UK Government Announces Fourth Delay to Post-Brexit SPS Checks 

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The UK Government has announced a fourth delay to SPS checks imported into the UK from the European Union, due July 2021, but now expected in Autumn 2023. 

Overview 

Since our departure from the EU, the UK has slowly implemented a full border between the UK-EU. One of the last processes to be introduced are Sanitary-Phytosanitary (SPS) checks on animal, plant and foodstuff product imports at Border Posts.   

Importers will still need to pre-notify the Department for Environment Health Food & Agriculture (Defra) using the IPAFFS system and complete customs processes, while high risk goods, such as live animals, will require full checks. 

This will not affect SPS processes on imports from the Rest of the World. 

The UK government claim the move is to help with high cost of living crisis and to allow time to implement a smooth and efficient border. Others criticise wasted resources in preparing for the four time delayed border and lack of transparency on how the final process and requirements will look. 

Target Models 

The Government plans to refresh its “Border Operating Model” in the coming weeks, its overall border strategy, to reflect and include any further changes to the border. 

Government also plans to announce a new Target Operating Model this Autumn, expected to layout the roadmap towards “Border 2025”, part of the UK’s ambition to develop a world leading digital and seamless border. 

If you are impacted by this, or have any questions, please let us know at: [email protected].

Exporter/Importer of Record

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This article aims to clarify the role of the Exporter of Record (EOR), and the Importer of Record (IOR). It will discuss why their roles are important, why businesses trading internationally use them, and what their status allows them to do.

What is an Exporter of Record (EOR)?

An EOR is the legal exporting entity for goods leaving the country. They carry out a valuable service because they help businesses meet trade compliance rules and regulations while exporting.

In many cases, the EOR is also the shipper, and may also be the owner of the goods too, but they don’t have to be. If the EOR is not the owner, then they could be a licensed and knowledgeable third-party export service provider.

Why is an Exporter of Record needed?

Businesses use an EOR for their expertise and knowledge of the export process. Using a third-party EOR could help them avoid making mistakes. They could also avoid potential financial/legal consequences that come with those mistakes.

What are the responsibilities of the EOR?

The EOR is responsible for adhering to the customs processes required in a country for the export of goods. So, their responsibilities might also include:

  • the obtaining of all the necessary documentation for export clearance (such as licenses and permits)
  • ensuring that a clear and accurate description and value of the goods being exported is present
  • the forwarding of any detailed information about a shipment to the forwarding agent (if one is involved)

If goods don’t arrive at their destination either on time or whatsoever, the EOR is also responsible for any financial consequences to the recipient.

These responsibilities are legally binding. If a breach in compliance procedures occurs, the EOR can face severe penalties. These could be financial penalties, criminal liability, or both. This is regardless of whether the OER is aware of the negligence, or if they were aware that a violation had occurred and did not take steps towards resolving or reporting it.

Importers of Record (IOR)

In a similar manner to the EOR, the IOR is responsible for all supporting documentation and compliance that goes along with an import. Their responsibilities might include:

  • Organising import licenses, permits, and local rules and regulations paperwork
  • The payment of duties, taxes, tariffs, and fees

The IOR must be compliant with all necessary rules, regulations, and statutes in the importing country. The same punishments for misconduct against EORs are present for IORs.

For more information on documents used in international trade, visit the Trade Toolkit section of our website at https://www.neechamber.co.uk/preparing-to-trade/.

Changes from 1st January 2022

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From 1st January 2022 a number of changes have been introduced for importing and exporting.  The list below provides a summary of the changes.

Import declarations

  • Full import declarations are required before goods load onto cross-channel transport.
  • Any goods imported in 2021 that have not had an import customs declaration need to have a declaration submitted to HMRC.  If you need any support in arranging a declaration for goods arrived in 2021 please contact [email protected]

Requirements for the Declaration of Origin for trade between the UK & EU

Good Vehicle Movement System

  • Import and export declarations via UK GVMS ports must include the statement RRS01on the declaration in order for the consignment to be linked to the GMR from the GVMS entry.  Details on which ports are using GVMS.  
  • The Cabinet Office Border Protocol and Delivery Group – monitoring situation at GVMS ports.  BDPG have confirmed that there have been some minor issues in the initial weeks that have worked with Border Force and HMRC to resolve.
  • Any issues with GVMS can be raised with the HMRC import / export enquiries helpdesk.

Updated requirements for Animal and Plant products

Commodity codes

  • The UK trade tariff has been updated in line with the changes made by the World Customs Organisation (WCO) to the Harmonised System Nomenclature for 2022.
  • All commodity codes used should be checked against the revised tariff, guidance is available here.
  • UK  commodity code tariff.  

