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The Solicitors Regulation Authority (SRA) has issued a reminder to the legal sector of its compliance duties in the wake of the Government’s imposition of sanctions on Russia.

The new financial sanctions prevent law firms from doing business or acting for listed individuals, entities or ships without a licence.

The SRA warns that the onus is on firms to check the most up to date financial sanctions lists before offering services or undertaking any client transactions.

The Authority also advises that firms should not deal with any funds or make resources available to any individual who is subject to an asset freeze as a result of the sanctions.

The SRA has warned that firms may be spot checked to ensure compliance and breach of the financial sanctions could result in disciplinary action, a criminal prosecution or a fine by the Government’s Office of Financial Sanctions Implementation (OFSI).

Law firms are also reminded of their obligation to report any client to OFSI if they suspect they are a ‘designated’ person under the financial sanctions’ regime.

Exemptions apply for reasonable fees for legal advice and, in such circumstances, firms will be required to seek a licence from OFSI.

The SRA also offers advice to law firms when reviewing client lists and considering who they feel comfortable acting for, stating that: “the general position is that firms can choose who they act for, and can choose not to act for any reason (unless unlawful, for example under equalities legislation).

“The question of terminating a current retainer is one for the common law and turns on whether there is a ‘good reason’ for the termination.

“The current situation with the conflict in Ukraine is clearly novel, and whether there is a ‘good reason’ for terminating a client retainer in response will be a matter for the courts to decide, on the individual facts. Either way, from a regulatory point of view, our concern is to ensure that the firm has carefully considered the legal position and also understood and mitigated any risks to the client.”

The UK has moved into the second and final phase of accession to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), it has been announced.

Membership will give British businesses unlimited access to a global market worth £8.4 trillion each year.

Here’s what you need to know.

What is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership?

Launched in March 2018, the CPTPP is a free trade agreement between 11 major Pacific Rim Nations, including Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

According to the latest statistics, the free trade area – described as “one of the largest and most exciting free-trading clubs in the world” – contains more than 500 million people and generates an estimated £8.4 trillion in revenue each year.

If successful, the UK will be the first non-founding member to join the partnership.

What are the benefits of joining?

Assession will cut red tape and costs for British businesses trading with Trans-Pacific members.

Under the agreement, up to 95 per cent of import charges and tariffs will be reduced or cut completely, while the rules of origin will be simplified providing 70 per cent of the materials or components used come from participating countries.

For example, 99.9 per cent of UK exports to the CPTPP will be eligible for tariff-free trade.

Membership will also give professional and digital services businesses unrivalled access to international markets.

What’s the catch?

Like membership to the EU, members must comply with strict product and financial regulations, such as food and health and safety standards. Most British suppliers, however, will already meet the minimum level of compliance under existing UK laws.

“Major milestone”

Commenting on the announcement, Secretary of State for International Trade Anne-Marie Trevelyan said: “CPTPP is one of the largest and most exciting free-trading clubs in the world. Today’s announcement is a major milestone for us joining this dynamic group of economies and means the finish line is in sight.

“I look forward to visiting Asia next week and flying the flag for Global Britain by holding valuable trade talks with key partners across the Indo-Pacific region and pushing to secure CPTPP accession by the end of the year. This is just one aspect of our Indo-Pacific strategy, which will benefit businesses and consumers across every part of the UK and help us to level up at home.”

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For help and advice with related matters, please get in touch with our team today.

The Government is planning to build a central hub to “encompass everything traders do” to support businesses in the wake of Brexit.

Known as the Single Trade Window, the digital service will allow international traders to input all of their import and export data in one place.

Here’s what we know so far.

What is the Single Trade Window?

The Single Trade Window is a central digital service that allows traders to upload all of their data relating to imports and exports, instead of having to complete forms in multiple systems run by different border agencies, such as HM Revenue & Customs (HMRC), DEFRA, and the Home Office.

It comes after the introduction of full customs controls on 1 January 2022, significantly changing the way traders do business overseas. This includes the requirement to make full import customs declarations and pay tariffs at the point of import, as well as using the correct country code for the country of origin and the country of dispatch when completing a customs declaration.

