In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. Over the summer, HMRC published further detail and publications on the Windsor Framework, and the latest Trader Support Service and Borders Weekly Stakeholder bulletins are also available. We also bring you information on the interaction of the new alcohol duty rules with the Customs Declarations Service (“CDS”) and HMRC has announced a further delay to migrating exports from CHIEF (Customs Handling of Import and Export Freight) to the CDS which is now being phased in. And finally, the new Border Target Operating Model which was due to commence on a phased basis from the end of October 2023 for imports into the UK from the EU (excluding Northern Ireland) is also being delayed.
Delay to the new Border Target Operating Model ("BTOM")
After much speculation in recent weeks, it was confirmed last week that the new BTOM which was due to commence will be progressively introduced from the end of January 2024. The announcement was made when the UK Government published the Border Target Operating Model which model confirms the regimes for SPS (Sanitary and Phyto Sanitary) and Security and Safety controls for goods moving from the EU to Great Britain.
The document also explains how these controls will be delivered through simplification, digitisation, and the UK’s new Single Trade Window. According to the announcement, the decision to delay some implementation milestones was made in response to stakeholder feedback in order to give businesses more time to prepare.
Note that the BTOM does not provide detail on the arrangements for moving goods from Great Britain to Northern Ireland under the Windsor Framework (“WF”); hence stakeholders are advised to consult the guidance on the Windsor Framework for such goods movements.
The final BTOM also confirms that in accordance with the WF, Northern Ireland businesses retain unfettered access to the market in Great Britain, whether moving qualifying NI goods directly from Northern Ireland or indirectly through Irish ports. A full timeline for introduction of these controls is set out within the BTOM.
As a result of the delay in implementation, the UK Government has committed to publishing further detail to support businesses in their preparations. This detail will be published through supplementary annexes to the BTOM, and further guidance, that will be published on GOV.UK. A timeline for the publication of this further detail can be found in Section 4 of the BTOM.
The Northern Ireland Civil Service (“NICS”) is eager to engage with stakeholders and business representatives to understand positions on and priorities in relation to the BTOM, and how it can best provide support during the forthcoming implementation period. To that end the NICS will be in touch in the coming weeks to organise engagement. However, if you have any issues or concerns that you would like to raise in the interim, please send your message to the Post EU Exit Coordination Mailbox at peuec@executiveoffice-ni.gov.uk.
In parallel if you have any technical queries or questions about the BTOM please contact border.enquiries@cabinetoffice.gov.uk. Note that by emailing the Cabinet Office you are consenting to be part of the Bulletin email distribution list.
Following the BTOM publication, the Government is holding a series of sector specific online training sessions to prepare traders. These will take place on the following dates:-
- 7 September 2023 – horticulture sector;
- 12 September 2023 – live animals/germinal products;
- 12 September 2023 - fisher products and seafoods;
- 13 September 2023 – fresh produce sector;
- 14 September 2023 – meat and poultry sector;
- 15 September 2023 – composite products sectors;
- 18 September 2023 – animal by-products sectors;
- 18 September 2023 – dairy sector; and
- 21 September 2023 – exports from Ireland.
More information on these events and how to register can be found at https://www.eventbrite.com/cc/the-btom-what-are-the-sps-border-controls-2144279.
Phased migration of exports to the CDS
A phased approach has recently been announced to the migration of exports from CHIEF to the CDS. As a result, the final date for migration of exports to the CDS is now 30 March 2024, and not 30 November 2023, although some exporters must still meet the 30 November deadline.
During the first phase, HMRC and its software developers intend to support selected high-volume declarants to move to the CDS for exports by 30 November 2023. The second stage of this approach will see all others move to CDS for exports by 30 March 2024. More information will be provided in due course to enable traders to determine in which phase they are required to participate.
The new phased approach aims to enable HMRC and delivery partners to build on existing IT testing and undertake additional performance analysis while businesses with the existing IT functionality start to migrate.
Interaction of the new alcohol duty rules with the CDS
Changes to the structure of alcohol duty took effect from 1 August 2023. Pre-lodged CDS declarations submitted before this date which arrived on the CDS on or after 1 August 2023 and used the 300 and X300 codes need to be cancelled or amended.
These can be amended until the declaration has arrived. Once the declaration has arrived, it cannot be amended and CDS will reject it. A new declaration needs to be submitted in these cases. Guidance is available on GOV.UK on how to cancel or amend a declaration on the CDS.
Miscellaneous updated guidance etc.
The following guidance, and publications relevant to EU exit are available:-
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