EU Free Circulation Goods and T2 status

7 March 2019

In the case of a “hard” Brexit, would we be able to custom-clear goods into the UK within March 2019 (before 29 March 2019) and then still deliver them as EU Free Circulation Goods to our EU customers after 29 March 2019? I would think so, as the customs duty we will be paying before 29th is EU customs duty.

Carriers moving goods between the UK and the EU — Safety and Security Declarations

22 February 2019

I have read the information reproduced below that has been issued by HM Revenue & Customs (HMRC) and wonder if the safety and security declarations referred to are part of the standard customs declaration (Single Administrative Document (SAD)) or separate? Even though it refers to carriers, presumably they must be part of the SAD and therefore be completed by the customs agents, but I also understand that for sea freight shipments the shipping lines carriers’ complete.

Particularly in terms of our preparation for Brexit, how will this affect the supply chain (hauliers/brokers/forwarders). Any guidance would be appreciated.

Carriers moving goods between the UK and the EU — Safety and Security Declarations

After the UK leaves the EU, in the event of a ‘no deal’ scenario, carriers (for example, hauliers and train, vessel or aircraft operators) will need to make a safety and security declaration for goods moving between the UK and EU. There are two types of safety and security declarations: an Exit Summary Declaration (EXS) and an Entry Summary Declaration (ENS).

A carrier is generally required to submit an EXS to the customs authority of the country from which the consignment is being exported. For consignments exported from the UK the EXS generally forms part of the export declaration (a customs declaration).

A carrier is required to submit an ENS to the customs authority of the country that the consignment is entering.

Inward Processing (IP) relief to import goods from the USA

18 February 2019

In November 2017 my company was approved by HM Revenue & Customs (HMRC) to use IP relief to import goods from the USA to be used in the production of our finished product that is mainly exported outside the EU. In June 2018 our goods became subject to the retaliatory EU import customs duties adding 25% to the standard duty rate. As we import under IP we didn’t worry as this 25% was suspended along with the normal duty rate. I have just read an information paper published by HMRC that states IP cannot be used for goods imported from the USA. This will make our finished products very expensive, is it correct?

Imports under DAP terms — some questions

11 February 2019

I have a few questions relating to imports under Delivered At Place (DAP) UK airport terms. We are receiving imports under the DAP Incoterms® rules and the supplier’s agents are clearing the goods on our behalf — all we do is pay the VAT, the duty seems to be invoiced back to our suppliers. In these instances should we be asking for the C88 import declaration? How do we know who the importer is and whether the goods have been correctly declared? Should HM Revenue & Customs (HMRC) find a problem would we be liable?

Also, would the suppliers be importing under their own name or their agent’s names? We have been quoted for an import from China on a Delivered Duty Paid (DDP) basis — would this mean that the supplier will be the importer?

Penalty for failing to submit an Intrastat Supplementary Declaration on time

4 February 2019

I have always believed that there would be no penalty for having failed to submit an Intrastat Supplementary Declaration (SD) on time if you had a “reasonable excuse”. I’m now informed that, except for some very strict “events”, there is no such thing as “reasonable excuse”. Is that correct?

Which Incoterm® should I be using?

4 February 2019

Our sales department is confusing me — they like to quote Free Carrier (FCA) Seller’s Premises (a recent change from Ex Works (EXW)) but they then ask me to organise the freight and raise an invoice for these costs and send it to the customer. I don’t think this is right and believe they should move to Carriage Paid To (CPT) or Delivered At Place (DAP) Incoterms® rules. What is the best way to be doing this?

Turkish customer has requested an ATR Form but my goods don’t qualify for ATR — help!

24 January 2019

Our Turkish customer has requested an ATR Form, but the goods being imported into Turkey are actually being shipped from China on Cost, Insurance and Freight (CIF) Istanbul Incoterms® rules. As the goods do not originate in the EU or Turkey and are not already in free circulation, I do not think they can qualify for the ATR Movement Certificate. The complication is that the Turkish company is being invoiced by the UK-based company. It seems the Turkish company has not factored in the import duties. Do I need to confirm with the customer that it will have to pay customs duties at import?

Submitting Intrastat to HMRC — has the threshold value changed?

23 January 2019

My company submits Intra-Community Trade Statistics (Intrastat) to HMRC for goods we supply into the EU, but we don’t make these reports for goods we bring in from the EU. I know the threshold value for submitting these reports changes every year, but I can’t find where the 2019 have been reported. Has there been any change?