importer – in other words, Customs Authorities can challenge any import value and request further information. If, after further information is provided Customs believe the declared value is incorrect, they must, however, clearly explain in detail why. This is not only for transparency purposes but, also so that an importer can, if they wish, appeal against the decision.

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

Valuing Goods for Customs Purposes

What are Export Controls and why are they so important?

Thu, 10 Feb 2022 13:31:20 GMT

Export Control compliance demands that businesses act responsibly in terms of the goods they supply and the information they provide to overseas entities.

Export Controls are not solely a UK consideration. They apply across world trade.

Countries apply rules and regulations on certain activities by implementing a requirement for a licence or approval to be in place to ensure the business is compliant.

There is a global requirement for all traders to be aware of how their business activities impact on world safety, international security, and a country’s obligations to other nations. It is imperative that a business understands that if they export information or products that are captured under their country’s export control regulations, they will be held responsible for ensuring exports do not fall into the wrong hands, which can result in real life concerns for individuals in other countries.

Concerns about terrorism and internal repression are real and lack of awareness of the UK controls at the border can leave a UK business open to recourse to law implemented by HMRC or Border Force.

A business must recognise that if a UK control is in place that a licence requirement possibility is duly considered before export and UK export authorisation sought from the Department of International Trade Export Control Joint Unit.

Military or Dual Use Controls?

Goods, software, and technology can fall under Military or Dual Use control and be subject to export licence to support their transfer from the UK – whether exported in tangible (goods), or intangible (electronic transfer) form. The starting point is classification.

Classifying against the controls

It is important to understand the definition of both military and dual use criteria because the business undertaking the export activity not only has the responsibility to classify but also ensure that the correct licence is in place to support the licence declaration to HMRC at export.

Classification; Is it Military or Dual Use? It cannot be both.

Accurate classification against the UK Consolidated List of Strategic Export Controls will confirm to the user whether goods require export authorisation on their own merit.

If an export has been specifically designed or adapted for military purpose, the rule of thumb is that a military licence will be required to support export.

Dual use goods are captured because of their capability, rather than being exported for military end use alone.

Declaring Goods for Export:

The C88 / SAD Export Customs Declaration stipulates we advise HMRC of the consignee for our export consignment; the first recipient of the goods. Export Control compliance means we must go further by establishing if the consignee is also the end user of the goods. If the consignee and end user are separate entities, we must consider the location of the end user and the end use the goods will be put to.

End use control

The ultimate end use of the goods for export could require licence provision. It is vital to understand security provision for an export and that this alone may need licence support.

Due diligence

The exporter has an obligation to the UK authorities to evidence due diligence during the export process. The evidence may simply be in the form of an end user certificate obtained from the customer, or specific wording within a contract that confirms the end use of goods.

Open General Export Licences will allow the export or transfer of Military or Dual Use Goods, Software, and Technology to specific destinations. The UK licensing authority (DIT) have created open licences to provide reasonably quick export access with specific approvals under specific licence conditions of use. International traders may need to be aware that an activity may not be covered by this type of open approval and be directed to the application for a licence required to for specific DIT approval.

Export Control Compliance will impact on different departments within a business. This underlines why the responsibility for exports cannot be one individual’s responsibility within an organisation, it needs a team approach. For compliance to work, the considerations are; individual responsibility supported by awareness, regular training, and established business compliance procedures and processes. New business activities will need due diligence applied from the bid stage and compliance requirements must have senior management support throughout the life cycle of the plan to export.

While you are here you may be interested in some Strong & Herd LLP training courses & live clinics related to this topic:

International Trade, Do You "Know Your Customer"? Live Clinic

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The Dual-Use Exporter: Understanding Dual-Use Export Controls

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Preparing for an Export Control Audit

How To....Establish Preference Origin of Goods (Export)

Tue, 25 Jan 2022 16:38:03 GMT

In this “How to …” article we expand on how to determine the origin of goods to see what differences there are in establishing the preferential origin of goods.

As discussed before, origin is a word used in lots of different areas of international trade, but whereas declaring the nationality of goods (the non-preference origin) is a mandatory requirement on import customs declarations to determine and use preferential origin is optional. This article will concentrate on steps companies exporting under preference arrangements must take, importing under preference is covered by a separate article.

Why is it important?

It’s all about the money. Preference arrangements, such as Free Trade Agreements (FTAs) are generally negotiated between governments to ease the access of goods (and services) by reducing customs duty rates, also known as tariffs, and other barriers to trade. Both the UK and the European Union (EU) has a significant number of preferential trade arrangement (we’ll call them FTAs though they take many different forms). When you export goods being able to offer your customers a discount that does not affect your profit margin is a great idea, and an FTA, by removing standard duty rates, does just that. Because it’s all about the money penalties on companies getting it wrong are very high and, if intent to defraud customs can be proven, it’s a criminal offence.

But, what is it?

Establishing whether goods qualify under an FTA is not just about where the goods are made, though there are similarities. For natural goods, such as raw materials, flora and fauna, the preference origin is where they are obtained, born, or grown. For manufactured items, though we must know that the last substantial economically justified process took place in the UK, when exporting from the UK, we must also be aware of what that process was and if it was a sufficient process that means the goods could qualify for preference under the individual FTAs. The qualifying rules are determined by the signatory countries to the agreement within what is known as the Protocol and laid down within two key sections called The Articles and The List Rules, also known as Product Specific Rules (PSR). The List Rules give specific rules per Chapter of the Tariff Schedule (based on the Harmonised Coding System) that we must know apply to our goods. Just to make it more fun, different FTAs have different rules so goods could qualify for preference under, say the EU-UK Trade Cooperation Agreement (TCA), but may not qualify for preference under another agreement, eg UK-Israel FTA.

How to ….

Step 1:

As it is all about the money check what the standard rate of customs duty is for your goods into your customers’ countries. The financial benefit of establishing whether goods qualify under the relevant FTA is the importers; the exporter advantage is that the goods become more competitively priced which can be a great sales advantage. But if the standard rate is very low or already zero, then why use preference? The administrative costs to get it right as well as the penalties in getting it wrong for both of you can be high. Ensure there is a financial benefit.

Step 2

If it’s financially worth it then let’s see if we can establish if the goods qualify under the specific FTA. If the goods being supplied have been imported then, unless the supply country is a party to the FTA, they won’t qualify for preference. If we are not the UK manufacturer of the goods being exported but we have purchased them from a UK supplier, we can ask the supplier/ manufacturer to confirm if they were produced in the UK and whether they qualify for preference. Our supplier may refuse to provide the declaration and then we cannot use preference. If we are exporting as the manufacturer of the goods, then we need to establish the origin of the material we use to produce the goods. If we buy goods from a country signatory to the FTA (for example under the UK Trade Cooperation Agreement (TCA) UK manufacturers can use goods originating in the 27 member states of the EU) then this is generally permitted as originating material, but other countries materials will be deemed to be non-originating

Step 3

So, if we manufacture the goods, we must establish if the manufacturing processes meet the terms laid down in the FTAs. Read the section in the Agreement that refers to “origin” and “insufficient processes” to ensure we can say we’ve undertaken a significant process. This is similar to determining the non-preference nationality of goods by ensure we are doing more than just repacking goods for example.

Step 4

If we are satisfied that the goods go through a sufficient process in the export country and meet the definition of “manufactured” or “wholly obtained” then we review the PSR List Rules. To do this we need the commodity code number for the goods. We generally only need the first 4-digits of the commodity code, known as the Tariff Heading. As this part of the number is internationally recognised under the Harmonised Coding System (HS Code) it is ideal for global agreements.

Step 5

The List Rules are divided into the 97 Chapters of the tariff; go to the section relevant to our goods. There we will find the specific rule to establish preference origin. There are 3 types of rules:

i. The main chapter rule, applicable to all goods within that Chapter unless it is an exception listed below

ii. An exception: a specific qualifying rule for goods within that Tariff Heading

iii. The exclusive exception (the Ex-Rule): some exceptions don’t apply to all goods within that Tariff Heading but only to some, and a clearer description of the goods that come under this exception will be provided

Note: The EU-UK TCA is laid out slightly differently than other UK FTAs and lists all 4-digit Tariff Headings against preference qualification rules.

Step 6

This Step depends on what the Product Specific Rule (PSR) says; often there is more than one process listed, you only need to provide evidence that your production process meets one of the rules. We may have to prove the goods went through a specifically defined process, or that any imported items were of a different tariff heading than the finished product we’ve made, or that non-originating material is only a low percentage, by value, of finished product price, or a mixture of these things. Don’t guess, it is important you can provide supporting evidence if asked by any customs authority. Clearly document how your goods qualify.

When we are happy our goods meet the rules of preference origin, we can issue the preference declaration or statement required under the FTA for our customer to use to obtain the preferential duty rate at import.

Errors can easily happen especially if we don’t get the correct commodity code number. If we have the wrong commodity code, we will be looking at the wrong preference rules of origin. If we don’t know that the goods qualify for preference, or we can’t clearly establish they do or to do so will be very time consuming and expensive then don’t use preference. It isn’t mandatory but we must be aware that if our customers cannot claim a lower duty rate at import it will make our products more expensive and we might lose sales. This is why Step One is so important, know the value of using FTAs.

While you are here you may be interested in some Strong & Herd LLP training courses related to this topic:

EU-UK TCA Supplier Declarations – Live Clinic

A Spotlight On: Determining Origin for Export Control Data Capture

Fri, 21 Jan 2022 06:36:34 GMT

Knowing where the goods you export from the UK were made is essential both for customs compliance and to ensure you are compliant with other countries’ export control regulations.

Capturing other country controls for export purposes
Knowing where the goods you export from the UK were made is essential both for customs compliance and to ensure you are compliant with other countries’ export control regulations. This should not be confused with confirming whether goods meet the preference origin rules of a trade agreement, we are talking about clearly establishing the non-preferential origin of the goods, or, as it’s sometimes called, the economic nationality of the goods. This can be a major task for UK companies, as they need to record non-preference origin within their systems from both overseas and UK based suppliers – just because you buy something from a UK supplier, doesn’t mean it was made in the UK. Below we look at how non-preference origin links to other countries export control regulations.

USA Origin goods
The USA tightly controls re-export of USA supplied goods. If a business is procuring USA manufactured goods or technology, a control will likely apply and that control should be recorded to be demonstrated on the re-export paperwork, even if the goods are integrated into UK manufactured goods for export.
It will be important to understand what’s what.

US goods do not need to be ITAR (International Trade in Arms Regulations) controlled to have a US regulation control attached. UK businesses will also need to comply with the USA Export Administration Regulations (EAR). A high proportion of US supplied goods are subject to onward supply restrictions based on their US commercial classification, or their ultimate destination from the UK.

Other Country Controls and Demonstrating Due Diligence
UK suppliers can find that they are asked to sign End Use Certificates when buying goods from an EU member state. The goods may not be subject to any military or dual use classification control. The EU supplier may simply be evidencing their due diligence for export control compliance purposes relating to embargoes, sanctions or other similar ‘catch all’ controls.

We will also have to understand, for example, that some French, German and Dutch customers may require legalised documentation from their UK suppliers to evidence to their own national authorities that UK export controls have been given due consideration before goods have been exported from the UK.

Tighter controls are becoming more prevalent.

Evidencing End Use to Support Supply
Should a UK business be requested to sign any End Use certification as part of the supply process, the certification should be checked by a competent authority before being signed.

Most likely, the customer will request that an End Use statement is printed on the supplying company’s headed paper, duly stamped with the company stamp, and signed by someone senior in the business as that competent authority.

Commodity classification and control documents are becoming an increasing requirement to support procurement and supply terms and conditions of contract.

File the data and comply with the obligations:
If a UK business is required to sign documentation to support either procurement or supply, it will be necessary to keep copies of any statements or assurances made, and a flag or link on the goods inventory record to make sure that the assurance is supported, and the obligation duly recorded and kept.

While you're here, you may be interested in

Export Control Review
Customs Compliance Review
Company Audit / Health Check
S&H Industry Insights
Glossary of customs and trade terms
Live Specialist Clinics:
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S&H business support helpline options now includes the CDS Community Support with priority helpline for any CDS & GVMS queries as well as other members' benefits

How To....Establish Preference Origin of Goods (Import)

Tue, 18 Jan 2022 15:30:06 GMT

In this “How to …” article we expand on how to determine the origin of goods to see what differences there are in establishing the preferential origin of goods for companies using preferential trade agreements at import.

As we have discussed before, origin is a word used in lots of different areas of international trade, but whereas declaring the nationality of goods (the non-preference origin) is a mandatory requirement on import customs declarations to determine and use preferential origin is optional. This article concentrates on importing under preference arrangements, the steps exporters must take to establish goods qualify under preference is covered in a separate article.

Step 1

As it’s all about the money check what the standard rate of customs duty is for your goods. If the standard rate is very low or zero, then why use preference? The administrative costs to get it right as well as the penalties in getting it wrong for both parties can be high.

Step 2

If it’s financially worth it then let’s see if we can establish if the goods qualify under the specific FTA. This is more challenging for importers because they are unlikely to be supplied manufacturing information or a detailed cost break down by the supplier. The first step is to know that the goods were made, i.e. originate, in the beneficiary country. One of the things importers should undertake is a due diligence check on suppliers to see if they are manufacturing the goods or acting as an agent, distributor or on-seller for goods manufactured by another company. If the latter that can cause issues when claiming preferential rates of duty. Exporter verification statements, often obtained annually, can assist the importer in evidencing they have checked the goods qualify for preference though other steps are required. If the overseas supplier refuses to provide the declaration and then the importer is at risk if they decide to pay the preferential rate of duty.

Step 3

You want to use the lower rate of duty at import, you have obtained the relevant certificate or statement from the exporter, but what else do you do? Well, before declaring the import as valid for the reduced preference duty rate, you must check that the certificate or statement is genuine and issued by the correct authority or by a registered exporter. As often customs brokers are used to make import declaration then the importing company must ensure they are checking the forms in accordance with HMRC guidance, and that the original declaration is retained for audit purposes. If invoice statements are used, they generally need an approved or registered authorisation number if the shipment exceeds 6,000 euros. Importers must request evidence from the supplier of the relevant approval or official registration.

Step 4

If we are satisfied that the goods meet the qualification rules laid out in the specific Free Trade Agreement and a statement to this effect from the supplier has been received, then you can pay the lower rate of customs duty. This is done, in the UK by entering a specific code onto CHIEF (the customs entry system – Customs Handling of Import & Export Freight) to identify the type of preference being claimed and selecting the relevant Tax Code for the reduced duty rate to be applied. Importers must obtain, check, and retain the customs entry documents.

Step 5

Collate and retain all the documentary evidence and due diligence checks you have made to ensure that the goods meet the qualification rules as per the relevant Free Trade Agreement. The evidence must be retained for a minimum of 3 years, and this includes retaining the original preference certificates, for example an invoice declaration with the correct exporter authorisation number such as the REX for EU-UK trade, the UK version of EUR1 Form, GSP Form A, as well as originally signed invoice statements and supplier declarations. Don’t guess, it is important you can provide supporting evidence if asked by any customs authority. Clearly document how your goods qualify.

Step 6

In Volume 1 of the Integrated Tariff of the United Kingdom, Part 7 (available free on-line) it says that “you can help yourself to avoid a liability to duty by obtaining documentary evidence” and that if visiting the overseas factory you could obtain confirmation at first hand that the rules had been met or you could obtain an Advanced Origin Ruling (AOR) in UK or the Binding Origin Information (BOI) ruling in Northern Ireland or the EU for your products. You can find out more about the advanced origin rulings at https://www.gov.uk/guidance/get-proof-of-origin-for-your-goods and https://www.gov.uk/guidance/check-your-goods-meet-the-rules-oforigin . If you suspect the accuracy of any of the information received, you could seek further written clarification from your supplier.

Remember, declaring imports to a preferential rate of duty at import isn’t mandatory but to not do so will increase the price of the goods... If we don’t know that the goods qualify for preference or we can’t clearly establish they do or to do so will be very time consuming and expensive then don’t use preference. This is why Step One is so important, know the value of using FTAs.

While you are here you may be interested in some Strong & Herd LLP training courses related to this topic:

EU-UK TCA Supplier Declarations – Live Clinic

How To.... Assess the Origin of Goods

Fri, 14 Jan 2022 13:26:24 GMT

In this “How to …” article we look at another key piece for information required for customs compliance, which could potentially assist companies in reducing customs duty charges: the origin of goods. Origin is a word used in lots of different areas of international trade, but we are focusing on just one of these in this article – establishing the nationality of goods, known as non-preference origin.

Declaring the nationality of goods is a mandatory requirement on import customs declarations and it is often known as the “economic nationality of the goods”.

Step 1:

Taking the UK Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020 which adopts the EU Union Customs Code regulations on establishing origin of imported goods as a guide, the first step is to determine if the item wholly originates or is wholly obtained from one country. If yes, this is the origin of the goods. If not ….

Step 2

For this step we need to know what process has taken place on the goods. If we have imported the goods and repacked them, for example, this is a minimal process and does not change the origin of the goods that are now sitting in different boxes perhaps with different labels. Countries’ origin rules state minimal/ insufficient processes and we need to ensure we are doing more than these process to change origin.

In Article 9 of the UK Customs (Origin of Chargeable Goods) (EU Exit) Regulations the following are deemed to be insufficient to change origin

Operations to ensure the preservation of products in good condition during transport and storage
Simple operations consisting of removals of dust, sifting or screening, etc
Changes of packing or placing in bags
Putting up of goods in sets or ensembles or putting up for sale
Affixing of marks, labels or other distinguishing signs on products or their packaging
Simple assembly of parts of products to constitute a complete product
Disassembly or change of use
Combination of the above

Step 3

This step can be more complicated. Some products, eg foodstuffs, textiles, clothing, footwear, pharmaceutical, must undergo a specifically defined process to establish the origin. These specific process rules are listed against the Tariff Heading of the goods within the customs regulations, such as the table within the UK Regulation or Annex 22.01 of the EU UCC Delegated Acts. If we don’t have a specific process rule to follow, we need to check the next Step.

Step 4

Where the goods do not wholly originate or come under a processing rule to establish origin then we are looking at the country in which the last substantial process or work took place. A quick guide to whether this changes the origin of imported items is to check if any of the imported goods have the same commodity code as the goods we’ve produced. Change of tariff heading of all materials is a key indicator that origin has also changed. For example, if we import wood and produce a table, the commodity codes are different and so is the origin of the table. If some goods have the same commodity code as the finished item, then we could still have undertaken a sufficient manufacturing process, but we need to check further.

Step 5

If we still haven’t established where the goods are made, we need to understand in more detail what process the goods have gone through. This is where the decision can seem arbitrary as the legal phrase is that the goods shall be considered to have undergone their last substantial, economically justified processing in the country where the majority portion of the materials originated as determined on the basis of substantial transport or on the highest value of materials if a substantial process cannot be determined.

Step 6

If the origin is still unclear, we must review any legal guidance through we may be better advised to seek an Advanced Origin Ruling (AOR - GB) or Binding Origin Information (BOI) ruling (NI/EU) for Customs. But do ensure they undressing it is a ruling on non-preference origin we want, or they may give us a using on preference origin, which is very different.

Errors may happen in establishing the origin of goods, but we can also have the case when a company is aware that by stating the export country (Country When Consigned – CWC) instead of the actual country of origin (COO) they will be avoiding restrictive measures, e.g., EU anti-dumping on ceramics made in China as Sri Lankan origin because they were shipped from Sri Lanka. The jargon phrase sometimes used to describe the intention mis-declaration of origin of goods when it travels through another country is “submarining” – though the real name is origin fraud.

While you are here you may be interested in some Strong & Herd LLP training courses related to this topic:

EU-UK TCA – Supplier Declaration Live Clinic

International Trade Compliance Manager – 2 day course

What is Origin and Why is it Important?

Tue, 11 Jan 2022 11:58:30 GMT

What is Origin? Simply, it is stating where a product originates. For natural goods, such as raw materials, flora, and fauna, this is where they are obtained, born, or grown. For manufactured items its where the last substantial economically justified process takes place.

Simple? Not really, as we have such an integrated, complex trading system that establishing the final origin of some goods can be confusing, and therefore we have international rules.

A common error on import (and export) customs declaration is to state that the country of origin is the same as the country from which the goods were shipped. This is known in the customs world as the Country from Whence Consigned – CWC. This is not always the origin of the goods, though as raw materials, parts, subassemblies and finished products crisscross the globe not just to be manufactured but also for storage to aid the speed of supporting customers, especially in after-sales markets.

A note on the European Union: non-preference origin is the country, eg German, Swedish, Spanish, etc you cannot state “the EU” as a non-preference origin.

Why is it important?

The origin of goods being shipped internationally is used for many reasons by authorities, companies, and consumers alike. Though the World Trade Organisation (WTO) has established an international rule for determining non-preference origin, it has not been taken up as enthusiastically as the WCO Harmonised coding System (HS) for commodity codes. The economic nationality of goods – i.e., the origin – is linked to key trade factors:

Tariff Restrictions – for example, imposing additional duties to deter the purchasing of goods made outside the domestic market.
Marketing purposes – to distinguish imported consumer goods from domestic products.
Consumer choice – where a product is made may affect a buyer’s decision on whether to purchase it or not.
Political and economic reasons – campaigns such as Buy British or linked to government procurement contracts or the monitoring of trade with embargoed and sanctioned countries.
Brand recognition – e.g., Swiss watches should be made in Switzerland.
Quality marking.
Legal requirements for Country-of-Origin Labelling (COOL).
Geographical Indicators (GIs) – goods, usually food and drink, which have been granted protected geographical status, e.g., champagne must come from champagne in France.
To establish where the Intellectual Property Rights including Copyright of products is held, e.g., iPhone shows “Designed by Apples in California USA. Assembled in China.”

While you are here you may be interested in some Strong & Herd LLP training courses related to this topic:

EU-UK TCA – Supplier Declaration Live Clinic

Link to the full Ministerial Statement

International Trade Compliance Manager – 2 day

Border Controls – ROI & NI goods movements to Great Britain

Wed, 15 Dec 2021 14:20:36 GMT

An official ministerial announcement was made 15th December. The UK Government has announced in a Ministerial Statement of the decision to extend the border arrangements which currently apply to goods moving from the island of Ireland to Great Britain while discussions on the Northern Ireland Protocol are ongoing.

That means Sanitary and Phytosanitary goods moving from the island of Ireland to Great Britain will continue to do so on the basis of the arrangements that apply now - until further notice; and will not, for now, be affected by the changes being introduced on 1 January 2022 for all other GB inbound goods.

For animal product controls this means:

The new pre-notification requirements being introduced on EU imports from 1 January 2022 for Products of Animal Origin and Animal By-Products will not apply to goods imported from the Republic of Ireland to Great Britain.
Existing requirements (introduced in January 2021) for Live Animals, Products of Animal Origin (POAO) under safeguard measures, germinal products and high risk Animal By-Products remain unchanged, i.e. imports of these goods from the Republic of Ireland (ROI) to GB and indirect movements from Northern Ireland (NI) moved via the ROI to GB, will continue to require pre-notification, to be accompanied by appropriate documentation and certification, and will continue be subject to risk-based import checks.
Direct movements from NI to GB of NI Qualifying animal products, will continue to have unfettered access to GB.

For plant and plant product controls this means:

The new pre-notification requirements being introduced on EU imports from 1 January 2022 will not apply to goods imported from the Republic of Ireland to GB.
Existing requirements for ‘high-priority’ plants remain unchanged, i.e. imports of these goods from the Republic of Ireland (ROI) to GB and indirect movements from Northern Ireland (NI) moved via the ROI to GB, will continue to require pre-notification, to be accompanied by a phytosanitary certificate, and will be subject to risk-based import checks.
Direct movements from NI to GB of NI Qualifying plants and plant products, will continue to have unfettered access to GB.

High Risk Food not of Animal Origin

Businesses moving high risk foods not of animal origin (HRFNAO) directly from the Island of Ireland (Republic of Ireland and Northern Ireland) into Great Britain, will also be exempt from the requirement to pre notify. This is a temporary arrangement and will be reviewed early next year.

Notice to Exporters - Update to UK Export Controls

Wed, 08 Dec 2021 15:24:37 GMT

Via the gov.uk “Notice to Exporters” updates in relation to UK Export Control regulations 2021/14 have been released on Wednesday 8 ^th December confirming that a new Strategic Export Licensing Criteria has been laid before UK Parliament.

Via the gov.uk “Notice to Exporters” updates in relation to UK Export Control regulations 2021/14 have been released on Wednesday 8 ^th December confirming that a new Strategic Export Licensing Criteria has been laid before UK Parliament.

This is an important change because the criteria will be applied immediately to all licensing decisions on goods, software and technology controlled for strategic reasons for export, transfer, trade (brokering) as well as transit and transhipment. In addition, the criteria will also be applied to the provision of technical assistance or other services related to those items, to the extent that these activities are subject to control.

There is also a revision to Military End Use controls in the UK. The change will permit a control on a case-by-case basis of non-listed items intended for use by the military, paramilitary, security forces or police forces for a destination that is subject to an arms embargo under UK export controls.

Exceptions to this control mould be for medical supplies and equipment for hospitals and public health institutions as well as food, clothing, and consumer goods available to the public.

In addition, China will be added to the list of destinations subject to Military End Use Controls but this doesn’t change the partial arms embargo on China that is already in place.

This change will be delivered via an amendment to the 2008 Export Control Order which is due in Spring 2022.

This is the link to the Trade Policy Update made today by Anne-Marie Trevelyan https://questions-statements.parliament.uk/written-statements/detail/2021-12-08/hcws449

Key text from the update.

The Strategic Export Licensing Criteria, 8 Criterion (summarised below) which forms the basis for reasons that an export licence will not be issued / the considerations that the UK Government will make when deciding if a licence will be granted.

This statement of the Criteria is guidance given under section 9 of the Export Control Act 2002. It replaces the Consolidated EU and National Arms Export Licensing Criteria announced to Parliament on 25 March 2014.

Criterion One; Respect for the UK’s international obligations and relevant commitments, in particular sanctions adopted by the UN Security Council, agreements on non-proliferation and other subjects, as well as other international obligations.

Criterion Two; Respect for human rights and fundamental freedoms in the country of final destination as well as respect by that country for international humanitarian law.

