News
As well as giving businesses more time to prepare, HM Revenue and Customs (HMRC) has unveiled a new package of measures to accelerate growth of the UK's customs intermediary sector.
As well as injecting £50 million to support businesses with recruitment, training and supplying IT equipment to handle customs declarations, the government intends to remove barriers for intermediaries taking on extra clients by adapting the rules around financial liability.
In total, the government has now made available £84 million to grow the customs intermediary sector to encompass EU trade after 2020. At the moment, agents cover non-EU trade though many, like parcel companies, do operate in the EU market.
The intermediary sector, including customs brokers, freight forwarders and express parcel operators, helps businesses to import and export their goods by ensuring the necessary customs paperwork has been completed.
The UK has also taken the decision to introduce the new border controls in three stages up until July 1, 2021. This flexible and pragmatic approach will give industry extra time to make necessary arrangements. The stages are:
- From January 2021: Traders importing standard goods, covering everything from clothes to electronics, will need to prepare for basic customs requirements, such as keeping sufficient records of imported goods, and will have up to six months to complete customs declarations. While tariffs will need to be paid on all imports, payments can be deferred until the customs declaration has been made. There will be checks on controlled goods like alcohol and tobacco. Businesses will also need to consider how they account for VAT on imported goods. There will also be physical checks at the point of destination or other approved premises on all high risk live animals and plants.
- From April 2021: All products of animal origin (POAO) for example meat, pet food, honey, milk or egg products and all regulated plants and plant products will also require pre-notification and the relevant health documentation.
From July 2021: Traders moving all goods will have to make declarations at the point of importation and pay relevant tariffs. Full safety and security declarations will be required, while for Sanitary and Phytosanitary (SPS) commodities there will be an increase in physical checks and the taking of samples: checks for animals, plants and their products will now take place at GB Border Control Posts.
