It’s fair to say that Brexit has been a prolonged procedure, generating significant jargon to describe engaged concepts and mechanisms that will be critical components for trading with the EU after the 1st January 2021.

We review some of the most important Brexit abbreviations for traders and explain in simple and neutral terms what they mean. 

Because trade negotiations are still ongoing (and are likely to continue until the end of the transition period in December 2020), we will periodically update this glossary, on our dedicated Brexit site, with new Brexit jargon that comes into use.

Authorised Economic Operator (AEO)

• An internationally-recognised mark of quality that gives firms 'trusted trader' status. 
• AEO-C Customs Simplifications focuses on establishing internal quality management controls for customs compliance.
• AEO-S Safety & Security focuses on supply chain security measures.
• The EU and UK are expected to recognise each other’s AEO schemes in the post-Brexit trading environment
• After Brexit, AEO certification will become even more desirable as an internationally-recognised tool to keep cargo moving.

Customs Comprehensive Guarantee (CCG)

• Use a customs comprehensive guarantee to set up a deferment account to cover Customs Duty and import VAT when you regularly import goods.
• Customs comprehensive guarantee (CCG) to cover multiple customs debts.
• A guarantor is required to cover the customs comprehensive guarantee amount.

Customs Freight Simplified Procedures (CFSP)

• An electronic customs system for imported third country goods. 
• It allows faster release of goods at the frontier or inland, the use of simpler customs declarations and cashflow benefits.
• In order to qualify for use, the business or the agent must have access to the electronic recording system, have a unique trading reference number, have a good record of compliance and be able to use its duty deferment facility.
• From 1st January 2021 all traders (of non-controlled goods) will be able to declare imports using CFSP process for six months, but will need authorisation to continue use from 1st July 2021

Entry In Declarants Records (EIDR)

• From 1 January 2021 qualifying businesses will be able to make a simplified declaration (under CFSP) when their goods arrive at a UK or EU port or airport. 
• They can declare goods by entering them in their own records and sending other details to customs.
• EIDR records must contain up to 13 pieces of information*.
• From 1st January to 30th June 2021 traders have a rolling six month deadline to submit supplementary declarations to CHIEF.
• From 1st July 2021 you must submit your supplementary declaration no later than fourth working day following the month in which the goods were entered in your records.

Economic Operators Registration and Identification number (EORI)

• EORI number allows Customs to recognise the trader and is required to carry out custom activities in the European Union. 
• From 1 January 2021 you’ll need an EORI number to move goods between the UK and the EU.
• You’ll need an EU EORI number if your business will be making customs declarations or getting a customs decision in the EU.
• VAT registered UK businesses should have received an EORI directly.

Goods Vehicles Movement Service (GVMS)

The government’s new IT platform called the Goods Vehicle Movement Service, placing two possible models before port operators:

• A temporary storage model where goods are stored at frontiers for up to 90 days before being declared to customs.
• A pre-lodgement model, where goods arriving at ports will have already made a customs declaration. Under this model, trucks that arrive without clearance would be prevented from reaching ports. The GVMS supports this model for both imports and exports and to facilitate Transit movements.

The government asserts that the GVMS will, by July 2021, allow the UK to: 

• Enable declaration references to be linked together so that the person moving the goods only has to present a goods movement reference at the frontier to prove that their goods have pre-lodged all the necessary declarations.
• Allow the linking of the movement of the goods to declarations, enabling the automatic arrival / departure of goods in HMRC systems so that goods boarding on the EU side can be processed en-route.
• Automate the Office of Transit function, marking the entry of goods into the UK customs territory.
• Allow notification of the risking outcome of declarations in HMRC systems to be sent to the person in control of the goods by the time they physically arrive in the UK, so that they know where they need to proceed.

New Computerised Transit System (NCTS) 

• The NCTS allows you to submit and finalise your transit declarations by electronic means.
• The UK plans to implement changes to the NCTS in three phases to reflect the change in country status and to align the NCTS with the CTC (Common Transit Convention is used to move goods cross border between EU member states under customs control). The changes will include:

1. Removal of the requirement to submit Transports Internationaux Routiers movements to NCTS.
2. Manage guarantees within NCTS and reference the amount of goods in the declaration.
3. The mandatory inclusion of the Office of Transit field on the transit declaration.

