The Brexit border process
Despite the welcome ‘light-touch’ import regime announced by the government, this is no simple process and shippers (in both directions) need to get ready for some profound changes to European movements.
From Brexit to the 1st July 2021 HMRC will operate a simplified import customs clearance system and qualifying businesses will be able to make a simplified border declaration (under CFSP), with a rolling six month deadline to submit supplementary declarations to HMRC’s declaration processing system CHIEF and its successor CDS.
Appoint PSP Worldwide Logistics to act as your Customs broker and simplify Brexit
Importing shippers are automatically subscribed this regime BUT only authorised bodies, like PSP Worldwide Logistics, can submit the simplified declarations that are required to clear goods at the border.
Shippers may submit the declarations, by obtaining authorisation from HMRC for simplified declaration procedures by demonstrating that they:
1. Maintain adequate, fully cross-referenced records
2. Are able to communicate electronically with HMRC systems
3. Will transmit complete, valid, accurate and timely declarations to Customs
4. Will properly endorse, exhaust, record, maintain and surrender (as required) all supporting documents
5. Will not pose a significant risk to the EU/ to the revenue in their operations of CFSP
6. Have satisfactory documented procedures and management controls in place to minimise any ‘risks’
7. Fully understand their obligations and will meet their authorisation requirements.
HMRC may also consider the applicants:
1. Capability to design and implement appropriate CFSP systems
2. Compliance history
3. Revenue and other risks
4. Size and complexity of system and operations
You will also need to apply to access the CHIEF declaration system, obtain a CHIEF badge, install HMRC approved software to submit your declarations and set up a duty deferment account to pay duty and VAT.
From 1st January to 30th June 2021 traders have a rolling six month deadline to submit supplementary declarations to CHIEF. Their Entry In Declarants Records (EIDR) must contain the following information:
1. The commodity code
2. The customs procedure code
3. Your declaration unique consignment reference – which is the main reference number that links declarations in the Customs Handling of Import and Export Freight (CHIEF) system
4. Purchase and, if available, the sales invoice numbers
5. The date and time of entry in records – creating the tax point, which is used for working out VAT payments later
6. Any temporary admission, Free Zone, warehousing or temporary storage stock account references
7. The Free Zone or warehouse approval number
8. A written description of the goods – so they are easy to identify
9. Customs value
10. Quantity of goods – for example, number of packages and items, net mass
11. Details of licensing requirements and licence numbers
12. Details of any supporting documents, including the serial numbers, where appropriate, needed before the goods can be released