What has changed after Brexit?

In 2016, with the result of the referendum for leaving or remaining a member of the European Union, the Brexit transition period has begun. New regulations for transportation and customs came into force as of January 1. Even though the new systems and declarations for Brexit may seem complicated, with the right information and direction, you can adapt your business quickly to Brexit. The most significant change is transitioning from CHIEF (Customs Handling of Import and Export Freight), which has been running for 25 years, to CDS (Customs Declaration Service). The other important change is of course customs. While some procedures for customs declarations have changed, new declarations have been added. The Brexit pros and cons are not fully predictable, we will see the consequences of Brexit in the following times. We will try to explain some of the changes that you need to know while preparing for Brexit. Here you can see Brexit’s impact on businesses and the differences in logistics in the UK after the Brexit transition. Let’s get your business ready for Brexit!

What is Customs Declaration Service (CDS) ?

The Customs Declaration Service (CDS) is a customs declaration platform used in Northern Ireland and Great Britain trade since August 2018.

It will be a long-time replacement for the currently used system, CHIEF (Customs Handling of Import and Export Freight).

With CDS, you can:

  1. make customs declarations via software that is compatible with the Customs Declaration Service
  2. get import VAT statements and certificates to help complete your VAT Return
  3. get duty deferment statements

Most of the users find it easy to use but of course, because it is a new system, users can face some challenges.

How to Get Access to the Customs Declaration Service (CDS) ?

The first thing to do is getting an EORI number. For all customs declarations, you are required to have an EORI (Economic Operators Registration and Identification) number. If you export goods from England, Wales or Scotland you need an EORI number that starts with GB and if you export or import goods from Northern Ireland you need one that starts with XI. For those who are internationally trading, the EORI number enables your data to exchange internationally.

Once you have an EORI number, the next step is to get a Government Gateway user ID and password.

The first thing to do is getting an EORI number. For all customs declarations, you are required to have an EORI (Economic Operators Registration and Identification) number. If you export goods from England, Wales or Scotland you need an EORI number that starts with GB and if you export or import goods from Northern Ireland you need one that starts with XI. For those who are internationally trading, the EORI number enables your data to exchange internationally.

What Will Happen After You Apply?

After you applied, there are two ways that can happen:

  1. You can start straight away.
  2. If HMRC needs to make checks, you can get access in 5 working days.

You will receive a confirmation email if the process goes smoothly (also check the status of your application). After that only thing left to do is setting up your duty deferment account and completing a new Direct Debit Instruction.

What is New Computerized Transit System (NCTS) ?

You need to use the Customs Handling of Import and Export Freight (CHIEF) system to make import or export declarations, to use CHIEF, you’ll need to tell HMRC your full contact details so they can be linked to your CHIEF badge.

To get access to CHIEF you’ll need to both:

  • apply for access to CHIEF
  • buy commercial software that can submit declarations through CHIEF

If you’re a trader in Great Britain moving goods using transit…

First of all, you will need an EORI number that starts with GB. After that, you must register your business for VAT with HMRC if its VAT taxable turnover is more than £85,000 (the ‘threshold’).

There are several ways to ease the transportation and declaration process if you export regularly. One of them is the simplified declaration procedure. This process consists of two parts, in the first part you do not have to give much detailed information, and when it is accepted, you will have to submit a supplementary declaration within 14 days. And you will give all the additional and necessary information to the customs through this declaration.

The other one is using Common and Union Transit. You can move your goods quicker to EU countries and common transit countries without submitting customs declarations and duties at each border crossing and you can complete some customs processes away from the border.

If you are moving goods from the UK to European Union countries or common transit countries using transit, you need to complete a transit declaration on the NCTS. You can also move multiple goods together under one declaration in accordance with the type of goods.

You will also need to submit an export declaration before completing your transit declaration if the goods are both:

  • going to an office of destination anywhere outside of the United Kingdom
  • not under duty suspense when they start their transit journey in Great Britain

From 1 January 2021, all movements starting in Great Britain have T1 status.

Besides, all transit movements which require safety and security data will need to submit an exit summary declaration.

If you’re a trader in Northern Ireland moving goods using transit…

You will need an EORI number with XI and a guarantee reference number starting with XI registered to an XI EORI number.

If the goods you are exporting are made in the EU or Northern Ireland, or have EU or Northern Ireland duties paid on them, you will need to register for the National Export System.

