Policy paper

Reasonable steps for frontier operators using the pre-lodgement model to control goods from the EU into Great Britain

Updated 19 March 2021

The UK is adopting a pragmatic approach to customs controls, delaying their introduction for many goods from 1 January 2021 until full controls are in place by 1 January 2022. For more information check the guidance on delaying declarations for EU goods brought into Great Britain from 1 January 2021.

If you’re an operator of a frontier location (port, wharf, roll on roll off, rail terminal or airport) who receives or dispatches freight from the EU, these changes will affect you.

Background

From 1 January 2022, all goods imported from the EU to mainland Great Britain (England, Scotland and Wales) must be declared and presented to the UK customs authorities in line with UK legislation.

There are 2 main customs models that can be used to control goods imported into Great Britain, the:

• temporary storage model
• pre-lodgement model

The temporary storage model

Goods coming into Great Britain can be stored at the frontier in a temporary storage facility for up to 90 days before being declared to customs. Check guidance on how to apply to operate a temporary storage facility.

The pre-lodgement model

Traders will be required to submit a customs declaration in advance of goods boarding on the EU side. In this model, the carrier (ferry, train or plane operator) will be required to make sure a declaration has been pre-lodged before the goods board at the EU point of departure.

HMRC will risk assess declarations during the crossing and a message will be issued by the time goods arrive at the border informing the person in control of the goods (such as hauliers) if the goods have been cleared. This will make sure checks are only carried out if needed and most goods will be cleared to continue onwards on their journey on arrival. See Annexe A on the steps in the pre-lodgement model.

Goods which have not been cleared must be held by the frontier location until HMRC has indicated the goods are customs cleared using HMRC-approved IT systems. HMRC is aware that, at some frontier locations, there is no physical capacity to hold goods until they are customs cleared. Where this is the case, goods requiring checks will be directed to inland checking facilities.

Reasonable steps: actions to take

All border locations have a responsibility for controlling goods within their premises, but their role is proportionate to their capacity. To provide clarity to frontier locations operating under the pre-lodgement model, the government has introduced ‘reasonable steps’ (a list of actions for frontier locations that operate under the pre-lodgement model).

All locations using the pre-lodgement model will be grouped into categories, which will have distinct reasonable steps. These reasonable steps minimise the risk of congestion at ports whilst ensuring full border controls can be implemented on EU goods. The difference in the responsibilities between border locations in these categories is based on evidence of frontier location capacity. The key categories are:

• Category 1: ports with extremely limited capacity to hold uncleared goods within the principal’s approved area
• Category 2: ports with some capacity to hold uncleared goods within the principal’s approved area
• Category 3: ports with capacity to hold all uncleared goods within the principal’s approved area

Category 1

Category 1 port operators will need to:

1. Write to carriers reminding them of their responsibilities under the pre-lodgement model.

2. If the approval holder fails to meet this, they’ll be at risk of incurring a penalty, might be liable for any missing duties and face the possibility of losing their customs approval.

3. So long as the letter has been sent, the approval holder will be able to release uncleared goods on arrival, so the goods can proceed to an inland site for customs checks.

Category 2

Category 2 port operators will need to:

1. Write to carriers reminding them of their responsibilities under the pre-lodgement model.

2. Provide processes and infrastructure to facilitate the control of goods at the frontier location (for example, a positive message from HMRC-approved IT systems), so the approval holder knows the goods are cleared.

3. Release uncleared goods to move inland for their checks when (and only when) the infrastructure at the port is fully exhausted.

Port operators will also need to:

• make sure they are able to receive the message about whether the goods are held or cleared (either through the Application Programming Interface (API) or Border Force) and can direct drivers to the relevant areas for the checks to be completed
• provide sufficient infrastructure for checks to take place where there is capacity to hold uncleared goods and to make sure uncleared goods do not leave

If the approval holder fails to carry out the above steps correctly, they’ll be at risk of incurring a penalty, might be liable for any missing duties and face the possibility of losing their customs approval.

Category 3

Category 3 port operators will need to:

1. Write to carriers reminding them of their responsibilities under the pre-lodgement model.

2. Provide processes and infrastructure to facilitate the control of goods at the frontier location (for example, a positive message from HMRC-approved IT systems), so the approval holder knows the goods are cleared.

To achieve this, they’ll need to:

• make sure they are able to receive the message about whether the goods are held or cleared (either through the API or Border Force) and can direct drivers to the relevant areas for the checks to be complete
• provide sufficient infrastructure for the checks to take place and to make sure uncleared goods do not leave

If the approval holder fails to carry on the above steps correctly, they’ll be at risk of incurring a penalty, might be liable for any missing duties and face the possibility of losing their customs approval.

Where there are exceptional circumstances, HMRC will make sure this is reflected in the approval holders’ customs approvals. For example, where goods must travel from one part of the location’s approved area to another for clearance checks, HMRC may deem it not possible for the ports to exercise control over goods.

If border locations dispute their categorisation, they should put their concerns in writing to HMRC.

Annexe A: Timeline under the pre-lodgement model

Step 1: Trader

The trader or an intermediary acting on their behalf make sure all EU goods to mainland Great Britain have submitted their customs declarations in advance of the goods boarding on the EU side. These declarations are made through HMRC-approved IT systems.

Step 2: Carrier

The carrier makes sure the goods have the necessary declarations before boarding.

Step 3: Frontier locations

If the border location is not mandated for pre-lodgement (check the roll on roll off ports), the location must inform all carriers that goods should not arrive without pre-lodged declarations.

The frontier location will follow its reasonable steps to discharge the obligation set out in the approval.

Step 4: Goods released

If goods are selected for checks, they’ll be subject to customs compliance activities either at the border location or an inland site. Once the goods have customs clearance, these goods are released to procedure.