Criterion Three; Preservation of internal peace and security

Criterion Four; Preservation of peace and security

Criterion Five; The national security of the UK and territories whose external relations are the UK’s responsibility, as well as that of friendly and allied countries.

Criterion Six; The behaviour of the buyer country with regard to the international community, as regards in particular its attitude to terrorism and transnational organised crime, the nature of its alliances and respect for international law.

Criterion Seven; The existence of a risk that the items will be diverted to an undesirable end-user or for an undesirable end-use

Criterion Eight; The compatibility of the transfer with the technical and economic capacity of the recipient country, taking into account the desirability that states should achieve their legitimate needs of security and defence with the least diversion for armaments of human and economic resources.

And importantly; In exceptional circumstances the government may decide not to grant a licence for reasons other than those set out in Criteria 1 to 8 where the items may have a significant negative impact on the UK’s international relations.

This is the link to the Notice to Exporters Update https://www.gov.uk/government/publications/notice-to-exporters-202114-updates-to-the-export-control-regime

While you are here you may be interested in some Strong & Herd LLP training courses related to this topic, we offer a wide range of high quality training courses to support all importing and exporting activities.

The Dual-Use Exporter: Understanding Dual-Use Export Controls

A Spotlight on: HS 2022 The Harmonised System

Wed, 08 Dec 2021 13:18:13 GMT

Every five years in Brussels, the World Customs Organisation (WCO) releases their general review of the Harmonised Commodity Description and Coding System (Harmonised System or HS). That quinquennial event has come round again with an updated system from 1 January 2022.

quinquennial

ADJECTIVE

recurring every five years.

"they conducted quinquennial reviews"

lasting for or relating to a period of five years.

And every five years in Brussels, the World Customs Organisation (WCO) releases their general review of the Harmonised Commodity Description and Coding System (Harmonised System or HS). That quinquennial event has come round again with an updated system from 1 January 2022.

The International Convention on the Harmonised Commodity Description and Coding System (HS Convention) serves as a basis for the Tariff schedules of more than 200 countries around the world. And yet it isn’t a Tariff. The HS Nomenclature is simply a set of tables that provide the uniform classification of goods traded internationally.

The HS Nomenclature covers Chapter, Heading and Subheading, taking the HS code to six digits. Our own government adds a further two digits for exports and four digits for imports, to make up our UK Trade Tariff commodity codes. These extra digits are used to create and maintain Duty Tariffs, Domestic Taxes, Trade Policies, Rules of Origin, Monitoring of Controlled Goods and Price Monitoring.

And because new goods are appearing on the global market all the time, the HS Nomenclature needs to keep pace with this changing world, and the five-year review is a way of doing just that.

For example, novel tobacco and nicotine-based products do not appear in HS 2017, but they now have a place in the new 2022 version.

For example, drones (UAVs) do not appear in HS 2017, but they will have their own separate headings in the 2022 version.

As mentioned in our introduction, the HS review is a quinquennial event, the last one having taken place in 2017. So, from 1 January 2022 we can expect many changes to our own UK Trade Tariff, which of course takes the commodity codes form the HS Nomenclature.

HMRC has indicated that it will publish full details of the changes in early December. In the meantime, the 6-digit correlation tables can be accessed on the WCO website here:

Table I - Correlating the 2022 version to the 2017 version

TABLE II - Correlating the 2017 version to the 2022 version

In addition, the full HS Nomenclature 2022 edition can be accessed on the WCO website here:

HS Nomenclature 2022 edition

Useful links in relation to this months' Spotlight On....

Clinic - H S2022 Live Clinic
S&H has divided the 21 Sections of the HS into 3 specific clinics. The clinics are divided into related Sections of the tariff as follows:

CLINIC HS2022/1 9:00 to 10:30 – covering Sections 1 to 7 which includes animal and vegetable products, prepared foodstuffs and beverages, mineral products, products of chemical or allied industries and articles of rubber and plastic.

CLINIC HS2022/2 11.00 to 12.30 – covering Sections 8 to 14 which includes leather, wood, stone and articles thereof, textiles and textile articles, footwear, ceramic products, glass and glassware and precious or semi-precious stones and jewellery.

CLINIC HS2022/3 14.00 to 15.30 – covering Sections 15-21 which mainly includes machinery and mechanical appliances, vehicles, aircraft and vessels, measuring and checking apparatus, arms and ammunition, along with miscellaneous manufactured articles such as toys and works of art.

Public Training Courses with Strong & Herd
Tariff Classification Explained

Trade Resources
Glossary of Terms
Industry Insights

Cost effective specialist training, Business Support & Hepline

Collecting Ex-Works from the EU and the UCC Definition of an Exporter

Wed, 08 Dec 2021 12:49:18 GMT

Buying on Ex-Works Terms from Europe in a post-Brexit UK. The definition of Exporter according to Article 1(19) UCC.

With the UK being a third country, Ex-Works has become a more challenging Incoterm for international trade. However, it is still widely used.

What are the implications of Ex-Works in a contract between a selling company in Italy and a purchasing company in the UK?

Under Ex-Works, the selling company is not responsible for the export formalities. The buying company would have to arrange to collect the goods in Italy and export the goods from the territory of the EU.

The Definition of “Exporter” as per ARTICLE 1 (19) Union Customs Code Delegated Acts and the additional EU guidance on the definition of Exporter, which can be found here state that

when not a private individual, the Exporter must be a business

- Established in the EU

- With the power and right to take the goods out of the EU

When the UK was part of the EU, a UK company could have legally met the requirements to act as the exporter. Today, unless separately established in the EU, the UK company does not have any legal rights to act as the exporter of the goods from the EU.

Therefore, the question is: who will act as the exporter in a contract under Ex-Works negotiated between a UK buyer and an EU seller?

The revisions made to Article 1(19) make it easier for the carrier, or a freight forwarder, to act as the Exporter for customs purposes.

Naturally, the carrier must meet the definition of Exporter (EU-established and empowered) and be a party to the contract of transport , which require the carrier to have the necessary agreements in place with the selling companies or with the purchasing party.

Most importantly, the carrier must be comfortable in taking this responsibility.

The transport contract would give the carrier the power to determine that the goods are to be taken out of the customs territory of the EU . Clearly not all carriers are happy to take that responsibility onboard. Being the exporter of record can add additional liability and can create other issues when there are certificates required or licence controls to support the export, or other regimes such as transit involved.

As always, choosing the right Incoterms® 2020 rule is a key factor in international (and national) negotiations between buyers and sellers. Since the UK is now a 3 ^rd country to the EU, when contracts are negotiated on an Ex-Works basis, the UK company will necessarily need a 3 ^rd party – established in the EU - to act as the exporter. For contracts negotiated on any other Incoterms® 2020 rule, the sellers should be dealing with the export formalities.

The legal framework used for this analysis is the Definition of “Exporter” as per ARTICLE 1 (19) UCC DA and the additional EU guidance on the definition of Exporter, which can be found here https://ec.europa.eu/taxation_customs/document/download/468590f1-6210-428c-81be-ab662c95f4c4_en

ICC Incoterms® 2020 Rules Explained

HMRC Publish GVMS Helpline

Tue, 07 Dec 2021 14:46:12 GMT

HMRC Publish Port Operating Models

HMRC have published details of Port Operating Models. The information contained in the documents reached by the links below, will give vital information for hauliers moving goods across the border from 1 ^st January, 2022

Documents can be reached here:

https://www.gov.uk/government/publications/notices-to-be-made-under-the-customs-import-duty-eu-exit-regulations-2018

https://www.gov.uk/government/publications/notices-to-be-made-under-the-customs-export-eu-exit-regulations-2019

Publication of GVMS Helpline Information

HMRC have also shared details of a Customs Helpline set up to assist UK traders should they experience problems using the new Goods Vehicle Movement Service

The Customs and International Trade Helpline details are as follows:

Telephone: 0300 322 9434

Lines are open:

08:00 – 22:00 Monday to Friday

08:00 - 16:00 Weekends

The helpline covers:

• General advice on GVMS

• Help moving goods at the border

• Problems registering for GVMS

• Error messages when creating Goods Movement References

HMRC are keen that hauliers moving goods across the GB border, register for the service immediately.

The helpline details should be kept to hand for all those involved in cross-border activity as the service is extended for implementation in non-inventory linked GB ports on 1 ^st January 2022.

The link to the HMRC Guidance for GVMS Registration is below

https://www.gov.uk/guidance/register-for-the-goods-vehicle-movement-service?utm_campaign=transition_p6&utm_medium=cpc&utm_source=seg&utm_content=ukb_hauluk__act161&utm_term=&gclid=EAIaIQobChMI2MDjgObH9AIVXoBQBh0oMQ3YEAAYASAAEgJaQ_D_BwE&gclsrc=aw.ds

The role of GVMS and what does it mean for you? Live Clinic

Mini VAT Series Part 4 - VAT Overview

Mon, 06 Dec 2021 14:44:31 GMT

https://www.gov.uk/guidance/important-notice-about-the-1-january-2022-uk-integrated-tariff-tariff-stop-press-notice-21

TCA Grace period applied to Exporters under preference not Importers

Sat, 04 Dec 2021 07:08:26 GMT

Beware of Incorrect Information circulating on Using Preference when Trading UK-EU under the Trade Cooperation Agreement

Following the publications of our news items on Supplier Declarations (17 November 2021) it has been brought to our attention that credible sources are providing incorrect/ misleading statements about the changes coming in on 1st January 2022 on the use of preference between UK and EU under the Trade Cooperation Agreement (TCA).

The grace period extended to EXPORTERS under preference comes to an end 31 December 2021. The grace period meant that UK and EU EXPORTERS did not need supporting supplier evidence (Supplier Declarations) prior to stating goods qualify for preference under the TCA on EXPORT invoice statements made within 2021.

Under all Preferential Trade Agreements, holding SUPPLIER DECLARATIONS in advance of making EXPORTER origin statements is mandatory when the company exporting goods and wanting to issue an invoice preference statement either

is not the manufacturer of the goods being exported and is exporting them unchanged/ unaltered or just repacked for example, or
when the manufacture alone is not enough to meet the product specific rules of origin, for example under the 50% Max Non-originating material rule

The grace period meant that EXPORTERS making invoice statements confirming the goods qualify for UK Preferential origin (or EU Preferential origin if shipped EU to UK) had until 1 January 2022 to get this legally required supporting evidence from suppliers. And the Supplier Declarations must cover exports made throughout 2021 not just exports to be made in 2022.

If an EXPORTER does not have supporting Supplier Declarations in place on 1st January 2022 and has issued the exporter invoice statement that the goods qualify as UK Preferential origin (or EU Preferential origin if shipped EU to UK) in 2021, they must notify their EU Customers (or UK Customers) that supporting evidence is not in place and the customers (the importers) are advised to make voluntary disclosures to the customs authorities in the country of import and repay the duty saved incorrectly under preference because of an unsupported exporter origin statement.

If an EXPORTER does not hold supporting evidence, including Supplier Declarations when relevant, to verify the preference origin of goods:

the EU importer (or UK customer if goods imported into UK from the EU) will be liable to pay the full (non-preferential) rate of customs duty,
the exporter may be charged a penalty, and
the exporter may be excluded from using preferential tariffs going forward

Final point - these SUPPLIER DECLARATIONS must not be sent to your overseas customers, they are for OFFICIAL CUSTOMS AUDIT CHECKS only. Only Customs Authorities in the country of export can ask to see this supporting evidence as the information is often commercially sensitive.

THERE HAS BEEN NO GRACE PERIOD/ EASEMENT for companies claiming preference at IMPORT – either an exporter preference statement was used (U110+U111) or Importers Knowledge has been used (U112). Under IMPORTERS KNOWLEDGE the importing company has legally stated that they - THE IMPORTER (or customs agent if doing an import declaration on behalf of an overseas company) holds all the manufacturing records in the UK (or EU if imported into an EU Member State) at the time of claiming the preference.

If you have used IMPORTERS KNOWLEDGE to claim zero import duty under the EU-UK TCA you are at risk of having to pay back the duty you think you've saved.

IMPORTERS bear the burden of proof if they claim a preferential duty rate at import so they can request a supplier verification statement to confirm the supplier understands the rules of preferential origin in the relevant agreement. This is to support the official exporter origin statement or preference certificate (EUR1/GSP Form A) they have issued and which the importer needs to claim preference. This additional verification is not an official SUPPLIER DECLARATION. It’s part of an importers due diligence procedure but is not a legal requirement. A supplier declaration or verification certificate is not sufficient to evidence Importers Knowledge has been met.

If you think you have been affected by mis-statements or unclear messages please get in touch as we are speaking with HMRC about this issue to see if any misunderstanding of the law can be addressed retrospectively. We are also running a live specialist clinic on 16 December 2021 covering this confusing topic.

That was the news: November 2021

niamho@strongandherd.co.uk (Niamh O'Connor) — Wed, 01 Dec 2021 12:58:59 GMT

Remember, remember, the 5th of November, Gunpowder, treason and plot.... Leaving behind the latter, November was packed full of announcements from HMRC including the updated BOM (Border Operating Model) and from ourselves November saw the introduction of Live Specialist Clinics.

What's been in the News? What have we been up to? What have Strong & Herd (S&H) and our clients been talking about? Here is a quick update - December is Tariff Classification month so keep an eye out for a special Spotlight on the HS2022 update later in the month and live specialist clinics on this topic! For all the latest news & updates, check out our Industry Insights page and don't forget to follow us on LinkedIn !

S&H News: Remember, remember, the 5th of November, Gunpowder, treason and plot.... Leaving behind the latter, November was packed full of announcements from HMRC including the updated BOM (Border Operating Model) and from ourselves November saw the introduction of Live Specialist Clinics.

November also saw the introduction of our new membership package - CDS Community Support

In November 2021:

HMRC publish the final version of the Border Operating Model
For those looking closely at the BOM for clear compliance direction, there’s plenty of information. There are also gaps in the information where HMRC confirm that further detailed updates will follow in due course. It included Import Easements & a POAO, Phytosanitary and Sanitary Goods: Revised timetable: READ MORE

Authorisation Change for Authorised Consignee for Temporary Storage HMRC announces a relaxation to the requirements for Authorisations for Temporary Storage for Authorised Consignees and Authorised Consignors.

Authorised Consignees are trusted traders, authorised to end the Transit movements of goods and complete customs import formalities at their own premises (away from the border) under the Common Transit Convention (CTC). Authorised traders must ensure that they have a Temporary Storage Facility (TSF) approved by Border Force to enable the temporary storage of goods at a TSF for up to 90 days. READ MORE

Goods Vehicle Movement Service - Go Live GB-EU, EU-GB January 2021
Early preparation for the Goods Vehicle Movement Service (GVMS) is essential, and time is running out if you want to be up and running for 1 ^st January 2022. Businesses will need time to study and understand the new system, and issues will arise if businesses don’t involve hauliers and drivers in the process... READ MORE

EU-UK TCA Supplier Declaration - Statement from Managing Partner Sandra Strong
"Since 1 ^st January 2020, companies in the UK and EU have been trading under the EU-UK Trade Cooperation Agreement (TCA), and there has been a grace period for companies exporting under preference from needing to hold supplier declarations before making the exporter origin statement to enable their customers to claim a zero duty at import. It’s so easy to misunderstand this grace period as terminology within FTAs can be confusing. A supplier declaration is not used to claim preference at import." READ MORE

EU - UK TCA Supplier Declarations - Live Clinic with Managing Partner Sandra Strong

In-case you missed it earlier in the month - Spotlight On..... CDS The Customs Declaration Service

Mini VAT Series so far.....
Part One - What is VAT and why is it important?
Part Two - How to Handle Import VAT
Part Three - How do you calculate VAT on an Import?

With thanks to Sandra Strong, Bernard O'Connor, Gail Leeson & Emmanuel Gianquitto for their contributions to this newsletter.

Tariff Changes in Preparation for the Implementation of HS2022 1st January, 2022

Wed, 01 Dec 2021 12:06:17 GMT

HMRC have updated the guidance pages relating to preparation for the implementation of the new Tariff on 1 ^st January 2022.

Those accessing the Tariff regularly will have noticed on-going changes to the pages format.

The updated version of the Harmonised System will be implemented for use from 1 ^st January 2022, and as we wait for the new changes to be applied it may be important to note that the format of the present tariff has changed.

This may catch a few out as the initial pages no longer link to the Sections and Chapter pages. All the data is there, it’s just the method of reaching the pages has changed.

Changes to the Format

The Start Now function button that used to link directly to the Sections and Chapters of the Tariff, now links directly to the UK Integrated On-Line Tariff – Look up commodity codes, import duties, taxes and controls page. This page provides the information that will allow the user to:

Check how to Import and Export goods
Access the A-to-Z search engine for product descriptions with the relevant chapter and heading (1 ^st 4 digits on the HS)
Search by goods description or commodity code to check the relevant requirements Note: There is an option to select a date of import when selecting the commodity code. If a specific date is not chosen, the enquiry date will be the default search date.
Search for Advance Tariff Rulings, or find out more about the ATR process
Access the link to submit a Non-Legally Binding Decision from HMRC

By clicking on the browse the goods classification link the user will be able to access the Sections and Chapters of the Tariff in the usual format.

Link below to the updated HRMC Guidance published 25 ^th November 2021

New Trade Agreement Between UK and Norway

Wed, 01 Dec 2021 06:46:02 GMT

A new trade agreement between the United Kingdom and Norway came into effect from 1st December.

Norway was the UK’s 20 ^th biggest export market in 2020, and the 14 ^th largest importer. Trade between the two countries was worth almost £15 billion last year.

Replacing the previous Goods Agreement, the new arrangement builds on the existing trade relationship. For some goods, such as certain fish and cheese products, tariffs are lower than before. There are also new tariff rate quotas on a range of food products. Some of the new tariff quotas are seasonal, meaning that the amount allowed varies from month to month.

The new agreement also updates some regulations on product testing, standards and regulations, making the customs clearance processes easier in many cases.

The agreement also makes it easier for British companies to send staff to work in Norway for up to four years, and there are easements for FinTech firms seeking to provide services in Norway.

Some exporters have expressed disappointment that the arrangements for Protected Geographical Indication are more restricted than under the previous arrangement. Scotch whisky continues to enjoy rules that mean the name of the product cannot be used by manufacturers outside of the geographic area. But Cornish pasties and Stilton cheese are among several products that have lost their protection.

Exporters of goods to Norway can check whether there are any changes for their products at https://www.gov.uk/check-duties-customs-exporting

Importers of goods from Norway to the UK can check for any changes in respect of their products at https://check-how-to-import-export-goods.service.gov.uk/goods-intent?tradeType=import

Update to the Border Operating Model

Tue, 30 Nov 2021 10:54:53 GMT

For those looking closely at the BOM for clear compliance direction, there’s plenty of information. There are also gaps in the information where HMRC confirm that further detailed updates will follow in due course.

The anticipated update to the Border Operating Model (last issued July 2021) was published by HMRC on 18 ^th November.

This release is likely to be the final update for 2021, so it will be important to keep up to date with on-going releases of border related guidance into the new year, and beyond.

What is vital to understand in the first instance is:

Import declarations will be necessary for goods travelling into GB from EU member states 1 ^st January 2022
The import easements that have been in place for 2021 will stop.
The EU UK Trade Cooperation Agreement will not negate the requirement for customs measures at the border

Import Easements

Businesses that have been using the delayed declaration easement at import, where top level data is submitted to HMRC at import, with 175 days to make the Supplementary Declaration Import (SDI), will need to consider reverting to the non-easement process. Only companies specifically approved to use the Simplified Customs Declaration Procedures (SCDP), also known as CFSP, will be able to bring goods into GB without a full customs declaration. A Simplified Frontier Declaration (SFD) will be needed at arrival with the supporting Supplementary Declaration Import (SDI) submitted by the 4 ^th working day of the month following the month in which the goods were imported. In addition a Final Supplementary Declaration (FSD) will need to be submitted to HMRC, this is a message confirming the number of SDI submissions that month.

Customs entries made into declarants’ records (EIDR) will also cease in the present import easement form, unless approved to use EIDR within a CFSP authorisation. So, from1 ^st January, the procedure for imports where declarations are made into declarants’ commercial records will need to be supported by the appropriate HMRC authorisation.

The authorisation applications will incur HMRC processing time.

If your business has received imported goods without the evidence of an import declaration, it will be crucial for your business to investigate and take appropriate action.

VAT needs to be calculated at the time of arrival of goods and declared within the VAT return relating to the date of arrival of goods. This has proven challenging for businesses using the easement unless appropriate VAT import measures have been implemented. If import VAT has not been provisioned at import or declared on the VAT return for the period covering the imported goods receipt into the UK, the business should investigate and seek appropriate guidance.

Traders involved in the supply and import of Products of Animal Origin, Phytosanitary, and Sanitary goods will need to keep abreast of the revised import timetable and any updates that are expected to be announced as measures progress.

POAO, Phytosanitary and Sanitary Goods: Revised timetable:

Full customs declarations and controls will be introduced on 1 January 2022 as

previously announced. However, Safety and Security Declarations (the responsibility of the party engaged in moving the goods) will now not be required until 01 July 2022.

Pre-notification requirements of Sanitary and Phytosanitary (SPS) goods, which

were due to be introduced on 01 October 2021, will now be introduced on 1 ^st January 2022, with some change to certification and physical checks slipping back to November, 2022, when the inland Border Control Posts are fully prepared.

From 01 July 2022, certification and physical checks will be introduced for:

All remaining regulated animal by-products.
All regulated plants and plant products
All meat and meat products.
All remaining high-risk food not of animal origin.

From 01 September 2022 , certification and physical checks will be introduced

for all dairy products

From 01 November 2022 , certification and physical checks will be introduced for

all remaining regulated products of animal origin, including composite products

and fish products.

From 1 ^st July 2022: High-priority plants and plant product checks will transfer from place of destination to designated Border Control Posts and control points

Live animal physical checks

Live animal physical checks will take place at Designated Border Control Posts where a facility is operational at the point of entry.

Where there is no designated BCP, checks will remain at destination for other ports of entry until sufficient BCPs are operational.

1 ^st July, 2022 Checks at Sevington inland BCP and designated airport BCPs will commence

For businesses where the updated BOM falls short of the detail needed to make thorough adjustments to their working processes, IT, or simply those businesses intent on giving their agents accurate instructions, the devil will be in that detail.

UK businesses involved in international trade have had to manage a lot of change over the last year. It is not over yet.

In September 2022 CHIEF imports will move to the Customs Declaration Service, there will be a lot more to prepare for.

CDS Community Support Membership

OneCall® Membership

S&H Live Specialist Clinics

Mini VAT Series Part 3 - How do you calculate VAT on an import?

Mon, 29 Nov 2021 15:00:16 GMT

Demystifying the Vat Value Adjustment

When goods coming from abroad cross the UK border, they become liable for UK import duty and value added tax.

There are various types of tax payable when goods cross the border into the UK. The most common types are import duty and value added tax. However, your goods may also be liable to excise duty (alcohol, hydrocarbon oil), antidumping duty, climate levy, etc.

In this article, we discuss the topic of import VAT.

The Tariff provides the available rates of VAT applicable to the product we are importing. When multiple rates of VAT are available, specific VAT rules regulate how these can be used. Further details is available here

Import VAT is calculated using this formula:

Value for VAT purposes =

Value of the landed goods +

Duty +

Incidentals incurred in the UK +

Cost of delivery within the UK

There is a separate article explaining how we arrive to the value of the landed goods. Read More

Let’s assume we know the value of the landed goods and that we have calculated the amount of duty payable.

We now need to turn our attention to the incidentals.

HMRC defines as incidentals all the costs incurred in fulfilling the contract between the buyer and the seller, after the introduction of the goods into the UK. For example, we need to consider the costs of customs brokerage, national freight (transport within the UK), container terminal charges, inspections, etc.

HMRC understands that it may be challenging to calculate incidentals at the time of filing a customs declaration, considering that often the incidentals are incurred after the goods have crossed the border.

HMRC VAT Notice 252 (link below) includes a table of values that can be used to estimate the incidentals. Using these rates is accepted by HMRC without the need to file actual values at a later stage.

https://www.gov.uk/government/publications/notice-252-valuation-of-imported-goods-for-customs-purposes-vat-and-trade-statistics

The table provides the following scales:

- Air freight 40p per chargeable kilo – minimum £100.00

- Sea or road groupage i.e. Less than Container Load - £90.00/tonne + £80.00/consignment – minimum £170.00

- Sea or road Full Container Loads - £550.00 per consignment

The final part is the cost of National Freight.

Depending on the Incoterms, this cost may already be included in the invoice. For example, in a DAP invoice you could have both the national and international elements of the freight included in the price paid.

The compliant approach when you have this situation would be to deduct the national freight from the invoice value for duty calculations, and declare that amount separately as an element of the Vat Value Adjustment to calculate the correct amount of payable VAT.

Naturally, when we deal with 0% duty rate, separating the national from the international freight will have no effect on the overall amount of VAT payable.

Postponed VAT Accounting

As a final consideration, we should mention that the Postponed VAT Accounting is a mechanism now available to all VAT registered importing businesses.

Whilst traditionally import VAT has always been due at the time of importation, since 1 ^st Jan 2020, all VAT registered traders have had the facility to postpone VAT.

This mechanism allows for VAT to be calculated at time of importation but not paid until later.

Traders can elect to postpone VAT at import and deal with it when filing their periodic VAT return. On the return, traders would then list the amount of import VAT due and import VAT to be reclaimed at the same time. For most businesses, import VAT is entirely reclaimable. PVA is therefore an excellent – and free – way of improving cashflow for importing businesses.

https://www.gov.uk/government/publications/notice-252-valuation-of-imported-goods-for-customs-purposes-vat-and-trade-statistics

How do you calculate duty on an import? Understanding Cost, Insurance and Freight.

Mon, 29 Nov 2021 14:58:25 GMT

Understanding Cost, Insurance and Freight. When goods coming from abroad cross the UK border, they come in scope for UK tax.

There are various types of tax payable at import, the most common types being import duty and value added tax. However, your goods may also be liable to excise duty (alcohol, hydrocarbon oil), antidumping duty, climate levy, etc.

In this article, we discuss the topic of import duty. Each commodity that we import has an associate rate of duty payable, normally influenced by its origin. The UK Tariff provides the exact rate of duty applicable to the product we are importing. In the UK, import duty is generally applied ad valorem, meaning that it is calculated on the value of the goods.

