New Government Scheme Introduced For Northern Ireland
The existing UK Trader Scheme (UKTS) is now being replaced by the new UK Internal Market Scheme (UKIMS) as part of the new Windsor Framework arrangements for Northern Ireland.
The UKIMS will enable more businesses to benefit and will ensure that goods moved into Northern Ireland under the scheme are free of customs paperwork, checks and duties from September next year.
HMRC are encouraging traders to begin their UKIMS registration process NOW. From 30th September 2023, traders authorised under the new scheme will be able to move goods into Northern Ireland under expanded scheme criteria.
If you are currently authorised for UKTS then you may continue to use this scheme for moving goods into Northern Ireland. However, UKTS holders will NOT be automatically transferred to UKIMS, therefore you should apply sooner rather than later.
If you are NOT currently authorised for UKTS, then it may well be worth applying for UKIMS, as the previous criteria has changed and more companies will be able to qualify.
A large number of businesses are expected to be moving over to UKIMS, and HMRC are requesting that you take action before 31st July 2023, which should ensure they have enough time to complete enrolments prior to 30th September 2023.
UKIMS registered businesses will be able to use the ‘green lane’ into Northern Ireland, which comes into place in October 2024 under the Windsor agreement.
You can find more information and start your registration HERE.
Simarco Launch 442 Formation Video
Simarco have just launched our new social media video that offers an insight into some of the benefits of our DDP Regime 42 service for Exports to the European Union.
By using the DDP Regime 42 scheme, Simarco are able to improve EU customs efficiencies, and even reduce door to door transit times, for DDP export shipments moving to European Union countries.
Regime 42 allows for an intra-community supply of goods to another EU Member State. Under this scheme, we can present goods to our French partner to clear into EU free circulation at the time of arrival at the French border (Calais or Dunkirk). An intra-community supply is then made for the goods to the destination EU Member State (if located outside France).
The benefits include:
- Simarco can customs clear goods at the EU frontier SMART border (Calais or Dunkirk) and defer the payment of Import VAT, so no monies need to be exchanged. Should duty be incurred, this cost will be charged back to the GB exporter.
- This avoids delays in delivering goods, or waiting for consignees to pay Import VAT or duty before the release of goods at destination.
- Larger shipments can deliver directly on an international trailer, rather than transhipping via one of our partner hubs, by removing the barrier of customs clearance and/or payment delays at final destination.
Simarco are able to set these benefits up in as little as 2 days, but we do require some forms completed to do so:
- Power of Attorney (authorising our customs partner to fulfil the import formalities on your behalf in France).
- Fiscal Mandate (appointing our tax partner as your Tax Agent, who then register you for VAT in France and report the transactions to French Tax Authorities for VAT and Intrastat purposes).
- EU EORI Application (unless you already have an EORI).
- Regime 42 Process Document to be signed by the consignee. (If goods are for delivery outside of France, they need to sign this to confirm their understanding of the goods being cleared in France, but still need to enter the purchase into their records as usual).
Unfortunately, for French deliveries, the process of registering for VAT takes approximately 3 months. However, during this time, you can share your Tax Agents global VAT number and still use Regime 42 for DDP sales into all other EU countries.
Once set up, there will be specific requirements for the export commercial invoice and a need to provide the consignee with a copy of the customs entry, but Simarco will guide you through this process at the time.
If you would like to find out more about the above feature, then please do not hesitate to contact us.
New Requirements For NI Shipments
With immediate effect, all companies transporting goods from the UK to Northern Ireland are now required to have both a GB and XI EORI Number.
Unfortunately, Simarco are unable to accept bookings unless customers provide both numbers, since the government’s Trader Support Service (TSS) will no longer allow the movement of goods without them.
Previously, there had been an option to manually enter company address information, which is no longer available. Businesses transporting goods to Northern Ireland should be aware of the these requirements and take action should they not have the appropriate EORI numbers.
To comply, you can register for your GB and XI EORI numbers online at https://www.gov.uk/eori/apply-for-eori
Official help and guidance is available online at https://www.gov.uk/eori/eori-northern-ireland
If customers are unsure whether they comply with the newest requirements, then please do not hesitate to contact a member of the team for more information.
Government Delays Expected Import Controls
Jacob Rees-Mogg announced last week that the remaining import controls on EU goods will no longer be introduced this year, which includes those due to go live on 1st July 2022.
In a written statement, the Minister for Brexit Opportunities and Government Efficiency referred to the war in Ukraine, energy increases and the rise in cost of living as key factors for this decision, going on to suggest that this decision will save British businesses up to £1 billion in annual costs.
Rees-Mogg suggested that businesses can stop their preparations for July now. Instead, the government will set out their new regime of border import controls by publishing a Target Operating Model this Autumn, with any new procedures expected to go live at the end of 2023.
Import controls that have already been introduced will remain in place, but the following controls planned for introduction from July 2022 will not be introduced:
- A requirement for further Sanitary and Phytosanitary (SPS) checks on EU imports currently at destination to be moved to Border Control Post (BCP).
- A requirement for safety and security declarations on EU imports.
- A requirement for further health certification and SPS checks for EU imports.
- Prohibitions and restrictions on the import of chilled meats from the EU.
While this may be good news for importers, this news has angered many of the UK’s port operators. To support the government’s original plans, they have reportedly invested over £100 million in facilities as preparation for 1st July.
Port associations are seeking urgent engagement with the government, with some suggesting legal action to recover what they fear is now wasted time and costs to develop white elephants.