The BVRLA publishes regular updates containing the latest advice to support members as new information and guidance emerges in relation to EU Exit. Members are advised to regularly check the EU Exit Bulletins below.
On 24 December 2020 the UK and EU agreed a Trade and Cooperation Agreement taking effect at 11pm on 31 December 2020.
Now the UK has left the Single Market and Customs Union it is essential that businesses are aware of steps they must take to continue to trade with the EU.
Keep updated
Anybody working for a member organisation can sign up to receive BVRLA updates or you can read them here...
Latest EU Exit Bulletin
Read previous EU Exit Bulletins here
12 March 2021
New timetable for border controls on imports
The Government has announced a new timetable for introducing import border control processes to enable UK businesses to focus on their recovery.
Full processes for some imports will now not be required until January 2022, six months later than planned, including:
- Customs import declarations, which will still be required, but the option to use the deferred declaration scheme, including submitting supplementary declarations up to six months after the goods have been imported, has been extended to 1 January 2022.
- Safety and Security Declarations for imports, which will now not be required until 1 January 2022.
Access to international trade advisers
The Government is offering support for exporters via a network of around 300 International Trade Advisers located across all regions of the UK.
Enter your postcode into the online portal to get details of where to find your local trade office and how to contact your local international trade adviser.
Transferring goods into Northern Ireland tariff-free
HMRC has updated its guidance for those who transfer goods into Northern Ireland to include that organisations without a fixed place of business in NI will be authorised under the UK Trader Scheme until the end of October.
This will give some businesses more time to consider the options and adapt to the new requirements under the NI Protocol. However, the details of the extension make it unworkable for parts of BVRLA membership.
The BVRLA will continue to lobby Government to try to secure a workable long-term solution.
Grants to help SME’s new to importing or exporting
Applications for grants of up to £2,000 are due to open this month for businesses that transfer goods between Great Britain and the EU or move goods between Great Britain and Northern Ireland.
The grants, designed to support businesses that are new to import or export processes, are to contribute towards the cost of training and professional advice on customs, rules of origin, and the VAT aspects of imports and exports.
Members are encouraged to keep an eye on the guidance page as applications are due to open this month (March 2021).
Look up tariffs, taxes and rules to trade with the UK
The Government has published an online portal to help businesses to find out the UK rules and taxes that apply to goods being imported from overseas into the UK. It includes:
- product-specific standards and regulations
- if there’s duty and VAT to pay
- duty relief schemes
- if an import licence is needed
- your UK commodity code, for example if you do your own import declarations.
BVRLA publishes new Business Impact Survey
Findings from Wave 1 of the association’s Business Impact Survey have been published, showing that the most common concerns being expressed by members following the UK’s departure from the EU relate to increased costs.
Increased cost of vehicles, followed by increased cost of parts, are the two issues that members feel will have the greatest impact on their business.
The survey, which canvass members’ views on the impact of both EU Exit and the Covid pandemic, is being carried out quarterly.
Guidance for employers hiring from the EU
The Home Office has published a 13-page guidance document and a useful one-page at-a-glance-guide to provide employers with information on what they need to know and do to become a licensed sponsor of skilled migrant workers under the UK’s new points-based immigration system.
Additional information for devolved administrations
The Devolved Administrations have also published their own guidance to support individuals and businesses in Scotland, Wales, and Northern Ireland.
Business Support Helplines are also available:
- Wales: 0300 060 3000
- Scotland: 0300 303 0660
- Northern Ireland: 0800 181 4422
The Government has published some useful information resources to support individuals and businesses as they prepare for EU Exit:
- A dedicated UK transition website where you can answer a few questions to get a personalised list of actions and also sign up to receive alerts.
- A simple checker tool to help individuals and businesses to find out what steps they need to take to get prepared .
- A series of free business support webinars to help business leaders to check the new rules and understand the actions they need to take.
- A collection of useful videos on trading with the EU beyond 1 January have also been produced.
Keep informed
If there are any areas that members would like to see added, further details requested or more resources provided please email policy@bvrla.co.uk.
What members need to know...
Leasing vehicles for use in Northern Ireland
Following the end of the transition period, leasing firms have faced challenges getting vehicles into Northern Ireland (NI) that have been transported via Great Britain (GB). There have been two areas of confusion:
- What are the correct customs procedures to follow for a leased vehicle?
- Could vehicles entering NI from GB have to pay tariffs?
The BVRLA has worked with HMRC, BEIS and the Institute of Exports and International Trade to create clear guidance for members on these issues.
Background
How to navigate moving vehicles to Northern Ireland will require leasing companies to work closely with their partner OEMs, dealers and freight companies. The processes and responsibilities described in this guidance could cross between multiple firms in a single delivery/transaction. Ensuring vehicles are moved in compliance with customs rules and do not incur tariffs will require clear communication and strong cooperation.
The rules around customs and tariffs don’t change depending on who the final customer might be or where they are based. If a vehicle is moving from Great Britain (GB) to NI these procedures need to be followed.
Leasing companies leasing vehicles for use in NI will require a GB and NI EORI number, they can apply for both at the same time and it takes four working days for the application to be processed. Firms should also sign-up for the Trader Support Service (TSS).
If members have further questions or require clarification, they are welcome to get in touch with the BVRLA team.