The first question if therefore: how do we know the value of the goods?

According to Customs Notice 252, something is very clear: the value of your goods is not necessarily the price you paid for them.

HMRC lists 6 methods to calculate the value of the goods.

Let’s start with Method 1.

Method1: Transactional value

This method takes into account the price paid by the buyer to the seller for the goods in question. However, you could have imported goods which have a certain value although you may have paid less – or even nothing at all if the goods were free of charge. In this case, you may need to use Method 2

Method 2: Value of identical goods

This method uses the value of identical goods available for sale. If the goods you’ve imported are no longer available for sale, you may need to use Method 3

Method 3: Value of similar goods

If you are unable to arrive at a value using any of the 3 previous methods, you can use Method 4, or 5.

Method 4: Selling price of the goods in the UK

Method 5: Cost of production

Method 6: Covers anything else, typically requiring prior agreement with HMRC.

Note: there are specific supporting compliance documentation to be produced and held on file for each of these methods as use must be justified at HMRC audit.

Let’s concentrate on Method 1, which according to HMRC accounts for over 90% of the goods imported into the UK.

Although Method 1 is undoubtedly the easiest approach, it’s not necessarily as easy as it seems. Apart from the value of the goods itself, HMRC clearly stipulates that there are other elements which we should include in our duty calculations and some which can legally be deducted.

HMRC requires that we include in the dutiable value the cost of the transportation to the UK plus any insurance purchased to cover the goods. We refer to the Cost of the goods, plus the Insurance and Freight to the UK - or CIF value - as the value of the landed goods, in other words the value of the goods at their point of entry in the UK.

If the goods are sold on any of the pre-CIF (Cost, Insurance and Freight) Incoterms ®, such as FCA (Free Carrier), your invoice price will only reflect the price of the goods. In this case, to obtain the value of the landed goods, you would need to add to the invoice price, the cost of the Insurance plus the cost of the international freight.

If the goods are sold on any of the post CIF Incoterms ® (for example DAP – Delivered At Place), your invoice price will already include everything needed: Cost of the goods, Insurance and Freight to the UK). In this case, the value of the landed goods could equate to the value of the invoice.

There may be, however, some elements which can be legally removed from the value of the landed goods, therefore reducing the overall amount of duty payable.

For instance, the invoice price may include a UK sales commission, UK transport costs or processing costs in the UK. These amounts should be deducted from the invoice price to obtain the true value of the landed goods. In other words, you need to exclude any costs incurred after the point of introduction in the UK because they would not subject to import duty.

Discounts can also be deducted, but care must be exercised. Not all discounts are allowable. In general, discounts for quantity, trade discounts, cash and early settlement discounts can be lawfully deducted only when they are generally available to any buyer and not linked to special arrangements or if the relationship between seller and buyer affects the price, such as in the case of related companies.

In summary, if we can use Method 1 for valuation purposes, we can apply this formula:
Value of the landed goods =

Cost of the goods +

Insurance +

Freight to the UK

The ad valorem duty payable will be a percentage value calculated on the value of the landed goods.

Authorisation Change for Authorised Consignee for Temporary Storage

Mon, 29 Nov 2021 13:50:08 GMT

HMRC announces a relaxation to the requirements for Authorisations for Temporary Storage for Authorised Consignees.

Background

Authorised Consignees are trusted traders, authorised to end the Transit movements of goods and complete customs import formalities at their own premises (away from the border) under the Common Transit Convention (CTC). Authorised traders must ensure that they have a Temporary Storage Facility (TSF) approved by Border Force to enable the temporary storage of goods at a TSF for up to 90 days.

When the staged customs controls end on 1st January 2022 HMRC will require that all TSFs be inventory linked which will impact on any authorised consignee using such a facility.

Authorised consignees ending a transit movement tend to move goods into free circulation and would rarely store goods at a facility for any length of time, so preparing for inventory linking to the facility would represent an extra cost, disproportionate to the compliance risk presented by a body having already undergone a trusted trader authorisation process.

Managing Transit, and Transit Simplified Procedures

Under standard Transit procedures a transit movement must start at a Customs Office or Inland Border Facility where the goods are presented, and the Transit Accompanying Document is obtained.

Likewise, to close transit, the goods are presented with the Transport Accompanying Document at a Customs office, or Inland Border Facility, allowing for any inspection, should Border Force decide to inspect the goods, within a given period of time (or timed-out period).

The Trusted Trader facilities for managing the start and end of Transit movements away from the Customs Office of IBF are the Authorised Consignee and Authorised Consignor simplified procedures.

Authorised consignors are approved to:

Declare goods to transit at their premises rather than an Office of Departure.
Have automatic ‘time-out’ release of goods if no control inspection decision is taken by Border Force at the office of departure. Depending upon the conditions of authorisation this ‘time-out’ may be outside the normal opening hours of the office of destination

Authorised consignees are approved to:

End transit movements at their premises or another authorised location. Examples are: - a port, airport or other approved place, rather than the Office of Destination.
Send their arrival notification message to the relevant office electronically, rather than hard copy.
Receive automatic ‘timed-out’ permission to unload the goods if the goods are not subject to further controls or inspections by the office of destination. Again, this is dependent upon the conditions of authorisation, as ‘time-out’ may be outside of the normal opening hours of the office of departure

Until the announcement on 25th November, Authorised consignees had to be approved for Temporary Storage, which required a separate authorisation in a separate application form to Border Force, who police compliance at the Temporary Storage Facilities – facilities usually being close to airports and ports.

The announcement removes the latter part of the authorisation process

Mini VAT Series Part 2 - How to Handle Import VAT

Mon, 22 Nov 2021 14:41:35 GMT

With HMRC increasing their audits of UK importers, it is time to check what you are doing as a business, here's a step by step guide on how to handle import VAT.

Step 1 – will you be taking ownership of the goods imported? This is very important because if you do not meet the requirements of ownership or receive customs confirmation that they are imported for a legitimate business use, you cannot offset/reclaim VAT. Check very carefully if you import goods for repair, after repair, for demonstration, exhibition, lease or hire, import on behalf of another UK entity or other similar situations where ownership remains with the sender of the goods or another party. If ownership cannot be established rather than waste 20% VAT, check out which customs special procedure will permit you to import without paying VAT and under which conditions.

Step 2 – know what is being importing and decide which system of import VAT you want to use. The way the customs declaration is created, a Method of Payment (MOP) code is required to determine whether VAT is going to be paid against a deferment account (Code F), the FAS (Code D) or PVA (Code G). Notify your import agent which method you want to use. The Tax Code for VAT on an import entry is code B00 (import duty is A00). If you believe your goods are eligible for a zero or reduced rate of VAT notify the person submitting the entry and retain evidence to support this claim

Step 3 – Obtain a copy of the import entry and check that the VAT has been declared to the right Method of Payment. Unfortunately, if a mistake has been made, for example you wanted to use PVA but the agent has declared it to MOP F, it cannot be changed so you have to ensure you can handle the alternative procedure for offsetting import VAT

Step 4 – Register for HMRC Management Support Service (MSS), this costs £240.00 per annum. You will receive an excel spreadsheet each month listing all imports made against your EORI so you can check that everything you believe has arrived at your premises has been correctly declared. If something is missing, especially if it arrived from the EU, you must investigate to see if the delayed declaration system has been used, perhaps unknowingly to you. Obtain as much information as possible and ensure you can submit your VAT return accurately with the correct VAT month/quarter relating to the date of arrival as well as the full customs declaration within 175 days of arrival.

Step 5 - ensure you have written procedures and someone internally allocated responsibility to manage the process of reconciling import customs entries, the MSS returns, deferment account statement and forwarder invoices (when relevant) with the VAT Certificates.

Step 6 – check both type of VAT Certificates, both the C79 and the MPIV, and ensure you have import evidence of these entries and that you can provide evidence of ownership in line with the UK VAT regulations. If satisfied, enter the details as input VAT. For PVA you complete the VAT return as follows:

Box 1 includes VAT due in this period on imports accounted for through Postponed VAT Accounting
Box 4 includes VAT due in this period on imports accounted for through Postponed VAT accounting
Box 7 includes the total value of all imports of goods in this period, less VAT

Conclusion

Remember, VAT will be charged at import whether you are a consumer, a non-VAT registered business, or a VAT registered business. If VAT registered, then as well as paying the VAT to HMRC you can include import VAT as an input tax on your VAT returns; in essence offsetting/ reclaiming the amount outlaid. But you do need to have evidence of ownership of the goods and have an official VAT Certificate showing the amount paid. Finally, until 31 ^st December 2021, some imports from the EU may seem invisible, as a customs declaration doesn’t have to be made on arrival, but VAT must still be accounted for within the correct VAT period. With HMRC increasing their audits of UK importers, it is time to check what you are doing as a business.

Leaflets for hauliers about new rules for moving goods between the EU and Great Britain - GOV.UK (www.gov.uk)

HMRC publish the final version of the Border Operating Model

Thu, 18 Nov 2021 13:47:24 GMT

HMRC have published the final version of the Border Operating Model, which has been followed by the published schedule for changes and the implementation of import easements and measures relating to Sanitary and Phytosanitary goods well into the new year.

It will be vital for those involved in the import of Sanitary and Phytosanitary goods to ensure they both understand and are able to implement the specific border compliance measures relating to these goods as and when they are required to.

To confirm

1 ^st July, 2022: Sanitary and Phytosanitary (SPS) import controls will commence in GB
1 ^st July – 1 ^st November: Implementation of a three staged implementation programme of further measures relating to the introduction of certification, documentary, identification and physical checks to be made by commodity groups for products of animal origin, animal by-products, plant and plant products

Border Operating Model

Goods Vehicle Movement Service - Go Live GB-EU, EU-GB January 2021

Thu, 18 Nov 2021 10:31:59 GMT

Early preparation for the Goods Vehicle Movement Service (GVMS) is essential, and time is running out if you want to be up and running for 1 ^st January 2022. Businesses will need time to study and understand the new system, and issues will arise if businesses don’t involve hauliers and drivers in the process.

All those involved with cross-border movements between Great Britain and the European Union through specific RORO ports will be required to use the Goods Vehicle Movement Service (GVMS) from 1 ^st January, 2022. GVMS also applies to EU-GB movements and it also applies to Eurotunnel.

The GVMS has been in use for movements between Great Britain and Northern Ireland since 1 ^st January 2021. The service will also apply to cross-border movements through RORO ports between the EU and GB from 1 ^st January 2022.

The GVMS is an online system and registration is fairly straightforward. However, in order to register for the service, you will need a Government Gateway ID and a GB EORI. Within two hours of application your GVMS registration should be confirmed as live.

HMRC has published a number YouTube tutorial webinars, and our own Bernard O’Connor has published guidance on the Strong and Herd Website.

HMRC is urging those involved with cross-border trade activity through RORO ports to register for the new service as soon as possible, and to be prepared for the changes due at the border on 1 ^st January 2022 when GB border easements for imports are removed [1]

It is important to note that businesses will not be able to move goods between GB and the EU through RORO ports or Eurotunnel without the vital Goods Movement Reference (GMR) that is generated by the GVMS. This reference is the vital key, held by the driver making the crossing, which unlocks access to the crossing method, whether it is a RORO port or Eurotunnel.

The GVMS GMR links the GB customs declaration to the truck moving the goods and to the actual goods in it.

Important note to Non-UK based hauliers.

Non-UK hauliers must register to use this service, and in order to register, hauliers must have a GB EORI.

Early preparation for the GVMS is essential, and time is running out if you want to be up and running for 1 ^st January 2022. Businesses will need time to study and understand the new system, and issues will arise if businesses don’t involve hauliers and drivers in the process.

Remember, the driver must have the Goods Movement Reference to be allowed to board the ferry.

From issuing instructions to the forwarder, to collating all compliance data for audit may prove a challenge for GB traders going forward. There has always been a knack to it, and keeping up with everything may prove challenging at first as new processes kick in.

HMRC appears confident that the new service, when implemented, will work smoothly and the machinations that support cross-border goods movements will be well-oiled and Good to Go.

[1] Special arrangements remain in place for some controlled goods. See our Customs Guidance pages for updates to DEFRA and IPAFFS requirements.

The HMRC "Leaflets for Hauliers" are available here in both on-line and printable versions.

The GVMS Registration page is here.

EU-UK TCA Supplier Declaration - Statement from Managing Partner Sandra Strong

Wed, 17 Nov 2021 10:50:34 GMT

Since 1 ^st January 2020, companies in the UK and EU have been trading under the EU-UK Trade Cooperation Agreement (TCA), and there has been a grace period for companies exporting under preference from needing to hold supplier declarations before making the exporter origin statement to enable their customers to claim a zero duty at import. It’s so easy to misunderstand this grace period as terminology within FTAs can be confusing. A supplier declaration is not used to claim preference at import.

If you do not make the goods you export, you cannot know whether they qualify or not; you haven’t made them so don’t have any product, material or value information on the process done to the goods. That is why a declaration from the supplier is needed. So, the grace period was for an exporter (UK or EU) who export goods they don’t make which legally requires a supplier declaration to confirm goods qualify under the TCA before the UK/EU exporter makes the exporter preference origin statement on their invoices with the shipment or on an annual origin statement sent to their customers. They are needed for all relevant exports under free trade agreement and under the EU-UK TCA you must have these declarations from 1-1-2022.

If you fail to obtain a supplier declaration to confirm your export statements that the goods you have exported meet the qualification rules for preferential trade between the EU and the UK, you must notify your overseas customers as they will have to pay import duty from 1-1-2022 and may receive a claim for duty on goods you supplied in 2021. And if you imported from a distributor, for example, who doesn’t make the goods, and you’ve used their exporter origin statement to claim zero duty at import, this cannot continue into 2022 without them confirming they hold supplier declarations that the goods they are selling meet the rules of preference origin. Sadly, importers may also be at risk of duty demands if the exporter hasn’t sorted this out correctly.

The easement did not apply to importers claiming preference on arrival needing to have a declaration made by the exporter. If you have claimed preference on arrival from the EU into UK (or into EU from UK) you needed an exporter origin statement at the time of claiming import duty preference either, as an individual statement accompanying the goods, an annual exporter origin statement. If you claimed preference without these exporter origin statements, you will be assumed to have used "importers knowledge" which means you hold the evidence that the goods qualify for preference and do not need anything from an exporter or supplier to support that claim.

EU - UK TCA Supplier Declarations - Live Clinic with Managing Partner Sandra Strong

Now the UK is developing new independent trade arrangements understanding the difference between a supplier declarations and an exporter statement of origin will be vital.

What is Inward Processing & is it right for your business?

Tue, 16 Nov 2021 13:56:27 GMT

What is Inward Processing & is it right for your business? Calvin Sherratt MIEx, CMILT, IQ AEO, AET explains....

Inward Processing Relief (IP) can save you a lot of money but can also prove quite a headache! Whether you already operate IP, or would just like to know more, this practical workshop unravels the mysteries.

Inward Processing Relief - IP Workshop

Focus on Food: Import Procedures

Tue, 16 Nov 2021 12:01:05 GMT

Thanks to Andy Baker for this expert overview of our new Focus on Food: Import Procedures course!

This brand-new course has been introduced to meet growing demand for specialist training in the import processes that apply to importing Food and drink products including POAO , Plant health products and composite goods. It explains the regulatory bodies involved, what they do and the rules behind them. It explains when health certificates or phytosanitary certificates are needed and the pre notification process on IPAFFS, and how to understand your obligations as a composite food product importer. It covers the changes to the rules and regulations under the phased approach scheme from Jan 2022 and the changes in July 2022 and what you need to know for your goods to be able to clear customs.

Focus on Food: Import Procedures

A Spotlight on: CDS The Customs Declaration Service

Mon, 15 Nov 2021 16:24:34 GMT

CDS has Arrived.... Next September the HMRC CHIEF import service will be switched off and the only means of declaring goods to Customs in the United Kingdom will be via the new Customs Declaration Service. The CHIEF export service will be switched off six months later at the end of March 2023.

CDS is a replacement for the legacy CHIEF system that has been running in the UK since 1992. CHIEF currently processes around three hundred million customs entries per year.

As with any new system, especially a sophisticated IT system, the delivery will be challenging. And we should know – both Bernard O'Connor and Sarah Adams-Greener were part of the HMRC team that delivered the National Export System back in 2003, and that certainly was a challenging time for HMRC.

CDS is Live
CDS is live in Northern Ireland and has been for imports since 1 January 2021. Here in Great Britain there is already small number of importers completing import customs entries.

CDS Test Service is also Live
In addition to the live service, CDS has a test service which is available to traders who want to train on CDS in advance of live date. This Trader Dress Rehearsal service or TDR can only be accessed through CDS compliant software, so you may wish to speak to your software developer.

CDS is live for S&H
At Strong & Herd we have been completing CDS export and import declarations on the TDR service for some time now and we are starting to get used to the new way of making customs entries. Oh, and yes, we have found it challenging! But we have also found it to be a straightforward and user-friendly system, at least through the software that we are using.

CDS Registration
To access CDS, whether you want to complete Customs declarations, or you just want to download reports from the CDS Portal, you will need a Government Gateway account.

Most VAT registered traders already have a Government Gateway account to file their VAT returns, so adding CDS shouldn't be too difficult. But just make sure you still have those credentials, and of course don’t forget that mobile phone number you used for the 2-stage identification process. Speak to whoever holds the account in your organisation and leave plenty of time to register. Just in case.

Details of the CDS registration process can be found here .

CDS for the Exporter
As an exporter, you will want to know what declarations have been made on your behalf. Currently you can do this by purchasing the monthly CHIEF MSS Reports which provide full details of what has been declared on your behalf using your EORI, CDS doesn’t work in this way and if you wish to obtain this information from CDS, you will need to register on the CDS portal.

CDS For the Importer
As well as obtaining your declaration information, importers will need access to download monthly Deferment Account statements and PVA statements. So again, you will need to register on the CDS portal.

CDS for the Customs Broker
The freight forwarding community will really feel the changes. They are the ones that complete the customs declarations. Although to be fair, those exporters and importers who complete their own declarations will be affected in the same way.

As a CDS declarant (or representative to use the official language), as well as CDS credentials and a Government Gateway account, you will also need CDS compliant software. If you already use a software developer, check that they are ready for CDS.

A list of software developers can be found on the Association of Freight Software Suppliers (AFSS) website at The Association of Freight Software Suppliers - AFSS .

These are the current members. Go to the website and click on one of the links to connect with the AFSS member.

HMRC has also published a list of software supplier that can be accessed here:
Software developers providing customs declaration software - GOV.UK (www.go v.uk)

CDS Declarations
CDS is based around eight groups of Data Elements. There are no "SAD Boxes" and each Data Element Group covers a particular aspect of the customs declaration.

In our CDS export and import training courses we use a traffic light system to indicate the level of complexity of a particular data element. This allows us to spend more time on the RED and AMBER data elements and less time on the GREEN ones. Here are the data element groups:

Don't be too disheartened by the considerable number of data elements. Many of them only apply to certain scenarios. In any event, we can guide you through this myriad of data fields on a CDS declaration and make life a lot easier for you.

CDS and CHIEF
There is no easy correlation between CHIEF SAD Boxes and CDS Data Elements so we aren't going to attempt to make any comparison. At S&H we are treating CDS as a completely new system and we are approaching it from that perspective. We have studiously avoided any comparisons to CHIEF in our training as we believe that it is both unhelpful and distracting to the learner.

CDS Paper Entries
CDS is electronic and it was never intended to produce paper documents. However, following consultation between the software developers and HMRC an entry format was agreed and, whichever software developer you use, the paper declaration should look the same. However, it is important to understand that these documents have no legal status and have been produced to assist the trade.

What to watch out for in CDS
Unlike the old CHIEF system, the new Customs Declaration Service is (our choice of words) "data-hungry". It requires a lot more thought on the part of the declarant and nothing can be assumed with CDS. Here's an example we use in our training that covers licence measures.

You cannot use LIC99 to say that your goods do not require a licence. You must check and understand the licence measure attached to your commodity code in the UK Trade Tariff and then take steps to either declare the licence (if you need one) or explain the reason why a licence isn’t required. Here's a clip from CDS software.

New to CDS
The Customs Declaration Service introduces new data elements that were not previously required on a CHIEF declaration.

Valuation Methods haven't changed but under Valuation Method 1, you must answer four questions about your import and how you arrived at the Customs Value.

These are the questions.

Is there a price influence as a result of a Party Relationship between the buyer and seller?
Has the buyer placed any restrictions as to the disposal or use of the goods?
Is the sale or price subject to some condition or consideration?
Is the sale subject to an arrangement under which part of the proceeds of any subsequent resale, disposal or use accrues directly or indirectly to the seller?

Here's a slide on the subject from our training course.

Note that the questions cannot be answered by a Customs Broker without first obtaining the information from the importer.

Where do we go from here?
CDS is coming in next year for imports and S&H is preparing the way for existing and new clients.

CDS Training
We are increasing our public training and also our bespoke courses as we head towards the start of CDS next year. November sees the start of our increased support for CDS. Keep an eye on our website for further information.

CDS Helpline
To coincide with November's CDS training activities we are launching a CDS Helpline to run alongside our OneCall subscription service. This is a dedicated priority email service which you can use to send your CDS specific questions. Further information is available on our website.

CDS Clinics
To compliment both our training and our helpline service, we will be holding monthly CDS events where, for 45 minutes, our technical advisors will discuss one or two particular aspects of CDS and then, for a further 45 minutes, attendees will be invited to ask questions about the service and any issues they may have.

The CDS clinics can be booked on-line via our website.

CDS Publicity Material

HMRC has published four factsheets on CDS which you can download from gov.uk. the link is here:
Customs Declaration Service communication pack - GOV.UK (www.gov.uk)

CDS Regulations
Tariff Volume 3 for CDS
UK Trade Tariff: volume 3 for CDS - GOV.UK (www.gov.uk)
Contains the export and import completion rules and the data element codes

CDS Guidance
About The Customs Declaration Service
Customs Declaration Service - GOV.UK (www.gov.uk)
Contains various links to guidance regarding CDS

Register for CDS
Get access to the Customs Declaration Service - GOV.UK (www.gov.uk)
Provides details of to get access to CDS

CDS Service Availability and Issues
Customs Declaration Service: service availability and issues - GOV.UK (www.gov.uk)
We call this the "log-in" page because this is where you can sign in to:

Useful links in relation to this months' Spotlight On....

CDS Clinics - Customs Procedure Codes
Join Partner Bernard O'Connor & CDS Specialist Emmanuel Gianquitto they lead our first CDS Clinic, they will be explaining the changes in CPC's with working examples to help you prepare for the changes ahead.

CDS Public Training Courses with Strong & Herd

CDS Exports: The Customs Declaration Service - Strong & Herd LLP
Our CDS export courses always take place on Mondays:
Monday 13 December 2021
Monday 17 January 2022
Monday 21 February 2022

CDS Imports: The Customs Declarations Service - Strong & Herd LLP
Our CDS import courses always take place on Fridays:
Friday 10 December 2021
Friday 14 January 2022

Trade Resources
Glossary of Terms
Industry Insights

Cost effective specialist training, Business Support & Hepline

Safety & Security Declarations

Sun, 14 Nov 2021 14:30:25 GMT

Safety & Security Declarations, also known as Exit Summary Declarations (EXS), are now mandatory for all exports from the UK when a NES export declaration isn't required.

S&S declarations are the responsibility of the carrier and are an essential piece of the declaration process.

UK Export customs declarations made under the National Export System (NES) and submitted to HMRC are in fact combined Customs and Safety & Security Declarations. This means that when a NES export declaration is submitted to HMRC, an Exit Summary Declaration (EXS) is made at the same time, thus eliminating the need to provide a separate declaration. Nothing changes here and this system of combined declarations will continue.

However, there are certain circumstance where a NES export declaration isn't applicable. These include:

Empty pallets, empty containers and/or empty trailers being moved under a transport contract **
Goods which remain in storage for more than 14 days
Goods which have remained in temporary storage for less than 14 days, but the import Entry Summary Declaration (ENS) details are unknown, or the destination consignee has changed
Goods being moved under Transit using a Transit Accompanying Document (TAD)

For these movements, for which an EXS hasn't previously been required (under HMRC's temporary waiver), from 1 October 2021 an Exit Summary Declaration (EXS) will now be required.

Full details can be found here:

Find out when to make an exit summary declaration - GOV.UK

** A transport contract (a contract of carriage), is an agreement between the carrier (shipping line, airline, ferry operator) and the shipper or passenger, setting out each party’s duties and rights.

NCTS update November 2021. Email channel closing 28th February 2021

Wed, 10 Nov 2021 13:26:32 GMT

Users of the NCTS have been urged to move to the new XML API channel in good time, before the channel scheduled shut down date of 30 ^th November, 2021.

HMRC have updated the NCTS newsletters (link below) after announcing the next phase of closing NCTS data submission methods

Users of the NCTS have been urged to move to the new XML API channel in good time, before the channel scheduled shut down date of 30 ^th November, 2021.

There has been some concern that those using the legacy channel were not perceived as moving across quickly enough.

HMRC have now also confirmed that the NCTS email channel will close on 28 ^th February, 2022. There will be no replacement for the email method of linking to NCTS, and HMRC urge those affected to move to another method of communications, again, in good time.

For those not yet registered to use NCTS and needing to use the transit system, HMRC request that sufficient time is allowed for the registration process.

Alternatively - there is a free on-line portal available - link below

Link to the updated Newsletter

https://www.gov.uk/government/publications/community-common-transit-and-tir-newsletters/newsletter-11-november-2021

Link to the Transit Declarations webpage, with Portal information

https://www.gov.uk/guidance/submit-union-transit-declarations-through-ncts

Mini VAT Series Part 1 - What is VAT and why is it important?

Wed, 10 Nov 2021 13:07:03 GMT

VAT is a tax that is chargeable on all goods arriving into GB, whether from the EU or other countries. Controlling and administering your responsibilities to HM Revenue & Customs (HMRC) to ensure the correct amount of VAT is paid and reclaimed under permitted rules is vitally important.

