HMRC Borders and Trade has announced the closure of its Modernising Authorisations (MA) project, following a spending review by the government.
In an email to stakeholders, HMRC said it had “reviewed its priorities and future delivery plans” following the public spending audit, and as a result had decided to close the MA project.
This means “there will be no delivery of a new digital customs and excise authorisations system at this time”, it explains.
‘Disappointing news’
While the government acknowledged that “this will be disappointing news” to some, it said the “insight HMRC has gained from the co-design and extensive stakeholder engagement carried out with trade representatives and industry experts across the MA project” will remain of value in its future operations.
It added:
“In addition, the improvements in guidance and the customs technical handbooks we have been working on with stakeholders will continue to be delivered.”
The department also indicated it would explore other opportunities “to introduce further improvements to customs and excise authorisations in the future” by “building on the work done to date” with those in industry.
The project
The initial functionality of the project, which was announced as part of a package of customs measures at the Spring Budget in 2023, aimed to unify the 42 existing customs authorisations into five new groups:
- Authorised Economic Operator (AEO)
- Fiscal
- Simplifications and Declarations
- Transit
- Ports and Wharves
Chartered Institute of Export and International Trade senior trade and customs specialist, Anna Doherty, explains that these groups would have had “common criteria meaning that traders would only need to make a single application for all the authorisation in the group”.
“The project was announced as a solution that would streamline and digitise the way that applications for authorisations and special procedures are made and managed. Grouping them in such a way would mean that information only needs to be provided once and would make it easier to update the authorisations with any changes to circumstances such as moving address.”
Insights carried forward
The new technological solution would have been used “both by the traders who are the holders of the authorisation as well as HMRC officers performing any compliance checks or reviewing applications”, said Doherty, who also serves as the industry chair of HMRC’s Joint Customs Consultative Committee.
She adds that, while it is “disappointing that, as part of the [recent government] fiscal review, HMRC decided not to continue with the digital system”, the Chartered Institute has been “assured that the insights gained as part of the co-design and stakeholder engagement will help to improve the current process”.
The Chartered Institute “will work with HMRC on how best to implement them”.
Ilona Kawka, senior digital trade and customs consultant at the Chartered Institute, said:
“The closure of HMRC’s MA project and the decision not to pursue its digital solution is a disappointing setback, particularly for those of us who saw its potential to streamline customs processes and who see that the future is providing digital, interoperable solutions to facilitate trade.
“However, with the postponement of Single Trade Window, there is now an opportunity to align both projects in the future, potentially creating a more cohesive and effective solution for traders.”
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