Trade Compliance News - March 2024
UK goods face new Canada tariffs in Brexit trade fallout
New duties will now be imposed on Britain’s exports to Canada. As a result of the failure of negotiations between the two nations to extend trade rules for a new post-Brexit agreement, this has occurred.
Automobiles exported from the United Kingdom to Canada are subject to a 6% tariff or tax.
This comes as the temporary privilege granted under the UK -Canada trade deal which was extended after Brexit in 2020, expired after failed negotiations.
As a result, British exporters of vehicles, chemicals, and processed foods that depend on EU parts will no longer have tariff-free access to the Canadian market.
UK Steel Exporters Rejoice as Costly Paperwork Burden Lifted
Since last autumn, companies exporting iron and steel-containing products to the EU have had to furnish ‘mill certificates’ as proof of non-Russian origin of elements.
This requirement posed significant challenges, proving either costly or unattainable for many UK businesses, leading to the loss of vital export markets.
In a welcome change, the EU has now scrapped the paperwork requirement. Countless UK businesses are experiencing immense relief as the European Union announces the removal of a significant paperwork burden.
The lifting of this paperwork burden will bring several benefits to UK steel product exporters:
Cost Savings: Eliminating the need for costly paperwork such as ‘mill certificates’ will reduce administrative expenses for businesses, enabling them to allocate resources more efficiently.
Since last autumn, companies exporting iron and steel-containing products to the EU have had to furnish ‘mill certificates’ as proof of non-Russian origin of elements.
This requirement posed significant challenges, proving either costly or unattainable for many UK businesses, leading to the loss of vital export markets.
In a welcome change, the EU has now scrapped the paperwork requirement. Countless UK businesses are experiencing immense relief as the European Union announces the removal of a significant paperwork burden.
The lifting of this paperwork burden will bring several benefits to UK steel product exporters:
Impact on Costs: Costly paperwork elimination such as ‘mill certificates’ will reduce administrative expenses for businesses and enable them to allocate resources more efficiently.
Increased competitiveness: UK steel exporters can compete more effectively in the EU market without facing bureaucratic hurdles and potentially gain a competitive edge over rivals from other countries.
Market expansion: This removal of barriers will allow UK businesses to explore new opportunities and expand their market reach within the EU without facing hurdles
Business continuity: By alleviating the burden of compliance documentation, exporters can maintain uninterrupted trade relationships with EU partners, ensuring continuity of business operations and safeguarding against market disruptions.
Overall, the benefit of lifting the paperwork burden is the promotion of smoother, more efficient trade practices, fostering growth and prosperity for UK steel product exporters.
30 April 2024 Deadline Looms- Are You Prepared?
What will change on 30th April? How to remain compliant?
Additional import controls are coming on 30 April. From 30 April 2024, traders must:
🛳 Make sure that EU/EFTA goods enter GB via a designated Border Control Post (BCP) or Control Point (CP) suitable for your specific commodity type.
Upon arrival, be prepared to present the consignment for inspection as needed, where risk-based documentary, identity, and physical checks may occur. Inspections for high-risk plants and plant products from the EU, Switzerland, and Liechtenstein will transition from Places of Destination (PoDs) to BCPs and CPs.
🛳 Before submitting the import notification for a consignment containing fish or fishery products for human consumption in IPAFFS, ensure to upload the IUU (Illegal, Unreported, and Unregulated) documents to the CHED (Common Health Entry Document).
Supply chain woes as Baltimore Bridge collapses
The Francis Scott Key Bridge in Baltimore collapsed in a tragic incident on 26th March following a collision with a large container ship. This resulted in six presumed fatalities and significant potential damage running into millions of dollars.
Baltimore being a key port on the east coast of the US, is a major hub for international trade into and out of the United States. The Maritime cargo into the port has been suspended as a result. This will create significant problems on the US East Coast for US importers and exporters,
Trade experts say that this could have major implications along the supply chain, as commercial vessels remain trapped by the fallen debris.
Export Control Regulations 2024 Amended
The Export Control Joint Unit recently issued a notice to exporters informing them about amendments to the UK’s lists of items under export controls.
