EU Transition Update 21 December 2020 by Camilla Call, International Trade Advisor
Yet another deadline has come and gone without a definitive answer on whether a trade deal will be agreed or not. The missed EU Parliament’s deadline yesterday means there are just 10 days left of the transition period and businesses are still unaware of trading arrangements, including whether tariffs will be in place. Added to that, travel restrictions put in place by some European countries on the UK due to increased Covid-19 cases means freight is being halted at the borders. The Business Secretary, Alok Sharma, has issued the latest letter to businesses on taking action to prepare for new customs processes on pages 2-3. The Department for Business, Energy & Industrial Strategy (BEIS) has released a lot of new and updated guidance for businesses on pages 4-7.
We heard on 20 December that while an agreement was reportedly close on the contentious fisheries issue, the deadline for drawing the negotiations to conclusion had been missed (Guardian). Sunday’s deadline was given in order to allow time to ratify any deal, but the missed deadline means more uncertainty for businesses regarding how they’ll trade with the EU from 1 January.
An emergency meeting is being held today, 21 December, to discuss the restrictions on freight coming into and out of the UK due to coronavirus restrictions (Reuters).
EU citizens living and working in the UK must apply to the EU Settlement Scheme by 30 June 2021 (and be living in the UK by 31 December 2020). While it’s estimated that most of the eligible EU nationals within Bournemouth, Christchurch and Poole have applied, this figure is only 50% within Dorset. Those who are vulnerable are much more likely to face adversity in applying to the scheme which is why Citizens Advice BCP would like to ensure they make every possible move to find these people and assist them as soon as possible. If this affects you, your friends, family, employees or colleagues, please encourage sign-up. The EU Settlement Scheme project team at Citizens Advice BCP accept referrals from any local organisation, including self-referral. Text message directly to their caseworkers’ number 07761 092704 or e-mail euss.advice@citizensadvicebcp.org.uk
The British Chambers of Commerce (BCC) has launched a new online Trade Hub which hosts information, advice and insight including:
- Trading from 2021
- Trade support
- Trade insights and data
In addition to existing content such as the End of Transition Period Checklist and Unanswered Questions, the new Hub features trade support, Global Business Network resources and international research. This will be a constantly evolving resource, so stay tuned for updates.
Are you a small or micro-business new to exporting or looking to export to new markets? If so, you could benefit from the free Export Academy run by the Department for International Trade (DIT). This will help you to overcome common challenges small businesses will face and is open to businesses in the South West. It also includes how to access grant funding and how to join future trade missions.
Exporting is a way to grow your business and diversifying your markets may help to spread the risks and weather ups and downs.
New dates have now been released for 2021. More info and how to apply here.
A message from the Business Secretary: Take action now to prepare for new customs processes from 1 January 2021
There are only two weeks left to get your business ready for new trading rules with Europe, which apply from 1 January 2021. You will no doubt be aware that negotiations on a trade deal are continuing after the UK and EU agreed to go the extra mile to reach an agreement. But regardless of the outcome, everyone in the UK who trades with Europe, or under the Northern Ireland Protocol, will be affected by new rules and there are steps you can take to get ready. I urge you to act now.
You can find out what actions you may need to take by using the checker tool at gov.uk/transition and keep up to date with regular business readiness bulletins too.
In this week’s letter I want to focus on actions you and your business can take to prepare for changes to customs declarations from 1 January 2021.
If you buy goods for your business from EU countries and bring them into the UK, or if you sell goods to customers in EU countries, you will need to make customs declarations for your goods from 1 January 2021.
If you plan to trade with businesses in EU countries from 1 January 2021, you need to take these actions now:
- Check what customs declarations you need to make: From 1 January 2021, you must make declarations for all goods you import and export – you will need to follow the same process as used for trade with the rest of the world. If you import goods that are not controlled, you may be able to delay making import declarations for up to six months.
- Prepare to make customs declarations: If you plan to trade with EU countries in January or February, we recommend getting a contract in place with a professional customs agent or customs intermediary who can help you submit customs declarations now. This is especially important if you’re exporting or if you’re importing controlled goods, as you will not be able to delay your declarations.
When you make customs declarations, you will need to accurately record where goods have come from. If you do not provide the correct information, you may be charged the wrong amount of tax or duty and you may have to pay a penalty.
For businesses moving goods between Northern Ireland and Great Britain there is support available to help. I urge you to:
- Check the latest Northern Ireland Protocol guidance to make sure you are prepared for new rules. If you move goods into Northern Ireland from Great Britain sign up to the free Trader Support Service to help guide you through new processes.
If you’re a VAT registered trader, you will also receive a letter and checklist this week from HMRC to help you prepare for the new trading rules with Europe.
Businesses across the country have made preparations for the end of the transition period, enabling them to take advantage of the new opportunities in 2021. I would like to thank you for all your efforts, given the considerable challenges you have faced this year. With just two weeks to go, it is vital businesses like yours make final preparations to make sure you are ready for the changes and opportunities that 2021 will bring.