Customs procedure
The freight company/dealer arranging the movement of goods is required to register the movement in the TSS to get the necessary authorisation for the shipment. This process requires them to input a Consignor and Consignee EORI number into the system and to confirm the Incoterms for the movement.
The consignor and consignee are the sender and receiver of the goods, typically one of these people is the person responsible for the import declarations (the declarant). If members are uncertain about who has responsibly they should speak to others in the supply chain.
Who is the declarant typically depends on the Incoterms between the buyer and seller of goods. These set out who has responsibility for the goods and other responsibilities connected to their movement (such as insurance and freight costs), and therefore who makes import declarations. They are traditionally used in international trade, but are now also relevant for GB-NI goods movements as import declarations are needed. Incoterms are published by the International Chamber of Commerce.
There’s more information here and here
A freight company should not use a leaseco’s end customer’s EORI number. This will ensure the ownership of the vehicle is clear and the end customer is not presented with unexpected documentation.
How the delivery has been arranged will determine the Incoterm. Depending on the Incoterm used, the leaseco may be sent a Supplementary Declaration (SD) once the shipment arrives in NI. A SD will need to be submitted on the 4th day of the month following shipment, i.e. a shipment in February 2021 will need the SD completing by 04/03/2021.
Tariff risk
The firm responsible for making the import declarations into NI would need to consider whether tariffs are due on the vehicle or whether it could be declared not at risk of movement into Ireland.
The key considerations are:
- If the car is of UK origin (this is different from being in free circulation in the UK and would need evidence from when the car was manufactured) a claim could be made under the UK-EU trade agreement for the zero tariff. If this is the case then the car would not be at risk on entry to NI and no tariffs would be payable.
- If this is not possible then the person moving the car into NI could consider if they could get authorisation under the UK Trader Scheme to declare the goods “not at risk”. The business moving the car into NI and making the declaration would need to be authorised to do so.
- If the importer can apply before the end of February 2021 then they will get provisional authorisation for up to four months while HMRC processes the application and can declare the vehicles “not at risk”.
- To declare the car “not at risk” they would need to be able to evidence that the car was for use by the leasing business in NI. This doesn’t mean it could not be taken out of NI, but the use would need to be based in NI.
- If none of the above applied, then the firm making the declaration would have to declare the goods at risk and the EU tariff would be applied. They would then have the option of claiming a waiver, subject to meeting the conditions for that.
Vehicle movement from the UK to NI
Read more information on when tariffs might apply to vehicle movement from the UK to NI and for guidance on the other requirements members must follow to make an export.
End of transition considerations for BVRLA members
Buying vehicles
UK Global Tariff
- As part of the EU Customs Union the UK did not have its own set of tariffs for goods imported into the UK but instead relied on the tariff schedule set at an EU level.
- Following the UK’s departure from the EU the UK has the ability to unilaterally set its own tariff levels. These are the tariffs that will be levied on imports from countries with which the UK does not have a bilateral free trade agreement (FTA).
- Government consulted on its tariff framework and in June published the UK Global Tariff which sets out the UK tariff regime.
- The duty on imported new and used cars, vans and HGVs was set at 10%. For many parts there is more variance, but most were set at 2% or 4%.
- Any vehicle arriving after 1 January which does not come from a country where the UK has an FTA will incur these duties, irrespective of when they were ordered.
- VAT is also due on the value of the vehicle when it is imported to the UK. When calculating the value of the vehicle for VAT purposes, duty, along with accessories and delivery charges are included. More details can be found on the gov.uk website.
Rules of origin
- Rules of origin are how a customs authority classify where imports have come from for international trade purposes. A car has multiple components: bumpers, brakes, clutches, computer software, leather seats and rubber tyres, etc. These can be made in different countries and shipped as needed to be assembled into the final product. With multiple components adding value, it can be very difficult to determine origin for some products.
- A standard part of any FTA is rules around “Product Specific Rules of Origin”. These require a certain percentage of the value of a product (i.e. the parts used to manufacture it) to be produced in the country claiming to export that product for it to qualify as being made there. If a product does not meet these conditions, it will still face the duties even if there is an FTA.
- These provisions are necessary to remove the possibility of a firm performing nominal manufacturing in a country in order to take advantage of its trade agreements and thus avoid duties.
- These agreements will often count the valued added in the nation the product is destined for towards the provision, this is called ‘cumulation’. E.g. if a car built in the UK uses parts from the EU and is then exported to the EU then those EU parts will count towards it meeting the rules of origin requirements.
- There are many Government resources on this topic:
- Instant access to on-demand video explainers (includes Rules of Origin)
- Full guidance on Rules of Origin when trading with the EU
- Online tool to check which Rules of Origin apply to your exports:
- Online tool to check which Rules of Origin apply to your imports:
Accessing vehicles from the EU
- Check with your suppliers and ensure they are prepared. Regardless of whether there is a deal or not there will be new customs procedures from 1 January 2021.
- If you deal directly with suppliers in the EU (more likely for those dealing with caravans or specialist vans/HGVs in their business) there are actions you need to take. Guidance can be found on the gov.uk website.
- The UK has allowed for the deferring of customs for the first 6 months of 2021. Have conversations with your suppliers and internally as to how this will work in your business. Irrespective of a deal there could be VAT and VAT accounting implications.
