The government has issued new guidelines for firms trading with the EU after the post-Brexit transition period finishes at the end of the year.

The new guides come hard on the heels of the Border Operating Model (BOM), also published yesterday (13 July), which the IOE&IT has summarised here.

With the BOM paper acknowledging that “customs declarations are complicated”, IOE&IT experts have pored over these how-to guides to pull out the key points.

1. Five steps for exporters (taken from ‘How to Export Goods from GB into EU from January 2021’)

Exporters will need to complete customs declarations from the start of next year for all goods.

Businesses using an intermediary will need to complete the following steps:

1. Attain an EORI (Economic Operator Registration and Identification) number
2. Check if your goods need any additional certification or licenses (e.g. if you are exporting livestock, food, chemicals or alcohol)
3. Check VAT guidance to understand why you should retain evidence of export to apply zero VAT rate
4. Find a customs intermediary to handle your declarations
5. Submit or ensure your intermediary has submitted INTRASTAT declarations if applicable

If you use an intermediary and have provided them with all the information they need, you must still keep clear and accurate records of the goods you have exported to the EU for six years. You may need these to claim any appropriate reliefs or refunds.

If you wish to complete declarations by yourself, there will be additional steps you will need to complete:

• Get specialist training to use the National Export System (NES) and consider if you will buy specialist software to support you
• Apply for a CHIEF badge
• Complete the export declaration on NES
• Ensure the EU importer (the ‘declarant’) has done everything they need to do – attained their EORI number, completed an import declaration in their country’s system and any additional licences and certification.
  • This last point could affected by what Incoterms you are using – for instance, if the exporter sells on DDP terms they will be liable for all declarations, tariffs and VAT.

You can read the government’s full export guidelines – including additional advice for transit and temporary exports – here.

2. 10 steps for importers (taken from ‘How to Import Goods from the EU into GB from January 2021’)

Importers will need to complete customs declarations or hire an intermediary to complete the declaration on their behalf.

However, declarations can be deferred for up to six months on all imports of standard goods until July next year, as per the three-phase plan for introducing import controls.

Declarations will be introduced in January for controlled goods such as alcohol and tobacco.

For standard import declarations, businesses using an intermediary will need to do the following:

1. Attain your EORI number
2. Check any additional certification or licences (e.g. if you are importing livestock, food, chemicals or alcohol)
3. Understand your VAT responsibilities
4. Decide if you will use Standard Import Procedures, noting that customs processes can be complicated
5. Find a customs intermediary to handle your declarations
6. Check the UK Global Tariff to ascertain what duties or quotas apply against your product
7. Consider duty deferment options
8. Ensure the EU exporter (or ‘declarant’) has all the information they need (their EORI number, export declaration in their country’s system and any additional licences and certification).
   • As with exports, this will depend on the Incoterms chosen and traders using Ex-Works or DDP should take particular note that this impacts responsibilities for declarations, tariffs and VAT.
9. Pay: import duty, import VAT and excise duty if applicable
10. Submit or ensure your intermediary has submitted INTRASTAT declarations if applicable

If you do not use a customs intermediary, there will be additional steps in completing the declarations, such as:

• getting training in how to complete declarations
• acquiring specialist software to submit declarations
• applying for a CHIEF badge
• attaining your commodity code
• attaining your customs procedure code

3. Deferred declarations for importers (taken from ‘How to Import Goods from the EU into GB from January 2021’)

For importers who wish to defer declarations (for instance, from January to July) you will need to make an Entry into Declarants Records (EIDR) and ensure that records are maintained, including all trade and transport documentation, Commodity codes, CPC codes, UCR and written description of the goods.  

A supplementary full declaration is required up to a maximum of six months from the date of importation. Traders or their agents will require to be authorised for Customs Freight Simplified Procedures (CFSP). Agents will not be financially liable under CFSP for UK traders, but they will be liable for EU exporters.

Traders (unless they are a high-risk trader), can apply for CFSP without the requirement for a financial guarantee.   

You can read the government’s full guidelines – including additional advice for simplified import procedures and transit – here.

Grant funding

The government is providing grant funding for companies to either do training to learn how to complete customs declarations or to acquire IT software that enables them to complete them.

The IOE&IT provide several courses that can be funded by these grants, a full list of which can be found here.