Yours sincerely,
Rt Hon Alok Sharma MP
Secretary of State for Business, Energy & Industrial Strategy
New and Updated Guidance
Checking a Heavy Goods Vehicle (HGV) is ready to cross the border
The ‘Check an HGV is ready to cross the border service’ can be used to apply for a Kent Access Permit, and to check if you have the paperwork you need to cross the UK border in an HGV.
This service can be used by HGVs that weigh less than 7.5 tonnes, and HGVs of any weight that are going to the EU, but are not going via the Port of Dover or the Eurotunnel. You will require paperwork to cross the border even if the HGV is not carrying goods or if it is only carrying post.
For more information and to use the service, click here.
Northern Ireland specific guidance
NEW: Moving qualifying goods from Northern Ireland to the rest of the UK: Your goods will be qualifying Northern Ireland goods from 1 January 2021, if they are in free circulation in Northern Ireland – that means, not under a customs procedure before you move them from Northern Ireland to Great Britain. For more information, click here.
NEW: UK Trader Scheme launched to support business moving goods from Great Britain to Northern Ireland: The New UK Trader Scheme (UKTS) will help ensure traders don’t pay tariffs on the movement of goods into Northern Ireland from Great Britain, where those goods remain in the UK’s customs territory. For more information about what businesses need to do before their first movement of goods after 1 January 2021, click here.
NEW: Apply for authorisation for the UK Trader Scheme if you bring goods into Northern Ireland from 1 January 2021: New guidance has been issued. Find out how to get authorised to declare goods you bring into Northern Ireland, not ‘at risk’ of moving to the EU, so that EU duty will not be payable on those goods. For more information, click here.
UPDATED: Trading and moving goods in and out of Northern Ireland from 1 January 2021: Guidance on how to prepare if you trade and move goods in and out of Northern Ireland from 1 January 2021, has been updated with information about where there may be changes to some processes; bringing goods into Northern Ireland from Great Britain and from outside the EU; what you need to do if you import goods into Northern Ireland and, want to declare your goods not ‘at risk’; making declarations for bringing or receiving goods into Northern Ireland; transporting and carrying goods if you’re a haulier or a carrier and moving goods under transit. More info here.
Importing and Exporting
NEW: Bringing goods into Great Britain from outside the UK from 1 January 2021: Guidance has been issued on the allowances which mean that you can bring a certain amount of goods into Great Britain from outside the UK for your own use, without having to pay duty. For more information, click here.
NEW: Duty suspensions and tariff quotas from 1 January 2021: Guidance on temporary duty suspensions and tariff quotas for importing goods into the UK has been issued. For more information, click here.
NEW: Reporting sales of goods from Northern Ireland to the EU for VAT from 1 January 2021: Guidance has been issued on how to report supplies of goods from Northern Ireland to VAT-registered customers in an EU country using an EC Sales List. For more information, click here.
NEW: Suspensions or reductions from Customs Duty for UK Trade Tariff from 1 January 2021: Guidance has been issued about the UK Trade Tariff temporary suspension or reduction of Customs Duty from 1 January 2021. For more information, click here.
NEW: Movement Assistance Scheme: get help with moving agrifood goods to Northern Ireland: New support is available for traders and businesses through the Movement Assistance Scheme (MAS), to help them meet new requirements for moving animals, plants and associated products from Great Britain to Northern Ireland after the transition period ends. For more information, click here.
NEW: UK Generalised Scheme of Preferences (GSP) graduated goods: A notice has been published on graduated goods under the UK Generalised Scheme of Preferences (GSP). For more information, click here.
NEW: HMRC newsletter on Community, Common Transit and Transport International Roturiers: HMRC have released another newsletter in their series. This edition covers Euro Exchange Rates. To view this, and previous editions, click here.
NEW: Rules of origin: requirements to access preferential tariffs in UK Free Trade Agreements (FTAs): If you are trading goods with any countries with which the UK has an FTA, you will need to comply with Rules of Origin to benefit from preferential (lower or zero) tariffs. This includes the EU in the event a deal is reached. For more information on Rules of Origin, click here.
UPDATED: Open general export licence (export of dual-use items to EU member states): Guidance on the licence for the export of dual-use items to EU member states has been revised to take into account changes in legislation following the end of the transition period. For more information, click here.
UPDATED: Trade with Iceland and Norway: Guidance on how you import and export to Iceland and Norway from 1 January 2021 has been updated with the latest advice. For more information, click here.
NEW: Registering to make an entry summary declaration in Great Britain: Guidance has been issued on using the S&S GB Service if you import goods into Great Britain and need to make an entry summary declaration. For more information, click here.
NEW: Registering to make an entry summary declaration in Great Britain: service availability and issues. Guidance to check the availability and any issues affecting the register to make an entry summary declaration in Great Britain service has been issued. For more information, click here.
