Important Customs Duty changes as we look ahead to 2022 and beyond

Important Customs Duty changes as we look ahead to 2022 and beyond

Over the next few months there will be some important customs duty changes that may have an impact upon your organisation and business activity. Lucy Sutcliffe, Director of National Customs Duty, outlines some of the key customs duty changes that will need to be taken into consideration as we look ahead to the new year and beyond.

The ‘Real’ Brexit

On 31 December 2021, the delayed customs declaration system for goods imported into Great Britain from the European Union (EU) is due to end. Some of the other temporary customs arrangements and easements which were introduced on 1 January 2021 are also due to finish on this date. As a result, we expect that the administrative burden to import goods could become more complex for many businesses. 

UK Product Safety Labelling

The ‘UKCA’ (UK Conformity Assessed) mark will replace the CE product labelling the UK used while we were a member of the EU. The new UKCA marking will apply from 1 January 2023 for most products and goods placed on the domestic market in Great Britain. Businesses will also need a UK address on certain imported products for ‘traceability’ purposes.

Goods which are placed on the domestic market in Northern Ireland will have to meet separate conformity requirements.

Import Controls for Products of Animal Origin

New import controls will be introduced for a range of products from 1 January 2022 and 1 July 2022, depending on the type of products. The affected products include food and drink for human consumption derived from products of animal origin, live animals (including equine), germinal products, animal by-products and high-risk food and feed not of animal origin. The additional controls will include health certificates, import licences, commercial documentation and in some cases an IPAFFS/DEFRA registration to provide a notification of anticipated imports.

The Island of Ireland

Earlier this year, the UK proposed a new protocol to replace the current Northern Ireland Protocol which governs post-Brexit trade with Northern Ireland. In October, the EU published its response to the UK’s proposed new text and negotiations are currently ongoing. The result of these negotiations will undoubtedly impact businesses which move goods to and from Northern Ireland. At Azets, we will provide more information on this as soon as it becomes available.

Plastic Packaging Tax

From 1 April 2022, the UK will introduce a new Plastic Packaging Tax. This will apply to plastic packaging manufactured in, or imported into the UK, that does not contain at least 30% recycled plastic. There will be a tax exemption for manufacturers and importers of less than 10 tonnes of plastic packaging per year.

However, businesses may need to register for the Plastic Packaging Tax even if they are not liable for the tax, depending on their business activity, and keep a record of the packaging they manufacture or import.

Get in touch

At Azets, we provide assistance and advice to support you and your business and ensure your procedures are efficient and compliant across the various customs matters. 

If you think you may be affected by the custom duty changes discussed above or you would like to discuss any potential liabilities or responsibilities in further detail, please get in touch with your local Azets advisor or directly contact Scott Craig, National Head of VAT.