This week we bring you news of what is happening with the Register of Overseas Entities, and HMRC has published a new set of Compliance Professional Standards. HMRC has extended the Capital Gains Tax (“CGT”) 60-day reporting paper form trial, and we bring you the highlights from the latest Agent Updates published over the summer (110 and 111) and an email from HMRC on the changes to alcohol duty which took effect from 1 August 2023. The most recent News and Information Bulletins from HMRC (27 July and 31 August) are also available. HMRC has also emailed us to advise that the online process for obtaining overlap relief information in the context of basis period reform will commence on the later date of 11 September. Compliance Professional Standards HMRC’s Customer Compliance Group (“CCG”) has introduced and published a set of Compliance Professional Standards. The Standards set out how HMRC should apply the HMRC Charter and Civil Service values in HMRC’s compliance activity. HMRC is sharing these to be open and transparent about how it aims to conduct its work in this space. The main objective is to clearly set out the way HMRC should behave and act when conducting any form of compliance work. The standards also aim to reinforce the CCG’s commitment to HMRC’s Charter. The four Compliance Professional Standards are as follows:- Getting things right; Being aware of a taxpayer’s situation; Being responsive - communicating with taxpayers; and Treating taxpayers fairly. The standards set out how HMRC should apply the HMRC Charter and Civil Service values in compliance activity. CGT 60-day reporting paper form trial extended HMRC has extended the trial of the paper version of the CGT 60-day return for property disposals until the end of September. It should be noted that a permanent solution is still required to assist those unable to file online who had issues receiving a paper form in the post in order to file within the necessary 60-day deadline. The simplest solution to this would be for HMRC to make the form downloadable from GOV.UK, hence this is being pursued with HMRC. Highlights from the latest Agent Updates Agent Update 110 confirms HMRC’s current position on digital records and signatures. Subject to exceptions, HMRC accepts digital records including scanned copies of documents with handwritten signatures. More information is available in Agent Update 110 which also contains updates on other topical areas including PPI (Payment Protection Insurance) claims, the new Alcohol Duty rates and reliefs, the HMRC online service for the new Economic Crime Levy, the UK Internal Market Scheme, overlap relief in the context of basis period reform, and self-service Time to Pay for VAT. In Agent Update 111, read about the National Minimum Wage and the VAT treatment of second-hand motor vehicles bought in Great Britain and moved to Northern Ireland before 1 May 2023 that are still held in stock, amongst other topics.

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:- Apply to claim a repayment or remission of import duty on ‘at risk’ goods brought into Northern Ireland; Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020; Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020; Reference document for authorised use: eligible goods and authorised uses; Customs, VAT and excise UK transition legislation from 1 January 2021; Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); UK Trade Tariff: duty suspensions and autonomous tariff quotas; CDS Declaration Completion Instructions for Imports; Measurement unit codes for Data Elements 2/3 and 4/4 of the Customs Declaration Service; Apply to delay or pay less duty on goods you import to process or repair Check if you can pay less duty if your goods are imported into authorised use; Search the register of customs agents and fast parcel operators; CDS Customs Clearance Request Completion Instructions for Inventory Exports; and CDS Declaration Completion Instructions for Exports.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The latest Trader Support Service bulletin is also available. We also remind you that the deadline for applying for the new UK Internal Market Scheme to ensure applications are processed in time is next Monday, 31 July. Miscellaneous updated guidance etc. The latest documents and publications relevant to EU exit are as follows:- Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020; Report payments and view your allowance for non-customs state aid and Customs Duty waiver claims; Check if you can claim a waiver for goods brought into Northern Ireland; Request Customs Declaration Service data on imports and exports; 4-digit to 3-digit procedure to additional procedure code correlation matrix for imports; Simplified procedures exclusion list of procedure and additional procedure codes for CDS; Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS); Reading notes for Declaration Category Data Sets: CDS Declaration and Customs Clearance Request Instructions; Additions and deductions for Data Element 4/9 of the Customs Declaration Service; Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS); CDS Declaration Completion Instructions for Imports; Appendix 21: Import Declaration Category Data Sets; Imports and Exports of the Customs Declaration Service (CDS); Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service; Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service; Notices made under the Customs (Export) (EU Exit) Regulations 2019; Bringing commercial goods into Great Britain in your baggage; and Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The government has published the first UK Trade and Cooperation Agreement (“TCA”) implementation report which outlines the progress that has been made in implementing the agreement, and summarises the UK’s engagement with the EU through the TCA’s formal structures. Meetings have taken place recently in Brussels of both the EU-UK Parliamentary Partnership Assembly, and the EU-UK Joint Committee, and the Retained EU Law Bill has received Royal Assent. The latest Trader Support Service Bulletin is also available, and HMRC is advising participants in the current UK Trader Scheme to sign up to the new UK Internal Market Scheme (“IMS”) by the end of this month. Deadline for signing up to new UK IMS We understand that HMRC is currently writing to authorised traders in the UK Trader Scheme (“TS”) to advise them to sign up to the UK IMS by the end of this month so that their application can be approved in time for moving goods in the green lane under the Windsor Framework. HMRC is advising that applications to the new UK IMS which it receives after 31 July 2023 may not be processed in time. You can read more about the new UK IMS here, and here. Miscellaneous updated guidance etc. Guidance for preferential rates of duty and rules of origin; Transit newsletters – HMRC updates; Pay less Customs Duty on goods from a country with a UK trade agreement; Using an origin declaration for the Developing Countries Trading Scheme; Use the Developing Countries Trading Scheme to import goods; Notices made under The Customs (Origin of Chargeable Goods: Developing Countries; Trading Scheme) Regulations 2023; Check your goods meet the Developing Countries Trading Scheme rules of origin; List of customs training providers; Search the register of customs agents and fast parcel operators; Classifying electric lamps for import and export; Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020; Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020; and Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS).

