The UK will be exiting the European Union, following the result of the national referendum on 23 June 2016, which is now currently scheduled for 31 January 2020.
The current rules on trade, travel, and business for the UK and EU will continue to apply during the transition period, and customs clearance documentation is not required. So from an import and export with Europe point of view, it is business as usual for FLS including rates, vehicle availability and transit times.
As previously advised we would suggest that you should be providing commercial invoices and packing lists for your European shipments in readiness for future customs clearance requirements.
Once any deals, and requirements are released we will be providing all customers with full details and will be available to talk through what might affect your business and its supply chain.
… your business can take some actions now to prepare for 2021.
You should also decide how you want to make customs declarations and whether you need our support with this. As we’ve heard a no-deal Brexit, is still on the cards, and if implemented will involve a significant increase in customs administration. HMRC is recommending you engage a customs partner to assist you during this period and FLS is perfectly placed to assist you with your customs activity during this period and beyond whilst still providing first-class freight transport options.
A summary of issues, concerns and actions follow below:
Whether you trade with the EU, operate in the EU or rely on companies based there, It’s going to affect your business and FLS will do our best to keep you updated with all Brexit-related developments in the logistics industry and to make your operations as Brexit-proof as possible.
Day 1 No Deal Scenario
In a no-deal scenario: –
Businesses will not have enough skills and capacity to comply with customs declarations on day 1
Agent capacity is unlikely to meet demand
Many small businesses may cease to trade
Summary of Day 1 easements
Agents may be reluctant to take on business from new customers lacking knowledge of international trade and/customs procedures
HMG Government objectives:-
Facilitate the flow of goods
Protect revenue and ensure compliance with standards
Day 1 easements:-
Transitional Simplified Procedures
Data-driven solutions are being reviewed for smarter borders
Many matters are still under discussion
Some look good on paper but are unproven
Nothing about Ireland
More changes are expected: –
Ro-Ro Day One – Import
The importer must have an EORI number
Pre-lodge import declaration in CHIEF or use EIDR
Entry Reference or EORI number to be provided to the carrier
Safety and Security declaration to be submitted and ENS reference to be provided to the carrier prior to boarding
Authorities indicated that additional checks will be kept to a minimum – intelligence-led
As goods pre-entered and have safety and security declarations submitted, they should be free to leave the UK port of arrival
Goods have to arrive into the UK- entry updated in CHIEF by close of business on the next working day
Arrival creates the tax point –monies to be collected
Carriers have to have the ENS or EORI number no legal requirement for this to be passed to the ferry operator.
Ro-Ro Day One – Exports
A combined customs export and safety and security declaration will be required
Pre-lodge any supporting documents on relevant systems
Exporter or f/fwdr advises hauler if P2P granted
For interventions requiring a physical goods check the cargo must be taken to Designated Export Place (DEP)
Hauler checks in for boarding
General rule no departure message generated
High-risk goods require a full departure message
Check EU import processes Transitional simplified procedures
Traders can register to use TSP to delay full declarations at RoRo locations
TSP will be reviewed 3 to 6 months after 29 March 2019
12 Months’ notice will be given when HMG decides to withdraw
Transitional simplified procedures
To be eligible, traders must: –
Be established in the UK
Have the intention to import goods from EU into the UK
Have an EORI number
Traders are not eligible if: –
Goods are imported from outside the EU
Goods are subject to a Customs Special Procedure or control
They are an intermediary or acting on behalf of someone else
History of non-compliance
Traders will require the following to register: –
EORI number needed in order to trade with the EU
Unique Taxpayer Reference (if applicable)
VAT registration number (if applicable)
Business name and UK address
Online Registration available from 7th February TSP Declaration Process
Controlled goods mainly need: –
Excise products such as tobacco or alcohol
Send a simplified frontier declaration before goods are imported
Ensure goods are accompanied by fulling supporting documentation e.g. licences etc
Send a supplementary declaration by the fourth working day of the month following the arrival of goods into the UK
HMRC will collect by direct debit on the 15th day of the month after the goods have arrived in the UK.
TSP Standard Goods process (Transitional simplified procedures are currently suspended)
The trader makes a declaration directly into their commercial records when goods cross the border
The trader will provide the hauler with their EORI number as proof that goods are subject to a TSP process
This is followed by a supplementary declaration by the 4th working day of the month following the arrival of goods in the UK
All Duties and Taxes will be taken by Direct Debit on the 15th day of the month following the arrival of goods into the UK
Changes to CFSP (Customs Freight Simplified Procedures)
Forwarders alternative to TSP
The problem has been the question of Customs Representation where forwarder uses their own Deferment
Easement to allow customs agents to act as a direct representation whilst using their own CFSP authorisation
The trader will be solely liable for VAT
The policy is time-limited, but HMRC will give 12 months’ notice period when this policy changes
Applies to all ports in UK and trade lanes
Easement limited to goods being released to free circulation
Traders must have a duty deferment account to use TSP or agents CFSP: –
Direct debit mandate required
Allows HMRC to take a monthly payment of duties
Direct debit taken by 15th day after the month that the supplementary declaration is submitted
Day 1 easements:-
Traders will not be required to meet CCG criteria
Traders will have until 30 June 2019 to submit a financial guarantee
Traders can still apply for CCG, those with AEO-C can still seek a reduction/waiver from the guarantee
Traders will not be required to meet CCG criteria nor provide a financial guarantee for:-
Still need to meet criteria for the special procedure
The policy will be monitored, 12 months’ notice will be given of traders
Guarantees for transit
Requirements for transit are governed by the CTC
CCG will be required to cover several transit movements
An individual guarantee can be used for several movements
An individual guarantee can include a guarantor undertaking from a bank or financial institution and a cash deposit
The level of guarantee depends on the territories being transited
As guarantees can take several weeks to set up, traders should contact the appropriate financial provider-NOW
Parcels –day 1
Low-value VAT relief on parcels removed
For shipments valued at £135 or less, the overseas sender is liable for VAT
An overseas trader must register and account for VAT showing an identifier on their paperwork
Goods above £135 will incur VAT with declaration
LVBI is still available in the short term
Basic VAT procedures to be kept the same where possible
Postponed VAT accounting for imports to be reintroduced (for VAT registered traders only)
Import VAT to reclaimed quarterly
Non-postponed accounting will incur VAT immediately
Import VAT statement similar to C79 will be available from the digital services: –
The statement used to support VAT return
The problem what to use as evidence of export where no departure message generated
15,000 lines of PPE delivered in record time. Great to use this business in this difficult time.
...it does not matter what challenge you present them with, they step up with a can do attitude that is second to none.
FLS are a fantastic team of people, from the top management down. Every member of the team I have had the pleasure to work with has been extremely helpful and has provided a fast effective solution to the requirement I have given them PPE delivered in record time. Great to use this business in this difficult time.
24 hours a day, 365 days a year our dedicated team are here to help
Our experienced operators will be able to support you and advice on the best possible solution for your consignment.
FLS are a fantastic team of people, from the top management down. Every member of the team I have had the pleasure to work with has been extremely helpful and has provided a fast effective solution to the requirement I have given them
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