New international trade security procedures

The world is becoming a more security-conscious place. This impacts directly on businesses trading internationally, because their reputations and their regulatory compliance depend on keeping up to date with an increasing number of security-related rules that apply to UK imports and exports.

One of the main ways the Government acts to ensure the security of the trading system is by issuing export control licences. This involves businesses obtaining official approval for export consignments containing goods with military applications or other strategic significance.

If you think this may apply to your business, the organisation to contact is the Export Control Organisation (ECO), which you can telephone on 020 7215 8070.

Another body with significant responsibilities in relation to the security of international trade is HM Revenue & Customs (HMRC). HMRC deals with most of the day-to-day paperwork involved in exporting, and in the coming months there will be a number of security-related procedural changes that all traders should be aware of. The first of these is SAD Harmonisation. This is a Europe-wide process of aligning the rules for completing customs declarations forms (known in the UK either as the SAD, or as Form C88). SAD Harmonisation will take place in two stages.

From 7 January 2007 a transitional set of rules for completing the form will be introduced. Full implementation will then take place on 1 July 2007, from which date the old rules for completing the form will be completely replaced.

Another change taking effect on 1 January 2007 is the introduction of the EU Customs Security Programme. This will require all importers and exporters in the EU to obtain a security certificate to ensure the swift movement of their goods through customs. This will affect a reported 130,000 UK businesses. Businesses failing to obtain a certificate may have their goods retained by HMRC until security checks on them are completed.

For more information about SAD Harmonisation and the EU Customer Security Programme, contact the HMRC National Advice Service on 0845 010 9000.

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