- Import VAT will be payable but postponed import VAT accounting will allow this VAT to be paid via a VAT return instead of at the time of importation. This new approach applies to imports from the EU and from the Rest of the World
Using vehicles
VAT, UK vehicles entering the EU and EU vehicles entering the UK
- The UK is leaving the EU VAT regime. Northern Ireland will stay in the EU VAT regime for goods but leaves for services.
- Some of the current rules around place of supply of services no longer apply for services in the EU. Some member states apply use and enjoyment rules which require domestic VAT to the charged when services are used and enjoyed in that country. This will be the case for vehicles which enter Ireland from both Northern Ireland and GB, as both are considered as outside of the EU: link.
- For rental and leasing operators if your vehicles are taken into the EU from the UK, the EU member state may apply use and enjoyment provisions and require a VAT apportionment based upon the time the rental or lease vehicle is in that EU member state with VAT due to the EU member.
- Similarly, if you have vehicles in the EU which enter the UK then UK VAT will be due on the short-term and long-term hire of means of transport to the extent that it is used and enjoyed in the UK. For long-term hire B2B where the customer is a UK business, the reverse charge will apply if the supplier is not established in the UK.
- Long term hire place of supply of service rules for B2B and B2C should also be considered. For B2B, the place of supply will continue to be the EU country of the hirer and a reverse charge will apply, but this is overridden if the vehicle use and enjoyment is in the UK, then UK VAT is due. For B2C the place of supply is where the customer belongs. Where the customer is based in the UK and use and enjoyment is outside the UK, no UK VAT is applicable. Conversely, UK VAT is chargeable if the customer is non-UK but use and enjoyment is in the UK.
- HMRC have confirmed for UK use and enjoyment there is no specified apportionment method. Rental firms are able to use the form of apportionment that is best suited to their circumstances provided it produces a fair and reasonable result.
Actions: Review your VAT procedures and ensure you are prepared to for the changes, especially around UK use and enjoyment provisions.
Sale of used vehicles from GB into Northern Ireland and Ireland
- Due to the Northern Ireland Protocol NI and Ireland are linked from a customs procedure.
- Used cars could incur tariffs entering either NI or Ireland.
- For NI the key considerations are:
- If the car is of UK origin (this is different from being in free circulation in the UK and would need evidence from when the car was manufactured) a claim could be made under the UK-EU trade agreement for the zero tariff. If this is the case then the car would not be at risk on entry to NI and no tariffs would be payable.
- If this is not possible then the person moving the car into NI could consider if they could get authorisation under the UK Trader Scheme to declare the goods “not at risk”. The business moving the car into NI and making the declaration would need to be authorised to do so.
- If the importer can apply before the end of February 2021 then they will get provisional authorisation for up to four months while HMRC processes the application and can declare the vehicles “not at risk”.
- To declare the car “not at risk” they would need to be able to evidence that the car was for use by the leasing business in NI. This doesn’t mean it could not be taken out of NI, but the use would need to be based in NI.
- If none of the above applied, then the firm making the declaration would have to declare the goods at risk and the EU tariff would be applied. They would then have the option of claiming a waiver, subject to meeting the conditions for that.
- For Ireland the key considerations are whether rit is a GB originating car, from NI and then tariff free or if it originates in another market and so will incur a tariff. Irish Revenue have guidance.
- Due to the EU-UK FTA's Rules of Origin a car made in the EU, used in GB and then sold into Ireland would be required to pay a tariff.
VAT and movement of vehicles (owned or through sale) from GB into Northern Ireland
- When a VAT registered business moves goods from Great Britain into Northern Ireland, VAT will be due. The business will need to account for VAT on the movement. This should be included as output VAT on the VAT return.
- Where the goods are being used for taxable sales, the VAT may also be reclaimed as input VAT on its UK VAT return, subject to the normal rules.
- Where a business uses the goods for exempt activities, or where the goods are put to a taxable use and also exempt use, it may be required to make an adjustment to its partial exemption calculations.
- Note: A business will not be required to account for VAT when it moves its goods from NI to GB unless these goods have been subject to a sale or supply.
Actions: Review your VAT procedures and ensure you are prepared to pay VAT even when moving your own vehicles between GB and NI.
Customs procedures and vehicle movements between NI and GB
- Moving vehicles from GB to NI will require an import declaration. Firms should sign-up for support to do this on the gov.UK website.
- If a vehicle is entering Northern Ireland and the vehicle itself will not be used for a commercial purpose, then there is no need for customs declarations around the vehicle. For example, if a leasing customer drives their car into NI for a business meeting or customer rents a car from GB and drives it into NI.
- If a vehicle is moved to NI for commercial purposes then a customs declaration is needed immediately along with the associated VAT accounting, there is no grace period. For example, a rental company moves vehicles from a GB depot to a NI depot to rent them from NI or a customer vehicle breaks down and in NI and it will be rented out from NI after repair.
- If customers are using a rented or leased vehicle for other commercial purposes, for example selling furniture from GB into NI, then there are numerous customs procedures the vehicle user will need to follow, but not the rental firm.
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For a temporary import of vehicles going into Northern Ireland from GB for less than 30 days, before returning to GB no declaration is required or VAT requirements.
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Moving goods from NI to GB requires no declarations.
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The latest guidance on these issues is available here.
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For leasing vehicles into the NI market please see the specific BVRLA guidance higher on this page.
Actions: review your sales and trade with NI, if you move vehicles, sign-up for support. Possibly review your terms and conditions in rental agreements around customers obligations to follow correct customs procedures going into NI when they are using your vehicles.
