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UK maintains staged customs controls

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The Taxation (Cross-border Trade) (Miscellaneous Amendments) (EU Exit) (No 2) Regulations, SI 2021/1444 extend existing staged customs controls for goods that are in Ireland or Northern Ireland immediately before their importation into Great Britain.

This means that the import controls taking effect for EU-GB movements of goods from 1 January 2022 will not apply to such goods, ensuring existing processes are maintained while discussions continue between the UK and EU on the future of the Northern Ireland Protocol.

The regulations amend the Customs (Import Duty) (EU Exit) Regulations, SI 2018/1248 and the Customs and Excise Border Procedures (Miscellaneous Amendments) (EU Exit) (No 2) Regulations, SI 2021/1347 so that the transitional EIDR (Entry in the Declarant’s Records) simplified customs process provided for in the Import Regulations can continue to be used for Union goods that were in the Republic of Ireland or Northern Ireland ‘immediately before they were imported into the United Kingdom’.

In essence, this means businesses will be able to continue to use delayed customs declarations for non-controlled goods and pre-lodgement declarations will not be required for those goods.

The regulations also amend SI 2021/1347 and the Excise Duties (Miscellaneous Amendments) (EU Exit) (No 3) Regulations, SI 2019/474 so that the time at which excise duty is required to be paid continues to align with the notification procedures used for the arrival of excise goods into the UK.

Changes have also been made to make sure that VAT registered businesses using staged customs controls still have to account for import VAT as appropriate in the VAT return for the period in which the import takes place.

The changes have effect from 31 December 2021 or 1 January 2022 as necessary to ensure full customs controls do not automatically apply to goods arriving in GB from 1 January.

HMRC has released a Tax information and impact note explaining the effect of both new SIs.

The Customs Importation (Miscellaneous Provisions and Amendment) (EU Exit) (Amendment) Regulations, SI 2021/1442 maintain staged customs controls which allow goods moved from the Republic of Ireland or Northern Ireland to Great Britain to leave port without being released to free circulation. These regulations also came into force on 31 December 2021.

Issue: 1558
Categories: News