Business Health Check

Consider the following questions carefully!

As an importer or exporter, do you provide adequate information to your freight agent to ensure they are making accurate declarations to Customs at either import or export on your behalf?

Remember that you are liable for any Customs debt or errors that are made and you may be liable to Customs Civil penalties.

Do you receive a copy of the electronic Customs declaration (C88) together with the associated print (E2) detailing the customs charges?

Customs auditors will require site of these documents on every audit. Remember, without them you cannot confirm that your agent has provided all the correct information electronically to HM Revenue & Customs.

As an importer or freight agent, are goods being valued correctly at import/export? 

Import valuation, in particular can be a complex issue and incorrect valuation may lead to a Customs debt or can result in you paying too much duty/VAT.

Are the goods classified correctly?

Incorrect classification can lead to both overpayment or underpayment of Customs duty and render you liable to civil penalties.

Are your imported/exported goods declared to the correct procedure code?

For example, goods imported permanently are liable to payment of Customs duties and/or VAT.  

Goods imported:
 - temporarily 
- imported for processing and re export, 
- imported having undergone processing outside the EU, 
- returned to the UK without processing

and imported under numerous other circumstances may be liable to reduced or nil rates of duty and/or VAT. See the 'Services' page for more information.

Failure to give correct or insufficient information to your agent or agents not requesting relevent information  may render goods liable to duty and VAT payments that would normally be avoided.  

Do you import or export from/to countries with preferential trading agreements with the EU (UK)?

You may be eligible to ask for preference certificates at import (allowing for reduced or nil duty rates) and/or issue preference certificates at export allowing your goods to enter the preference country at reduced or nil duty rates. But beware, there are complex origin rules which need to be proved before you can benefit ! 

Are you aware of the Customs facilitation schemes (regimes) and simplifications available to you to reduce your duty liability and/or accelerate & simplify the process of importing and/or exporting your products.

There are many schemes available including Inward Processing relief, Outward Processing Relief, Customs Warehousing, Temporary Import, End Use etc. Simplifications include Local Clearance & Simplified Declarations.

Many of these facilitations and simplifications require pre approval by HMRC and the ability of the business to maintain adequate records and an audit trail to satisfy Customs requirements.

Have you considered applying for Authorised Economic Operator (AEO) status.

AEO can offer many advantages by way of Customs facilitation and indicates that you are a reliable and secure player in the International Trade supply chain. 

The advantages will be even more evident when the revised EU Customs legislation is introduced in 2013. The criteria for accreditation is very strict so you should start the process of reviewing your procedures now!

CONSULTATION/ADVICE AVAILABLE ON ALL OF THESE TOPICS!


 

 HMRC Webpage Link:  

HMRC.GOV.UK