Customs update, December 2023

Unusually in the customs world, there hasn’t been a massive amount of breaking news to catch up on in the last couple of months, but all is not what it seems. HMRC is preparing some huge updates to several systems, most of which are due to be launched in January 2024, so businesses must be prepared for the upcoming changes.

First and foremost, the much anticipated/dreaded introduction of the border Target Operating Model (TOM) is due to come into force in January 2024 and will affect any goods with Sanitary or phytosanitary (SPS) controls. We reported on the upcoming changes in the last newsletter, but traders must start to prepare. Additional documentation will be needed for a lot of goods containing ingredients of animal origin, as well as live plants and animals.

The way to declare SPS goods has also changed in the last couple of weeks, with additional codes being launched by HMRC to compliantly declare goods on import declarations. This primarily affects customs agents but does also affect traders, especially if your goods are not correctly declared on declarations. It is strongly advised that traders review the codes being used on their declaration, not only to meet the requirements for SPS goods but also in preparation for the generic waiver code (999L) being removed from use at the end of January 2024. If you need advice with SPS compliance, please contact us.

Another sector which may face changes in the coming months is excise. HMRC are planning to make significant changes to the Excise Movement and Control System (EMCS) to prepare for EMCS to be upgraded to Operating System (OS) 4.1 from the current OS of 4.0. Current details of the changes are scant, but the industry is worried that traders will need to rely on the fall-back service for the first quarter of 2024, as software developers have not been given enough time to implement the changes to EMCS.

Steve Bartlett, Chairman of the Association of Freight Software Suppliers (AFSS), is warning of a "very high risk of disruption" in January for Traders using the EMCS as HMRC attempt to deploy a major change that is incomplete and will not be ready in time".

As Business West’s Customs Agent, I have several years experience working within the food & drinks industry. I am happy to discuss any queries relating to excise or SPS controls if you have any concerns or queries about the upcoming changes that are looming.

Finally, a quick note on Rules of Origin, and how important it is to keep track of products entering your supply chain.Additional controls were enforced last month against Russian iron and steel, which has had a knock-on effect on companies in the UK. 

Companies which import iron/steel that falls under headings 72 or 73 will need to be especially diligent, as there will be additional scrutineering, and your imports may be inspected or even detained. Evidence will need to be on hand to prove that no Russian-produced goods are entering your supply chain. If possible, it is advised to try and obtain Mill Test Certificates alongside other standard trade documentation.

We have recently worked with several companies assisting them on Rules of Origin, as well as guidance on the recent wave of Russian sanctions. Should you require any assistance, please email the Chamber Customs team to see how we can help.