Updates

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service and Cabinet Officer Borders bulletins are also available. Readers are advised that this bulletin contains important information on the next phase in the implementation of the UK’s new import controls, known as the Border Target Operating Model, which commences from 30 April 2024 when  documentary and risk-based identity and physical checks on medium-risk animal products, plants, plant products and high-risk food (and feed) of non-animal origin imported from the from the EU will begin.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Customs Declaration Service: service availability and issues;  Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020;  Appendix 1: DE 1/10: Requested and Previous Procedure Codes;  Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS);  CDS Declaration Completion Instructions for Imports;  Customs declaration completion requirements for Great Britain;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS);  Authorisation type codes for Data Element 3/39 of the Customs Declaration Service;  Data Element 2/3 Documents and Other Reference Codes (National) of the CustomsDeclaration Service (CDS);  Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS);  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020; and  Customs, VAT and excise UK transition legislation from 1 January 2021. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service and Cabinet Officer Borders bulletins are also available. HMRC also recently published guidance on sending parcels from Great Britain to Northern Ireland which will take effect under the Windsor Framework from 30 September 2024. And finally, we provide information on a recent update to VAT and EORI guidance.  VAT and EORI guidance  If a business deregisters for VAT, any Economic Operators Registration and Identification (“EORI”) number(s) they hold will also be removed at the same time.   By way of reminder, EORIs are needed for authorisations, including a UK Internal Market System (“UKIMS”) authorisation, and licences. To continue using these, there are actions a business needs to take which are as follows:  Authorisations (including Duty Deferment Accounts and guarantees) - contact the supervising office. This can be found in the authorisation correspondence received originally;  Licences - to continue using these please contact the issuing government department; and  If a business still needs an EORI number, they can apply for a new GB EORI number. The number is usually confirmed immediately. Once a business has a GB EORI, they will then be able apply for an XI EORI number, if needed and they meet the relevant criteria. The number will be issued within five working days of applying.  If a business needs help getting a new EORI number, please contact HMRC.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Classifying footwear for import and export;  Customs Declaration Service is open for all export migration;  Get help using example declarations for exports from Great Britain to the rest of the world;  Making an export declaration using a pre-shipment advice;  Making an export supplementary declaration;  Making an export declaration in your records;  Making a full export declaration;  Tell HMRC when exports have arrived or departed a UK port;  Make and manage an export declaration online;  Get help using example declarations for exports from Great Britain to the rest of the world;  Apply for authorised consignor or consignee status; and  Report a problem using the Customs Declaration Service. 

We recently issued a reminder that second hand vehicles moved from Great Britain (“GB”) to Northern Ireland (“NI”) prior to 1 May 2023 can continue to avail of the VAT margin scheme, but only until the extended deadline of 30 April 2024. HMRC has requested details of any such vehicles still in stock and unsold. Please contact us to provide this information by Friday 22 March 2024. Our thanks go to anyone who has already been in touch to provide this information.  The 30 April 2024 deadline means that any vehicles moved from GB to NI prior to 1 May 2023 but sold after 30 April 2024 will require output VAT to be charged on the full selling price, and not on the margin.   The six-month extension from the original deadline of 31 October 2023 followed extensive lobbying from Chartered Accountants Ireland in September and October 2023.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available. We issue a reminder about the move of export declarations to the Customs Declarations Service (“CDS”) the deadline for which has now been extended and, from 1 March 2024, the EU has introduced a new digital system for union goods. News of how changes to the CDS which take effect from 24 March 2024 impact on goods moving into Northern Ireland also features.  Move to CDS for all export declarations delayed to June 2024  HMRC had previously announced that from 30 March 2024 all export declarations must be made using the CDS and not CHIEF. Recently HMRC issued a Press Release confirming that all businesses can now move their export declarations to the CDS. However, instead of requiring the CDS to be used for all exports from 30 March 2024, businesses who have yet to move their export declarations to CDS will have a transition period to move across until 4 June 2024. After this date, customs declarations will not be able to be submitted through the CHIEF service.   More information about moving to the Customs Declaration Service is available on GOV.UK. HMRC says that it will continue to provide help and support to businesses moving to CDS in the coming months and will continue to work closely with the border industry throughout this process.  Digital proof of status for EU goods  From 1 March 2024, the EU has introduced a new digital system for union goods (products made in the EU or imported with duties paid). Union goods avoid EU customs procedures but require digital “Proof of Union Status” when moving them between EU countries and Northern Ireland via a non-EU territory.   