According to recent research, more than half of businesses were not confident in trading with the European Union after full controls came into force.

What is the benefit of the Single Trade Window?

According to the Government, the UK Single Trade Window will reduce the cost of trade by streamlining trader interactions with border authorities. Some of the benefits include:

• Allowing the trader or intermediary to submit all border data needed in a standardised format. This would mean submitting only once to border authorities through a single portal.
• Putting the onus on government to facilitate data sharing amongst border authorities and agencies to then receive the information they need.
• Eliminating the need for the user to submit the same data to different border authorities or agencies, via multiple different portals.

Kevin Shakespeare, Director of Strategic Partnerships and International Development at the The Institute of Export & International Trade, said the Single Trade Window could also “reduce delays and supply chain costs” for businesses.

Focus on “simplification”

Commenting on the new service, Phillip Stansfield, a Deputy Director on the UK’s Single Trade Window programme, said: “At the heart of our ambitions is simplification.

“Our aim is to make the lives of Government departments and traders easier, giving you more time for what really matters which is running your business.”

Further reading

Click here to learn more about the UK Single Trade Window.

Get advice today

For help and advice with related matters, please get in touch with our team today.

The Government is calling on businesses, traders and the public to have their say on the future of customs.

The call for evidence comes after the introduction of full customs controls in January this year, forcing thousands of traders to change the way they do business.

Here’s how you can get involved.

What is happening?

This is your chance to make your views and opinions on the new customs regime heard.

The Government is asking businesses at the heart of international trade – such as traders, intermediaries, freight forwarders, fast parcels operators and hauliers – to describe their experiences and suggest changes to policy or processes that could be made to make the regime simpler, easier and more responsive to stakeholders’ needs.

The consultation comes after the launch of full customs controls on 1 January 2022.

What can I change?

HM Revenue & Customs (HMRC) is asking businesses to share their thoughts on:

• Improvements to help traders access a quality customs intermediary sector
• How the benefits of the Simplified Customs Declarations Process (SCDP) can be expanded
• How the Transit facilitation can be improved.

How can I have my say?

The Call for Evidence will run for 12 weeks until 2 May 2022. Click here to get involved.

An opportunity to say “what’s going well and where things could be improved”

Commenting on the launch of the consultation, Lucy Frazer, Financial Secretary to the Treasury, said: “Our aim is for the UK to have the world’s most effective border by 2025. We’re taking this forward across a number of long-term programmes, including the Single Trade Window, which will streamline how traders share information with government.

“This call for evidence complements that by giving traders and the wider border industry the opportunity to have their say on what’s going well and where things could be improved.

“I would encourage as many people as possible to respond to this call for evidence via GOV.UK, so we can ensure we have a customs system that makes the UK the best place in the world to do business.”

Get advice today

For help and advice with related matters, please get in touch with our team today.

More than half of businesses are not confident in trading with the European Union (EU) following the introduction of full customs controls, a major study has found.

The research, published by the Institute of Export and International Trade (IOE&IT), suggests that traders are still getting up to speed with the new rules which came into force this year.

Here’s what the report says.

New rules tripping up traders

The survey shows that a large number of importers and exporters are still unfamiliar with the new customs controls that came into force on 1 January 2022.

This includes the requirement to make full import customs declarations and pay relevant tariffs at the point of import, as well as using the correct country code for the country of origin and the country of dispatch when you complete a customs declaration.

The new rules also introduce Sanitary and phytosanitary (SPS) checks on imports of agri-food products or products of plant origin from the EU in stages throughout 2022.

According to the poll, one in two (50 per cent) traders would not consider themselves “confident” in applying the new rules, with 16 per cent indicating that they are “not confident at all”.

But just two thirds (65 per cent) of businesses say they have undertaken additional training to adjust to the new post-Brexit trade rules and processes – suggesting why there may be a gap in knowledge and understanding.

A quarter (25 per cent) of firms have also not made any Brexit-related changes to their import or export arrangements.

