From 1 July 2021, the UK will revert to its ‘Core’ import model. Businesses will be required to make declarations on all imports from the EU at the point of importation and pay the relevant tariffs to the UK border agency. Full safety and security declarations will be required, and physical border checks will be carried out.
The new business process for all goods movements – Stage 3:
- Import preparations
- Customs Declarations
- Duties and import VAT
- Safety and security declarations
In order to meet all the import regulations you will need to have:
- EORI (GB Economic Operator Registration and Identification) number
- Know the Commodity Code for your goods – make a customs declaration and calculate duties payable on the imports
- The customs value of the goods – the rules for valuation are based on the World Trade Organisation (WTO) valuation agreement
- Decide if you wish to use the available customs simplifications or facilitations
- How are you going to engage with HMRC CHIEF (Customs Handling of Import and Export Freight) system or the new CDS (Customs Declaration Service)?
Importers bringing in or receiving goods from the EU will have to complete a customs import declaration, these need to made into CHIEF/CDS. The importer or agent is responsible for the accuracy of the information inputted into the sytem.
Calculation of Tariff
The tariffs that are applicable are published on Gov.UK. The tariff payable is calculated by using the commodity code, the customs value of the goods and the origin of the goods. They are reliefs from custom duties on certain goods under certain circumstances. Duties may also be reduced, suspended, or eliminated if you use facilitations.
Simplified Declaration Procedures are in place to enable fewer requirements at the border, by allowing you to make a simplified customs declaration or entry in business records upfront, followed by a supplementary declaration up to 4 weeks later.
Goods imported from the EU will be subject to standard customs control from July 2021
From 1 July 2021, standard goods (as well as controlled goods) must be imported from the EU under one of the following models:
- The temporary storage model under which goods entering Great Britain can be stored for up to 90 days before being declared to customs
- The pre-lodgement model will require a customs declaration in respect of the imported goods to have been submitted in advance of boarding on the EU side.
For movements of goods from the EU to Great Britain, the entry summary declaration must be made in the UK S&S GB system, which is a separate system from CHIEF (or CDS). You can submit Entry Summary Declarations by either purchasing compatible software or employing the services of a Community System Provider.
The Pre-lodgement Model requires prior submission of a full customs declaration or an SDP or EIDR followed by a supplementary declaration by the fourth working day of the following month. The GVMS (Goods Vehicle Movement Service) will support the following pre-lodgement model from 1 July 2021:
- Allowing declaration references (a unique reference number proving that a declaration has been pre-lodged or is not required) in respect of each consignment carried by the haulier to be linked to one goods movement reference (GMR), which is presented at the frontier to show that all goods have been pre-lodged (requiring the haulier to collect references from each of the importers to enter in GVMS).
- The haulier must present the GMR to the carrier (for example, ferry) at the EU departure port (showing the declarations in respect of all the goods that have been pre-lodged) with GVMS enabling automatic arrival in CHIEF to allow HMRC to process the declarations and provide a risk outcome (goods cleared or not cleared) to be sent to the haulier/driver by the time the goods arrive in the UK (allowing the driver to continue his journey (if cleared) or to present the goods at a place for inspection (if not cleared)).
The Temporary Storage Method:
Goods imported from the EU can be stored temporarily under customs control before they are released into free circulation, exported or placed under an outward processing procedure, or placed under a special procedure (inward processing, customs warehousing, authorised use, or temporary admission). This will allow you to defer making a customs declaration and paying duties and taxes for up to 90 days from the date the goods are presented. You need to obtain authorisation to operate a temporary storage facility.
A temporary storage declaration is to be made, in the prescribed form and manner, no later than the time that the goods are presented to customs. A temporary storage declaration is not required if a customs declaration has been made by the time that the goods are presented to customs.
Safety and security declarations (S&S) import declarations will be required for imports from the EU into GB from 1 July 2021. This will be the same procedure as currently used for Rest of World trade. The goods must have their S&S import declaration submitted a specific number of hours in advance of the arriving at a UK port, this is to ensure Border Force has sufficient time to assses the declarations. In order to make a S&S declaration you need an EORI number. The submission declaration must be made in the UKS&S system – S&S GB. This is a seperate system to CHIEF/CDS.
Authorised Economic Operators (AEO)
AEO provides you to gain from a range of benefits, including reductuion in the level of guarantees needed and fewer physical checks.