To use the new system, traders should email admin.uum@hmrc.gov.uk with their name, email, registration confirmation, NI business address, and XI EORI number. More information is available in a recent Agent Update.  Impact of CDS changes on goods moving into Northern Ireland  From 24 March 2024, HMRC changes to the CDS will affect how you make declarations into Northern Ireland. After this date, to use your UKIMS authorisation, you (or your agent or intermediary) will need to start using some new codes and your UK Internal Market Scheme authorisation (“UKIMS”) authorisation number.   These changes will apply to goods moving into Northern Ireland from Great Britain (GB-NI) and to goods moving into Northern Ireland from a country outside of both the UK and the EU (Rest of World-NI).  If you (or your agent or intermediary) have been using the ‘NIREM’ code to declare goods ‘not at risk’, you could be impacted by these changes if you haven’t already got a UKIMS authorisation. From 24 March 2024, if you use the ‘NIREM’ code without declaring a valid UKIMS authorisation, duties at the EU rate will be calculated and will be charged to you by CDS if duties are due.  Note that there will be additional considerations if you are:- moving goods that will be subject to processing in Northern Ireland;  moving goods subject to tariff-rate quotas, such as steel; or  seeking to waive duties under the customs duty waiver scheme.  Further guidance on these changes will be published on GOV.UK from 24 March 2024. In the meantime, HMRC has advised us that letters are being sent to affected traders to notify them in advance.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020;  Import, export and customs for businesses: detailed information;  Simplified Customs Declaration Process: notification of non monetary amendment;  Change or cancel a Simplified Frontier Declaration;  Moving qualifying goods from Northern Ireland to the rest of the UK;  Trading and moving goods in and out of Northern Ireland;  Search the register of customs agents and fast parcel operators; and  Customs Declaration Service. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service and Cabinet Office Borders bulletins are also available. HMRC has contacted us with another reminder that from 1 March 2024, the Import One Stop Shop opened for businesses in Northern Ireland and the newly established Windsor Framework Democratic Scrutiny Committee has begun hearing evidence. And finally, the Department of the Environment and Rural Affairs has sent an email setting out common errors found by sample health certificate checks undertaken since the first phase of the UK’s new border controls were implemented from 31 January.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Official customs seals and trader sealing;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  Moving qualifying goods from Northern Ireland to the rest of the UK;  Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020;  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020;  Reference document for authorised use: eligible goods and authorised uses;  Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020;  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020;  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020; and  Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available. HMRC has sent a further email reminder about changes to how goods are imported into Great Britain from Ireland as a result of the first phase of implementation of new import controls from 31 January 2024. And finally, HMRC has confirmed that the VAT Import One Stop Shop (“IOSS”) scheme in Northern Ireland will open for registrations from 1 March 2024.  VAT IOSS  We previously reported in our EU exit corner that HMRC had confirmed to Chartered Accountants Ireland that the delivery of the VAT IOSS in Northern Ireland (“NI”) would commence from 1 March 2024.   IOSS is an optional VAT accounting scheme that VAT registered businesses can use when they import low value goods (non-excise goods with a consignment value of £135 or less) from countries outside the EU and NI, to consumers in the EU, NI, or both. HMRC has confirmed that as planned, the scheme will be available for direct registrations in NI from 1 March 2024  Last week, HMRC published guidance on the scheme and the changes on how to report VAT on sales of low value goods that are located in Great Britain at the point of sale to consumers in Northern Ireland.   Find more information on GOV.UK at: - https://www.gov.uk/government/collections/vat-import-one-stop-shop-scheme.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service;  Notices made under the Customs (Northern Ireland) (EU Exit) Regulations 2020;  Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018;  Apply to use simplified declarations for imports you entered in your records without authorisation;  Making a simplified frontier declaration;  Check how to move goods through ports that use the Goods Vehicle Movement Service;  Manually arrive your goods in the UK;  Making a full import declaration; and  Trading and moving goods in and out of Northern Ireland. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service Bulletin is also available. Now that the first phase of the UK’s new import controls has commenced, we take this opportunity to remind you of the various phases in both the UK’s Border Target Operating Model and implementation of the Windsor Framework which are set out in a flyer prepared by the Institute’s Public Policy and Tax team. More guidance is set out below on the first phase of the UK’s new import controls in the context of certain meat products which confirms an extension to certain transitional arrangements until 30 April 2024, and we also take a look at the outcome from the recent Call for Evidence on Expanding export support.  Guidance on the UK’s new import controls – certain meat products  The Foreign and Commonwealth Directorate Office has asked us to share recently published guidance on minced meats, meat preparations and mechanically separated meat in the context of the UK’s new import controls which commenced from 31 January 2024 which effectively extends the transition period until 30 April 2024.   