After a turbulent couple of weeks, it looks as if the government has decided upon, and narrowly won the backing of MP’s to go forward with, its preference of a new customs partnership. The white paper has been issued and any government official in office not wishing to promote this stance have resigned and become vocal backbenchers.
The white paper is 98 pages long (although 104 to print) and introduces the term of a Facilitated Customs Arrangement. In essence, the government wants to work with the EU in standardising controls and requirements that will appease both the EU and UK. By taking this stance governmental bodies will align requirements coming into the UK with the EU. By fulfilling these requirements there should be no need to make further inspections when goods move between the ports of the UK and the EU.
The government wishes to form these bodies to work with the EU across all services including police and security, financial services, air traffic control, pharmaceuticals, energy, etc.
HMRC believes 96% of all goods coming into the UK are known where they will be sold on import. So, most declarations will be made correctly against either the UK’s negotiated rates (hopefully lower) or the EU’s. This figure seems rather high and so any goods entered into free-circulation on entry into the UK could be subject to a reclaim process. It’s probably best at this point to consider Customs Warehousing and suspend duties until the sale has been made.
Trusted Trader Scheme
And finally in this brief summary, HMRC and the Border Force want to continue with a “Trusted Trader Scheme” similar to AEO, where simplifications and mutual recognition give priority to holders. Therefore, we recommend you still consider applying for AEO.
Now the government needs to negotiate its wish list with the EU.
Langdon Systems has over 30 years experience in the creation, development and implementation of Duty Management Systems throughout Europe. If you have any questions about how your company can prepare for Brexit from a customs perspective, or if you want to discuss any other customs related issues, our experts are here to help. Please email us on firstname.lastname@example.org or call us on 01942 202202.