Changes starting the 1st of January 2022
On December 31st, the option to delay customs declaration for up to 175 days will no longer be available. At the start of the new year, you will need to make full customs declarations. It is important to start prepping for these changes sooner rather than later.
Custom declarations are required if you have moved or will move goods from the EU to GB this year. If you are using a third party, such as a freight forwarding company, you need to agree with them on who is making the declaration.
Furthermore, you cannot use delayed declarations if you are importing controlled goods that are not compliant with free circulation. This being said, if your goods have are non-controlled and are considered as free circulation (EU free circulation goods have been manufactured in the EU or duties have been paid) you can decide to make the full declarations upon arrival in GB or at a later time.
Choosing to delay will mean you will need to enter the goods in your records (EIDR) and provide full details in the supplementary declaration, within 175 days after the goods have arrived. These rules will change on January 1st 2022, you will no longer have the option to delay.
Government issues short term visas for EU HGV drivers and poultry workers
After a long struggle of shortage of lorry drivers, the UK has finally decided to issue short term work visas for EU workers. The government is now allowing 5000 lorry drivers and 5500 poultry workers to enter the country before Christmas.
The transport secretary explains that the government is doing everything they can to help the situation, but it isn’t all their responsibility. Companies have a big role; they need to work hard to retain new drivers by improving working conditions and increasing salaries.
This being said, the head of the European Road Haulers Association states that this isn’t enough. Lorry drivers are requested everywhere in Europe, resulting in an overall increase in salary and improvement of working conditions. There needs to be a greater incentive for EU drivers to go through all the hassle of customs and border checks as well as the uncertainties of Brexit.
PM response to labour shortages
After a period of shortages and struggles, the Prime Minister has denied that the UK is facing a supply chain crisis explaining that the difficulties were caused by stresses and strains.
Johnson explains that for the past 25 years the business approach had caused suppression of pay and working conditions due to low-cost immigration.
As of now, only 127 divers have applied for a temporary visa over the 5000 offered until March to which PM said this is an indicator of the global driver shortage.
The Road Haul Association spoke up towards this statement explaining that the reason for the limited number of visas is due to their short-term nature. As of the 4th of October, 100 military drivers started making fuel deliveries.
EU drivers bargain for UK return
Since EU drivers are only permitted a visa for 3 months, businesses are needed to increase salaries by up to 1/5 more than British drivers. Logistics UK says that this is not enough, and the short duration makes it impotent.
Furthermore, companies bringing in their own drivers will be required to provide them with return travel, medical and accommodation bills in addition to their increased salaries.
Supply chain disruptions are also affecting the agriculture industry. With labour and driver shortages, vegetable picking has been disrupted causing crops to be left to rot. NPA (National Pig Association) states that, due to labour shortages and CO2 in abattoirs, more than 100,000 pigs are backed up on farms.
More industries are being affected by these changes. Staffing costs and short-term visas for bankers are topics of worry for City of London bosses.
Fast fashion companies are also experiencing delays in their supply chain with increased costs and logistical difficulties. Boohoo explains that even though sales had increased by 20%, profits were grossly affected by duties and extra checks at customs.
Extra documentation needed UK-EU
Starting from the 1st of October, an EXS declaration is required for empty pallets, vehicles and containers that are being moved under transport contract to the EU or travelling with transit documents. This responsibility falls with the operator of active means of transport.
All consignments from GB to EU states require EXS, those covered by combined export and safety and security declaration are exempt.
EORIs now need to be included when applying for an export licence
For controlled and trade sanctioned goods, licences are required. In order to apply for a licence, businesses can use the government’s online system, SPIRE . This will be required for businesses moving goods between:
-GB and EU
- GB or NI and non-EU