Tariffs

from Product Media magazine - March & April 2021

News

SECURING A TA RIFF RULING – IS IT WORTH THE WAIT?

The BPMA is working closely with Government departments to help members to navigate new processes and seize opportunities post-transition

January 2021 will go down in history as the month the UK’s transition from the European Union ended with a big bang.

With many in our industry having faced the toughest month they have ever experienced, the clarity on rules and how they apply to our sector remains both challenging and expensive.

Hard to classify

While some areas are starting to become clearer, the land of opportunity hailed by HM Government, may feel a long way from the reality of business in these last few months. Typically, many goods in the sector fall under the ‘hard to classify’ sector and Government teams are increasingly directing us to seeking a ruling on certain goods to avoid issues through the to inward processing to avoid complex customs issues. Recent commitment from Government teams centred on ‘Business Readiness’ has told the BPMA they are fully committed to supporting every sector.

BPMA CEO Carey Trevill commented: “It is encouraging to see Government teams engaging so extensively albeit later in the process than everyone would have liked. It is clear the nature of our sector is ‘atypical’ and with elements of creative industries, manufacturing and more, we don’t fit neatly into one segment.”

Clarification for the sector

She added: “With much greater understanding of our sector capabilities and importantly our contribution to the UK economy, we have an accelerated programme now in place with these teams. We have welcomed input from representatives at VAT stakeholder engagement, the Business Energy & Industrial Strategy team, and The Institute of Export helping clarify issues for the industry. ”

Working closely with several Government teams for advice, both BPMA and its members have found advice has however differed when looking at tariffs and rules of origin. Flagging these issues to the Business Energy & Industrial Strategy team, the recommendation has been for the industry to secure special rulings for goods in certain circumstances and consider how inward customs processing could help ease the flow of goods.

Advance Tariff Rulings

Gaining an Advance Tariff Ruling may be just the answer many firms are looking for. Classifying goods can take some time; up to 120 days is the guidance given by the Government but the benefits of a ruling provide a reference number that uniquely identifies your goods and an explicit description of your goods which can be used to easily identify them at the frontier.

To apply you will need:

• a Government Gateway user ID and password – if you do not have a user ID, you can create one when you apply • an Economic Operator Registration and

Identification (EORI) number that starts with GB • detailed information about goods, which can vary depending on what goods are • provide brochures, manuals, photographs and samples where appropriate

You can also let HMRC know what you think the commodity code should be. You will however need to apply separately for each type of goods needing a decision.

Find out more

Email the Tariff Classification Service on tariff.classification@hmrc.gov.uk to find out more or visit www.gov.uk/guidance/ apply-for-an-advance-tariff-ruling and apply online.

The changes are here to stay and with the BPMA and majority of trade bodies putting pressure on Government to help illustrate sector examples, the expectation of faster, clearer guidance is promised. Visit www.gov.uk/topic/business-tax/ import-export for more guidance and direction.

If you are a BPMA member, detailed support and guidance is being provided on this and other import/export topics. Contact the BPMA for more information via enquiries@bpma.co.uk or view their events page via bpma.co.uk/events for the latest online support.