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. We also bring you key outputs from a meeting last week on the newly opened reimbursement scheme. The latest Trader Support Service and Borders Weekly Stakeholder bulletins are also available. Reimbursement scheme – more information As set out last week, the long-awaited duty reimbursement scheme was launched on 30 June. The Institute lobbied on the need to open the scheme for several years and is pleased to see this come to fruition. By way of reminder, the reimbursement scheme allows for reimbursement of tariffs paid on goods classed as being at risk which later became not at risk under the original Protocol, and on goods which will move in the new red lane which should originally have been green lane movements under the Windsor Framework. This includes the following scenarios:- Final sale of goods takes place in NI; Goods are consumed in NI; Goods are destroyed in NI; Goods are moved back to GB from NI; and Goods are exported to RoW (Rest of World) from NI. Chartered Accountants Ireland attended a meeting with UK government officials from HMRC and HM Treasury last week to discuss the reimbursement scheme in more detail. The below information was discussed in the meeting. In order to claim, the trader must gather evidence to support the claim and submit this to HMRC via an online application where a caseworker will consider the application. More evidence may then be requested by the caseworker in order to finalise and process the application. Claims can be made by: the importer for the original ‘at risk’ movement into NI, if they are established in the UK; or the appointed agent or representative acting on their behalf (if the original importer is not established in the UK, only their UK appointed agent or representative can submit the application). At the meeting it was once again confirmed that interest will not be paid on refunds received by traders; HMRC stated that the reason for this is that until the regulations underpinning the scheme were laid, there was no statutory basis on which claims for refunds could be made. The Institute is considering making representations on this given the known cash flow impact that delayed refunds have had for many traders since January 2021. It was also confirmed that reimbursements can be claimed for single or multiple movements. For goods moving from GB to NI, the full amount of the overpaid duty will be refunded. For RoW to NI movements, the duty repaid will be the difference between the UK and EU rates (if the EU rate is higher). The difficulty that some traders will have in providing evidence to support goods originally moved on the basis of “at risk” which subsequently become “not at risk” was discussed in detail, particularly for small items which often do not have a serial number and cannot be fully traced in terms of their end use. HMRC stated that they have not set out an exhaustive list of evidence which is required to support claims but were clear that using approximate apportionments will not be sufficient. Overall, HMRC will seek to be as pragmatic as possible to ensure the evidence provided is robust, whilst at the same time ensuring that the scheme is not open to abuse. It was pointed out that previous goods movements split between “at risk” and “not at risk” using the apportionment method on arrival into NI will be particularly problematic in terms of evidencing these becoming not at risk. In particular, the traceability of low-value non-serial numbered products brought into NI in bulk which then go into a parts store, and are used as required without any record kept, are likely to cause particular issues. HMRC is willing to discuss such cases in more detail. The deadline for making claims is three years from the point of the original duty being paid, where this is paid after 30 June 2023. For historic claims going back to 1 January 2021, the three-year window runs from 30 June 2023 to 30 June 2026. At the meeting HMRC also highlighted that the guidance on moving certain categories of steel into Northern Ireland without being subject to safeguard charges where relevant quotas are open has been updated. And finally, as the scheme is now open, we welcome your feedback on its operation and any issues you may be experiencing. Miscellaneous updated guidance etc. Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020; Report payments and view your allowance for non-customs state aid and Customs Duty waiver claims; Check if you can claim a waiver for goods brought into Northern Ireland; Data Element 2/3: Document and Other Reference Codes: Licence Types – Imports and Exports of the Customs Declaration Service (CDS); Claim a waiver for duty on goods that you bring to Northern Ireland from Great Britain or countries outside the UK and EU; Classifying edible fruit, vegetables and nuts for import and export; Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020; Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020; Notices made under s32A of the Taxation (Cross-border Trade) Act 2018; Customs, VAT and excise UK transition legislation from 1 January 2021; Simplified procedures exclusion list of procedure and additional procedure codes for CDS; Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS); Border Force customs offices list; Summary of movements of goods into Northern Ireland from Great Britain 2022; Apply for a voluntary clearance amendment (underpayment) (C2001); Get proof of origin for your goods; and Check your goods meet the rules of origin.

