U.K. Revenue And Customs Head Testifies On Post-Brexit Border And Customs Issues
Saud Aldawsari and Alexandra Carr
On September 14, 2017, the United Kingdom (UK) Parliament Treasury Committee met with Her Majesty’s Revenue & Customs (HMRC) officials to discuss the customs implications of the United Kingdom’s exit from the European Union (EU).
HMRC updated the Treasury Committee on the progress of the Customs Declaration Service (CDS) system, which will replace the current customs system (CHIEF). In July, the UK National Audit Office warned of a risk of disruption to the flow of goods between the UK and the EU because of the project’s halting progress. The delivery of CDS is anticipated to begin in August 2018, and HMRC will transition users onto the new system by January 2019.
Treasury Committee members inquired about the transnational arrangements after the UK leaves the EU. Jim Harra, HMRC’s director general for customer strategy, discussed implementation challenges, and estimated that the organization could require an additional 3,000 to 5,000 employees by March 20, 2019, to handle the increased customs demand associated with EU import and export trade. HMRC representatives also highlighted the importance of information sharing with Brexit negotiators in order to fully plan for the transition to CDS in March 2019.
HMRC Chief Executive Officer Jonathan Thompson also explained that the agency is studying heavily-used border crossings around the world to learn how best to handle large volumes of trade, including the U.S.-Canada border, Singapore, Norway, Sweden, Switzerland, and Germany. Mr. Thompson also described efforts by the agency to assess the “business case” for a new Singapore-style system, which would allow firms to get their tax and border checks done in one place. Mr. Thompson estimated that such a project could “cost somewhere between £500 million and £800 million” over five to seven years. He also indicated that currently there are “26 different Government organizations involved who have an interest in the border[.]” In sum, UK officials continue to analyze and to prepare for a post-Brexit world.
CBP Responds To Adverse Weather Events
Ben Bay and Quinn Bailey
The 2017 hurricane season has been a particularly active one, with Hurricanes Harvey, Irma, and Maria causing widespread destruction wherever they made landfall. U.S. Customs and Border Protection (CBP) proactively issued a series of Diversion Guidance messages and took other steps to assist the trading community.
CBP has advised that affected ports of entry could be closed or operate at reduced capacity for several weeks. In order to lessen the economic and commercial impact of these hurricanes, CBP’s Trade Transformation Office provided details regarding procedures for the redirection of commercial shipments destined for affected U.S. ports. CBP stressed that proactive amendments of manifests to reflect new ports of unlading would expedite the successful diversion of shipments to unaffected ports, allowing for the continuation of commerce, and in turn tempering the broader economic impact of the storms. CBP also will not issue penalties for any merchandise in a general order warehouse, nor will it be issuing liquidated damages for importer security filing (ISF) transactions for ocean cargo on the water originally destined for a closed seaport and now diverted to another port. In such cases, CBP also advised that it is not necessary to update the ISF data.
In sum, Hurricanes Harvey, Irma, and Maria have caused significant destruction and disruptions to everyday life and commerce in a number of ports of entry. CBP has taken several steps to allow trade to continue in the face of these powerful weather events.
