Navigating emerging trade and compliance challenges: key updates for 2025

By Ana Christie, CEO of Sussex Chamber of Commerce.

In an increasingly globalised economy, businesses must stay informed about regulatory changes to maintain compliance and competitive advantage.

1. Carbon Border Adjustment Mechanism (CBAM)

The Carbon Border Adjustment Mechanism (CBAM) is a policy designed to address climate change by ensuring that imported goods face a carbon price similar to domestic products. Its primary goal is to prevent carbon leakage, which occurs when companies relocate production to countries with weaker climate policies to avoid stricter regulations.

CBAM in simple terms:

• What it does: Adds a fee or tariff on imports of carbon-intensive goods (like steel, cement, and aluminium) based on the amount of carbon emissions produced during their manufacturing.

• Why it exists: To create a level playing field for industries in countries with strong carbon reduction policies and encourage other countries to adopt greener practices.

• Who it affects: Importers of certain goods into regions that implement CBAM, like the European Union (EU), and possibly the UK in the future.

Measure your business’s readiness for EU CBAM compliance

Welcome to ChamberCustoms’ free, interactive Health Check Tool. This tool is designed to help UK exporters understand their level of preparedness for the EU’s CBAM, ensuring you meet the compliance requirements for carbon emissions reporting when trading with the EU. https://www.chambercustoms.co.uk/cbam-health-check-tool

2. Border Target Operating Model (BTOM)

The UK’s Border Target Operating Model (BTOM) is a significant overhaul of post-Brexit customs and border processes. It focuses on balancing trade facilitation with robust security controls.

Key features:

• Streamlined controls: Introduction of risk-based inspections to replace the blanket checks previously in place.

• Digitisation: Greater reliance on digital systems for declarations and documentation, aiming for seamless trade operations.

• Phased rollout: Businesses should anticipate gradual changes throughout 2025 as the model matures.

Impact on businesses:

• Adapt processes: Ensure systems and teams are ready for updated documentation and inspection requirements.

• Training: Equip staff with knowledge of BTOM processes, particularly in logistics and compliance roles.

• Leverage opportunities: Businesses that adapt quickly may benefit from reduced delays and increased efficiency.

3. New rules for Northern Ireland (NI) trade

Post-Brexit arrangements continue to evolve, with new safety and security declaration requirements and rules for business-to-business parcel movements to NI coming into effect.

Safety and security declarations:

• Businesses must submit detailed information on goods entering NI, ensuring compliance with both UK and EU standards.

• These declarations aim to enhance traceability and maintain safety while minimising risks of non-compliance.

Parcel movements:

• New rules streamline business-to-business parcel shipments, requiring accurate data on origin, destination and content.

• Trusted Trader Schemes may allow for reduced administrative burdens for eligible businesses.

What to do:

• Update systems: Integrate updated requirements into shipping software and logistics workflows.

• Engage with authorities: Work with customs authorities to clarify requirements and ensure timely compliance.

• Communicate with partners: Ensure suppliers and carriers understand their responsibilities under the new rules.

4. General Product Safety Regulation (GPSR)

The General Product Safety Regulation came into force on 13 December 2024 and places new responsibilities on British companies exporting to the EU, European Economic Area (EEA) and Northern Ireland (NI).

The legislation places new requirements on certain, but not all, goods exporters in Great Britain to the EU, the EEA and NI. 

The General Product Safety Regulation was proposed by the European Commission to address safety concerns over products entering the EU. It is designed to deal with goods sold via online marketplaces or other distance sale means which were non-compliant with EU safety standards and risked harm to consumers.  A precautionary principle runs throughout the new obligations and processes introduced by the Regulation, alongside strong traceability of products. Your Key Questions Answered: https://www.britishchambers.org.uk/news/2024/12/general-product-safety-regulation-your-key-questions-answered/

Sussex Chamber Global Player Membership

Staying ahead of changes is essential for businesses to thrive in a complex global landscape. We have trusted and qualified specialists in Sussex Chamber to help your business flourish on a global scale. 

Join now:
https://www.sussexchamberofcommerce.co.uk/sussex-chamber-membership/join-now.html

Navigate the challenges of 2025 and beyond with confidence.