Trade Compliance News - May 2024
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Freya Jane
- Director of Customer's Success
Exporters Urged to make CDS migration as June Deadline Approaches
HMRC has recommended exporters migrate to the Customs Declaration Service (CDS) “as quickly as possible” ahead of a firm 4 June deadline.
Time is running out for exporters that have been advised to seek support to make the switch from the existing Customs Handling of Import and Export Freight (CHIEF) system.
The transition to CDS is expected to introduce a more streamlined and digital approach to customs declarations, ultimately improving efficiency. CDS provides businesses with a more user-friendly, streamlined system with greater functionality. It’s been running since 2018 for import declarations and more than 117 million customs declarations have already been submitted through CDS.
CHIEF ceased operations for importers on November 30, 2023, making the use of CDS mandatory for import declarations. While the migration process for exporters has faced delays, it officially began on March 4, providing a three-month window for traders to adapt before the June deadline.
HMRC has emphasised that limited exceptions to CDS usage will be granted after June 4, with readiness issues such as staff training or software concerns not considered acceptable grounds for further extension.
To facilitate the transition, the government has issued guidance for exporters, recommending the use of TDR and collaboration with software providers to ensure compatibility with CDS.
Government Unveils Plan to Boost UK Businesses
The UK government is taking a bold step to boost businesses. A new White Paper, leveraging Brexit freedoms, outlines a ten-point plan to rein in regulators and reduce burdensome red tape. This move aims to create a more business-friendly environment by raising the bar for introducing new regulations.
The principles will introduce a new rule that means new regulations can only be introduced when it is “absolutely necessary.
This marks the latest step in Government efforts to make regulations more effective and less burdensome for businesses – known as the Smarter Regulation Programme.
The Programme – which was launched just last year – has already introduced reforms saving 50 million hours of admin work per year for businesses, saving them an estimated £1 billion, which has been pumped back into the economy.
Global Trade Surges, Expected to Double This Year
Global trade growth is expected to more than double this year, propelled by easing inflation and a robust US economy, as indicated by international organisations.
The OECD, IMF, and World Trade Organization are all predicting a significant rebound in global trade flow this year, following a slowdown in 2023 attributed to increased prices and rising interest rates.
The OECD forecasts a 2.3% increase in global trade in goods and services for the current year, followed by a projected growth of 3.3% in 2025. This marks a notable acceleration compared to the 1% growth recorded last year.
Ireland Gains €700m from Brexit Customs Duties
Ireland has reaped €700m Brexit bonanza from customs duties as reported by The Guardian
Prior to Brexit, Britain benefited from customs-free exports to Ireland and the wider EU as a result of its membership in the single market and customs union.
New data from Ireland reveals a significant 90% surge in customs duty receipts between 2020 and 2021 coinciding with the implementation of Brexit. Notably, compared to 2019, receipts surged by 52% in 2021, followed by an 80% increase in 2022 and a 72% rise in 2023.
BTOM Checks Throw UK Flower Industry into Chaos
It’s a confusing time for many including the flower industry in the UK. Things are not as easy as they used to be after the government introduced physical checks on some food and plants from the EU.
Traders were surprised when they had to deal with more checks than anticipated and some lorries had been held for hours before being waved on without inspection.
The Department for the Environment, Food and Rural Affairs (Defra) said it would check 3% to 5% of shipments with “medium-risk” items like cut flowers. However, some flower sellers said all their trucks were stopped for checks.
Recently Defra insisted it was meeting this target, but some flower wholesalers said every one of their lorries had been pulled aside for checking. This caused problems for customers waiting for their flower deliveries, as the flowers were stuck at the new facility in Kent.
EU – New Zealand Trade Deal sees New Opportunities for EU exporters
EU businesses, producers and farmers can now tap into a range of fresh export opportunities with the EU-New Zealand trade agreement. The deal is expected to cut €140 million a year in duties for EU companies
Thanks to the EU-New Zealand trade agreement, trade between the two regions could grow by up to 30% over the next decade. This growth may result in EU exports increasing by as much as €4.5 billion each year, while EU investment in New Zealand could rise by up to 80%.
EU businesses, producers and farmers are now able to take advantage of new export opportunities with the entry into force of the EU-New Zealand trade agreement on 1st May:
- Zero tariffs on EU exports to New Zealand.
- A more open New Zealand services market in key sectors such as financial services, telecommunications, maritime transport and delivery services.
- Non-discriminatory treatment of EU investors in New Zealand.
- Improved access for EU companies to New Zealand government procurement contracts for goods, services, works and works concessions.
- A dedicated chapter to help small business exports.
- Significantly reduced compliance requirements and procedures.
UK Government Enhances Biosecurity Measures at Trade Border
Biosecurity measures have been beefed up as part of the second phase of the Border Target Operating Mode to ensure the safety of imported products and enhance biosecurity at the UK’s trade border.
Products which present a ‘medium’ risk to our biosecurity will now undergo identity and physical checks. The checks involve visual inspections and temperature readings of goods.
Additionally, ‘high risk’ goods are now checked at the border, where before they were checked at the destination.
These checks will help identify public health issues such as salmonella, and build on existing safeguarding measures which identify diseases like African Swine Fever, which is widespread in certain countries across Europe.
Reminder Alert 🔔
ICS2 Release 3 goes live on 3 June 2024
Economic operators carrying goods by sea, inland waterways, road and rail to the European Union, Norway, Switzerland, or Northern Ireland Will have to submit a complete Entry Summary Declaration (ENS) dataset to ICS2.
This includes postal and express carriers who transport goods using these modes of transport as well as other parties, such as logistic providers issuing transport documents to their clients, and in certain circumstances also final consignees established in the EU, will have to submit ENS data to ICS2.
Failure to comply with ICS2 requirements will result in delays and disruptions to exports to the EU from the rest of the world and to goods imported into the EU, and potentially, in accordance with Member State practice, fines and penalties for persons liable for submitting the Safety and Security data to ICS2.
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