Customs Changes Part 2 : TSP- Transitional Simplified Procedure
In case of a no-deal Brexit, UK businesses importing goods within the United Kingdom will need to apply the same procedures to EU trade as they currently do when dealing with 3rd countries, or the rest of the world.
In February 2019, HMRC has announced the creation of TSP: Transitional Simplified Procedures to help businesses import goods from the EU excluding flows between Ireland and Northern Ireland.
TSP apply if you are a UK importer, established in the United Kingdom (as defined by Art EU952/2013 of the UCC) and only for goods imported directly from the EU.
These procedures have been introduced for a limited period and need you to register. TSP is for standards customs procedures only and don’t apply if you use a customs special procedure: Temporary Admission, Inward/Outward processing etc. (HMRC Notice 3001: Customs Special Procedures for the Union Customs Code.)
Under import rules for trading with the rest of the world, goods are not released from customs control until you make a full import declaration and pay customs duty in full. The first stage of TSP still requires importers to submit an Entry Summary Declaration (ENS) prior to the goods arriving at the UK border.
Transitional Simplified Procedures reduce the amount of information you need to give for an import declaration when the goods are crossing the border from the EU. Additionally, TSP allow you to delay submitting a full declaration and paying import duties when applicable.
There are 2 types of TSP:
- TSP – Controlled Goods Procedure: For goods needing a licence to import or excise goods (alcohol, tobacco etc.) imported from the EU.
- To comply, you will need to submit a Simplified Frontier Declaration (SFD) before bringing the goods into the UK.
- Ensure your goods are accompanied by supporting documents. We reviewed the need of an accurate and detailed commercial invoice in our previous newsletter available at https://www.sttas.com/insights/#publications
- TSP – Standard Goods Procedure: If you’re importing goods that are not on the transitional simplified procedures-controlled goods list, use the standard goods procedure:
- Make a customs declaration within your commercial records. Your records need to be accurate, detailed and comply with HMRC list of requirements.
- UK businesses need to provide transporters with their EORI numbers.
When importing controlled goods as well as standard goods, apply the controlled goods procedures for both.
The second stage of making a declaration using TSP is filling a supplementary declaration.
- For controlled and standard goods procedures, you must send the supplementary declaration by 4th working day of the following month.
- For Standard TSP, you may delay making your supplementary declarations (on transactional basis or in batches) for up to 12 months.
HMRC may withdraw the procedures giving importers a 12-month notice period to prepare their businesses to follow the full import processes for trading.
If this happens, choose to either:
- use a third party (for example freight forwarder or customs broker) to complete your customs import declarations.
- become authorised to use customs freight simplified procedures (CFSP).
- complete full declarations yourself.