The option to defer customs declarations for 6 months has been extended until 2022.
IMPORTANT - for goods imported until now declarations will still be due in July. But e.g. declarations for goods imported in July can be submitted in Jan 2022
4/ Safety and security declarations, also known as summary entry declarations or pre-notifications have also been postponed. These are the ones submitted by the carrier or shipper.
5/ On SPS (in green) the extension is pretty much across the board. Delays in introducing:
6/ If you're importing from the EU make sure to check which of these apply to you and remember that on the customs side it's these simplifications don't "add up" - you can defer customs declarations for up to 6 months, not 12
7/ Now, why is this happening?
Here’s one of the first articles on this. Industry calls on the Gov to postpone the implementation of phase 2 as "no one is ready”
8/
- EU growers, transporters and exporters not ready to comply with documentary requirements
- Uncertainty around UK’s new IPAFFS system for SPS goods
- The UK not ready to inspect and controls these shipments
Quotes 👇
9/ Wasn't just calls from the industry. Port operators have also voiced their concerns.
Part of it is a result of last-minute planning for the biggest change to our trade regime in decades.
As I and the entire Trade Twitter have said (repeatedly), you don’t introduce changes like that overnight.
12/ New infrastructure takes time, IT systems need to be tested. Most importantly all traders (across the supply chain) need time to 1) understand the changes 2) adjust to them.
And yes we head 5 years but we spent that time discussing politics and arguing not getting ready.
13/ Of course, none of it is new. We knew we weren’t ready months ago (@vivamjm).
Probably worth mentioning that an implementation period was requested by almost every single business association, industry body and all of the devolved administrations.
14/ So the fact that it turns out it was actually badly needed shouldn't be a surprise to anyone.
But while the implementation period would have had to be agreed with the EU, this is a unilateral decision of the UK Gov.
15/ It doesn't give us easements both ways but is fully and totally withing UK Gov's control which apparently makes all the difference.
There is one more question here:
16/ How much of this is not being ready to implement the necessary controls vs not being ready to deal with the unavoidable consequences of Brexit and being a third country?
17/ In practice it really doesn't matter now, this was the right move given the state of things.
However, it does seem a bit like an attempt to have your cake and eat it... Leave the EU and implement a border and then try to mitigate it as much as possible unilaterally
18/ What's left now is to ensure that this extra time is used well. That efforts are intensified on all fronts. There is still so much to do in terms of helping businesses to understand their role and responsibilities. /ends
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Was tempted to ignore this. First of all not sure how I feel about Gov posting "ad features". I come from a country where we had a lot of that under the previous regime (and the current one) and not sure I would recommend it.
I love how one of the examples talks about how easy it was to import into the UK (all you need is an EORI and changes to invoices) when UK controls have not yet been introduced. Yes, of course, there were not delays!
Let's touch base in July
/2
Also, the article, like the Gov Brexit campaign, fails to mention rules of origin. And if these companies are not affected by rules of origin (solely import EU made goods for the UK market - excluding NI) these are exceptions.
It's normal export, import procedures. We have them too. So do other countries. When we export to these other markets where growth comes from (SIC) they will still need to be met. Paperwork will still be needed.
Every international cross-border transaction involves a tone of paperwork as you need to make sure you meet all of the requirements at the country of import (as well as some in your own country).
/2
It's not the EU being unreasonable. It's like expecting the US to drop all of their regulatory requirements for us cause you know, we have that special relationship... Not going to happen.
/3
If you're still confused about what's going on with the fishing industry, or food and drink sector in general and way it's all so important there were three Select Committee hearings this Thu worth watching
/1
First stop, the Scottish Parliament. A really important session.
TL:DR - if nothing is done, some of these businesses won't exist in a few months.
Next up, the Scottish Affairs Committee session on Fisheries and Scotland. The second session of the day with @scotfoodjames who I really enjoy listening to.
It won't be the first FTA signed for political/strategic reasons without serious, tangible economic benefits. Trade deals are signed for a number of different reasons. It's normal.
It's also normal for countries to try to create hype around trade negotiations - especially is they are literally desperate for some good news which with the double impact of covid and Brexit we currently are.
/2
Finally, it is also absolutely normal for FTAs to have a limited impact on GDP.
The overall potential (in most cases wishful thinking) is one thing, utilisation rates of trade deals often tell a different story.
/3
I fully appreciate that hearing that DIT advises UK companies to set up in the EU is shocking. It really isn't good PR given that one of the goals of Brexit was to avoid red tape.
But there really isn't anything particularly unusual about it.
Think of it this way
/1
A UK company is exporting to Vietnam and the supply chain becomes more complicated over time, more integrated. The company no longer only exports but moves parts back and forth, perhaps has a sister company in Vietnam that it purchases from but still invoices via the UK
/2
That part of the business is big enough to be crucial for the company. At some point, it will consider setting up a presence in Vietnam to avoid non-tariff measures and simplify the process.
/3
Love being quoted just based on my tweets (especially the sarcastic ones). Thanks Express.
So let's unpack this. Should companies be setting shop in the EU?
/1
Some- yes.
It's all about what the company does, where it brings goods from, what happens to the goods in the UK and where they're sold to.
/2
In some cases, you'd have double or triple duties after bringing goods into the UK. Rules or origin might be an issue (Percy Pigs). And then there is VAT and cases where you might need a representative in the EU country and loss of triangulation.
/3