Simplified import and export system announced

MHA MacIntyre Hudson

1st April 2019

Manufacturing & Export

MHA MacIntyre Hudson

By Lucy Sutcliffe

Senior Customs Duty Manager

MHA MacIntyre Hudson

ARRANGEMENTS have been announced by HMG regarding the movement of goods from the EU to the UK. In the event of a no deal scenario, HMRC will implement a simplified import system as a mechanism to ensure that goods move to the UK with a lower administrative burden for businesses, in respect of the documentation required when the goods enter the UK border. Additionally, this is intended to make it easier for businesses who import from the EU using roll-on roll-off (RO-RO) facilities, for example, Dover or the Channel Tunnel.

Businesses who deal with intra-EU trade should consider whether they wish to make use of this provision. HMRC has advised that UK businesses will need to register to use Transitional Simplified Procedure (TSP), this can be done via the following link: www.gov.uk/hmrc/eu-simple-importing. This registration facility was made available by HMRC with effect from 7 February 2019.

There are some criteria which businesses must meet in order to be eligible to register for and use TSP, these are outlined below. There are also some restrictions on the use of TSP, which are detailed below.

What the transitional simplified procedures are:

These transitional simplified procedures reduce the amount of information a business would need to provide in an import declaration when the goods are crossing the border. They do this by allowing businesses to defer:

* providing a full declaration

* the payment of any duties

If tariffs apply to the goods imported and you choose to use Transitional Simplified Procedures you will need to:

* apply to defer any duties payable

* have a financial guarantee by 30 June 2019, for any duties deferred

A Duty Deferment Account provides this provision and allows businesses to pay any duties by direct debit on a monthly basis, rather than having to pay the duties at the point the goods are presented for customs clearance.

To register to use transitional simplified procedures you must:

* have an EORI number

* be established in the UK

* be importing goods from the EU into the UK - including goods travelling via the EU from the rest of the world providing they have cleared EU customs formalities

You cannot register to use Transitional Simplified Procedures if:

* the only goods you import are coming into the UK directly from outside the EU

* you choose to use a customs special procedure for your goods

* you are acting on behalf of a business - for example, as a freight forwarder

Contact Lucy Sutcliffe on 01604 624011 or email Lucy at lucy.sutcliffe@mhllp.co.uk to discuss how we can help you to register for this procedure and any other customs provisions.

MHA MacIntyre Hudson