Trade Compliance News - July 2024
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Freya Jane
- Director of Customer's Success
UK Officials Warn of October Port Chaos as EU Biometric Plan Looms
From 6 October all non-EU nationals will be required to enter biometric and fingerprint technology under a new European entry/exit system.The introduction of the new EU entry/exit system, scheduled for October, could cause further disruption to the supply chain.
“UK government officials fear tailbacks and chaos at UK ports in three months’ time unless the EU again delays plans to introduce a biometric travel registration scheme requiring facial and finger scanning.”
The scheme’s introduction is seen as a pivotal moment when British citizens – as opposed to businesses – will suddenly feel the impact of the end of free movement on their daily lives. Part of the problem is that an app prepared by the EU and Frontex that is supposed to streamline the process of registering individual data is not yet ready.
Traders and Government Could be Missing Out on Revenue Due to Incorrect Commodity Codes Reports IOET
Customs classification hinges on using the correct commodity code for your product and is a key requirement for any cross-border transaction.
Commodity codes are used in the completion of customs declarations and identifying the correct code is crucial for duty calculations and compliance.
However it is shocking that two in every five businesses are using the incorrect commodity codes. This means there are potentially thousands of businesses that aren’t paying the correct levies on their goods. These goods movements are also at a higher risk of being delayed if they have incorrect paperwork, and these businesses could even be liable to being fined by HMRC.
Compliance is key, as HMRC can conduct customs audits at any point, giving it access to a business’ documentation relating to its goods movements for a period of the previous three years.
This slump isn’t limited to clothing – it’s contributing to an 18% drop in overall non-food good exports to the EU single market. Worryingly, this decline comes despite a booming European e-commerce market, suggesting UK businesses are missing out on a golden opportunity.
Learn more about product classification here
New Business and Trade Secretary Hits the Ground Running
Jonathan Reynolds, the new business and trade secretary, yesterday (9 July) launched his department’s engagement with industry, saying that “there is no time to waste”.
The four key priorities he pointed out were :
– Delivering an industrial strategy that drives growth
– Supporting small businesses
– Resetting trade relations and boosting UK exports
– Making work pay
The King’s Speech: Unveiling its Impact on Trade
What does Labour’s first king’s speech set out ?
One of the key points is to reset the relationship with European partners and work to improve the United Kingdom’s trade and investment relationship with the European Union.
Additionally, ministers will seek a new security pact to strengthen cooperation on mutual threats faced by the United Kingdom and the European Union.
Departments are working on more than 35 bills to deliver an ambitious parliamentary session that will be built on a bedrock of economic security, to enable growth that will improve the prosperity of our country and the living standards of working people.
Legislation will include a bill to enforce tough new spending rules, designed to ensure economic growth, while avoiding the chaos which left families with spiralling bills and wreaked misery on people’s lives.
To ensure nobody can play fast and loose with the public finances ever again, this new bill will strengthen the role of the Office of Budget Responsibility, meaning significant fiscal announcements must be properly scrutinised and that taxpayers’ money is respected. Get insight
Customs Fraud Landmark Case
UK food export volumes have plummeted to levels not seen in the past 15 years, as reported by the Food and Drink Federation (FDF).
The European Public Prosecutor’s Office (EPPO) in Malta has charged 11 suspects, including six customs officers and three customs operators, in a significant customs fraud and corruption investigation. The case involves under-declaring the value and weight of imported goods from China (clothing, shoes, bags), causing significant financial damage to both Malta’s and the EU’s budgets. It is alleged that this was done with the complicity of customs officials, who are believed to have been offered money to refrain from correctly carrying out their duties.
This marks the EPPO’s first case brought to court in Malta. Read more
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About iCustoms
iCustoms is an all-in-one solution helping businesses automate customs processes more efficiently. With AI-powered and machine-learning capabilities, iCustoms is designed to streamline your all customs procedures in a few minutes, cut additional costs and save time.