Transit accompanying Document (TAD)

• Goods moving under the transit procedure must be accompanied by a TAD for presentation at destination or in case the goods are diverted, or there are any incidents during transit. 
• The TAD must be filled in either in written form, by hand, or printed out by a computerised system of the economic operator.
• If you are moving goods into or through the UK under the Common Transit Convention (CTC), you must present your TAD for scanning, and your Vehicle Registration Number before arrival of the goods into the UK – this will likely be at check-in to enable the Office of Transit function to be completed by HMRC.

*EIDR details of goods into your records need to include:

1. the commodity code
2. the customs procedure code
3. your declaration unique consignment reference - which is the main reference number that links declarations in the Customs Handling of Import and Export Freight (CHIEF) system
4. purchase and, if available, the sales invoice numbers
5. the date and time of entry in records - creating the tax point, which is used for working out VAT payments later
6. any temporary admission, Free Zone, warehousing or temporary storage stock account references
7. the Free Zone or warehouse approval number
8. a written description of the goods - so they are easy to identify
9. customs value
10. quantity of goods - for example, number of packages and items, net mass
11. details of licensing requirements and licence numbers
12. details of any supporting documents, including the serial numbers, where appropriate, needed before the goods can be released
13. details of the person you’re representing if you are making a declaration on behalf of someone else

New EU border controls come into force on the 1st January 2021 and while there will be ‘light-touch’ control for most imports initially, there will be significant impact on the unprepared and exporters will need to observe strict new export processes from the start, or their goods will not move.

For the first six months of 2020 HMRC will operate a simplified import customs clearance system and qualifying businesses will be able to make a simplified border declaration (under CFSP), with a rolling six month deadline to submit supplementary declarations to HMRC’s Customs Handling of Import and Export Freight (CHIEF) system.

It sounds simple and while it is tempting to assume that traders are automatically covered by this regime, only authorised bodies can submit simplified declarations.

You can appoint Metro to act as your broker and immediately access the benefits of the CFSP/EIDR regime for six months and transition seamlessly to the regime that follows on 1st July 2021.

Alternatively you’ll need to be authorised by HMRC for simplified declaration procedures (see criteria below), apply to access the CHIEF declaration system, install HMRC approved software and set up a duty deferment account for paying duty and VAT.

NOTE - Alternative regimes will apply to controlled and SPS goods. Contact us directly for more information.

For exports to the EU, full export and import controls will apply from the 1st January 2021, which means there’s no point in an export truck simply trying to enter Kent, because unless they are border ready and have a KAP (Kent Access Permit) the driver can expect a fine of around £300.

Appoint Metro as your Customs Broker and you don’t need to worry about the following (indicative export) process, that applies to a simple single border shipment from say GB to France.

1. Create commercial invoice and packing list and zero rates VAT as the goods are leaving the UK.
2. Exporting truck will require a TAD (transit accompanying document) authenticated at authorised premises prior to departure and complete SMART Freight portal to receive a KAP (Kent Access Permit).
3. EAD export declaration generates an EXS exit safety and security declaration.
4. MRN (Movement Reference Number) generated by EAD/EXS needs to be lodged on GVMS (Goods Vehicle Movement Service).
5. GVMS generates GMR (Goods Movement Reference).
6. GMR is given to driver (they will need this at the UK border).
7. French clearance route allocated as ferry crosses the channel with (1) pre-lodged FR import entry or (2) inland in FR.
8. FR importer arranges FR import entry (needs to be done at point 7 above if pre-lodged rather than transit).
9. ENS entry safety & security declaration required 2 hours before goods arrive in Calais.
10. FR importer pays FR import duty either directly to FR customs or to agent if agent deferment account used.
11. FR importer accounts for FR VAT either payable at border or through VAT accounting.

Transit documentation and guarantees will apply to movement across more than one EU border.

For further information please contact Jade Barrow or Andrew White who are leading our 2021 EU withdrawal Task Team. 

Metro has designed a range of Customs solutions to protect your supply chain from the impact of Brexit. Maintaining efficient import and export operations, while keeping you Customs compliant and maximising the cashflow benefits of HMRC’s ‘light-touch’ regimes.

Metro’s resources, skills and capabilities, means that we are well positioned to support your trade between the UK and the EU, no matter how large or complex your requirements may be.

We process customs clearances at all UK airports and sea ports, creating and submitting the declarations for thousands of shipments every week.

With our unique strategic partners we can offer fiscal and customs representation in every EU country, with the same capabilities, to provide continuity of service across Europe.

