Policy paper

Summary of customs simplification measures: December 2023

Published 7 December 2023

The government has set out the next steps on a package of measures to simplify customs import and export processes for traders, while upholding the UK’s high regulatory and security standards at the border.

This publication provides more detail on each of the measures. This work reflects views of traders and the border industry, gathered through a detailed programme of engagement launched after Spring Budget 2023. The government would like to thank respondents for the comprehensive feedback they provided, which has been considered in detail.

The government has also published a number of response documents for measures that were the subject of formal consultation or call for evidence.

Introducing a voluntary standard for customs intermediaries

At Spring Budget 2023, the government announced that it would consult on the introduction of a voluntary standard for customs intermediaries. 99% of traders use an intermediary to support them with their customs declarations. A response to the consultation has now been published. The government will proceed to develop a voluntary standard for customs intermediaries.

The government believe that the standard should be co-designed with industry, through a comprehensive and credible process to ensure maximum effectiveness. Responses to the consultation overwhelmingly agreed with these principles.

The government therefore intends to work with the British Standards Institution, the UK’s national standards body, to develop a robust standard that is suitable for certification. This process will begin in Spring 2024, and we welcome continued constructive engagement with industry throughout.

Introducing a voluntary standard for customs intermediaries - consultation and summary of responses.

Simplifying customs declarations

Following a call for evidence announced at Spring Budget 2023, the government will simplify customs declarations for both imports and exports by reducing the number of data fields traders have to complete by up to a quarter, decreasing the burdens that these declarations impose on UK business and trade while ensuring key government priorities at the border are delivered.

The government will maintain an ongoing dialogue with stakeholders on the timeline for implementing these changes and continue to draw on the responses received to the call for evidence to deliver maximum benefits for traders of all sizes. This dialogue will include considering the wider role that technology can play as part of HMRC and wider government border transformation programs.

The future of customs declarations - call for evidence and summary of responses.

Strategic review of Temporary Admission

Temporary Admission is important for many sectors including the arts, sport and tourism as it allows goods to be imported temporarily without paying import duties. The government is exploring options to simplify and improve the Temporary Admission procedure available for individuals and businesses to help reduce the administrative burden on traders and facilitate movement of imported goods to support wider economic activity.

Responses to a call for evidence launched earlier this year confirmed that there is likely to be scope to improve eligibility criteria, conditions of use and timing requirements either across the board or in respect of specific sectors. We will engage further with stakeholders on improvements to Temporary Admission in early 2024.

Bringing goods into the UK temporarily - call for evidence and summary of responses.

Modernising Authorisations

As announced at Spring Budget 2023, the Modernising Authorisations project will streamline and digitise the government’s customs and excise authorisation processes. HMRC’s offer to traders will be improved by streamlining the number of customs authorisation processes from 42 standalone authorisations to 5 customs groups.
Since Spring Budget 2023, we have:

• reviewed authorisation application forms systematically, delivering a 30% reduction in questions asked during the application process - this will improve the experience and reduce the administrative burden of applying for authorisations
• worked with industry partners to co-design Modernising Authorisations policy and delivery proposals, including new processes for authorisation reviews and renewals and testing our “once and done” authorisation data approach

We will now:

• update and introduce new authorisation guidance as part of the delivery of Modernising Authorisations -introduce legislation in 2024 to deliver these changes
• continue to co-design Modernising Authorisations with industry, making sure the new system meets the needs of traders

The project will commence delivery of a new customer portal in 2024 and plans to conclude delivery in 2025.

Changes to Customs Guarantees for Special Procedures, Temporary Storage and Duty Deferment

The government will make changes later in 2024 to allow more traders to access customs procedures which allow them to delay duty payment without a requirement to pay for a financial guarantee.  We will also make it easier to apply for guarantee waivers.

When the changes are put in place, guarantees will not be required from approved traders for duty deferment accounts below £30,000, tripling from £10,000. This could save thousands of deferment users up to £2,800 each annually and improve their access to working capital. 

Guarantees will only be required from a small minority of traders authorised for special procedures and temporary storage. 

Transit policy simplifications

Following extensive engagement with businesses, the government is announcing 3 improvements to the transit process to make it simpler, cheaper and more accessible. 

• From 7 December 2023, authorised consignees will no longer be required to physically unload goods at their approved locations to end a transit movement, providing the movement originated at an authorised consignor’s approved location and the goods were moved under a seal
• From 7 December 2023, we will remove the requirement to submit an export declaration when goods under transit are loaded onto ships, trains or planes in GB for use or consumption on board, providing evidence of the goods leaving GB is retained
• In 2024, as part of the Modernising Authorisations project, the government will introduce a simple digital process to allow authorised consignors to quickly and easily add a client’s premises to their authorisation to start transit movements from these locations. This process will make clear the terms and conditions that will apply to these locations. Further information on this will be published in the new year.

Business engagement will continue on two additional transit simplifications. These focus on making it easier for authorised consignors to access customs comprehensive guarantee cost reductions, and easier to start transit movements from their approved locations when departing from a number of our major ports.