13
Accepted
Smaller traders now also need to prepare for full import controls.
Conclusion
Smaller traders now also need to prepare for full import controls. HMRC told us that it put a lot of effort into reaching smaller businesses.37 However, it also told us that customs is a highly intermediated process which usually only larger businesses try to do 27 Q 45; C&AG’s report, para 2.16 28 Qq 70, 164 29 Q 64 30 https://committees.parliament.uk/publications/4684/documents/47162/default/ 31 Qq 69, 174 32 Q 174 33 https://committees.parliament.uk/writtenevidence/40859/pdf/ Para 1.1 34 Q 78 35 C&AG’s Report, paras 2.20, 2.21 36 Q 79 37 Q 181 EU Exit: UK Border post transition 13 for themselves.38 It noted that the system in three years would be simpler for smaller businesses to navigate and would be well supported by an “ecosystem of intermediaries” offering a whole range of services, but acknowledged that smaller businesses would still be likely to find it challenging to “self-serve customs”. The Cabinet Office told us that it was positive about the potential to move to digital systems that would help traders. It also highlighted the Export Support Service, which had been operational since 1 October 2021, and which was about bringing departments together so that exporters, and particularly small businesses, had a one-stop shop.39 38 Q 171 39 Q 173 14 EU Exit: UK Border post transition 2 Future risks relating to the management of the border The introduction of full import controls
Government Response Summary
The government acknowledges the disproportionate impact on SMEs and outlines continued support through extensive GOV.UK guidance, an intermediary register, and the Export Support Service, stating that the UK Single Trade Window will further simplify processes for SMEs by October 2022.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: October 2022 3.2 Some small and medium sized enterprises (SMEs) have been disproportionately impacted by new border requirements for both imports and exports. SMEs have also raised concerns about the challenge of remaining aware of changing import requirements. In response to this, the government continues to support industry and business in implementing the changes and providing extensive support to adjust to the changes in their customs obligations. Looking to the future, the UK Single Trade Window will put particular emphasis on making it easier for SMEs to begin trading and to do so simply. This will build on support already provided. 3.3 In 2021, the SME Brexit Support Fund offered up to £2,000 per business to help support them with adjustments around customs and VAT rules. In 2022, the government is building on existing mechanisms, with extensive guidance published on GOV.UK, including an intermediary register with a list of over 1,500 intermediaries broken down by client capacity and services offered. 3.4 In 2021, the government, led by Department for International Trade, launched the Export Support Service where UK businesses can get answers to practical questions about exporting to Europe by accessing cross government information and support in one place. The new service brings together well-established government support and helps SMEs navigate existing sources of information. It sits alongside the government’s wider package of support for exporters, helping UK businesses export with more confidence. The government will continue to work with businesses and business representative groups from all sectors, in all parts of the UK, to help make the service as useful as possible for businesses at every stage of their exporting journey.
Source
Committee
Public Accounts Committee
Inquiry
EU Exit: UK Border
Report
Thirty-Sixth Report - EU Exit: UK Border post transition
09 Feb 2022
HC 746
Addressee Bodies
HM Treasury
Timeline
Recommendation age
4.5 yrs
Report published
09 Feb 2022