Q&A: What small businesses need to know about the new import rules

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Promotional feature from HM Government

Since 1 January 2022, businesses who move goods into the UK from the EU, traders and hauliers, have had to follow new rules.

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

Yahoo Finance spoke to Mike Wilson, chief executive of Go Exporting about the finer details small businesses need to know in relation to the latest rules.

Q: In brief, what do small businesses need to know about the new rules?

Global Tech News Daily

Previously, trading with the EU was the same as trading within the UK because of the single market, with common rules and regulations. However, now that the UK has left the EU trade is different.

Due to the UK-EU Trade and Cooperation Agreement (TCA), the way we do business with the EU has changed and so must businesses.

Global Tech News Daily

Q: Which businesses are affected?

All businesses that trade with the EU will have been affected in one way or another, but the major changes will have been felt by those importing products rather than offering services.

We have clients who source from two, three, sometimes four or more EU countries, process in two or more countries and then finish off in the UK. Supply chains have more steps to follow within them and the flow of goods is very different. But once businesses have completed the process they will become much more familiar with the changes and accustomed to new ways of doing things.

Q: What are the key changes that came into place on 1 Jan?

Customs Declarations

Businesses needed time to grapple with the new rules for customs declarations, since leaving the EU. The Government helped to support businesses by bringing in the new rules in stages. From 1 January 2022 most of those easements have ended.

Throughout 2021, importing businesses were able to delay their customs declarations and submit the relevant information within 175 days.

From 1 January 2022, however, full customs declarations at the time of import are now a requirement, unless you are approved to make simplified declarations.

Some businesses already have authorisation to make simplified declarations – this allows their goods to be released directly to a specified customs procedure without having to provide a full customs declaration at the point of release.

If you want to use Simplified Declarations, you/your agent will need authorisation to do so before you import your goods. It can take up to 60 calendar days to complete the checks needed for this. To find out more, go to GOV.UK and search ‘simplified declarations’.

Failure to submit a customs declaration will mean the shipment is stopped and not allowed to enter free circulation until this is rectified. Importers must, therefore, make sure they or their representative (such as their customs agent or freight forwarder) have all the required information to hand to submit their customs declaration at the time of import.

Note: The new rules do not yet apply to imports from the island of Ireland into Great Britain.

Rules of Origin

From 1 January businesses must hold the required evidence to support their claim for origin. To benefit from the reduced rate of Customs Duty (preferential tariffs), you must have proof that the goods you import into the UK from the EU originate in the EU and the goods you export to the EU originate in the UK.

Without the right evidence, you might have to pay duty on your goods and even shipments from 2021 could incur retrospective duty if you cannot comply.

Importers must note that if you have claimed origin based on ‘Importers Knowledge’ it is your responsibility to gather the required evidence. If you cannot prove it, then duty and penalties may well become due.

Pre-Notification

Pre-notification requirements for certain foods, animal and plant products, which were originally delayed from 1 October 2021, have now come into effect since 1 January 2022.

For businesses importing certain sanitary or phytosanitary goods such as meat or plants into Great Britain, it is now necessary to pre-register their imports on the relevant system. They cannot simply turn up at a port.

All required documents, such as health certificates, need to be inputted into the IT systems to pre-notify UK customs.

For more information on importing food or animal products visit: gov.uk/import-animal-products

For more information on importing plants or plant products visit: gov.uk/import-plants-from-eu

Note: The new rules do not yet apply to imports from the island of Ireland into Great Britain.

Q: How have businesses you work with found the changes so far?

So far we have not seen the same disruptions as we saw in January last year, when there were issues importers and exporters adapting to new trading rules, whilst also dealing with challenges brought by Covid. Businesses seem to be getting to grips with the new rules this time around and are very willing to share knowledge with others once they have nailed internal processes.

As last year went on we saw more specific questions from businesses as they gained experience of the changes and a drive to review operating models to be fit for purpose for the new normal. We saw great demand for full company Brexit Reviews.

Q: What are the specific challenges for businesses?

