As a business operating in the UK you must comply with customs regulations laid down in UK law, administered and policed by HMRC. You must also have procedures to establish the correct data for customs declarations and as well as having competent, and skilled staff undertaking customs and international trade activities.
HMRC audits UK companies who import and export; they do so to ensure that they are complying with UK regulation and providing accurate statistics. As an importer or exporter of record you have responsibilities around record keeping (typically between 4 and 6 years) and ensuring that these records are easily accessible in the case of a customs audit. HMRC audits are typically on-site.
What will HMRC want to see?
The data HMRC will want to see will depend on whether it is an import or export audit. For example, for an import audit, they will likely want to see completed C88/SADs, sales contracts/emails, commercial invoices with Incoterms, packing lists, transport documents (bill of lading, airwaybills, etc.), agents’ invoices, payment terms, and evidence of valuation (basis of import duty and VAT charges). Export audits will focus more on declared value of goods, reviewing any licensable goods, bills of material linked to origin declarations, export preference documentation, and importantly, proof of export.
Many companies leave their customs declarations to their agents and freight forwarders and are not aware that the correct lodgement of a customs declaration is their responsibility, and how incorrect declarations can adversely affect the level of duty payable. HMRC is putting more responsibility on traders and are intending to run stricter audits in the hope of increasing the number of “compliant” companies allowing them to concentrate on those that are not.
Knowing that there are both administrative penalties and criminal offenses for breaches of customs obligations, preparing for a customs import/export audit can be stressful and challenging, this is where GTD can help. We conduct on-site, customs audits, exploring processes, systems and documentation, detecting areas of non-compliance and helping ensure you are maintaining the correct data and documentation, and importantly, for the requisite time. Essentially, we aim to ensure your are compliant and prepared for any future audit, where discrepancies are detected, we can help you proactively address and correct these with HMRC.
Global trade can exert pressure on internal know-how, capacity, and finances; indeed, this can dissuade many companies from embarking on it in the first place. Our Global Trade Manager programme bolsters your company’s efforts by managing your entire international trade function as integrated members of your team; once your revenues justify bringing on full-time staff, we help you recruit and onboard new hires.
If you are a UK importer or exporter, it is essential you understand what is expected of you from a customs compliance perspective; the costs of getting this wrong can be significant. Our popular Trade Compliance Review is like a mini HMRC Audit, identifying discrepancies with processes and documentation that can be dealt with proactively.
Trading globally can be more costly than trading within your domestic market; traders need to seize opportunities to safeguard cash. Inward processing (IP) is a duty relief procedure that allows goods to be imported into the UK for processing or repair with suspension of import duties and VAT. With a 100% success rate of achieving full authorisation, we have saved clients £1000s in unnecessary duty and VAT.
HMRC offers several customs facilitations and simplifications to help alleviate the burden of import duty and VAT on traders’ cashflow and profits. Global Trade Department frequently advises companies on the exact compliance requirements surrounding the use of procedures like Outward Processing (OP) and has a 100% success rate in applying for Full Authorisations on behalf of clients.
Obtaining authorisation to operate a private customs warehouse is just one of several facilitations or simplifications offered to UK established companies by HMRC to help reduce the burden of import duty and VAT.
GTD assists companies with what can be quite a complex and arduous application and inspection process.
Authorised Economic Operator (AEO) status has become an internationally recognised quality standard demonstrating that a company has met the highest standards of customs compliance and/or supply chain safety and security. Global Trade Department has hands on experience helping clients navigate the application process and obtain the authorisation swiftly and on first attempt.
Obtain an impartial, outside-in assessment of your current global trading processes and practices, with practical recommendations of how you can incorporate sustainability values and targets to meet future regulatory requirements and drive long-term growth.
Great Britain: Global Trade Department Ltd, Kingston House, Great Western Way, Swindon, Wilshire, SN5 8UB, Great Britain.
Global Trade Department Ltd is a company registered in England and Wales, Company no: 07000152. VAT no: GB994 7629 49
EU/Northern Ireland: Global Trade Department (NI) Ltd, Office 834, 92 Castle Street, Belfast, BT1 1HE, Northern Ireland.
Global Trade Department (NI) Ltd is a company registered in Northern Ireland, Company no: NI724330
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