Customs Compliance Audits: Have you got it right?
18 July 2024
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). Furthermore, companies authorised for one or several of HMRC’s customs special procedures are likely to see intensified scrutiny in these areas that may involve longer on-site time with inspectors.
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. Where customs special procedure authorisations are in place, HMRC is likely going to want to see that goods have been correctly discharged.
But I use an agent and/or a freight forwarder
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 both stressful and challenging.
How can the Ashfield Accelerator Trading Overseas programme help?
The Ashfield Accelerator programme has recruited Global Trade Department to help with these matters along with a wealth of other import and export challenges and objectives. GTD conducts on-site, trade compliance 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 you are compliant and prepared for any future HMRC audit. Where we detect areas of non-compliance, we support you to address these correctly and proactively with HMRC, so you reduce the chances of any hefty penalties.
Eligibility
You can be a novice or experienced importer or exporter, but you must be an SME based in Ashfield.
How to register
To proceed, simply book an initial exploratory 1:1 session with our global trade specialist via Calendly. Alternatively, you can email ashfield@globaltradedept.com
NB: You may also like to access other support offered by Global Trade Department as part of the Ashfield Accelerator ‘Trading Overseas’ programme (see below). Simply ask for more details.
- Specialist 1:1 Support sessions: Up to approx. 6 hours of company dedicated advice and support via Trade Clinics and Deep Dive sessions focusing on import and/or export.
- Sustainable Trade Planning: Global sustainability consultation highlighting regulatory impacts, both current and future; inc. carbon calculation and full review of manufacturing and supply chain data; recommendations on improving sustainability objectives within today’s international trade activity and safeguarding against potential future disruptions to trade through non-compliance with overseas sustainability legislation.
- HMRC Authorisations: HMRC offers a wide range of customs special procedures designed to help reduce the administration and costs of trading internationally. These can be complex andThis is part of Ashfield District Council’s Accelerator Programme which is being delivered by East Midlands Chamber and is funded by the UK Shared Prosperity Fund (UKSPF). burdensome applications with much supporting documentation. Global Trade Department is well versed in applying for all of these and can dramatically improve the accuracy and first-time approval rates.
This is part of Ashfield District Council's Accelerator Programme, which is being delivered by East Midlands Chamber and is funded by the UK Shared Prosperity Fund (UKSPF).