The key issues or questions we have seen from customers are:

VAT

Some businesses had nottaken advantage of the option to delay paying VAT on import to their next VAT Return. This is done by informing the freight forwarder/courier ahead of time to make sure it is included on the customs paperwork. Some businesses were not aware so had to pay VAT at the time of import, which can be avoided.

Triangulation has been an issue also. This is where there are three companies involved in a single supply of goods within the EU, and they are all in three different countries. For example, a UK company sells to a client in France, then sources from Italy and wants to ship direct. This now requires a local VAT number. We have seen a number of clients struggling with this point and it can cause challenges with rules of origin.

Rules of Origin

Last year we advised many clients on the new rules of origin in the UK-EU TCA. It is important to understand the rules as they apply to a particular product to be able to determine its correct origin and claim the zero-rate duty benefit the TCA brings.

We saw some initial confusion over the sufficient processing requirement and calculation of the value of non-originating materials. As the year went on clients, on the whole, came to understand the rules and amended their operating models accordingly to stay competitive.

It is important that businesses now hold the correct evidence to support their origin and preferential duty claims if called upon to prove it to the authorities.

Customs Declarations

The Government really helped UK importers during 2021 by not immediately imposing full customs declarations. Instead, businesses were able to delay these for up to 175 days, allowing them plenty of time to gather the necessary information. This had the dual effect of avoiding unnecessary delays at port whilst shippers came to terms with the new requirements. Consequently, businesses had time to prepare for the 1stJanuary 2022 when full declarations at the time of import became necessary.

Incoterms

Incoterms define who is responsible for what in an export/import transaction such as the cost of transport, export and import declarations, VAT and duties. When the UK was part of the EU, businesses did not need to worry about these for intra-EU shipments due to the free movement of goods. Since 1st January 2021, however, it has been important for importers and exporters to understand the implications of the different terms. Initially some clients overlooked the importance of Incoterms, but as the year went on, they followed our advice and avoided unexpected issues.

Q: What tips would you give to small businesses that import from the EU into the UK?

There is no one size fits all in terms of organisation, every company has its own requirements. However, it is vital to make sure you have the basics right:

● Make sure you are fully aware of the rules and that the terms and conditions are clearly agreed with suppliers in advance. Incoterms need to be clear.

● Ensure you advise your customs agent/forwarder you want to use the delayed VAT accounting option.

● Be aware of the rules of origin in the TCA and how this affects your imports, plus re-exports to the EU. Ensure you hold the evidence to prove origin if requested.

● Review your operating model and potential benefits of customs special procedures such as Customs Warehousing and Inward Processing Relief.

● Review your supply chain to see if it is still the most efficient given the new rules.

Q: Is this the time to tap into the global marketplace?

Importing from the EU is still a great option for businesses due to the terms of the TCA allowing for duty free trade when the conditions are met.

The EU is still the UK’s biggest and closest trading partner. Once you understand the rules and adjust your operating model accordingly, there are still great opportunities.

Reviewing your supply chain makes a lot of sense, having options closer to home, whether UK or EU, can help insulate against the supply reliability risks we have seen during the pandemic. Many businesses are looking to spread their risk.

From an export and importing perspective the world is now a smaller place. Exporting to the EU is similar to exporting anywhere in the world. This is a great opportunity for businesses to assess markets and identify those offering the greatest overall potential. We have helped a number of clients take a fresh approach to their export strategy. We use a scoring system to rank countries taking into account market size, barriers to entry, currency and country risk etc. There are big opportunities in Asia, Africa and South America for example which traders may previously have not considered as it was the default option to simply deal with the EU.

