The post-Brexit changes to the ‘Rules of Origin’ regulations that are set to be introduced on the 1st of January 2022 should be delayed.
The ‘Rules of Origin’ means that anything sold in the UK by EU businesses must wholly or largely originate in the EU to be exempt from customs duties when it enters the UK.
From January 1st, the Government plans to introduce a requirement that importers must show a declaration about the origin of the goods at the point of entry. This is expected to create substantial backlogs at the border.
UHY Hacker Young says that the introduction of the need to show ‘Rule of Origin’ declarations at the point of entry will create even more disruption after a year already marred by supply-chain chaos.
The effects of the pandemic on the number of hauliers available to transport goods across the border has caused delays and shortages of food, furniture and household items over the last year.
Sean Glancy, Partner at UHY Hacker Young says: “The UK government should seriously consider delaying the ‘Rules of Origin’ changes until Covid related disruption is finally over. Nobody wants to risk further snarl-ups in cross border trade. Many UK SMEs are dependent on goods supplied from the EU. Additional customs checks put those supplies at risk.”
“The effects of the pandemic and Brexit over the past year has already made it an extremely difficult one for anyone importing goods to the UK. To add another layer of bureaucracy now would be wrong.”