EU plated vehicles in the UK
- If there are EU plated vehicles which enter the UK these will now be treated the same as the rest of the world for customs procedures.
- These procedures allow for the temporary import of vehicles under a number of circumstances, this would apply to an EU plated rental vehicle entering the UK. The rules can be found here.
- Most crucial are the provisions that if the vehicle is in the UK for more than 6 months then it will need to be officially imported and that the vehicle cannot be used by a UK resident.
Actions: if you have EU operations engage with them to ensure EU customers are using vehicles in the UK legally after the end of the transition period.
UK plated vehicles in the Ireland
- A vehicle which is leased to a resident of Ireland must be registered and VRT paid within 30 days of it arriving in Ireland.
- Vehicles temporarily brought into Ireland by non-residents may be driven by the non-resident for a period of 6 months. However, the driver must be able to prove that they are a non-resident and that the vehicle is temporarily in the State.
- Details on Temporary Importation can here: link.
Actions: if you have UK operations leasing or renting into Ireland ensure this is happening legally after the end of the transition period.
Driving into the EU
- Government has advised that UK motorists wishing to travel to EU and EEA member states, Switzerland, Serbia and Andorra should prepare to carry Green Cards for journeys from 1 January 2021 onwards, including when driving in Ireland.
- Green Cards will not be required to drive from Great Britain into Northern Ireland.
- The Government intends for the UK to remain part of the Green Card-free circulation area, and continues to urge the European Commission to issue an Implementing Decision that would ensure that UK motorists can drive in the EU without a Green Card, and vice versa, and are not subject to systematic border checks on insurance. However, until this is confirmed, motorists should carry green cards.
- New rules on Green Cards mean that they can now be printed out on white paper. They can also be issued electronically and printed by customers.
- The Motor Insurers’ Bureau have confirmed that insurance providers can issue hand written Green Cards to motorists, but that this should be limited to exceptional circumstances.
- VE103s are still needed in the EU and the rules around them are unchanged. However, there is an expectation that enforcement by EU police forces could increase.
- Drivers will also need to display a GB sticker to the rear of the vehicle and trailer, even if the number plates include the GB identifier under the EU logo. Vehicles registered in Great Britain or Northern Ireland don’t need to display a GB sticker to drive in Ireland. You do not need a GB sticker if your number plate includes the GB identifier on its own or with the Union flag. If you’re in Spain, Cyprus or Malta, you must display a GB sticker no matter what is on your number plate. More information is available on the gov.uk website.
- The UK will not be part of the EU automated electronic data exchange mechanism established to share vehicle keeper data around certain traffic offences (including speeding, using a forbidden lane, not stopping at a red light and others). It will still provide this information where requested but through a much more resource intensive manual DVLA process. More information is available on the gov.uk website.
Logistics in Kent
- Goods vehicles doing domestic logistics operations in Kent (i.e. those not leaving the country) will not have to get a Kent Access Permit (KAP) from the web service.
- The guidance published in the Border Operating Model states that, during the traffic restriction periods, it is advisable that all drivers who are transporting goods domestically carry paperwork detailing their journey so any possible delays can be minimised.
- Proposed amendments to the rules, (details of which can be found online) would allow HGV drivers working for hauliers based in East Kent to continue to use local roads to move goods around the county without risking enforcement action through issuing a Local Haulier Permit.
- Kent-based hauliers will still be required to have used the service and secured a KAP if they are travelling internationally via Port of Dover or Eurotunnel. Those hauliers eligible for these permits will be contacted separately with more information.
Actions: Review your processes for within Kent and consider providing paperwork with the vehicles to minimise delays or applying for a Local Haulier Permit if applicable.
Driving licences
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You need to carry your UK driving licence with you.
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You do not need an international driving permit (IDP) to visit and drive in the EU, Switzerland, Iceland or Liechtenstein.
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You might need an IDP to drive in some EU countries and Norway if you have:
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a paper driving licence
- a licence that was issued in Gibraltar, Guernsey, Jersey or the Isle of Man
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- Guidance can be found on the gov.uk website
Data flows and the EU
- The UK does not yet have a data adequacy agreement with the EU confirming that its GDPR rules meet EU standards.
- As part of the trade deal, the EU has agreed to delay transfer restrictions for four to six months (known as the bridge). This means that data can flow freely from the EEA as before. The EU Commission has stated that it intends to promptly launch the procedure for the adoption of adequacy decisions under the GDPR and the Law Enforcement directive. In the absence of an EU adequacy decision at the end of the bridge, these transfers will need to comply with EU GDPR transfer rules.
- The Information Commissioner's Office (ICO) recommend that firms put alternative safeguards in place before the end of April, if you haven’t done so already. Our end of transition guidance will help you to prepare for changes to receiving personal data from the EEA.
- For more information and guidance please see the ICO website
CO2 Regulations (CAFÉ limits)
- From 1 January 2020 cars, vans and HGVs sold in Great Britain will no longer count towards EU CO2 targets for manufacturers.
- Vehicles registered in Northern Ireland will continue to count towards EU CO2 targets.
- Government has introduced its own CO2 standards for cars registered in GB which broadly mirror the targets and fines of the EU standards, with some alterations where it was felt that it was needed for the continuity of the intention of the regulations. The regulations can be found online for cars and for HGVs.