You can make transit declarations through XML or the EDIFACT email channel.

How to use the EDIFACT email channel to access the NCTS

To use EDIFACT to access the NCTS, you will need to buy software that is compatible with NCTS.

Through gov.uk, you can check the technical issues and see if your current software is compatible with NCTS.

What is Goods Vehicle Movement Service (GVMS)?

The Goods Vehicle Movement Service (GVMS) is a UK government border control system. GVMS will link declaration references together, also link the movement of goods declarations and notify customers about their goods HMRC status. Under GVMS all customs declarations would need to be submitted and be quoted against the vehicles GVMS record.

You need a goods movement reference to move goods from:

  • the EU to Great Britain (England, Scotland and Wales – for transit movements only)
  • Great Britain to Northern Ireland

Goods Movement Records and References

At borders that operating a pre-lodgement model and using the GVMS to control goods, pre-lodged declaration references will need to be linked together within a single Goods Movement Record (GMR). Carriers will require hauliers to give them the reference generated by a GMR (the Goods Movement Reference or gmrId) for them to use when they arrived at the crossings on these routes.

What is required to obtain a valid GMR?

For goods in every vehicle making a crossing on a GVMS route, your software users need to get a reference number proving that declarations have either been pre-lodged or are not needed.

For detailed information about the references, you can visit the UK government website.

How to Register for GVMS?

To move goods over routes that use GVMS, responsible business or the person must have a registered account with HMRC.

First of all, your business needs a Government Gateway user ID and a password. Also, you need to link your Government Gateway user ID to your GB EORI number.

After that, you must register your business online for GMR service.

How to Create or Update a GMR

As a software user, you will need to update your GMR with all the information HMRC needs. The level of information can change in accordance with the goods you are moving and the customs procedure. You can create a full record or incomplete information and update it later. Nevertheless, if your record is not complete, finalisation will not be possible. It can be updated as many times as needed before being used at check-in.

What is Safety and Security Declaration?

There are two types of safety and security declarations: an exit summary declaration (EXS) and an entry summary declaration (ENS).

From 1 July 2021, you will also be required to submit safety and security import declarations on goods entering Great Britain from the EU.

What is Exit Summary Declaration?

Exit Summary Declaration is one of the Safety and Security Declarations.

An exit summary declaration is needed if you are moving goods outside the UK. From 1 January 2021, safety and security requirements will apply to all movements out of Great Britain unless the goods are coved under the temporary waiver or are going to Northern Ireland.

Most goods that are covered with safety and security information in export declarations will not need an exit summary declaration.

You need to make an exit summary declaration if;

  • an empty pallet, container or vehicle is being moved under a transport contract
  • goods have remained in temporary storage for more than 14 days
  • goods have remained in temporary storage for less than 14 days, but the import safety and security declaration details are unknown
  • goods are moved under transit using either a TAD or TSAD

When Will You Need to Make an Exit Summary Declaration?

You must submit an exit summary declaration before exporting the goods.

How to Make an Exit Summary Declaration

Exit summary declarations are submitted on the CHIEF in the same way as an export declaration, for goods exported from Great Britain, and the CDS, for goods exported from Northern Ireland.

What is Entry Summary Declaration?

An entry summary declaration is needed if you are moving into Great Britain, from Great Britain to Northern Ireland, or into Northern Ireland from outside the EU.

You must be registered for either the S&S GB service (bringing goods into the UK) or Import Control System Northern Ireland (bringing goods into Northern Ireland) to submit your declaration.

You do not need to make an entry summary declaration from 1 January 2021 to 30 June 2021 for goods that are imported into Great Britain from the EU or:

  • Andorra
  • Monaco
  • Norway
  • Liechtenstein
  • Switzerland
  • Ceuta and Melilla
  • Heligoland
  • San Marino
  • the Vatican City State
  • the municipalities of Livigno Campione d’Italia
  • the Italian national waters of Lake Lugano, which are between the bank and the political frontier of the area between Ponte Tresa and Porto Ceresio

When Will You Need to Make an Entry Summary Declaration?

There are different time limits depending on the type of transportation.

How to Make an Entry Summary Declaration

Besides the required documents and licences for your import, you will need information about the:

  • goods description or commodity code
  • consignor and consignee
  • type, amount and packaging of your goods
  • mode of transport at the border
  • onward journey details

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