British businesses have been urged to prepare for changes to the rules over trade with the EU, which will come into effect over the next six months.
The Government is encouraging UK firms to prepare for the changes of rules for trading with the bloc.
HM Revenue & Customs (HMRC) has written to more than 160,000 VAT-registered businesses explaining the measures firms must take to continue trading with their counterparts on the continent.
To soften the impact of the UK’s departure from the EU single market and customs union last year, the Government announced the easing of new declaration requirements and other customs checks on imports from the continent. This included the ability to delay completing declarations on imports.
However, traders who decide to take advantage of this must complete a supplementary declaration within 175 calendar days of the date of their import from the EU.
Speaking on a webinar last month about the rules, the Institute of Export & International Trade (IOE&IT) Academy director Kevin Shakespeare said: “Government easements don’t mean traders can do nothing – you need to prepare for this new timetable. The clock has started ticking.”
Other requirements
Firms will also need to apply for a duty deferment account (DDA) and authorisation to use simplified declaration procedures, as well as deciding whether to make their own declarations or get a customs intermediary to do this on their behalf, the letter warned.
On top of this, from 1 October 2021, firms trading products of animal origin, certain animal by-products and high-risk foods not of animal origin will be required to make pre-notifications to British customs ahead of their goods movements.
Also, from this date, if traders have not made a full customs declaration for an export consignment, their haulier or carrier will need to submit a standalone exit summary declaration providing safety and security information.
Customs brokers have said that the delayed declarations timetable has simply delayed a crisis as UK firms remain unprepared for completing new customs processes for imports from the continent.
One said: “As many importers are new to the customs environment and have enough on their plates already, they will sleepwalk into a failure to declare.”
HMRC is providing information on how businesses can appoint intermediaries to deal with their customs documentation, including freight forwarders, customs agents and fast parcel operator.
However, there have been concerns in the past about there being a shortage of customs intermediaries in the market for businesses to call upon.
Reanda UK is a subsidiary of leading independent accountancy firm Grunberg & Co Limited. Our aim is to help businesses and individuals to navigate the UK’s world-renowned business and tax infrastructure, and to support them with their international ambitions. To find out how we can help you, please contact us.