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 and Borders Weekly Stakeholder Bulletin are also available. And we remind you that the duty reimbursement scheme is expected to open later this week on 30 June. The Institute has lobbied on the need to open the scheme  for several years. Miscellaneous updated guidance etc. Apply for a certificate to confirm you will pay UK National Insurance while self-employed abroad temporarily (CA3837); Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Customs Declaration Service communication pack; Appendix 1: DE 1/10: Requested and Previous Procedure Codes; Appendix 1 Inventory Exports: DE 1/10: Requested and Previous Procedure Codes; Check if a business holds Authorised Economic Operator status; Attending an inland border facility; List of customs training providers; and Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service.

We have compiled the latest updates to various HMRC VAT publications, briefs and guidance. Readers should note that there are also numerous updates to VAT guidance and rules due to the end of the EU transition period. HMRC has also updated the VAT road fuel scale charges that apply from 1 May 2023 and also contacted us to advise that it is removing certain VAT Briefs from GOV.UK which are being archived.

In this week’s EU exit bulletin, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service Bulletin is available, and HMRC has now appointed its technical delivery partner for the Single Trade Window. A consultation has been launched on introducing a voluntary standard for customs intermediaries, and HMRC is seeking more information on the role of the accountant and/or chief financial officer in business decisions on whether to use the Common Transit Convention. HMRC is also writing to businesses that complete export declarations, and it is also confirmed that the long-awaited duty reimbursement scheme will open for claims from the end of this month. The Institute was also in attendance at last week’s UK Domestic Advisory Group (“DAG”) meeting and raised questions on the Windsor Framework. UK DAG meeting The Institute is a member of the UK DAG, and was in attendance at last week’s meeting which gave group members the opportunity to put questions to Pedro Serrano, the EU’s Ambassador to the UK, Sir Oliver Heald, Leader and Co-chair of the UK-EU Parliamentary Partnership Assembly, and representatives from the UK Government. The Institute asked the Ambassador if he was able to share any insights from the EU in respect of how the Windsor Framework (“WF”) is being implemented, from the perspective of potential discrepancies between the UK and EU publications on the framework, and if the EU is satisfied that the new goods movements red and green lane processes will be ready from September 2023. The Ambassador responded that the ongoing relationship between the UK and EU remains positive and all possible work is being doing to implement the WF in the agreed manner. The UK Government also responded to this question and said that the Government is very committed to implementing the WF, and more information and guidance will follow as soon as possible, in addition to the guidance published last week. The UK is working very closely with the EU on that information and guidance.  Duty reimbursement scheme After much lobbying by the Institute, including our letter earlier this year, it is now confirmed that from 30 June 2023, the UK Government will launch the reimbursement scheme for EU duty paid on “at risk” goods which can be shown to not have entered the EU. More information on how the scheme will work was also provided at a meeting on the Windsor Framework several weeks ago, attended by Chartered Accountants Ireland – see our stories here and here. The scheme will be backdated to 1 January 2021, and will also apply to red lane goods movements which should originally have been green lane, under the WF revised trade operating model. The Customs (Northern Ireland: Repayment and Remission) (EU Exit) (Amendment) Regulations 2023 underpin the scheme. It is not yet clear if HMRC will pay interest on overpayments received under the scheme. Single Trade Window Deloitte, working with IBM, has been announced as HMRC’s chosen technical delivery partner to build and maintain the platform on which the Single Trade Window (“STW”) will be hosted. The STW aims to simplify traders’ interactions with the border. The World Customs Organisation (“WCO”) defines such Single Windows as ‘a facility that allows parties involved in trade and transport to lodge standardised information and documents with a single-entry point to fulfil all import, export, and transit related regulatory requirements’. The STW, at its core, ensures a single-entry point for border data, which results in reduced duplication for users. HMRC aims to work closely with Deloitte and IBM to ensure stakeholders’ views continue to be fed into the design of the UK STW. Consultation on introducing a voluntary standard for customs intermediaries As announced at the 2023 Spring