In this week’s EU exit corner, we bring you an email from HMRC on how full customs controls will be introduced as planned from 1 January 2022 for goods movements from the EU into GB (different rules apply to Northern Ireland under the protocol). The latest guidance updates also feature. See also last Friday’s EU exit bulletin which features every Friday in Chartered Accountants News. HMRC has sent the following email about getting ready for full customs controls from 1 January 2022 and declaring goods you’ve already imported on movements of goods from the EU into GB. “Full customs controls will be introduced as planned on 1‌‌‌ ‌January‌‌‌ ‌2022 Full customs declarations and controls are due to be introduced as planned on 1‌‌‌ ‌January‌‌‌ ‌2022. This means that the option to delay your customs declarations for up to 175 days, without an authorisation from HMRC, is coming to an end‌‌‌ ‌on‌‌‌ ‌31‌‌‌ ‌December. If you’re already making full import declarations, or if you’ve started submitting supplementary declarations, you’re well prepared. If you’ve not made any declarations to HMRC for goods you’ve moved from the EU since January 2021, you need to start preparing now for this change. This email explains the steps you need to take to prepare including completing your supplementary declarations and paying any duties owed. If you have moved goods or intend to move goods from the EU to GB during 2021 You must make customs declarations for these goods. Most businesses use third-party agents or intermediaries, like customs agents, freight forwarding companies and fast parcel operators, to deal with customs processes including completing customs declarations. Most businesses use third-party agents or intermediaries, like customs agents, freight forwarding companies and fast parcel operators, to deal with customs processes including completing customs declarations. If you are using one of these third-party agents or intermediaries, you should have agreed with them who will make the declaration. We’ve created a register of customs agents and fast parcel operators showing who is taking on new clients, and the services offered. If you are importing any non-controlled goods from EU free circulation to GB free circulation during 2021 EU free circulation goods have been produced/manufactured in the EU or have been declared to customs and customs duties paid. GB free circulation goods have been imported with the intention of paying the customs duties straight away. You can choose to make a full declaration at the time the goods arrive into Great Britain (GB) or delay your declarations. You cannot use delayed declarations if you are importing controlled goods or the goods are not going into free circulation. If you choose to delay your declaration, you’ll need to enter the goods in your records (known as an entry in declarants’ records or EIDR) and then provide full details in a supplementary declaration. You need to do this no later than 175 calendar days after the goods are entered in your records or the date your goods arrived in GB whichever is sooner. For example, if you imported goods on 29 April 2021, you must submit your supplementary declaration before 21‌‌‌ ‌October‌‌‌ ‌2021. To help you make your declarations on time you can use the personal supplementary declaration planner which sets out the key actions you or your customs intermediary need to take. It’s available to download at www.gov.uk/hmrc/brexit-resources. If you have chosen to delay your declarations this means you will also delay paying any customs duty and import VAT (unless you’re VAT registered). Find out more at www.gov.uk/topic/business-tax/vat. If you move controlled goods or trade rest of the world goods Different rules apply to controlled goods, exports, rest of the world goods and the movement of goods into Northern Ireland. For help with moving goods to Northern Ireland, sign up to the free Trader Support Service for support. Submitting your supplementary declarations You must submit your supplementary import declaration no later than 175 calendar days of the date the goods were entered in your records or arrived in GB whichever is sooner. If you are not using an intermediary to do this for you then you’ll need to prepare to make your supplementary declaration and make sure you have the correct authorisations and systems to submit your declarations. These can take up to 60 days. Authorisations can make customs easier and cheaper for your business. You can use our Trader tool to help identify which are suitable for your business. You will need to submit your declarations electronically using the Customs Handling of Import and Export Freight system (CHIEF) or the Customs Declaration Service (CDS). You’ll need to have access to a duty deferment account (DDA) to submit your first supplementary declarations. It works like a credit account where you pay HMRC duties accrued on imports via monthly Direct Debit, instead of paying for individual consignments immediately at import, or when released into free circulation or from an excise warehouse. Some customs experts provide access to their DDA for their customers. So, speak to your agent or freight forwarder to see whether this is part of the service they offer. If not, or you are making your own customs declarations, you must apply for your DDA and Simplified Customs Declarations Processes authorisation in good time to meet the 175-day deadline for supplementary declarations. Sending HMRC your supplementary declaration is your legal obligation as an importer. If you imported anything into GB between January and March 2021 and haven’t yet made your delayed declaration then these are now overdue, please call us on 0300‌‌‌ ‌322‌‌‌ ‌9434 so we can discuss what you need to do next. We also advise you to call us as soon as possible if you think you will not be able to make customs declarations in time or believe you may have used delayed declarations incorrectly. We will advise you on what to do next. From 1‌‌‌ ‌January‌‌‌ ‌2022 From 1‌‌‌ ‌January‌‌‌ ‌2022, when full customs controls are introduced, the option to delay declarations without an authorisation from HMRC will no longer apply. You will need to choose to make full customs declarations when you import goods or to be authorised to make simplified declarations. You may want to use an intermediary to help you, but if you choose to make your own customs declarations you will need to start preparing now. Your goods may not be allowed to travel to the UK if you have not made a customs declaration. Where to find more help and support For online support, including live webinars and YouTube videos, go to our help and support for UK transition page. You can also call our helpline on 0300‌‌‌ ‌322‌‌‌ ‌9434. The helpline is open from‌‌‌ ‌8am to 10‌‌‌pm Monday‌‌‌ to Friday and‌‌‌ ‌from‌‌‌ ‌8am to‌‌‌ ‌4pm at week‌‌‌ends. If you export to Europe, the recently launched government Export Support Service is a free service giving you access to online and phone support. You can access it at www.gov.uk/ask-export-support-team or by calling 0300‌‌‌ ‌303‌‌‌ ‌8955 where you will be put in touch with a member of the dedicated export support team. If you know of a business who would also find these emails helpful, please forward it on, or suggest they register to receive them directly to their inbox register to get these updates directly to their inbox.” Miscellaneous updated guidance The following documents/guidance relevant to EU exit have been updated/published recently:- Import goods into the UK: step by step; Case studies for insufficient production when trading between the UK and the EU; Insufficient production for manufacturing and agri-food processes when trading between the UK and EU; Proving originating status and claiming a reduced rate of Customs Duty for trade between the UK and EU; Rules of origin for goods moving between the UK and EU; Find out when to make an exit summary declaration; List of customs training providers; Check your goods meet the rules of origin; Trade and Cooperation Agreement Governance; Making cosmetic products available to consumers in Great Britain; Rules of origin for goods moving between the UK and EU; Introduction to rules of origin and claiming duties when trading between the UK and EU; Organisations that trade with the EU – webinars calendar; Great Britain Marketing Authorisations (MAs) for Centrally Authorised Products (CAPs); and Trade Specialised Committee on Level Playing Field for Open and Fair Competition and Sustainable Development.

