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UK Government’s Customs Package in Spring Budget 2023: new (or improved) Customs processes

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Yesterday (15 March 2023), the Government announced its Spring Budget 2023, which included some long awaited changes to the current Customs regime (“Customs Package“). Broadly, the announcements capture improvements following the Government’s 2022 Call for Evidence on an independent Customs regime. Many of the changes have been anticipated by businesses (such as the Advance Valuation Rulings mechanism which we have blogged about separately today as well). A summary of these changes is set out below:

Simplified Customs Declaration Process (“SCDP”) improvements:

  • Allowing for one aggregate supplementary declaration to be submitted for goods imported over the course of a month, reducing the total number of declarations that have to be submitted.
  • Modest increase in the amount of time allowed for the submission of supplementary declarations (from the fourth working day to the 10th calendar day of the month) and final supplementary declarations (from the fourth working day to the 11th calendar day of the month) for imports and exports (in the case of exports where it relates to more than one consignment of goods).

Transit simplifications improvements:

  • Planned measures to simplify inbound and outbound transit facilitation and proposals are under development based on user feedback. These will include modernising processes for authorised consignees (inbound) and reducing costs for authorised consignors by making a 100% guarantee waiver the default position during the authorisation process (outbound).
  • Informal engagement with industry on these proposals will take place in Summer 2023.

Modernising Authorisations

  • Streamlining and digitisation of customs and excise authorisation processes. A new self-serve portal will allow businesses to apply for and manage authorisations.
  • The existing 42 different authorisations will be divided into 5 new authorisation groups: Authorised Economic Operator (AEO), Fiscal, Simplifications and Declarations, Transit, and Ports and Wharves. An Excise group will be added. Under the new system, traders will only have to make a single application to access all the facilitations within the group.
  • Informal engagement with industry for the next phase of this project starts in March and delivery is targeted for the second half of 2023.

Changes Further in the Future

Changes to Customs Guarantees for Special Procedures, Temporary Storage and Duty Deferment

  • The Government is considering potential changes to enable more traders to be authorised to use certain customs facilitations without a financial guarantee, in a move designed to benefit SMEs.

Review on Simplifying Customs Declarations Requirements

  • The Government is reviewing the customs declaration requirements to assess the scope for simplification of both simplified and standard declarations for imports and exports, with a particular focus on export declarations and minimising the burden on small businesses.

If you’re interested in receiving updates on the implementation of these measures please get in touch with a member of the team.

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Author

Jennifer Revis is a partner in Baker McKenzie's London office and co-leads our EMEA Customs Team.
Jennifer focuses her practice on the public regulation of international trade, particularly in a wide range of customs compliance issues. She regularly advises clients on import matters, including customs valuation, rules of origin, and classification. She has worked with clients designing and implementing their compliance programs, policies, procedures and risk assessments, and assisting them in customs audits. She has significant experience in managing global customs projects and disputes, particularly in the area of customs valuation (transfer pricing; assists; royalties). Jennifer also advises on FTAs and trade remedies matters.
Jennifer has been consistently recognised as a "Leading Individual" for Customs & Excise and “Next Generation Partner” for Trade, WTO Anti-Dumping And Customs. Clients describe her as "an outstanding customs lawyer and litigator with fantastic experience. She is also easy to work with and leads her team with aplomb", "without a doubt, one of the best customs lawyers in the business (…) with an exceptionally deep knowledge of customs valuation concepts, as well as considerable experience applying those concepts in a variety of jurisdictions."
Jennifer has been on secondment to the UK customs authorities (Her Majesty's Revenue and Customs) in their tax and excise litigation department and to the Firm's European Law Centre in Brussels.

Author

Alexandra is an associate in the London Competition, Trade and Foreign Investment practice. Her focus is on international trade, particularly in customs compliance issues. Alexandra advises clients on import matters, including customs valuation and rules of origin. She has worked with clients on customs investigations and valuation disputes.

Author

Rini joined Baker McKenzie after six years with the Canadian government, having worked on Brexit policy, as well in trade and tax litigation. She obtained her legal training with the Canadian government with the Trade Law Bureau and the Department of Justice. Her background in trade matters spans legal advisory, litigation and policy, having worked on free trade agreements, WTO litigation on market access and trade remedies issues. Prior to joining the Canadian government, she was a government affairs associate at one of Canada's most recognizable brands.

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