Export Procedures

Don't let the Customs Declaration Service Invalidate your Export Declaration!

by Bernard O'Connor • 30 Apr, 2024
HMRC has written to all exporters, advising them of the importance of ensuring that CDS export declarations are not only arrived at export locations, but that they are also physically departed on the CDS.

HMRC advises that the National Export System (NES) XML and email service will close for export declaration submissions on June 4th, 2024

by Gail Leeson • 07 Mar, 2024
HMRC has written to SMEs that use the XML email service to submit their export declarations to advise that the service will close by 4th June 2024.

CDS Exports Update

by Niamh O'Connor • 06 Nov, 2023
HMRC recently communicated directly with those declarants who are yet to subscribe to the Customs Declaration Service (CDS). The traders have been identified, as they are currently using CHIEF to make export declarations and are being advised that the last day for making them on CHIEF is 30th March 2024.

Prepare to move your exports to the Customs Declaration Service

by Niamh O'Connor • 27 Sept, 2023
In August 2023, HMRC unveiled their phased plan for rolling out the implementation of CDS (Customs Declaration Service) for exports, following its successful implementation for imports in 2022.

HMRC published the Final Border Target Operating Model today, August 29th, 2023

by Niamh O'Connor • 29 Aug, 2023
The UK Government has today (29th August 2023) published its Border Target Operating Model (BTOM), setting out new controls to protect the UK against security and biosecurity threats and create a world-class border system for trade in goods. The BTOM confirms a delay to UK import controls due this October.

Case Study for the use of a 2200 series Customs Procedure Code (CPC) on CHIEF or CDS

by Bernard O'Connor • 21 Aug, 2023
VAT Payable - Non-Warranty Repair Export through CHIEF Customs Procedure Code 2200 000 can be used for duty-free goods that are being temporarily exported outside the UK for process, repair, adaptation, reworking or making up. Use of this code constitutes a declaration that the goods are intended for temporary export, for the purpose of processing or treatment outside the UK, and for re-importation after completion of the process. Export through CDS Customs Procedure Code 2200 B54 can be used to for duty-free goods that are being temporarily exported outside the UK for process, repair, adaptation, reworking or making up. Use of this Procedure Code constitutes a declaration that the goods are intended for temporary export, for the purpose of processing or treatment outside the UK, and for re-importation after completion of the process. Note: Procedure 2200 B54 cannot be used if the goods are only duty-free by virtue of a Free Trade Agreement. Procedure 2200 B53 must be used instead. Note that the procedure can only be used 3 times in any 12-month period. Scenario In our scenario, the tools are being temporarily exported outside the UK for a process (sharpening). They will then be re-imported to the UK after completion. The “Process”, sharpening in this case, would be subject to VAT on importation to the UK under the following guidelines. Re-import through CDS (CHIEF Can no longer be used) Procedure 6122 B06 should be used to re-import the duty free goods after processing, with VAT chargeable at importation (unless exemption is claimed) on the following value: The freight charged for the transport to and from the processor’s premises (but not insurance) The price charged for the process, repair or service, including any charge for parts and materials To declare the amount of VAT payable on an import customs declaration, Tax type code B00 should be used, with the amount of VAT payable or postponed manually calculated. HMRC advises that the use of Procedure 6122 B06 constitutes a declaration that the goods: Were previously exported outside the UK Were exported using CPC 22 00 000 in SAD Box 37 under CHIEF, or Were exported using Procedure 22 00 B54 in DE 1/10 and 1/11 under CDS Were intended at the time of their export to be re-imported after completion of the treatment or process outside the UK Have been repaired, processed, adapted, reworked or made up outside the UK Ownership was not transferred to any other person at exportation or during the time they were outside the UK To conclude, the tools which were temporarily exported for a process (sharpening) are subject to VAT at importation on the cost of the process, including parts and materials used in the process. VAT Exempt - Warranty Repairs An example of VAT not being payable upon importation would be where the “tool” was under a warranty or was faulty and was being repaired as a part of this cover. VAT exemption would apply and therefore, VAT would not be payable at re-importation.