- When moving vehicles from NI to GB and the reverse there will be no need for firms or individuals to take any action around CO2 reporting. DVLA will automatically resolve this challenge.
Actions: Be aware that the CO2 regulations framework has changed, and this may have impacts on manufacturer strategy.
Accounting and audit impacts
Letters have been sent to the accounting and audit sectors on UK accounting and audit framework from 1 January 2021. These can be found on the gov.uk website. Some key takeaways are below:
- All UK incorporated companies that are currently required to use EU-adopted IFRS will need to use UK-adopted international accounting standards for financial years that begin on or after 1 January 2021. On 1 January 2021, UK-adopted international accounting standards and EU-adopted IFRS will be identical.
- UK incorporated companies or groups with securities admitted to trading on an EEA regulated market, or UK incorporated groups that issue debt from a subsidiary incorporated in the EEA, will need to comply with local regulatory provisions from the 1 January 2021.
- The Transparency Directive currently permits use of UK GAAP for companies not required to prepare consolidated accounts. However, after the transition period, it is likely that companies that are currently permitted to use UK GAAP in respect of securities admitted to trading on a regulated market in the EEA will need to prepare an additional set of accounts that comply with the relevant Transparency Directive requirements.
- Intermediate parent companies in the UK that have an EEA parent using EU-adopted IFRS to produce group accounts can benefit from the exemption in s.401 of the Companies Act 2006from the requirement to produce consolidated accounts at the UK sub-group level. This is because the UK has granted equivalence to EU-adopted IFRS.
- If the EEA parent produces group accounts that are not equivalent to those required by UK law, then the UK intermediate parent company will need to produce consolidated accounts at the UK sub-group level.
- UK incorporated subsidiaries with an EEA parent can no longer rely on the parent’s non-financial information statement. Where the UK subsidiary is itself in scope of producing a non-financial information statement, then this will need to be separately produced for financial years that begin on or after 1 January 2021. This should be included within its strategic report.
- EEA companies with transferable securities admitted to trading on a UK regulated market who use Member State GAAP, for financial years beginning on or after 1 January 2021 will need to prepare accounts in accordance with the law of the UK.
- The subsidiaries audit exemption will no longer be available for subsidiaries of EEA parents. This means that UK registered large or medium sized subsidiaries, with an immediate EEA parent, will need to have their accounts audited for financial years that begin on or after 1 January 2021. This will also apply to UK registered small subsidiaries that cannot otherwise access the small companies audit exemption.
Actions: Be aware of changes in accounting and auditing procedures that may impact your firm. This is of specific relevance to EEA parent or subsidiary firms.
Product Liability
- Under the current UK and European law the Manufacturer is liable to the Customer and any third parties for all product liability and safety in respect of a good.
- This changes under the EU Withdrawal Agreement Act 2020, irrespective of a deal, where the party liable for product liability and safety of goods is the “person established in the United Kingdom that places a product from a country outside the United Kingdom on the market”.
- In product safety legislation “placing on the market” is the first supply of a good, after the manufacturing stage has taken place, for distribution, consumption or use. There must be a written or verbal agreement (or offer of an agreement) to transfer ownership or possession or other rights in the product. This does not require physical transfer of the good.
- To note, a transfer of a good also takes place when a good is loaned or hired. In the case of the making available of a product taking place through renting, repeated renting of the same product does not constitute a new placing on the market. The product would need to be in compliance with the applicable legislation at the time the first renting takes place.
- For members, a way to establish if there is likely to be an impact is to check you have a contract for vehicle supply with a UK or EU based supplier. If agreements are with a UK based firm then in most likelihood liabilities will rest with that firm, not the member. If the contract is with an EU based supplier then all product liability and safety in respect of the goods in the UK will most likely shift to the member as they are the first to place it on the UK market. The point of physical transfer or delivery is immaterial.
- There are legal responsibilities beyond product liability for the party who placed the vehicle on market, which can be found here.
Actions: be aware of changes in product liability, if unsure of the impacts you should seek external advice. There may be ways to ensure liability remains with the manufacturer or mitigation measures, for example, insurance.
Series of interviews: Customs considerations for Northern Ireland
Interviews with Kevin Shakespeare, Director of Stakeholder Engagement, The Institute of Export & International Trade.
Rented / Leased vehicles driven by customers
In this video, Kevin covers the customers driving vehicles into Northern Ireland and the EU. A key message is that unless a vehicle itself is being moved to be used for commercial purposes (i.e. rented out in NI or the EU), there is no need for customs declarations on that vehicle. However, members should be aware of the obligations on their customers if they are using the vehicle for a commercial purpose (for example transporting furniture from GB to NI).
Firms moving vehicles they own
In this video, Kevin covers what procedures firms would need to follow if they move a vehicle (for commercial purposes) into either the EU or Northern Ireland. Key considerations are the temporary import rules available in the EU and that customs declarations have no grace period for Northern Ireland.
Delivering and selling cars
In this video, Kevin covers who has to fill in the paperwork around customs declarations. How there are different contracts which shift the responsibilities between different parties. Another area he covers is requirements to prove origin for used vehicles in Northern Ireland sold into the EU and the Trusted Trader system.
General advice
In this video, Kevin explains the relationship between VAT and customs procedure and the Northern Ireland VAT regime. He also highlights the need for firms to learn more about systems, increase readiness and negotiate with suppliers to know who is making the declarations.
