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New GB Customs Regulations from 1st of January 2022 – 21st December, 2021

The UK’s grace period for customs will come to an end on the 31st December 2021, except for the island of Ireland, for which a temporary extension of existing arrangements will exist until further notice. For the rest of the EU, from 1st January 2022, EU based companies will have to fully comply to the UK’s customs regime. Full customs declarations and controls will be introduced, but safety and security declarations will not be required until July 2022. It is important that you are ready to submit customs declarations and pay duty. You can also choose to appoint an intermediary such as a customs agent to deal with these issues on your behalf.

Key Changes 

1. Rules of Origin

The reduced rate of customs duty agreed on in the Trade and Cooperation Agreement (TCA) is conditional on products originating from the EU or UK. This means that goods need to meet specific rules of origin requirements set out in the agreement. In 2021, businesses have been able to provide their supplier declarations after exporting their good, to allow them more time to fill in the paperwork. However, from 1st of January 2022 businesses must have these declarations at the time that the goods are exported, so it is important to have all relevant documentation in order, before the goods leave the EU. 

2. Border Controls

From January 2022, ports will be required to undertake full border checks, and unless goods have a valid declaration and have received customs clearance, they will not be released for circulation. Additionally, goods for which documentary and physical checks cannot be conducted at the border, may be directed to an Inland Border Facility where these checks can take place. If the correct processes are not followed from 1st January 2022, the new systems will not permit goods to leave the country and they will be turned away as they will not have export clearance.

It is also important to ensure that if you are using a courier service or freight forwarding company, that you check their terms and conditions to know who is responsible for the declarations, and what may still be required from you. 

3. Goods and Vehicle Movement Service (GVMS)

Currently, only hauliers who are moving goods under the Common Transit Convention need to be registered for the GVMS. However, from January 2022, any haulier that is moving goods from the EU into Great Britain, will need to register for the GVMS to move their goods through customs at any port.

Please find below some useful resources that can help you adapt to the new changes:

• The UK Government’s Brexit guidance including specific guidance on January 2022 customs controls
• The Belgian Government’s Brexit guidance
• The European Commission’s guidance on the application of the TCA

EU VAT Rules for E-Commerce: What’s Changing on 1st July?

On 1^st July 2021, the European Union (EU) will change its cross-border value added tax (VAT) rules for e-commerce. These changes will impact business-to-consumer (B2C) e-commerce sellers and online marketplaces, including any shipments made to the EU and between EU member states.

Individual sellers and marketplaces will be immediately affected by these changes. Distance sellers throughout the EU or distance sellers which trade with the EU should re-consider their VAT obligations before 1 July.

What’s Changing? 

• The distance selling thresholds for the sale of goods have been removed. An EU-wide threshold of 10,000 EUR has been set.
• New One Stop Shop (OSS) to extend the Mini One Stop Shop (MOSS).
• Low-value consignment relief from import VAT no longer applies. All consignments entering the EU from 3^rd party countries are now subject to import VAT. Import-One-Stop-Shop (IOSS) introduced to facilitate this.
• Online marketplaces are considered the seller for collecting and reporting VAT for goods sold.
• New record-keeping requirements for transactions made by online marketplaces supplying of goods and services.
• Special arrangements for imported goods valued less than €150 not using IOSS.

LEARN MORE

UK IMPORTERS SHOULD:

• Register online for the IPAFFS (Import of Products, Animals, Food and Feed System) in order to submit a pre-import notification to UK authorities. 
• Factor in additional time and costs associated with the implementation of new import requirements, if you import SPS goods, i.e supermarkets and food companies sourcing ingredients from Europe.

EU EXPORTERS SHOULD:

• Contact any UK importers, customs agents or hauliers involved in your supply chain, to ensure the correct customs and regulatory formalities will be completed.  
• Apply for the correct Health Certificate(s) from the local competent authority in your EU country of origin. The UK importer of your goods, will need this to submit their pre-import notification.