With the UK's Transition Period ending 31 December 2020, the BPF has compiled some Frequently Asked Questions (FAQs) on Brexit for members.

Frequently Asked Questions

1. Can you definitely apply for Inward/Outward Processing Relief (IPR/OPR) now? Yes you can apply now, there is no requirement to wait until January 2021. The process can take 2 months and it is recommended to apply as soon as possible to avoid delays.
    
2. Is there a way to fast track Inward/Outward Processing Relief (IPR/OPR) applications in the event of heading for a no deal Brexit? Applications can be a 2-month process and it is hard for businesses to make a decision on applying when they don’t know whether we're heading for a hard or soft Brexit – due to admin and costs, they don’t necessarily want to apply for something they don’t need, or find themselves applying late for something they need. HMRC are working to speed up customs comprehensive guarantee (CCG) applications (which businesses need to apply for alongside joining other procedures such as IPR/OPR) – therefore despite there not being a mechanism to fasttrack applications, Government believe it’s more a case of resource availability and hopefully you’ll see with the CCG that they’re stepping this up.
    
3. Under Inward/Outward Processing Relief (IPR/OPR), is it possible in certain circumstances for the landed cost declaration to be waived? E.g. if you’re a distributor importing duty-bound material on behalf of a customer, there are commercial implications and wanted to know if in these circumstances something can be done? – Customs forms will always have customs value on them and this won’t change; Government are aware that before Brexit, people have been able to not declare goods and this scenario therefore hasn't arisen. Whether your customer see the customs declartion depends on the commercial terms you've agreed. The freight forwarder/haulier and HMRC will see the declaration but the customer doesn’t necessarily need to see it.
    
4. If you import materials using IPR but then were to lose the export order and the material/product subsequently isn’t exported, what’s the process and would you then need to pay the import duties and how so? Principle is simply that under IPR there is a length of time you can hold on to materials, or put them into a customs warehouse. If you were to put materials onto the UK market you actually make a customs declaration then so you’d end up paying through that mechanism.
    
5. VAT deferment: the amount you get from your VAT deferment account is based on historical trading, however at the moment we’re trading with EU VAT free. Therefore with changes going to happen the total amount cannot be based on last year’s as it’ll have to include what was previously not included in the account (i.e. the VAT free trade with the EU). Is there a workaround here? We are leaving the EU's VAT Customs Union regardless of the deal so this is a key issue for our sector. Government are looking into it and hopefully will update soon. 
    
6. What is the Export Process after Brexit? UK-based business sending goods from the UK will have to complete a UK customs export declaration after the end of the transition period. Most RoW declarations are currently submitted by an intermediary, such as a customs agent. Alternatively, exporters can submit declarations through the National Export System (NES) or by using commercial software. The simplest guide to start with on the UK side of exporting is here: https://www.gov.uk/prepare-to-export-from-great-britain-from-january-2021                                                                                                                                                                                                                        
7. What is the latest information on Rules of Origin? There are two types of Rules of Origin: non-preferential and preferential. Non-preferential are the criteria used to establish what the customs country of origin of a good should be (what goes on declarations and establishes statistics, treatment of goods for trade remedies etc.). This is only an issue when countries demand certificates but the EU does not demand certificates so there are no new issues here. The preferential rules are what govern tariff-free access within a Free Trade Agreement. The UK and EU do not have a final agreement on what the rules are (they differ between different trade agreements). For specific trade flows please contact your BPF Executive and they will put you in touch with BEIS. For existing Free Trade Agreements, information is available on the individual country page: https://www.gov.uk/guidance/uk-trade-agreements-with-non-eu-countries                                                                                                                       

8. Are health or sanitary certificates obligatory for packaging products? A declaration of compliance (DoC) is needed to accompany a food contact material that has special measures in place (for example, plastic and ceramic food contact materials). This is a requirement for the UK and the EU.  Although a DoC is not mandatory for all materials, it is possible that some countries will want to take extra pre-caution, particularly when importing from third countries, and scrutinise the available documentation to ensure that it meets the necessary standards. In these cases, they will refer to the main requirements on food contact materials (which are covered in Regulation 1935/2004 https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32004R1935) and any appropriate industry guidance available for that material. Further details and direct links to the specific regulations can be obtained from https://www.food.gov.uk/business-guidance/food-contact-materials.

9. What is the latest information on Northern Ireland guidance?

• ​A new collection page with information on the Protocol and moving goods in one place: https://www.gov.uk/government/collections/moving-goods-into-out-of-or-through-northern-ireland-from-1-january-2021

• Guidance on whether goods moving from GB to NI may be ‘at risk’ of having EU tariffs applied (of course, if an FTA is agreed, this will be different for originating products): https://www.gov.uk/guidance/check-if-you-can-declare-goods-you-bring-into-northern-ireland-not-at-risk-of-moving-to-the-eu-from-1-january-2021

• New UK trader scheme to allow eligible NI businesses to prove goods moving from GB to NI re not ‘at risk’ of entering EIRE/the EU and so avoid tariffs: https://www.gov.uk/guidance/apply-for-authorisation-for-the-uk-trader-scheme-if-you-bring-goods-into-northern-ireland-from-1-january-2021