EU Exit – Potential Day One No Deal (D1ND)
Implementation of Transitional Simplified Procedures (TSP).
Following the announcement made by HMRC on 22nd March 2019 that they have extended Transitional Simplified Procedures (TSP) to all UK Ports, MCP is pleased to be able to publish the following solution guidance, in order to assist Cargo Brokers and Traders in utilising TSP at UK Ports operating the Destin8 Port Community system.
All import consignments at Destin8 inventory linked locations are manifested by the Cargo Broker, the manifest forms the Summary Declaration for HMRC purposes. Each consignment is allocated a Unique Consignment number (UCN). Currently EU status can be indicated on Destin8 by 2 methods:
- Manifest status ‘C’ or ‘EX’ – included in the manifest by the Cargo Broker, or updated against the manifest as a manifest amendment.
- Transaction RRE – updated by either the Cargo Broker, or more commonly the nominated clearance agent, once the consignment has been manifested by the Cargo Broker as status unknown (TX) or T2.
Both methods result in automatic clearance of the consignment on Destin8. In the event of a Day One No Deal (D1ND) Cargo Brokers should, by default, use 'TX' Status on the Destin8 manifest instead of 'C', for EU cargo. An importer/forwarder/customs agent, is then required to submit a frontier declaration as they would for Rest of World cargo, or remove the goods from the port using Internal Movement in Temporary Storage (IMiTS).
The two solutions for TSP usage on Destin8, which are considered acceptable by HMRC are:
- To allow the continued use of ‘C’ status by the Cargo Broker against the manifest.
- The use of transaction RRE by the Cargo Broker or the Nominated Agent.
Use of either solution in the event of D1ND must be where there is ‘reasonable belief’ that the Importer has registered for TSP and where the goods are not classified as controlled goods. ‘Reasonable belief’ is understood to be, knowledge that the Importer has registered for TSP.
Unless Local Holds have been set, use of either of these solutions will result in the immediate release of the UCNs concerned. If the vessel has not arrived, the release will be held until the Vessel Arrival has been performed. Further details of the two solutions are outlined below.
Solution 1 – Cargo Broker Manifesting community status consignments
The Cargo Broker may continue to use a ‘C’ status on the Destin8 manifest. By doing so, they will be confirming they have reasonable belief that the Importer is registered for TSP and that the imported goods are not ‘controlled’. Under TSP for non-controlled goods, the customs declaration will be made within the commercial records when the goods cross the border and a supplementary declaration will subsequently be lodged, by the deadline stated by HMRC.
- Where the goods are listed as controlled goods, TX status will be required on the manifest, as the importer or their agent will be required to lodge an inventory linked simplified frontier declaration (where the declaration includes the UCN).
- ‘C’ Status is currently defined as “EU Status goods (proof may be necessary)”
Solution 2 – Cargo Broker or Nominated Agent updating Destin8 using RRE
Transaction RRE can be used by either the Cargo Broker or the Nominated Agent where a CSD other than ‘C’ or ‘EX’ has been declared by the Cargo Broker on the manifest.
When using Transaction code RRE on Destin8 to identify a UCN as being under TSP (but only applicable for non-controlled goods) by declaring Removal code 8, defined as acceptable by HMRC as:
Removal Code 8 – should only be used when importing goods from the EU into the UK (including goods travelling via the EU from the rest of the world, providing they have initially cleared EU customs formalities). By using the RRE transaction with a code 8, you will be confirming you have reasonable belief that the Importer is registered for TSP and that the imported goods are not ‘controlled’. Under TSP the customs declaration will be made within the commercial records when the goods cross the border and a supplementary declaration will be lodged by the deadline stated by HMRC.
To enable a Nominated Agent to make use of transaction RRE on Destin8, they will need to hold a Destin8 badge
at the appropriate Port. Importers/Customs Brokers/Freight Forwarders/Agents are all able to subscribe to the
Destin8 Port Community System and should contact the MCP helpdesk for more information.
Links to more information:
- HMRC outlines extension of Transitional Simplified Procedures
- Register for simplified import procedures if the UK leaves the EU without a deal
- List of controlled goods for Transitional Simplified Procedures