News Related

OTHER NEWS

Fiverr International (FVRR) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Fiverr International (FVRR) closed at $81.01, marking a -0.52% move from the previous day. This change lagged the S&P 500’s daily loss of 0.37%. – ... Read more »

Sterling Construction (STRL) Gains As Market Dips: What You Should Know

Sterling Construction (STRL) closed at $27.51 in the latest trading session, marking a +1.63% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

Boise Cascade (BCC) Gains As Market Dips: What You Should Know

Boise Cascade (BCC) closed at $77.20 in the latest trading session, marking a +0.69% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

CRISPR Therapeutics AG (CRSP) Gains As Market Dips: What You Should Know

In the latest trading session, CRISPR Therapeutics AG (CRSP) closed at $62.36, marking a +0.76% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.37%. ... Read more »

Bausch Health (BHC) Dips More Than Broader Markets: What You Should Know

Bausch Health (BHC) closed the most recent trading day at $24.39, moving -0.53% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.37%. – Zacks ... Read more »

ETF Strategies to Consider for February as Fed's Rate Hike Nears

Wall Street has been mostly kind to investors so far in February after a tough January. Market participants are upbeat about improving U.S. economic conditions as reflected by encouraging fourth-quarter ... Read more »

Bank of Nova Scotia (BNS) Gains As Market Dips: What You Should Know

Bank of Nova Scotia (BNS) closed at $73.75 in the latest trading session, marking a +0.78% move from the prior day. This move outpaced the S&P 500’s daily loss of ... Read more »

Fox (FOXA) to Report Q2 Earnings: What's in the Offing?

Fox FOXA is set to report second-quarter fiscal 2022 results on Feb 9.For the quarter, the company’s current Zacks Consensus Estimate for earnings is pegged at breakeven against a loss ... Read more »

Generac Holdings (GNRC) Gains As Market Dips: What You Should Know

In the latest trading session, Generac Holdings (GNRC) closed at $279.97, marking a +0.01% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

Spirit And Frontier Announce $6.6 Billion Merger

Spirit Airlines Incorporated (NYSE:SAVE) and Frontier Group Holdings Inc (NASDAQ:ULCC) have announced a $6.6 billion merger to create one of the largest low-cost airlines in the U.S. The new airline ... Read more »

First Trust Energy AlphaDEX Fund (FXN) Hits a 52-Week High

The First Trust Energy AlphaDEX Fund FXN is probably a suitable pick for investors looking for momentum. FXN hit a 52-week high and is up 59.6% from its 52-week low ... Read more »

Stock futures inch higher after S&P, Nasdaq fall to start the week

U.S. stock index futures crept higher during overnight trading Monday, after the major averages moved between gains and losses during regular trading as the market awaits key inflation data later ... Read more »

Immunovant (IMVT) Reports Wider-Than-Expected Loss in Q3

Immunovant, Inc. IMVT reported a net loss of 36 cents per share in the third quarter of fiscal 2022 (ended Dec 31, 2021), wider than the Zacks Consensus Estimate of ... Read more »

Buckle's (BKE) Sales Run Continues in January, Comps Gain 4.2%

The Buckle, Inc. BKE looks well poised on the back of its robust strategic efforts, including strength in e-commerce business and an impressive sales trend. BKE has been putting up ... Read more »

6 Best-Leveraged ETF Areas of Last Week

Wall Street put up a moderate show last week with the S&P 500 (up 1.6%), the Dow Jones (up 1.1%), the Nasdaq Composite (up 2.4%) and the Russell 2000 (up ... Read more »

Interpublic (IPG) to Report Q4 Earnings: What's in the Cards?

The Interpublic Group of Companies, Inc. IPG is scheduled to report fourth-quarter 2021 results on Feb 10, before the opening bell. – Zacks Let’s check out how things have shaped ... Read more »

Mednax (MD) Buys Night Lite Pediatrics to Boost Portfolio

Mednax, Inc. MD and its affiliated practices Pediatrix Medical Group recently acquired Night Lite Pediatrics, LLC in Orlando, FL. Night Lite is a private 13-clinic pediatric urgent care practice. The ... Read more »

Best Growth Stocks to Buy for February 7th

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, February 7th: – Zacks Apple AAPL: This company whose business primarily runs around its ... Read more »

Gol Linhas (GOL) Stock up 16.2% in a Month: More Upside Left?

