We recently held a “Regulation Round-up” seminar to provide our customers with an update on Brexit, Making Tax Digital and the European Tobacco Products Directive, and to give an overview of how these will impact the wholesale distribution sector.
Despite 2019 being just around the corner, wholesale distributors still have much to do to get ready for all the new legislation coming into force next year. Unfortunately, there are also a lot of ‘unknowns’ which are causing delays.
At our seminar, we welcomed guest speakers from Langdon Systems and Imperial Tobacco who gave us some top tips to help you start preparations now.
Brexit – 29 March 2019
This week, Theresa May announced that she has delayed the UK Parliament vote on her Brexit proposals. It is unknown when it will now take place. However, whatever the outcome of this vote, there are likely to be a number of implications for international trade:
- Duty on 3rd country imports is likely to increase.
- Trade with the EU will likely require a declaration to get goods out of the UK and an Import License to get goods into the EU.
- 3rd Country goods exported from the UK to the EU will attract Duty and require Customs formalities.
- Returned goods from the EU might attract duty on their entry back into the UK.
- 3rd country goods do not lose their identity, placing them outside any Free Trade Agreement (FTA).
Listed below are the key things you need to consider now
- Know your supply chain – Where are your goods from? Wholesale? UK manufacturer? EU supplier?
- Understand your distribution network – How and when are your goods delivered? Which port do they exit the UK from? What are your current delivery costs? What borders will you cross? Returns? What are the capabilities of your distribution network? Can it handle Export declarations? Is it ready for the new data requirements of the Customs Declaration Service (CDS)?
- What can you do? – What are your capabilities and understandings? Can you make the export? What is required?
Making Tax Digital – 1 April 2019
All VAT registered businesses with a taxable turnover above the VAT threshold will be required to use the Making Tax Digital services. This will include keeping records digitally and using the software to submit VAT Returns.
BCP is committed to providing a robust, scalable, cost-effective solution in time for go-live. Please contact us for further information regarding this.
European Tobacco Products Directive – 20 May 2019
A new ‘track and trace’ system for tobacco products is coming into force next year to fight the illicit trade of tobacco products across the EU. Any company involved in the distribution of cigarettes and hand-rolling tobacco will have to record the movements of these products through their supply chain.
The details for this new system and how the process will work are still being sorted out. Further details regarding the Single Point of Contact for Information is due to be announced on 15 December 2018.
However, there are a number of activities you can do now which will help make the transition easier:
- Register to receive your Unique ID by 20 May 2019
- Ensure all your master data is in order – and that data is populated in the correct fields (postcodes in the postcode field etc.). This is because, if there are any issues with the data submission to the EU repository it may cause delays with deliveries. Beware – you will not be able to deliver tobacco products without permission from the EU repository.
- Ensure that physical systems are robust – so in the event of any issues or disasters, data submissions to the EU repository can still happen.
- Register for meetings or seminars – and keep records of what you have attended to demonstrate that you are keen to comply with the European Tobacco Products Directive.
We will continue to keep you informed of the latest updates as and when they are announced. If there is anything you would like to discuss further please contact us on 0161 355 3000