The updates involve implementing new controls on certain emerging technologies. The UK is introducing these controls in collaboration with other like-minded countries to enhance national regulations and address gaps in the multilateral system. The new entries pertain to:
- Quantum technologies
- Cryogenic technologies
- Semiconductor technologies
- Additive manufacturing equipment
- Advanced materials
Exporting this equipment will now require an export licence for all destinations. Find out more
Rebounding Global Trade in 2024, Contrary to the Decline of the Previous Year
Amidst persistent challenges, UNCTAD’s Global Trade recently published a report highlighting the global trade trend and encouraging indications.
- The international trade sector is anticipated to recover in 2024, following a series of quarterly declines.
- Global trade is anticipated to contract by $1 trillion in 2023, according to preliminary data. This contraction will be primarily caused by weaker trade within East Asia and Latin America, as well as diminished demand in developed nations.
- Despite a decline in the trade of commodities in 2023, the trade of services sustained growth, indicating a resilient approach in the face of difficult circumstances.
The global trade value witnessed a decrease of 3% in the year 2023. Contrary to a 5% decline in trade in commodities, trade in services experienced an 8% surge.
Developing countries and South-South trade fared worse than the global averages during the year. However, trade in environmental products saw growth, particularly in electric cars, which boosted motor vehicle trade. Although the prediction for 2024 appears to be bright, concerns persist owing to geopolitical challenges and shipping interruption.
Euro area international trade in goods surplus €11.4 bn
The European commission recently released euro indicators highlighting a boost in international trade.
In January 2024, the euro area had a trade surplus of €11.4 billion in goods with the rest of the world. This was a significant reduction from the €32.6 billion deficit reported in January 2023.
In January 2024, Euro exports to the rest of the world reached €225.9 billion, up 1.3% from €222.9 billion in January 2023.
Imports from the rest of the world totalled to €214.5 billion in January 2024, highlighting a decrease of 16.1% since January 2023 (€255.5 billion).
UK Trade and Investment Facts Uncovered
The government has published the trade and investment fact sheet summarising the latest statistics on trade and investment between the UK and individual overseas partners.
The factsheets offer statistics detailing trade relations between the UK and its partners, including exports, imports, and total trade.
They also cover trade by commodity and service type, regional trade within the UK for goods, UK market share for trading partners, VAT-registered businesses engaged in goods trade, foreign direct investment (FDI), as well as summary trade and investment data reported by each partner, and economic data and projections.
No longer Peachy
PEACH, the legacy IT system where traders submit pre-notifications for their plants and plant products, will be closing down from Monday 8 April 2024.
The current users of the PEACH system will no longer be able to log onto PEACH; therefore, it will not be possible to submit import pre-notifications using this system. Register for the IPAFFS system ahead of this date to create your import notifications. Learn more
Reflecting on Brexit: 5 Years Down Memory Lane
The Original Brexit was in March 2019. Can you believe it’s been 5 years already? Crikey! That said, it took some time to eventually kick off on 31st January 2020. With all the regulation uncertainties, traders faced great challenges during this time.
Five years on, let’s see how the customs industry coped with these changes.
2021: On 31 December 2021, the transition period ended with the full implementation of Brexit. New customs arrangements and regulations between the UK and the EU kicked in from January 2021.
Customs declarations also became mandatory for goods moving between the UK and the EU. The same applied for imports and exports in non-EU countries. This was a
2022: Custom Checks | Import VAT & Free Trade Agreements (FTAs) with Australia and New Zealand
To allow goods to move between the EU and the UK, customs rules were phased.
2023: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The UK continued to explore opportunities with international partners and the CPTPP agreement came about.
2024: Move towards Digitisation
There’s ongoing adaptation to navigate the customs landscape and the UK government may have invested in infrastructure and technology to streamline customs processes and offset disruptions at borders.
iCustoms is leading the move towards digitisation and is at the forefront of innovative technology to streamline trade and customs processes. Are you curious to see how we can help you? Get in touch
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