In this week’s EU Exit Bulletin, we bring you an email from HMRC in respect of the closure of CHIEF. A customs easement is now in place making it easier to move aid and donations to help the people of Ukraine and more information on the UK’s new second-hand motor vehicles export refund scheme is expected in May. We also tell you about the appointment of Chartered Accountants Ireland as a member of the UK’s Trade and Co-operation Agreement Domestic Advisory Group and news of ongoing issues with the UK's Goods Vehicle Movement Service (GVMS) with interim arrangements in place until midday on Monday.
GVMS experiencing service disruption in UK
Investigations are ongoing about issues with the GVMS system in the UK. Interim measures have been put in place until midday on Monday 11 April 2022. The GVMS is an IT platform that enables faster clearance of goods with pre-lodged customs declarations.
For traders who do not have a goods movement reference, alternative documentation can be used for example:
- transit accompanying document (TAD) — if you are unable to provide this, you can provide photocopies or digital copies of copy 4 of the single administrative document (SAD)
- movement reference number
- entry reference number
- declaration unique consignment reference (DUCR)
Hauliers moving goods through 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 specific goods
More information can be found at GOV.UK.
Chartered Accountants Ireland appointed as a member of UK advisory group
Chartered Accountants Ireland has been appointed as a member of the new UK Trade and Co-operation Agreement Domestic Advisory Group (“DAG”). The DAG is an important consultative body tasked with monitoring the implementation of the EU/UK Trade and Cooperation Agreement with the first meeting expected to take place later this month.
Customs easement to help Ukraine aid exports
The UK government has put in place a customs easement to make it easier to move aid and donations to help the people of Ukraine. Simplified customs processes will apply to goods intended to support those affected by the humanitarian crisis in Ukraine which are exported from Great Britain. For example, businesses, charities, and community organisations that send aid from British ports will be able to make a customs declaration by speaking to customs officers or by driving through a port. They will no longer need to complete and submit electronic customs declarations to HMRC prior to exporting such goods.
On the condition that the goods are not exported to, or through, Russia or Belarus, then these simplified processes apply to qualifying goods regardless of the destination to allow maximum flexibility to get aid to where the need is greatest.
Read more.
New scheme for VAT relief on second-hand motor vehicles: more information expected in May
HMRC has published guidance on the second-hand motor vehicle export refund scheme. This is a new scheme that the UK Government intends to introduce from 1 October 2022 which will allow businesses to claim a refund of VAT if it moves a second-hand motor vehicle from Great Britain (England, Scotland, and Wales) to Northern Ireland for resale. The scheme is designed to replace the EU’s margin scheme which is temporarily available for businesses selling second-hand motor vehicles in Northern Ireland that have come from Great Britain, where certain conditions are met including the grant of permission from the European Commission (“EC”).
VAT registered business in the EU that buy second-hand vehicles in Great Britain and export them to the EU for resale can also avail of the scheme.
Chartered Accountants Ireland has been consulted by HMRC to assist in policy development in respect of the new export refund scheme and met recently with HMRC to discuss the draft guidance. The Institute also continues to press HMRC for an update on the EC’s view on the temporary availability of the second-hand margin scheme post the end of the EU transition period.
Further information on the new scheme will be published in May 2022.
UK’s economic sanctions against Russia
The UK government announced on 15 March 2022 a ban on exports to Russia of high-end luxury goods, and also imposed new import tariffs on hundreds of goods.
The sanctions include:
- Denying Russia and Belarus access to Most Favoured Nation tariff for hundreds of their exports, depriving both nations of key benefits of WTO membership
- Publishing an initial list of goods worth £900 million - including vodka - which will now face additional 35 percent tariff, on top of current tariffs
- Banning exports of luxury goods to Russia alongside G7 allies
If affected goods are moving between Great Britain and NI, and the goods being moved were exported from Russia or Belarus before 25 March 2022 (and relevant proof is held), traders can complete a Supplementary Declaration on TSS using the new ‘9008’ Document Code. Entering ‘9008’ code into the Document Code field at the relevant goods item level on the Supplementary Declaration will provide exemption from additional duties on the goods. NOTE: There may be a requirement to provide sufficient evidence to demonstrate eligibility for this exemption.
Trader Support Bulletin Week 70 edition has further details.
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