On 19 November 2020, HM Revenue & Customs (HMRC) updated its guidance introducing changes to legal rulings for the classification of goods from 1 January 2021. The guidance provides instructions with respect to the action businesses need to take in the following situations:
- if they have a Binding Tariff Information decision;
- if they are applying for a ruling before 1 January 2021; and
- if they are applying for a ruling after 31 December 2020.
For the period up to 31 December 2020
Existing Binding Tariff Information decisions will be converted to an Advanced Tariff Ruling at 23:00 GMT on 31 December 2020 unless the business requests otherwise. An Advanced Tariff Ruling will not be recognised by the European Union (EU).
Applications for Binding Tariff Information decisions before 1 January 2021 will need to be done using the current system. For imports into and exports from Great Britain Binding Tariff Information decisions given before 1 January 2021 will be converted to an Advanced Tariff Ruling. Those given after 31 December 2020 will be Advanced Tariff Rulings.
For importing into or exporting from Northern Ireland or the EU it will be necessary to hold an exchange of reporting information (EORI) starting XI and advise HMRC that the Binding Tariff Information decision is for imports into and exports from Northern Ireland or the EU.
For the period after 31 December 2020
Businesses can, only, apply for an Advanced Tariff Ruling if they have an EORI starting GB and intend to import into or export from Great Britain.
Businesses importing into or exporting from Northern Ireland or the EU will need to apply for a Binding Tariff Information decision, have an EORI that starts XI and be established in Northern Ireland.
Finally, HMRC indicates that it will update the guidance again in the future.
The HMRC guidance can be accessed here.