After speaking to the Daily Update about the risks associated with customs declarations and the changes that have come with the transition from CHIEF to the Customs Declaration Service (CDS), Customs4trade’s (C4T) director of strategic customer engagement, Ludovic Demeyere, shares his insights into what he believes will be the major topics to watch out for in customs over the next year.
He also advises traders on to stay compliant as requirements continue to change.
BTOM and CBAM
When asked about the key issues traders should monitor, Demeyere highlights regulatory systems on both sides of the Channel – the UK’s Border Target Operating Model (BTOM) and the EU’s Carbon Border Adjustment Mechanism (CBAM).
“Everything around BTOM,” he says.
“The whole Northern Ireland flow [of goods], and the Red and Green Lane – that’s all changing, and it’s very important to be aware of that.”
CBAM represents a significant change for UK traders who trade with the EU, Demeyere suggests. Additionally, the upcoming EU Deforestation Regulation, which has been postponed until the end of 2025, will also impact traders. He mentioned that similar legislation is planned for the UK, although the timing of its implementation remains uncertain.
Changes regarding BTOM and the Windsor Framework should be the top issues to monitor in the upcoming year.
EMCS
Demeyere draws particular attention to the migration to a new system of the EU’s Excise Movement and Control System (EMCS), which tracks and monitors excise goods and their movements within the EU.
“HMRC recently migrated to a new system, but it’s not fully optimised yet. There are still ongoing changes, and I have been speaking with some businesses that are struggling with the new EMCS message.
“A few aspects of importing excise goods are still done manually, which is a requirement of HMRC. However, there are APIs available for this process. Eventually, the manual reporting will be automated, and that could save users a significant amount of time.”
There are also waivers for EMCS messages that used to be available but they are now “dropping one by one”, Demeyere notes.
Staying compliant
As requirements change, maintaining compliance can become more complex.
One way to simplify compliance is to “self-file”, Demeyere suggests.
“Take responsibility and manage your customs operations in-house and utilise software with built-in checks and validations. If you want to remain compliant, use a self-filing tool and be responsible for your own data.”
This way, traders can “control whatever changes need to happen”, which means they won’t have to rely on a broker who may provide incorrect information or not be available when you need them – leading to goods getting stuck at the border and additional documentary requirements.
From a broader perspective, he notes that “there is more of a push towards business having all its customs data available within the company”.
Therefore having “one single data source, one source of truth” should be the goal to ensure control and accuracy over your own data.
“You can conduct a thorough analysis on the potential savings,” he says, referring to self-filing compared to working with brokers. On average, “the savings from a self-filing compared to brokers runs up to 70 or 80%”, Demeyere adds.
“Even in the first year, those savings accumulate significantly.”
To learn more about how C4T can help automate customs operations, you can visit their site or meet them at the upcoming Chartered Institute of Export and International Trade’s Import Export Show on 3 December.
Customs4trade provided this insight as part of its supplier membership with the Chartered Institute. Find out more about the supplier membership offer here.
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