Busy week in Brexitland…Some of the new processes mentioned below are literally only a few days old. We have given our assessment and will forward more detail as and when received (and deciphered).
TRANSITION EXTENSION
Whilst the deadline for requesting an extension is officially 30th June, the real date was 12th June (at least from the UK’s side). That has passed and the UK have formally confirmed [to the EU] that they will NOT be requesting an extension and will not agree to one should the EU request. So, that’s it. 31st December is set in stone. If any part of your Brexit prep relied on some form of extension, you need to re-visit immediately.
SOFT LAUNCH
The UK have announced a phased approach, the headline details of which are:-
* From 1st January standard UK imports will have access to a process known as CFSP EIDR (Customs Freight Simplified Procedures, Entry In Declarants Records). To all intents and purposes this will look like TSP. Certain goods are excluded and WILL require frontier declarations: excise goods for example. The full list will probably resemble the TSP controlled goods list by launch. Under CFSP EIDR you have up to six months to present the import entry…but you MUST keep records of arrivals. We understand that this easement will be available to all without the need to apply for it. We suspect it will also be available for EU suppliers using DDP or consignment stock movements, see note below regarding REPRESENTATION.
* From 1st July CFSP EIDR will be turned off, unless you have applied for full ongoing approval. Something we have lovingly labelled ‘try before you buy’ CFSP. Frontier declarations will be required in all cases from 1st July.
* SPS* controls will be relaxed initially, except for example live animals and high risk plants (probably those covered by the plant passport scheme). This was the case with TSP.
* From 1st April SPS will require health certification and pre-notification (IPAFFS) but very few physical checks will take place.
* From 1st July full SPS checks will be in place. Documents, TRACES NT, IPAFFS and goods will need to enter via a BCP (Border Control Post, formerly known as a BIP). It is not clear yet whether all SPS will need to visit a BCP, equally we do not yet know where the BCP’s will be. Some will be inland.
* S&S (Safety and Security) declarations will NOT be required on UK imports until 1st July 2021.
* UK export declarations will still be required (with connected EXS, exit summary declaration) although as these processes are UK only then expect a light touch here also.
* UK export health certificates (including phyto) will still be required as documentation required at destination whereas UK export declaration ends at point of exit. So any light touch on UK exports would NOT apply to health certification.
NOTE : this phased approach relates to UK imports only (whether that be from mainland EU or IRL).
*SPS = Sanitary and phyto-sanitary (products of animal origin, plants, vegetables, fruit and produce). Fish could also require additional control in the form of catch certificates although we have recently received details of a process called APEO and will be in touch with seafood shippers shortly.
Below is a helpful timeline graphic to focus the mind.
We have also updated our matrix document and have highlighted in yellow the processes effected by this phased approach.
REPRESENTATION
We await the finer detail but it seems that UK will allow brokers to act as DIRECT representatives providing the importer is established in UK…or EU. This is a major change as previously it only related to UK established and this severely hampered DDP and consignment stock shippers in their quest for a broker. It is precisely this change that makes us think that CFSP EIDR will be available even to those established in the EU, whereas TSP was specifically not. Very positive move by HMRC.
DUTY JUST GOT EASIER (INITIALLY)
One of the invisible benefits of TSP was that duty (if any) became a transaction between HMRC and the importer directly. The logistics provider, freight forwarder or broker did not need to secure payment. This would be particularly useful when incoterms are DAP or similar. CFSP EIDR appears to do the same. Remember it has an end date (30th June 2021) but at least for the first six months, UK imports can be handled without you (the logistics provider) having to worry about the duty liability, in most cases.
NORTHERN IRELAND
None of these easements relate to GB-NI-GB. This risk is that by making the Calais/Dover border a little softer it can make the NI ‘border’ appear harder by comparison. NI to GB is already a planned ‘light touch’ (EXS declaration only). GB to NI is problematic but we understand that the Joint Committee (tasked with splitting the Brexit atom) have been making good progress. It should be noted that HMG cannot introduce unilateral easements in NI as, although NI remains in the UK Customs territory, it is working to the EU Customs code.
HMRC are working hard on matters relating to the Northern Ireland Protocol. If you are involved or affected by these changes you need to register – see below.
We would recommend that you complete and submit this form immediately. We have. A link for further information is available here: https://www.gov.uk/guidance/questionnaire-for-businesses-who-move-goods-between-great-britain-and-northern-ireland?utm_source=e0f5d5d4-02c8-4c54-b833-3daa7ea36efd&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
Also, a big THANK YOU to those that have completed our impact assessment survey. If you have not already done so, please follow this link. The more data we have the more informed the argument can be. Click HERE
BRUNCH 2
We ran our second BRUNCH event on the 11th June. Another successful event but over-subscribed. We understand that some could not access the webinar. This was purely due to the number trying to get in. A victim of our own success! However, having forgotten to record the first one (oops!) we did record this one. Then, that evening we received information about the new arrangements above. It would have been wrong to release the webinar recording without including these vital changes. So…we re-recorded it (I’m destined never to get this right first time!). We have therefore created a very updated version. We’ve uploaded this to Youtube and we are delighted to share the link here: https://youtu.be/LblNXIp5xgk Give it a watch, even if you were lucky enough to attend the initial event.
TEMPORARY MEANS TEMPORARY
Whilst the easements introduced by HMG are welcomed they are temporary – they each have an end date. Do NOT stop planning. Do NOT stop sharing your data with us. Our plans have not changed at all and we continue to develop our automation and AI projects. Go to: https://www.mybrexit.uk/data. At worst we will stress test your plans, at best you will be 80+% of the way towards day one.
VMS – VEHICLE MANAGEMENT SYSTEM
It has not been talked about openly as yet but expect to hear of the VMS system being introduced by HMRC. This will be the control mechanism for the ‘honesty box’ CFSP EIDR process and will be used to create an initial (high level) audit trail. We expect it will operate in a similar way to the Calais logistics envelope. Not as restrictive as inventory linking but, equally, not a free-for-all. This brings back into play our concern about the communications with the trucking company. We have created a register for this and would urge hauliers to register. Our fear is that, it’s 2am, we have the vital MRN information, you are closed and we do not know who the trucking company is. Give us a chance to help you – register now! https://www.mybrexit.uk/trucks
Robert Hardy, Commercial Director, Oakland International/Oakland Invicta