In this week’s EU exit corner, the latest Trader Support Service bulletins are featured together with news of letters to businesses, a new HMRC campaign, a planner to keep track of supplementary declarations, an update on both the reimbursement scheme and at risk apportionment guidance and much more.

Letters to businesses about importing and exporting goods between GB and the EU

HMRC has sent letters to VAT-registered businesses in GB trading solely with the EU, or the EU and the rest of the world. They explain what businesses need to do to comply with the new rules for importing and exporting with EU countries including:

• making sure they have a UK Economic Operator Registration and Identification (“EORI”) number;
• ensuring they are ready to make customs declarations;
• checking if their goods are eligible for the preferential zero duty rates; and
• preparing for the end of staged import controls on 1 January 2022.

New HMRC campaign

HMRC has also launched a new campaign aimed at helping UK businesses prepare for the customs changes coming into force from January 2022. More than 160,000 businesses will receive a letter from HMRC explaining the steps they need to take to continue trading in the EU. In particular, the letter highlights guidance on making supplementary declarations, appointing a customs intermediary and the requirements for Export Health Certificates which are needed for animal products. HMRC will continue to contact businesses over the coming months with more information on the introduction of full customs declarations.

Latest Trader Support Service Bulletins

The latest Trader Support Service (“TSS”) bulletins are available. These feature the following:-

• how to access NI Customs and Trade Academy guides and support within the TSS portal;
• Automatic Licence Verification System – coming soon to TSS;
• a reminder about the updated Goods Vehicle Movement Service;
• updated Customs Declaration Service error code guidance;
• find out if you need to pay a tariff on your goods brought into NI from GB;
• preparing for full frontier declarations;
• supplementary declarations – timeline reminder;
• supplementary declarations – help;
• updating your company details in the TSS portal;
• responding to feedback;
• a recent webinar on live animal movements;
• TSS beginners guide; and
• The TSS in action: Hyundai gets personalised help from the TSS team to clear supplementary declaration backlog.

New personalised supplementary declaration planner

If you’ve chosen to delay making customs import declarations on non-controlled goods that you’ve brought in from the EU this year, you have to make a supplementary declaration within 175 calendar days of your shipment arriving in GB. A new planner has now been published which sets out the key actions you need to take to complete your supplementary declaration within 175 calendar days of importing your goods.

Events and webinars

Keep up to date with the latest events and webinars. A calendar of upcoming webinars for organisations that trade with the EU is available.

Useful links

• You can sign up to email alerts on GOV.UK; and
• Sign up for Home Office email updates about the next steps for EU citizens in the UK.

Reimbursement scheme – HMRC responds to Institute’s letter

Last month, the Institute received a response from HMRC after seeking an update on when the duty reimbursement scheme will be ready for tariffs paid on “at risk” goods brought into NI from GB which are subsequently found to have stayed in NI. In its response, HMRC said that “work continues at pace to develop the scheme” but they are unable to give a definite date for when it is ready.

HMRC reminded readers that there “are a range of options available to allow traders to move goods into Northern Ireland without incurring tariffs and we encourage you to highlight these to traders. We have also recently launched a tool to help traders understand their tariff options when moving goods GB-NI. It can be found at https://www.gov.uk/check-tariff-goods-ni-from-gb.” HMRC are also keen to hear feedback on this tool.

We are aware of the cash flow and other implications of the delay in opening the reimbursement scheme and will continue to discuss this with HMRC and keep members updated.

Goods not at risk – HMRC’s apportionment approach

As previously advised, HMRC has developed an apportionment approach that allows businesses authorised under the UK Trader Scheme to declare goods “not at risk” based on the expected outcome for the goods, where the final destination is not known at the time the goods enter Northern Ireland. The guidance has been updated recently to provide additional content on reconciliation and evidence to support the apportionment used. For more information refer to the EU Exit developments.

One Stop Shop Portal now operational

The EU’s VAT e-commerce rules changed with effect from 1 July 2021 and under the terms of the Protocol on Ireland / Northern Ireland, this affects NI businesses that sell goods to the EU.

