• Date

    10 Jan 2022
  • Category

    Tax, VAT & Indirect Tax

What are the key Customs Duty changes to be aware of for 2022?

As the dust settles on our New Year’s Eve festivities, marking the end of 2021, many of us will have taken some time to reflect on the highs and lows of the year from a personal and business perspective. We can welcome the start of a New Year with a renewed sense of enthusiasm. 2022 has the potential to be a year of opportunity with the benefit of a proactive approach to customs-based supply chain planning.

To assist with your first steps into 2022, Lucy Sutcliffe, Partner and Head of National Customs Duty, highlights a range of changes which may impact your business and which may need to be taken into consideration.

Delayed Customs Declarations  

From 1 January 2022, you won’t be able to delay the submission of customs import declarations for goods which you import into Great Britain from the EU without prior approval. A full customs declaration was required from the start of the year.

As a result, we anticipate that importing could become more complex to navigate for many businesses who relied upon the delayed declaration system to get them through the first 12 months of 2021 post-Brexit.

If you would like to learn more about simplified declaration procedures and how Azets can support you, please get in touch.   

GVMS Registration Requirements

From 1 January 2022, a haulier or carrier moving goods through a UK port which uses the Goods Vehicle Movement Service (GVMS) will need to be registered for the GVMS system to clear goods through customs control. If moving goods through a GVMS port without this registration is attempted, you won’t be able to board a ferry, cross the EU/UK border or clear goods through customs. Ports using GVMS will need to be provided with a Goods Movement Reference (GMR) which will be linked to pre-lodged declarations.

It is important to take steps now to ensure that any intermediaries acting on your behalf are aware of the changes and understand how they will need to operate to avoid delays at the border and potential supply chain disruptions. This change could prove especially challenging for non-UK based hauliers.

UK Freeports

On 19 November 2021, Teeside became the first Freeport to start operations in the UK. Freeports are designed to offer customs facilitations for businesses based in the site including tariff suspensions, exemptions, and deferrals. The government also offers tax incentives for businesses based in these sites which include an enhanced capital allowance, a structures and buildings allowance, business rates relief and stamp duty land tax relief.

Freeports at Thames and Humber are expected to be the next two sites to commence operations with other sites due to come online at: East Midlands Airport, Felixstowe and Harwich, Liverpool city Region, Plymouth and South Devon and Solent in due course.

Plastic Packaging Tax

From 1 April 2022, the UK will introduce a new Plastic Packaging Tax. This will apply to plastic packaging manufactured in, or imported into the UK, that does not contain at least 30% recycled plastic. There will be a tax exemption for manufacturers and importers of less than 10 tonnes of plastic packaging per year. However, businesses may still need to register for the Plastic Packaging Tax even if all the packaging they manufacture, or import contains 30% or more recycled plastic. Businesses will also need to keep a record of the packaging they manufacture or import which will increase the administrative burden for many affected businesses.  

New UK Free Trade Agreement

On 16 December 2021, the UK signed a new Free Trade Agreement with Australia. This trade deal is intended to remove tariffs (duties) on 100% of UK exports with a reciprocal provision for Australian imports into the UK. It is hoped that this agreement will also assist with the UK’s bid to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).

If you import from or export to Australia, you may find that doing business with your Australian counterparts will become cheaper because of the removal of associated import tariffs. This is just one of many Trade Agreements reached by the UK since the beginning of 2021. 

Get in touch

At Azets, we provide support and advice to ensure that your customs and excise supply chain procedures are efficient and compliant.

If you think you may be affected by the custom duty changes discussed above or you would like to discuss any potential customs duty or excise duty liabilities or responsibilities in further detail, please get in touch with your local Azets advisor or directly contact Lucy Sutcliffe, Partner and Head of National Customs Duty.

About the author

Lucy Sutcliffe Photo

Lucy Sutcliffe

Partner | Head of Customs Peterborough
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