Budget, a consultation has now been launched on the proposal to introduce a voluntary standard for customs intermediaries, with the aim of improving the quality of service across the sector. This consultation closes on 30 August 2023 and This will seek views 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. This consultation will be of interest to customs intermediaries, traders (particularly those who use or are considering using a customs intermediary), and any other members of the border industry with an interest in and/or understanding of the customs intermediary sector. HMRC will be holding webinars regarding this consultation where policy officials will explain further the scope of the consultation and the consultation process. If you would like to attend one of these webinars, please contact HMRC by emailing customsintermediariesconsultation@hmrc.gov.uk. The Common Transit Convention and the role of the accountant/chief financial offer HMRC has sent the below request on the role of the accountant/chief financial officer in the context of the Common Transit Convention (“CTC”). “We would like to understand better the role of the accountant and/or chief financial officer in business decisions on whether to use the CTC or not, when importing and exporting goods to the European Union and other European countries, so that we can shape future guidance and communication products to key decision makers. Who we are? We are from the Transit Policy Team in the Customs Policy and Strategy Directorate in HMRC. The CTC is a European wide Convention that the UK acceded to in our own right on Exiting the EU. It allows signatories to the Convention to move goods easily across multiple customs territories until the goods arrive at their final destination, where Customs Duties and VAT are paid. This means that the Duty and VAT are suspended until the final destination, offering cash flow benefits to businesses. What we do? We are working on improving our support and guidance on the CTC to help businesses decide if it may be useful to them. And in the Chancellor’s Spring Statement we announced a package of Transit simplifications for businesses, particularly those using the CTC Trusted Trader scheme which allows businesses to start and end Transit movements at their own premises rather than going to a government office at the port. More information on these measures can be found here.  We’d love to talk to you, if you would be interested then please contact us at transitpolicymailbox@hmrc.gov.uk.” Moving to the Customs Declarations Service for exports HMRC is currently writing to businesses that complete export declarations to make them aware of the key dates for transitioning from the current CHIEF system to the Customs Declarations Service (“CDS”) by the end of November 2023. Traders should therefore check that HMRC has the correct email address to ensure that they are informed at the right time. From 1 December 2023, all export declarations must be made through the CDS. However, traders should not try to move export declarations to the CDS before September 2023, unless contacted by HMRC. Currently, specific types of export declarations cannot be made through the CDS and must still be submitted using CHIEF. HMRC is writing to businesses making these declarations to inform them of when they can start using the CDS.  The current timetable for full transition of export declarations is as follows: from May 2023, HMRC has been contacting traders submitting the highest number of export declarations but only through the Goods Vehicle Movement Service, and has advised them to start making export declarations through the CDS. from July 2023, HMRC will contact all remaining export declarants to make sure they are ready to make export declarations through the CDS by setting out the actions they need to take and signposting to relevant guidance. from September 2023, the CDS is expected to be open for making declarations for all export routes. Next steps Traders that have not already done so should carry out the following steps to prepare for making export declarations through the CDS: Apply for an Economic Operator Registration and Identification (EORI) number beginning with ‘GB’; Subscribe to the CDS; Read the latest CDS guidance. Contact HMRC with any questions. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Customs, VAT and Excise UK transition legislation from 1 January 2021; Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS); Method of payment (MOP) codes for Data Element 4/8 of the Customs Declaration Service; Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS); Appendix 2: DE 1/11: Additional Procedure Codes; Appendix 1 Inventory Imports: DE 1/10: Requested and Previous Procedure Codes; Appendix 2 C21i: DE 1/11: Additional Procedure Codes; The Customs (Miscellaneous Amendments) Regulations 2023; Notices made under the Customs (Export) (EU Exit) Regulations 2019; Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; and Appendix 1: DE 1/10: Requested and Previous Procedure Codes.  