The One Stop Shop (“OSS”) procedure is designed to enable businesses to register in one Member State and complete one return for all EU sales. This is a major simplification and negates the needed to register for VAT and submit VAT in potentially all of the EU Member States that sales are made to.

Businesses that sell goods from NI to the EU are able to pay VAT to all EU countries through HMRC using the OSS. HMRC confirmed to the Institute in its letter last month that the system is now operational. Updated guidance is now available, which includes a link to the OSS portal.

Customs processing

HMRC has sent information about some of the approvals and special procedures that may help simplify customs processing and reduce VAT and customs duty owed and where to go for more help. These may be useful if you are a business that usually re-imports or re-exports as part of your business process. Refer to the EU Exit developments for the full text of information sent by HMRC.

Webinars

Importing – steps you need to take before making your supplementary declaration

To support those who’ve delayed their customs import declarations, HMRC explains in this webinar the actions you need to take before you can make a supplementary declaration and how intermediaries can help you do this.

Please register to take part if your clients have imported goods since 1 January 2021 and not yet completed a customs declaration for them.

If your clients are planning to import and you want to understand the full declarations process, please register for Customs Import Declarations: an overview.

Exporting: what you need to do to keep your goods moving

This webinar is an overview of the actions to take now when exporting goods from Great Britain to the EU and moving goods between Great Britain and Northern Ireland. Key processes include zero-rated VAT, customs declarations and using an intermediary in addition to licences, certificates, and authorisations.

Please register to take part if you’re planning to export.

Trader responsibilities when using an intermediary

This webinar explains your client’s responsibilities as a trader if they choose to use an intermediary to complete import or export declarations for their business. These are complex and an intermediary can save a lot of time.

Please register to take part if you’re planning to import or export.

Rules of origin

If your clients buy goods from the EU or send or sell goods to the EU for their business, this recorded webinar will help them understand rules of origin and what’s required to meet the rules. It can be paused or rewound to allow you or your clients to work through the information at your own pace.

You can watch the recorded HMRC webinar on YouTube.

BEIS reservations tool

The Department for Business Energy and Industrial Strategy (“BEIS”) has created a reservations tool designed to support businesses who export services to the EU. The tool enables businesses to identify the reservations in the UK-EU Trade and Cooperation Agreement (“TCA”)that are relevant to them.

What are reservations?

The UK-EU TCA provides rules on international trade in services and investment, known as core commitments. These rules allow firms from each party to sell services to, and invest in, the other party, without discrimination. Reservations are areas where each party has reserved the right not to follow the core commitments.

Reservations are located in two annexes of the TCA. Annex I reservations set out the exceptions and limitations that are required by each party’s laws and regulations that were already in force when the agreement was signed (30 December 2020). Annex II reservations allow each party to introduce new discriminatory or trade restrictive laws or measures in future that do not conform to the core commitments, in relation to specified areas.

For example, Spanish law states that statutory auditors in Spain must be nationals of a Member State. The law is listed in Annex I and the reservation describes how the law does not conform to the core commitments.

What is the reservations tool?

The EU has taken over 500 reservations under the TCA and the precise rules on trade in services and investment varies between Member States and from sector to sector. The BEIS reservations tool can be used for searching through reservations listed by country, industry and sector. Reservations can also be filtered to identify those that are relevant to the user.

Instructions for use are included on the ‘Cover Page’ tab of the tool.

The reservations tool has been designed to be accessible for all types of businesses. However, due to the technical nature of reservation text, BEIS expects it will be most useful for consultancy or legal firms. Businesses and professionals who use the reservations tool should still seek professional advice or liaise with the relevant EU Member State(s) when providing services, investing or travelling for business in the EU.

Guidance updates

A collection bringing together customs, VAT and excise EU Exit legislation and customs notices that have the force of law applicable to the UK’s departure from the EU has been published on GOV.UK .

Details of how to register for the One Stop Shop (“OSS”) Union scheme to report and pay VAT due on distance sales of goods from Northern Ireland to consumers in the EU are also now available.