EU Excise Duty changes now in effect – what this means for your business

Major changes to the way businesses process goods moving between EU Member states and Northern Ireland where excise duty has been paid came into effect on February 13 and anyone dealing with relevant goods must comply.

The new Excise Movement and Control System (EMCS) is replacing the former paper-based system to track the movement of duty paid goods, when it was previously only used to track duty suspended goods.

The changes

From February 13, all duty paid goods must use an electronic Simplified Administrative Document (e-SAD) which replaces the paper Simplified Accompanying Administrative Document (SAAD). The former needs to be raised on the EMCS and a movement guarantee – which is a financial guarantee covering the excise duty on the goods – which will be given once the details of the goods being transported are entered.

Has anything else changed?

There are some additional changes to other schemes to accommodate these changes, including the Registered and Unregistered Commercial Importer Schemes being replaced by the Certified Consignee and Temporary Certified Consignor trader types. These are being introduced for traders sending and receiving goods where the excise duty has been paid. Your local Customs authority will need to approve you to give you access to the EMCS.

We can help you meet your obligations

If you need to move goods across borders in EU Member states, then please get in touch and we can help you to navigate these changes.

Some Brexit reminders

The Brexit transitional period comes to an end on 31 December 2020. As a result, new rules will apply from 1 January 2021. As the situation is evolving, it is recommended that you check the guidance on the Gov.uk website regularly.

EORI number

From 1 January 2021 you will need an EORI number to move goods between Great Britain and the EU. You may also need a separate EORI number to move goods between Great Britain and Northern Ireland. You can find out more on the Gov.uk website.

Postponed VAT accounting

From 1 January 2021, postponed VAT accounting will apply if you are a VAT-registered business and you import goods into the UK. Under postponed VAT accounting, you can account for the import VAT on your VAT return for goods imported from anywhere in the world. More information can be found on the Gov.uk website.

Customs declarations

The rules governing when customs declarations need to be made also change from 1 January 2021. Note that different rules apply to Northern Ireland and Great Britain. Check the guidance for details of the declarations that are required when sending goods from the UK, and also the guidance on the declarations required when bringing goods into the UK.

Contact us

We can help you manage the transition to the new rules.

Customs declarations from 1 January 2021

The Brexit transitional period comes to an end on 31 December 2020. From January 2021, new arrangements apply if you send goods abroad from the UK or bring goods into the UK. It is important that you check what customs declarations you need to make from 1 January 2021 onwards.

Where goods are moved through Great Britain and Northern Ireland, Common Transit may affect the declarations that you need to make.

Sending goods from the UK

The first point to note is that the customs declarations that are required will depend on whether the goods are sent from Great Britain or from Northern Ireland – the rules are not UK-wide.

Sending goods from Great Britain

If you are sending goods from Great Britain to another country, the declarations that are needed will depend on the country to which the goods are being sent.

If you are sending goods from Great Britain to Northern Ireland, you will not need to make a declaration when you send the goods. However, you may need to make a declaration when the goods arrive in Northern Ireland. If you move goods between Great Britain and Northern Ireland, you can make use of the Trader Support Service.

From 1 January 2021, if you are sending goods from Great Britain to a country in the EU, before the goods leave Great Britain, a declaration will be needed and also an exit summary (safety and security) declaration if this is not already included in your declaration.

The procedure for sending goods from Great Britain to a country outside the EU (other than Northern Ireland) is unchanged from 1 January 2021 – a declaration is needed before the goods leave Great Britain, and also an exit summary if this is not included in the declaration.

From 1 January 2021, the procedures are the same where goods are sent from Great Britain to a country other than Northern Ireland.

Sending goods from Northern Ireland

In most cases, you will not need to make a customs declaration when sending goods from Northern Ireland to Great Britain. However, the Government are yet to publish guidance on when declarations may be needed for certain goods.

Unlike goods sent from Great Britain, you will not need to make a customs declaration from 1 January 2021 if you send goods from Northern Ireland to a country in the EU.

However, as now, if you send goods outside the EU from Northern Ireland, you will need to make a customs declaration and you will also need an exit summary if this is not included in your declaration.

Bringing goods into the UK

If you are a UK-based business and you bring goods into the UK, the customs declarations that you need to make from 1 January 2021 onwards will depend on where the goods have come from and whether you are bringing them into Great Britain or Northern Ireland.

Bringing goods into Great Britain

You will not need a customs declaration for most goods that you bring into Great Britain from Northern Ireland. Guidance on the declarations needed for certain goods is yet to be published.

From 1 January 2021, the customs declarations that are needed if you bring goods into Great Britain from an EU country will depend on whether the goods are controlled goods or not. If they are, you must make a customs declaration when the goods arrive. If the goods are not controlled goods, you may be able to delay making declarations and instead record the goods in your own records and tell HMRC about them up to six months later. Guidance on whether you can take advantage of these procedures can be found on the Gov.uk website. This may be an option if you are moving goods from the EU into free circulation in Great Britain between 1 January and 30 June 2021.

A customs declaration and an entry summary are needed for goods brought into Great Britain from outside the EU or Northern Ireland.

Bringing goods into Northern Ireland

From 1 January 2021, you will need to make a customs declaration when goods arrive into Northern Ireland from Great Britain. An entry summary is also required.

However, you will not need a declaration for any goods that you bring into Northern Ireland from the EU. If you bring goods into Northern Ireland from outside the EU, other than from Great Britain, as now, you will need a customs declaration and entry summary.

Talk to us

Making customs declarations can be complicated and you may want to appoint someone to handle this on your behalf. Talk to us to find out how we can help.