The default position is that imports of meat preparations and minced meat into Great Britain must be deep frozen. Imports of minced poultry meat and pig or poultry mechanically separated meat are not permitted.  In 2022, Ministers announced a delay in applying these prohibitions and restrictions to imports from the EU. Consequently, the government extended the statutory transition for meat preparations until 31 January 2024.   The guidance note now published confirms that the statutory transition for meat preparations did not end on 31 January 2024 and has been further extended until the end of April 2024 in line with the timetable for checks under the Border Target Operating Model (“BTOM”).  Call for evidence outcome: Expanding DBT export support in Northern Ireland, Scotland, and Wales  In this Call for Evidence, the Department for Business and Trade (“DBT”) proposed increasing its export support in Wales, Scotland, and Northern Ireland by introducing one-to-one support to complement existing services.  The DBT proposes increasing its export support in the Nations by introducing one-to-one support that complements existing services in the form of DBT International Trade Advisors (“ITAs”). ITAs are currently available in the English regions, and introducing this support to Northern Ireland, Scotland, and Wales, will ensure that DBT offers consistent export support across the UK. This rationale is set out in the corresponding document Exporting for Growth, DBT Services in the Nations.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  CDS Declaration Completion Instructions for Imports;  Customs declarants and declaration volumes for international trade in 2023;  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  Notices made under the Customs (Export) (EU Exit) Regulations 2019;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Simplified procedures exclusion list of procedure and additional procedure codes for CDS;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service; and  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service. 

In October 2023, HMRC announced that the 31 October 2023 deadline for the end of the VAT margin scheme for second hand vehicles moved from Great Britain (“GB”) to Northern Ireland (“NI”) prior to 1 May 2023 was being extended to 30 April 2024. This six-month extension followed extensive lobbying from Chartered Accountants Ireland in September and October 2023. We are now issuing a reminder that the extended deadline of 30 April 2024 is in just over two and half months.   This means that any vehicles moved from GB to NI prior to 1 May 2023 but sold after 30 April 2024 will require output VAT to be charged on the full selling price, and not on the margin. Businesses affected should check how such stock is selling – please contact us to discuss if this vehicle stock continues to be slow-moving. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service Bulletin is also available and the UK Government has provided a range of resources which aim to provide support as a result of the UK implementing the first stage of its new import controls which commenced from 31 January 2024 (see below for details). On the Northern Ireland front, the return of the Northern Ireland Assembly has resulted in a new committee being formed, the Windsor Framework Democratic Scrutiny Committee.   Resources to assist with new UK import controls  The UK Government has provided a range of resources which aim to provide support, help, and guidance as a result of the UK implementing the first stage of its new import controls which commenced from 31 January 2024 as part of the first phase of its Border Target Operating Model (“BTOM”). These are as follows:  Details of key contacts which can be used for urgent border issues relating to health certification and pre-notification;  Information on the UK Government’s approach to compliance and enforcement in respect of the BTOM;  An email from HMRC providing guidance on the customs requirements to move goods from Northern Ireland to Great Britain through Ireland; and  The latest Cabinet Office Borders Bulletin which contains important Border Target BTOM guidance for businesses.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Software developers providing customs declaration software;  Known error workarounds for the Customs Declaration Service (CDS);  Importing SPS controlled goods that interact with ALVS;  How to apply for a repayment of import duty and VAT if you've overpaid (C285);  Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service;  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Bringing commercial goods into Great Britain in your baggage;  Taking commercial goods out of Great Britain in your baggage;  Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; and  Notices made under the Customs (Export) (EU Exit) Regulations 2019. 

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 also available and HMRC has sent an email about the impact of industrial action on 15 March on goods movements. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Apply for a certificate confirming an employee pays UK National Insurance when working abroad (CA3822); Check simplified procedure value rates for fresh fruit and vegetables; High risk food and feed of non-animal origin (HRFNAO): official certificates; Apply for approval to be part of the Registered Consignee scheme in Northern Ireland; Apply for approval to be a tax representative in Northern Ireland; Apply for an Advance Origin Ruling; External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Notices made and draft notices to be made under the Taxation (Cross-border Trade) Act 2018; Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS); Customs Declaration Service communication pack; External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service; and Manually arrive your goods in the UK.    

