The UK government has also published a webpage to remind traders that from 1 January 2022 full customs declarations will apply for goods moving between Great Britain (GB) and the EU (with exception of the island of Ireland - updated 16 Dec 2021). HMRC has also issued a similar reminder by email, which we have previously shared with readers.
The following information is relevant for those trading goods between GB and the EU:
Customs declarations
Traders will no longer be able to delay making import customs declarations under the Staged Customs Controls rules that have applied during 2021. Most traders will have to make declarations and pay relevant tariffs at the point of import into GB.
The UK government is urging traders to consider before 1 January 2022 how they are going to submit their customs declarations and pay any duties that are due.
Some businesses already have a ‘Simplified Declarations’ authorisation from HMRC that allows their goods to be released directly to a specified customs procedure without having to provide a full customs declaration at the point of release. A Duty Deferment Account must be in place to avail of this option (see below). It can take up to 60 calendar days to receive authorisation to use Simplified Declarations.
Border controls
Goods must have a valid declaration and have received customs clearance to move between the EU and GB, otherwise they will not be able to be released into circulation, and in most cases will not be able to leave the port. From 1 January 2022, goods may be directed to an Inland Border Facility for documentary or physical checks if these checks cannot be done at the border. Read more.
Rules of origin – for imports and exports
The Trade and Cooperation Agreement (TCA), allows imported and exported goods to benefit from a reduced rate of Customs Duty (if it can be proven that goods imported from the EU ‘originate’ there or goods exported to the EU ‘originate’ in the UK). Read more about what ‘originate’ means.
UK and EU importers can claim tariff preference if they have one of the following proofs of origin:
- a statement on origin – this must be made out by the exporter to confirm that the product originates in the UK or EU
- the importer’s knowledge – this option allows the importer to claim tariff preference based on their own knowledge of the origin of the goods they are importing
Postponed VAT Accounting
VAT-registered importers can continue to use Postponed VAT Accounting (PVA) on all customs declarations that require them to account for import VAT, including supplementary declarations, except when HMRC has stated otherwise.
For more information, check when you can account for import VAT on your VAT Return.
Commodity codes
GOV.UK has guidance on finding commodity codes for imports into or exports out of the UK which includes information on using the ‘Trade Tariff Tool’ to look up the correct commodity codes.
Read more
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