Last 4 weeks to prepare for the end of the Transition Period

From 1^st January 2021 Imports and Exports from Europe will be affected.

1. Do you have your EORI Number?
2. Have you set up a deferment account or are you planning to use ours?
3. Do you have your commodity codes?

What’s changing –

1. Customs Declarations from 1^st January 2021

• No change for non EU traffic
• Declarations required for all goods moving to and from the EU
• Export declarations will be required prior to goods leaving the UK

As your Freight Forwarder we do customs declarations for you – you just supply us with the following clearance instructions for each shipment.

If you don’t use TPS Global Logistics for your Import Declarations they must be submitted by the end of the working day following import.

This is the current guidance.

If you are authorised to use Customs Freight Simplified Procedures (CFSP) the process is as follows;

1. clearance at the frontier can be arranged either by a process called Entry In Declarants Records (EIDR), which  requires the importer to hold certain information in their own records at the time of import. OR

2. clearance by the submission of a Simplified Frontier Declaration (SFD) submitted by the end of the working day following import. A supplementary declaration providing full import entry details must be submitted by the end of the fourth working day of the month following import.

• If you use CFSP and import non controlled goods, you can defer the date of entry for up to 6 months (30 June 2021). E.g. goods arriving in June 2021 must be declared by December 2021. However the importer MUST estimate the import VAT due on their VAT return (relevant to the month of import) and make any corrections on the VAT return after the actual entry is transmitted.
• You can apply for CFSP here
• If you are exporting goods to the EU for processing and will be re-importing them to the UK after 1^st January 2021. Applying for outward processing will save paying duty on the UK element of the re-import. You can also apply for inward processing if you import goods from the EU for processing in the UK before exporting back to the EU, to save the UK import duty.

2. Safety and Security Declarations – At TPS Global Logistics we do these declarations for you

• Required from 1^st January 2021 for shipments to Northern Ireland.
• Required from 1^st January 2021 for UK exports to EU
• Required 1^st July 2021 for UK imports from EU

Carriers are responsible for these declarations.

3. New UK Global Customer Tariff and Duty Rates take effect from 1^st January 2021 (to check tariffs link here)

4. VAT Changes – Postponed Accounting (PVA)

All customs declarations made after 1^st January 2021 will have VAT accounted for on a traders VAT return – whether or not goods are imported from EU or non EU countries.

• Non VAT registered trader must pay VAT at the time of the customs declaration
• Traders not using simplified procedures (CFSP) have the option to pay on import
• Traders choosing to defer (CFSP) estimated and corrected VAT returns are required (see above)
• Importers opting for PVA will need to subscribe to Customs Declaration Service (CDS) to receive on online VAT statement. Details still be published by the Government.
• None of this applies to goods covered by the Northern Ireland Protocol. VAT changes for Northern Ireland;

5. Duty Deferment – VAT will no longer be deferred against a duty deferment account for any import traffic unless a trader indicates its preference for this option.

• Bank/insurance guarantees are not required for import VAT and any duty up to £10,000 per month.
• Further Govt confirmation required for guarantees to cover VAT for traders without Simplified Importing VAT Accounting in place.
• With or without a free trade agreement duty may be payable on some goods depending on origin criteria and the nature of the agreement made between the UK and EU. E.g. a product imported from China into the UK in 2021 and then exported to France may be subject to EU duty even if there is a free trade deal.

6. Common Transit Requirements – At TPS Global Logistics we do these for you

If we are not your carrier – Please ensure your carriers are ready for this requirement from 1st January 2021

Carriers will be responsible for guaranteeing customs dues when UK goods are exported over EU frontiers. Companies issuing transit documents will require a bank or insurance guarantee to cover the customs debt.

When UK goods are imported from the EU, shipments moving over frontiers can be accompanied by either a transit document or an Entry Accompanying Document (EAD).

7. Good Vehicle Movement Service – At TPS Global Logistics we do these for you

If we are not your carrier – Please ensure your carriers are ready for this requirement from 1st January 2021

This is an inventory of goods, to allow customs checks when moving goods via short sea ferry RoRO ports such as Dover, Holyhead and Channel Tunnel. Hauliers will be required to enter this information. Govt work on the detail is still in progress

• From 1^st January something will be in place for traffic to Northern Ireland and goods travelling under common transit.
• From 1^st July 2021 it will be required for goods moving to and from the EU

8. Check an HGV is Ready to Cross the Border Service – At TPS Global Logistics we do this for you

If we are not your carrier – Please ensure your carriers are ready for this requirement from 1st January 2021

The purpose of this service is to ensure that vehicles arriving at the short sea RoRo ports and terminals in Kent have the correct customs documentation in place to minimise delays.

• From 1^st January 2021 This system will be brought into use regardless of any free trade deal which might be agreed. The aim is to avoid queues while drivers wait for documentation to be processed and to discourage vehicles making the crossing without the required documentation.
• Once the declaration has been made, a Kent Access Permit will be issued which must be held by the driver. Hauliers are expected to make the necessary declarations, but it is expected that other parties will be able to access the web based system currently under development

9. Food Health Controls

From 1^st January 2021

• For all exports to the EU
• For imported high risk food

From 1^st April 2021 other food will be subject to checks

From 1^st July 2021 – all food will be controlled

• Health certificates and port declarations will need to be submitted via IPAFFS replacing the EU TRACE system
• Some products will require pre declaration via PEACH this should be replaced by IPAFFS
• Health certificates will be required for food products shipped to Northern Ireland from UK

10. Northern Ireland Protocol

11. Incoterms

EU traffic traditionally works on the basis that the shipper arranges all the transport arrangements under delivered duty paid terms (DDP),

OR: the buyer makes all the arrangements under ex works terms (EXW).

Business which continue with such terms need to be aware of the implications of keeping the status quo and the associated costs and responsibilities.

• A DDP supplier will be responsible for customs clearance at destination including any duty costs. Some buyers might insist that the supplier takes on the local supply of goods, paying local VAT and invoicing out using a local VAT registration. Changing terms to something less onerous my be beneficial, but clients need to be mindful of the terms their competitors may be selling at, which could be less onerous to the buyer
• An EXW buyer will be responsible for export customs clearance at origin and may have to assume other pre shipment arrangements which can be avoided by amending terms to Free Carrier (FCA)

Ensure all parties in your supply chain are aware of any new obligations from 1^st January 2021

12. Intrastats

Businesses currently registered for Intrastat will need to continue to provide HMRC with Intrastat declarations for the movement of goods as follows:

• Goods imported into UK from the EU
• Goods imported into Northern Ireland from the EU
• Goods exported from Northern Ireland to the EU

 13. Consignments of value below £135

Low value consignment relief is to be withdrawn. So UK VAT registered businesses importing goods in a consignment worth less than £135.00, that have not been charged VAT at the time of purchase, will be required to account for VAT on their VAT return under the reverse charge method.

14. Wood Packing Requirements

From 1st January 2021, shipments which contain wood packing will be subject to the International Wood Packing Regulations which require timber, such as pallets to be heat treated, these regulations have been in place since 2005. Further details on ISPM15 requirements can be found online here

Are you ready – Brexit checklist

Last 4 weeks to prepare for the end of the Transition Period. If you require any Brexit advice, please contact us now on 01622 237979.

We are seeing increased volumes in the run up to the end of the year, so capacity may be in short supply.

At TPS Global Logistics the last day for European trailers is Friday the 18th December. Due to the pandemic, goods must be in by 12 noon Wednesday the 16^th December to guarantee Friday departure.