VAT has been due at import into the UK since 1 ^st April 1973. Based on the rate applicable to the goods under domestic legislation this could be the standard rate of 20%, reduced rates of 8% or similar for energy articles or antiques or zero, for products such as foods stuffs, books and children’s clothes. The system ceased to apply to arrivals from the European Union in 1993, when the Customs Union was formed, and VAT was handled using the Intrastat acquisition VAT accounting methods. Now GB (England, Scotland and Wales) is outside the Customs Union, VAT has returned as a chargeable tax on goods due at the time of arrival.

Why is it important?

As we say in the introduction, VAT is a tax that is chargeable on all goods arriving into GB, whether from the EU or other countries. Controlling and administering your responsibilities to HM Revenue & Customs (HMRC) to ensure the correct amount of VAT is paid and reclaimed under permitted rules is vitally important. Also, we now have two new import VAT procedures. One is permanent and applies to arrives from any country in the world: the right for UK VAT Registered business to use Postponed Import VAT accounting (PVA). The other is temporary and applies to goods arriving from the EU only and is known as the delayed declaration procedure. Both impact on the way you manage VAT as a business.

But what is it?

VAT is an indirect tax introduced into the UK on 1 ^st April 1973 and administered by HMRC on behalf of the UK Treasury. Everyone pays VAT on services and goods delivered, unless they are VAT exempt, and for consumers it increased the cost price. This is also the case if a business is not VAT registered; they must pay VAT to VAT registered suppliers and HMRC for imported goods but are unable to offset or reclaim the tax paid. When a business is VAT registered then there is a system for offsetting the VAT paid to suppliers (including import VAT) against VAT collected on sales. VAT paid out is known as input VAT, VAT collected on behalf of the government is known as output VAT. Therefore, import VAT is created as input VAT. A key point though, a business cannot offset/reclaim input VAT unless they are the owner of the goods, intend to own the goods or are using it for an acceptable business purpose. In the UK an acceptable business purpose does not apply to goods imported temporarily, eg for repair, loan, exhibition or demonstration. To avoid outlaying VAT on temporary imports you must use a customs special procedure such as Temporary Admission or Inward Processing, discussed in our recent How to … Manage Temporary Movements.

How does it work?

Import VAT is due at the rate applicable to the goods at the time of arrival, or, if they are entered into a customs special procedure first that suspended the payment of VAT (and often duty), the VAT rate applicable when the goods are declared to home use.

The main ways to cover the payment of import VAT are:

1. Use a deferment account, so the VAT calculated by the customs computer (CHIEF/CDS) at the time of import is charged to the importer’s deferment account often along with import duty. The import VAT is confirmed to the importer, using their GB VAT Registration number, on the C79 VAT Certificate. Payment of VAT is taken from the deferment account on the 15 ^th day of the month after import.

2. Use a deferment account or flexible accounting system (FAS) held by the freight company, so the VAT is still calculated by the customs computer (CHIEF/CDS) at the time of import. If a deferment account is used, the payment of VAT is taken from the forwarder’s deferment account on the 15 ^th day of the month after import. If FAS is used, the VAT (and duty) must be deposited into the FAS account and paid to customs in advance of the goods being cleared. The freight agent issues an invoice to collect the full amount of duty/VAT due from the importer. The importer must wait until receiving confirmation of the VAT amount via the C79 VAT Certificate before declaring it as input VAT on the VAT return.

3. Postponed VAT Accounting (PVA) is used. Import duty is not covered by this system. The customs computer (CHIEF/CDS) calculate the amount of VAT due but does not collect it. The computer generates a different VAT Certificate called the Monthly Postponed Import VAT Certificate (MPIV) which the importer must download from the Government Gateway. Only when the import VAT is shown on the MPIV can it be declared as input VAT.

4. A temporary measure running from 1 ^st January 2021 until 31 ^st December 2021 – the delayed declaration procedure for arrivals from the EU only. This is optional. If goods arrival into the UK from the EU, and there is an importing party with a GB EORI then the goods can be delivered without a customs declaration being made, though the importer must record all relevant information in their records of the arrival date, type of goods, value, etc. For import duty purposes the full declaration must be made within 175 days from the date of arrival. For import VAT purposes the company must self-calculate the amount of VAT applicable on the arrival and declare it as input VAT on the VAT return related to the month of physical arrival. Not making this VAT declaration at the right time is a non-compliance.

https://www.gov.uk/guidance/uk-strategic-export-control-lists-the-consolidated-list-of-strategic-military-and-dual-use-items

Trade compliance challenges of supplying a ship drilling platform – accurate tariff classification is the key

Wed, 10 Nov 2021 10:53:07 GMT

Any company involved in the international movement of goods to supply a project will be aware of the complex activity this involves.

Such complex supply will need input from a trade compliance specialist in the initial stages, even as early as bid/no bid as it is important to determine the nature of the goods supply, as well as the compliance data needed to support regulatory audit.

It is important to understand the definition of goods from a customs perspective, another specialist activity. Understanding the basic rules will help determine whether your goods will be subject to duty or other controls.

Definition of the higher-level goods against the tariff at bid/no bid stage is a good place to start. It will help decide whether any duty relief schemes are available to negate any duty payable. This may influence:

1. How you decide to move your goods,

2. What data control goods tracking methods could be needed to support compliance to any HMRC duty suspension authorisation

3. Whether an alternative supply route may lessen duty exposure

Having the right advice from trade compliance at the on-set is vital and should be woven into the procurement and supply processes from the beginning if it is to be successful.

A pragmatic approach to trade compliance will have positive impact on the costs. Good trade compliance advice can save a project a lot of money.

What if the project a UK company supports is a ship drilling platform needing continuous supply from and through the UK as the ship moves from one drilling site to another across the globe?

The first trade compliance consideration is how you manage and track the supply for two purposes

1. Identifying duty saving methods for goods supplied to or through the UK. Are goods subject to a free trade agreement or preference origin? Could Inward Processing or Customs Warehousing be successfully employed and cost effective?

2. The oil and gas industries are heavily regulated. What measures are needed to ensure regulatory compliance for global supply?

Identifying supplied goods against the tariff is the key from the very beginning.

Top Tips:

• Identify the relevant goods tariff at the procurement stage.

• Identify supply against the UK Trade Tariff.

o Make it a contractual requirement for the tariff code to be identified on the supply documents.

• Make it part of the procurement process to check the applicable tariff before placing the goods order.

o Refer to your trade compliance officer for guidance on duty management at this stage. This may influence the terms and conditions of the purchase order, especially if an FTA or Preference rate can be claimed.

o Regulations require appropriate statements on invoices and supporting compliance paperwork on file for audit

• Make sure there is a log of import and export activity, and that this is log is available for regular audit.

• Make it a contractual obligation on the party you have contracted to make the customs entries that they check and accurately record the tariff.

• Implement a process for regular checks on compliance data provided by all parties involved in the supply chain

Controlled Goods Supply

When involved in the supply chain to a regulated industry it is important to be aware that UK export controls may apply. Identifying these controls can be difficult when faced with such a diverse range of goods from toilet paper, to chemicals, to rig maintenance spares.

The movement of controlled goods requires an export licence when the export is either directly from or through the UK or international delivery is organised by a UK company. The UK licencing authority is the Department for International Trade and licence application is made through their SPIRE system.

Underwater cameras and optical equipment with deep-dive capability are controlled if that capability is to a certain depth. Seismic and surveying equipment can also be captured for licence purposes. It is important to have some awareness of the controls and how to check for them.

For Dual Use goods the Trade Tariff will give pointers in the Chapter Notes for the given code.

Top tips:

1. Make sure that consideration is given in the early stages of the project that some goods could be subject to controls and identify those goods at high level from the onset. Controls could apply to the ultimate destination of supply, or goods passing through a restricted or embargoed destination.

a. Always check whether sanctions or an embargo could restrict goods supply. Gov.UK websites will give direction. This should be part of your due diligence process.

2. Communicate the possible controls on higher-level items to those involved with the supply.

3. Implement a process for checking dual use controls.

a. Ask the manufacturer rather than the supplier.

b. Identify personnel of ‘competent authority’ for training in use of the Dual Use controls lists. Engineering staff are best placed to interrogate the Dual Use Controls list. If your supplier is not the manufacturer, your own engineering staff could be best placed to advise.

4. Introduce a classification form as part of the purchase order procedure. Make the completion of this document a contractual requirement, even if it is confirmation that no controls apply.

a. Due diligence suggests that the information supplied may not be accurate. Use common sense.

5. Be prepared to capture other country controls. A drill imported from the US will be subject to US controls. US controls are another specialism

6. Keep records. Always file the supporting information for compliance purposes

Whatever the company approach is for managing the supply chain, communication to all participants is key. Trade compliance will affect all parties involved in the procurement and international supply of goods.

Awareness of the trade tariff is a sound start to the effective management of a compliant supply chain

Trade Tariff link

https://www.gov.uk/trade-tariff

Strategic export controls lists – contains the Dual Use Controls lists

UK Open General Export Licence Oil and Gas Exploration Dual Use Items

https://www.gov.uk/government/publications/open-general-export-licence-oil-and-gas-exploration-dual-use-items

The Dual-Use Exporter: Understanding Dual-Use Export Controls

Tariff Classification Explained

The UK border: Post UK-EU transition period

Tue, 09 Nov 2021 08:40:21 GMT

In July 2021, S&H were asked to represent BExA (British Exporters Association) assisting the National Audit Office in the collation of data to support the publication of a NAO report on the Government’s handling of the EU Exit Post Transition Period.

There were two questions for which S&H submitted data:

How have businesses found the past few months since the end of Transition?
What is business preparation looking like for the end of the year?

The resulting report has been released from the NAO this month and is available to read here: https://www.nao.org.uk/wp-content/uploads/2021/11/The-UK-border-Post-UK-EU-transition-period.pdf

Pre-lodging declarations in CHIEF: The importance of manually ‘arriving’ the goods at a Roll on Roll off port at Export

Thu, 04 Nov 2021 13:41:23 GMT

There is a technical requirement for traders exporting goods through non-inventory linked ports, to technically ‘arrive’ the goods at a port where electronic methods are not yet in place to manage the export.

Until the IT is in place to move exports through RORO ports seamlessly, it will be important to ‘manage’ the movement, by ‘arriving’ the goods manually should non-compliance be avoided.

If the export is not declared as ‘arrived’ there is a risk that the pre-lodged declaration will be deleted, and the trader will have no evidence of a compliant declaration having been made.

HMRC recognised this as an issue in May 2021 and wrote to some affected traders to draw attention to the issue. Text from the document sent to traders is below, which sets out the action to be taken.

Text of HMRC Letter to Traders, May 2021

"We are writing to tell you that ahead of electronic systems being in place to manage declarations at the border, when you move goods through roll-on roll-off ports and other listed locations, you need to manually submit your export declarations as ‘arrived’.

When you submitted your export declarations in January and February 2021, we’ve noticed that you didn’t follow the correct process. As a result, your goods are not shown as ‘arrived’ in either the Customs Handling of Import and Export Freight (CHIEF) system, or the Customs Declaration System (CDS).

The reason you need to mark your goods as ‘arrived’, is to finalise the declaration process before your goods reach border locations where customs controls are being staged in. If the declaration isn’t ‘arrived’, the Customs Handling of Import and Export Freight (CHIEF) system, or the Customs Declarations System (CDS), will not recognise that your goods have left the country. It also means that the legal requirements for exporting the goods have not been met."

CDS Imports: The Customs Declaration Service

Temporary Imports and Exports Explained

Beginners Guide to Customs Procedures

Advanced Guide to Import, Export & Customs Procedures

Import declarations of EU high-priority plants and plant products

Thu, 04 Nov 2021 12:55:20 GMT

When importing high-priority plants and plant products from the EU a trader will need to submit a pre-notification which will include the plant category and its tariff classification.

This tariff classification will determine the level of import charges to be collected by the UK authorities. It is therefore very important to get it right.

High-priority plant and plant product goods can be particularly challenging to classify and highlights the importance of understanding and interpreting the nature of the goods for import in the terms required by the UK Global Tariff.

The starting point for classification of plants and plant products is to understand the initial Category of material the goods fall into in the first instance.

Example:

For plants intended to be planted the category is ‘propagating’, whereas ‘finished plants’ are those intended for the final user.

There is further guidance available in a scenario table published on the Plant Health Portal (link below) under Finished plants intended for the final user.

Understanding product definition in classification terms against the tariff is vital for UK businesses involved in international trade.

Link to the Plant Health Portal

https://planthealthportal.defra.gov.uk/eu-exit-guidance/imports/guidance-on-how-fees-are-applied?utm_source=Defra&utm_campaign=7d20f866e4-EMAIL_CAMPAIGN_2021_10_22_04_13&utm_medium=email&utm_term=0_067d4a0b11-7d20f866e4-388394003

Further useful information

Regulated and notifiable high-priority goods

The high-priority goods list include:

• all plants for planting

• ware potatoes

• some seed for sowing and other plant or forest reproductive material

• some wood and wood products

• used agricultural or forestry machinery

If you import high-priority goods you need to:

1. Register as a place of destination or use a place of destination that is already registered (this is where any physical and identity checks will take place).

2. Get a phytosanitary certificate from your EU exporter.

3. Register on the IT system (PEACH) as an importer.

4. Use PEACH to pre-notify your goods for import in England, Scotland or Wales.

5. Comply with documentary, identity and physical checks if needed.

6. Pay fees for plant health checks from 1 June 2021.

7. Meet ISPM 15 international standards for any wood packaging material you use.

From 1 July 2022 all physical and identity checks for high-priority goods will take place at Border Control Posts (BCP) in Great Britain instead of at a place of destination.

Focus on Food: Import Procedures

Strong & Herd CDS Community

niamho@strongandherd.co.uk (Niamh O'Connor) — Thu, 04 Nov 2021 11:06:00 GMT

Traders have trusted Strong & Herd for 26 years in all matters related to customs and international trade. We have been involved in the system testing of CDS and already use it for customs entries alongside supporting companies who are using CDS today. The CDS Community incorporates the OneCall® Helpline support services and benefits while introducing a faster response helpline email address for when your customs entries don’t go through first time.

What is CDS? The Customs Declaration Service (CDS) is a new system introduced by HMRC to replace CHIEF for import and export customs declarations. From the overall logic of the system to the codes used, CDS is completely different to CHIEF meaning everyone will have to understand the new information and rules for when CDS is fully operational whether you do the customs entries yourself or use an intermediary to do them. CDS is being used now for GB-Northern Ireland customs declarations (since 1 January 2021) and will fully replace CHIEF for imports by 30 ^th September 2022 and exports by 31 ^st March 2023, though many logistics and software companies will be migrating over to CDS sooner than the deadline dates.

Why a Community? Traders have trusted Strong & Herd for 26 years in all matters related to customs and international trade. We have been involved in the system testing of CDS and already use it for customs entries alongside supporting companies who are using CDS today. We want to share our understanding of the new system, prepare businesses for the new information that will be required and, as a community encourage members to learn from the issues and challenges faced by other CDS users. HMRC have released a new Volume 3 of the Customs Tariff covering the information and codes needed to make successful CDS customs entries and it is significantly different from what you may be used to. Our aim is to educate and share our understanding which is why a dedicated CDS Community is important.

How will I benefit from joining the S&H CDS Community? The CDS Community incorporates the OneCall® Helpline support services and benefits while introducing a faster response helpline email address for when your customs entries don’t go through first time. In addition, there will be dedicated CDS Briefings and Clinics to enhance understanding for everyone involved in exporting and importing goods, free places on CDS Virtual Training sessions, one-to-one support sessions of up to 1 hour and unlimited access to our CDS members’ only resource area.

S&H CDS Community subscriptions - Dedicated CDS Support from the Strong & Herd team

CDS COMMUNITY level 1 - The Level One annual subscription service connects you to our CDS technical team for CDS enquiries as well as all your other import, export, and international trade questions. Standard questions will be addressed within a maximum of 24 hours, as per our OneCall® helpline service, but specific CDS questions will be set as Priority 1 and will be addressed immediately (during working hours). Via the CDS Community we will guide and support you and your business to the correct places for information, reinforce your understanding of procedures and be there if/when things don’t go right.

Covers 8 hours of email helpline support for CDS and other customs and trade questions
Ability to call off two 60 minute sessions with a CDS specialist one-to-one
2 free places on CDS Virtual Learning training session
Invitation to join our CDS dedicated briefings, as well as the fortnightly UK Customs & Trade Briefings
Discounts on all other S&H public training sessions, in-line with OneCall® membership
Regular information emails such as the Did You Know updates and specific CDS Updates
Access to S&H Members’ Area of the website plus the CDS Community Area where specific CDS resources along with the recordings of the CDS briefings will be available
Places on our dedicated CDS Clinics and access to the recording for a discounted price of £25.00 + VAT

CDS COMMUNITY Level 2 - A 12-month subscription to Level 2 membership of the CDS Community works in a similar way to Level 1 but provides additional time, at a reduced hourly rate, and free access to attend the CDS Clinics. Membership connects you to our CDS technical team for CDS enquiries as well as all your other import, export, and international trade questions. Standard questions will be addressed within a maximum of 24 hours, as per out OneCall® helpline service, but specific CDS questions will be set as Priority 1 and will be addressed immediately (during working hours). Via the CDS Community we will guide and support you and your business to the correct places for information, reinforce your understanding of procedures and be there if/when things don’t go right.

CDS Community Level 2 Additional Benefits

Covers 24 hours of email helpline support for CDS and other customs and trade questions
Ability to call off four 60 minute sessions with a CDS specialist one-to-one
4 free places on CDS Virtual Learning training session
Free places on our CDS Community Clinics and access to the recordings via the CDS Community Area of our website

Also includes:

Invitation to join our CDS dedicated Briefings, as well as the UK Customs & Trade Briefings
Discounts on all other S&H public training sessions, in-line with OneCall® membership
Regular information emails such as the Did You Know updates and specific CDS Updates
Access to S&H Members’ Area of the website plus the CDS Community Area where specific CDS guidance along with the recordings of the CDS clinics and CDS briefings will be available

What’s included in the package?

CDS Helpline Service - Priority Response

Have the Strong & Herd expert team available on tap to answer your CDS queries. Whether you need assistance with a declaration, you are unsure of how to read the CDS Tariff or you are stuck with one of the new document codes, our team is ready to assist. Send an email to our dedicated address, and your query will be automatically assigned to an available expert. CDS enquiries are automatically given high priority. You can also use the helpline for none CDS related import, export, customs, and international trade questions as the CDS community incorporates all the OneCall® services which means you don’t have to subscribe to a separate helpline service. Strong & Herd will support all your international trade and customs requirements within the CDS Community.

CDS Specialist One-to-Ones
At S&H our aim is to share knowledge and know-how. As a member of our CDS Community, you will be able to access specialist one-to-ones, where we will answer your questions on specific scenarios. If you prefer, you can share your screen and we will assist you with live declarations on the system you are using, be that TSS, your own software or the HMRC CDS Export portal.

CDS Training
Whether you are an experienced declarant or totally new to this sector, you will find an appropriate course for you in our catalogue. You can start with our introduction to import and export courses, attend the CDS modules and finally complement your knowledge with specific modules on declaring complex commodities. Choose which modules are most relevant to you and use the free places included in your CDS Community subscription. CDS Community members also receive the OneCall® member discount on other import, export, and international trade public training courses.

CDS Briefings
You will be invited to join regular CDS briefings, as well as our normal UK Customs & Trade Briefings, where we share the latest news on CDS with the members of our community. Questions and comments during the sessions are encouraged and we will be bringing information on the developments that may affect you the most. Briefings will be recorded and shared with all CDS Community members.

CDS Clinics
Available free to CDS Community Level 2 Members. There will be regular clinics, during which our experts will concentrate on different topics, with the aim to provide an opportunity to learn and understand the information needed to make customs declaration via CDS, to support you as a trader on understanding the new information required by the customs brokers and intermediaries and how to check the new customs entry documents and the new on-line reports expected to replace the MSS Reports. Bring real case scenarios or join to learn from other members’ experiences. Make sure you get the most out of your subscription. CDS Community Level 1 Members can join the clinics at a discounted fee of £25.00 per session. All sessions will be recorded and available in our CDS Community area of the website.aragraph

That was the news: October 2021

niamho@strongandherd.co.uk (Niamh O'Connor) — Thu, 04 Nov 2021 10:32:40 GMT

What's been in the News? What have we been up to? What have Strong & Herd (S&H) and our clients been talking about? Here is a quick update - November is CDS month so keep an eye out for a special Spotlight on CDS later in the month! For all the latest news & updates, check out our Industry Insights page and don't forget to follow us on LinkedIn !

S&H News: Autumn is finally upon us and with the change in season also comes a change in regulations. We couldn't let October pass without the mention of Halloween and our Managing Partner, Sandra Strong has written a selection of S&H spooky stories, Tales from the Undergrowth well worth a read!

October also saw the return of our Face to Face training....

"It’s fantastic to be able to return to Face to Face training to complement our Virtual Learning training sessions. With Face to Face, each delegate feels fully involved and gets to know their tutor(s) and feel confident of the tutors’ skills and support. We are looking forward to re-introducing some practical workshop sessions, where delegates can interact and share experiences; haven’t we all missed the networking opportunities?! Mixing fun with learning fits naturally in a safe Face to Face environment." Sandra Strong, Managing Partner

In October 2021:

Temporary Admission and making use of Returned Goods Relief
There are over 50 Customs Procedure Codes that allow import to Temporary Admission. Using the correct code takes skill, appropriate awareness and training. It is so very important to get it right and remember, it isn’t whether an HMRC audit will happen but WHEN it will happen.

Best practice is to be compliant from the get-go! READ MORE

Preparing for NCTS Downtime
The Convention on Common Transit has mandated provision for an outage to the digital system. Generally, hauliers are more likely to wait at a port until NCTS revives and their journeys are able to continue. However, with changes due to be implemented with the NCTS system and the removal of the XML channel, it may be practical to review what to do to prepare for any stop to the digital mechanism, should movement need to move to manual.

HMRC advise UK businesses to consider other processes in the event of prolonged NCTS outage.
READ MORE

2021 Budget and the Customs Declaration Service (CDS)
On 27th October, the Chancellor of the Exchequer presented his Autumn Budget and Spending Review to Parliament. READ MORE

After nearly 2 years of Virtual Learning - We are cautiously making the return to Face to Face training.

All of our Face to Face training courses will be delivered in a Covid-19 secure training room. The safety of our trainers and clients is of the utmost importance to us. Our Face to Face courses will have a maximum of 8 delegates and each delegate will be seperated by a screen throughout the training session.

International Trade Compliance Manager - F2F This course has become a popular session for anyone involved in looking after International Trade and Customs Compliance in a business.

The Export Course - F2F Covers the main aspects in a practical, clear and comprehensive way that is relevant to today’s exporters.

The Importers Workshop: 2 Day Advanced Guide to Import Procedures - F2F The aim is to increase your understanding of customs rules and to provide clear guidance on the information and documents required in the international supply chain.

In-case you missed it earlier in the month - Spotlight On..... Northern Ireland

With thanks to Sandra Strong, Bernard O'Connor & Gail Leeson for their contributions to this newsletter.

How to.... Move Goods Temporarily (Part Two)

Tue, 02 Nov 2021 15:44:45 GMT

Moving Goods Temporarily - One of the challenges facing businesses is how to be compliant with customs procedures and yet not incur duties and taxes when moving goods internationally on a temporary basis.

Introduction

One of the challenges facing businesses is how to be compliant with customs procedures and yet not incur duties and taxes when moving goods internationally on a temporary basis. In this and the next How to … article we will be looking at the steps to take to manage this part of your business. Part 1 looked at the movement of goods when they will be returned unchanged, so covering goods going to an exhibition, demonstration or for evaluation for example. Here we will review the different procedures available when you move goods for a process, such as repacking or repair.

Why is it important?

Since the UK left the Customs Union of the EU (1-01-2021) the number of temporary movements requiring customs declarations has increased significantly and sadly a lot of companies are not prepared for these changes and have incurred delays, rejected arrivals and/or high customs costs. Temporary movements include the movement of goods for a process, whether the process is a simple one, such as repacking, or to repair or overhaul an item through to the supply of materials and components to an overseas manufacturer. The aim is to legally avoid paying duties and taxes on goods being imported for a process and returned after process. As far as customs authorities are concerned these are new arrivals, unless you have an authorisation and evidence that the goods moved under a customs special procedure that permits the suspension or waiver of duties. Until the end of December 2020, UK shipments to and from the EU didn’t require special customs procedures because of the EU Customs Union permitting free circulation of goods. It’s seems that a lot of businesses are still unsure of what they should be doing instead.

But what is it?

As we discussed in Part 1, customs duties and taxes are used, not only to increase a country’s revenue, but also to control the import of foreign origin goods. The reason the goods are being imported is not taken into consideration unless the importer has an authorisation to use a special procedure. Just saying on your paperwork – “goods sent for repair” – will not magically avoid duties and taxes. It’s all about knowing what your business does internationally, having goods customs controls and managing the declarations made to customs at both export and import.

Internationally, the World Trade Organisation (WTO) requires member countries to have a customs scheme to permit the temporary import and return of goods that have been exported for process in another country without the payment of duties. Within the WTO Revised Kyoto Convention (RKC) this is known as Outward Processing (OP) and Inward Processing (IP) and most countries call it this in their national customs procedures – one exception being the USA, who, though they do have procedures for processing goods it isn’t call OP and IP but relies on using Temporary Import Bonds (TIBs) and Chapter 98 codes. But the principle is the same. A company obtains customs approval, generally in advance of the movement of goods, to send and receive goods for processing. The approval means import customs duties are suspended (when goods imported to process) or waived (when goods are returned after process). Let’s review how this works in practice.

How does it work?

We need to divide the movement of goods for process into two parts:

1. The sender of the goods for process (Outward Processing)

The sender (exporter) needs approval to export goods to be processed in another country (Outward Processing) if they want to bring the processed item back into the country without paying import duties and taxes. Therefore, Outward Processing is an authorisation to export one thing and bring back the processed item. This could be something that hasn’t fundamentally changed – it has been repacked, repaired, or upgraded – or something significantly changed, such as rolls of fabric reimported as garments. On return of the processed item the authorisation and evidence of export is required, and duty/taxes can be waived.

