ACITA Midlands meeting minutes

ACITA Midlands meeting Minutes

21st June 2017 at The Grange, Southam, Warks.

BREXIT Update

Questions were raised around the timeliness of the implementation of CDS and BREXIT.

CDS is expected Q1 2019 which is an obvious clash with BREXIT timescales. There is talk that BREXIT could potentially bring 4-5 times more customs entries. CDS also includes extra dataset requirements which could also have a knock on effect to traders.

It was thought, in answer to the question "Does ACITA have any representation at the CDS meetings?" that Des Hiscock attends the JCCC meeting relating to CDS.

The consensus was that CDS dataset requirements would not change anything in relation to BREXIT because UK still has to comply with UCC up until we BREXIT.

It has been rumoured that HMRC intend to adopt the EU tariff and it was generally felt this would be a good thing.

A news article brought to the group's attention relating to SMMT (BBC news – Carmakers Call for Transitional EU Deal 20/06/2017) states ‘the EU is by far the UK’s biggest automotive export market, buying more than half of its finished vehicles – four times as many as the next biggest market’. Most people agreed that the biggest fear was that in two years there would be nothing in place regarding trade deals etc. The group thought that trade deals would be there eventually but not in time for 2019. Agreements regarding EU/UK FTA’s could take a relatively short amount of time to negotiate.

The FTA has highlighted the fact that they expect there to be issues at UK ports. Businesses will suddenly have to face extra checks, controls and delays at borders with little time being given to allow adaptation to the new rules and arrangements.

It has been calculated that for every minute a truck is delayed at a port it costs £3.50 and there are 4 million trucks that go through Dover port each year which at the moment do not have to declare entries so:

  • What will happen when BREXIT takes effect?
  • Does this mean AEO operators will have a much better chance of freight being cleared quicker?

HMRC are not commenting at the moment on anything in relation to BREXIT

What will the changes mean for CHIEF? It was felt that it should be relatively straight forward and that the pref indicators will just need to be switched off in CHIEF to cope with loss of FTA’s/Pref agreements.

Loss of Europa systems will also have an effect on traders such as Market Access database, REX system etc.

FTA/GSP update

EU - Canada

CETA agreement  due to go live on 1st July but still not fully ratified – see this link

Sri Lanka GSP+ status granted from May 19th 2017

EU Grants Sri Lanka GSP+ status - HMRC have not published a CIP. In short better duty rates mostly 0%  - but no change to origin conditions.

CIP 7 (2017) – Changes to GSP beneficiary countries

Tonga – was to be removed from GSP status wef 01/01/2017 however in 2016 the World Bank classified Tonga as a middle income country and therefore it has been re-instated to the list of beneficiary countries wef 01/01/2017. No interruption to Tonga’s entitlement for eligible goods benefitting from GSP pref.

Ukraine – Remove from GSP from Jan 2018 as there is now FTA between the EU and Ukraine giving better tariff pref than GSP.

UCC Re-authorisation triggers

CIP 4 (2017) issued 02/03/2017 which lists any changes to companies that will or will not trigger UCC authorisation approval.

One trader shared an experience whereby they had been told they could not update commodity codes on a CCC IP authorisation by CITEX. When they questioned it with HMRC a new authorisation was not required and CC changes do not trigger a new authorisation even though this is not stated in the CIP.

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