Institute of Export & International Trade
An introduction to the Institute of Export & International Trade and signposting where members can find additional support.
Read more on...
General business advice
30 November 2020 update
Trading under World Trade Organisation (WTO) rules
Guidance has been updated to reflect the latest information about trading under WTO rules from 1 January 2021 if no trade agreement exists between the UK and another country.
WTO rules state that the same trading terms must be applied to all WTO members, unless there is a trade agreement between two or more countries. This is known as Most Favoured Nation (MFN)treatment. The UK currently trades with many countries on WTO terms, including China, India, Brazil and Saudi Arabia.
Resources to support businesses that trade with the EU
The Government has produced a series of videos explaining what businesses need to do to be ready for 1 January 2021, covering a range of subjects including exports and imports, customs, commodity codes and controlled goods.
The Department for International Trade is also hosting a series of one-hour webinars between 3 and 17 December tailored for UK businesses who import and export goods. You can register now for the next webinar on 3 December at 10:30 am.
HMRC is also hosting a series of webinars between 1 and 4 December to provide support with customs declarations.
New public sector procurement process
The Government has published the first of two Procurement Policy Notes, introducing the new ‘Find a Tender’ service, a new e-notification service that will be used to post and view public sector procurement notices from 1 January.
13 November 2020 update
New process for tendering for public sector contracts
From 1 January 2021, businesses will be able to use ‘Find a Tender’ online service to view public procurement notices published by UK contracting authorities. This will replace the requirement to publish notices in the Official Journal of the European Union.
You will still be able to use existing portals such as Contracts Finder, MOD Defence Contracts Online, Public Contracts Scotland, Sell2Wales and eTendersNI to view low value or location specific notices.
FCA invites members to ‘Brexit webinar’
The Financial Conduct Authority is inviting members to register to attend a webinar taking place at 10am on 18 November to discuss what the end of the EU Exit transition period will mean for firms. There will be presentations from specialists and an opportunity to ask questions.
The hour-long webinar is aimed at senior level staff in FCA-regulated firms who are involved in EU Exit preparations and the regulator is encouraging representatives from smaller firms to attend.
The regulator has also published Key requirements of firms on the FCA website to help prepare businesses for their new obligations when the EU transition period ends on 31 December 2020.
Driving abroad
The BVRLA has a dedicated Taking a Vehicle Abroad web page containing all the information that members and customers need to know.
Green Cards
The requirement for green cards, which is an international certificate of motor insurance, when a UK registered vehicle is travelling in the European Economic Area has been removed by the European Commission from 2 August 2021. However, to ensure this is communicated widely the UK insurance industry will continue to issue green cards until 2 September when a vehicle is going abroad. You can get Green Cards from the insurance company insuring the vehicle or trailer.
GB/UK stickers required on vehicles
Drivers need to display a GB sticker to the rear of the vehicle and trailer, even if the number plates include the GB identifier under the EU logo. Vehicles registered in Great Britain or Northern Ireland don’t need to display a GB sticker to drive in the Republic of Ireland.
From 28 September 2021, the distinguishing mark, (or national identifier), displayed on vehicles registered in the United Kingdom that are driven abroad will change from GB to UK. This means that from 28 September vehicles registered in the UK must display the letters “UK” when driven abroad (excluding the Republic of Ireland). The identifier can be incorporated in vehicle number plates (along with the Union flag) or as a separate sticker.
Guidance for hauliers and commercial drivers
The Government has published guidance in the form of a ‘Haulier Handbook’, as a one-stop-shop forhauliers and commercial operators working internationally, providing key information on how to prepare vehicles and goods to ensure a smooth process and help minimise disruption at the border.
Data management
30 November 2020 update
Government warns UK firms to act now on EU data flows
The UK Government is advising businesses to act now and work with EU/EEA organisations that transfer personal data to them to put in place alternative transfer mechanisms, such as Standard Contractual Clauses (SCCs) to ensure that data can continue to flow lawfully from 1 January.
The EU is currently conducting a data adequacy assessment of the UK and with only weeks to go until the end of the transition period, the EU has yet to signal that the UK’s data protection regime is adequate. If the EU grants a positive adequacy decision by 1 January 2021, it would mean that personal data can flow freely from the EU/EEA to the UK, as it does now.
13 November 2020 update
Managing data internationally beyond 1 January
Members who receive and transfer personal data to or from organisations abroad, including the European Economic Area (EEA) are being invited to register to attend a webinar taking place at 11am on Wednesday 18 November. This webinar will provide information on the actions you should take to prepare your business for new rules from January 2021 and will discuss The UK Data Prote ction regime from January 2021, Data Adequacy and Data Preparedne ss.
Experts from the Department for Business Energy and Industrial Strategy and the Department for Culture Media and Sport will be hosting the webinar and attendees will have the opportunity to ask questions. The BVRLA is keen to hear from members on issues relating to data preparedness and what the implications will be for members’ businesses should the EU not grant an Adequacy Agreement to the UK. Email BVRLA Senior Policy Adviser, Thomas McLennan with your views.
Trading online
Rules relating to online activities
Guidance has been published on the eCommerce Directive after the transition period, as rules relating to online activities in EEA countries may newly apply to UK online service providers who operate in those countries from 1 January 2021.
The eCommerce Directive currently allows EEA online service providers to operate in any EEA country, while only following relevant rules in the country in which they are established. This framework will no longer apply to UK providers as the UK will have left the EEA. Firms are being advised to prepare for these changes now.