2. The receiver of the goods doing the process (Inward Processing)

The receiver (importer) needs approval to import goods to be processed (Inward Processing) if they want to avoid paying import duties and taxes on arrival. Inward Processing permits goods to stay in the country for a set period of time with duties and taxes suspended. The importer will be authorised to discharge their liability for these duties usually by exporting the processed items, though other methods of discharge can also apply, e.g., scrapping the goods, supplying them to an authorised used (e.g., civil aircraft manufacture), transfer to another authorised party. Evidence that the goods have been processed and correctly discharged is vital. If the authorisation only approves re-export of the processed item within 6 months and you fail to do this, then you will be charged the duties that were suspended at the time of arrival. Again, the process could be repacking, a repair or upgrade, so not physical change to the goods, or something significantly changed, such as rolls of fabric reexported as garments.

These processing procedures are also known as trade facilitation regimes as they are in place to facilitate international trade. It is important that the company applying for these special procedures understand what they need to be authorised for and have systems in place to manage them. Also, they may, especially with Inward Processing, have to provide a financial guarantee to secure the potential customs debt suspended under this regime.

How to …

It is worth mentioning that the two schemes are not interdependent, so an exporter can be approved to use OP regardless of whether the other party has IP and an importer can utilise Inward Processes without knowing if an OP scheme was used by the sender of the goods.

Step 1 – understand your business needs. What type of process is involved and what will happen to the goods during this process? Check how much money you will save by using these special procedures. They require a lot of administrative controls, and it can be time consuming to use them correctly so the business must compare admin costs to duty/VAT savings. If your goods naturally have a zero-import duty rate, will you be able to also reclaim VAT paid at import? If yes, you may decide not to use a processing procedure.

Step 2 - Detail your business requirements in advance of completing the application forms. The application form must include:

• The company details, in the UK and EU this also needs your EORI (Economic Operator Identification number)

• the commodity code of the products sent for process and

• the commodity code of the products after process

• usually, a value for the goods is needed which also require a financial guarantee being put in place

• description of the process, time scale required and how you will identify the goods sent for process as the processed goods (e.g., serial numbers) or within the processed item

• if replacement goods will be supplied, under a standard exchange procedure for example, ensure this is within your authorisation application

• Summary of your internal procedures

• Details of the customs points you may use at import/export

Step 3 – check the authorisation on receipt from customs especially

• Commodity codes approved

• The through-put period, i.e. how long before the goods must be discharged/returned

• The Customs Procedure Codes (CPC) to use on export/ import declarations

• Record keeping requirements and other special terms

S tep 4 - ensure you have written procedures and someone internally allocated responsibility to manage the processing approval. It is vitally important that you can control both the export customs declaration and the import customs declaration to ensure the correct authorisation number is used, the approved commodity codes and the correct Customs Procedure Codes (CPC). Ensure you are aware of the through-put period and if it seems the goods won’t be returned within the approved timeframe, seek and extension from customs. Any error in this area can lead to you having to pay the duty/taxes you think you have avoided.

Step 5 – control all customs declarations and ensure you get copies of these customs entries. Maintain a separate record of goods send for process and when they are returned or otherwise discharged. Ensure any reports required by customs are sent in on time, in the correct format.

Step 6 – keep a record of how much duty and VAT is being saved. This will be of interest to management as the scheme can be time consuming.

Conclusion

Remember, the use of a special procedure, like OP and IP, isn’t mandatory but to not do so will mean your goods will be treated as standard imports and be subject to customs duties and taxes. It’s all about saving money but we also need to be aware that to operating these procedures can be time consuming and expensive and that is why Step One is so important. Know the value of using OP/IP and keep checking it is relevant to your business needs.

A Practical Guide to Applying for and using ATA Carnets

A Beginners Guide to the world of Exporting & Importing

Tue, 02 Nov 2021 11:25:13 GMT

The world of exporting & importing can almost feel like a secret if you aren't involved in the day-to-day activities of international trade, join Steve Berry as he debunks the mystery of why an EORI is only the start of the compliance journey.

Beginners Guide to Exporting and Importing

Missing September MPIVS reports – Postponed VAT Accounting

Mon, 01 Nov 2021 14:12:44 GMT

HMRC intend to have the issue in hand asap....

Some businesses declaring to PVA (code G on the import declaration) have been reporting being unable to download their MPIVS report for the month of September.

We have reported this to HMRC who are giving this issue urgent attention.

The advice from HMRC to affected businesses is:

To continue to check the CDS dashboard ahead of the submission of the VAT return
If the statement remains unavailable, then estimate the September import VAT using company records
Any necessary VAT adjustment can be made the following month

CDS Implementation for all imports to Northern Ireland (NI) from the Rest of World (RoW)

Mon, 01 Nov 2021 13:15:33 GMT

CDS to be used for imports to NI from RoW from 31 ^st October 2021. CHIEF will cease to function as a declaration service for all imports between Northern Ireland and the Rest of the World Trade after 31 ^st October, 2021. This will necessitate urgent action for businesses to move immediately towards using the CDS platform from 1 ^st November, 2021.

HMRC Essentials

Moving goods between the rest of the world and Northern Ireland from 31 October 2021

The temporary contingency that allows the use of the Customs Handling of Import and Export Freight (CHIEF) system for rest of world (RoW) to Northern Ireland (NI) import movements will end on 31 October 2021.

Using the Trader Support Service if your business is not ready in time

If a business is unprepared to use CDS from this date, it will be possible to use the free of charge Trader Support Service (TSS) to make the necessary Full Frontier Declaration (FFD), until the business is prepared.

Explanation: Lodging a Full Frontier Declaration means all the required customs information is provided upfront before the goods are released from customs control.

A business will need to ensure familiarity with making an arrived FFD using the TSS.

Details of how to complete an arrived FFD are available on the NICTA website .

HMRC strongly recommend that businesses commence using CDS for import declarations as soon as possible

Further detailed CDS guidance for using Preference, Authorised End Use, or Relief Arrangements at Import to NI from the RoW

If a business declares any of the following at import, CDS will require particular measures to be taken on making the declaration to ensure that the measures are implemented.

Preference
Valuation methods 2, 3, 4, 5 or 6
Authorised-use relief arrangements

HMRC have issued a guidance document to assist. The document is published with this article on the S&H website

Customs Declaration Service – Links to the guidance on gov.uk

Guidance and resources are available on GOV.UK outlining the steps you need to take to get ready for CDS.

Affected businesses are also advised to speak to their software developer or community system provider as soon as possible about how they can support migration to CDS.

Other considerations: Urgent

CDS has considerable differences in its requirements to enable the successful completion of an import declaration that were not required by CHIEF.

It will be important for any UK business to become familiar with these changes.

Example:

Changes may be needed to a company’s financial processes such as the setting up a new CDS Direct Debit Instruction for a Duty Deferment account .

The Direct Debit Instruction must be set up by the account holder.
If a business holds a standing authority for duty deferment accounts on behalf of other businesses, the account holder will need to complete the new Direct Debit Instruction.

Top Tip

Once registered for CDS, all accounting information can be viewed on the customs financial accounts dashboard .

The migration from CHIEF to CDS will take time and an amount of business preparation.

What is vital for a business to understand is that CDS is very different from CHIEF in the data requirements needed to complete the customs declarations.

If the declaration data is to be recorded accurately, the supporting business data must be gathered and appropriately captured in advance and saved on file to enable that accurate declaration.

There will be a lot to do.

CDS Imports Go Live for the rest of the UK – September 2022

The Customs Declaration Service will commence replacing the CHIEF import function for the rest of the UK in September 2022 when CDS Imports goes live.

The importance of Training

Understanding how to make compliant declarations will be essential for all UK businesses involved in international trade.

Strong and Herd’s Bernard O’Connor and Emmanuel Gianquitto have been working with HMRC supporting the development stages of the CDS and are best placed to give accurate working-practice advice on how a business will need to prepare for and use CDS.

Supporting you through this change our CDS Community Subscription including a priority response helpline, CDS Clinics, CDS Briefings, one-to-one sessions with our CDS specialist & CDS training.

Diary Dates:

30 September 2022: import declarations close on CHIEF

31 March 2023: export declarations close on CHIEF / National Exports System (NES)

HMRC Guidance

HMRC Contact data re Migration

If you have any questions about migrating to CDS, please contact us through our communication channels.

GOV.UK Update – 14 October: Claim a waiver for duty on goods that you bring to Northern Ireland from Great Britain or countries outside the UK and EU ; - This guidance has been updated to explain that traders in National Cap sectors can now claim a waiver. There is also a new Customs Duty waivers form.

Tales from the Undergrowth

Fri, 29 Oct 2021 14:23:44 GMT

Halloween is the time for ghost stories and tales that bring suspense and horror to our door; we’ve even heard that some events in these tales turn people’s hair grey as they visibly age overnight. So here is our contribution to Halloween – our Tales from the Undergrowth.

The Reluctant Exporter

Once in a land not too far away from you, there was a family that ran a nice business manufacturing magical machines that could improve the flow of water in systems. These machines were sought after by other businesses in the land but also by companies overseas.

The Magical Machine company didn’t really want to get involved with exporting. They had heard their own tales of how difficult it was, how things could get delayed, and costs mount up. One day as they were getting ready to wave off their new batch of magical machines on the journey to a regular customer the driver of the truck stayed a while to drink some tea and eat some biscuits. They told him about the potential orders they had, to supply overseas and the truck driver, who knew about these things, told them not to worry. They just had to use the magical words ExWorks in the agreement with the customers and all the problems would go away.

Encouraged by this, the Magical Machine company began exporting using ExWorks as their magical words. And it worked! Machines were collected and vanished off to other countries without them having to do anything. Money poured in and the family was very happy.

That is, until the day the VAT auditor arrived. The VAT auditor sat before the family looking at the invoices for the goods that had been exported and asked to see evidence that the goods had left the realm. You see, they hadn’t charged VAT, well you don’t when you export goods, everyone knows that! But what they hadn’t realized is that they would have to prove to the authorities that it was a genuine export. They said the magical words to the VAT auditor: “But they are sold ExWorks. We don’t do anything but get the goods ready for collection.”

“Oh dear, oh dear,” muttered the auditor sadly, though there was a hint of a smile upon the pale thin lips. “No evidence of export. Then I’ll have to collect the 20% VAT from you.” Taking out a quill pen the auditor quickly jotted down numbers on a pink piece of paper and spun to towards the family with a flourish. The row of 00000’s on the pink paper made the family’s eyes water.

“But the truck driver said the magical words ExWorks would make all our problems go away!” The father cried. The auditor sadly shook their head.

The Ghost of Past Halloweens

There was a knock on the door. Though Tom and Jane were expecting the HMRC audit team it made them shiver. They had been importing Halloween gifts and clothing for 3 years now, without any issues, but last month an email from Customs had arrived asking them for further information on the goods they were importing. It turned out that Customs didn’t think that boxes of Halloween branded biscuits, chocolates, candles and orange and black clothes could all be entered under the commodity code as 95-05: Festive, carnival or other entertainment articles, including conjuring tricks and novelty jokes.

Reluctantly Jane opened the door. Three customs officers walked in. They were polite but firm.

“You have been importing goods incorrectly. Biscuits, chocolates, candles, and clothing can’t come into the country as festive entertainment articles. There are specific rules you must apply when choosing commodity codes. Didn’t you know that?”

“No, sir”, replied Tom.

“Did you not read the Chapter and Section notes that clearly say: “This chapter does not cover – among other items:

• (a) candles (heading 3406);

• (e) fancy dress of textiles, of Chapter 61 or 62;”

“No, we didn’t read it”, said Jane.

“So, that means you have been paying 2% import duty when the duty rate for your different items should be around ….”, the young officer shuffled some papers and handed one to Jane. It read

Chocolate confectionary = 8% duty

Biscuits = between 8% - 10% with additional 26.00 GBP / 100 kg

Candles = 0%

Clothing – mens & boys = 12%

Clothing womens and girls = 12%

“At least the candles are zero,” whispered Tom to Jane, trying to smile.

“So, as you have been importing these items incorrectly for 3 years, we estimate that you owe us £74,528.90. And of course, additional VAT.”

A sudden gush of wind blew the front door open with a bang, but no one moved.

2021 Budget and the Customs Declaration Service (CDS)

Thu, 28 Oct 2021 08:06:29 GMT

On 27 October the Chancellor of the Exchequer presented his Autumn Budget and Spending Review to Parliament.

The full documentation can be accessed here:

https://www.gov.uk/government/topical-events/autumn-budget-and-spending-review-2021

Within the Budget announcement, Rishi Sunak has included a commitment on customs design including:

• £180m (section reference 2.190) to build a UK Single Trade Window, streamlining trader interactions with border agencies

• £838m (section reference 4.109) over the three years to 2024-25 to complete the delivery of critical customs IT, including the new Customs Declaration Service.

HMRC is committed to co-designing solutions with trade, including consultation on three elements of the customs system:

• Declarations processes

• The Intermediaries market, and

• Transit facilitation (section reference 2.191)

The Department has said that this will include calls for evidence to seek the views and expertise of industry and the public to understand their experience of the customs system and help shape future customs policy.

HMRC CHIEF Migration to CDS

Thu, 21 Oct 2021 12:20:52 GMT

HMRC are writing to 600 smaller volume CHIEF users in a push to engage with users that may not be aware of the forthcoming CHIEF migration to CDS, and the importance of a business being prepared for that change.

HMRC announced the migration dates earlier in October 2021.

They are as follows:

30th September 2022 : All import declarations will be moved onto the Customs Declaration Service.

31st March, 2023 : CHIEF will be closed for export declarations, and the National Export System (NES) will shut down.

Note: CHIEF will remain accessible for a short period of time to enable completion of any import supplementary declarations.

HMRC are keen that businesses understand that there will be a business need to prepare for the move to the new system. CDS is completely different from CHIEF.

An agent may make the declaration on behalf of a business, but the business will still need to give accurate clearance instructions to that agent and be able to interpret the data that has been submitted to CDS on their behalf.

CDS training will be important for a business that wishes to both understand the new system that will be supporting its cross-border trade activity, but also to enable good working practice and sound compliance for HMRC audit. Queries and errors are best dealt with in good time rather than detected by the authorities at audit.

HMRC will be publishing guidance and further details on the new service in due course.

CDS Imports: The Customs Declaration Service

How to.... Move Goods Temporarily (Part One)

Thu, 21 Oct 2021 10:28:21 GMT

Moving Goods Temporarily - One of the challenges facing businesses is how to be compliant with customs procedures and yet not incur duties and taxes when moving goods internationally on a temporary basis.

Introduction

In this and the next How to … article we will be looking at the steps to take to manage this part of your business. Part 1 is looking at the movement of goods when they will be returned unchanged, so covering goods going to an exhibition, demonstration or for evaluation for example. Part 2 will review the different procedures available when you move goods for a process, such as repacking or repair.

Why is it important?

Since the UK left the Customs Union of the EU (1-01-2021) the number of temporary movements requiring customs declarations has increased significantly and sadly a lot of companies are not prepared for these changes and have incurred delays, rejected arrivals and/or high customs costs. Temporary movements of goods internationally can create confusion and misunderstanding in many quarters, leading to unnecessary cost, delay, and administrative burden not to mention downright contravention of statutory regulations both local and international. It is important to understand that there are mechanisms within customs regulations to permit the movement of goods temporarily without incurring such costs, it’s just that the company moving the goods needs to be aware of them and ensure the declarations are completed correctly.

But what is it?

Customs duties and taxes are used, not only to increase a country’s revenue, but also to control the import of foreign origin goods. But, if the goods arriving at the port or airport of arrival are commercial samples, the packing containers, goods being used to maintain previously imported products, broadcasting equipment, equipment required in a national disaster, etc why should they be subjected to the same level of controls, documentation, and customs duties? Good question … which the World Customs Organisation (WCO) worked on resolving to enhance international trade co-operations.

How does it work?

The temporary movement of goods has always been challenging as it involves at least 4 different customs declarations:

a) The export declaration

b) An import declaration

c) The re-export declaration

d) The re-import declaration

At two of these points (b) and (d) there is also the concern that you may be charged import customs duties and taxes unless you use a special procedure. The exporting company should work with someone in the importing country to ensure that customs formalities can be arranged correctly. As we are looking at the movement of goods that will be returned unaltered then we are looking at relevant international regulations such as the ATA Carnet scheme and Temporary Admission procedures also know as Temporary Imports. Customs duties and taxes don’t just vanish when we use these procedures, so we also must consider how we guarantee potential duty at stage 2. Unfortunately, customs will not just take our word that its “temporary” and waive all charges.

How to ….

Step 1

The ATA Carnet, also known as a passport for goods, is a simple way of moving goods that are not undergoing any process into and out of other countries without needing full customs declarations or the payment of duty and taxes. Not available to all destinations it also has some limitations and can be expensive to obtain. An ATA Carnet is suitable for both hand carried consignments and unaccompanied freight, but it does not replace the need for export or import licences though, it only covers customs declarations. An ATA Carnet is applicable for three different types of temporary exports and though it:

• Professional equipment, such as equipment going out to test machinery already overseas

• Commercial samples, where the samples are high value and being returned to the exporter

• Exhibitions and demonstrations

There is an issuing fee for the ATA Carnet, payable to the issuing authority in the exporter’s country (this is a Chamber of Commerce in the UK) and also a guarantee to put down or insure to cover potential import duty and taxes in case the goods do not leave the import country. The ATA Carnet permits the return of goods within 12 months, though this can be reduced at the time of import by the customs authorities so ensure you check the vouchers/tickets within this passport and don’t assume 12 months will be ok.

Step 2

If the country is not a signatory to the ATA Carnet agreement, or the reason for export is not covered by the Carnet system, or the goods need to be out of the country for longer than 12 months, or, you find the costs of the Carnet too expensive then you have to review more conventional customs procedures. Remember there are 4 customs declarations to consider – we will look at these in the next 4 steps.

Step 3

a) - Export: There are temporary export procedures available in all countries’ customs legislation. In the UK and the EU this involves selecting the correct Customs Procedure Code (CPC) to declare on the export customs declaration. The normal temporary export code for goods returning unaltered is 23-00-000. This permits the return/ re-import to come in under returned goods relief waiving both import duty and VAT, also long as the original exporter retained ownership and the goods did not undergo a process. Quick easy.

Step 4

b) – Import: This is the complicated one. There are several Temporary Admission procedures depending on the type of arrival and the length of time the goods will remain in that country. But all will require security or a guarantee to be put in place for potential duty/taxes in case the goods remain in the country. Unfortunately, there is no hard and fast rule for dealing with this, it can depend on the type of equipment, whether it is hand carried or freighted in, the length of time of the stay, whether you have representation in that country and to which country the goods are exported. It may be possible to set up a Temporary Import Bond (TIB) or secure against an established guarantee, such as a deferment account at the import customs point. Alternatively, you may have to pay the money and them reclaim from customs on leaving the country? Will a company in that country do this for you - either your client or freight forwarder?

Step 5

c) – Re-export: It is vital, as we stressed with the ATA Carnet procedure, that the time limit imposed on the temporary import must be adhered to or the duty/tax will become due. If the goods are hand-carried, then a simplified export declaration may be required which is usually completed by your representative with customs’ help (though some countries insist on getting a freight agent involved). Any bonds, guarantees, securities must be cancelled, and any monies paid refunded.

When the goods are freighted out, the responsibility for correctly re-exporting the goods rests with the freight agent. He should have clear instructions, especially if the bond/guarantee to be cancelled is in your name not his. Evidence of export, e.g., a stamped copy of the shipping invoice, should be requested in case the foreign customs authorities seek import duties/taxes at a later date.

Step 6

d) – Re-import: If we’ve done a) correctly and have the evidence of the original export then this is fairly straightforward. The important thing here is to ensure the goods are entered as Returned Goods (RGR) so no import duty/VAT is payable. There is a standard time limit of 3 years to re-import goods into the UK under RGR. In the UK and EU this is controlled using the correct Customs Procedure Code (CPC), which is generally 61-23-F01

Conclusion

It is important to understand that there are mechanisms within customs regulations to permit the movement of goods temporarily without incurring such costs, it’s just that the company moving the goods needs to be aware of them and ensure the declarations are completed correctly and not just send goods hoping for the best outcome.

A Practical Guide to Applying for and using ATA Carnets

NCTS Legacy system XML Shutdown 30th November 2021

Tue, 19 Oct 2021 10:02:42 GMT

HMRC urge stakeholders to update their access to NCTS in order to prepare for the shutdown of the NCTS XML legacy system on 30th November.

The NCTS XML (Extensible Markup Language) channel is being shut down at the end of November due to capacity issues. This will necessitate users of the Transit system to update their access to NCTS.

Time is running out for any users of the NCTS XML channel that have software adjustments to be made to their own systems to make provision for the channel change.

The link to the HMRC pages for the latest updates on Community and Common Transit, and the Transit International Routiers (TIR) is below

https://www.gov.uk/government/publications/community-common-transit-and-tir-newsletters

NCTS - The New Computerised Transit System

Preparing for NCTS Downtime

Tue, 19 Oct 2021 09:53:59 GMT

The Convention on Common Transit has mandated provision for an outage to the digital system. Generally, hauliers are more likely to wait at a port until NCTS revives and their journeys are able to continue.

However, with changes due to be implemented with the NCTS system, and the removal of the XML channel, it may be practical to review what to do to prepare for any stop to the digital mechanism should movement need to move to manual.

Outbound Transit

• Ensure that the original Transit Guarantee document is filed at the Office of Departure by the holder of the procedure.

• The driver must present an electronic SAD or TAD Fallback Document at the Office of Departure. This document may be emailed or presented on a smart phone. This will enable the office of departure to print the Fallback Document

• Border Force will check the Fallback Document against an original copy of the guarantee certificate, previously lodged at the office of departure

• If all is well, the SAD/TAD fallback document will be stamped by Border Force and the journey may continue

• The SAD/TAD MUST accompany the goods on their onward journey to the Office of Destination

Without the lodging of the guarantee at the Office of Departure, there will be no Transit movement.

• Authorised Consignees may apply to HMRC for authorisation to use the Fallback Process applying for a Customs Stamp to be used to certify their transit documentation at their authorised premises.

Starting a Transit movement at an Inland Border Facility or Port

• Traders using a port in the southeast will be told not to attempt to commence a transit movement at an IBF or Port unless their goods are priority goods and on a priority list. An example would be those carrying live animals, medicines, or perishable goods.

• Those traders carrying priority goods may be able to progress if the movement guarantee is lodged at the port, and the driver has the SAD/TAD document for stamping.

• Traders already at the port or en-route, will need to sit out the outage, or may be turned away from the Port.

Non-southeast ports

Traders will be requested not to approach a port to commence a transit movement, unless they are able to follow the SAD/TAD stamping process having lodged the guarantee at the port in advance

Imports – Ending a Transit Movement

At GVMS Ports

• Drivers with valid Goods Movement Reference numbers having created a Movement Reference Number, will be able to board a ferry

• A haulier without a MRN (due to NCTS outage) will not be able to make a ferry crossing and should wait until NCTS service is restored

At Non-GVMS Ports

• Hauliers will be able to complete the Transit

Alternative Processes.

HMRC advise UK businesses to consider other processes in the event of prolonged NCTS outage.

Notes for Authorised Consignees/Consignors

Exports: Starting a Transit Movement

Traders will not be able to commence a transit movement using the Fallback procedure unless the authorised consignor has authorisation to use the Fallback process.

Imports: Authorised consignees should continue to complete the transit movement in the normal way, approaching their Authorised Office of Destination for permission to unload at those destinations on their authorisation. Data should be added to NCTS when the system is restored

NCTS - The New Computerised Transit System

A Spotlight On: Northern Ireland

Tue, 19 Oct 2021 08:36:49 GMT

The NI border with the rest of the UK has been subject to particular flux in recent months. What traders on either side of the Irish sea need is consistency, sound compliance methods and clear published regulatory controls and guidance to support that cross-border trade.

Implementing a working regulatory structure between NI and the rest of the UK was always going to be challenging. The situation is unprecedented in both EU and UK trading history, so setting new regulatory boundaries without implementing restrictive borders will continue to take effort and compromise.

For traders it will mean work.

Traders need certainty, sound working methods and clarity as to the processes that will enable their goods to move seamlessly from one place to another. Good, clear published guidance from the authorities is essential. Traders will need strong guidance to provide the clarity that enables best practice and diligent compliance. The movement of goods should, at best, be slick.

Regulations and Published Documents

Northern Ireland Protocol

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1008451/CCS207_CCS0721914902-005_Northern_Ireland_Protocol_Web_Accessible__1_.pdf

European Union Withdrawal (2018) Act

https://www.legislation.gov.uk/ukpga/2018/16/contents/enacted

The UK and EU negotiating teams acknowledged the unique circumstances on the island of Ireland from very early on in the negotiation process for the Withdrawal Agreement. The necessity of safeguarding the 1998 Good Friday (Belfast) Agreement, avoiding a hard border on the island of Ireland, and protecting north-south cooperation was paramount from the beginning of the process. The negotiation teams had to provide a working agreement that could be put into working practice by those affected by it.

This solution was found in the form of the Protocol on Ireland and Northern Ireland, which avoids a hard border between Ireland and Northern Ireland and should, in theory, enable the smooth functioning of the all-island economy, while safeguarding that Good Friday (Belfast) agreement.

The UK Government published the Command Paper in July 2020 - the document promoting the ideal of the provision of unfettered access for NI traders to markets in the remaining UK countries, with additional provision for GB trade into NI.

The provision for unfettered access perhaps has been the most challenging to implement. The promised ‘sophisticated’ systems to promote the smooth movement of goods were in the concept phase when the protocol was published in 2020

Implementation of New IT systems and software 2021

The new year saw the introduction to and implementation of many new IT systems (some still in development), when implemented in January 2021.

Traders using the Trader Support Service in January struggled to submit essential customs entry data into the system, even with the help of the TSS team. Traded goods had to be appropriately classified against the Tariff, and other essential data, such as weights and dimensions had to be submitted - challenging for the company moving a van load of maintenance equipment and tools to serve a maintenance contract in NI for example.

For traders unfamiliar with customs controls, it was very different and not easy. Those familiar with customs entries perhaps had a better idea of the data that the TSS system needed to have provided. Most reported having struggled.

There was later evidence that there had not been enough of the essential basic data input into the TSS earlier in the year to enable the link to the vital supplementary declarations to be made later in the year. Traders sailed past the 175 days regulatory cut-off date for making those supplementary declarations to HMRC and have found themselves non-compliant as a direct result. It has not been the smoothest of times.

