New year, new Brexit transport rules
From 1st January, new import rules come into effect, with potential for significant delay, disruption and cost for importers and exporters.
From 1st of January new import rules on EU goods entering Great Britain come into effect, with the potential for significant delay, disruption and cost for importers and exporters.
Importers
Guidance issued by HM Revenue and Customs confirms that the changes that came into force on 1 January 2022 for imports from the EU (except Ireland) to Great Britain include:
- full customs import declarations are needed for all goods at the time the importer or their courier/freight forwarder brings them into Great Britain (previously HMRC allowed for a 175-day delay on companies submitting customs declarations; from January 1, 2022, the ability to delay submissions will end)
- customs controls at all ports and other border locations
- importers may need a suppliers’ declaration proving the origin of their goods (either UK or EU) if they are using the zero tariffs agreed in the UK’s trade deal with the EU
- commodity codes, which are used to classify your goods for customs declarations, are changing.
Exporters
HMRC has also published information for exporters which outlines the technical processes for exporting goods from GB to the European Union from 1 January 2022.
A key message is that GB exporters need to ensure they identify the port through which their goods will leave GB – as the process to be followed will vary port-by-port.
Processes will vary depending on:
- whether the port is using government IT platform GVMS (Goods Vehicle Movement Service) or inventory linking systems
- whether export declarations are being lodged on CHIEF or CDS customs declaration systems.
HMRC has helpfully provided a list of ports using the Goods Vehicle Movement Service.
Changes to come
HMRC confirms that further changes will be introduced from July 2022, which will include:
- requirements for full safety and security declarations for all imports
- new requirements for Export Health Certificates
- requirements for Phytosanitary Certificates
- physical checks on sanitary and phytosanitary goods at Border Control Posts.
Certification and physical checks will be introduced for products of animal origin, animal by-products, plants and plant products in phases from July 2022.
- Phase 1 – 1 July: high-risk animal-by products, all regulated plants and plant products, all meats and meat products, high-risk foods not of animal origin
- Phase 2 – 1 September: dairy products
- Phase 3 – 1 November: all other regulated products of animal origin including composite and fish products
This will mean that for some products three separate checks will be needed;
- An electronic document check before the product starts its journey
- an identification check on the seal applied to the consignment prior to departure, and
- a third physical check when it arrives must all take place, with country of origin certificates, including from suppliers, if required.
Products affected are animal products, including meat, milk, eggs and honey, which must include a “Products of Animal Origin” certificate. Similarly, fruits, vegetables and flowers – and anything else plant-based – must also have a certificate of origin.
In July 2021 Marks and Spencer stated that it had been forced to employ 14 full-time vets, "simply ticking boxes and filling out forms", in order to certify its products for export to Northern Ireland where these requirements already apply.
Ports in a storm
HMRC has advised that checks on imported goods will be carried out at designated Border Control Posts (BCPs) or Control Points, potentially leading to far longer delays.
Not all GB ports have BCPs, and so for goods moving through Dover, Eurotunnel or Holyhead, the declarant will need to tell their haulier to present the goods at the nearest inland border facility.
For goods moving through Liverpool, Heysham, Milford Haven/Pembroke or Fishguard, the declarant will need to tell their haulier to present the goods at the port’s designated customs checking facility.
HMRC have recommended that exporters work with their haulier to understand what paperwork may be needed ahead of any physical inspection.
It is unclear how strictly the new border checks will be applied, with some commentators reporting a slow ramp up, but others suggesting that from January 1 HMRC will no longer be taking a relatively light touch approach to the enforcement of penalties for incorrect documentation.
Philip Rycroft, who was permanent secretary at the Department for Exiting the European Union (DExEU) between 2017 and 2019, has been widely quoted as suggesting many British businesses may decide it “is simply not worth the hassle” and “give up importing” as a result of the new rules.
If you need assistance with your compliance with new trade rules please contact Andrew Hopkin at Browne Jacobson
You may be interested in...
On-Demand
NSIA: the thorn in the side of M&A?
Press Release
Browne Jacobson collaborates with The GLAA and University of Nottingham to tackle modern slavery and human trafficking
Press Release
Law firm Browne Jacobson appointed to work alongside the Government Legal Department - the Department for Environment, Food & Rural Affairs
Legal Update
Public matters - February 2023
Legal Update
Procurement Bill debarment regime and ECHR issues
Published Article
Digital Twin Technologies: key legal contractual considerations
Guide
Public procurement: key facts and compliance considerations
Press Release
Browne Jacobson advise on disposal of Sella Controls to HIMA Group
Legal Update
Update on the Digital Services Act (“DSA”) – Important Dates and Deadlines Looming
Press Release
Browne Jacobson’s dealmakers advise leading door hardware supplier and manufacturer UAP on its acquisition of Maher London
Legal Update
Government publishes its proposals for expanding the Scope of the Network and Information Systems Regulations 2018
Legal Update
Public matters - January 2023
Press Release
Browne Jacobson advises Natural England on investigation of ‘first in its kind’ sentenced Devon farmer
Published Article
What are freeports and what benefits could they offer?
Published Article
Reaching Cloud Nine?
