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this is a worrying omission. We have noted contradictions between


information provided in the Technical Notices and what we have been advised in meetings with HM Revenue & Customs (HMRC) and the Treasury; again poor wording makes the situation worse. For instance, reference is made to a UK EORI number; EORI numbers are an EU scheme which the UK currently has access to. It is unclear as to whether traders will use the EU system or whether the UK will create its own, replicating the functionality of the EU one. Ever since the referendum result was


announced on the 24 June 2016, BIFA has consistently expressed concerns regarding funding for the increased reference amounts for guarantees, etc. In the Notice regarding VAT, there is one very welcome piece of news, that if the UK leaves the EU without an agreement, the government will introduce postponed accounting for import VAT on goods brought into the UK. That will be good news for VAT registered traders; however non-registered traders and private individuals will still have to account for VAT at import.


Consignment relief Also, there are important references to not extending Low Value Consignment Relief (LVCR) for shipments arriving in the UK if there is no deal. This means that all goods entering the UK, unless zero-rated by their nature (such as children’s clothing), will be liable for VAT. For parcels valued up the £135, a technology-based solution will allow VAT to be collected from the overseas business selling into the UK. It is envisaged that this will have a significant impact on e-commerce. Despite the previously described issues, the


declarations are required, hauliers acting as a carrier will need to make or ensure that an Exit Summary Declaration (EXS) for exports and an Entry Summary Declaration (ENS) for imports has been submitted for goods moving between the UK and the EU. This is a considerable additional burden for the haulage industry. BIFA has a specific criticism of the documents


relative to freight forwarding and Customs brokerage activities. In the Technical Notice covering trading with the EU, it is stated: “A Customs broker, freight forwarder can advise in the event of a ‘no deal’ scenario whether one of these [Customs] procedures would be suitable for your business.” Similarly, in the Technical


October 2018


Paper covering tariff classification, it is stated: “The importer (or its agent) must use the guidance in the tariff to help decide the correct classification of their goods.”


Unclear wording On occasion within all the Notices the text is both imprecise and unclear, and bearing in mind that the documents are aimed at traders who are unfamiliar with international trade, could cause confusion. Whilst forwarders will in all probability render such assistance, they are not unpaid tax experts, nor are they formally qualified. The Technical Notices have failed to state that it is the importer who is responsible for correctly classifying its own goods;


Technical Notices are a useful reminder for businesses and carriers of the potential changes should the UK leave the EU without an agreement that provides the same advantages as the current model. In the worst case scenario, where the UK leaves with no deal in place, trade with the EU will be on a third-country basis. It is essential that the next guidance is much


better worded than the Technical Notices, and actually reflects our Members’ role, and that the responsibilities of all parties is accurately described. Effectively, the next set of guidance


documents must be written with the accuracy of a well written Public Notice, not a poorly worded Customs Information Paper. It must be remembered that Customs is a highly technical subject and dumbing it down in an attempt to make it seem easier than it is will not help anyone in the longer term.


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