Recently HMRC have published guidance on changes to your Customs authorisation (s) from 2021 onwards. This has the potential to effect companies that have authorisations such as inward processing, outward processing, temporary admission, authorised use (also known as end use), customs warehousing & CFSP.
HMRC have put out the following information about Customs authorisation changes that may come into affect in 2021 as a result of Brexit:
Authorisations issued in the UK
If HMRC have authorised you to place goods into a customs special procedure in the UK, your authorisation will still be valid in the UK from 1 January 2021. You can carry on both:
– importing goods into the UK
– suspending customs duties and import VAT or in certain circumstances, relieving some or all of the customs duty
You’ll also be able to use your authorisation to import goods from the EU along with any you already import from non-EU countries.
Single authorisations issued in the UK to use in the EU
If HMRC have authorised you to place goods into a customs special procedure, including moving those goods into the EU, your authorisation will still be valid but in the UK only.
This means that you can carry on importing goods into the UK under the authorised procedure from 1 January 2021.
Current guidance issued by the EU is that authorisations for customs simplifications or procedures, such as customs warehousing, issued by the UK will no longer be valid in the EU from 1 January 2021.
Authorisations given by an EU customs authority
If you’re named on an authorisation issued by an EU customs authority to place goods into a customs special procedure in the UK, you will not be able to receive goods in the UK under that authorisation from 1 January 2021. For example, to import goods for processing from the EU whilst duty is suspended or relieved, you’ll need a separate authorisation from HMRC.
Where you’ve had goods under an authorisation from an EU customs authority, you’ll have 12 months from 1 January 2021 to discharge those goods from any customs special procedure.
You can do this by either:
– exporting the goods
– making a declaration into a UK customs special procedure
– putting goods into free circulation in the UK
Guarantees and special procedures
From 1 January 2021, in most cases you will not need a guarantee to cover your customs duty and import VAT to get full authorisation for:
– inward processing
– outward processing
– temporary admission
– authorised use (or end use)
– customs warehousing
HMRC will give 12 months’ notice before reintroducing guarantees.
If you’ve breached the terms of your special procedure authorisation, HMRC may ask you to give a guarantee.
You can carry on using HMRC-issued authorisations for transit simplifications, including authorised consignor and consignee status, from 1 January 2021.
If you act as an authorised consignor or consignee for your own business or on behalf of other businesses, you may wish to expand your capacity in order to deal with possible increase in demand.
Customs freight simplified procedures (CFSP)
If you’re already authorised by HMRC to use customs freight simplified procedures, from 1 January 2021 you’ll be able to use your authorisation to make simplified declarations for goods imported from the EU as well as from non-EU countries.
Using customs freight simplified procedures on behalf of others
If you’re authorised to use customs freight simplified procedures, from 1 January 2021, you can use the procedure on behalf of other businesses that are not authorised. If you do, you must make the declarations in your name and on behalf of the business you’re acting directly for.
You’ll be jointly and severally liable for any customs duty, excise duty or import VAT due.
A deferment account will be required as security and means of payment for actual debts. As an indirect representative you may use your own deferment account or the deferment account of your customer if they have given you permission to use it.
To guarantee your duty deferment account, you’ll be able to choose either a:
– customs comprehensive guarantee (CCG)
– financial guarantee from a bank or insurer
Authorised economic operator (AEO)
If you’re established in the UK and you already hold authorised economic operator status (issued by HMRC), your authorisation will be transferred automatically to the UK scheme.
This will be a new UK status and will replace your existing EU status for your UK customs operations. You’ll be issued with a new certificate and logo which you should use in place of any existing certificate and logo.
Guidance issued by the EU is that economic operator status authorisations issued by the UK will no longer be valid in the EU.
The new UK status will not apply to branches or permanent business establishments in EU member states. You may need to contact the member states directly to discuss making a separate application on behalf of these branches.
If you currently hold authorised economic operator status issued by an EU customs authority, which covers your customs operations in the UK, the UK will not recognise this and it will not secure the benefits of the status in the UK.