P and O

HMRC export deadline and rogue hauliers

Dec 6, 2023 | , , ,

With the deadline fast approaching for export declarations moving to the Customs Declaration Service HMRC are highlighting a worrying trend at the border, with misuse of valid documents leaving innocent exporters potentially non-compliant and exposed to penalties. 

In their latest Customs Declaration Service (CDS) update HMRC remind traders that all export declarations must move from their legacy Customs Handling of Import and Export Freight (CHIEF) system to CDS by Saturday 30th March 2024. 

We are continuing to work with our customers, setting them up on CDS for all export routes and the different types of export declaration submitted at the UK border, including Transit (TAD) and the Goods Vehicle Movement Service (GVMS).

It is these latter two that HMRC focused on, in highlighting Goods Movement Reference (GMR) errors by hauliers that are leading to issues at the UK and EU border.

Consistent misuse of valid export CDS documents where the transit document is being used for the convenience of the haulier means that shipments are not arrived in the correct manner.

Exporters have a legal obligation to pre-lodge declarations if they are moving their goods through a location using GVMS and pass evidence of this for a haulier to complete a GMR.

Hauliers have a legal obligation to carry evidence that pre-lodged customs declarations or reference numbers for Simplified Customs Procedure authorised traders are in place for all the goods they are moving.

This is met by hauliers completing a GMR which must include a declaration reference for each consignment as proof that a pre-lodged declaration has been made.

Carriers require a valid GMR to be presented at the port of departure before allowing the vehicle or trailer to board.

HMRC’s issue is that hauliers are inappropriately using TAD MRN (transit document) as suitable evidence for the export MRN reference, irrespective of what else is loaded to the trailer, which is not the case when a DUCR has been issued..

The correct use of DUCR or MUCR being advised to customs allows the authorities to “arrive” the customs entry, which means that there is a permanent record of the despatch of the goods so the VAT liability for the shipment is discharged and the zero rated document raised by the shipper becomes validated.

Incorrect GVMS entries by hauliers leads to missing data on exporters MSS reports, missing critical data in terms of managed Customs facilities such as stock records for CFSP locations, which leads to extra admin and inventory shortages, both serious matters.

These export process are incredibly complex and should be of no concern to exporters, but unfortunately many (non-Metro customers) are being caught out by the carriers’ non-compliance.

We work closely with our road transport partners to ensure they have the correct documentation and submit the correct information to GVMS through CDS.

Our CuDoS customs platform automatically monitors the status of export declarations and will flag potential non-compliance issues.

If you have any concerns or questions, regarding CDS or export compliance please EMAIL Andy Fitchett, Brokerage Manager.

Inland Border Facility

Businesses face 24 legislative and policy supply chain changes

Oct 10, 2023 | ,

The Institute of Export & International Trade has issued a report highlighting the volume of regulatory change facing UK traders over the next 18 months and called for support for businesses through this turbulent period.

The report – The Border Target Operating Model and Beyond: Navigating changes to trade rules in the UK – details over 20 major policy updates that will impact British firms trading internationally between now and the end of 2024.

This makes the period potentially even busier and more critical for businesses that trade internationally than 2021, when the EU began applying full customs requirements and checks on UK post-Brexit exports.

Last month the government announced its plans for the new approach to importing goods into the UK via the Border Target Operating Model (BTOM), which will be introduced in phases starting in January 2024, and will affect border procedures for imports of food, animal and plant products.

But analysis finds BTOM to be just the beginning, with a further 23 major legislative and policy changes set to affect businesses directly or indirectly, through supply chains and delivery partners.

Other changes over coming months include the fifth release of the New Computerised Transit System (NCTS5), the rollout of the Electronic Trade Documents Act, the EU Import Control System 2, and multiple updates to documentation, risk-based checks and health certification checks on specific products.

With specific requirements and levels of understanding needed for each change, the time and support needed to implement these changes will be substantial, though once implemented, the potential benefits will be vast.