Following the EU’s announcement, the Joint Customs Consultative Committee shared an update with us about what the EU proposals currently mean for the Protocol. We have reproduced the commentary below: Following the EU’s announcement, the Joint Customs Consultative Committee shared an update with us about what the EU proposals currently mean for the Protocol. We have reproduced the commentary below: “None of the reported changes, or documents published this week by either party, on the Northern Ireland Protocol have yet been agreed. Both UK and EU have shared proposals with each other, and discussions continue. Existing arrangements will continue for now. Traders should continue to meet the requirements of the Protocol as currently being operated, if your members ask please remind them that existing processes remain in place, and supplementary declarations should continue to be submitted Businesses without their own fixed address in Northern Ireland can continue to be authorised for the UK Trader Scheme, provided they meet the other existing UKTS requirements The existing approach to post and parcels movements from GB to NI will continue. The Government will ensure that reasonable notice is provided if the current approach changes, to enable businesses to make appropriate preparations.”

The European Commission this week put forward “bespoke arrangements” in response to the difficulties that have been experienced as a result of trade under the Northern Ireland Protocol. Further flexibilities are proposed in the area of food, plant, and animal health (SPS checks), customs, medicines and engagement with stakeholders in Northern Ireland. The package of measures is set out in four ‘non-papers’ (non-legislative texts) and broadly cover the following: An 80 percent reduction in SPS checks on food, plant and animal goods moving from Great Britain to be consumed in Northern Ireland. This would mean a truck moving 50 different food products, such as dairy, meat, fish, plants, from Great Britain to Northern Ireland would only need one SPS certificate instead of 50. A 50 percent reduction in paperwork needed to move goods from Great Britain to Northern Ireland on the condition that the UK commits to providing full and real-time access to IT systems and certain monitoring and enforcement measures. For goods not regarded as ‘at risk’, much less paperwork would be required. Enhanced engagement with stakeholders and authorities in Northern Ireland with regards the practical implementation of the Protocol. Among the measures to achieve this includes a proposal to enhance links between the NI Assembly and the EU-UK Parliamentary Partnership Assembly is also proposed. Pharmaceutical companies in Great Britain could supply the Northern Irish market and keep all of the regulatory functions where they are currently located. Specifically related to Customs, the proposals would mean: A wholesaler of food products, established only in Great Britain and not in Northern Ireland, would be eligible for the UK Trader Scheme and be able to benefit from the scheme to regularly supply retailers in Northern Ireland. Northern Ireland supermarkets, and grocery stores of large national retailers, that depend on supply chains and distribution centres established in Great Britain will see their customs formalities reduced to a minimum. These companies will file customs declarations only once a month as opposed to filing one declaration per transaction. Certain products that are generally prohibited for import into the EU – e.g. sausages – would be allowed to be imported into Northern Ireland from Great Britain, subject to them carrying individual certificates, for which specific models will be provided The European Commission’s response does not address three of the UK’s asks: removing the oversight of the Court of Justice of the EU (ECJ) when it comes to EU law in Northern Ireland; changing State Aid rules in Northern Ireland; and allowing the free movement of pets between Great Britain and Northern Ireland.  A press statement issued by the European Commission following the announcement stated that “The Commission believes that this package of measures will make a real difference on the ground in Northern Ireland and addresses the Brexit-related problems regarding the movement of goods from Great Britain to Northern Ireland that have been raised by Northern Irish people and businesses. These measures come in addition to the package that was presented in June 2021, which facilitates the movement of live animals from Great Britain to Northern Ireland.” Vice-President Maros Šefčovič said: “I have listened to and engaged with Northern Irish stakeholders. Today's proposals are our genuine response to their concerns. We have put a lot of hard work into them to make a tangible change on the ground, in response to the concerns raised by the people and businesses of Northern Ireland. We are looking forward to engaging earnestly and intensively with the UK government, in the interest of all communities in Northern Ireland.” The UK and EU will now enter a period of “intense discussions” over the coming weeks. Read the European Commission’s Press Statement The Four Non-Papers Concrete examples of the proposals