www.bifa.org
Policy & Compliance
BIFAlink
Establishment, authorisations and other no-deal Brexit changes
BIFA is urging Members to review their operations, their list of authorisations and customer databases in preparation for expected disruption following the EU Exit
While most traders understand that the fiscal frontier between the UK and the EU will change their operations as of the withdrawal day, BIFA would like to remind Members about some more specific changes that may affect them and their own or their customers’ legal position after Brexit. These changes are important and may impact Members in more than one way. The Taxation (Cross-Border Trade) Act 2018 and the Statutory Instruments (SI) will replace the Union Customs Code (UCC), and while there are still many questions to be answered and details to be added to the post-Brexit policies, certain changes have been confirmed and will come into force on Day 1.
Establishment The question of EU establishment underpins a wide array of EU policies ranging from customs representation to eligibility to use certain customs procedures. As of the withdrawal date, businesses established in the UK will cease to be considered EU traders and their status will be equal to that of other non-established traders from third countries, such as China or USA. Equally the EU establishment status will not
be recognised in the UK, which will put EU traders without UK establishment in the same category as the current rest-of-the-world businesses. Members should review their operations
accordingly and, in particular, focus on representation as they will only be allowed to use direct representation for UK-established clients. UK establishment will also now be required for a number of special procedures and also some of the Brexit easements, in particular the Transitional Simplified Procedures (TSP).
EORI One of the most obvious changes will apply to the Economic Operators Registration and Identification scheme (EORI) numbers. UK- issued EORI numbers will not be valid in the EU, despite the fact the name of the scheme will remain unchanged. The same will apply to EU-
October 2019
AEO Similar changes as applicable to special procedures will apply to the Authorised Economic Operators (AEO) authorisation. Businesses established in the UK, and already holding AEO status issued by HMRC, will have their authorisation transferred automatically to the new UK scheme after the UK leaves the EU. However, traders currently holding AEO status
issued by another EU customs authority which covers their customs operations in the UK, will not be recognised in the UK and will not be able to secure the benefits of AEO status in the UK after the UK leaves the EU without a deal. It is important to realise that although the
name of the authorisation will remain the same, the new scheme will be a new UK AEO programme and will replace the existing EU AEO status for traders’ UK customs operations. These traders will then receive their new AEO certificate and logo which should be used in place of any existing certificate and logo after the UK exits the EU. BIFA also understands the government’s intention is to obtain mutual recognition of corresponding schemes with the EU and other partners, but no details are available yet.
EORIs, which will not be recognised in the UK after the withdrawal date. HM Revenue & Customs (HMRC) is working to replace the current scheme but we are still to see an online tool making it possible to check validity of EORI numbers. We will update Members once such tool is available.
Special procedures The EU’s position on authorisations for special procedures granted by UK customs authorities has been very clear from the beginning, and by default, authorisations issued by UK authorities will not be valid as of the withdrawal date. As with many other post-Brexit policies, this is due to the fact that UK authorities will no longer be considered ‘competent EU customs authorities’. As is the case with establishment, all EU
issued authorisations for special procedures will no longer continue to be valid in the UK; businesses wishing to continue their operations will need to obtain a UK authorisation. Similarly, UK traders will need EU establishment to benefit from special procedures when operating within the territory of the EU.
Binding Tariff Information (BTI) and Binding Origin Information (BOI) Similarly to the previous authorisations, the BTI decisions already issued by the customs authorities of the UK will no longer be valid in the EU27 as of the withdrawal date. BIFA understands that currently issued BTIs will be recognised by the UK authorities until they expire or are revoked. It has also been communicated that when the UK leaves the EU without a deal, HMRC will replace the current BTI service with a new digital service for BTI applications, which will be available via
GOV.UK.
Conclusion It is clear that the above mentioned changes have the potential to affect many businesses currently trading with European partners or within the territory of the European Union in general. BIFA strongly advises Members to review their operations, the list of their authorisations and their customer database to ensure they are prepared for the expected disruption caused by the EU Exit.
9
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24