Moving Goods to and from the UK Continental Shelf

by Niamh O'Connor • 26 Jul, 2023
The United Kingdom Continental Shelf (UKCS) is a region of immense significance for the UK's economy and sovereignty. It stretches across vast expanses of the North Sea, encompassing numerous oil and gas fields, and diverse marine resources. From a customs standpoint, the UKCS presents unique challenges and opportunities related to trade, customs regulations, and defining maritime boundaries.

The Benefits of a Shipping Log for Your Business

by Jane Pilkington • 21 Jul, 2023
A shipping log serves as a centralised record-keeping system for all import-related information. It encompasses detailed entries, each associated with a unique reference. Moreover, the record allows for creating folders where relevant documents, emails, and other resources can be conveniently organised. The actual value of a shipping log lies in its adaptability, as it can be tailored to meet the specific needs of your business, ensuring a personalised and efficient approach to managing import operations.

Consignor or Consignee? What you need to know as a Declarant, Exporter or Importer.

by Sarah Adams-Greener • 27 Feb, 2023
HMRC defines the Consignor for exports from GB (Wales, Scotland & England) as; "The exporter is the person on whose behalf the export declaration is made and who owns the goods or has a similar right of disposal over them at the time when the declaration is accepted."

FAQ's

  • We export goods to India from Felixstowe, via Rotterdam, where they are transhipped from a feeder to a deep sea vessel. Should the Felixstowe to Rotterdam stage of the shipment be reported under Intrastat?

    No. Your intention is to export the goods out of the EU, and you must therefore complete normal indirect export formalities for shipment of the goods from the UK to India. This means completing an Export Accompanying Document (EAD) as the partial export entry in the UK and this must accompany goods to Rotterdam. It will be used there by the Dutch authorities to complete the export entry outside the EU. You should ensure the EAD has been completed within 15 days of opening by using the Europa MRN transit database http://ec.europa.eu/taxation_customs/dds2/ecs/ecs_home.jsp?Lang=en NB: Goods being imported into the UK from outside the territory of the EU may legally be cleared at the first EU port of call (often Rotterdam bound for the UK). The onward journey to the UK could be reported under Intrastat; however, it is preferable that the appropriate import documentation is used to cover the whole journey from the extra-EU country (e.g. India) to the UK, including transhipment in the original port of arrival in the EU. In the case where Rotterdam is the port of transhipment, the goods were never intended to be imported



    into Holland and clearance there, with an onward Intrastat movement to the UK, can skew Dutch trade statistics.

  • Is it true that the marking of goods with the country of origin isn't just a requirement for Saudi Arabian shipment but also for other countries in that part of the world?

    Several freight forwarders and the Arab-British Chamber of Commerce have been reminding exporters to the Gulf Cooperation Council (GCC) Countries from EU Member States that it is necessary that the actual name of the Country of Origin is written on the goods. The phrase European Community (EC) should be supplemented by the name of the actual member state. This is said to apply to: Bahrain, Kuwait, Oman, Qatar and the UAE, as well as Saudi Arabia. 

  • We are exporting goods to South Korea and they have asked for a certificate of origin. We are not the manufacturer of the goods, they were made in USA. Firstly, can we say they are UK origin even though we have only re-packaged and re-labelled the goods? If not, can we issue an EC Certificate of Origin if the goods do not originate in the EU?

    To answer your first question first, you cannot change the origin of goods by repacking. For goods to change origin you must do more than handling, they must undergo a process that is substantial enough to change the product, components or raw materials imported and add value. Origin rules (note: we do not mean preference, nothing to do with filling in EUR1 Forms) are governed by the Department for International Trade but you can receive guidance from most Chambers of Commerce. The second question is answered simply with a yes. You can issue an EC Certificate of Origin (CofO) even if the goods are not EC Origin. To expand on this, the EU in the title of the form means this form, in the same style, is used in all the member states of the EU – it does not mean that goods mentioned on it must be of EU origin. To apply for a certificate of origin you must present the completed EU CofO with your shipping invoice and, because you are not the manufacturer and the origin is not UK, you must provide evidence of USA origin. This can either be a copy of the purchase order, the original supplier’s invoice or, in some cases Chambers will accept a statement from the manufacturer confirming origin. 

