Policy & Compliance
Reasons for concern over Customs measures in the Spring Budget 2023
Whilst the Customs function is becoming more complex and there is scope for improvement, BIFA believes that another Customs standard is not needed, with two already in place: Authorised Economic Operator (AEO) certi fi cation, and the Customs Competency Standard
O n 15 March, the Chancellor of the Exchequer announced his Budget which included an unusually large number of proposals regarding Customs. Some of these individual measures will be well received, but the package of measures must be viewed as a whole. The Budget should not be viewed in isolation, the freight forwarding/Customs agent sector has had to cope with significant recent changes stemming from the UK leaving the EU and the implementation of the Customs Declaration Service (CDS) for imports. In addition, our industry has had to deal with the negative impacts of COVID-19. Government would do well to remember that the success of these programmes was heavily dependent on the ability of the Customs agent/intermediary sector, plus CSPs and software companies, to deliver at a practical operational level. The measures announced in the Budget, are in addition to the following planned changes: CDS for exports, NCTS 5, ICS 2 and the Single Trade Window. The last programme is causing BIFA particular concern, mainly because of the lack of clear information coming from government on this subject. So, let us deal with the six specific measures outlined in the Budget, covering the Customs agenda, which were: • Simplifying Customs declarations requirement review, • Simplified Customs Declaration
Process improvements, • Consultation announcement; Introducing voluntary standards for Customs intermediaries, • Transit policy simplifications, • Modernising authorisations, • Changes to Customs guarantees for special procedures, temporary storage and duty deferment. Informal consultations HM Revenue & Customs (HMRC) has advised that, with the exception of the third mentioned item, all the consultations will be informal. The consultation on the voluntary standards for Customs intermediaries will commence during the summer of 2023. In conjunction with its Customs Policy Group, BIFA has already made some suggestions to HMRC regarding simplifying the data elements required for a full CDS entry. The other area being reviewed as part of this element of the review concerns the data to be included in a supplementary
declaration and extending the timeframe for its submission to the 10th day of the month following the initial submission. Many of the other suggested policies regarding modernising authorisations and changes to Customs guarantees for special procedures follow a direction of travel that commenced with the first version of the Border Operating Model. The consultation regarding voluntary standards for Customs intermediaries caught BIFA’s attention. This stems from research undertaken by government in 2022 in the sector. Whilst most responses from importers/exporters provided favourable feedback on the service they received, there were some negative comments. BIFA will respond to the consultation and also encourages its Members to do so. Whilst agreeing that there is some scope for improvement and that the Customs role is becoming more complex, BIFA believes that the industry does not need another
“ By making facilitations more widely available to the trader, there is the potential to diminish the importance of certain authorisations such as AEO
10 | May 2023
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