On 21 July 2022 the UK government published research on the attitude of small business to the proposed single trade window (STW).

The UK government is developing a single trade window to streamline the interaction of traders with border agencies. The STW aims to allow traders to enter transactional data into a single data portal using a standardised format.

HMRC commissioned research to understand the views of small traders on the STW and the effect on their business. Interviews were carried out with 57 small importers and exporters, between 2 February and 15 March 2022. The research looked for the views of small businesses on proposed features of the STW such as the possibility of self-declaration, pre-population, multi-filing and sharing supply chain data.

The small businesses were positive towards the proposed STW which would streamline the current system. The research showed however that the businesses varied in their understanding of Customs procedures. Some were not aware of the need for declarations as part of the Customs process, as these were being done for them by agents, and they had not realised they might be able to make the declarations themselves.

Businesses that had more knowledge of import and export declarations considered the procedure to be highly complex and that the cost of outsourcing declarations was therefore good value for them. They gave the work to agents as this avoided unnecessary problems and the risk of errors in the declarations that could result in delays to consignments of goods. The research indicated that these traders were themselves collecting a certain amount of the data used in the declarations and sometimes underestimated their own knowledge of the process.

Only a relatively small number of the traders in the survey completed the declarations themselves through the use of commercial software. Those doing their own declarations had usually accessed training to learn the system, after which the completion of declarations was found to be relatively straightforward.

Traders were positive towards the possibility of reduced duplication resulting from the single point of entry and from data sharing between government departments.

Self-declaration

Self-declaration was viewed positively, with traders generally needing to consider if the advantages outweighed the significant time investment of learning the procedures. Businesses that were already completing the declaration in-house saw the advantages of the STW to their business in terms of greater control of the procedures and of cost reduction. Some considered that self-declaration could potentially increase their international trade.

Businesses trading small volumes or exclusively using Fast Parcel Operators considered that the STW could mean duplication of their work rather than simplification. The self-declaration service might not be suitable for their type of business or their skill set.

Businesses saw a need for support from HMRC in relation to self-declaration, in the form of simple guides for non-experts, a telephone helpline or seminars and webinars. Pre-population of returns with available data was also viewed positively as it could save time and reduce duplication.

Businesses saw risks from multi-filing which they considered could reduce control and simplicity. There were also mixed views about linking supply chain data with government systems.

Conclusions

The research showed that small traders needed some education to help them understand the practical aspects of the STW and self-declaration. The advantages of self-declaration are only moderate for businesses that are not already completing and submitting declarations in-house. Although traders could achieve more control and cost savings through self-declaration, the research indicated that they valued the expert advice given by agents, the risk of delays to consignments and the importance of reliability.

As a result of the research HMRC considers that pre-population could increase interest in self-declaration by showing traders that the functionality in the STW could speed up declarations. The research showed that businesses would prefer multi-filing to be optional, with confidentiality for price and supplier information where possible.

Traders who already use software could reduce duplication by integrating self-declaration systems with trader and carrier software. As the perceived complexity of the process often makes businesses turn to agents for help, the guidance on the STW should be given in straightforward and simple language.