Update for Businesses Trading with Ukraine and Russia

Date: 01/03/2022
Author: Greater Manchester Chamber of Commerce
Company: Greater Manchester Chamber of Commerce

BREAKING NEWS   

The UK government has announced further sanctions against named persons in the Donbas region of Ukraine. After Easter, BCC will be providing input on food supply chains caused by the war in Ukraine to senior officials from the Department for International Trade (DIT). If you have any issues on this or other supply chain concerns, please contact William Bain.

Revised travel advice from the Foreign, Commonwealth and Development Office (FCDO) states that UK nationals should not seek to travel to Russia. Furthermore, all UK nationals whose presence in Russia is non-essential should return to the UK by remaining commercial routes.

Before the end of this week, legislation to enact the ban on export of luxury goods from the UK to Russia and to ban imports of steel and iron from Russia and Belarus is set to be laid before the UK Parliament.

This week, the BCC made a submission to the Trade Remedies Authority in terms of supporting the proposed revision of steel tariff rate quotas (given the exclusion of Russian and Belarusian steel imports) to increase quotas covering category 1 and 13 steel products imported from the rest of the world.

In March the UK government introduced customs easements to enable easier movement of aid goods to Ukraine.  Read the full Press Release here

Helping people in Ukraine

  • the UK Government has issues the following advice for businesses or individuals wishing to support Ukraine, click here to find out more
  • HMRC understands that people in the UK want to help those affected by the invasion of Ukraine and is aware that the British public has already responded with immense generosity, donating millions of pounds to support those impacted by the war.
  • However, in line with advice from the Foreign Commonwealth and Development Office and the Charity Commission, HMRC recommend that individuals and organisations wanting to help should give money through the Disasters and Emergencies Committee campaign (launched on 3 March) and other trusted charities and humanitarian aid organisations, rather than donating goods and seeking to send or drive them to the region.
  • Disasters and Emergency Committee has launched their Ukraine fund and the UK Government has pledged to match public contributions from the public pound for pound, up to £20 million. More information can be found herwww.dec.org.uk/appeal/ukraine-humanitarian-appeal and eligible UK taxpayers can Gift Aid donations.
  • The Ukrainian Embassy in the UK has established this page for those who may wish to donate to direct funds

Humanitarian Sponsorship Pathway

The Home Office has also announced a Humanitarian Sponsorship Pathway led by the Department for Levelling Up, Housing & Communities (DLUHC).

Individuals, charities, businesses and community groups will be able to sponsor Ukrainian nationals with family ties to the UK. 

No specific detail has been announced by the government.  When we hear more, we shall communicate on this page or through our marketing channels.

Advice for businesses

  • The Department for International Trade (DIT) recommends that concerned companies trading with Ukraine and Russia contact the Export Support Service (ESS) on 0300-303-8955.   The ESS helpline hours have been extended this week from 8am to 10pm Thursday-Sunday inclusive. DIT will review this next Monday to examine the case for out of hours provision. Alternatively, companies can access the ESS landing page which also features a dedicated link for Ukraine and Russia enquiries.

  • You can also submit specific queries regarding trade with Russia, Ukraine and Belarus here
  • Most goods crossing borders require customs declarations and may be subject to checks. Duty and other border taxes may be payable on entry into other customs territories, such as the EU. This includes goods donated to charities, such as food, blankets and clothing (known as ‘in kind assistance’).  See latest announcement above on easement on customs. 

  • If you send goods to Ukraine, or the surrounding countries, to support those affected by the invasion without following export and import processes, your donations could be delayed getting to people in need. HMRC strongly encourage organisations wishing to support efforts in Ukraine, and in the surrounding countries, to follow FCDO advice and make a financial donation through a trusted charity.

