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Below are some FAQs covering the UK Exit from the Customs Union & Single Market of the EU at 11pm (GMT) 31st December 2020 when the Transitional Arrangement comes to an end.

Members’ Only FAQ from EU Exit Briefings

The UK Global Tariff (UKGT) has been simplified and around 6,000 numbers that exist in the EU Taric have been removed. The UK will require 10-digits to be declared on an import entry from January 2021 and where the UKGT shows only 8 digits then you should add "00" to the end to turn it into an import code.
No you don't have to register to use Postponed VAT Accounting (PVA) it is open to any UK business that holds a UK VAT registration number (VRN). But in a recent technical announcement (Sept 2020) HMRC have confirmed that businesses wanting to access the information about VAT figures under PVA will have to register with CDS online. This is because no C79 VAT statement will be issued for PVA instead a customs declaration will generate an online Monthly Postponed Import VAT Statement (MPIVS) that will be the evidence required to account for and recover the import VAT as input tax on their next VAT return. Further details on how to register haven't been issued yet.

But C79 will continue to be produced for those entries where any VAT is paid on importation.

Safety and security declarations are currently required at export and import under EU law. At import the declaration has to be lodged at the first port of call in the EU. From 1 January 2021, safety and security declarations will be required under EU and UK law.

For exports from the UK, the safety and security declaration is part of the NES export declaration. This will continue to be the situation from 1 January 2021.

For imports, it is the responsibility of the carrier to provide the S&S declaration which is not part of any import customs declaration. It is quite separate. In the context of import S&S declarations (aka ENS), the carrier is defined as:

1. Sea freight - The shipping line
2. Air freight - The airline
3. Road freight unaccompanied - The ferry/channel tunnel operator
4. Road freight driver accompanied - The trucking company

S&S declarations will be required for all imports into the UK (including imports from the EU27). S&S declarations will be required for all imports into the EU27 (including imports arriving in the EU27 from the UK). As an exporter and importer, you should be unaffected by the issue of safety and security declarations and Brexit (unless of course you are running trucks to and from the EU27).

In order to use EIDR you must be registered for Customs Freight Simplified Procedures. You cannot use EIDR with this authorisation.
Once you are authorised for EIDR under CFSP, you can then make an entry in your records instead of completing a Simplified Frontier Declaration (SFD). You still need to complete a Supplementary Declaration – Import (SDI) by the fourth working day of the month following the arrival of the goods in the UK (which can be deferred for six months but I wouldn’t recommend it).
If you are authorised for EIDR, you should make sure that your EU27 supplier puts your EORI number on the export invoice and quotes a form of words such as “GB EIDR Import – EORI Number GBnnnnnnnnnnnn” or similar. You can elect to defer the completion of your SDI for six months but you cannot delay accounting for the import VAT which must be declared on the first VAT return following import, AND…

If your VAT calculations disagree with the CHIEF calculations when you complete the SDI, you must make an adjustment on your next VAT return.

Because you are using EIDR, you will not have an accurate VAT figure until the SDI is competed so you will always be having to update an amend your VAT returns, which is why I cannot recommend going for the six months deferral.

Brexit affects CE marking requirements in two ways; the way we put our products on CE markets and the changes to the use of CE marking in the UK.
If your company is supplying CE marked products to EU countries, there is of course no change to the CE regulations themselves. Some CE marks are self-assessed and some are evaluated by a notified body, it depends on the particular product. If a UK manufacturer pts a self-assessed CE marked product on the EU market after 31st December, their assessment is still valid, but because their company will then be outside of the EU, they will need to appoint an authorised representative in an EU country. This doesn’t have to be anybody with special qualifications or authority, it is purely a point of reference within the EU.

If your company is supplying CE marked products to EU countries that were assessed by a notified body, and if that body is based in the UK, they lose their authorised status from the end of the year. The manufacturer should contact the notified body concerned. In most cases, the files detailing the assessment will simply need to be transferred to a notified body in another EU country.
If your company is putting CE marked goods on the UK market, the CE mark will be replaced with a new UK Conformity Assessment (UKCA) mark. The UKCA marking can be used from 1 January 2021. However, to allow businesses time to adjust to the new requirements, you will still be able to use the CE marking until 1 January 2022 in most cases. In some cases you will need to apply the new UKCA marking to goods being sold in Great Britain immediately from 1 January 2021. You are encouraged to be ready to use the UKCA marking as soon as possible before this date. Goods supplied to Northern Ireland will need to carry both the UKCA and the CE mark.

The CE marking will only be valid in Great Britain for areas where GB and EU rules remain the same. If the EU changes its rules and you CE mark your product on the basis of those new rules you will not be able to use the CE marking to sell in Great Britain even before 31 December 2021.

You can find more information about CE marking here: CE Marking

Just a technical point it is not VAT suspension, it is VAT postponed accounting (PVA) and yes it can apply to any import both from EU and non-EU countries from 1st January 2021. 
It isn’t mandatory though so an importer can still decide to pay VAT on arrival against a deferment account.  If they decide to use PVA they will not get a C79 VAT Certificate and will have to register via the Government Gateway onto CDS to receive a will generate an online Monthly Postponed Import VAT Statement (MPIVS) that will be the evidence required to account for and recover the import VAT as  input tax on their next VAT return. 
Further details on how to register haven't been issued yet

General FAQ on EU Exit

When the UK leaves the EU customs declarations will be required whether there is a deal or not. There was speculation initially that the UK could secure a deal that included free movement of goods but without remaining inside the Customs Union or Single Market this isn't possible. This means companies will need to ensure they have sufficient information to make the relevant declaration to customs possible.