Akriti Gupta, Advocacy and Voice writes: There are less than eight weeks to go to the 31 October Brexit deadline. According to recent reports, 70 per cent of smaller businesses believe that Brexit will adversely impact their business, affecting not only on trade, but business sentiment and investment as well. Ireland is a small open economy, heavily reliant on the UK market as its trade-testing ground. Small businesses that trade with the UK will be affected by supply chain disruption, currency risk, trade tariffs and the requirement to operate within dual regulatory frameworks; the principal risk is the disruption of any continued trade post-Brexit. Practitioners need to liaise with their clients on Brexit-related issues now if they have not already done so. With Brexit timelines still not established and future business models remaining unclear, smaller businesses and their professional advisers are strongly advised to consider the following five points:  1. Assess and develop customs capacity We are encouraging businesses across Ireland and the UK which are currently trading with each other to ensure that they can continue to do so post-Brexit. To do this, they must understand the rules that will apply for importing and exporting. While some businesses have experience of the customs formalities required to import and export outside of the EU, for many, particularly the smaller business, it will be their first exposure to them. All business should first apply for a customs registration, i.e. an Economic Operator Registration and Identification Number (EORI). It takes between three and five minutes online to acquire this (see below). Statistics from Revenue and HMRC suggest that thousands of small businesses on the island of Ireland have not applied for one; such business should be encouraged to acquire this without delay. Regardless of whether customs duties apply to goods moving between Ireland and the UK and the UK and the EU, customs declarations must be submitted to Revenue and HMRC respectively. Businesses should also use the time between now and 31 October to improve their knowledge of customs procedures, and close off any gaps in their customs knowledge that could prevent them from completing customs returns and declarations necessary to keep goods moving. Businesses will need to have customs expertise and relevant software to file these declarations, or should hire an agent to do this on their behalf. It is important to remember that tax authority officials will check that the proper declarations are in place; goods will be detained at ports and borders if they are not. There are various government supports to help do all of this. 2. Review your supply chain and market Tariff barriers and border control will cause delayed investment and barriers to trade for small businesses. Businesses must conduct a SWOT analysis of their existing supply chain and consider alternative suppliers and markets outside the UK. We would also recommend speaking to all customs agents and goods transport services as there will also be changes to transportation and logistics between Ireland, the UK and other EU countries. Post-Brexit, businesses that use the “landbridge” will face new rules when using the customs transit procedure, causing delays that will especially impact goods with a short shelf-life. Businesses should consider applying to Revenue/HMRC to avail of customs supports which may allow goods to be moved in an easier manner.  3. Review all your certification, regulation and licencing It is essential that businesses check that their products or services are fully compliant with all relevant regulation for sale on the UK or EU market post-Brexit. Businesses in highly regulated sectors such as medical device manufacturing, construction and transportation must be particularly sure that their registrations, certifications and licensing are still valid. Where appropriate, they will need to ensure that their UK supplier has appointed an EU-based authorised regulator, as EU registrations issued to UK companies prior to Brexit may no longer be valid.  4. Manage currency and cash flow Volatility in currency markets, particularly around the euro/sterling exchange rate, will present a key challenge for businesses post-Brexit. It is imperative for both importers and exporters to assess their currency exposure. Both importers and exporters should hedge their future transactions to give themselves certainty and a concrete base from which to price their goods and services. Businesses should also be availing of government supports to help manage cash flow and mould their business plans accordingly. One such government support is the Brexit loan schemes; however, only ten per cent of these loan schemes have reportedly been accessed. The Irish Government is now communicating via emails, letters and customs workshops to smaller businesses to encourage them to avail of this facility in order to help them prepare. In the UK, HMRC has stated that it will issue EORI numbers to most VAT-registered businesses, while also making available additional funding to support businesses with the costs of making customs declarations. Businesses based in, or with a branch in, the UK can apply for this funding ahead of the UK leaving the EU. 5. Protect and inform staff The responsibility to check potential visa requirements for staff, and the recognition of professional qualifications and licences required to practice, remains with the employer. Where relevant, businesses must account for these requirements and keep their staff informed of any developments. With a talent shortage in many areas, businesses must invest in learning and development for staff as a priority. In addition to taking the above steps, smaller businesses and their professional advisers are strongly encouraged to attend all possible government events and working groups, and ensure that they are maximising government-run Brexit preparation programmes and supports. Read all our updates in our Brexit web centre at https://www.charteredaccountants.ie/brexit and our page dedicated to no-deal Brexit planning at https://www.charteredaccountants.ie/knowledge-centre/brexit/no-deal-Brexit-planning.