Full customs controls came into force on 1 January 2022 – one year after the Brexit transition period ended.
If you import goods from Europe into Great Britain or export from the UK, here is what you need to know.
What’s changed?
Until 31 December 2021, businesses were able to delay making declarations on goods – apart from controlled goods, such as alcohol, weapons, chemicals, or drugs – brought into Great Britain (England, Scotland and Wales) from Europe.
This meant that you could delay sending HM Revenue & Customs (HMRC) full information about your goods by up to 175 days after import.
Delayed imports were introduced after the end of the Brexit transition period to give traders time to prepare for new customs controls and procedures.
But from 1 January 2022, businesses are now required to make full customs declarations and pay any tariffs at the point of import.
What are the new rules from 1 January?
- Traders have to make full import customs declarations and pay relevant tariffs at the point of import.
- Goods may be directed to an Inland Border Facility for customs checks if these checks cannot be done at the border. From this date, you must also submit an “arrived” export declaration if your goods are moving through one of the border locations that use the arrived exports process.
- You must use the correct country code for the country of origin and the country of dispatch when you complete your customs declaration. The EU country code can no longer be used.
- Pre-notification requirements of Sanitary and Phytosanitary (SPS) goods are required.
- UK commodity codes have changed.
Rules of Origin – for imports and exports
Goods imported to the UK or exported to Europe can benefit from a reduced rate of Customs Duty if they abide by the rules of origin.
Under the latest update to use this preferential tariff you need proof that the goods you:
- Import from the EU originate there
- Export to the EU originate in the UK.
‘Originate’ is defined as where goods (or the materials, parts or ingredients used to make them) have been produced or manufactured.
It is not where the goods have been shipped or bought from. All goods will need to meet the product specific rules of origin requirements set out in the Trade and Cooperation Agreement (TCA).
UK and EU importers can claim tariff preference if they have one of the following proofs of origin:
- A statement on origin, which must be made out by the exporter to confirm that the product originates in the UK or EU
- the importer’s knowledge – this option allows the importer to claim tariff preference based on their own knowledge of where the goods they’re importing originate from.
If you export goods to the EU and you provide the EU importer with a statement on origin, you may also need to have a supplier declaration in place.
Under the previous rules in 2021, exporters were permitted to use the preferential tariff and get supplier declarations afterwards.
However, from 1 January 2022 supplier declarations (where required) must be provided at the time goods are exported.
Where a supplier declaration to confirm the UK origin of goods you exported to the EU between 1 January and 31 December 2021 cannot be supplied, the customer must be informed.
If a UK exporter cannot provide this supporting evidence their EU customer will be liable to pay the full (non-preferential) rate of Customs Duty and the exporter may face a penalty.
Postponed VAT Accounting (PVA)
Despite the other changes, VAT-registered importers can continue to use Postponed VAT Accounting (PVA) on all customs declarations that require them to account for import VAT, including supplementary declarations, except where HMRC has said otherwise.
PVA has already provided significant cash flow benefits for thousands of businesses, and HMRC expects that most businesses will choose to use it.
Future changes
Some customs controls have been delayed further to give businesses more time to prepare. This means:
- Safety and Security Declarations at entry will not be required until 1 July 2022.
- Certification and physical checks for all remaining regulated animal by-products, all regulated plants and plant products, all meat and meat products, and all remaining high-risk food not of animal origin will not be required until 1 July 2022.
- High-priority plants and plant products checks will be transferred from the place of destination to designated Border Control Points (BCP) from 1 July 2022.
- Physical checks on live animals will take place at designated border control posts where a facility is operational at the point of entry from 1 July 2022.
- Certification and physical checks will be introduced for all dairy products from 1 September 2022.
- Certification and physical checks will be introduced for all remaining regulated products of animal origin, including composite products and fish products, from 1 November 2022.
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