Here is the guidance: 

Customs Debt 

If HMRC believes you are liable for a customs debt, the Department will send you a letter to let you know the decision it intends to make. You have 30 days from the date the letter was issued to reply with any information that might affect this decision. This is known as your ‘right to be heard’. 

If you do not reply within 30 days, or the information you have given does not change HMRC’s decision, you will receive a Post Clearance Demand Note (form C18) to tell you that the customs debt is now due, along with instructions on how to pay. 

If you still disagree with the decision you can submit an appeal. 



HMRC has three years from the date the customs debt was owed to notify you about it. This is normally the date of the customs entry. The three year notification period also applies to the repayment and remission process, and one year for rejected imports. This can be extended to a minimum of five years and a maximum of ten years for entries on or before 31 December 2020. 

For entries on or after 1 January 2021 the notification period can be extended up to 20 years. 

Make a Voluntary Disclosure (on form C2001) 

You can submit a Voluntary Disclosure to report an underpayment of customs duties and import VAT on form C2001CDS. An importer or their agent (representative) can submit a Voluntary Disclosure to HMRC for the following: 

• Errors identified after the original customs declaration has been submitted 
• Before the importation of goods has taken place, where there is a failure to submit a customs declaration allowing the release of goods into free circulation 

A Voluntary Disclosure can be submitted at any time using form C2001CDS. 

A C18 Post Clearance Demand Note will be issued to collect the underpayment. 

Note: You must not use form C2001CDS for VAT underpayments if you use Postponed VAT Accounting (PVA). Instead you should account for the underpaid import VAT on your VAT Return. 

Do not use form C2001, even if this payment method was selected in error. You can make the adjustments on your Periodic VAT Return. 

Interest on Customs Debt 

You will be charged interest on any debts paid more than 10 days after the issue of the C18 Post Clearance Demand Note. You will be notified of the interest charge separately, after payment of the debt. 

Who is liable for the Customs Debt? 

The person or organisation who completed the import customs declaration relating to the goods being imported is liable for the customs debt (the debtor). 

If you are the declarant but use an agent or representative to make a customs declaration on your behalf, they may also be liable for the customs debt, depending on the type of representation used to make the declaration. 

Direct Representation 

Where the representative or agent is acting as a ‘direct’ representative, in the name of and on behalf of another person and is transmitting the declaration under the representative’s/agent’s own user identity, the representative/agent must hold (and be able to produce on request to customs) written authority of their powers to act. Failure to do so will result in liability resting with the representative/agent. 

In this example, the representative’s EORI would be declared in DE 3/18 (declarant’s identity).The Representative status declared in DE 3/21 would show Direct, code ‘2’. 

Direct representation and sub-agents 

Where a representative/agent delegates the making of a declaration to a sub-agent, and the sub-agent submits the declaration on behalf of the first agent but using the sub-agent’s user identity as the authentication credential; the sub-agent must hold (and be able to produce on request to customs) written authority to act and the instructions provided for the completion of the declaration’s particulars. Failure to produce written authority will result in liability resting with the sub-agent. 

The sub-agent must be declared in DE 3/18 (Declarant’s identity). 

The representative, originally contracted to complete the customs declaration and formalities on behalf of the importer must be declared as the Representative on the declaration and appear in DE 3/20 (Representative’s identity). 

The representative status declared in DE 3/21 indicates the relationship between the representative and the importer, not the sub-agent and any other party. 

The Representative retains responsibility for ensuring the declaration is made in accordance with the instructions provided by the importer. 

Indirect Representation 

Where the representative or agent is acting as an ‘indirect’ representative in his/her own name, but on behalf of another person, both parties accept joint liability for all data transmitted under the user identity. A representative or agent failing to state the level of representation on the electronic declaration will be deemed to be acting in his/her own name and on his/her own behalf. 

In this example, the representative’s EORI would be declared in DE 3/18 (declarant’s identity). The Representative status declared in DE 3/21 would show Indirect, code ‘3’. 

Indirect representation and sub-agents 

Where a representative/agent delegates the making of a declaration to a sub-agent, in an ‘indirect’ capacity on behalf of the first agent (but using the sub-agent’s user identity as the authentication credential), then the sub-agent must be declared in DE 3/18 (declarant’s identity). 

The representative, originally contracted to complete the customs declaration and formalities on behalf of the importer must be declared as the Representative on the declaration and appear in DE 3/20 (representative’s identity). The representative status declared in DE 3/21 indicates the relationship between the representative and the importer, not the sub-agent and any other party. 

The Representative retains joint and several liability with the importer for the customs debt.