January Brexit Changes

Author - Max Tweddle

Date published:

Changes to international trade coming in January 2022

This article aims to outline 4 key changes coming to international trade, that businesses need to be aware of, from January 1st 2022.

Following the transition period of the UK’s departure from the European Union, the UK government intends to bring in new import controls on goods moving from the EU to Great Britain. The changes are being implemented to make EU imports more in line with the UK’s treatment of imports into GB from the rest of the world.

From January 2022 onwards, these changes will enter their final stage. They will affect by law anybody who intends to import goods from Europe or elsewhere. Therefore, it is vital that businesses in the UK educate themselves on these changes. That way, they can avoid any possible adverse effects to their trading. For that reason, this article aims to inform you on the most pressing upcoming changes.

January 2022 Onwards

1. Customs Declaration Changes

Changes to the way you submit customs declarations and what will be required as of 01/01/2022 are as follows:

  • In 2021, the government gave a grace period of 175 days. In this period, businesses were able to delay full import declarations and VAT/duty payments (if necessary).
  • From January 2022 onwards, this grace period will end. It will no longer be possible to delay Customs declarations.
  • Importers brining or receiving goods from the EU will have to complete a Customs import declaration. Customs declarations are complex, and most businesses that currently trade outside of the EU use an intermediary to submit declarations to HMRC. You can find further information on intermediaries here. If you are going to do this yourself, you can find information on any duties or tariffs due on goods by entering their commodity codes here.
  • Information required for completing a Customs declaration include
    • A GB EORI number
    • Commodity Codes of goods (used to calculate duties on an import)
    • Origin of goods
  • You must now calculate tariffs on goods imported to the UK. Please find a list of tariffs applicable to UK importers here.
  • The UK has a free trade agreement with the EU, meaning that it is possible to import certain goods from the EU, tariff and quota free. The origin of the goods determines whether this is possible or not.
  • The North East England Chamber of Commerce can assist you in your customs compliance by offering help with your import/export declarations, transit documents, and the CHIEF/CDS systems. For more information, visit this link.

2. Rules of Origin

These are the methods by which you can declare where your goods were made. This is one of the most important things you need to do for HMRC. The changes to rules of origin requirements are as follows:

  • In January of 2021, EU and UK Customs authorities agreed that they would not request proof of origin for goods. This changes on January 1st, 2022.
  • All exporters and importers must be able to prove the original manufacturing country for the goods they are shipping. Proof will also be requested retrospectively for goods that were shipped during 2021.
  • The North East England Chamber of Commerce can provide Certificates of Origin, to enlist this service please contact: [email protected]
  • If you are importing goods into the UK from a country with whom the UK has a free trade agreement, your overseas supplier will need to declare the goods originated in their country. This is possible in several ways. The Chamber has published a separate article on the possible methods, available here.
  • From January 2022, all suppliers from Europe must have a REX (Registered Exporter) authorisation. It is necessary to show the REX registered number on your Commercial Invoice for goods to enter the UK duty free.
  • Any goods arriving at the UK Customs border without the REX number will have an import duty charge, if the product’s commodity code carries duty.

3. Products of Animal Origin (POAO)

There are certain rules for the importing products that come from animals (Products of Animal Origin). Changes to these processes are as follows:

  • From January 2022 onwards, UK importers of POAO must register with the Import of Products, Animals, Food, and Feed System (IPAFFS).
  • IPAFFS is a web-based service used to notify UK authorities of imports of live animals, their products, and germplasm.
  • In order to register, you must have a UK address. You must also acknowledge responsibility for submitting the pre-notification of incoming consignments with an attached Export Health Certificate (EHC). This can be done via IPAFFS, and should be completed before the consignment is due to arrive.
  • For exporters shipping POAO from the EU to the UK, it will be necessary to obtain an Export Health Certificate (EHC).
  • In order to apply for one, EU exporters must also be registered on TRACES NT. This is the European Commission’s digital certification and management platform for all SPS requirements, and supports the implementation of animals, animal products, food, and feed of non-animal origin and plants, in the European Union.

4. Changes to CHIEF and CDS

The Customs Hadnling of Import and Export Freight (CHIEF) system is the current method by businesses usually make customs declarations. Changes

  • In September 2022, the CHIEF system will be phased out for the Customs Declaration System (CDS).
  • HMRC developed CDS to accommodate all procedure and process changes to EU legislation brought about by the Union Customs Code in 2016.

Hopefully, this article has made you more aware of the changes in the rules governing international trade that are coming in January 2022. Keeping up to date with these changes can prevent your business from facing any unwanted setbacks or repercussions whilst conducting international trade.

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