FREQUENTLY ASKED QUESTIONS
We have compiled questions and answers many traders have asked regularly since the UK left the UK and new rules of trading came into place. Previous FAQs can be found at 'Archived FAQs'
With the UK on-going negotiation of new Trade Deals and the implementation of the Trade & Cooperation Agreement between UK and EU, we are now updating our FAQ section. If you wish to check for previously most frequently asked questions, please click here (Q1 to Q26)
Q27 - We are importers of food related products and we understand from 1st October 21, we will require Export Health Certificates, is that correct? If so, how to we complete these?
It is correct that it is expected that from 1st October 2021, UK importers will required that products of animal origin, from the EU into GB meet new requirements such as an Export Health Certificate.
If you are an UK Importer, you need to ask your EU suppliers to ensure the shipments come with EHCs from 1st October.
For further guidance we recommend you to look at:
(51) Importing Products of Animal Origin from the EU into GB – New Requirements from October 2021 - YouTube
(51) UKT | Trading between Ireland and Great Britain? Get ready for 1st October - YouTube
The future of imports: what you need to do to keep your goods moving | The Food & Drink Federation (fdf.org.uk)
Import or move food and drink from the EU and Northern Ireland to Great Britain - GOV.UK (www.gov.uk)
Model health certificates for exports of live animals and animal products to Great Britain - GOV.UK (www.gov.uk)
Q28. What are the key changes coming into effect from 1st January 2022?
There are a number of new rules coming into effect, including: Importers will now be required to do full import customs clearance when importing from the EU into the UK, unless you have an special authorization to continue doing simplified procedures. Sanitary & Phytosanitary controls such as pre-notifications, Health Export Certificates and checks and traders will also now be required to produce 'evidence' of origin if requested by customs authorities which until 31st Dec, such controls had been relaxed allowing exporters and importers to produced statement on invoices about the origin of goods.
The UK government has made changes to the forthcoming phased entry into force of GB inbound border controls on EU goods by exempting goods from the Republic of Ireland from them until negotiations on Protocol implementation with the EU are completed next year.
For more details on changes, Check our blog from 18th Nov 2021 for a summary of key changes
Q29. What happens if you are exporting goods and you can not provide supporting evidence for the origin of your goods?
If you’re asked to verify the origin of your goods and you can’t provide this supporting evidence:
• Your customer will be liable to pay the full (non-preferential) rate of Customs Duty,
• You may be charged a penalty, and,
• You may be excluded from using preferential tariffs going forward.
If you are unsure what 'evidence' can support your origin claim, why not use our Origin Evidence Audit? Email us as email@example.com and click here for more information.
Q29.1 How can I claim a zero tariff for my goods?
There are three steps you need to follow to claim a zero tariff on goods:
Classify your goods correctly. As of 1st Jan 2022, please note there has been changes to the Tariff Codes, so make sure you are using the correct ones.
Check if your goods meet the 'rules of origin'. It’s worth remembering that different goods have different rules of origin with varying ‘product-specific rules’ (PSRs). The trader is responsible for checking the rules for your specific goods. Use the 'How to export' your goods' UK Government tool to understand what you need to comply with to claim UK origin. If importing, then you can use the 'Trading with the UK' UK government tool.
Provide 'evidence / proof' that your goods meet the rules of origin specific to your product(s) and that these goods are compliant with HMRC.
Q29.2 What are Product-Specific Rules (PSPs) of Origin?
There are a few different types of Product-Specific Rules which the Chamber can help you to navigate for your imported or exported goods:
Wholly obtained: It means goods that are fully born, grown or extracted from the UK - these goods, such as UK-grown vegetables, are likely to be eligible for preferential treatment (i.e. zero-rated duties). If the goods require other inputs to grow, then all of the inputs (and their origins) need to be classified separately too. These goods may be suggested to a change in tariff code rule, which you can talk through with our customs brokers.
Value Added /Percentage rule: This rule means that a certain amount of the value of the finished product or goods must be generated in the UK, or in the EU - this is called ‘maximum level of non-originated material’ (MaxNOM)
Specific Processes: This rule refers to operations that happen in the UK which means that the goods may be considered as originating in the UK. This is usually common in textiles, clothing for example - like processes being processed or weaved in the UK.
From training to consultancy packages, our team and network of associates are at hand to help understand rules of origin.
#RulesofOrigin #EUUKTCA #ProofofOrigin #FTAs
The below have been provided by HMRC (Q30 - Q35)
Q30. Do I need my EORI number to make declarations?
