Getting Ready for Brexit Webinar: Transitional Simplified Procedures

By | October 10, 2019


good morning Cath and good morning everybody
so welcome to our webinar on the transitional simplified procedures or as
we will refer them on this webinar is TSP if we have a look at the contents so
we’re going to cover today what they are and how to register and how to use them
the first stage of the import declaration the second stage of the
import declaration working out the input value of your goods what to do if you
have duties to pay and you can use TSP to import goods from the EU into the UK
and registering for TSP is free and easy to do so let’s find out a bit more
about TSP so under import rules for trading with the rest of the world goods
are not allowed to enter the UK until you’ve made a full imports declaration
and paid customs duty in full TSPs make it easier to import goods from the
EU by letting you delay when an import declaration is needed and you can
register for TSP if you have an EORI number that starts with GB are
established in the UK meaning that you’re a sole trader who’s resident in
the UK your company or partnership has a registered office in the UK your company
or partnership has a permanent place of business in the UK where they carry out
their business activities import goods from the EU into the UK including Goods
traveling through the EU from the rest of the world as long as they’ve
cleared the EU customs and you should not register if the only goods
you import are coming into the UK directly from outside of the EU
you choose to use a customs special procedure for your goods you’re acting
on behalf of the trader for example you’re a freight forwarder our records
show you have a consignment history of oh sorry a consistent history of
overdue tax returns unpaid tax or duties or your business is insolvent
and if you are a customs intermediary you cannot register on behalf of a
trader but can make declarations directly for a trader who is registered for TSP
and when you act as a as a direct representative of a trader registered
for TSP the trader will be solely liable for the customs debt and so you can
register for TSP online now we simply follow the on-screen prompts if you have
duties to pay you’ll also need to apply for a deferment accounts and we’ll cover
this in the webinar later okay so UK businesses must provide an EORI number that starts with GB a business name contact person details the
UK business address VAT registration number if it has one and if our records
show you have a consistent history of over due tax returns unpaid
tax or duties or if your business is in insolvent HMRC may refuse your TSP
application TSP will be available at any port or airport where goods are being
brought in from the EU and so we expect to keep TSP in place for more than a
year to give businesses time prepare to use the full customs processes and apply
to import from non EU countries it will be reviewed three to six months after it’s
been introduced to see how it’s working and you can start using TSP to import
goods from the EU once we’ve sent you a letter to confirm
your registration and after the UK leaves the EU with no deal the
information you’ll need to complete your import declaration includes your EORI
number your unique reference number for the consignments description of the
goods in the commodity code the quantity you’ve imported purchased and
available sales invoice numbers the customs value delivery details supplier
emails and serial numbers of any certificates or licenses and there are
two stages to making a declaration so how you complete your first stage would
depend on the type of goods that you import and which TSP you’ve opted to use
and there are two and we’ll explain that later first you’ll need to classify your
goods so you know which TSP to use if you classify your Goods correctly you’ll
get the right code to make sure your business will pay the correct
duties and import VAT charges you’ll know if Duty is suspended on any of your
goods know if any preferential duty rates can be applied find out whether
your goods need an import license decide whether to follow the controlled or
standard TSP procedures and you’ll need to follow different steps for these and
you can use a handy tool to look up the current commodity codes duty and VAT
rates on the Gov UK website so once you’ve classified your goods you’ll need
to check on Gov. UK to see whether your goods are TSP controlled goods or
TSP standard goods and then follow either the TSP controlled goods
procedure that’s for items where you must have a license to import them or their
excise goods like alcohol or tobacco which have additional duties on them or
the TSP standard goods procedure so if you import goods that are not listed on
the TSP controlled goods list on Gov. UK. If you’re importing
controlled or standard goods you could use the same controlled goods procedure
for both if you wish or use a procedure
appropriate for the type of goods you’re importing and if you’re using the TSP
controlled goods procedure you’ll need to make an import declaration by
submitting a simplified frontier declaration through HMRC’s customs
handling import/export Freight chief system and you can ask someone to
do this for you but it will remain your declaration then you need to decide how
you want to make a declaration and you can hire the service of a third party
such as a freight forwarder or a customs agents or you complete the customs
