HMRC reminds traders about changing customs controls

HMRC are reminding traders to prepare for customs changes that come into effect on January 1 2022.

Traders will no longer be able to delay making import customs declarations under the Staged Customs Controls rules that have applied during 2021. Most customers will have to make declarations and pay relevant tariffs at the point of import.

Businesses should consider before January 1 2022 how they are going to submit customs declarations and pay any duties that are due. Firms can appoint an intermediary, such as a customs agent, to deal with declarations.

The UK’s deal with the EU, called the Trade and Cooperation Agreement (TCA), means that the goods you import or export may benefit from a reduced rate of Customs Duty (tariff preference).

HMRC defines ‘originate’ as where goods (or the materials, parts or ingredients used to make them) have been produced or manufactured. It is not where the goods have been shipped or bought from. Goods will need to meet the product specific rules of origin requirements set out in the TCA.

Ports and other border locations will be required to control goods moving Great Britain and the EU. This means that unless goods have a valid declaration and have received customs clearance, they will not be able to be released into circulation, and in most cases will not be able to leave the port.

From January 1 2022, goods may be directed to an Inland Border Facility for documentary or physical checks if these checks cannot be done at the border.

For VAT-registered importers, they can continue to use Postponed VAT Accounting (PVA) on all customs declarations that require a business to account for import VAT, including supplementary declarations, except when HMRC have said otherwise.