EU Exit Bulletin - 10 June 2022

In this week’s EU Exit Bulletin, we cover the decision by the UK government to delay the publication of a Bill to change elements of the Northern Ireland Protocol. We also bring you an update from HMRC regarding the new second-hand motor vehicle export VAT refund scheme as well as the latest EU exit guidance available on GOV.UK. In other news, the National Audit Office has published a report assessing how UK regulators have managed taking on new responsibilities following EU Exit.

UK government delays Bill to amend Northern Ireland Protocol  

A Bill that would enable the UK government to override elements of the Northern Ireland Protocol was not published this week as expected. Instead, amidst reported warning of political unrest in the UK, the Bill will be published some time next week.

The Bill would allow the UK to disapply parts of the agreement and instead impose its own solutions.  According to a statement by Foreign Secretary Liz Truss in May, among the changes, a ‘green lane’ would be provided for trusted British traders moving goods into Northern Ireland that are not intended for the EU single market. Products that are destined for the EU would be placed in a ‘red lane’ and undergo full checks and customs controls.

The Institute attended a meeting of the Joint Consultative Committee on Customs following Liz Truss’s statement and were told that a notice period would be given for any changes that will be brought in.

We will keep members updated on developments.

VAT second-hand margin scheme

As covered by us in a previous update, the UK government intends to introduce a new second-hand motor vehicle export refund scheme in October 2022 which will allow traders to claim a refund of VAT when moving a second-hand motor vehicle from Great Britain to Northern Ireland for resale.  HMRC has contacted the Institute to say that the existing guidance on the scheme will not be updated as planned in May.

However, until the refund scheme is implemented, businesses can continue to rely on existing guidance when applying the margin scheme in Northern Ireland.  The UK has requested that the EU’s margin scheme continue to apply in Northern Ireland on a limited basis until the new second-hand motor vehicle export refund scheme is implemented. The guidance can be accessed using this link.

We will keep members updated.

New Trader Journey Assistant

A new tool for traders, the Trader Journey Assistant, has been made available for traders on Northern Ireland Customs and Trade Academy (NICTA). The tool poses a series of questions which will help traders understand the declarations requirements for goods movement. The tool will also direct traders to the relevant guidance to be able to complete declarations and pay any associated customs duties.

Miscellaneous updated guidance

The following documents/guidance relevant to EU exit have been updated/published recently:-

• Exporting active substances manufactured in Great Britain for use in EEA and Northern Ireland;
• TCA Partnership Council Decision number 3 (5 May 2022);
• Trade and Cooperation Agreement Governance;
• Community, Common Transit and TIR newsletters;
• Apply to import multiple low value parcels on one declaration;
• Moving excise goods from Great Britain to Northern Ireland by parcel;
• Check simplified procedure value rates for fresh fruit and vegetables;
• Sending parcels to and from Northern Ireland;
• Moving excise goods as freight under the Northern Ireland Protocol from 1 January 2021
• Webinar: moving goods between Spain and Great Britain;
• Webinars about moving goods from Belgium to Great Britain;
• Webinar: moving goods from the Netherlands to Great Britain;
• Webinars about moving goods from Portugal to Great Britain;
• Webinars about moving goods from Italy to Great Britain;
• EEA-qualified and Swiss healthcare professionals practising in the UK;
• Report goods arriving at a UK port on a commercial vessel;
• VAT and overseas goods sold to customers in the UK using online marketplaces;
• VAT and overseas goods sold directly to customers in the UK;
• Medical devices: UK approved bodies;
• Delaying declarations for goods brought into Great Britain;
• New rules for international road haulage from 2022; and
• Transport goods in Europe in vans or car and trailers.