What is needed now is certainty and compliance stability. Any further changes to the Protocol will entail further burdensome change to IT and record systems, not simply those operated by the UK and NI authorities, but by businesses that will need to make further amendments to their own IT systems to link up. This may affect all traders, from an SME amending their goods tracking spread sheets, to the large businesses that provide the logistics support to the movement of goods through the ports and over the border.

Port authorities, ferry and haulage companies have integrated systems that feed data through to each other to support those movements. Inaccuracies in software may only be detected when an entry record throws out an error message at a later stage, causing a delay in delivery or misadventure much later at audit.

What's coming up

HMRC will be publishing guidance shortly for GB companies that have the XI EORI without an established business in NI, and guidance will be issued directing traders towards re-applying for the TSS, which will be directly impacted by the implementation of the UCC regulation for established business necessity.

The NI border with the rest of the UK has been subject to particular flux in recent months. What traders on either side of the Irish sea need is consistency, sound compliance methods and clear published regulatory controls and guidance to support that cross-border trade.

Useful links in relation to this months' Spotlight On....

Training Courses

Trading with Northern Ireland

A one-day introduction to the New Computerised Transit System (NCTS)

Understanding CDS Imports & Exports

HMRC Testing CDS Exports

Tue, 12 Oct 2021 10:22:54 GMT

On Friday 8th Oct 21, HMRC commenced a beta testing programme of the CDS Export training ahead of CHIEF decommission in Q1-23.

A handful of selected traders participated in an intense 3-hour session on Friday morning, covering the complex structure of the Export tariff for CDS , the differences with CHIEF and the guidance available on gov.uk.

The move to CDS is driven by a European move towards the European Union Customs Code and Data Integration Harmonisation rules, which remove the old SAD boxes. This makes CDS completely different from CHIEF.

The new Export Tariff together with the new CDS system introduces major changes to how traders submit export declarations. CDS sees the introduction of new declaration categories, additional data points required and the removal of blanket statements such as LIC99 to override licences.

To help traders, HMRC intends to launch a web portal, the CDS equivalent of the current CHIEF NES Web, to allow traders to input export declarations directly into HMRC without the need for 3rd party software. The beta testing for the new portal will extend until Apr 22.

There is extensive guidance on gov.uk to cover the changes that are being introduced such as step-by-step guides and completion rules. Nevertheless, traders will still have a significant task in upskilling their knowledge to ensure they are ready for CDS and remain compliant when submitting export declarations.

Guidance on how to navigate Volume 3 – CDS Export can be found on gov.uk

https://www.gov.uk/guidance/navigate-the-uk-trade-tariff-cds-volume-3-for-exports

Advanced Guide to Import, Export & Customs Procedures

CDS Imports: The Customs Declaration Service

Temporary Admission and making use of Returned Goods Relief

Thu, 07 Oct 2021 15:37:02 GMT

There are over 50 Customs Procedure Codes that allow import to Temporary Admission. Using the correct code takes skill and appropriate awareness and training. It is so very important to get it right and remember it isn’t whether an HMRC audit will happen but WHEN it will happen.

Best practice to be compliant from the get-go!

Trading with the EU is not as simple as it was.

For any company unfamiliar with HMRC cross-border methods or are finding the Customs Guidance challenging to put into working practice, it is becoming increasingly important to access good quality information.

There has been a misconception that an EU UK trade agreement would mean that cross-border trade would essentially remain as it was before the UK left the EU.

Even after the TCA publication, there is still confusion as to how the agreement should facilitate cross-border trade.

What is of note is that the agreement does not support the cross-border movement of unaltered goods backwards and forwards between GB and the EU member states. Traders now need to consider employing customs procedures to support any temporary import of goods, or for goods being returned unchanged from the EU.

Importing to Temporary Admission

There is plenty of choice when it comes to Customs procedures that enable a temporary import.

The important thing is to understand what it is you are importing and the reason for importing to temporary admission, in Customs terms. Employing the correct procedure is essential.

Customs Procedure Code descriptions and definitions can appear straight forward (if you know where to find them). What is important to understand is that there can be substantial compliance requirements behind each of the processes, and that evidencing that compliance will be vital at HMRC Audit. Duty and VAT may be chargeable at that point if the correct data is absent, or the incorrect CPC used.

It is so very important to Get It Right and remember it isn’t whether an HMRC audit will happen but WHEN it will happen. Best practice to be compliant from the get-go!

Top Tips

• Clearly understand the reason behind importing to Temporary Admission

• Accurately classify the goods for import. Accuracy at the point of import is vital.

• Is VAT payable, or are duty and VAT subject to suspension? Each procedure is different, and this may affect your decision as which to use.

• Give clear instructions to your agent to import to a Temporary Admission procedure.

Recording the correct Customs Procedure Code at import and a corresponding export CPC code at reexport is essential, or the procedure will not work.

• Make sure that you will be able to comply with the procedure compliance requirements.

Things to Consider

The reason the goods are being imported

Example: Temporary Admission can cover goods imported for evaluation but does not cover the goods being subject to processing.

• Are the imported goods themselves being evaluated, or being imported to test other equipment, then being re-exported after being used for that test?

• Identification of that reason for import in HMRC terms will be important when selecting the correct customs procedure code.

• Check: Inward Processing may be more appropriate or even essential rather than using Temporary Admission. Inward Processing necessitates the goods themselves undergoing a process.

• What evidence will be needed at re-export to discharge the obligations from the procedure?

Make sure that you will have this evidence to discharge from Temporary Admission on re-export.

Once familiar with temporary admission there is a lot of money to be saved. What is needed is a firm grasp of the compliance requirement and the confidence to implement the compliance processes effectively.

The same can be said of importing using Returned Goods Relief.

RGR is a customs procedure that could be much more widely used at import for goods being returned after temporary or unsatisfactory export, saving UK businesses a great deal of money in the process.

An inexperienced importer may import returning goods to home use (CPC 40 00 000) paying duty on goods returned under warranty as an example. A little more understanding of HMRC procedures can go a long way to saving import duties, and where applicable, VAT

Returned Goods Relief (RGR) CPC 61 23 F01

Returned Goods Relief is an invaluable mechanism when receiving goods returned after export. Goods must be in an unaltered state. This unaltered state would include goods being returned as unserviceable, unwanted or after temporary export.

Top Tips

• RGR may be implemented should goods be returned to the UK within 3 years of original export. The goods must have been in free-circulation in the UK before the original export (that is – in the UK duty and VAT having been paid)

This 3-year period can be extended to 10 years with HRMC approval

• It is not to be returned for goods reimported after repair

Example: Goods being imported for return to the manufacturer as faulty.

Method

Import to RGR using the original export entry as evidence at import. Add the export entry number into box 44. This will support use of the CPC.

• The paperwork must correspond. Look at the serial numbers declared on the commercial paperwork. Are the serial numbers the same?

Do you have a copy of the customs entry for the original export in the file to support this given import?

Linking the export paperwork to the import paperwork is essential.

HMRC like slick.

• The evidence of export can be supplied by another company.

If a business is importing goods for repair as original manufacturer rather than original export supplier, that manufacturing business may use RGR if able to evidence the original export.

Method:

A copy of the original export declaration may be used to support use of the procedure, in the form of a redacted declaration for example. The exported goods must be clearly identified as those goods being returned to you for import.

Temporary Imports and Exports Explained

Beginners Guide to Customs Procedures

Northern Ireland Update - Apportionment: Advice from HMRC

Thu, 30 Sep 2021 20:27:36 GMT

HMRC have announced their intention to introduce a method of declaring ‘at risk’ goods for delivery into NI using ‘apportionment’ as a method of declaring those goods to be at risk of onward delivery into the EU rather than remaining for consumption in NI.

If a business cannot make a declaration based on knowledge of the specific destination of all the goods in a consignment (for example a large shipment of widgets), the business may still be able to declare based on expectations of which goods should be considered ‘not at risk’ at the point of being declared into Northern Ireland.

An example:

• if you do not know at the point of entry which item within the consignment will go where but do know that 70% of your goods consignment typically moves into the EU, but 30% goes to end customers in NI you can declare 30% as ‘not at risk’. The approach is known as ‘apportionment’.

To use apportionment you must:

• Be authorised under the UK Trader Scheme

• Notify HMRC of your intent to use apportionment

• Have stable enough supply chains or sales stable enough to allow you to accurately assess (within a 10% margin of error) what proportion of the consignment will be sold to, or finally used by, end consumers located in Northern Ireland (or in the case of shipments from GB; in England, Scotland or Wales), for example from historical performance or future contracts.

• Be able to provide evidence to support the declarations that you make and demonstrate that the declarations you have made are accurate.

How apportionment works

• To be able to declare on this basis, a business will need to be authorised under the UK

Trader Scheme and tell HMRC that you plan to use expected outcomes as the basis for your declarations.

• You should state this in your covering email when submitting your application for authorisation, or email uktraderscheme@hmrc.gov.uk to tell HMRC if you have already been authorised. It will be important to include your EORI number in the subject of the email.

• When you move goods into NI you will then be able to declare the proportion ‘not at risk’ based on your expected outcomes for those goods. (HMRC are preparing to provide a New Additional Information code which you can use on declarations to tell HMRC that you are using apportionment on a given consignment.

• Currently a business will simply have needed to have told HRMC in advance that it will be using the apportionment approach.

• Once you have told HMRC that you intend to use apportionment you can choose to use this approach on every consignment, on some consignments, or you can choose not to use it at all.

• It is easiest to apply the apportionment at Stock Keeping Unit (SKU) level (product level) as a business will need to consider the outcomes of goods destination at a SKU level to be able to accurately calculate what tariff is due later.

• There will be no need to store the goods separately, but you will need to be able to provide records of the end destination of all the goods.

• If the actual use of the goods is different to that expected when you made the declaration, I itit will be necessary to inform HMRC appropriately and pay any difference in duty due.

• A business will also be able to claim repayment of any overpayment of duty.

• It will therefore be important to consider the stability of your supply chain and whether the use of apportionment is appropriate for your businesses.

Making a Simplified Frontier Declaration

If a business is making customs declarations using a Simplified Frontier Declaration and a

Supplementary Declaration (this is the process used by the TSS), you do not need to wait to find out the outcomes for the goods before you lodge the supplementary declaration. You should declare as normal then use an under or overpayment form to correct once an error becomes clear.

Supply chain and sales

To use apportionment a business should be able to draw a reasonable conclusion (within a 10% margin of error) about the likely final destination of goods based on previous supply chains and sales and on any predicted future plans such as contracts. HMRC have indicated that this should be based on three years of data. HMRC understand that COVID-19 may have disrupted supply chains and that last year’s data may not be as standard, therefore suggest that a business may need to consider taking further previous years into account.

Expected outcomes should be regularly reviewed and evidence captured for audit.

If circumstances change (for example something has affected sales or the business moves into a new market), end use assumptions should be adjusted accordingly.

Evidence

• Keep evidence on what has been declared as ‘not at risk’ and where goods have ultimately been delivered, or onward delivered (for example, sales receipts are acceptable).

• Data should be kept for 5 years. This evidence is similar to that already prepared to comply with UK Trader Scheme requirements.

Top Tips

HMRC may ask to review the business records, systems and controls.

Therefore;

• Keep evidence to confirm each declaration

• If you’re basing that initial declaration on apportionment principles, you should keep track of this

• Ensure that the overall balance matches broadly to business expectations.

Corrections/reconciliation

• HMRC expect that a business ‘at risk’ declaration reconciliation should be completed and in evidence for every quarter.

• If the end outcome for goods is different to original and declared expectations a voluntary clearance amendment (underpayment) submission should be made. Likewise a business can apply for a repayment (this method of application for an over-payment has yet to be determined).

• HMRC intend to advise those businesses registered to use Apportionment on the method of requesting the return of overpayment of duties

HMRC have advised that further detail will be available in due course

While you are here you may be interested in some Strong & Herd LLP training courses related to this

topic, we offer a wide range of high quality training courses to support all importing and exporting activities.

Trading with Northern Ireland

Exports of reusable Packaging - Customs Procedure Code 1000056

Thu, 30 Sep 2021 14:48:08 GMT

Exports of reusable Packaging - changes taking effect on 1 October 2021

HMRC updated its guidance on 17 September 2021 to remind exporters that they will need to complete Safety & Security declarations (EXS or Exit Summary Declarations) for exports and re-exports of reusable packaging, including empty pallets, that are currently declared orally or "By Conduct".

The term "By Conduct" simply means by an action, such as crossing the border (in this case leaving Great Britain) and an Export Customs declaration isn’t required.

However, an Export Customs declaration is actually two declarations – the Export Customs declaration itself and a Safety & Security declaration, and whilst the "Customs" bit isn’t currently needed for these types of movements, from 1 October 2021 the "Safety & Security" bit will be needed.

These declarations can be made to the HMRC CHIEF computer system using HMRC's the Web service or by completing them using customs clearance software.

Here are the links which contain the information:

Declaring reusable packaging for Great Britain imports and exports - GOV.UK (www.gov.uk)

Find out when to make an exit summary declaration - GOV.UK (www.gov.uk)

Unfortunately, the guidance only makes reference to an old Customs Procedure Code - 10 00 046. This code is only for use at inventory linked locations for pre-lodged declarations. Details the use of CPC 1000056 can be found at the end of this article.

And here is the important bit about 1 October 2021:

Exports

If you are declaring exports of reusable packaging by conduct you will not need to make them available for examination. This is unless Border Force stop you and want to make an inspection.

A safety and security declaration will be required for exports of packaging from Great Britain from 1 January 2021. However, for the period 1 January 2021 to 30 September 2021 this requirement is waived for reusable packaging carried in Roll on Roll off (RoRo) vehicles that would otherwise need to make an exit summary declaration.

The requirement for Safety & Security declarations on these movements will only start to apply from 1 October 2021.

Customs Procedure Code 10 00 056

If you need to submit an EXS declaration, you will need to follow one of two processes depending on which port and mode of transport you use to export from Great Britain:

• Follow the existing EXS process if you export through an inventory linked port such as Felixstowe, Southampton, London Gateway and London Heathrow or any other port/airport that is an inventory linked location.

• Follow the new EXS process if you export through ports such as Dover, Eurotunnel, Fishguard, Holyhead and Heysham or any other RoRo port that is a non-inventory linked location.

o Submit an 'arrived' Full Export Declaration on CHIEF using CPC 10 00 056.

o Ensure that your software is compatible with this new code.

Strong and Herd offers box-by-box training on Export Customs declarations and Safety & Security declarations.

While you are here you may be interested in some Strong & Herd LLP training courses related to this

topic, we offer a wide range of high quality training courses to support all importing and exporting activities.

How to Complete Customs Export Entries

Trading with the EU - Customs

CDS Exports

CHIEF Data Entry Exports

Brexit and Exports; The Story So Far…

Thu, 30 Sep 2021 11:08:11 GMT

Is it too early to be asking how Brexit has affected British exports?

We left the EU in January 2020, but it was only on December 31st that we left the Single Market and Customs Union, and it was at that point that trade relations really changed.

From then onwards, goods travelling to an EU country needed an export declaration for the first time in many years. Many products needed additional certificates, declarations or evidence of conformance. We got a trade agreement with the EU, so as long as UK origin could be declared, there have been no tariffs. So, to put it simply, exporting to the EU got a bit harder but not as much as some might have feared.

So, how are exporters coping? That’s the $64 million dollar question! Well, rather more than that really, as we sell £350 billion worth of goods to the 27 countries of the EU each year and the figures are complicated this time, as world trade has been so severely affected by the Covid Pandemic.

Essentially, the value of goods exported to the EU fell in quarter one but made a recovery in quarter two, more or less back to ‘normal’ level. So, just teething problems? Well, not quite. For one thing the effect has been more severe on some industries than others. The food and drink industry has reported a £2billion fall in its first half-year exports to the EU. To take another example, exports of ceramic goods were down by around 10% over the same period but other sectors looked rosier.

There is another way to evaluate the figures that may be more enlightening. Just as the UK economy has been strongly recovering this year, so have the EU27 countries and much of the world in fact. The value of all EU27 imports in the first two quarters of 2021 is higher than at any time in the last ten years so it’s sensible to look at the share of EU27 imports enjoyed by the UK and compare it with previous figures.

The above shows a lower share for the UK than is often quoted. That’s because the above includes goods that EU countries buy from each other, as well as the rest of the world. What is clear is that UK exports lost market share in quarter 1 quite dramatically, by 31%.

We won’t know for sure if that will recover later until all the figures are published but for those EU countries who have published import figures for quarter two, the data is not encouraging. For Germany, there is an apparent loss of market share of more than 15% in the first half of 2022. The figure for The Netherlands is 25% and for Ireland, UK exporters share has fallen by a full 50%.

France, however, bucks the trend. UK companies lost market share in quarter one but then recovered strongly in quarter two to achieve a share not seen since 2019. France may be a special case, as most exports using road transport enter France as their first point of entry to the EU and it’s possible that more goods are being cleared through French customs before moving in free circulation to other EU countries.

So, there’s still some guesswork. We know from the clients that we work with that many companies have been grappling with the new arrangements since the start of the year, but Brexit does make it more complicated to trade with the EU than it was when we were part of the Customs Union. There’s early evidence to suggest that change may be causing British exporters to lose market share. Can that be reversed?

We’ll be keeping a close eye on the numbers, and we’ll let you know what we find.

In the meantime, we’d be interested to know what you think. Do leave us a comment or get in touch.

While you are here you may be interested in some Strong & Herd LLP training courses related to this

topic, we offer a wide range of high quality training courses to support all importing and exporting activities.

Trading with the EU - Trade Matters

https://questions-statements.parliament.uk/written-statements/detail/2021-09-14/hcws285

Changes to Border requirements for imports of Products of Animal Origin and GB Transit update

Fri, 24 Sep 2021 08:02:55 GMT

The UK Government has formally announced the delay in the requirement of full import controls on Products of Animal Origin when imported into the UK from the EU.

Official lines indicate Covid impact, pressure on supply chains and lack of trader readiness as major influences to making the changes.

Some limited controls on UK imports of POAO were due to be implemented from 1st October, 2021. These controls will now be required from January 2022 rather than October 2021, with the full controls that will necessitate stronger compliance adhesion such as Animal Health Certification at import, moved back from 1st January, 2022 to 1st July 2022.

Traders have found it challenging to keep up with the compliance requirements. The salient changes are as follows:

• October 2021 : The implementation of the requirement of the presentation of an Export Health Certificate and the making of an import pre-notification via IPAFFS from October 2021 as previously published, will not be necessary to support the import of POAO. This requirement has been delayed

• The requirement for import pre-notification to be made on IPAFFS moves from October 2021 to January, 2022

• July 2022 : In addition to the pre-notification required on IPAFFS, an Export Health Certificate will be required to support the import.

Important note: The original EHC must accompany the consignment. Copy documents are non-compliant

• July 2022, POAO MUST enter through a Border Control Post to enable

compliance checks on the documents and the consignment.

The UK authorities are keen to ensure that traders are ready for the changes to be implemented, urging traders to register for IPAFFS in good time, and familiarise themselves with both the border compliance requirements and the necessity for affected consignments to be processed via an appropriate designated Border Control Post.

Consignments may therefore be restricted in their transportation route to enable these compliance checks to take place.

POAO under Safeguard Measures

Goods subject to safeguard measures have been subject to controls on UK imports from the EU since January, 2021. The following documentation is necessary when presenting the goods at the border:

• A Health Certificate

• An Import licence or

• A commercial document

The original Health Certificate MUST accompany the consignment to be compliant with regulations.

POAO not subject to safeguard measures and low risk ABP Transiting GB – update to Government Guidance 23rd September

POAO that are not subject to safeguard measures and low risk ABP that are transiting through Great Britain must be pre-notified on IPAFFS from 1st January, 2022.

Government guidance was updated on 23rd September for POAO that move under the Transit Procedure through GB for delivery outside of the GB territory.

EU to Great Britain to EU transits

This guidance covers the sanitary and phytosanitary (SPS) requirements for EU goods moving from:

• the EU to Great Britain to the EU

• the EU to Great Britain to Northern Ireland

• Northern Ireland to Great Britain to the EU

Link below

Links

Full Ministerial Statement that includes confirmation of the delay to the border requirements for POAO

https://www.gov.uk/guidance/import-of-products-animals-food-and-feed-system

Government guidance to the import of products of animal origin, including a link to register for IPAFFS.

Border Control Posts and Control Points - UK Plant Health Information Portal (defra.gov.uk)

Information on BCPs and how to use them

https://www.gov.uk/guidance/transiting-animals-and-animal-products-through-great-britain

Link to the updated guidance on POAO Transit through GB.

Products of Animal Origin & Plant Health – Government Delay Procedures

Tue, 14 Sep 2021 10:42:11 GMT

New regulations regarding agri-food, sanitary & phytosanitary goods were due to come into force on the first of next month (1st October 2021).

The government have announced the delay of these regulations until next year (1st January 2022).

The regulations to be delayed are as follows……

• The requirement for pre-notification of agri-food imports will be introduced on 1 January 2022 as opposed to 1 October 2021.

• The new requirements for Export Health Certificates, which were due to be introduced on 1 October 2021, will now be introduced on 1 July 2022.

• Phytosanitary Certificates and physical checks on SPS goods at Border Control Posts, due to be introduced on 1 January 2022, will now be introduced on 1 July 2022.

• The requirement for Safety and Security declarations on imports will be introduced as of 1 July 2022 as opposed to 1 January 2022.

The delays have been introduced due to the impact the pandemic had on global trade & the increased cost of freight shipping.

Read full statement here

The government have advised that there will be more information to follow.

Although this may be a welcome delay for some businesses the key here is remain prepared. These changes will come into effect & being ready will ensure minimal disruption to business.

Border and Delivery Group encouraging use of DDA

Wed, 08 Sep 2021 12:36:02 GMT

HMRC have released substantial data and some of the FAQs relating to the application for and use of Duty Deferment Accounts. This is one of the essential steps needed to enable completion of the supplementary declarations needed to complete the declaration within 175 days of import, making payment for any duties owed.

The information below is taken from data and links supplied by HMRC. Often the official guidance can be difficult to negotiate, we’ve added further information to help.

FAQs That Traders are asking the HMRC helpdesk

What is a duty deferment account?
How does it work?
When should I apply for a duty deferment account?
What do I need to know before I apply for a duty deferment account?
Can I apply for a DDA without getting a guarantee?
How do I apply for a duty deferment account?
Is there any support for moving goods between Great Britain and Northern Ireland?
Can an intermediary help me?
Where can I find more help and support?

Q1. What is a duty deferment account?

Duty deferment is the main payment method for customs, import VAT and excise duty payments. Having a duty deferment account allows a business to defer payments for customs duty, import VAT and excise, making monthly payments to HMRC through Direct Debit, instead of paying for individual consignments immediately at import or when released from an excise warehouse.

In order to benefit from a DDA, a business is required to satisfy certain authorisation criteria upon application and during the length of time that the account is held.

Apply for an account to defer duty payments when you import or release goods into Great Britain

Q2. How does it work?

It works like a credit account where you pay HMRC via monthly Direct Debit. The payment

for customs duty and import VAT is usually taken on the 15th day of the month . This date also applies to excise registered consignees.

Excise payments are normally taken on the 29th of the following month . More information on payment dates can be seen on GOV.UK.

Once the trader is approved for use of a DDA and the account is set up, the business will be issued with a seven-digit Deferment Approval Number (DAN) which will need to be quoted on customs and excise declarations.

Top Tip : If you have instructed your agent to use your DDA number, check that the agent has indeed used this to make the declaration.

How to use your duty deferment account

Each DDA has a deferment limit which caps the amount that can be deferred each month. Although application can be made to extend that capped limit if you find your business needs to.

You may need to provide a guarantee to support the use of a DDA.

See more information on whether you need a guarantee below.

Q3. When should I apply for a duty deferment account?

If a business imports non-controlled goods into Great Britain from the EU and uses delayed declarations, the business will need to have access to a duty deferment account when the first supplementary declaration is made. This should be within 175 days after goods are imported into GB.

When HMRC have all the information to process the DDA application, they will aim to complete the process and release the authorisation within 30 working days. This will take longer if there is a financial guarantee needed to support the application.

Top Tip : What is important is that the DDA and a Simplified Customs Declarations processes authorisation in good time to meet the 175-day deadline for supplementary declarations.

Delaying declarations for EU goods brought into Great Britain

If a business completes full customs declarations at import, declaring goods to free circulation, import duties can be paid either by using a DDA (either the trader’s DDA, or that provided by an intermediary), or will need access to another payment method as duties will be payable at that point.

You cannot use delayed declarations if you are importing goods on the controlled goods list .

Controlled goods list

Q4. What do I need to know before I apply for a duty deferment account?

A business may need to provide a guarantee for duty deferment covering two months’ liabilities if not eligible for a waiver. The trader will need to arrange a Direct Debit instruction from a UK bank.

Q5. Can I apply for a DDA without getting a guarantee?

A business in GB may be able to successfully receive a DDA without the necessity of provision of a guarantee if eligible for a guarantee waiver.

Check if you can get a guarantee waiver for a duty deferment account in Great Britain

Here are the details:

A business may defer customs duty, import VAT and excise duty up to £10,000 per month without providing a guarantee if your business is solvent and you do not have a history of serious non-compliance.
If the deferral value is above £10,000 per month, a business will only qualify for a full guarantee waiver if the above criteria are met and the business has sufficient resources to pay the full amount needed to be deferred.

These higher value authorisations may take longer to process as HMRC look more closely at the compliance history of the business applying to use it

There is still opportunity for eligibility for a partial waiver if a business does not meet the requirements for a full waiver. •
Those businesses that do not qualify for a guarantee waiver can still be approved to use duty deferment with provision of a guarantee.

Getting a customs guarantee

AEO, EPSS and SIVA

If a business has Authorised Economic Operators (AEO) status, Excise Payment Security System (EPSS) approval or Simplified Import VAT Accounting (SIVA) status, it can use duty deferment in Great Britain without providing a guarantee.
If a business held a DDA prior to January 2021 without AEO status, EPSS approval or SIVA status, it may apply to HMRC to have a guarantee waiver applied to the existing DDA.

