Export ~ Customs Compliance
International Trade Development Liaison Officer
HM Revenue and Customs
February 2012
Exports Customs Compliance
Why is compliance important?
Failure to comply with the correct procedures can lead to •
Delays at the port/airport/border
•
Duty suspension being disallowed
•
VAT zero rating being disallowed
•
Penalties
•
Impact on AEO and other authorisations
Declaring Goods for Export
You are responsible!
“Without prejudice to the possible application of penal provisions, the
lodging of a declaration signed by the declarant or his representative
with a customs office or a transit declaration lodged using electronic
data-processing techniques shall render the declarant or his
representative responsible under the provisions in force for:
− the accuracy of the information given in the declaration,
− the authenticity of the documents presented, and
− compliance with all the obligations relating to the entry of the
goods in question under the procedure concerned.”
Commission Regulation (EEC) No 2454/93 – Laying down provisions for the implementation
of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code
Export Process
Forwarder/Declarant
Declare
Export
Carrier/Port Operator/Loader
Customs (CHIEF)
Process
Export Process
Forwarder/Declarant
Declare
Customs (CHIEF)
Process
Deliver to frontier
Present/Arrive goods
Accept X2
Control
Move goods
Release P2P
Export/Depart
S8 Movement
Departure Advice
Carrier/Port Operator
Declaring Goods for Export
Indirect Exports
•
Goods which exit the EU via
another member state must be
accompanied by an EAD
(Export Accompanying Document)
•
The declaration must include the
„office of exit‟ code in box 29
•
The EAD must be presented to customs
at the Office of Exit (from the EU)
Presentation and Arrival of Goods
Presentation of Goods
•
This is a legal requirement and allows customs to:
•
Carry out risk analysis and;
•
Exercise controls (such as licence checks etc.) and inspect
paperwork/goods if necessary
•
Although it is usually the carrier/port operator who actually notifies customs of
the arrival of goods, it is your responsibility to make sure it is done.
•
You will receive an X2 (entry acceptance advise) once the goods are
presented
•
If you don’t receive an X2 you should investigate immediately.
Goods Departure
Goods Departure Message - is important because ..
•
It provides evidence of export – to support VAT zero rating and duty
suspension.
•
You should receive an S8 (Movement Departure Advice):
− Immediately on export from the UK for direct exports
− On exit from the EU for indirect exports (covered by an EAD)
•
If you are sure goods have departed but have not received an S8 after 24
hours you should investigate immediately.
What is P9 and X9?
22 days after pre-lodgement of export declaration CHIEF issues declarant a
P9 warning report stating goods have not been legally presented to HMRC
by entering an arrival message to CHIEF.
P9 report instructs declarants to either:
•
extend life of declaration,
•
request retrospective arrival for direct exports via NCH
•
or delete duplicate entries.
If no action is taken then, after further 38 days the declaration is classified X9
and deleted from CHIEF. A P5 is sent to the submitting trader to advise of
deletion. Deleted data is not retained on CHIEF.
Total non arrived X9 export declarations per month
Month
Non Arrived
Export
Declarations
Jan-11
3535
Feb-11
4822
7000
Mar-11
6599
6000
Apr-11
4554
5000
May-11
4448
4000
Jun-11
4815
3000
Jul-11
3829
2000
Aug-11
5089
1000
Sept-11
3653
0
Ja
n11
M
ar
-1
1
M
ay
-1
1
Ju
l-1
1
Se
p11
No
v11
Ja
n12
Non Arrived Export Declarations
Non Arrived Export
Declarations
Declaring Goods for Export
Good Housekeeping
•
Request clear and written instructions from the exporter
•
Regularly monitor declarations you have made
•
Unwanted declarations should be cancelled
•
P9 reports should be actioned
•
X9 reports should be investigated and resolved.
Taking no action is NOT an option
•
HMRC will not continue to tolerate the current situation
•
Non compliance may affect your standing with HMRC and lead to
penalties and the withdrawal of AEO authorisations etc.
Further information
Public Notice 275 (Export procedures)
NES homepage on www.hmrc.gov.uk > Import & export > National Export
System
• Best Practice Guide
Business Link website www.businesslink.gov.uk > International trade > Import
and export procedures
Customs Information Papers:
• CIP (10) 33 & 63
•
CIP (11) 89
•
All CIPs published on www.hmrc.gov.uk > Import & export > JCCC Papers
AEO ~ Is it time to apply?
Is the UK falling behind it’s EU business partners?
AEO - Current Position
UK – 513 applications received.
EU* (including UK) -
•
Certificates issued – 292
•
•
42 for Customs simplifications.
•
Germany 4190
•
11 for Safety & security.
•
Sweden 312
•
239 Full.
•
Netherlands 765
•
Italy 458
•
Austria 202
•
France 587
•
Poland 495
8656 certificates issued
*Figures from the EU Public Database on 30January 2012 - available on Europa website at
www.ec.europa.eu/taxation_customs/dds/cgi-bin/aeoaeoquery?Lang=EN
AEO – EU AEO Database
AEO seen as a business standard globally.
Programmes launched
AEO
EU
Japan
Korea
Malaysia
Norway
Switzerland
Guatemala
Andorra
AEO equivalent
Argentina
Canada
China
Costa Rica
Jordan
New Zealand
Singapore
USA
In the pipeline
Botswana
Chile
Columbia
Macedonia
Israel
Morocco
Tunisia
Turkey
Why Should You Apply Now?
1. AEO seen as a business standard globally
2. The UK falling behind it’s EU partners - possible missed commercial
opportunities
3. Mutual Recognition Agreements
4. Trading with the USA? Draft agreement states:
“each authority will treat operators in a manner comparable to the way it treats
members in its own programme, including taking them favourably into account in their
risk assessment, for the purposes of inspections or controls”
Why Should You Apply Now? (contd)
5. Fewer physical and document based controls
- not limited to controls at import & export
- EU Guidelines confirm this includes fewer post clearance controls e.g. audits
6. Easier admittance to customs simplifications e.g. CFSP, NES SDP/LCP,
transit
7. Further benefits when MCCIP implemented
8. Benefits / recognition across Government e.g. DFT (Regulated agent &
Known Consignor), approved exporters & licensing requirements
Questions will be taken
following the presentations
If you would like to discuss AEO further with
HMRC, contact your local ITDLO who can
arrange a meeting –
Dave O’Gara: 0161 475 8482
Gareth Stranaghan: 02890 562755
Keith Robe: 0191 225 4478