UPDATED: Exporting excise goods to the EU from 1 January 2021: Guidance on changes to exporting and declaring excise goods (alcohol, tobacco and certain oils) from 1 January 2021, has been updated with information regarding declaring a change of destination for goods in flight. For more information, click here.
UPDATED: Importing and exporting plants and plant products from 1 January 2021: Guidance on how to trade plants and plant products, including trees, inside and outside the EU, and between Great Britain Northern Ireland from 1 January 2021, has been updated. Updates include:
- Information on new movements from NI to GB;
- New importing plants and plant products from the EU to NI;
- Updated exports section to NI and
- New information on grace period for authorised traders moving food from GB to NI.
For more information, click here.
Moving Goods
NEW: Ongoing customs movements and procedures at the end of the transition period: Information on what to do if you are moving goods or have goods in the customs procedures at the end of the transition period has been issued. To view this guidance, click here.
NEW: Transiting animals and animal products through Great Britain: Guidance with the rules to follow if you are moving animals or animal products from one third country to another third country and transiting Great Britain (England, Scotland and Wales), known as ‘landbridge’ movements has been issued. For more information, click here.
UPDATED: Moving your goods to common or EU transit countries: Guidance on preparing your goods and planning your routes if you are using common or Union transit has been updated to clarify guidance on checking if you need to complete an export declaration for movements starting in Northern Ireland from 1 January 2021. For more information, click here.
UPDATED: Moving goods through the Port of Dover and Eurotunnel with an ATA Carnet from 1 January 2021: Guidance has been updated with the addresses of the locations of ATA carnet processing points (for Sevington, Dover Western Docks and North Weald). For more information, click here.
NEW: List of Ports using the Goods Vehicle Movement Service: To find out which locations are using the Goods Vehicle Movement Service from 1 January, click here.
UPDATED: Rail Transport from 1 January 2021: Guidance to help prepare industry to run domestic and cross-border rail operations from 1 January 2021, has been updated with information about train driving licenses and safety certificates. For more information, click here.
UPDATED: Kent traffic management on the M20 motorway to Dover and Eurotunnel: Guidance has been updated to include information on driver welfare. For more information, click here.
UPDATED: Driving in the EU from 1 January 2021: Lorry and goods vehicles drivers: Guidance on what UK lorry and goods vehicle drivers need to do to drive professionally in the EU from 1 January 2021, has been updated with information about the Check an HGV is ready to cross the border’ service. For more information, click here.
UPDATED: What UK goods vehicle operators need to do to carry out international road haulage from 1 January 2021: Guidance has been updated to include information about inland border facilities and the “Check an HGV is ready to cross the border service”. For more information, click here.
Trademarks and geographical indications after 1 January 2021
Guidance for businesses and organisations on the relationship between trademarks and geographical indications (GIs) at the end of the transition period. For more information, click here.
Webinars
British Chambers of Commerce (BCC) webinars, including the Countdown to Change (EU Transition) series, can be watched here.
HMRC webinars: Get help on UK transition with online webinars from HMRC by registering for webinars here on:
- Importing: staged controls and how to prepare to use them
- Exporting: actions you need to take to prepare for 1 January 2021
HMRC customs declarations webinars: HMRC have launched multiple editions of this live webinar covering how to complete customs import declarations and explaining how to make import declarations when importing goods between the EU and Great Britain. Find a date and to register, click here.
Department for International Trade webinars: DIT are hosting a series of webinars primarily aimed at businesses which are UK based who import and export goods. To register for the next webinar on 17 December at 10:30 am, click here.
Trading with the EU: A video series has been released that explains what businesses need to do to be ready for 1 January 2021. These videos cover what businesses need to know about exports and imports, customs, commodity codes and controlled goods. To view the videos, click here.
UK Transition Period: HSE and the Department for Environment, Food and Rural Affairs (DEFRA) will be hosting a webinar on Wednesday 20 January at 10am. The event will cover actions businesses need to take in preparation for the end of the UK Transition Period on 1 January 2021 when independent GB chemical regimes will be in place. To register, and for more information, click here.
The Health and Safety Executive (HSE) is hosting a series of free podcasts to help businesses that make, use or supply chemicals, understand what actions they need to take to ensure they are prepared for the end of the UK Transition period, when an independent GB chemical regimes will be in place from 1 January 2021. To listen to the podcast, just search ‘The HSE Podcast’ on your chosen platform. Audiences can also register to receive notifications for each episode released using this link.
The Ministry of Justice have published several on-demand webinars for legal professionals discussing legal changes from 1 January 2021. To access these and for more information, click here.
Dorset Chamber delivers a free of charge International Trade and EU Transition advice service to all businesses, supported by Dorset LEP. For information and advice please contact us at gateway@dcci.co.uk / 01202 714800 or visit dorsetchamber.co.uk.