BIFAlink


Policy & Compliance


www.bifa.org


Instructions and the preparation of the Customs declaration It is often overlooked that when a Customs agent submits a Customs declaration, it is making a legal declaration to HMRC. It is essential that this declaration is accurate in all aspects. In order to ensure the necessary accuracy, consideration


must be given to how to collect the required information and how the information is obtained and in what form. It is very clear that Customs are placing increasing


emphasis on compliance, which requires for an audit trail to be in place. BIFA’s guidance would be to obtain as much information as possible in writing; this may be on a per consignment basis or to cover multiple transactions. The key thing is never guess or assume and always keep


accurate file records, including notes of any conversations. The entry should then be prepared in line with the instructions provided in the current version of the tariff.


Appointment of sub agent If the agent delegates Customs clearance to a sub-agent, the agreement between the agent and the principal must make an allowance for this. If it does not, the sub-agent will not be empowered to


directly represent the principal and will be considered to be acting on its own behalf, and fully liable for any Customs debt that arises.


Impact of Establishment Schedule 1 of the TCTA 2018 Section 2 “Eligibility of persons to make a Customs declaration” makes specific reference to the often-overlooked question of establishment. The law is clear on this stating that “persons may make


As previously stated, Clause 7 of the BIFA Standard Trading


Conditions states: “In all and any dealings with HMRC for and on behalf of the customer and/or owner, the company is deemed to be appointed, and acts as, direct representative only.” Where the trader is a UK-based customer of the BIFA Member, this can be incorporated at the point that a trading account is set up for the customer by the forwarder. The key point is that the customer has to acknowledge receipt, understanding and acceptance of the BIFA STC in writing as the contractual basis upon which business will be conducted, and the appointment of the Member as ‘Customs agent’. However, consideration should be given to having a specific


separate ‘appointment’ document in place. This could cover scenarios such as authorising the sub-contracting of a Customs clearance, etc. Most problems are likely to occur where there is a business


interaction between the forwarder and another entity but no contract. One common example is, for instance, between a forwarder and an ex-works shipper. The shipper can appoint the forwarder to act as its Customs agent using a letter of appointment.


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Customs declarations” only if “they are established in the United Kingdom or a specified place outside the United Kingdom”. There is additional guidance on this subject that can be


viewed at www.gov.uk/guidance/check-if-youre-established-in- the-uk-or-eu-for-customs This guidance clearly details the criteria that needs to be met


to comply with the ‘establishment’ criteria in the UK. For those entities that are non-established, the UK Customs


agent can only act as an indirect Customs agent with the additional liabilities that entails.


Postponed VAT accounting Since 1 January 2021, all VAT-registered importers have been able to use postponed VAT accounting. They are not compelled to unless they import non-controlled goods and use Delayed Declarations where an EIDR is followed by a supplementary declaration submitted to CHIEF within six months of arrival. Our guidance would be that Members should always obtain written instructions from their customers as to whether they are using postponed VAT accounting or not. BIFA will be issuing a Good Practice Guide which will include


additional guidance with regard to appointing an agent on an indirect basis and a draft copy of an empowerment document.


January 2021


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