  • We have a problem in Malaysia with a shipment we sent under an ATA Carnet. The goods were for demonstration purposes only and should have returned to the UK after a month or so. The company in Malaysia like the goods and wants to place a very lucrative order but they also want to keep the demo item and our sales manager has agreed. I have been tasked with sorting out the Carnet. Any help will be appreciated.

    As you are aware, a Carnet (French for book of tickets) is for temporary movement of goods only. If anything goes wrong then it will cause some problems. Our advice is to notify the issuing Chamber of Commerce in the UK as soon as possible so they can guide you through the cancellation procedure. Cancellation of a Carnet has to be negotiated with customs in the overseas country where the goods are to remain. The temporary import entry that has been made against the carnet



    voucher needs to be amended to a permanent import with full payment of import duties and taxes. You will need assistance from your new Malaysian client to succeed. On payment of full duty/tax a "Duty receipt docket" should be issue by Malaysian Customs along with a stamped declaration of import. The re-export voucher of the carnet will not be irrelevant but ask Malaysian customs to duly stamped and endorse it as “cancelled/ duties paid”. The carnet should then be returned to the UK and submitted to the issuing chamber with a letter of explanation.



    You could be charged a fine or penalised in some way for this “mis-use”, eg the chamber may refuse to grant further carnet to the company or hold on to your guarantee for the full 33 months. 

  • A customer in Saudi has asked for our contract to be legalised, what does this mean?

    Legalised means the document in question must be stamped by the Embassy of the overseas country. This is standard practice for countries in the Arab League, like Saudi, but generally only is only requested for invoices and certificates of origin. You can get your contract legalised by sending it through the Chamber of Commerce for endorsement or by using a Consular Service. There will be a legalisation fee chargeable.

  • We have had a question from a customer in the USA. Our terms of sale are DDP Lakewood and the forwarder invoices us with USA duties. The question our customer has asked is - are we the Importer of Record? Are we?

    The “importer of record” is a legal status giving responsibilities under US law to the party named on the import declaration. Normally this party is resident in the USA and has placed power of attorney (POA) with a US customs broker to make declaration on their behalf.



    A company not resident in the USA can also give power of attorney to a US customs broker. If you have done this your company is the “importer of record” but the customs broker (forwarder) is the Principal Party in Interest – in other words they are the resident party who would receive any queries/ fines from US Customs.



    If you have never signed a power of attorney (POA) then one of the following might have happened:



    You are using a fast parcel operator, e.g. Fedex/UPS/DHL and because the goods are below their accepted threshold they are acting as the broker under their own rights to make the customs declarations or; Although you are paying the customs duty and tax into the USA when the declaration is submitted to US customs the broker is using another company’s POA and IRS (Inland Revenue Service reference) – perhaps your customer’s. This would make the customer the “importer of record” with charges billed back to the UK.



    I’m afraid you may have to contact the customs broker in the US to find out what they are doing. You have probably grasped the fact that the “importer of record” has the legal



    responsibility for the import consignment which would include compliance with the USA chemical regulations. Hope this gives you something to work on. 

  • Our customer in Brazil has asked us to remove the tariff code number from our invoice because it causes problems at import. Can you explain this; all our invoices show the tariff code.

     It is possible that the tariff number you quote on your invoice does not correspond to codes used in Brazil. Although Brazil use the same basis for their tariff (Harmonised System) and will have the same first 4-digits in their tariff they do not use exactly the same 8 digits as the EU. If Brazilian Customs cannot relate the code you quote to their regulations this could delay import and potentially lead to problems and increased duty charges being levied. It is not a legal requirement to have the tariff number on the invoice at export so remove it, but ensure you still notify the freight forwarder in writing of the correct code so they can complete the export declaration correctly. This situation may apply to other countries outside the EC. You can view most countries’ tariff codes and duty rates by accessing the EU Market Access Database web-site (http://mkaccdb.eu.int); it is not on the worldwide web as access is restricted to EU companies only. 

Share by: