Simplified Customs Procedures

Simplified Customs Procedures As at 1 January 2021, the UK Government has announced a six-month period in which businesses can delay submitting a customs declaration and defer paying any relevant customs duty for up to six months. This light-touch approach, has arisen to assist business in transitioning to full customs formalities when dealing with E.U. importations.

To simplify customs procedures, the UK government has introduced a phased approach for imports into the UK. UK importers will have the opportunity to enter non-controlled goods under the so-called Customs Freight Simplified Procedure (CFSP), which offsets the need for a full frontier declaration until 30 June 2021.

Also, traders will be able to utilise the postponed VAT mechanism, operating on a similar basis to reverse charge for E.U. trade pre-Brexit.

Simplified Declaration The simplified customs procedure (S.C.P.) considers several aspects of simplification enabling traders to present goods and relevant declarations when goods arrive at a U.K. or E.U. port or airport.

In order to use the simplified declaration procedures, authorisation will be required. Simplified declarations cannot be used if goods are entered into a special procedure using authorisation by declaration.

Form C&E48 needs to be completed should a trader wish to apply for authorisation to use simplified declarations, In support of the application, it is necessary to provide:   

written procedures list of Customs Procedure Codes and Commodity Codes client list (applying to be either or both an authorised direct representative or an authorised indirect Representative)

The simplified customs declaration for imports is a two-step process:  The simplified declaration, containing the minimum required data elements is lodged by the economic operator.  The supplementary declaration, containing the remaining required data is lodged after the goods have been released. Although there may be situations where the supplementary declaration could be waived.

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Simplified Declaration Procedure (S.D.P.) allows a trader to enter goods to a customs procedure without the need to provide a full customs declaration at the point of release. Further it removes the requirement for a supplementary declaration when entering goods to low-value imports (LVBI replacement) or OSR SDP can be used to enter goods to:          

Free circulation Customs warehousing Inward Processing Outward Processing End use Temporary admission Export Re-export Low-value import procedures (LVBI replacement) Onward Supply Relief on removal from customs warehousing

Inward Processing (IP) The payment of duties / import VAT is suspended/not pay on imported goods while processing is occurring and re-exported Outward Processing (OP) This allows the temporary export of goods for processing or repair and the reimport of processed products while retaining domestic status / with partial relief from duties.

Warehouse Goods not in free circulation can be stored in a customs warehouse without payment of customs duty, excise duty or import VAT. Warehousing gives the flexibility and ability to defer costs and assist cash flow as well as ensuring compliance with complex and ever-changing import and export regulations.

Temporary Admission of Goods Authorises the import of goods with total or partial duty relief because of the specific use for the goods.

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End use Reduced or zero rates of duty applied on select goods, provided they are put to a prescribed end use.

Legal disclaimer This summary is for information purposes only. It provides only an overview and no action should be taken without seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this summary can be accepted by the author or the firm.

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