Customs Transit Procedures (Brexit UK)

The Customs Transit Procedures (EU Exit) Regulations 2018 (SI 1258) are enacted. These will come into force when separately determined by Treasury Regulations (not enacted yet, these separate Treasury regulations will be made under the (Brexit) Taxation (Cross-border) Trade Act 2018. The Regulations are here.

These Regulations make provision for the international movements of goods, with import duty suspended, under the internationally recognised common transit procedure and TIR Carnet system, with provision for such movements within the United Kingdom. They also provide for such movements of goods under arrangements for NATO forces.

When enacted, they will ensure that these customs procedures operate as before once the United Kingdom exits the European Union.

Draft Notices to be made under these Regulations are here.

Detailed following of the new Customs arrangements is beyond the scope of this Blog. HMRC continue to publish guidance and instructions. Please follow HMRC for these.

Grants for Customs Declarations (Brexit)

The UK Government has today announced grants for companies and individuals carrying out customs declarations, the details are here.

– Up to £750 for each employee receiving training

– Up to €200,000 for new software (the maximum under EU state aid rules)

PricewaterhouseCoopers (PwC) is administering the grants for HMRC.

More information about the grants is on PwC’s website. The link to apply will be published on the government link above in early December 2018.

Ireland and the Netherlands have been offering grants for some time – here.

Customs, Excise and VAT (UK Brexit)

I have posted already with the UK Technical Notices for Brexit Preparedness. HMRC has three of these Technical Notices. Further instruction is now issued from HMRC in the form of a Partnership Pack. This is here.

For goods exports, the following is required :

(1) register for an EORI number – not open yet [EORI – is UK Economic Operator Registration and Identification Number] and ensure the EU bloc customer also has an EORI number

(2) check is a special licence is required

(3) get the commodity code from published codes

(4) get the correct Customs Procedure Code (CPC)

(5) decide how to declare to HMRC – this is complex – decide if to pay a Freight Forwarder, an Express Courier, or a Customs Agent/Broker

(6) register for the National Export System (NES)

(7) attach the invoice (and licence if needed) with the goods transport

(8) present the goods to customs

(9) finalise the Export entry on HMRC CHIEF system

(10) keep records for 6 years

The Pack is the first of a series of more specific HMRC instructions. This Pack also covers Goods Imports. It does not cover direct sales on a digital platform.

UK exits the EU (customs)

I posted before on Brexit Notices issued by the EU to Operators and Stakeholders. The EU has now set up a specific Brexit Customs website here.

Two Notices are available on this website :

(1) EU rules in the field of customs and indirect taxationhere.

Authorisations granting the status of Authorised Economic Operator (AEO) and other authorisations for customs simplifications, issued by the customs authorities of the United Kingdom will no longer be valid in the customs territory of the Union (from the exit day).

Goods originating in the United Kingdom that are incorporated in goods exported from the EU to third countries will no longer qualify as “EU content” for the purpose of the EU’s Common Commercial Policy. This will affect the ability of EU exporters to cumulate with goods originating in the United Kingdom and may affect the applicability of preferential tariffs agreed by the Union with third countries.

Taxable persons wishing to use one of the special schemes of Chapter 6 of Title XII of the VAT Directive (the so-called Mini One-Stop Shop or MOSS), who supply telecommunications services, broadcasting services or electronic services to non- taxable persons in the EU, will have to be registered for the MOSS in a Member State of the EU (from the exit day).

(2) EU rules in the field of import/export licences for certain goodshere.

As of the withdrawal date, import/export licences issued by the United Kingdom as an EU Member State on the basis of Union law will no long be valid for shipments to the EU-27 from third countries or vice versa.

This applies to : (full list is in the Notice)

– waste shipments

– certain hazardous chemicals

– ozone depleting substances

– drug precursors

[Article 50 transition arrangements, if agreed, may change the exit day from 00:00 30 March 2019 (CET) to 31 December 2020 – I posted separately about the Transition/Implementation Period]

Taxation (Cross-border Trade) Bill 2017-2019 (UK)

UPDATE : the SECOND READING commences Monday 8th January 2018 (next Monday).

UPDATE : the Resolutions are agreed and the Bill has been given its FIRST READING. The date of the SECOND READING is not announced. The Bill is here. The Explanatory Notes are here.

A Bill to impose and regulate a duty of customs by reference to the importation of goods into the United Kingdom; to confer a power to impose and regulate a duty of customs by reference to the export of goods from the United Kingdom; to make other provision in relation to any duty of customs in connection with the withdrawal of the United Kingdom from the EU; to amend the law relating to value added tax, and the law relating to any excise duty on goods, in connection with that withdrawal; and for connected purposes.

—–

This Bill is the Brexit Customs Bill. It will be given its First Reading ONLY following debate and approval of the relevant Ways and Means Resolutions on Monday (20th November).

Ways and Means Resolutions are used to approve parts of a Bill that will involve taxes and charges being made on the public.

In this case, there are two Ways and Means Resolutions :

(1) to provide for the charging of import and export duties, the administration and enforcement of these duties, and customs duties in connection with the UK’s withdrawal from the EU,

(2) to authorise the Bill to amend the law relating to VAT and excise duty on goods in connection with the Withdrawal of the UK from the EU. This resolution prevents certain provision being made in relation to zero-rates or reduced rates of VAT, or exemptions, refunds or new reliefs from VAT.

Both (1) and (2), if enacted, will authorise the making of statutory instruments and other provisions.

There is also a Money Resolution to authorise expenses which might be incurred by public bodies as a result of provision made by or under this Bill to be paid by Parliament, and deal with the destination of money received by public bodies (e.g. Licence fees).

In the view of HM Government, each of the Resolutions for this Bill (if passed) would authorise provision that extends and applies to the whole of the UK.

This post will be UPDATED with the Bill itself if the Resolutions are agreed. NB : updates on the post will NOT result in a new notification, so please go onto the Blog itself to check.