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.
Our Global Trade Manager programme bolsters your company’s efforts by managing your entire international trade function; once your revenues justify bringing on full-time staff.
GTD supports companies to resolve some of these issues and more.
Most customs issues arise from inaccurate and incomplete documentation, logistics problems, and regulatory non-compliance.
GTD conducts 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.
Global Trade Department has a 100% success rate of obtaining Full Authorisation for IP on behalf of clients. We work with clients to ensure that authorisation prerequisites are in place, and to understand their 3-year or 5-year forecasts (depended on commodity) for processing and/or repair.
Global Trade Department frequently advises companies on the exact compliance requirements surrounding Outward Processing, especially in the case of ‘replacement goods’ using either the Standard Exchange System (SES) or the Prior-Export Equivalents (PEE) process. We also have an excellent awareness of the evidence a company needs to supply and have a 100% success rate in applying for Full Authorisation 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.
Global Trade Department has worked with several clients to help them achieve this standard, considered to be a form of trust or self-auditing by HMRC. We are familiar with the evidence companies must show to demonstrate excellent standards of tax and customs compliance, record keeping, financial solvency, competence and professional qualifications, and safety and security.
GTD has successfully obtained VAT registrations and EU EORI numbers in all of the major EU Member States, enabling B2C and B2B companies to appeal to a wider range of customers due to their perception of a much improved purchase and delivery experience. If you are looking to improve the EU customer experience through better management of VAT and offering Incoterms® DDP, get in touch.
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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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