There is a good, brief video on YouTube from HMRC summarising the key points Customs Declarations video. You can find options on learning more about customs declarations with Strong & Herd here How to Complete Customs Entries and don't forget there is a grant to help you buy the software, employ staff and undertake training HMRC Grant

No. TSP - the Transitional Simplified Procedures - was introduced in case there was a no deal exit in October 2019, along with some other simplifications such as a Temporary Tariff. All of these easements were cancelled in February 2020 and new arrangements are and have been introduced. If you did register for TSP this is not valid or necessary any more.

No. The Temporary Tariff no longer applies, it was an easement introduced in case there was a no deal exit in October 2019 but the UK moved into a transitional arrangement instead so it wasn't needed.

The new UK Global Tariff (UKGT) is the UK's new permanent tariff schedule. Customs import duties in the UKGT may differ from the duty rates in the EU Tariff so you need to check the new UK version to establish your customs duty costs.

CFSP is an existing UK Customs simplification - called Customs Freight Simplified Procedures - and permits the release of freight on arrival into the UK without a full customs declaration. 

From 1 January 2021 to 30 June 2020 companies importing goods from the EU can elect to use CFSP to move goods to their premises quickly. But yes to use CFSP you have to be authorised by HMRC. The CFSP authorisation can be held either by the importing trader or the logistics company. Also a full declaration will be needed at a later date, no more than 6 months after the date of arrival and traders must enter all relevant information into their records to ensure an accurate full customs declarations is made.

CFSP does delay the payment of import customs duty until the full declaration has been submitted to customs but VAT must be accounted for within the tax period relevant to the month of physical arrival of the goods. So, for example, goods may arrive in January 2021, so VAT must be reported to HMRC in the Jan-Mar 2021 quarter if you are on quarterly VAT returns but the full import declaration may not be made until May 2021 and that is when the duty will be paid. Some companies think this makes the use of CFSP as a simplified option too difficult to administer.

VAT is not going away. The mechanism for HMRC to collect VAT on imports will change from 1-1-2021. The change will apply to all imports not just to arrivals from the EU. Basically UK will begin allowing Postponed VAT Accounting (PVA) for UK VAT Registered businesses - which means not financial outlay of VAT at the time of arrival but your accounts must declare VAT due on imports on your monthly or quarterly VAT return in the period relevant to the date of arrival. PVA is open to all UK VAT registered traders but to use it you or your freight agent must select it this option on the import customs declaration. If you do not wish to use PVA and are clearing the goods at the time of arrival then you can pay the VAT as normal.

No, unless your supplier is taking on the responsibilities as the importer and going to arrange the UK import customs entry and pay the import customs duties. In other words the supply is made under Incoterms 2020 Rules - DDP (Delivered Duties Paid) - which will make the EU supplier the importer of record. All other Incoterms Rules make the buyer/ importing company responsible for the import customs formalities and payment of duties so it would be them, the UK entity, that needs the UK EORI.

No, unless you are supplying and taking on the responsibilities as the importer and to arrange the EU import customs entry and pay the import customs duties. In other words the supply is made under Incoterms 2020 Rules - DDP (Delivered Duties Paid) - which will make you the importer of record. All other Incoterms Rules make the buyer/ importing company responsible for the import customs formalities and payment of duties so it would be them, the EU entity, that needs the UEUEORI.

UK export commodity codes will not be changing to 10 digits BUT what is changing is that currently intra-EU movements only need 8 digits to identify goods for both despatches (exports) and arrivals (imports) and once the UK leaves the EU goods will have to be formally imported into the EU. As you know, the EU import commodity code needed is the 10-digit number. The change from the 8-digit export code into the 10-digit import code may be sorted out by the EU importer but it is entirely possible that they might want the supplier to quote the full EU import code on the export paperwork. If you intend to export to the EU using the Customs Transit System, then you will have to ensure that the 10-digit code is declarared into the CTS computer tracking system. Another final thing to check is, if you have only exported to companies within the EU, that you have on record the correct Harmonised System (HS) code not the simplified EU Intrastat Combined Nomenclature (ICN).
The export procedures to Switzerland and Norway may change depending on how you physically ship the goods today. Export entry out of UK, no change, and if they go by airfreight, then no change. But if the goods are moving by road across the EU to Switzerland you will have non-Union goods from a non-EU country (UK) transiting the EU to a non-EU country so you’ll have to look at transit (NCTS). If you do road shipments, you may currently be using indirect export declarations – these will go 1.1.2021. Depending on the routing, Norway could change but if only UK/Norway involved there will not be any difference.
The other thing to consider is that you won’t be issuing EUR1 Forms and, unless the UK had a FTA with Switzerland and Norway (tricky as they can’t commit until they know UK deal with the EU as they are both in the EU Single Market and Norway in the EEA). EU Standards are extended into the EEA so if you must meet EU standards this could affect supplies and statements into these markets.
Yes – you will need an export licence to move dual-use controlled goods and technology into the EU from 1.01.2021. You can register for an Open General Export Licence (OGEL) now via the Export Control Joint Unit (ECJU) SPIRE website to permit you to do this. It is entitled Open General Export Licence (Export of Dual-Use Items to EU Member States.
Once you are registered you will be able to use it immediately from 1st January 2021. You must treat it like other OGELs and ensure it is declared on the export customs entries for physical deliveries to the EU27 of goods or technology and record any tangible transfer of technology on your technology transfer log. There are some exceptions to dual-use categories, and you must know that the goods are remaining in the EU and not being immediately shipped on without alteration. If the goods are going to be re-exported from the EU unchanged you will need an EUU and probably an Individual Licence (SIEL) though other OGELs may apply.


By on September 18th, 2020
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