Traders relying on external support

The report suggests that one in two (47 per cent) businesses have called on external support – such as a customs consultant or a freight forwarder – to deal with the new trade rules and processes, while one in five (21 per cent) firms have hired additional staff.

What support is available?

• Firms can use the Export Support Service to ask questions about international trading, such as exporting to new markets, what paperwork you will need to sell your goods overseas, and rules for a specific country.
• If you move goods in or out of Northern Ireland, the Trader Support Service will guide you through any changes due to the implementation of the Northern Ireland Protocol.
• Complete the trader checklist to find out what actions you need to take to comply.

Get advice today

For help and advice with related matters, please get in touch with our team today.

From 1 January 2022, businesses may need to change the commodity codes they use for goods that they import or export overseas.

The changes come after full customs controls were introduced at the beginning of this year.

If you are an international trader, here’s what you need to know.

What are the new UK commodity codes?

The UK introduced its 2022 integrated tariff on 1 January 2022, incorporating the World Customs Organisation’s (WCO) changes to the Harmonised System Nomenclature.

Commodity codes are used to quickly classify goods for customs and tax purposes.

The full list of changes can be found here.

What do I need to do?

You must check whether the UK commodity codes for your goods have changed.

This is required to complete full import or export declarations and other paperwork, and to ensure that you pay the right Customs Duty and import VAT.

The new commodity codes may also help you check if you need a licence to move your goods, if your goods are covered by an existing trade agreement, or if your goods are covered by the Agricultural Policy, anti-dumping duties, UK safeguarding measures, or tariff quotas.

If you are not able to complete customs declarations yourself, you can get someone to deal with customs for you.

Where can I find the new commodity codes?

The Trade Tariff tool can help you find the right commodity code. To use the tool, you may need to identify the type of product being traded, the purpose of the product, the materials used to make it, the production methods used to make it, and the way it is packaged.

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For help and advice with related matters, please get in touch with our team

Full customs controls came into force on 1 January 2022 – one year after the Brexit transition period came to an end.

If you import goods from Europe into Great Britain, here’s what you need to know.

What’s changed?

Until 31 December 2021, businesses were able to delay making declarations on goods – apart from controlled goods, such as alcohol, weapons, chemicals, or drugs – brought into Great Britain (England, Scotland and Wales) from Europe.

This meant that you could delay sending HM Revenue & Customs (HMRC) full information about your goods by up to 175 days after import.

Delayed imports were introduced after the end of the Brexit transition period to give traders time to prepare for new customs controls and procedures.

But from 1 January 2022, businesses are now required to make full customs declarations and pay any tariffs at the point of import.

What are the new rules from 1 January 2022?

• Traders will have to make full import customs declarations and pay relevant tariffs at the point of import.
• Your goods may be directed to an Inland Border Facility for customs checks if these checks cannot be done at the border. From this date, you must also submit an “arrived” export declaration if your goods are moving through one of the border locations that use the arrived exports process.
• You must use the correct country code for the country of origin and the country of dispatch when you complete your customs declaration. The EU country code can no longer be used.
• Pre-notification requirements of Sanitary and Phytosanitary (SPS) goods are required.
• UK commodity codes have changed.

Future changes

Some customs controls have been delayed further to give businesses more time to prepare. This means:

• Safety and Security Declarations at entry will not be required until 1 July 2022.

• Certification and physical checks for all remaining regulated animal by-products, all regulated plants and plant products, all meat and meat products, and all remaining high-risk food not of animal origin will not be required until 1 July 2022.
• High-priority plants and plant products checks will be transferred from the place of destination to designated Border Control Points (BCP) from 1 July 2022.
• Physical checks on live animals will take place at designated border control posts where a facility is operational at the point of entry from 1 July 2022.
• Certification and physical checks will be introduced for all dairy products from 1 September 2022.
• Certification and physical checks will be introduced for all remaining regulated products of animal origin, including composite products and fish products, from 1 November 2022.

Get advice today

For help and advice with related matters, please get in touch with our team today.