The UK’s international trade community is at the launchpad of great change, but such a number of new measures in so short a period is almost unheard of and while it presents an opportunity to reap the benefits of new trade deals and partnerships, businesses and policymakers will need to be pulling together in the same direction.

From cutting red tape to new digital borders, these changes are a cause for excitement, but with so much change, there is going to be some apprehension among business owners.

Businesses trading into or out of the UK face a period of intense regulatory change, with a wave of new rules coming into force and it is essential they stay ahead of these developments and keep up to date with the new rules. 

They need to know what's changing and when and they need to understand how it may affect their processes.

The next 18 months will see the introduction of the UK’s new Border Target Operating Model, a new IT platform for transit users, the migration to the new Customs Declaration Service for exporters and new customs rules from the EU, among other changes.

To learn more about impending changes and how you can prepared, please EMAIL Andy Fitchett, Metro’s Head of Brokerage and Customs Compliance.

Dover queues

Final stage of EU’s Import Control System 2

Sep 27, 2023 | ,

On the 1st March 2024, the European Union is launching the 3rd and final part of its pre-loading and pre-arrival safety and security programme, which requires pre-advice of mandatory information and failure by shippers to comply may lead to goods being rejected by the airline, shipping line, rail operator or haulier.

The European Union (EU) implemented the European Import Control System (ICS) in the safety and security measures framework in 2011, to perform risk analysis on air, sea, rail and road freight before it enters or transits the customs territory of the EU.

In 2021, the EU began the rollout of ICS2 in 3 phases:  
15th March 2021: Mail/express shipments (pre-loading)
1st March 2023: Air cargo and Mail/express shipments (full)
1st March 2024: Maritime, Road, and Rail

Carriers submit details on cargo before it is carried into the EU, risk analysis on the data decides if shipments can proceed, or need to be presented for inspection.  

The ICS2 process:

1. Lodge the ENS declaration to customs by the economic operators 
2. Safety and security risk analysis performed by customs 
3. Arrival notification of the means of transport by the carrier or its representative 
4. Presentation to customs and examination in case of a potential risk

We have been adapting our processes and systems to meet the new EU requirements, but compliance with ICS2 changes will depend on the active participation of shippers.

Carriers will require relevant data to fulfil their responsibility for the pre-loading and pre-arrival information data set, including the journey details, which is sent to ICS2, where it is automatically reviewed for possible security threats. 

The pre-loading and pre-arrival messages are collectively referred to as the Entry Summary Declaration (ENS).

We will require the following information, so that we can ensure the pre-loading data is made available to the carrier in good time:

Shipper Name
Shipper Address
Consignee Name (including EORI number for cargo staying in Europe)
Consignee Address
Cargo Description (including 6-digit HS codes)
Total Quantity
Total Weight

When the ENS information is not provided to EU customs, shipments will be stopped and will not be processed for customs clearance, which will lead to delays and potential fines.

We are working closely with our sea, road and rail partners, test-submitting these new data sets, to ensure the smooth implementation of this new EU customs process. 

If you have any concerns or questions, regarding the ICS2 roll-out please EMAIL Andy Fitchett, Brokerage Manager.

Belfast 1

Get ready for the NI Windsor Agreement processes

Sep 27, 2023 | ,

The Windsor Framework was agreed in February to ease post-Brexit trade between Northern Ireland (NI) and the rest of the UK, but concerns remain about a continuing lack of clarity over the details of the Windsor Framework - which begins to come into force from the 1st October.

Prior to the Windsor agreement the process for movements to NI is under the TSS (Trader Support Scheme) with shippers submitting a simplified declaration, under the UK Trader Scheme (UKTS). 

However, this only complied with the Safety and Security declarations required by the Ferry operators and a second supplementary declaration is made in NI, with commodity code, value of goods, and additional information statements specific to goods.

Most critically of all a percentage calculation of goods “at risk of moving to the South” are applied and duty invoiced to the Consignee for potential sales not actual.

