The Institute of Export & International Trade is alerting its members to the possibility that their existing customs authorisations may change from 1 January 2021 – the scheduled first day of full, post-transition Brexit.
Customs authorisations, which simplify the processes involved in importing and exporting, are used by companies to improve their cash flow and manage their supply chains in the most effective manner possible.
These authorisations cover:
- Inward processing
- Outward processing
- Temporary admission
- Authorised use (also known as ‘end use’)
- Customs warehousing
A recent statement from HMRC said that “some decisions about the [customs authorisations] arrangements for 1 January 2021 have yet to be made”.
In the meantime, the IOE&IT continues to provide training courses, online masterclasses and surgeries with essential guidance on the benefits of these authorisations. It will continue to assist businesses in explaining and supporting your applications for these authorisations.
Interpreting the HMRC announcement
The recent announcement from HMRC indicates that businesses should check whether their current authorisations will still apply from 1 January 2021.
Kevin Shakespeare, the IOE&IT’s director of stakeholder engagement, said:
“It is a fact that at the end of the transition period (31 December 2020), the UK has more flexibility to interpret the EU’s Union Customs Code, which could create flexibility in application and processes of these authorisations.
“This could, in turn, support a number of businesses in their importing, production and re-exporting processes.
Shakespeare added that the IOE&IT would continue to support members in “explaining the importance of customs authorisations and how members can establish best practice in your exporting, importing and supply chain processes”.
The IOE&IT “will ensure all our members and the wider UK business community are kept to date and provided with clear explanations,” he said.