declaration yourself if you do use a third party you must supply them
with all the information to make the declaration intermediaries may be able
to offer other custom simplifications or procedures other than TSP that are
already authorised by HMRC and remember you are still liable for any duties and
tax payable and if you choose to make UK customs declarations yourself you’ll
need to buy specialist software that links to HMRC’s custom systems known as
chief and CDs request access to chief and CDS by purchasing a badge from a
customs community service provider that operates at the port you intend to
import and you can apply for a new training
grant to support your business and employees to make customs declarations
and you can find out more on Gov.UK by searching for customs declarations grants and you or your representative needs to make sure you’re controlled
goods are accompanied by a full supporting documentation such as at the
appropriate license then the detailed information you need to declare on an
NSFD depends on the type of goods you’re importing and you can find more
information in volume 3 part 3 of the UK tariff for completion rules for chief and if you import goods using the
standard goods procedure you’ll need to record the information about your goods
in your commercial records before the goods cross the border and arrive in the
UK update your commercial records with the dates and approximate time the goods
arrived in the UK and you make sure your records include details such as your
unique reference number for the consignment a description of the goods
the commodity codes the quantity imported purchase and sales invoice
numbers if available serial numbers of any certificates or licenses the customs
value delivery details supplier emails the date and
approximate time of the goods arrive in the UK ok then so there’s a lot of information for you
there to take in i’ll must pass back now to Cath for another poll so Cath its back to
you please ok lovely thanks Martin yeah our next polling question and the question is if you import goods from the EU have you
registered for transitional simplified procedures TSP and it’s just one option
on here please is it yes no not yet we’ll do at a later stage or I’m not planning
to register for TSP so as before if you take your votes had to see a percentage
of those votes coming through okay lovely voting really quickly for me
today so thank you up to 87 percent of you i’m just going to give you another moment
okay we’ve got up to 89 percent of your votes in there so thanks very much and
those are the results of the poll there okay so I’m gonna hide that poll and I’m
gonna hand you back over to Martin so back to you Martin thanks Cath and so we’ll move on then
So the second stage is where the supplementary declaration is submitted after the goods
have crossed the UK border this applies to all goods whether you use the
controlled or standard goods TSP and this ensures that correct customs and
excise duties are collected so you’ll need to send your supplementary
declarations by a specific time depending on the procedure that you used
so the control good procedure you must submit your declaration by the fourth
working day of the month following your Goods arrival into the UK the standard
good procedure with an option to delay so you have two options
so for imports in the first six months after the EU exits from the 31st
of October until the 30th of April you have until the fourth working day of
May 2022 to submit all supplementary declarations for that period for goods
you import on or after the first May 2020 your supplementary declarations will need to
be made on the fourth working day of the month following the goods arrival into
the UK so what you’ll need to provide is data
similar to a normal single administrative documents plus either the
acceptance date and time of the Associated
simplified frontier declaration or SFD or the date and time of entry of your
commercial records if you use the standard good procedure for TSP you must
provide HMRC with details of the value of goods you import and include it on your
customs declaration or as part of your entry in your records and you can work
out the value of goods you are importing by using one of six methods and you must
consider each in turn and use the first that applies to the goods that you are
importing method 1 the transaction value is likely to be the best one to use so
that may methods to work as the import value is the transaction value it’s
based on the price paid or payable by a buyer to sell for imported goods it
includes all payments made or to be made as a condition of sale of the imported
goods and can find details of the specific rules that apply in VAT notice 2-5-2 which also details the other methods of valuation so you’ll need to
provide evidence of the price paid with your import entry such as the seller’s
invoice Incoterms are a set of rules that define
the responsibility of sellers and buyers for the delivery of goods and
sales contracts CIF is a common incoterm so you may need to see on a an
invoice it means the seller is responsible for
all costs until the goods have been unloaded
at the named port of destination. CIF is an abbreviation of the charges added
together to give the CIF value so the cost of item plus insurance plus Freight
charges into the UK equals the CIF value. Okay so the duty is charged on CIF value,
here in the example the cost insurance Freight thousand pounds five percent
