CBI @10am: Preparing for the end of transition: goods and customs

Speakers:

• Josh Hardie, Deputy Director-General, CBI
• Elly Paterson, Northern Ireland Stakeholder Engagement Lead, HMRC
• Daniel Burke, Partner, PwC
• Nicola Hetherington, Principal Policy Adviser, CBI
• Ceri Thomas, Editor and Partner, Tortoise Media (Chair)

Overview:

Josh Hardie 

• Understand how frustrating rolling deadlines are – right now 31st December is the only one that matters. 
• Some positive noise from Westminster and Brussels but caveat, that this narrative can ‘flip on a tweet’ and believe that the will to get a deal is there. 

• CBI is still pushing for a deal and maintaining clear message about the damage of no-deal and helping on business preparedness.  
• Please keep feeding in your insights and sending information through to our EU Transition Hub 

Nicola Hetherington 

• Customs and border most visible change we will see from 1st January.  

• Some of the things we do know:  

• For those importing goods from the EU to Great Britain (excl. Northern Ireland) we have the Border Operating Model report, a 200-page plan which will apply in the event of a deal or no-deal. This includes details on: 
• New import tariffs in the event of a no-deal. 
• Additional physical checks at the point of declaration for things like live animals and plants. 
• Further requirements for export safety and security declarations – new paperwork and administration. 

• From April – animal origin products e.g., meat and eggs will be subject to further checks, pre-notification, and physical checks. 
• From July – traders moving any goods will have to make full customs declarations at point of importation, full safety declarations, checks for animals, plants and their products and border control posts.  

• If there is no-deal we will see friction and delays at the borders here and the implementation of new tariffs and required documentations. 
• If there is a deal, zero tariffs and zero quotas for trade – would be hugely important for businesses. 
• On world trade – WTO rules rolled over to the UK. We now have a Mexican and Canadian trade agreement, looking to get this ratified before the end of the year.  

• Huge change in a couple of weeks regardless of the outcome of deal or no deal.   

Daniel Burke 

• The deal is just about tariffs and quotas, the border model is a consequence of us leaving the EU – which we’ve already done. If you are exporting to the EU, the full set of full customs procedures is coming into effect for you 31 December. If you are importing, it is a phased approach up until summer next year.  
• On business preparedness - a lot of confusion from their clients and the businesses they represent. Waiting for a deal or no-deal before acting. 

• Estimate 75% of firms are either not prepared or only a bit prepared for the changes, and reasons include, confusion, capacity (also dealing with Covid). Around 150,000-180,000 firms who have never traded outside of the EU are saying they are not currently compliant. 
• What they need to do: 

• Make sure you have approvals in place e.g., have an EORI number, talk to HMRC to get approvals to be able to move goods 
• Understand impacts for the goods they are moving, and the different requirements for these 
• Use a customs brokers – although there is currently a shortage. 

• Scale of the issue – currently there are 30million customs declarations that firms in the UK make that someone does for them. From January this will be 230 million declarations. We need more brokers to help with this.  

Elly Paterson 

• Resources for businesses are available via HMRC Clearance Hub 
• Northern Ireland Protocol – part of the withdrawal agreement which comes into effect at the end of the year – regardless of deal or no deal.  

• Means there are no processes and requirements for goods going into Northern Ireland from the rest of the UK. 
• Covers a number of areas: 

• Confirms no new export declarations for goods from Northern Ireland to Great Britain will be required. Will be ‘unfettered access’ and goods flow.  
• Exceptions – confirmed export declarations will be required from Northern Ireland to Great Britain under customs ‘special procedure’ or for goods which have a prohibition or restriction under Intl, convention. 14 types of goods e.g., endangered species, ozone depleting gases and rough diamonds. 

• Export Processes for goods ‘at risk’ of onward movement to the EU on entry to Northern Ireland: all goods entering NI from GB will need a customs declaration and if your goods are ‘at risk’ of entering the EU, you may need to pay further duties and the EU tariff will apply.  

• For goods not ‘at risk’, businesses can now apply for a UK Trader Scheme authorisation, allowing them to self-declare goods not ‘at risk’ of moving on to the EU after entering Northern Ireland.