Deferred UK duty payment? Time to pay up starts now!

EU companies importing into the EU are able to defer duty payment for 175 days. But the time to pay up is fast approaching. Are you ready?

What flexibility does the UK provide?

The UK Government has provided some flexibility to UK traders that EU traders should be aware of, too.

Normal process

Since 1 January 2021, for full standard import declarations, the transporter needs either the CHIEF entry number or the CDS Movement Reference Number.

Simplified process

But for goods declared using delayed declarations, the transporter will need only the GB EORI Number of the importer. That's a super simplification. But it's only temporary and it ends.

Cut-off date

Up until 31 December 2021, authorised UK importers have the possibility to defer their import formalities for up to 175 days from the date of entry of non-controlled EU goods into the UK.

Enter goods into record

This means that UK importers will be authorised to enter the goods in their records at the time of import and provide full supplementary declarations to HMRC only up to 175 days afterwards.

How can a business make supplementary declarations?

To make the supplementary declaration, importers must be authorised to use simplified customs declarations processes, or ask an agent that is so authorised to help them.

HMRC can issue penalties for non-compliance should traders fail to meet the appropriate deadline for supplementary declarations.

What happens on 1 January 2022?

As of 1 January 2022, UK importers will no longer be able to benefit from the delayed import declarations. Therefore, all import formalities will be due before or upon arrival of the goods at the points of entry into the UK. If pre-authorised, the importers may still benefit from simplified customs procedures with an obligation to complete its formalities within a month.

Duty-free: What are my options?

UK importers may require EU exporters to make out a statement on origin for the moment where the claim on origin is made in the UK. In this way, UK importers can benefit from preferential treatment in accordance with the provisions of the EU-UK Trade Cooperation Agreement (please see further information on the preferential arrangement here) which apply since the beginning of the year.

What do transporters need to do or know?

EU transporters may be required to carry evidence that a declaration has been made when entering the UK territory. The reference the transporter may be asked to produce depends on the type of declaration lodged. They must therefore confirm with the importer how the declaration will be made.

What happens from 2022?

From 1 January 2022, transporters of goods imported at locations where a pre-lodged declaration is required will need to use the Goods Vehicle Movement Service and provide evidence of the declaration before the goods can be loaded.

For more information, we invite you to consult the experts at Customs Manager Ltd.


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