Shares of Gol Linhas GOL have displayed an uptrend on the bourses over the past month, gaining 16.2% against its industry’s 3.1% decline. – Zacks Image Source: Zacks Investment Research ... Read more »

Top Research Reports for Bank of America, Coca-Cola & salesforce

Monday, February 7, 2022 The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including Bank ... Read more »

Sanofi's (SNY) Enjaymo Gets FDA Nod For Rare Blood Disorder

Sanofi SNY announced that the FDA has approved its monoclonal antibody, Enjaymo (sutimlimab-jome), to decrease the need for red blood cell transfusion due to hemolysis in adult patients with cold ... Read more »

The Zacks Analyst Blog Highlights: Alphabet, T-Mobile US, Advanced Micro Devices, Mondelez International and Chubb

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

IRS to stop using facial recognition for identity verification

Signage outside the Internal Revenue Service (IRS) headquarters in Washington, D.C.Bloomberg | Bloomberg | Getty Images The IRS on Monday announced it will stop using a controversial third-party service for ... Read more »

Why Mid-America Apartment Communities (MAA) is a Great Dividend Stock Right Now

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

Surging Earnings Estimates Signal Upside for Xilinx (XLNX) Stock

Investors might want to bet on Xilinx (XLNX), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and ... Read more »

BCB Bancorp (BCBP) is a Top Dividend Stock Right Now: Should You Buy?

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

The Zacks Analyst Blog Highlights: AbbVie, Merck, Eli Lilly, Novartis and Pfizer

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

BankUnited (BKU) Stock up 3.4% on New Share Repurchase Plan

BankUnited, Inc. BKU has announced a new share repurchase plan. The company’s board of directors has approved the repurchase of up to $150 million in shares of BKU’s outstanding stock. ... Read more »

TEGNA Inc. (TGNA) Soars 7.4%: Is Further Upside Left in the Stock?

TEGNA Inc. TGNA shares rallied 7.4% in the last trading session to close at $21.34. This move can be attributable to notable volume with a higher number of shares being ... Read more »

Can BCB Bancorp (BCBP) Run Higher on Rising Earnings Estimates?

BCB Bancorp (BCBP) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue ... Read more »

Earnings Estimates Moving Higher for Marathon Oil (MRO): Time to Buy?

Marathon Oil (MRO) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue ... Read more »

Transport ETFs to Buy on Solid Q4 Earnings

The fourth-quarter earnings picture for the transportation sector has been robust. This is especially true as earnings of 95.2% of the market capitalization of the sector that has reported so ... Read more »

The Zacks Analyst Blog Highlights: STMicroelectronics, BP and Asbury Automotive Group

For Immediate Release Chicago, IL – February 7, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the ... Read more »

Earnings Estimates Moving Higher for Robert Half (RHI): Time to Buy?

Robert Half (RHI) could be a solid choice for investors given the company’s remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue ... Read more »

Are You Looking for a High-Growth Dividend Stock? Bar Harbor Bankshares (BHB) Could Be a Great Choice

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor’s dream. But for income investors, generating consistent cash flow ... Read more »

Comcast vs. ViacomCBS: Which Stock is a Better Buy for 2022?

The entertainment industry is growing rapidly, with surging demand for over-the-top (OTT) content and other services. Therefore, prominent industry participants Comcast (CMCSA) and ViacomCBS (VIAC) should benefit. But which of ... Read more »

Here's Why You Should Add Quidel (QDEL) Stock To Your Portfolio

Quidel Corporation QDEL has been gaining on the back of its strong diagnostics portfolio. A solid third-quarter 2021 performance, along with solid potential in In-Vitro Diagnostics (“IVD”) products, is expected ... Read more »

Why State Street Corporation (STT) is a Great Dividend Stock Right Now

Whether it’s through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you’re an income investor, your primary focus is ... Read more »

Labor Department tries to prevent states from clawing back unemployment benefits

Liu Jie/Xinhua via Getty Images States can forgo clawing back pandemic-era unemployment benefits in a broader set of circumstances than previously allowed, the U.S. Department of Labor said Monday. In ... Read more »

It's easy to mistakenly skip these forms when filing your tax return

Steven Heap/EyeEm/Getty Images It's easy to miss necessary tax forms as more companies go paperless, but with mounting challenges at the IRS, filing an inaccurate tax return will only lead ... Read more »