New EU border controls come into force on the 1st January 2021 and while there will be ‘light-touch’ control for most imports initially, there will be significant impact on the unprepared and exporters will need to observe strict new export processes from the start, or their goods will not move.
For the first six months of 2020 HMRC will operate a simplified import customs clearance system and qualifying businesses will be able to make a simplified border declaration (under CFSP), with a rolling six month deadline to submit supplementary declarations to HMRC’s Customs Handling of Import and Export Freight (CHIEF) system.
It sounds simple and while it is tempting to assume that traders are automatically covered by this regime, only authorised bodies can submit simplified declarations.
You can appoint Metro to act as your broker and immediately access the benefits of the CFSP/EIDR regime for six months and transition seamlessly to the regime that follows on 1st July 2021.
Alternatively you’ll need to be authorised by HMRC for simplified declaration procedures (see criteria below), apply to access the CHIEF declaration system, install HMRC approved software and set up a duty deferment account for paying duty and VAT.
NOTE – Alternative regimes will apply to controlled and SPS goods. Contact us directly for more information.
For exports to the EU, full export and import controls will apply from the 1st January 2021, which means there’s no point in an export truck simply trying to enter Kent, because unless they are border ready and have a KAP (Kent Access Permit) the driver can expect a fine of around £300.
Appoint Metro as your Customs Broker and you don’t need to worry about the following (indicative export) process, that applies to a simple single border shipment from say GB to France.
- Create commercial invoice and packing list and zero rates VAT as the goods are leaving the UK.
- Exporting truck will require a TAD (transit accompanying document) authenticated at authorised premises prior to departure and complete SMART Freight portal to receive a KAP (Kent Access Permit).
- EAD export declaration generates an EXS exit safety and security declaration.
- MRN (Movement Reference Number) generated by EAD/EXS needs to be lodged on GVMS (Goods Vehicle Movement Service).
- GVMS generates GMR (Goods Movement Reference).
- GMR is given to driver (they will need this at the UK border).
- French clearance route allocated as ferry crosses the channel with (1) pre-lodged FR import entry or (2) inland in FR.
- FR importer arranges FR import entry (needs to be done at point 7 above if pre-lodged rather than transit).
- ENS entry safety & security declaration required 2 hours before goods arrive in Calais.
- FR importer pays FR import duty either directly to FR customs or to agent if agent deferment account used.
- FR importer accounts for FR VAT either payable at border or through VAT accounting.
Transit documentation and guarantees will apply to movement across more than one EU border.
For further information please contact Jade Barrow or Andrew White who are leading our 2021 EU withdrawal Task Team.