Grants to help small and medium-sized businesses with EU importing and exporting

Grants to help small and medium-sized businesses with EU importing and exporting

The Government has launched a £20 million SME Brexit Support Fund to help small and medium sized businesses (SMEs) adjust to new customs, rules of origin, and VAT rules when trading with the EU.

Businesses who trade only with the EU and are therefore new to importing and exporting processes are being encouraged to apply for the grants of up to £2,000 to pay for practical support including training and professional advice to ensure they can continue trading effectively with the EU.

It is likely that the fund will be heavily subscribed and therefore we would advise those businesses interested to make their application as soon as possible.

What you can use the grant for

There are two sides to the funding but you can only claim up to £2,000 per company/entity:

1. Professional advice and consultancy

To help your business can meet its customs, excise, import VAT or safety and security declaration requirements. You can see further details of how this grant funding can be used for our VAT services here.

2. Training

  • on how to complete customs declarations
  • on how to manage customs processes and use customs software and systems
  • on specific import and export related aspects including VAT, excise and rules of origin

Finding a training provider

Training can be provided by any suitably qualified training provider. You can view a list of customs training providers on GOV.UK here (please note that inclusion on this list does not indicate any HMRC approval or recommendation).

Eligibility

Your business must:

  • be established in the UK
  • have been established in the UK for at least 12 months before submitting the application, or currently hold Authorised Economic Operator status
  • not have previously failed to meet its tax or customs obligations
  • have no more than 500 employees
  • have no more than £100 million turnover
  • import or export goods between Great Britain and the EU, or moves goods between Great Britain and Northern Ireland

Your business must also either:

  • complete (or intend to complete) import or export declarations internally for its own goods, or
  • use someone else to complete import or export declarations but requires additional capability internally to effectively import or export (such as advice on rules of origin or advice on dealing with a supply chain)

Support to prepare for new import controls

The support fund has been specifically set up to help businesses prepare for the new import controls coming into force from April and July, as set out in the Border Operating Model. These include:

From April 2021

  • All products of animal origin (POAO) will require pre-notification and health documentation and physical checks will be conducted at the point of destination; any grace periods where EU Member States may have taken pragmatic approaches to customs compliance will fall away.
  • For firms trading between Great Britain and Northern Ireland, they will begin to fully access all aspects of the Trader Support Service (TSS) – however, many businesses will also find that to continue transporting goods from GB, additional checks and paperwork that cannot be completed in TSS will be required – this includes many shipments of food and animal livestock.
  • There will also be Safety and Security requirements on all exports.

From July 2021

  • The UK Border Operating Model will end, the full burden of customs declarations will become permanent, facing the full declarations at the point of importation and tariffs with additional paperwork and checks taking place. Safety and Security declarations will also be required for all exports.
    • Northern Ireland Protocol:
    • 6 month grace period on authorised movements of restricted products such as chilled meats from GB-NI will end
    • 12 month grace period of regulatory requirements for medicines to avoid disruption to the flow of medicines from GB-NI will end

Apply for the grant

The fund is being administered by PwC through the pre-existing Customs Grant Scheme. Applications are now open and the fund is expected to close on 30 June 2021 or earlier if all funding is allocated before this date.

It is likely that the fund will be heavily subscribed and therefore we would advise those businesses interested to make their application as soon as possible.

You can apply for the Brexit Support Fund grant here.

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This information has been produced by Rouse Partners LLP for general interest. No responsibility for loss occasioned to any person acting or refraining from action as a result of this information is accepted by Rouse Partners LLP. In all cases appropriate advice should be sought before making a decision.

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