13 August 2020 update
.EU domain names
From 1 January 2021, you’ll no longer be able to register or renew an .eu domain name if your organisation, business or undertaking is established in the UK but not in the EU/European Economic Area (EEA), or you live outside of the EU/EEA and are not an EU/EEA citizen. Businesses with an .eu domain name should check eligibility and, if necessary, discuss with your local domain name registrar whether to transfer your internet presence to another top-level domain.
Customs and the movement of goods
30 November 2020 update
Guidance for hauliers and commercial drivers
The Government has published guidance in the form of a ‘Haulier Handbook’, as a one-stop-shop forhauliers and commercial operators working internationally, providing key information on how to prepare vehicles and goods to ensure a smooth process and help minimise disruption at the border.
The Government has published a list of customs agents and fast parcel operators who can help submit customs declarations.
29 October 2020 update
Preparing businesses who move goods between GB and EU
HMRC has written to VAT-registered businesses highlighting actions that they need to take to prepare for new processes for moving goods between Great Britain and the EU from 1 January 2021.
They explain what businesses need to do to prepare for new processes, including:
- making sure they have a UK Economic Operator Registration and Identification (EORI) number
- deciding how they will make customs declarations
- checking if their imported goods are eligible for staged import controls
These actions will not change regardless of the outcome of the Government’s negotiations with the EU. The updated Border Operating Model provides further detail on how the GB-EU border will work and the actions that traders, hauliers and passengers need to take.
Guidance updated for international road haulage
Guidance on carrying out international road haulage has been updated explaining what UK goods vehicle operators need to do to ensure that they are adhering to the rules when carrying out international road haulage as of 1 January 2021.
The guidance provides advice on what documentation is needed, including VE103 certificates when taking rented or lease vehicles abroad.
Applications open for ECMT permits on 2 November
The Government has updated its guidance on International road haulage permits: ECMT permits 2021 explaining the criteria for allocating ECMT permits and confirming what hauliers need to do as new rules will be in place from 1 January 2021 for those who carry goods to, from or through the EU.
Hauliers will be able to apply for a permit from 2 November via a digital application system and are advised to read the information on Gov.uk explaining what ECMT permits are for as well as the updated guidance.
22 October 2020 update
Government launches plans to keep trade flowing
The Department for Transport has announced its plans to keep trade flowing by minimising the risk of disruption at the end of the transition period.
A new communication campaign targeting hauliers through radio, press and digital advertising is being launched to make sure that hauliers are aware of the upcoming changes and have the correct documentation, reducing the risk of delays at the border.
It will be mandatory for all heavy goods vehicles (HGVs) using the Short Straits channel crossings to obtain a digital Kent Access Permit (KAP) and hauliers are being encouraged to apply for a European Conference of Ministers of Transport (ECMT) permit as a precautionary measure. Following the end of the transition period, ECMT permits may be needed to support hauliers accessing the EU.
30 September 2020 update
Government warns of potential delays affecting the flow of goods
The Government has published a Reasonable Worst Case Scenario outlining the potential disruption to freight travelling between Great Britain and the EU at the end of the transition period, stating that on 1 January 2021, 40-70% of trucks travelling to the EU might not be ready for new border controls.
The lack of capacity to hold unready trucks at the French ports, or to turn away freight prior to boarding in the UK, could reduce the flow rate to 60-80% of normal levels.
While the assumption is that the risk of long queues and a constraint to flow would diminish in the first three months, the actual flow of goods would depend on the length of time it takes those exporting/importing businesses that were not ready on 1 January to get ready for new requirements. There also remains a risk of continuing disruption caused by Schengen controls being applied rigorously at the juxtaposed controls at the Port of Dover and Eurotunnel.
17 September 2020 update
Government writes to businesses about new trade arrangements with the EU
HMRC has written to businesses about the new trading arrangements when the UK leaves the EU single market and customs Union, highlighting actions that need to be taken now to continue trading with the EU from 1 January 2021, including:
- Make sure you have a GB EORI number
- Decide how you’re going to make customs declarations
- See if your imported goods are eligible for staged controls
- Decide how you will account for import VAT when you make a customs declaration
- Check if Import VAT is due at the border
- Check the Controlled goods list to see if you need to complete declarations from January. If your goods are not on the list you can choose to delay import declarations until July 2021
- Check the government’s tariff tables and consider how your trade will be affected
- Sign up for the new Trader Support Service, if you move goods between Great Britain and Northern Ireland or bring goods into Northern Ireland from outside the UK
Video guidance for businesses who are brand new to customs
HMRC has created a series of short videos aimed at helping those businesses brand new to customs:
- What is Customs?
- What you need to know to bring goods into the UK?
- What you need to do to send goods out of the UK?
The Government has published a list of customs agents and fast parcel operators who can help submit customs declarations from 1 January 2021.
20 August 2020 update
Preparing for import and export requirements
From January 2021, traders who are exporting goods to the EU will need to make export declarations and ensure they have the right certificates and licences required for entry.
In order to fulfil the import process, traders will need to:
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Have a GB Economic Operator Registration and Identification - or EORI number before moving their goods.
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Have the commodity Code of their goods – which will be needed to make a customs declaration and of course to calculate duties on an import.
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Know the customs value of their goods – the rules for which are based on the WTO valuation agreement.