Legal Update
Biodiversity Net Gain: positive for nature and an opportunity for landowners
Press Release
Browne Jacobson advises Superscript on £45m Series B funding round to transform its SME insurtech offering
Published Article
Consumer duty part 3 - 'The drill-down' into the 'cross-cutting' rules
On-Demand
Automotive webinar - EV charging points: contractual and liability issues to be aware of
On-Demand
Automotive webinar - Grant Funding and Collaboration Agreements
In this session, we examined the legal framework around grant funded collaborations and discussed the key risks to be aware of, including IP ownership and compliance with grant terms.
On-Demand
Automotive webinar - Commercial Contracts
Guide
FAQs for startups
Below are some of the questions we are regularly asked by startups, covering a range of topic areas.
Press Release
International leading digital disruption expert joins Browne Jacobson
Published Article
How AI and technology can transform the healthcare sector
On-Demand
The UK's green agenda - the outcomes of COP27 and actions since COP26
Press Release - #BeingBrowneJacobson
Browne Jacobson helps the Civil Aviation Authority take off with its modernisation masterplan
Press Release
Law firm Browne Jacobson reveals strategic growth plan for new Dublin office
UK law firm Browne Jacobson, which opened its first overseas office in Dublin in September, has outlined its strategic plans to grow its legal team over the next four years.
Press Release
Bishopsgate and Browne Jacobson advise on US firm’s acquisition of Notts based tech services business Custard
Bishopsgate Corporate Finance and law firm Browne Jacobson have jointly advised on the acquisition of award-winning tech solutions business, Custard Technical Services by US managers services and cyber security provider, Thrive.
Press Release
Court of Appeal makes plea for legally enforceable arbitration for FRAND disputes
In the ongoing complex litigation between Optis Cellular Technology LLC and Apple Inc., the Court of Appeal ([2022] EWCA Civ 1411) has upheld the High Court’s findings that implementers of standard-essential patents (SEPs) cannot refuse to accept a FRAND license and continue activities in the meantime which constitute infringement: that party must commit to accept a court-determined license if it wishes to avoid an injunction.
Opinion
Logistics firm fined for multiple failings leading to asbestos exposure
Logistics company Eddie Stobart has been fined £133,000, after a series of failures which took place whilst excavation work was carried out, exposing its staff to asbestos.
Published Article
Consumer duty part 2 - 'The drill-down' into the 'cross-cutting' rules
This article is the second in a series to help firms take a practical approach to complying with the ‘cross-cutting rules’ within the new ‘Consumer Duty’ (CD) framework. The article summarises what it seems the Financial Conduct Authority (FCA) is seeking to achieve from the applicable rules (section 2 below) and potential complications arising from legal considerations (section 3).
Published Article
Bruce Willis AI and the problem with deepfakes
A deepfake of Bruce Willis is advertising Russian mobile phones. Many great artistic and metaphysical questions are raised by this performance. However, this article is going to look at the intellectual property law implications, from a UK perspective.
Opinion
Directors fined for unsafe removal of asbestos
Two directors of a construction company were fined after failing to ensure the safe removal of asbestos from a plot of land. On 14 and 15 November 2021, Directors Anthony Sumner and Neil Brown, of Waterbarn Limited were involved in the uncontrolled removal of asbestos material from a plot of land in Grasscroft, Oldham.
Opinion
Don't look down
An engineering company in Tyne and Wear was fined £20,000 after a worker fractured his pelvis and suffered internal injuries after falling through a petrol station forecourt canopy, whilst he was replacing the guttering.
Press Release
Browne Jacobson announces former Aston Martin Vice President as Non-Executive Director of its Manufacturing & Industrials sector
Law firm Browne Jacobson has appointed former Vice President and Chief Planning Officer (CPO) of Aston Martin Lagonda, Nikki Rimmington as its first Non-Executive Director (NED) of its Manufacturing & Industrials sector strategy board.
Legal Update
DSA approved: Targeted Advertising Rules explained
The Digital Services Act (the “DSA”) has today (27 October) been given the go-ahead by the EU Council and will enter into force by early 2024.
Press Release
Browne Jacobson corporate tech lawyers advise Agilico on significant acquisition of managed print services specialist
Browne Jacobson’s corporate technology dealmakers have advised Agilico, a workplace technology business, on its acquisition of Capital Document Solutions Limited for an undisclosed amount.
Opinion
HSE inspection of asbestos in schools
The Health and Safety Executive (HSE) have announced they will be carrying out a programme of inspections to primary and secondary school establishments from September 2022. The inspections will assess how schools are managing the risks from asbestos and meeting the Duty to Manage requirements, set out in Regulation 4 of the Control of Asbestos Regulations 2012.
Opinion
Procurement Bill — what’s new in 2022?
The Procurement Bill (the Bill) has now been with us for about four months, during which time there have been a huge number of amendments proposed in the House of Lords (circa 320). Lately, there has been less mention of it — unsurprising, really, given everything else going on in politics recently — but here’s a summary of some of the key issues and themes so far.
Published Article
Consumer duty part 1 - 'The drill-down' into the 'cross-cutting' rules
This article is the first in a series aimed to help firms get to grips on a practical basis with the ‘cross-cutting rules’ within the new ‘Consumer Duty’ framework.