CHIEF is different, it's a customs systems. Reminder, as an EU member we didn't have customs borders with other EU states.
We've now introduced a new customs border so all movements to/from the EU need to be logged in CHIEF AS WELL AS other relevant systems.
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CHIEF isn't easy to use. Kudos to Daniel for managing to input directly into it. The additional software helps but yes, there is a cost involved. Or you can pay the broker.
Part of that extra admin cost we've been warning about for the last 5 years
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Another issue is that CHIEF will soon (ish) be replaced by CDS. A new version. So even if you learn how to deal with CHIEF now you'll soon need to re-learn on CDS.
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And yes, you have to claim the reduced tariff under the UK-EU deal. That's normal.
It's because this reduced tariff is only available for goods that meet rules of origin - which you have to demonstrate.
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All this, as well as the various codes and abbreviations you need to know to fill in a customs declaration, is totally normal. It's part of trading internationally. But that doesn't mean it's easy.
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@DanielLambert29's company was well prepared for 1 Jan. They've obtained all the registrations, stockpiled. Done as much as any business could have under the circumstances.
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But the natural consequence of having a new border is that things that used to be very simple, are now complex and require specialised knowledge. And are only possible provided that all the systems work and are updated.
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This🧵is an excellent example of how insanely complicated all this is from a business perspective. How it adds to everyone's workload which has to translate into increased costs. For the company and for the consumer.
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And again, the scary part is that this is an example of a company that's done well.
There are many businesses out there that are far, far behind and are yet to learn about all that.
/end
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I think most of the current "teething" problems are a direct result of the UK Gov CHOOSING NOT TO be clear about the new non-tariff barriers for the last 5 years.
These are niche issues but not that niche - it was a clear choice to pretend like they don't exist and focus on the sunny uplands.
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HMRC and DEFRA have done a fair job trying to communicate the upcoming changes in the second half of 2020 (perhaps the tone could have been more urgent).
But by then it was too late (plus everyone was pre-occupied with covid)
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First though, in the run-up to Jan, I was often asked about the likelihood of border distributions and kept pointing out the multitude of actors and processes involved. (Also how I start most of my presentations). Borders are complex!
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Everything needs to be synchronised. Especially since UK's border points are well... ports.
It's all obviously doable but it requires planning, synchronisation and coordination. And all this requires time.
So why is Shane saying the BOM is what UK Gov "hopes" will happen?
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The time to express concern over the range of new non-tariff barriers and be vocal about the fact what an FTA means for the private sector was when we opted for an FTA.
While NTBs may be a surprise for SMEs, MNCs must have known about a lot of these changes.
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This is simply not true. The fact that goods need to originate to be traded tariff-free under a tread deal is part of *checks notes* every single FTA out there.
Important to remember that trade deals (FTAs) weren't designed with such a high degree of economic integration in mind.
So some of the standard RoO provisions will seem incredibly restrictive under the UK-EU deal.
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Minimal operations or insufficient processing is a standard part of an FTA. Most, if not all FTAs, include a provision on minimal processing – processing not considered sufficient to confer originating status even if rules of origin have been met.
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Also probably worth pointing out that the UK Gov is hoping that these benefits will result from other, non-customs related, incentives and measures e.g. tax cuts and other simplifications.
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This is because customs-related benefits 1) are available under other, simpler procedures 2) would be extremely limited as per 👇analysis by @pholmes8