Trading with the island of Ireland

The Chamber’s are constantly collecting feedback to influence policy and decision makers. If you have experienced any changes to your trade from 1st January, let us know at: [email protected]

If you have any queries relating to updated processes since 1st January please get in touch with [email protected]

Changes to the import of EU Sanitary-Phytosanitary goods coming in October 2021

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From the beginning of October 2021, the second phase of the UK’s Border Operating Model will be implemented, after being postponed earlier in the year. These changes will introduce additional requirements for the import of many goods subject to Sanitary-Phytosanitary (SPS) controls from the European Union.

The goods that will be affected by the implementation of Phase 2 of the border model are ‘Products of Animal Origin’ (POAO), Animal By-Products (ABP) not for human consumption, fishery and live bivalve molluscs, and ‘High-risk food and feed not of animal origin’ (HRFNAO)

These changes will mean that these SPS goods imported into the UK from the European Union will need to be pre-notified to the relevant competent authority, and require an Export Health Certificate in order to be cleared into Britain. These goods will also be subject to customs checks to ensure that the correct paperwork is in place, and possibly physical checks of the goods.

This has not currently been the case, but SPS goods being exported to the EU have been subject to these rules since the beginning of 2021. At the start of the year, the requirements for Export Health Certificates and the demand for a qualified veterinarian to certify the goods caused significant disturbances.

Full information on the UK Border Operating Model can be found here.

Import Declaration Update: Goods arriving in Great Britain since 01/01/2021

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All goods arriving in GB since 1st January 2021 must have an import entry completed.  As part of the post-Brexit easements, from 01/01/21 goods can enter GB before the import entry has been arranged, from 01/01/22 this easement will be removed and all imports into GB must have an import entry raised to be allowed to be transported to the GB frontier.

Since 01/01/21 import entries can be declared as full declarations or as simplified declarations utilising the Entry in Declarants Records (EIDR).

HMRC produced further guidance on 6th July 2021 on the timescales that should be adhered to for arranging import declarations into GB whilst the easement regarding import declarations is in place.

In summary, any goods that have been imported since 01/01/21 but not declared must have an import declaration submitted by 06/08/21 and declarations must be made within one month of the goods arrival in GB for the entry to remain compliant. 

There is now guidance on timescale limitations for utilising postponed VAT accounting and when full declarations and EIDR should be used and also of where HMRC will apply civil penalties if non-compliance for import customs entries are found for imports into GB during 2021. 

The full HMRC guidance can be found: https://www.gov.uk/guidance/goods-arriving-in-great-britain-without-an-import-declaration-cip-1?utm_medium=email&utm_campaign=govuk-notifications&utm_source=dcc4d24f-accf-4cdd-92c3-142c3f8ce3f7&utm_content=daily 

For any further support on this please contact [email protected] or if you would like any information or to utilise the Chamber’s ChamberCustoms Brokerage service please contact [email protected]

UK Trade Statistics – April 2021

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ONS data released today showed that total UK exports fell marginally in April 2021, by £0.1bn (0.6%), to a value of £26.6bn. This decrease was driven primarily by a drop of £0.4bn in exports to non-EU countries, while EU exports grew by £0.3bn, or 2.0%, on the previous month. This is the third straight month that EU exports have increased following a record fall of over 40% in January.

The value of imported goods increased by a significantly larger £1.4bn, with both EU and non-EU imports increasing on their March figures. EU imports grew by 3.9%, or £1.4bn, which is more than 6 times larger than the respective export growth. The overall goods trade deficit widened by £0.3bn to £5.4bn in April.

Trade with non-EU countries continues to be higher than from EU member states, as EU trade continues to recover and businesses adapt to the new UK-EU trading relationship. Exports and imports from EU countries valued £12.9bn and £18.4bn respectively, while the same figures for non-EU markets were £13.6bn and £20.1bn. This figure for goods imports from non-EU countries (£20.1bn) is the highest since records began in January 1997.

In the 3 months to April 2021, total imports of goods fell by 2.8bn or 2.5% when compared with the three months to January 2021. This was primarily caused by a 12% drop in imports from the European Union. The three months to January 2021 did see a significant level of stockpiling of EU goods, which may be behind this drop in the subsequent months.

When compared to April 2020, the height of the first COVID wave, exports and imports were respectively 31% and 37% higher in April 2021. Exports are still below pre-pandemic and pre-brexit levels, however, as goods export value in April 2021 were still £1.0bn or 3.5% below their level from April 2018.

In July, statistics are set to be released to show the regional breakdown of international trade in the first Quarter of 2021. When this data is made available, we will be able to see whether the North East’s historic reliance on EU markets for trade has meant that the drop in EU trade has been seen disproportionately in our region. Government is aware of the challenges that the new UK-EU relationship has presented to businesses, and should continue to work alongside traders in improving business knowledge and reducing friction between the UK and the European Union.