In an official statement yesterday morning, Jesse Norman, Financial Secretary to the Treasury, confirmed that from January 1st 2021, the way businesses trade will change, and they need to prepare for life outside the EU, including new customs arrangements, including for example, the need to make customs declarations to import and export goods between the UK and the EU once the UK is outside of the EU’s customs territory.
He also confirmed that the government has extended the period for businesses to apply for customs training grants to help them scale up and get ready, which the British International Freight Association has welcomed on behalf of its members, as explained in the following press release, which I hope is of interest to your readers.
Press release, February 10, 2020
BIFA welcomes deadline extension for Customs grant scheme applications
The British International Freight Association (BIFA) welcomes the news that HM Revenue and Customs (HMRC) has extended the deadline for businesses to apply for customs support funding to 31 January 2021.
The scheme, first announced in September 2019, had been due to close on 31 January 2020. To date, applications have been made for around £18.5 million out of a possible £26 million – meaning there is at least £7.5 million left to claim from HMRC.
Robert Keen, director general of BIFA, the trade association for UK freight forwarding and logistics companies, says: “During many meetings with both HM Treasury and HMRC over the last three years, BIFA has highlighted the concerns of our members regarding the capability of the Customs brokerage sector to increase capacity, at a time when that sector already faces a shortage of staff of suitable quality.
“We emphasised that it could take up to a year to train staff to be fully conversant to prepare a range of basic Customs declarations, even if there was a sufficient number of trainers to train those staff, as well as relevant courses for them to attend.
“So, the news of a further extension to the deadline for this funding is very welcome, and we are encouraging our members who believe they might benefit to apply; if they have not done so already.”
BIFA notes that grants are being made available for all customs intermediaries and traders completing customs declarations with the aim of supporting training and the upgrade of IT systems.
Keen adds: “This scheme is intended to help support the extra demand for customs brokerage services associated with the UK’s departure from the EU, as well as issues associated with the replacement of the current system used to process customs entries.”
BIFA says the grants could be used to support a business that is extending and taking on new staff, or to help train an existing employee to start completing customs declarations for the company. Training can be delivered by an external provider, or an in-house trainer.