In this week’s EU exit corner, we bring you the latest guidance updates, and publications relevant to EU exit. We also update you on the recent opening of the reimbursement scheme, and bring you news of current consultations in the area of customs. The latest Trader Support Service and Borders Weekly Stakeholder Bulletin are also available. And finally, if you account for import VAT on your VAT Return under postponed accounting for VAT, you must access the Customs Declaration Service to get a postponed import VAT statement online Reimbursement scheme now open Last week on 30 June, the long awaited duty reimbursement scheme launched which means traders can now reclaim duty on goods moving into Northern Ireland which do not subsequently move into the EU. Claims are possible back to 1 January 2021. HMRC recently responded to the Institute to say that interest will not be paid on refunds received by traders, however we have asked HMRC to provide more detail on this, and will keep you updated. The Institute lobbied on the need to open the scheme for several years. The reimbursement scheme allows for reimbursement of tariffs paid on goods classed as being at risk which later become/became not at risk under the original Protocol and on goods which move in the new red lane which should originally have been green lane movements under the Windsor Framework. This includes the following scenarios:- Final sale of goods takes place in NI; Goods are consumed in NI; Goods are destroyed in NI; Goods are moved back to GB from NI; and Goods exported to RoW (Rest of World). In order to claim, the trader must gather evidence to support the claim and submit this to HMRC where a caseworker will consider the application. The following publications are also available which are relevant to the scheme:- Declaring goods you bring into Northern Ireland 'not at risk’ of moving to the EU; Trading and moving goods in and out of Northern Ireland; Notices made under the Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023; and Apply to claim a repayment or remission of import duty on ‘at risk’ goods brought into Northern Ireland. Consultations Four consultations are currently open which are relevant to customs. HMRC has also published a new customs and UK border consultations tracker. Customs treatment of post and parcel exports – closes 20 July 2023 This consultation seeks to understand who makes use of the Export Memorandum of Understanding and Extra Territorial Offices of Exchange, and why, before looking at each procedure individually to establish ways in which the UK’s post and parcels export regime could be improved. The objective is for HMRC to establish how the customs treatment of low-value post and parcel exports can be developed to enable the smooth flow of these goods out of the UK, while ensuring appropriate due diligence is applied to help protect the countries and territories exported to, while complying with international obligations. Introducing a voluntary standard for customs intermediaries – closes 30 August 2023 This consultation seeks views on the proposal to introduce a voluntary standard for customs intermediaries, with the aim of improving the quality of service across the sector. It follows on from the 2022 Call for Evidence: An Independent Customs Regime and the measures complement wider transformational changes at the border that the government has committed to delivering as set out in the 2025 Border Strategy. Views are sought on: the objectives of a voluntary standard, and what format it could take; how a voluntary standard could be designed and implemented; the potential content of a voluntary standard; and training and educational offerings for the intermediary sector, which would support the introduction of a voluntary standard . The future of customs declarations – closes 8 September 2023 This consultation seeks views on potential simplifications to customs declarations, and the use of technology to facilitate declarations and other customs processes. HMRC are holding webinars on 5 July 2023 and 13 July 2023 where policy officials will explain the consultation questions and how to respond. If you would like to attend one of these webinars, please contact HMRC by emailing externalstakeholders.customs@hmrc.gov.uk by 3 July and 11 July respectively. Bringing goods into the UK temporarily – closes 22 September 2023 This call for evidence seeks views from individuals, businesses and intermediaries on how the Temporary Admission (“TA”) procedure is working and, in particular, their experience of using TA in the UK. The government would like to gather and consider a wide range of views on how the TA procedure could be simplified for users. The government also welcomes views on potential improvements to the UK’s TA procedure to make it more accessible. TA is used by a broad range of sectors, including the creative, cultural and sports sectors, the leisure industry, museums galleries and auction houses and a broad range of businesses of all sizes. This call for evidence is likely to be of particular interest to traders, customs agents, freight forwarders and hauliers, as well as business representative organisations, trade bodies and customs consultancies that help traders with their customs affairs. Miscellaneous updated guidance etc. Specialised Committee on the Implementation of the Windsor Framework: joint statement, 23 June 2023; Customs, VAT and excise UK transition legislation from 1 January 2021; List of customs training providers; Customs declaration completion requirements for Great Britain; CDS Declaration Completion Instructions for Imports; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); Search the register of customs agents and fast parcel operators; Draft notices made under the Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023; The Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023; and Check simplified procedure value rates for fresh fruit and vegetables.