If you’re a trader, you should familiarise yourself with a number of customs changes that are coming into effect on 1 January 2022.
Customs declarations
You will no longer be able to delay making import customs declarations under the Staged Customs Controls rules that have applied during 2021. Most customers will have to make declarations and pay relevant tariffs at the point of import. You can appoint an intermediary, such as a customs agent or a freight forwarder, to deal with your declarations on your behalf or you can submit them yourself.
Some businesses already have a ‘Simplified Declarations’ authorisation from HMRC that allows their goods to be released directly to a specified customs procedure without having to provide a full customs declaration at the point of release.
If you want to use Simplified Declarations, you’ll need authorisation to do so. It can take up to 60 calendar days to complete the checks needed for this and you will also need to have a Duty Deferment Account in place.
Border controls
Ports and other border locations will be required to control goods moving Great Britain and the EU. This means that unless your goods have a valid declaration and have received customs clearance, they will not be released into circulation, and in most cases will not be able to leave the port.
From 1 January 2022, your goods may be directed to an Inland Border Facility for documentary or physical checks if these checks cannot be done at the border.
You must also submit an “arrived” export declaration if your goods are moving through one of the border locations that uses the arrived exports process. If you do not follow the correct process, the new systems will not permit your goods to leave the country and they will be turned away as they will not hold export clearance.
Rules of origin – for imports and exports
The UK’s deal with the EU, called the Trade and Cooperation Agreement (TCA), means that the goods you import or export may benefit from a reduced rate of Customs Duty (tariff preference). To use this, you need proof that the goods you:
“Originate” means that
- import from the EU originate there
- export to the EU originate in the UK
Goods “originate” means the country where goods (or the materials, parts or ingredients used to make them) have been produced or manufactured.
UK and EU importers can claim tariff preference if they have one of the following proofs of origin:
- a statement on origin – this 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, at the time you export your goods.
Postponed VAT Accounting
If you’re a VAT-registered importer, you can continue to use Postponed VAT Accounting (PVA) on all customs declarations that require you to account for import VAT, including supplementary declarations, except when HMRC have told you otherwise.
Commodity codes
Commodity codes are used worldwide to classify goods that are imported and exported. They are standardised up to 6-digits and reviewed by the World Customs Organisation every 5 years. Following the end of the latest review, the UK codes will be changing on 1 January 2022.
Source: https://www.gov.uk/
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