  • UK businesses can contact the Export Support Service (ESS) which the Department for International Trade has expanded to act as a single point of enquiry for businesses and traders with questions relating to the situation in Ukraine and Russia. The ESS helpline number is 0300 303 8955 and is currently operational Monday to Friday 0800-1800, or support can be accessed online at www.gov.uk/ask-export-support-team

Advice for charities

  • We know that many charities have launched emergency funding appeals to provide humanitarian aid in Ukraine and we strongly advise organisations in the UK to focus on financial aid.
  • Like businesses, charities will need to follow UK export guidance and comply with any import rules and pay any taxes or duty owed in the EU or other country that the goods are being sent to, including Ukraine.
  • If you send goods to Ukraine, or the surrounding countries, to support those affected by the invasion without following export and import processes, your donations could be delayed getting to people in need. We strongly encourage organisations wishing to support efforts in Ukraine, and in the surrounding countries, to follow FCDO advice and make a financial donation through a trusted charity.
  • UK businesses (including charities) can contact the Export Support Service (ESS) which the Department for International Trade has expanded to act as a single point of enquiry for businesses and traders with questions relating to the situation in Ukraine and Russia. The ESS helpline number is 0300 303 8955 and is currently operational Monday to Friday 0800-1800, or support can be accessed online at www.gov.uk/ask-export-support-team.

Sanctions

You can find more information on the sanctions affecting trade with Russia here.  These sanctions have been updated as of 1st March and include Financial sanctions.   

Also please check our Update on Sanctions applied to trade with Russia here

Export Licences

The Secretary of State for International Trade has suspended all extant export licences for dual-use items to Russia. This will include licences with Russia as a final destination.   In addition the approval of new export licences for dual-use items to Russia has been suspended with immediate effect.

If you have licences in scope, Export Control Joint Unit (ECJU) will contact you to confirm the decision and advise about actions you will need to take.

For more information, click here

Moving humanitarian goods from Great Britain to the EU

  • There is support available for moving goods and HMRC has useful step by step guides that help to understand the processes for exporting goods, along with general information on the export declaration process online at www.gov.uk/topic/business-tax/import-export.
  • The management of EU import and export procedures is the responsibility of the customs authorities of the EU Member States that the humanitarian goods are entering into or leaving. We would advise businesses and individuals to confirm the processes with the relevant Member State and any conditions or procedures that may apply. More information can be found at ec.europa.eu/taxation_customs/home_en.

Chamber Customs - Helping with Export Customs Clearance from the UK to Ukraine

If you are are sending humanitarian aid to Ukraine, we can help with the customs process in the UK.  ChamberCustoms will be offering FREE one off-export declarations for goods leaving the UK for humanitarian reasons.  For more information click here.

Questions and Answers about Trading with Russia, Ukraine and Belarus

British Chambers of Commerce has produced a Q&A sheet regarding Ukraine and related trade issues, which can be viewed here

Force Majeure Certificates

Has your business with partners in these markets have been affected? 

These are certificates attesting the existence of force majeure circumstances i.e. circumstances beyond the control of the applicant such as fire, flood, industrial disputes, pandemic, wars and conflicts etc.   Please note that we can only certify factual details that can be evidenced. We cannot comment as to whether or not Force Majeure applies or argue such claims on behalf of the applicant. 

If you need a Force Majeure Certified by our team,  please check next steps how to obtain one here

ATA Carnets

Carnet issuance to Belarus, Russia and Ukraine is currently suspended until further notice.  Traders who are already in any of these countries and unable to re-export their goods before their carnet expires must apply for a replacement carnet.   If you need a replacement, please click here or contact our team at exportdocs@gmchamber.co.uk

Additional Resources & Guidance 

Check on-demand podcasts from Chamber Member Squire Patton Boogs focus on sanctions, options for Russia operations, people and refugees and other Russian counter measures

Need further support or to report any issues? 

Companies needing advice can also contact Greater Manchester Chamber of Commerce at benefits@gmchamber.co.uk and exportbritain@gmchamber.co.uk or on 0161 393 4321 | 14.