Duty is applied to the CIF value which is fifty pounds
VAT is charged onto the CIF value and customs duty costs is the thousand
pounds plus the fifty pounds which is one thousand and 50 pounds import VAT is
calculated at twenty percent CIF value plus the duty which is ten
thousand and fifty pounds times twenty percent which is 210
pounds and the total of the import charge VAT plus duty which the
210 pounds plus the 50 pounds which equals 260 pounds, and customs
procedure codes identify the customs and or excise regimes which goods are being
entered into and removed from CBC’s are made up of seven digits first two
digits identify the customs procedure applied for or the regime of the goods
are being enter so here’s two examples so for example one
the CPC code is four zero zero zero zero zero zero the first two digits mean the
procedure that the requested procedure so 40 is the goods declared to free
circulation procedure name the second two digits identify the previous customs
procedure applied for that’s regimes from which goods are being withdrawn and zero
zero equals none and the last three digits are National coding breakdown at
the headings to give more detail so this means our example of four zero zero zero
zero zero zero tells HMRC the goods are for home use and free circulation of
payments of or accounting for customs duty whether due to both free or
temporarily suspended from duty or whether or not a preferred rate of
duty is claimed and any other import charges, so another example, example 2
the CPC code is zero seven zero zero zero zero zero the first two digits mean
the requested procedure so zero seven is the goods declared to free circulation
with simultaneous entry of the goods of a warehouse procedure procedure name
second 2 digits identify the previous customer procedure applied for so the
regime from which the goods are being withdrawn and zero zero
again is none and the last three digits are National coding break down the
headings to give more detail so this means our example of zero
seven zero zero zero zero zero tells HMRC the goods are liable to excise duty
on importation into the UK be declared for warehousing in an excise warehouse
registered tobacco store or other registered premises so if you use a
third party to make your customs declaration then you provide clear and
full instructions to your freight forwarder obtain or retain a
copy of each import and export declaration make sure the details are
accurate because they’re your responsibility and check you’ve used the
correct procedures for all imports. Import VAT will be due on all goods
you import from the EU and the way this is collected will depend on if you’re currently VAT registered or not if you
are already registered for VAT and intend to use TSP to make your customs
declaration you must account for any import VAT
through your existing VAT returns this will not be possible if you’re not VAT
registered so we will provide further information on how you will need to
account for VAT closer to the date that we leave the EU. So if you have excise or customs duty to
pay you must have a duty deferment accounts to import goods using TSP this
is because HMRC will take your direct debit using with your deferment account. Any customs duty and import VAT unless
you are using the option to delay submitting your declaration will be
debited on the 15th day of the month after you import your goods or the next
working day if the 15th falls on a weekend or a bank holiday if you are
trading excise goods such as alcohol and tobacco any excise duties will be taken
on the 29th day of the month after your goods have been imported or the previous
working day if the 29th falls on a weekend or bank holiday and you can
check the tariffs on gov. uk to check whether he need to pay customs
duties on your goods you can also apply for a duty deferment account on
gov. UK for more information on importing from and exporting to the EU after
brexit you can call the cross government’s brexit imports and exports
helpline and that’s 0300 3301 331 and there’s also more help on that we give to you there’s lots of information out
there so there’s emails, there’s online guides, there’s YouTube videos, there’s gov.uk webpage there’s also HMRC online customer forum there is a Twitter
account and also there are some recorded webinars out there also to help
that’s all from me for now so I’ll just pass back to Cath, Cath is back to you, Okay lovely thanks very
much Martin so it looks like we’re going to finish early today so please stop
sending in questions now’s the time to download the question log onto your
device now Martin is going to show you an image on the screen again of the control
panel so if you’re on a smart device you can take screenshots of any questions
that you want to keep you can also download the handouts but don’t forget
you will receive a follow-up email with the links along with a recording of the
webinar today so that just leads me to say thank you to Martin for the
presentation and for the team in the background for answering the questions
and also for you for joining us on today’s webinar when the webinar closes
you will be directed to a survey and the team would appreciate it if you could
take the time to leave your comments but thanks for joining us for today
I’m going to go quiet now it’s whenever you to download that Q&A log and those
handouts

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