Customs Processes

Every import of goods from the EU into the UK will first require an exit notice and export declaration to the customs authority in the EU state of export and entry notice and a customs declaration in the UK to HMRC. Equally every export of goods from the UK to the EU will require a prior exit notice and customs declaration to HMRC and prior notice and a customs declaration to the customs authority in the EU state of import.

Carriers will also have to give electronic manifests of all goods on every movement. The entry notice and exit notice must be given by the carrier but can the delegated to the trader. Declarations may be made by traders directly, by their freight forwarders/logistics providers or by customs agents.

Checks and verification will be required by way of risk analysis and random policing at or near the border for customs, VAT and regulatory compliance purposes, both on the EU and the UK side.

Making Customs Returns

It is likely that many businesses will need to use their freight forwarder or logistics providers or employ another customs agent in order to undertake the online filings which are required. The customs forms and declarations need to be undertaken in relation to every transportation of goods across borders.

To put it crudely, the difficulty and technicality of making the return are somewhere between regular VAT and PAYE returns which most businesses undertake themselves to year-end corporation tax returns which most businesses undertake through their accountants or other tax advisers.

In view of the costs, regularity and likely repetition of the process, it may be a practical possibility or a financial necessity for many businesses to undertake the customs declaration process in-house. For smaller consignments, it may be the only economic proposition.

In some cases, it may not be practically possible for the trader to undertake customs declarations, as all the requisite information will not be available at the required time.

Even if the customs process is not undertaken in-house, it will still be necessary to furnish the necessary information to and liaise with the logistics provider in good time to allow them to undertake the returns.

Importer and Exporter of Record Required

Every EU to UK  import will also be an EU export and every UK to EU export will also be an EU import. Even if a trader can handle the imports and exports custom process in-house,  the EU  based importer or exporter must also be able and willing to undertake the customs process on its side. If not,  it may be necessary for the trader to arrange to clear the movement of the EU side. It may not be practically possible to do this at all and or at least without the assistance of customs agents and their networks.

Unless the movement of goods is an import by an EU based importer who can deal with customs formalities itself or export by an EU-based exporter who can deal with the EU formality itself then the UK trader may be obliged to deal with customs on the EU side as well at UK side.

This may be required in moving goods from a UK depot to the EU for distribution and transport onwards within the EU.  In these circumstances, if there are customs duties consideration might have to be given to facilitation by which goods are put under customs control until duties are paid.

A UK trader who wishes to distribute onwards in the  EU might need to enter an arrangement with an EU importer or establish a depot within the EU to clear goods through on the EU side and bring them into free circulation within the European Union.

Customs facilitation

There is a wide range of customs simplifications, which may assist traders. Some enable reduced and simplified declarations or declarations in the trader’s records. HMRC approval is usually required.

There are a number of customs processes that allow deferral, management or reduction of customs duties.

Effective trusted trader in the sense of attracting minimal HMRC interventions can be achieved by a good record of compliance.

There are two types of authorised economic operator which enjoy significant facilitations. However, obtaining that status does not remove all compliance obligations.

Approval is available only to relatively larger scale organisations with sufficient track records, controls checks and security to assure the customs and revenue authorities of their trustworthiness and reliability. They may, for example, be obliged to use carriers and hauliers who themselves have the requisite certification.