Our Brexit solutions are designed to give you flexibility of choice and scope to fit your needs; reducing costs, strengthening compliance and eradicating risks to your business.

Brexit Health-check

We review your responses to our simple questionnaire, to analyse the impact Brexit will have on your supply chain and show you how you can prepare to mitigate them, while maintaining operational efficiency and obtaining the maximum cashflow benefits offered by HMRC’s ‘light-touch’ import regime.

We show you all the areas of consequence, including relevant authorisations, Tariff classifications, VAT/Duty implications, beneficial Incoterms and reporting. We make sure that no questions are left unanswered.

Customs Broker

Simply complete our Letter of empowerment (‘power of attorney’) to appoint Metro as your Customs Broker, to manage all your inbound and outbound customs declarations, through one portal. 

We prepare your Customs master data, walk you through documentary and licence requirements and take the necessary steps to remove risks of disruptions to your UK/EU trade flows. To avoid disappointed customers and give you the exploit to exploit every European opportunity.

Metro systems are integrated with HMRC’s Customs Handling of Import and Export Freight (CHIEF), which means we can clear goods anywhere in the UK digitally, which is critical, as an estimated additional 200 million Customs declarations will follow Brexit.

In addition to preparing and submitting appropriate border declarations, Metro will also maintain your records in line with HMRC guidelines, to keep you compliant, while protecting your cashflow.

Brokerage and freight

Metro manage hundreds of multi-modal freight movements from within and outside of the EU every week, which means we are well used to working in the free trade area and crossing the Union’s hard-borders.

You can combine our market-leading European freight services with our pan-European Customs Brokerage, to create the most cost-effective, efficient and compliant supply chain solution.

With Metro’s multi award-winning cloud-based technology you will have complete real-time visibility of your physical supply chain and a total fiscal overview of your Customs situation, liabilities and monies owed across the UK and EU.

Digital

Metro work entirely digitally with many of the UK’s largest importers and exporters, integrating ERP, operational and tracking systems to provide seamless global transport solutions.

Metro is committed to extending the same digital capability and benefits to traders of all sizes and will work with customers to help them digitalise their supply chain documentation, with analogue to digital transfers and machine learning.

For further information please contact Jade Barrow or Andrew White who are leading our 2021 EU withdrawal Task Team. 

The end of the Transition Period with the European Union on 31st December 2020 provides the UK with the opportunity to design a future border that will deliver maximum benefit to the UK and new border processes that will need to be understood, if supply chains are to continue to run.

On the 22nd June 2020, the UK Government published a public consultation to invite businesses and industries to share ideas and evidence to help develop a 2025 UK Border Strategy. 

The goal is for this Strategy to transform the UK border into the world’s most effective and efficient by 2025. 

It is intended that the future border is designed with the user in mind, hence the request for trades’ views on what is required.

This consultation follows the publication of the Border Operating Model on Monday 13 July that set out how businesses and industry can prepare for the end of the Transition Period. 

Metro have a Brexit Task Force Team that have been constantly reviewing the UKs exit from the EU over the last two years and have developed a customs brokerage digital platform that will deliver reliable trading ability after the UKs full withdrawal 1st January 2021. 

The consultation is not seeking views on the end of the Transition Period or preparations for leaving the EU’s Custom’s Union and Single Market. Rather it seeks to look ahead to the future and explore what major transformations the UK needs to deliver over the long-term to deliver the world’s most effective border by 2025.

Details of the consultation can be viewed HERE

Recognising the very real need for traders to prepare for leaving the EU’s Custom’s Union and Single Market, HMRC has extended the deadline for international trading and customs training funding.

With many traders making customs declarations for the first time from the 1st January, it is vital that they understand the role this crucial area plays in international trade and how declarations are prepared and submitted.

The government has re-opened grant funding towards helping businesses train staff in understanding customs declarations and the critical support provided by freight forwarders like Metro. 

Applications are open until 30 June 2021 (or until all funding is allocated) and applicants must import from or export to the EU.

The limited funding is being used up quickly, so those interested in participating should apply sooner rather than later.

The grant provides up to 100% of the cost of training for employees, up to a limit of £1,500 per trainee.

The funding is being administered and can be applied for HERE

For further information on Metro’s  Brexit solution, please contact Grant Liddell or Andrew White to organise an immediate Health Check.