In this week’s EU Exit Bulletin, we bring you the latest guidance updates and publications relevant to EU exit and news from HMRC about the closure of the CHIEF training service. Issues are being reported with June 2022 import VAT statements and we also update you on recent developments in relation to the Northern Ireland Protocol Bill.
Northern Ireland Protocol Bill update
As covered last week, the Bill has now completed its various stages in the House of Commons however as summer recess has now commenced, it will not progress to the House of Lords until Parliament returns on Monday 5 September 2022 when the next leader of the Conservative Party and UK Prime Minister will also be announced.
On Friday 22 July, the EU launched further legal action against the UK for alleged breaches of the Protocol. The four infringement proceedings concern customs enforcement, and excise and VAT rules. These new legal actions are in addition to the three infringement proceedings which began on 15 June 2022.
Members will continue to be updated on developments in relation to the Bill in future newsletters.
CHIEF training service closure
From Tuesday 26 July 2022, the free HMRC CHIEF training service closed in preparation for the move to the Customs Declaration Service (“CDS”) for all import declarations from 1 October 2022.
HMRC recognises that some traders may still need to use the CHIEF training service while they complete their move to the CDS hence continued access may be granted on an exceptional needs basis. Traders can make an application to do so by emailing HMRC. Please use the subject line ‘CHIEF TRAINING SERVICE’ and state in the email when you intend to move to the CDS. Requests will be considered on an individual case basis.
HMRC has stated that the CHIEF training service should only be used to develop an understanding of submission obligations before going live and to submit declarations in a test environment. It should not be used to test how to reduce liabilities by generating duty and VAT estimates on declarations which have not been submitted.
HMRC strongly urges businesses to move to the CDS now to ensure they are ready to make all import declarations via the CDS from 1 October 2022.
Issues with import VAT statements
HMRC has asked us to highlight that it has identified a technical issue with June 2022 import VAT statements which may mean that the import VAT figures showing on the statement may not be correct. Businesses are therefore advised not to use import VAT statements published by HMRC between 4 - 8 July 2022 (inclusive).
More information is available at Complete your VAT Return to account for import VAT.
Miscellaneous updated guidance etc.
The latest guidance updates, and publications relevant to EU exit are as follows:-