The Government has announced some new information regarding the export market. This blog will explain those changes and how they may affect you.
New HMRC declaration system for exporters from 30th March
Any trader making export declarations needs to move to a new HMRC system from March 30 this year. The CHIEF system is being fully replaced by the Customs Declaration System, and anyone who has been using the old system will now have to move across.
There has been a transition period from the old to the new system, but it ends on this date. You will need your Government Gateway ID to subscribe to the system, plus:
- Your EORI number that starts with GB or XI — if you do not have one you can apply for an EORI number when you subscribe — you’ll need to meet the eligibility criteria to register for an XI number.
- Your Unique Taxpayer Reference (UTR)
- The address for your business that’s held on customs records.
- Your National Insurance number (if you’re an individual or sole trader).
- The date you started your business.
What happens once I’ve subscribed to the new system?
Once you have subscribed to the new system, you will either gain access within two hours, if HMRC doesn’t need to make any additional checks, or five days if it does. It is best to give yourself plenty of time in case your access is delayed, so you don’t find yourself needing to move goods but not having access to the right paperwork.
If you have already subscribed to the new system for either imports or exports, you don’t need to sign up again.
UK Export Finance doubles limit to £10m for traders
Small businesses looking to access funding to expand their exporting opportunities can now fast-track their applications with UK Export Finance, the Government’s export credit agency, and apply for twice the previous amount. The limit available now is £10m.
The move makes it “easier than ever” to sell into international markets, according to the Government, as the UKEF has now expanded its ‘auto-inclusion’ scheme which offers fast-track access to products such as the General Export Facility.
The payment terms have also increased from two to five years under the scheme, which increases the repayment flexibility available to small businesses too.
How does a business access this funding?
To access this funding, a business would need to speak to a participating bank, but the auto-inclusion removes the need for a manual intervention by UKEF, so the funding should be accessible quickly.
If you’d like to know more about these changes to exporting and how we can help you navigate your exporting journey, contact Mosaic International today!