As a result of the Windsor Framework, the Government is able to introduce a scheme to reimburse the payment of EU customs duties paid on goods moved into NI that were not sold or used in the EU - The Customs (Northern Ireland: Repayment And Remission) (Eu Exit) (Amendment) Regulations 2023.

The agreement establishes a new UK Internal Market Scheme (UKIMS) for the movement of goods from the UK to NI and is being phased in from 30th September. 

The existing UKTS will be replaced by the new UK Internal Market Scheme (UKIMS) with effect from 30th September 2023. This will enable businesses established in Great Britain to join and declare goods “not at risk” if they are brought into Northern Ireland for sale or final use by end consumers in the UK.

Traders who join UKIMS will be able to declare their goods as ‘not at risk’ which means they will not be charged duty if entering NI from free circulation in Great Britain. They will, however, be charged UK duty if entering Northern Ireland from outside the EU and the UK, or if the goods were not in free circulation in GB.

Green Lane

The ‘Green Lane’ will significantly expand the range of businesses who can benefit; end the requirement for traders to provide customs commodity codes; scrap supplementary declarations; and ensure that businesses can move their goods using commercial information.

It is worth noting that both lanes are ‘virtual’ and no physical lanes, or markings exist.

Regulatory easements in the green lane do not exist for all types of goods. The focus is on those goods with the most onerous SPS compliance obligations, including pre-packaged products of animal or plant origin, food and food products.

Meat and fresh dairy products are to be labelled ‘Not for EU’ from October 2023, all other dairy products from October 2024, and composite products, fruit, vegetables and fish from July 2025.

Traders will need to be registered on the Northern Ireland Retail Movement Scheme (NIRMS) for SPS goods and the UK Internal Market Scheme (UKIMS) for general goods. 

For goods moving on or after 30th September 2023, the UK Trader Scheme authorisation will no longer be valid and traders must use the UK Internal Market Scheme (UKIMS) authorisation to declare your goods ‘not at risk’ of entering the EU, if the applicable EU duty is greater than zero.

Green Lane Process
Trader uses commercial info and submits to TSS
Haulier obtains GMR
Goods are moved

Red Lane
Goods not for final consumption in Northern Ireland must go through a red lane
‘At risk’ goods will be charged the applicable EU duty

Red Lane Process
Haulier completed Entry Summary Declaration (ENS)
Simplified Frontier Declaration (SFD)
Haulier obtains GMR
Goods are moved
Supplementary declaration
Pay duty

Key dates
June 2023 - Traders can register for UKIMS
September 2023 - UKIMS must be used for no duty to be applied (Green Lane)
October 2023 - STANMI replaced by NI Retail Movement Scheme (NIRMS)
September 2024 - Full Green Lane implemented

A number of questions remain outstanding including…
- Who will run the Trusted Trader Scheme and what are the costs involved?
- How long will the government fund the TSS – the Trader Support Service (03 10 23 - HMRC confirm extension 31 12 24)
- How will the red and green lanes work in practice, especially where groupage loads are concerned?

At the moment it appears that trailers containing a mix of cargoes eligible for the green lane, will need to go through the red lane, even if just one consignment entering NI is in the red lane.

Retailers, especially the supermarkets, are likely to be the largest users of the Green Lane; while manufacturers in Northern Ireland appear more likely to use the red lane, so that goods can be shown to comply with applicable EU law and so be processed and sold on within the EU market.

HMRC UPDATE, 3rd OCTOBER 2023 - HMRC has confirmed the extension of the Trader Support Service until 31 December 2024, as a free to use service, educating traders on applicable processes and supporting them to submit customs and safety and security declarations.

We will continue to share information on the new framework and processes as they become available.

Our customs team are working directly with affected clients, to ensure that they are prepared and compliant with new customs processes, declarations and requirements.

If you have any questions or concerns about the Windsor Agreement and trade with NI/IE please EMAIL Andy Fitchett, Brokerage Manager, who will be happy to review your situation.

Category: Customs

Brexit | Customs | EU

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