Plan Insurance Blog

Understanding The New UK Customs Controls

A number of important laws governing the import and export of commodities into and out of the United Kingdom were changed on 1st January 2022. This includes requirements for customs declarations, origin rules, and border restrictions, among other things.

Quick Facts…

  • Starting 1st January 2022, new UK customs controls were implemented. Organizations must comprehend these developments in order to avoid any operational disturbance.
  • Organizations must make preparations to guarantee compliance with new rules and to avoid unnecessarily disrupting or delaying their operations.

In 2022, more changes relating to the UK’s withdrawal from the EU will take effect. A number of new customs regulations went into effect on January 1st. As a result, businesses must educate themselves on the new requirements and make adequate preparations.

Customs Declarations

Organisations will no longer be able to postpone import customs filings after 2021. At the time of import, the majority of consumers will be required to submit declarations and pay any applicable levies.

With this shift in mind, businesses should consider best practices to prevent delays or interruptions in operations. It’s critical to have a strategy in place for paying tariffs and filing customs declarations. Using an intermediary to manage declarations on your behalf might be beneficial.

When filing customs declarations, businesses must use the relevant codes for both the country of origin and the final destination of the products. It’s worth noting that the EU country code will be phased out of UK systems in the not-too-distant future. As a result, organisations will be compelled to utilise each EU member state’s unique country code.

Simplified declarations can be used with the permission of Her Majesty’s Revenue and Customs (HMRC). This means that items can be delivered immediately to a designated customs process without the need for a full declaration at the time of release. It may take up to 60 days to apply for this authorization, and organisations will be needed to establish a duty deferment account.

Rules of Origin

Reduced Customs Duty rates—also known as tariff preference—on both imports and exports may be possible under the Trade and Cooperation Agreement (TCA) between the UK and the EU.

To qualify for these advantages, businesses must be able to demonstrate that imported products came from the EU and that exported items came from the UK. It’s vital to understand that this implies things have to be created or made in the relevant regions, not just delivered or purchased there.

There are a couple of techniques to verify the origin location of products in order to qualify for tariff preference, including:

  • Statement on origin – The exporter must fill out this form to confirm the relevant origin place.
  • Importer’s knowledge – An importer can claim tariff preference if they know where their products came from.

In addition to a statement of origin, UK companies exporting products to EU member states may be required to produce a supplier declaration. EU clients will be obliged to pay the full amount of Customs Duty if evidence of origin cannot be produced to EU customs officials, and further penalties may be imposed.

Supplier disclosures will be required when items are shipped beginning 1st January 2022. This is an important distinction to note since, until 2021, it was possible to export products to the EU utilising tariff preference while collecting supplier declarations afterwards. For items exported in 2021, supplier declarations should be submitted to ensure UK origin. If a supplier declaration for items exported this year cannot be supplied, customers should be notified.

Border Controls

Beginning in 2022, ports and border crossings will be used to monitor imports and exports between the UK and the EU. As a result, products without a legal declaration or clearance by customs will not be permitted to circulate. If products cannot be examined at the port or border, they may be sent to an interior border facility for inspection.

For goods carried via border sites that employ the arrived exports procedure, organisations will be required to submit a ‘arrived’ export declaration. It’s critical to understand the delays and disruptions that will occur if suitable procedures are not followed. Exports will be turned away from a port or border if they are not authorised to leave the UK otherwise.

You guarantee a seamless transition into these new laws, make sure to check with couriers, freight forwarders, and other parties engaged in the transportation of products.

Also Noteworthy

On all relevant customs declarations, importers who are registered for value-added tax (VAT) will be able to continue to employ postponed VAT accounting. Unless HMRC informs you differently, this includes extra declarations. It’s vital to note that items qualifying for tariff preference that are imported from the EU will still be subject to standard VAT laws.

Beginning in 2022, organisations should be aware of changes to commodity codes. These codes are used to categorise imports and exports all around the world. Following the World Customs Organization’s most recent assessment, UK codes were changed on 1st January. Organizations should keep informed about these developments and make any required modifications. Click here for more information on commodity codes.

Beginning 1st July 2022, more adjustments to customs controls are planned to take effect. The following aspects of the import and export procedure will be affected by the new rules:

  • Requirements for complete safety and security for all imports will alter.
  • Export health certifications will be subject to new regulations.
  • Phytosanitary certifications will be subject to new rules.
  • Physical checks at border checkpoints for sanitary and phytosanitary commodities will be altered.

Further developments that may affect supply chains and transportation procedures should be kept in mind by businesses.

In Conclusion

Brexit continues to have a big impact on both the UK and the EU. To avoid unwanted business interruptions or delays, it’s critical that businesses understand the most recent customs rules and stay informed about any potential changes.

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