Brexit: legal rulings for the origin of goods after 1 January 2021
16 December: HMRC has published guidance on the validity of binding origin information decisions issued by the UK after the transition period and what this means for businesses importing and exporting goods.
From 1 January 2021 existing binding origin information (BOI) decisions issued by the UK or for EORI numbers starting GB will not be valid in the EU.
In new guidance, HMRC outlines the new rules for businesses trading goods into and out of Great Britain (GB) and those trading from Northern Ireland (NI) or the EU, and the implications for existing BOI decisions.
Following the end of the transition period, businesses importing or exporting goods from GB will need an advance origin ruling (AOR), while those importing into or exporting goods from NI or the EU will require a BOI decision.
For businesses importing into GB, existing UK-issued BOI decisions where the UK has signed an international agreement that reproduces the ‘relevant effects’ or a non-preferential BOI ruling for imports that would have been valid beyond 23:00 on 31 December 2020 will be automatically changed to an AOR and will remain valid for the same amount of time as the original BOI decision. However, these AORs will not be recognised by the EU.
For businesses importing into NI, BOI decisions where the UK has signed an international agreement that reproduces the ‘relevant effects’ or a non-preferential BOI ruling for imports into NI that would have been valid beyond 23:00 on 31 December 2020 will remain valid. Again, these will not be recognised by the EU.
BOI decisions issued for exports and for imports where the UK has not signed an international agreement that reproduces the ‘relevant effects’ will not be valid after 31 December 2020.
Businesses can apply for AORs and BOI decisions ahead of 1 January 2021 using the current BOI decision process but must confirm whether they are intending to use the ruling after 1 January 2021, so it can be processed correctly.
For those importing and exporting from NI or the EU, they will need an EORI number starting with XI before a decision can be made.
HMRC’s guidance outlines the requirements for AOR and BOI applications made after 1 January 2021 but confirms that it will be updated at a later date.