Impacts on Businesses Importing and Exporting to the UK: Navigating the UK's New Border Target Operating Model

In April 2023, the UK Government unveiled its ambitious Border Target Operating Model (BTOM) comprehensive strategy that redefines how businesses engage with imports and exports. This model applies to trade from all countries, including the European Union (EU), and is designed to strike a balance between effective border controls and streamlined import processes.

The full document is available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1182464/Final_Border_Target_Operating_Model.pdf

As the BTOM's implementation draws nearer, it is crucial for businesses to understand its implications and prepare for the changes that lie ahead.

Simplification and Digitisation

One of the core principles of the BTOM is the simplification and digitisation of border procedures. For UK businesses, this means a shift towards more streamlined customs declarations and data requirements. The BTOM aims to reduce the complexities associated with import and export procedures, making it easier for businesses to navigate the regulatory landscape, which could lead to significant time and cost savings for companies engaged in international trade.

Safety and Security Controls

Under the BTOM, safety and security controls will be revamped. The model seeks to minimise the burden on traders while maintaining border security in line with international standards. Notably, the 37-field dataset for safety and security data will be streamlined to just 20 mandatory fields, with additional conditional and optional fields. This reduction in data requirements will facilitate the submission of information through the UK Single Trade Window, making compliance more accessible for businesses.

Moreover, certain categories of movements, such as outbound freeport goods, outbound transit, and fish from UK waters landed in non-UK ports, will see a relaxation of safety and security requirements. These changes should ease the process for businesses in these sectors.

Sanitary and Phytosanitary Controls

For businesses dealing with live animals, germinal products, animal products, plants, and plant products, the BTOM introduces a new global risk-based approach. These goods will be categorised as high, medium, or low risk, with controls adjusted accordingly, based on both the commodity and its country of origin. Digitisation of health certificates, starting in 2023, will enhance efficiency and data accuracy in the certification process, with the goal of enabling more automated data use.

Trust-based schemes will also be piloted, allowing authorised importers of certain goods to benefit from facilitations, provided they meet regulatory requirements and standards. This offers an opportunity for businesses to streamline their import processes and reduce the associated burdens.

Timeline for Implementation

The BTOM's implementation will be phased in to give businesses ample time to adapt. Key milestones include the introduction of health certification on certain EU imports in January 2024, followed by documentary and risk-based checks in April 2024. Safety and security declarations for imports into Great Britain from the EU will come into force in October 2024. These phased measures provide a grace period for businesses to align with the new requirements.

Implications for Northern Ireland

Northern Ireland's unique status within the UK will see the application of specific rules to protect the internal market while maintaining access to the EU market. The Windsor Framework outlines arrangements for goods moving from Great Britain to Northern Ireland, ensuring no new barriers for Northern Ireland businesses when purchasing goods from the EU.

Conclusion

The Border Target Operating Model represents a significant transformation in how UK businesses engage with international trade. While it introduces changes to safety, security and sanitary controls, it also aims to simplify and digitise processes, potentially reducing administrative burdens and costs. As the BTOM's implementation approaches, businesses must proactively prepare, staying informed about evolving guidelines and requirements to ensure a smooth transition into this new era of trade. With careful planning and adaptability, UK businesses can seize the opportunities presented by this model and continue to thrive in the global marketplace.

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