Economic Operators Registrations and Identification (EORI) numbers starting with GB are needed if you’re moving goods between Great Britain and any other country (including the EU). If you’re authorised to make declarations in your own records for goods you’re moving, the haulier moving your goods will need your EORI number starting with GB to ensure the Goods Movement Reference (GMR) is valid. Please ensure your haulier has this information before your goods are moved. More information can be found by visiting GOV.UK.
Q31. Which customs declaration should I submit?
If you’re importing goods, you’ll need to make sure that you (or your agent) have submitted the correct import declaration. If authorised, you (or your agent) can choose to use simplified declarations for imports.
Remember, you can no longer delay making import customs declarations for goods imported on or after 1 January 2022, under the Staged Customs Controls rules that applied during 2021, with the exception of goods from the island of Ireland.
If you’re exporting goods, you’ll need to make sure that you (or your agent) have submitted the correct customs export declaration. To avoid delays, check with your haulier what route they are using to move your goods, and whether they need a pre-lodged or arrived export declaration reference from you.
If you complete your own customs declarations, please be aware that we have published more information on how to submit the correct export declaration, including the codes to use if you use CHIEF or Customs Declaration Service (CDS).
From 1 January 2022, if your goods move through a port using the Goods Vehicle Movement Service (GVMS), you’ll need to enter 'RRS01' in box 44 for CHIEF or Data Element 2/2 for CDS. If you do not, GVMS will not be able to validate it on the submitted GMR. For more details, please refer to the recently published Customs Information Paper 2.
However, if like most traders you use a customs agent like the Chamber or a freight forwarder to make your declarations, please ensure they are doing this for you.
You should check the status of your declarations once the goods have arrived in Great Britain, as you may need to take further action to release the goods from customs if they are held.
Q32. Can I still use Postponed VAT Accounting on my import declarations?
If you’re a VAT-registered importer, you can continue to use Postponed VAT Accounting (PVA) on all customs declarations that require you to account for import VAT, including supplementary declarations, except when HMRC have told you otherwise. PVA has already provided significant cash flow benefits for thousands of our customers, and we expect that most businesses will choose to use it. You can search 'postponed VAT account' on GOV.UK to find out more.
Q33. Do I need to register for the Goods Vehicle Movement Service (GVMS)?
As of 1 January 2022, anyone who is moving goods through border locations that use GVMS must register for the service. This includes:
large retail businesses that transport and declare their own goods
logistics businesses hired to transport goods and complete customs processes on behalf of another business
independent drivers that transport goods and do their own customs paperwork
companies that sub-contract to pick up goods on behalf of another businesses.
Q33.1 Do I need to get a Goods Movement Reference (GMR)?
In addition to registering for GVMS, hauliers must also get a Goods Movement Reference (GMR). Without a GMR, drivers will not be able to board the ferry or shuttle.
You should then check if they need to report for an inspection of your goods using your GMR. If the goods you’re importing or exporting are selected for inspection, most ports will check the goods on site. The border locations of Dover and Eurotunnel require drivers to attend an inland border facility (IBF), as does Holyhead if you’re exporting goods from Great Britain.
The person who created the GMR (usually the haulier) must ensure the goods arrive at an IBF for a check and that their drivers are made aware, or have the means to check, if an inspection is required. The haulier and/or driver may be liable to a penalty of up to £2,500 if they fail to follow HMRC instructions to attend an IBF.
Q34. How do I know what commodity code to use for my goods?
Commodity codes are used worldwide to classify goods that are imported and exported. They are standardised up to six digits and reviewed by the World Customs Organisation every five years. Following the end of the latest review, a number of the codes in the UK integrated tariff changed on 1 January 2022. You should go to GOV.UK and search for the 'Trade Tariff Tool' at the time you’re importing your goods to look up the correct commodity codes. You can also check the Trade Tariff news page on GOV.UK.
Q35. How do full customs controls affect me if I trade with Northern Ireland?
If you move goods into or out of Northern Ireland, the free Trader Support Service can guide you through the process. Go to GOV.UK and search 'Trader Support Service' to sign up.
Q36. I am taking some tools and equipment overseas to carry out some repairs. What do I need to consider customs wise?
If you are taking the goods on temporary basis, depending how regularly you intend to take the goods out and the purpose, then you may consider using ATA carnets or Duplicate lists. Check our latest blog outlining when you can use these.
UPDATED AS OF 18/01/23