Following the impact on businesses in England of the current ‘Plan B’ covid measures and the impact of Omicron on trade in the hospitality sector in particular, the Government has announced a new support package.

The package comprises three elements:

• Dedicated support for the hospitality and leisure sectors in the form of one-off grants worth up to £6,000 per premises. There will also be more than £100 million in discretionary funding for local authorities to support other businesses.
• The reintroduction of the Statutory Sick Pay Rebate Scheme (SSPRS) for employers with fewer than 250 employees. This will apply to up to two weeks’ COVID-related absence and is effective immediately, with employers able to make retrospective claims from mid-January.
• £30 million for cultural organisations through the Culture Recovery Fund.

There will also be £154 million in funding to the devolved administrations in Wales, Scotland and Northern Ireland to provide similar support.

The grants for the hospitality and leisure sectors will be administered by local authorities and the Treasury says they will be available “in the coming weeks”.

For advice, contact us today.

With less than one month to go until the introduction of full customs controls, businesses are turning to the Export Support Service for crucial advice.

But what is the new platform and how could it help your business?

Here’s what you need to know.

What’s changing?

If you export goods and services to Europe, you will be impacted by several changes from 1 January 2022.

The new processes – known as full customs controls – will affect the way you handle customs declarations, border controls, rules of origin, and commodity codes, as well as how you will account for VAT and other fees and charges.

What is the Export Support Service?

Described as “all the support you need, all in one place”, the Export Support Service is the Government’s one-stop-shop for advice on European trade.

It was launched in October this year after businesses called for a single point of contact for exporters entering new markets.

Traders seeking to start or expand existing global trading operations can ask dedicated experts a range of questions, including:

• Specific advice on exporting to new markets
• What paperwork you will need to sell your goods abroad
• How to make supplementary, export, and customs import declarations
• How to navigate licences, certificates, and authorisations
• Guidance on recognising professional qualifications
• Queries around the rules of origin
• Rules for a specific country or product, such as food, drink, medicinal, pharmaceutical, or animal-derived goods.

How do I use the Export Support Service?

Exporters can ask a question by phone using the details below, or ask a question online here.

• Export support team
  Telephone: 0300 303 8955
  Textphone: 18001 0300 303 8955
  Monday to Friday, 8am to 6pm (excluding public holidays)
  Find out about call charges

Get advice today

For help and advice with related matters, please get in touch with our team today.

As infection rates of the Omicron COVID-19 variant rise across the UK, the Government has decided to implement its Plan B measures to restrict the spread of the virus.

Although this announcement was expected, and details of it widely publicised beforehand, here is what you need to know:

• The return of work from home guidance – From Monday (13 December), office workers should work from home, where possible, to reduce the number of people they come into contact with. Anyone who cannot work from home, due to the requirements of their employment, should continue to go into work.

• Mandatory Covid-status certificates in certain settings – From next Wednesday (15 December) ‘Covid passports’, demonstrating that a person has been vaccinated and taken a negative lateral flow test, will be required to enter some indoor and larger outdoor venues, including:
  • nightclubs
  • unseated indoor events with more than 500 attendees
  • unseated outdoor events with more than 4,000 guests
  • large outdoor events with crowds of more than 10,000 people.

A full list of conditions for this requirement can be found here.

• Mandatory face coverings in more locations – From 9 December, the rules on face coverings will be extended to hospitality venues, such as cinemas, theatres and places of worship. However, they won’t be needed in places “where it is not practical to wear one”, like when eating, drinking or exercising.

At present, the Government hasn’t given any indication of additional financial support to help businesses with these rules.

However, these new measures for England are much less stringent than those announced last winter and many similar rules are already in place in Scotland, Wales and Northern Ireland.

While certain industries may experience a greater impact due to these changes, early indications are that the wider economy should be less affected due to the preparedness of many businesses.

Here for you

It is understandable, given the events of the last few years, that you may have concerns about the latest restrictions.

We just want to reassure you that whatever happens we are here and ready to offer our support, so let us know if you have any concerns.