Check if you can get a guarantee waiver for a duty deferment account in Great Britain

UK VAT registered businesses can account for import VAT using Postponed VAT Accounting (PVA) for goods they import into Great Britain from outside the UK and into Northern Ireland from outside the UK and EU.
This means that the business will account for and recover import VAT on the same VAT return.
If a trader uses PVA then there is no need to include the relevant import VAT amounts in their duty deferment account or any associated guarantee.

Check when you can account for import VAT on your VAT Return

Q6. How do I apply for a duty deferment account?

A business can apply for a DDA and an optional guarantee waiver in Great Britain using an online application form. If applying for a guarantee waiver for over the £10,000 limit, a PFS1 form will need to be completed to provide the additional information on financial standing and for the submission of necessary supporting documents.

Apply for an account to defer duty payments when you import or release goods into Great Britain

Q7. Is there any support for moving goods between Great Britain and Northern Ireland?

The Trader Support Service (TSS) has been established to support businesses impacted by the Northern Ireland Protocol. The service is free to use and can complete declarations on behalf of traders so that they do not need to engage directly with new digital customs systems or processes.

A trader currently has access to use the the TSS’s duty deferment account, which could be useful while their own business DDA application is in process.

HMRC is encouraging larger businesses to obtain their own DDA by 1st October 2021 for use in Northern Ireland. This will give access to an extended deferment period.

Such businesses would still have access to use the TSS’s DDA if necessary.

Q8. Can an intermediary help me?

Most businesses use intermediaries – that is third party agents, such as customs agents, freight forwarding companies and fast parcel operators, to deal with customs declarations for them.

Some SMEs have had difficulty in determining adequate resource to make their customs declarations for them. HMRC have therefore published information to support traders in finding an intermediary and have published an updated list of intermediaries who have committed to taking on new clients, with detail of the services offered.

Get someone to deal with customs for you

Search the register of customs agents and fast parcel operators

Established Intermediaries

Intermediaries may be approved or authorised by HMRC for customs facilitations, including to use their own DDA, which can be employed on a traders behalf.
Some intermediaries may still require a business to have their own DDA, so it is worth checking this with them.
A business may need to provide written authority to HMRC before an intermediary can use the business’ DDA to support an import.

Top Tip: Give clear instructions to your Intermediary

It will be important to check the details of the DDA that has been used at import. An intermediary will make a charge for an importing business to use the agent’s DDA. To check that your instructions have been followed you can either:

Request a weekly Deferral Account Statement or
Make this part of the business routine check against the Management Support System Reports.

MSS Supporting Guidance

The MSS reports give clear indication of a company’s imports and or exports. Apply for both HMRC reports using the link above and make checking the reports against your cross-border activity part of a regular compliance check routine.

Apply for an account to defer duty payments when you import or release goods into Great Britain

If you move goods between GB and NI, the TSS will act as an intermediary and use can be made of the TSS DDA, as explained above.

Q9. Where can I find more help and support?

HMRC have released some good quality webinar data. The webinars are free for registration and afford the opportunity for the trader to ask questions.

Recorded webinars are available on YouTube and are worth a watch. They give good background information.

The devil, however, is in the detail, so having good supporting training is also advisable to enable putting HMRC processes into effective working practices.

Compliance is everything.

UK Transition - YouTube

How to check if you can delay customs payments and declarations - YouTube

More information on where to watch videos, sign up for email alerts and register for webinars to learn more about UK transition can be found on the help and support page on GOV.UK.

Help and support for UK transition

Customer support packs, including a personal supplementary declaration planner can be found in the link below.
It is a major non-compliance issue for a business to have imported goods without making a customs declaration in good time.
If a business has used delayed declarations, there is a 175 day deadline to make the supplementary declaration

HMRC Brexit communications resources

Other sources of HMRC support:

Ask specific questions about HMRC processes for importing or exporting by accessing the HMRC customer forums.

Welcome to the HMRC Community Forums

Give HMRC a call: 0300 322 9434 to speak to an HMRC Advisor

HMRC customer service advisors are available to answer queries on the Customs and

International Trade helpline. This line has been set up to help businesses with particular working practice questions relating to importing, exporting and using customs reliefs.

The helpline is open as follows:

8am to 10pm Monday to Friday

8am to 4pm at weekends.

HMRC Help and Support

HMRC are keen that businesses sign up for the updates, so please feel at liberty to share the link above.

Introduction of UKCA mark delayed by a year

Wed, 25 Aug 2021 09:28:05 GMT

The government have announced a delay of one year in the introduction of the new UKCA mark.

The new mark will replace the use of the CE mark in Great Britain. Products sold in Great Britain that are subject to the legislation will need to carry the mark from 1st January 2023 instead of 1/1/22.

This is likely to be welcome news to a lot of our clients.

https://www.theguardian.com/politics/2021/aug/24/uk-brexit-safety-ukca-mark-eu-ce

1. 24 August 2021

You can continue to use the CE marking for goods placed on the market in Great Britain until 1 January 2023. The UKCA marking must be used for placing goods on the market in Great Britain from 1 January 2023. The UKCA marking can be used now and we encourage businesses to start using the UKCA marking as soon as possible.

https://www.gov.uk/guidance/using-the-ukca-marking#history

ECJU Training Booklet

Wed, 18 Aug 2021 14:10:27 GMT

The ECJU have published their long-awaited face-to-face training schedule for DIT training courses - dates from September to December 2021.

The ECJU adapted to the UK business need for a training programme during the restrictive Covid period by the release of interactive webinars. The webinars are on-going and free to attend. Recordings are also available and worth a watch, particularly if you consider that your exports could fall under the dual use or end use controls.

Some UK exporters (particularly engineering manufacturers) are finding that their agents are requesting confirmation of a licence requirement when making the customs entry on their behalf.

Exported goods can very easily be captured on the Strategic Export Control Lists because of their capability or end use, rather than military goods for example, that are captured due to their design intent, or because they have been adapted for military purpose.

Links to events and webinar recordings are within the document.

If your business in involved in the international movement of controlled goods, the ECJU will require evidence of a company export control training schedule at audit. The DIT courses are the formal place to start. Strong and Herd will enable putting this formal training into robust working practice.

https://www.gov.uk/government/publications/export-control-training-bulletin/export-control-training-bulletin-has-been-temporarily-deleted-due-to-courses-cancelled-in-april-may-and-june-2020

While you are here you may be interested in some Strong & Herd LLP training courses related to this

topic, we offer a wide range of high quality training courses to support all importing and exporting activities.

Beginners Guide to UK, EU and USA Export Licensing

The Dual-Use Exporter: Understanding the Dual-Use Export Controls

https://www.gov.uk/government/publications/notice-to-exporters-202110-ogels-amended-to-exclude-afghanistan/nte-202110-ogels-amended-to-exclude-afghanistan

Notice to exporters 2021/10: OGELs amended to exclude Afghanistan

Wed, 18 Aug 2021 13:06:54 GMT

The ECJU have issued Notice to Exporters 2021/10 advising of the update to 5 Open General Export licences to remove Afghanistan as a permitted destination.

The licences to have been amended are:

OGEL (export after exhibition: dual-use items)

OGEL (export for repair/replacement under warranty: dual-use items) from December 2019

OGEL (export for repair/replacement under warranty: dual-use items)

OGEL (X) - from December 2019

OGEL (X)

Should a UK business have been employing use of any of these licences to support export to Afghanistan, it may now become necessary to apply for Standard Individual Export Licences to support exports.

A link to the notice is below:

New to Exporting? Where to Start?

Wed, 18 Aug 2021 10:26:33 GMT

Most British businesses don’t export.

Why would they? The United Kingdom is the 5th largest economy in the world, with 66 million consumers, most with pretty healthy disposable incomes by world standards. And of course, many businesses are based on providing products or services that are, by their nature, local. Independent retailers, garages, bakeries, hairdressers, most of the businesses we interact with in a typical day are unlikely to have exporting in their sights any time soon.

But for a large minority, exporting can be a way to transform an enterprise. Manufacturers are probably who we would think of as the most likely candidates, but the world is changing. The United Kingdom is now exporting almost as much by value in services rather than physical products. Much of this is financial services, but it can also include IT services, marketing, technical, legal, and creative services. These are the exports we call “invisibles”, and the digital age has made it ever more possible to ply such wares on a global basis.

Growing from a local or national business to an international one can be a thrilling if often risky venture. To succeed, a new exporter needs a very clear understanding of their goals, one that is based on careful research and, crucially, a realistic assessment of their own capabilities. The first question a would-be exporter must be able to answer is why?

When the objectives are clear, it’s time to get more specific and the big question is almost always where? Some businesses try to take on the whole world at once, and some even succeed, but for most, a well-defined strategy is the way to build success. The most suitable markets are different for every business and need to be identified from a thorough understanding of the business, its products, its resources, and its key success factors. The business that transforms into successful exporting invariably understands what he been the key to succeeding at home and uses that knowledge to seek out comparable opportunities elsewhere.

That’s why you can rarely define your target markets from raw data alone. It sometimes makes me cringe when I hear some expert claiming with all sincerity that a certain country or region is “great for British exporters”. Which exporters do they mean? A feature of a market may be a great selling point for one supplier while being an insurmountable obstacle for another. Devising a winning export strategy is in fact a very personal task, and generalisations are not helpful.

And yet if the business doesn’t have a strategy, attempts to export can be a very expensive waste of time. To target efforts effectively needs careful research. This starts by defining what a suitable export market looks like. There are many possible ways to define this, but it can include factors such as population, incomes, measures of development. It can also include more nebulous features such as culture, taste, and lifestyle. An effective way to compare markets is to identify key factors that are measurable, consider the relative importance of each and build a score sheet for each country. This can be a bit of an onerous task, but there are ways to lighten the task, such as reliable online reports that score countries according to key characteristics including ease of doing business, corruption, spending habits, consumer trends etc.

All of this is explained in our unique support package for aspiring exporters. It can save weeks or months of frustration and help you to fulfil your export aspirations!

Department of International Trade - Webinar Belarus Sanctions

Thu, 12 Aug 2021 09:53:12 GMT

UK sanctions can be a tricky area for an exporter to negotiate, and any information that explains the requirement is worth attending, especially if it’s free and is directly given by the UK authorities.It’s not often that exporters are able to pose questions directly to the FCO or ECJU.

The Export Control Joint Unit has been running some informative webinars of late. They are free to attend and more importantly the attendees are enabled to ask questions during the sessions.

The information below is taken from an emailed invitation to exporters, with a link to the webinar registration page.

UK sanctions can be a tricky area for an exporter to negotiate, and any information that explains the requirement is worth attending, especially if it’s free and is directly given by the UK authorities.

It’s not often that exporters are able to pose questions directly to the FCO or ECJU.

Belarus may not be of particular interest, but an event that gives insight into the machinations of the FCO and ECJU, the government departments that can directly affect ability to make a compliant export, is worth a view.

The webinar will likely be recorded – but then you’ve missed an opportunity to ask questions.

The text below is taken from the ECJU invitation to exporters sent by email 12th August, 2021 for attendance on 25th August 10.00am

The UK has imposed a package of trade, financial, and aviation sanctions on Belarus, in response to the continued undermining of democracy and human rights violations by the Lukashenko regime. These measures coincided with the anniversary of the fraudulent election in Belarus, coincided with the US and Canada's announcement of their own packages of measures, and followed the EU’s measures announced on 24th June. See press release and statutory guidance .

We invite you to attend a webinar hosted by HMG officials to help you understand these new measures, where you will have the opportunity to ask questions on how this may affect your work.

This webinar will take place on Wednesday 25th August 2021 at 10:00 GMT.

Speakers will include representatives from the Foreign, Commonwealth and Development Office, HM Treasury, Department for International Trade, and other government departments.

Please register your interest via our Eventbrite page here .

For data protection reasons, please ensure you register for an Eventbrite account, preferably using an official email address, so that you can opt out of Eventbrite using your data.

The new measures put in place by the Republic of Belarus (Sanctions) (EU Exit) (Amendment) Regulations 2021 are as follows:

Trade sanctions

Prohibition on the provision of technical assistance related to aircraft where this is provided to or for the benefit of specific designated persons. The statutory guidance has been updated to identify specific aircraft that HMG considers relevant to this prohibition, and the UK Sanctions List has been updated to identify those designated persons to whom this prohibition relates (in the ‘Sanctions Imposed’ field).
Prohibition on the import, acquisition and supply/delivery of potash originating in or consigned from Belarus.
Prohibition on the import, acquisition and supply/delivery of petroleum products originating in or consigned from Belarus, as well as related provision of technical assistance, financial services, funds and brokering services.
Prohibition on the export, making available, supply/delivery or transfer of items that could be used for the interception or monitoring of telecommunications in Belarus, as well as related provision of technical assistance, financial services, funds and brokering services. This prohibition also covers the provision of interception and monitoring services to or for the benefit of the Government of Belarus.
Prohibition on the export, making available or supply/delivery of items used in the manufacture of cigarettes.
Prohibition on the export, making available, supply/delivery or transfer of dual-use items where they are for military use or military end-users, as well as related provision of technical assistance, financial services, funds and brokering services.
The statutory guidance has also been amended to remove licensing grounds from the existing arms embargo related to biathlon rifles, and .22 calibre firearms.

Financial sanctions

Prohibition on dealing with transferable securities and money-market instruments with a maturity exceeding 90 days issued after 1200 on 9th August 2021, by or on behalf of Belarus, a Belarusian authority, credit or financial institutions which are majority owned by Belarus or a Belarusian authority, as well as various categories of entities owned by them or acting at their behalf/direction. Prohibition on granting loans to the above entities.
Prohibition on providing insurance and reinsurance to Belarus, a Belarusian authority, as well as various categories of entities owned by them or acting at their behalf/direction.

Aviation sanctions

Provision allowing the Secretary of State to direct the Civil Aviation Authority to refuse, suspend or revoke permissions in respect of Belarusian aircraft. Provision allowing air traffic control to direct Belarusian aircraft not to overfly the UK, allowing an airport operator to direct Belarusian aircraft not to land at an airport, and allowing the Secretary of State to direct air traffic control and airport operators accordingly.

We look forward to hearing from you.

Sanctions Unit,

Foreign, Commonwealth and Development Office.

EU vote to delay the Export Heath Certification compliance requirement supporting GB supply of products of animal origin, from 21st August to 15th January, 2022

Wed, 11 Aug 2021 15:52:10 GMT

DEFRA (Department for Environment, Food and Rural Affairs) have contacted GB traders to advise of a change in the EHC requirement needed to support GB exports of products of animal origin.

Seafish, the public body that supports the UK seafood industry, confirmed via their website that they had received communication from DEFRA confirming the delay in the EHC implementation date for GB exporters.

Background

A change earlier in the year to the EU Animal Health Regulation (AHR) required that an Export Health Certificate, signed by competent authority (a Vet), would be necessary for all goods subject to the regulation for export from 21st August, 2021.

The EU have voted to delay that regulatory requirement until 15th January, 2022, which will be very welcome news to British food producers, retailers and farmers involved in the GB to EU food supply chain.

In effect, the change would mean that any EHC signed before 15th January, 2022 would be valid until 15th March, 2022. A very welcome breathing space.

Exports affected will include all products of animal origin, live animals, germinal products, and composite products, the latter affecting the movement of GB origin sausages as an example

To date there is no available information on the Gov.UK website, but it is anticipated that the information will be for general publication in due course

https://www.seafish.org/trade-and-regulation/uk-exit-from-the-eu/changes-to-health-certificates-for-seafood-exports-to-the-eu/

CDS is coming! Are you ready?

Tue, 10 Aug 2021 11:58:40 GMT

CDS nothing to fear, will you be ready? We are!

Strong & Herd have been using CDS since 2018 in the initial testing phase read on to find out how we can help ease the transition.

CDS is set to replace the current CHIEF* customs declaration system which is being phased out from September 2022.

CDS is currently used for import declarations into Northern Ireland from Great Britain and the Rest of the World, and from 1 October 2022 it will be the only system in use for import declarations into Great Britain. Exports will follow on 1 April 2023 when CDS will be the only system that can be used to make export customs declarations.

It is likely that HMRC will adopt a phased approach to the introduction of the CDS import and export modules. More information will follow in due course.

In the meantime, anyone who currently uses the CHIEF customs declaration system will need to upgrade their software systems to accommodate CDS. More importantly, current CHIEF users will need extensive training on CDS before they will be able to successfully complete customs declarations.

CDS User Training with Strong and Herd

Strong and Herd has been training people on the CDS system for over two years, with both public courses and individual bespoke training.

We cover both CDS modules – Exports and Imports, and we do it in a simple user-friendly way through our monthly half-day courses.

We also have access to CDS software solutions for training on the Trader Dress Rehearsal (TDR) service. Our technical experts are fully conversant with all aspects of the CDS system, having successfully completed a variety of different customs declarations on TDR through different software systems, and are available to train potential CDS users through their own software choices.

Don’t forget - there is no replacement for the CHIEF on-line service!

For those of you that currently access CHIEF using the free on-line service, there is no such facility within CDS. All users must have a dedicated software solution. Please see HMRC's guidance - Preparing for the Customs Declaration Service.

To enrol on an S&H CDS Public Course, please visit our website here for Exports and here for Imports.

What our delegates say......

"Step by Step approach through data elements and the categorisation of red, amber, green depending on change from current system and difficulty - also liked the referrals back to Descartes and how it would work in practice"

"Solutions and answers about import and export"

"Very clear and detailed training with plenty of scope for questions and discussion"

If you would like bespoke training on your own software system, please contact us at info@strongandherd.c o.uk or on 0161 499 7000 for a quotation and suitable dates.

*CHIEF is the Customs Handling of Import and Export Freight system that has been in service in the United Kingdom since 1992.

CHIEF MIGRATION TO CDS DATES ANNOUNCED

Tue, 03 Aug 2021 14:24:47 GMT

HMRC have announced the migration dates for the HMRC CHIEF system to the CDS system.

The dates for the migration of the CHIEF (Customs Handling of Import Export Freight) system have been long awaited by those involved not only in making customs declarations, but to those involved in the critical development and implementation of the software and IT methods that link into and support the making those declarations.

HMRC have confirmed that the more mature CDS Import function will go live initially, with the function that supports Exports to follow six months later.

The migration dates are confirmed as follows:

1. 30th September 2022 : Ability to make import declarations on the CHIEF system will be removed.

2. 31st March 2023 : Ability to make export declarations on CHIEF and the NES (National Export System) will be removed.

It is intended that CHIEF will remain available until mid-2023 to enable existing declarations to be closed and that further information on the exact arrangements regarding CHIEF services will be released in due course.

Be Prepared for the Business Changes Required

HMRC have indicated that the design of the CDS system looks forward towards future border requirements as the country moves beyond EU Exit, and have urged businesses towards making appropriate arrangements to adapt business processes and IT systems for the change in good time.

CDS has a different approach to the presentation of the data needed to make a compliant declaration than the older CHIEF system, and general business provision may include staff training and consideration to the updating of a business’ financial information needed to support CDS use.

Adequate preparation will be key.

Staff Training

Traders may apply to access the Trader Dress Rehearsal (TDR) service to enable trial declarations to be submitted in a ‘production like’ system. Details are included in the link below

https://www.gov.uk/government/news/customs-declaration-service-to-become-uks-single-customs-platform

Preparing for the Customs Declaration Service (www.gov.uk)

Importing Goods from the European Union (EU) from 1 October 2021

Wed, 28 Jul 2021 11:44:15 GMT

New actions required for businesses importing products of animal origin into Great Britain from the EU.

From 1 October 2021, there will be new requirements to continue importing animal products for both human consumption and non-human consumption from the European Union into Great Britain.

Some of the requirements include, pre-notifying authorities that consignments will be entering Great Britain and uploading a certified Export Health Certificate using the Import of products, animals, food and feed system (IPAFFS).

It is important that businesses take the necessary preparatory steps to ensure they can comply with the new requirements. To assist with the new requirements for October, DEFRA will be holding webinars for traders - with a panel of experts to give traders more information and to answer their questions.

Registration for webinars can be booked at gov.uk

Trading in Northern Ireland

Thu, 15 Jul 2021 14:38:15 GMT

Trade has increased significantly between NI & the Republic of Ireland due to the new NI Protocol.

If your business has been affected by this legislation take a look at our new Trading with NI course where Sarah Adams-Greener Customs & International Trade Advisor will help you to clarify what is needed to continue to trade.

Trading with Northern Ireland

Brexit: Cross-border trade rise reflects NI Protocol problem says Frost By John Campbell, BBC News NI Economics & Business Editor

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New Event! Introduction to UK Export Licensing, Virtual Learning Q&A Clinic

Thu, 15 Jul 2021 09:54:05 GMT

"I’m really looking forward to the new S&H Export Control Clinic. Our aim has always been to provide our delegates with the best training experience. We’ve created the clinics to offer an additional benefit to our Virtual Learning. I hope that you are able to join us for this new offering to the S&H services" Steve Berry Export Compliance & International Trade Advisor

To provide additional help to our course delegates Strong and Herd are pleased to announce our first Virtual Learning Clinic.

Created to support our “Introduction to UK Export Licensing” training on August 12th the clinic will run on Monday 16th August 10am – 11am. Our aim is to provide delegates with the opportunity to supplement their learning on the full day’s training by; asking questions that may have arisen after the training, providing a platform to discuss aspects of the training content in relation to their business activities and reviewing relevant case studies.

These new clinics are an optional extra for delegates attending the training course on the 12th August and can be booked at the time of registering.

A practical review of how to manage the export of goods that come under Export Licensing Controls as dual-use or military items. It covers how to use export licences (SIEL, OGEL, OIEL), exporters’ responsibilities and record keeping, how prepare for the ECJU audits and how to ensure freight companies make correct declarations. Introduction to UK Export Licensing is ideal for beginners or people who need an awareness of this complicated area.

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HMRC publish Customs Information Paper (CIP) 1 – Goods arriving in GB without an import declaration

Fri, 09 Jul 2021 10:43:26 GMT

If, as a UK business you have received goods from EU suppliers or returns from EU customers with no supporting paperwork to assist with the cross-border compliance requirements, now is a good time to review these arrivals to ensure they are declared correctly to HMRC.

The last thing you need is a fine or penalty for not being aware something was your responsibility to sort out, and sadly under customs regulations it is always the importer’s responsibility, not the sender or carrier of goods, to ensure things are done compliantly.

Some media information may have confused UK businesses. Though the EU and UK have a Trade Cooperation Agreement (TCA) this does not mean that trade goes on as it did before the beginning of 2021. In fact, to use the TCA effectively and compliantly, more compliance evidence is necessary, not less than was needed before the end of 2020.

What has happened:

1st January 2021 HMRC introduced import easements also called “delayed declarations” which meant that a haulier or carrier could simply drive through a UK port to make a UK delivery without making a customs declaration. This scheme for UK Import Easements was originally published in the Border Operating Model (BOM) and though it was due to end 30th June 2021 was extended beyond the original BOM published dates and will be available until 31st December 2021. On the plus side, this has enabled non-controlled goods to cross into the UK without any import formalities and has maintained, for many, the same speedy deliveries we had from EU companies while the UK was a member of the Customs Union. In practice, a haulier only needs minimal information to bring non-controlled goods into the UK; mainly evidence of a UK trader’s GB EORI number. But there are some caveats to this easement that could easily be missed by a company unused to importing processes or one that assumes their EU supplier or haulier is going to sort it all out.

The “delayed declaration” scheme can only be used if:

1. The UK company has a GB EORI and is aware of the delivery

2. The importing company has a UK Deferment Account (or one in place by the time the full declaration is submitted)

3. At the time of arrival all import details are recorded by the importing company into their own records (known as transitional EIDR – entry into declarant’s records) to enable a full declaration to be submitted at a later date, no later than 175 days of goods arrival in the UK

4. VAT is calculated by the importer and included on the relevant quarterly VAT return linked to the date of physical arrival.

5. A full customs declaration and payment of import duty will be made no later than175 days of the goods arrival.

The first batch of full declarations relating to the first arrival of goods from the EU early January 2021 was due 25th June 2021 on a rolling 175-day procedures. But it appears that some UK companies are not arranging for the full declarations because they were not aware that the arrival was under this delayed declaration scheme. HMRC are concerned about this as it is an offence to import goods without a customs entry being subject and the relevant import duty being paid. The HMRC CIP1 issued 6th July 2021 is to prompt businesses to check what has been received from the EU to ensure an import customs declaration is made.

For those companies that have established experience of importing and robust compliance processes, an unsolicited delivery from an EU supplier should be traced quickly through commercial records, to enable a customs declaration to be made in good time.

For a UK business with no experience of importing, this could be an issue that may not surface until a future HMRC or VAT audit

Therefore, this would be a good time to establish whether any of your deliveries of goods imported from the EU have had the appropriate customs declaration made and that any applicable duty or VAT has been appropriately provisioned.

A few thoughts to alert a business to a potential lack of compliance:

1. Deliveries from the EU have required import declarations into the UK since January 1st, 2021, but not necessarily at the time the goods crossed the border.

2. A UK business is responsible for import declarations on goods they have received unless they know that the sender has been able to complete the import formalities. Which would require an EU company to have a GB EORI and be able to pay/account for import VAT.

3. An Incoterms ® Rules used on a purchase order may indicate whether the UK business is responsible for import formalities. Only a DDP (Delivered at Place) term could make the supplier responsible for the import procedures, and even then, you must check they are able to fulfil this obligation

4. So, though a UK business may not have control of the physical movement and delivery of the goods they will generally still be responsible for import formalities, the payment of duties and VAT.

Those persons responsible in a UK business for procuring EU supplied goods may not be aware that deliveries from the EU have needed import declarations into the UK, and that the business is responsible for that import evidence being on file for audit. But import customs entries are not just needed for purchased goods, they are required for all arrivals, even, for example, goods being sent back to you after demonstration or for the purpose of repair.

It is a legal obligation to declare goods at import and it is an offence not to. And, as we said above, HMRC default position is that this is the legal obligation of the UK company in receipt of the goods. This is still the case even when the UK business does not select, pay or control the haulier or the delivery.

Top Tips

• If your business has received goods delivered from an EU member state at anytime from the beginning of 2021, investigate how the goods crossed the border and consider your regulatory obligations. The Customs Information Paper explains the next steps from an HMRC point of order.

• Compare the order book against goods that have been delivered.