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Have considered whether they are able to, and would benefit from, using any of the available simplifications or facilitations, including deferring customs declarations for standard goods.
Chancellor of the Duchy of Lancaster Michael Gove made a statement in the House of Commons confirming that in order to give businesses more time to adjust, border controls would be introduced in three stages up to 1 July 2021.
13 August 2020 update
Phased approach to new border controls for trade
As of 1 January 2021, the UK will operate a full, external border as a sovereign nation. This means that controls will be placed on the movement of goods between Great Britain and the EU. To afford industry extra time to make necessary arrangements, the UK Government has taken the decision to introduce the new border controls in three stages up until 1 July 2021.
The Border Operating Model provides clarity and certainty for the border industry and businesses, including technical detail on how the border with the EU will work after the transition period and the actions that traders, hauliers, ports and carriers need to take.
Emission regulations
22 October 2020 update
UK will mirror EU CO2 targets post EU Exit
The Government has confirmed that the UK will mirror the EU CO2 regulations for UK registrations from January 2021.
As of next year, registrations in the UK will no longer count towards manufacturer’s EU CO2 targets. This means that manufacturers will have to meet ambitious CO2 targets in the UK after the end of the transition period, with mirrored fines and planned future reductions of 15% for cars and vans by 2025, and 37.5% for cars and a 31% for vans by 2030.
The BVRLA remains concerned about whether manufacturers will maintain an adequate supply of electric vehicles into the UK beyond January and is in regular discussion with Government on this matter.
Keep in touch
The BVRLA is keen to hear the views of members on matters relating to EU Exit policy that can support the vehicle rental, leasing and fleet industry. Members can provide input and insight by emailing the BVRLA policy team, who liaises regularly with Government to ensure that the views of the industry are heard.
EU Exit Policy Asks
29 October 2020 update
Automotive industry highlights cost of no deal
The SMMT estimates that a 10% World Trade Organisation (WTO) tariff would increase the cost of UK-made electric cars exported to the EU by an average £2,000 per vehicle. In September, production of the latest battery electric vehicles (BEVs) grew 37.0% year-on-year, with the overwhelming majority (76.6%) exported, many of these into the EU.
Last week, the BVRLA wrote to policymakers urging them to get a free trade deal done, stating that failure to do so would be disastrous for the fleet industry, estimating that tariffs imposed on new car and van imports from the EU would add £2.1 billion to the fleet sector’s annual new car costs. Tariffs would also risk hindering a green recovery with fleets needing to spend an extra £2.8 billion on battery electric cars over the next five years.
22 October 2020 update
Government warned of the impact on fleets of having no free trade agreement
The BVRLA has written to senior Government officials warning of the estimated costs that will burden the fleet industry if the UK and EU fail to reach a free trade agreement.
With 72% of fleet cars and 68% of vans estimated to be sourced from the EU, the impact of not having a free trade deal would be disastrous for the fleet industry. Tariffs would add £2.1 billion a year to the UK fleet sector’s car renewal costs and £310 million a year to the sector’s van renewal costs, according to industry figures.
In a letter sent to senior ministers and policymakers, the BVRLA has asked the Government to:
- Continue to work with the EU to reach a deal
- Protect order banks by confirming that, in the event of no EU-UK free trade agreement, there will be a waiver on the tariffs on cars, vans, HGVs and parts ordered before the end of the year which arrive after 1 January 2021.
- Implement a tariff review process now for certain key sectors to request tariff level reviews post 1 January 2021 once their full impact is apparent.
- Create a process now for firms to apply for temporary tariff waivers on specific products when there is not sufficient UK supply.
- Support the BEV market by providing additional tax incentives and grants that will maintain the supply and cost competitiveness of BEVs in the UK.
17 September 2020 update
Automotive industry unites in calls for free trade deal with EU
The SMMT has joined organisations representing EU and UK vehicle and parts manufacturers to call for urgent agreement of an ambitious free trade deal before the end of the transition period in just 15 weeks’ time.
New calculations show the catastrophic impact of ‘no deal’ with World Trade Organisation (WTO) tariffs putting production of some 3 million EU and UK built cars and vans at risk over next five years.
‘No deal’ would mean combined EU-UK trade losses worth up to €110 billion to 2025, on top of around €100 billion in lost production value so far this year because of the Covid-19 pandemic.
Covering the cost of the tariffs, far higher than the small margins of most manufacturers, would almost certainly need to be passed on to consumers, making vehicles more expensive, reducing choice, and impacting demand. Automotive suppliers’ products will also be hit by tariffs. This will make production more expensive or will lead to more imports of parts from other competitive countries.
The BVRLA understands that over 70% of fleet and business car purchases are built in the EU - all of these are at risk.
The association’s members will have to pay the tariffs or pass them on to their customers. This would be disastrous for fleets and would seriously slow the decarbonisation agenda.
UK fleets are not in a position post-Covid to absorb these costs and automotive demand will stall.
It will also become more expensive for essential user fleets to operate and significantly increase the cost for fleets looking to do the right thing and replace their vehicles with Battery Electric Vehicles.
The tariffs on parts will impact the whole life cost of vehicles and have impacts on contracts that members have already signed. Orders are already in the pipeline which would land in 2021 and these must not be hit with a tariff.
The BVRLA is asking for a deal with no tariffs and ensuring an easy flow of vehicles and parts through the border.