In this week’s EU exit bulletin, we bring you the latest guidance updates and publications relevant to EU exit and we update you on recent developments in relation to the Retained EU Law Bill. The latest Trader Support Service and Borders Weekly Stakeholder Bulletins from 2 June and 9 June are available and we provide a further update on the Windsor Framework. It is also confirmed that the long awaited duty reimbursement scheme will open for claims from the end of this month. Retained EU Law Bill At the end of May, the House of Commons considered the House of Lords amendments to the Retained EU Law Bill (Official Report part 1, and Official Report part 2). Parliament returned from a short recess on 5 June which was followed by Kemi Badenoch, the Minister responsible for the Retained EU Law Bill, appearing before the European Scrutiny Committee on 6 June. The House of Lords is  due to consider the House of Commons amendments to the Bill next Tuesday 20 June and the European Scrutiny Committee has published its report on the Windsor Framework. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Check simplified procedure value rates for fresh fruit and vegetables; CDS Declaration Completion Instructions for Imports; Tell HMRC if you still need your EORI number starting XI; Search the register of customs agents and fast parcel operators; Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS); Search the register of customs agents and fast parcel operators; Check simplified procedure value rates for fresh fruit and vegetables; Search the register of customs agents and fast parcel operators; and Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020.

On 29 May, we updated you on key messages from a recent meeting with the Northern Ireland Joint Customs Consultative Committee on the Windsor Framework (“WF”). Today we provide more details on the matters discussed including NI-GB unfettered access, more on both the UK Internal Market Scheme and the Reimbursement Scheme, news about the treatment of mixed loads, and an update on XI EORI numbers. HMRC has since updated a number of publications which are referenced below. Unfettered NI-GB access Officials confirmed that there will be no changes to goods movements from NI-GB, hence unfettered access will continue to be available and protected with, as it is currently, no export requirements needed other than for exceptional goods such as endangered species, hazardous chemicals, etc. UK Internal Market Scheme (“UK IMS”) It is confirmed that the new UK IMS, which will replace the UK Trusted Trader Scheme (“UK TTS”) from 1 October 2023, will include a higher commercial processing threshold and broader sectoral exemptions. As the scope of UK IMS is wider than the current UK TTS, there will be some additional authorisation requirements. In addition to company directors, HMRC will check whether senior employees responsible for the movement of goods under the scheme have any serious criminal offences recorded in relation to economic crime. There will also be more detailed questions on record keeping and internal controls. HMRC will also undertake checks to ensure that traders are “of good financial standing.” HMRC will also provide new guidance on obligations when moving goods under the scheme with traders required to sign a declaration to confirm they have read and understood the guidance, and that they understand their obligations under the scheme. Traders currently holding authorisation under the UK TSS will be contacted by HMRC in order for re-authorisation to commence for the UK IMS and will need to login using their Government Gateway to complete enrolment onto the UK IMS. This should be done within six weeks of receiving contact from HMRC about re-authorisation, to ensure UK IMS enrolment before 30 September 2023. The new UK IMS is now open to apply for authorisation.  The reimbursement scheme The reimbursement scheme will allow 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 WF. 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. Mixed loads It was confirmed that mixed loads (green and red lane movements in the same container) will be possible under the WF, however red lane goods within mixed loads will be subject to full customs and SPS checks, hence this will slow down such movements. Miscellaneous A number of questions were taken away for more detailed consideration including the treatment of different goods movements such as EU/Ireland-NI-GB, NI-Ireland-GB and GB-NI-EU/Ireland. We will share the responses to all queries when available. A query was also raised in respect of how goods movements under the WF interact with the proposed Border Trade Operating Model. Post and parcel movements (C2C, B2C, B2B) are to be covered in a separate meeting but will not switch on until 1 October 2024 and new quotas are in place for categories 7 and 17 of UK steel. XI EORI number HMRC has recently written to businesses with a GB registered business address who hold an XI EORI number to confirm if they have a permanent business establishment (“PBE”) in NI or if they still need their XI EORI number for the limited customs purposes for which this is provided. Businesses meeting the criteria to retain their XI EORI number for the limited list of other customs purposes do not have to be established in NI. This validation exercise letter invites traders to upload evidence of a PBE in NI or to select on the G-form that they meet the criteria to retain their XI EORI number. Updated guidance and publications HMRC has also published and updated a number of guidance documents as follows:- The Windsor Framework - further detail and publications; How to make sure the correct duty is applied to goods you bring into Northern Ireland from countries outside of the EU and UK; Sign up for the Trader Support Service; Declare goods using the UK Trader Scheme if you bring goods into Northern Ireland; Check if you can bring your goods into Northern Ireland from Great Britain without paying duty; and Declaring goods you bring into Northern Ireland 'not at risk’ of moving to the EU.  

From 1 May 2023, the new VAT related payment scheme for certain second-hand cars came into operation. HMRC has recently updated guidance for the scheme which now provides guidance for EU businesses on how to claim a payment if they do not have a business establishment in the UK. EU businesses can make their claim directly to HMRC from 1 August. They can prepare to make their first claim by:- appointing someone to deal with a claim on their behalf; or requesting access to the HMRC Secure Data Exchange Service to submit a claim electronically. The guidance pages relevant to this are as follows:- How to claim a VAT-related payment using the second-hand motor vehicle payment scheme if you do not have a business establishment in the UK; Submit a claim using the second-hand motor vehicle payment scheme if you do not have a UK business establishment; and Appoint someone to deal with VAT-related payments using the second-hand motor vehicle payment scheme. Other guidance pages relevant to the scheme are:- Check which records to keep for second-hand vehicles you export to the EU for resale; Sales of second-hand motor vehicles in Northern Ireland; Claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and export them to the EU for resale; Check which records to keep for second-hand vehicles you move to Northern Ireland for resale; and Claim a VAT-related payment if you buy second-hand motor vehicles in Great Britain and move them to Northern Ireland for resale.