• Compare your goods inward records to see what has physically arrived from the EU

• Check if there is someone in your business who instructs freight companies to complete import customs declarations and check if all physical arrives have the corresponding paperwork

• Consider registration for the monthly MSS Reports (HMRC Management Support System). The reports represent an invaluable source of information from HMRC of all recorded imports and exports made against a UK business’s GB EORI. There are 2 standard reports available, one for imports the second for exports: each report is £240. These reports can represent a substantial data source for compliance evidence if used as part of a UK trader’s compliance processes. This will help you check physical arrivals against imports that have been declared to HMRC as only imports that have been declared will appear on this report. The ones not showing are the ones to investigate. Registering for the reporting period from 1st January 2021 should capture all imports made against a GB EORI.

Next Steps

If you are continuing to trade with the EU and other overseas markets, ensure you understand how to implement a robust compliance procedure that connects the company’s buying process with the “Goods In procedures” as well as your obligations to HMRC as an importer. Good internal communication can only be a good thing.

Even if you were unaware of the arrival and made no provisions to record the details in your records, this inadvertent non-compliance is serious and could lead to civil penalties or prosecution of UK companies.

Link to the Customs Information Paper (CIP)

Link to the MSS Reports Application Page

While you are here you may be interested in some Strong & Herd LLP training courses related to this

topic, we offer a wide range of high quality training courses to support all importing and exporting activities.

How to Complete Import Customs Entries

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FAILED TO SUBMIT AN IMPORT ENTRY DECLARATION?

Thu, 08 Jul 2021 06:48:09 GMT

HMRC Guidance: Unintentionally receiving goods into the UK from the EU with no import entry or use of EIDR

Customs Information Paper (CIP) 1 has been released covering HMRC’s policy for importers who have or may unintentionally received goods from 1 January 2021 to 31 December 2021 in Great Britain, before they’ve had the opportunity to declare them. It is expected that importers will make sure haulage companies are moving their goods compliantly in future and HMRC will monitor this to identify and address repeated non-compliance.

Where goods have been imported without a declaration these goods have been imported non-compliantly and civil penalties could be charged where HMRC considers it appropriate. Additionally, depending on the goods imported, a liability to import VAT will normally have been incurred on importation, and there may also be a liability to import duty or excise duty.

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Related training courses:

How to Assess Dual Use Controls, by Sandra Strong Mar 12, 2021

Trading with the EU - Customs

How to Complete Import Customs Declarations

The importance of getting it right: Export of Dual Use goods from the UK to EU Member States

Wed, 07 Jul 2021 10:24:53 GMT

Leaving the EU has been impactful for those manufacturers exporting goods subject to Dual Use controls, particularly those exporting controlled goods unaware that regulatory controls may apply at the UK border, and that licences are necessary for their exports.

Recent trends with UK manufacturers: Classification, Ex-Works Incoterm ® and Inaccurate declaration of a Dual Use licence.

· Classification

For those UK companies with no previous experience of exporting before EU Exit, goods’ tariff classification is a new but essential data capture element to enable accurate declaration of goods at export.

Accurate classification using the UK Global Tariff can alert the trader that a dual use control may apply (check export ‘conditions’ against the tariff line), and that a licence is required before export can take place.

It is important to give consideration to the tariff ‘conditions’ for export, and have the goods checked for control applicability.

The back stop for goods control consideration at export may be when the declaring agent calls the exporter to check whether a control applies to the consignment and whether a licence is required. The agent will be calling as the possible control measure has been flagged on input of the tariff code into CHIEF, with the declaring agent prompted to declare a licence or declare the positive statement of No Licence Required.

· UK Ex-works collection by the EU Customer – Is the UK supplier responsible for export compliance?

A UK trader may appear to relinquish responsibility for goods collected on an ex-works incoterm, assuming that the responsibility for export formalities has passed to their customer.

An EU customer making provision for collection of goods from a UK supplier may not have the ability to be exporter of record if not registered to export from the UK.

A busy agent making the declaration on behalf of the customer and provided with the UK supplier’s invoice including the UK VAT number, could readily determine a UK company EORI, and make the customs entry using that information.

Some UK manufacturers are noticing that their ex-works collections are being declared against their UK EORIs without their permission having been given.

Where the consignment contains dual use goods, this will be a serious issue for the UK supplier

Evidence of export is also necessary to enable VAT zero rating.

Without evidence of an export the UK trader could be exposed to 20% VAT charge.

· Classified appropriately with licences incorrectly declared at export.

Falling at the final hurdle - border control:

The manufacturer has successfully classified their goods and holds a valid export licence.

The licence is not declared in Box 44 of the customs entry, leaving the exporter in breach of the licence condition to declare the licence at export. This leaves the exporter vulnerable to a Voluntary Disclosure to HMRC post event.

It can often be Border Force that is alerted to the potential of a licensable consignment being prepared for export, whether by destination, gathered intelligence or simply that the tariff code flags possible controls.

Border Force can impound the goods until the goods control measure is clarified, confirmed and appropriately provisioned.

Accurate classification of goods for export, attention to any licence provision, and due consideration to which contractual party will be responsible for export formalities are now essential considerations for UK manufacturers with overseas sales contracts.

Further information:

The Export Control Joint Unit published further guidance on dual use licence declarations in the Notice to Exporters 2021/07 dated 11th June 2021.

The same guidance explains the licence application process, and the dual use open licences that are available to UK exporters. Notice to Exporters

EU Dual Use Regulation

While you are here you may be interested in some Strong & Herd LLP training courses related to this

topic, we offer a wide range of high quality training courses to support all importing and exporting activities.

Introduction to UK, EU and USA Export Licensing

The Dual-Use Exporter: Understanding the Dual-Use Export Controls

CHIEF: Customs Handling of Import Export Freight: service availability and issues - GOV.UK (www.gov.uk)

International Trade Up-dates into your inbox twice a month

Spotlight & Training Updates Newsletter

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UPDATE 1-07-2021 CHIEF/ NCTS & GVMS DOWNTIME 3 & 4 July 2021

Thu, 01 Jul 2021 11:44:11 GMT

HMRC announce downtime for 3 systems CHIEF/ NCTS & GVMS over the weekend 3 & 4 July 2021

On Tuesday HMRC informed us of some planned downtime for CHIEF this weekend. After carefully considering the impact on Industry, HMRC are postponing the planned 4th July CHIEF downtime and will advise a new date in due course.

We apologise for the confusion and inconvenience.

The planned downtime to NCTS and GVMS is still expected and you can find more details on any periods of downtime or system issues at the following links:

GVMS: Register for the Goods Vehicle Movement Service: service availability and issues - GOV.UK (www.gov.uk)

NCTS:

Email - New Computerised Transit System email: service availability and issues - GOV.UK (www.gov.uk)

Web - New Computerised Transit System Web: service availability and issues - GOV.UK (www.gov.uk )

XML - New Computerised Transit System XML: service availability and issues - GOV.UK (www.gov.uk)

Related training courses:

CHIEF Data Entry - Exports

CHIEF Data Entry - Imports

Egypt: Mandatory Advance Cargo Information (ACI) declarations delayed until 1 Oct 2021

Thu, 01 Jul 2021 08:10:01 GMT

Extension until 30th September 2021 agreed on controls coming in for chilled meats moved GB to Northern Ireland

Egypt has changed the date for the mandatory Advanced Cargo Information (ACI) declarations from July 1st to October 1st: https://www.nafeza.gov.eg/en/site/aci-trial-extension .

This is a pre-registration system for shipments before their arrival at Egyptian ports. To enable goods to be released on arrival in Egypt without delay.

Exporters to Egypt must now register to use the blockchain document transfer platform “Cargo X” which links to the NAFEZA system (below) to comply with new processes from 1st October to cross the Egyptian customs border.

Pre-shipment the registered importer to confirm Advanced Cargo Information Declaration (ACID) number to be included on all shipment documentation to be uploaded to the “CargoX” system that interfaces with NAFEZA. Documentation should also include the importer and exporters NAFEZA number.

Exporters to Egypt may need to provide a draft transport document, i.e. bill of lading, air waybill, railroad waybill, or something similar, like an itemized commercial invoice or itemized packing list, for ACI.

Without the ACID number, goods will be rejected and returned from the ports without discharge. Note from the Egyptian Embassy in London:

“The implementation of the system began from April 1, with the actual implementation of the system binding as of October 1st, 2021, and since the aforementioned system aims to assess and identify risk elements prior to shipment to Egypt, depending on the initial data of the shipment (data of the source, importer, item. … etc.), you will need to notify the system to inform members 48 hours prior to shipment.”

ACI filing price will cost US $50.

For further information on Egypt ACI, please check the link below:

https://www.nafeza.gov.eg/en/site/aci-faq

Related training courses:

Tr ading With Northern Ireland

EU extends concession on chilled meat from GB to NI

Thu, 01 Jul 2021 07:58:56 GMT

Extension until 30th September 2021 agreed on controls coming in for chilled meats moved GB to Northern Ireland

The EU formally agreed on 30th June 2021 to extend the 3-month delay in banning the imports of chilled-meats from GB into the EU and Northern Ireland. Though the EU does not allow chilled meats - including sausages, meat pies, curries, lasagne, and other ready-made meals - into its single market from any non-EU country, the Brexit deal came into force in January 2021 with a six-month delay on the ban on between Great Britain and Northern Ireland, to help businesses adjust to the change. The UK government has called this bank “bonkers” when applied to Great Britain and Northern Ireland and on 17th June 2021 the Brexit minister, David Frost, wrote to Brussels requesting a further delay, until 30 September 2021.

Such checks since January have been confined to goods destined for stores in the neighbouring Republic of Ireland, an EU member but not on arrivals into Northern Ireland, which under the Northern Ireland Protocol remain within the Customs Union of the EU. The European Commission has said the extension was granted the UK in an attempt to defuse a row that has poisoned post-Brexit relations giving the two sides more time to resolve a fierce dispute over the Northern Ireland protocol.

The request was granted after the UK agreed not to change domestic law on meat products for the next three months. To assuage EU concerns about British meat illegally entering the EU, products will be labelled “UK only” and sold exclusively in Northern Irish supermarkets. The U.K. unilaterally delayed the same enforcement of sanitary and phytosanitary standards on goods staying in Northern Ireland by six months to 30 September 2021.

Related training courses:

See update 1-07-2021 CHIEF/ NCTS & GVMS DOWNTIME 3 & 4 July 2021

Tue, 29 Jun 2021 14:53:53 GMT

HMRC announce downtime for 3 systems CHIEF/ NCTS & GVMS over the weekend 3 & 4 July 2021

We have been advised that there will be a period of planned work to some of our systems on Sunday 4th July which will result in an outage to CHIEF between 18.00 and 20.00. See update 1-07-2021

A reminder of some other planned downtime for our systems this weekend:

HMRC had previously planned to take NCTS down for over two hours during the morning of June 16th but following feedback from industry we reduced the duration and scope of that outage. The work that we removed from June 16th will now be conducted at 01:00 on Sunday July 4th with completion expected by 03:45.

GVMS will also be down during that period as we deliver an upgrade; this will take place on the 3rd of July at 23:59 BST to 05:00am BST 4th of July (5 hours).

Related training courses:

CHIEF Data Entry - Exports

CHIEF Data Entry - Imports

Case Study for the use of Customs Procedure Codes (CPC) 22 00 000 and 40 00 065

Wed, 16 Jun 2021 14:05:18 GMT

Tools leaving the UK to be sharpened in an EU country and re-imported into the UK (not under warranty)

CPC 22 00 000 can be used to for duty free goods that are being temporarily exported outside the UK for process, repair, adaptation, reworking or making up. Use of this CPC constitutes a declaration that the goods are intended for temporary export, for the purpose of processing or treatment outside the UK, and for re-importation after completion of the process.

Note that this procedure can only be used 3 times in any 12 month period.

In our scenario, the tools are being temporarily exported outside the UK for a process (sharpening). They will then be re-imported to the UK after completion. The “Process”, sharpening in this case, would be subject to VAT on importation to the UK under the following guidelines.

CPC 40 00 065 should be used to re-import the duty free goods after processing, with VAT chargeable at importation (unless exemption is claimed) on the following value:

The freight charged for the transport to and from the processor’s premises (but not insurance)

The price charged for the process, repair or service, including any charge for parts and materials

To declare the amount of VAT payable on an import customs declaration, Tax type code B00 should be used, with code ’VAT’ entered after the VAT rate code in box 47. The calculated amount (in GBP) is to be entered in the Amount column to the right of the 'VAT' code.

HMRC advises that the use of CPC 40 00 065 constitutes a declaration that the goods:

• were previously exported outside the UK

• were exported using CPC 22 00 000 in box 37 of the export SAD

• were intended at the time of their export to be re-imported after completion of the treatment or process outside the UK

• have been repaired, processed, adapted, reworked or made up outside the UK

• ownership was not transferred to any other person at exportation or during the time they were outside the UK

To conclude, the tools which were temporarily exported for a process (sharpening) are subject to VAT at importation on the cost of the process.

VAT Exempt - Warranty Repairs

An example of VAT not being payable upon importation would be where the “tool” was under a warranty or was faulty and was being repaired as a part of this cover. VAT exemption would apply and therefore VAT would not be payable at re-importation.

To be clear, if the process were carried out free of charge, for example because the goods were covered by a warranty, a guarantee or a service agreement, VAT would not be payable at re-importation.

To claim VAT exemption under tax type code B00, code ’VAX’ should be entered after the VAT rate code in box 47 of the import declaration.

While you are here you may be interested in some Strong & Herd LLP training courses related to this

topic, we offer a wide range of high quality training courses to support all importing and exporting activities.

Inward Processing Relief - IP Workshop

International Trade Up-dates into your inbox twice a month

Spotlight & Training Updates Newsletter

Subscribe to our free information emails covering international trade topics ....

UK- AUSTRALIA TRADE DEAL

Tue, 15 Jun 2021 14:05:51 GMT

The UK has secured a trade deal with Australia eliminating tariffs on all UK goods and boosting jobs and businesses across the country, in the first major trade deal negotiated from scratch by the Government since we left the EU.

The main elements of the deal were agreed by Prime Minister Boris Johnson and Australian Prime Minister Scott Morrison at a meeting in Downing Street last night [Monday 14 June 2021]. A final Agreement in Principle will be published in the coming days.

British farmers will be protected by a cap on tariff-free imports for 15 years, using tariff rate quotas and other safeguards. The new Free Trade Agreement means iconic British products like cars, Scotch whisky, biscuits and ceramics will be cheaper to sell into Australia, boosting UK industries that employ 3.5 million people across the country. The UK-Australia trade relationship was worth £13.9 billion last year and is set to grow under the deal, creating opportunities for businesses and producers in every part of the UK.

Britain has also applied to join a trans-Pacific trading bloc, of which Australia is also a member, that includes other countries where minister predict demand for digital, legal and professional services will grow rapidly. That deal, Comprehensive and Progressive Agreement for Trans-Pacific Partnership, is also seen as important economic counterweight to China's influence in the region.

Link: Top 10 Benefits of UK-Australia Deal

BBC News coverage 15-06-2021

Relevant Training courses

Effective Distribution Strategies for Exporters

UK Guidance on importing live animals updated

Tue, 15 Jun 2021 07:55:37 GMT

15 June 2021: The UK has updated its guidance on how to import or move live animals, including equines, animal products and high risk food or feed not of animal origin from the EU and Northern Ireland to Great Britain.

This guidance applies to businesses in Great Britain (England, Scotland and Wales) importing or moving the following goods from the EU and Northern Ireland:

• high risk food or feed not of animal origin (HRFNAO)

• animal by-products (ABP)

• live animals, including equines from Norway

• germinal products (semen, ova and embryos)

You need to follow different guidance if you’re importing:

• food and drink that are products of animal origin (POAO)

• composite products from the EU and Northern Ireland

• live animals, including equines and animal products from non-EU countrie s

LINK

Relevant Training courses

STEEL SAFEGUARD MEASURES

Fri, 11 Jun 2021 18:11:16 GMT

The Trade Remedies Authority has today (Friday 11 June) published its final recommendation to the Secretary of State for International Trade on the future of the UK’s steel safeguard measure.

The Trade Remedies Authority has today (Friday 11 June) published its final recommendation to the Secretary of State for International Trade on the future of the UK’s steel safeguard measure. After reviewing available evidence, the independent body has recommended the extension of the UK steel safeguard measure across 10 product categories for a further three years, and the revocation of the measure across nine product categories.

Pursuant to the relevant regulations, the Secretary of State will now decide whether to accept the TRA’s recommendation or to reject it.

The TRA published a statement of intended preliminary decision (SIPD) on 19 May , giving producers, importers, exporters, other interested parties and contributors who provided information during the review process, the opportunity to comment on its initial findings. The recommendation to the Secretary of State takes into account close analysis of the 44 submissions that were made to the TRA following the SIPD.

Relevant Training courses

Advanced Guide to Import, Export and Customs Procedures

EU Dual-Use Export Controls

Fri, 11 Jun 2021 11:46:00 GMT

The new EU export control regulation now published in the Official Journal

The EU now has new tools to address risks associated with trade in cybersurveillance and emerging technologies and promote strategic autonomy. The EU upgraded its legislation on the export controls applicable to sensitive dual-use goods and technologies such as cyber-surveillance tools on 10th May 2021 when the Council adopted a regulation modernising the EU system for the control of exports, brokering, technical assistance, transit and transfer of dual-use items. These are goods, software and technology that can be used for both civilian and military applications.

The new regulation strengthens controls on a wider range of emerging dual-use technologies, and the coordination between member states and the Commission in support of the effective enforcement of controls throughout the EU. By introducing due diligence obligations for producers, the new rules also give companies an important role in addressing the risks to international security sometimes posed by dual-use items.

Finally, the dual-use regulation paves the way for better coordination between the EU and partner countries in enhancing international security through more convergent approaches to export controls at global level.

Link to OJ

Relevant Training courses

Introduction to UK, EU and USA Export Licensing

The Dual-Use Exporter: Understanding the Dual-Use Export Controls

FRANCE: NEW REQUIREMENTS FOR DRIVERS COMING FROM THE UK BY SEA

Wed, 09 Jun 2021 11:19:35 GMT

French authorities have updated their requirements for individuals entering France from the UK.

While professional drivers are exempt from the testing and isolation requirements, they must fill in both:

• A sworn statement that they do not show any COVID-19 symptoms. At the time of issuing this alert, the form has not been updated and still suggests that arrivals from the UK are exempted, although the exemption was lifted on 31 May 2021.

• The European Certificate for International Transport (also known as “Annex 3” of the communication on green lanes).

These documents must be handed to the transport company before boarding or to the border control authorities.

Reminder of curfew hours in France:

• Since 9 June 2021 – 23:00-06:00.

• From 30 June 2021 – complete lifting of the curfew.

To travel in France during the curfew hours, the following forms must be filled in LINK TO OFFICIAL WEBSITE for both documents:

• Professional reason – “Justificatif de déplacement professionnel”

• Other essential reasons – “Attestation de déplacement dérogatoire” (available in English)

Related training courses:

Trading with the EU – Trade Matters

UK-CPTPP ACCESSION STEPS AGREED

Tue, 08 Jun 2021 16:07:01 GMT

UK-CPTPP ACCESSION STEPS AGREED

On the 2nd June 2021, the CPTPP nations, made up of 11 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam), covering 500 million people, have agreed that the United Kingdom's accession process to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership can now begin. A post-Brexit UK is increasingly looking to strengthen its trade ties with Asia and joining the CPTPP is aligned with that strategy. The UK will continue to work closely with Japan, as this year’s chair of the CPTPP commission, alongside the other CPTPP nations to progress negotiations as quickly as possible. Read More

Training courses that cover this subject include

Selecting Export Markets

UK TRADE REMEDIES AUTHORITY ESTABLISHED 1ST June 2021

Tue, 08 Jun 2021 16:00:30 GMT

The UK Trade Remedies Authority (TRA) was officially established on 1st June 2021 by the new Trade Act 2021.

This new independent unit is responsible for investigations into Anti-Dumping and Countervailing import duty issues (AD/CVD) to help defend UK economic interests from unfair international trading practices. The Trade Act 2021 received Royal Assent on 29 April 2021, after a seemingly long time spent passing through the various committee stages in Parliament. The TRA has now replaced the interim Trade Remedies Investigations Directorate (TRID), which was part of the Department for International Trade. Though a non-governmental public body, the TRA will also work on individual cases to impose trade defence measures as recommended by the Secretary of State for International Trade (SoS). Read More

Training courses that cover this subject include

Introduction to Customs Procedures

Navigating EU VAT - New VAT regulations in the EU from 1st July, 2021

richard@innuo.co.uk (Richard Jaques) — Tue, 08 Jun 2021 14:12:46 GMT

Changes to EU VAT from July 2021

Since the end of the Transition period, accounting for VAT has been a major issue for UK businesses making VAT payable deliveries into the EU.

Those UK businesses opting to pay VAT on import to an EU member state, have been required to appoint a local fiscal representative to make the appropriate VAT returns (and where applicable, any VAT reclaim) on their behalf, in that member state.

The new VAT regulation may affect some of those UK businesses that have employed fiscal representation.

For those businesses selling on an on-line marketplace, VAT management will change completely, as part of EU long-term measures to combat VAT fraud.

From the 1st July 2021, some of these changes will include:

1. Abolishing distance sales thresholds and extending the Union MOSS scheme to cover sales of goods as well as all B2C services.

2. Abolishing the small consignment relief of €22 and introducing an import scheme for goods up to €150 in value where VAT must be charged at the point of sale and accounted for using IOSS – The Import One Stop Shop

3. On-line marketplaces such as Amazon will become the ‘deemed supplier’ of goods in certain situations, which will mean their having responsibility for VAT collection at the point of sale

4. Extending the non-Union (3rd country) MOSS to cover all B2C supplies of services.

VAT in International Trade Training Course

The VAT implications of supplying goods or services to overseas customers or receiving supplies from overseas suppliers are often not understood, and failure to account for VAT properly or follow the correct procedures could lead to penalties. This course takes you through the rules in a thorough, logical and enjoyable way, with plenty of worked examples.

OneCall® SME Brexit Support Package

niamho@strongandherd.co.uk (Niamh O'Connor) — Mon, 17 May 2021 19:06:29 GMT

OneCall® SME Brexit Support Package

HMRC Grants Available

What is it?

A newly developed Support Package enabling you to take full advantage of HMRC grant funding for one-to-one support plus ongoing business assistance through our subscription service.

Grant funding of up to £2,000.00 is now available through the SME Brexit Support Fund.

https://www.customsintermediarygrant.co.uk/sme-brexit-support-fund

Download the Proposal Form and submit the document to PwC.

Or Contact S&H for a quotation to support your grant application at

enquiries@strongandherd.co.uk

What does the package cover?

• One-to-One bespoke support for up to four people with an International Trade specialist, to discuss your specific needs

o One 2-hour session or two separate 1-hour sessions

• Eight hours of business support time through our OneCall helpline, to use as and when required

o Five to fifteen minute slots for fast email support

• Five delegate places on our public training courses

o Or a half-day bespoke training session for up to 12 delegates

• An open invitation to our OneCall members' free 1-hour fortnightly sessions, covering updates on the latest Customs and International Trade issues

o And plenty of time to ask questions.

• Discounts on further training courses, if required

• Access to a wealth of International Trade information via our website members’ area

https://www.training.strongandherd.co.uk/w/courses/51-onecall-sme-brexit-support-package

How to... Assess Dual Use Controls

Fri, 12 Mar 2021 14:26:40 GMT

In this “How to …” article we are going to summarise a complicated area of international trade:
establishing if your goods are subject to export licensing controls under the dual-use regulations.

Dual-use controls can apply to the most unlikely goods as it may be down to the material it is made of (rubber o-rings) or the technical capacities of the goods (certain valves) as well as what it might do (fertilizers = explosive). There is a lot of misunderstanding around this term dual use. It is not reliant on the end-use of the goods or just the fact it could be used in both a civil and military environment without modification. It is about the inherent capabilities being specifically described within the

Dual-Use Control List.

Why is it important?

Now the UK has left the Customs Union of the EU, dual-use controls are fully in place on the movement of goods and related technology. Before 1st January 2021 companies trading dual-use goods/technology with the EU Member States could do so without hindrance most of the dual-use controlled items did not require an export licence to go UK to EU or visa versa. Now, all such items require licence permissions which means thousands of businesses that have traded without the need for an export licence come under these controls for the first time. The penalties are high: to export controlled items without a licence is a criminal offence.

But what is it?

The Dual-Use controls stem from an international agreement, called the Wassenaar Arrangement,

that aims to control the distribution of common, commercial items that could be used, without

modification, illegally. This includes:

• Terrorism,

• Development of chemical, biological or nuclear weapons (WMD) or the means to deliver them,

• Being used for illegal activities, ie people trafficking, internal repression, and

• To enhance the military capability, including surveillance and counter measures

The Wassenaar Arrangement (WA) received final approval by 33 co-founding countries in July 1996 and began operations in September 1996 and, it could be argued, has been causing confusion ever since LINK .

How does it work?

The Dual-Use Control List orders goods/technology and software into 10 categories and exporters must read through the list to ensure their goods do not meet the description or technical parameters outlined in great technical detail. If they are described (what we call “caught”) in the List they are Dual-Use Controlled and you need a licence to export, if they aren’t “caught” they are still termed dual-use goods and could require an export licence for certain end-uses (eg military use,

nuclear) or to certain destinations, eg North Korea.

It is worth noting that the controls are not just on physical exports of goods but also on intangible transfer of controlled software or technology, which, in this digital world, is happening more and more.

Step by Step - How To Asses Dual Use Controls

It isn’t easy to identify whether your exports are controlled or not but it is the exporter’s legal responsibility to be aware of the export regulation that could apply to both your physical and intangible supplies. If the answer to this is 'Yes', then a licence will be required before you can export. If the answer to this is 'No', then you will only require a licence if there are WMD or Military

End Use concerns about overseas entities who you intend to deal with.

If the answer if “I don’t know” then it takes just one detainment of your exports or a visit from the non-proliferation team of HMRC to stop you from exporting that shipment, or altogether for a period of time until they investigate “intent”. To repeat, the penalties are high: to export controlled items without a licence is a criminal offence.

While you are here you may be interested in some Strong & Herd LLP training courses related to this

topic, we offer a wide range of high quality training courses to support all importing and exporting activities.

Introduction to UK, EU and USA Export Licensing

The Dual-Use Exporter: Understanding the Dual-Use Export Controls