Customs clearance

Customs clearance is not just about obtaining a UK EORI number. There is EU legislation (the Union Customs Code), largely mirrored by the UK’s Taxation (Cross-border Trade) Act which governs customs clearance matters. Their requirements can halt supplies unless they are adhered to.

For example, whether for UK import or export, a customs declarant must be established in the UK. This law also deals with types of agent that can act as a representative to achieve such obligations.

In some cases an indirect representative cannot be appointed to clear goods in its name and so an establishment may be need to be set up. We can advise on all aspects of what is required in this regard, in the UK or abroad through our Kreston Global network. This includes advising on the pros and cons of setting up in each country from a direct and indirect tax perspective, handling the set up of a company and ongoing compliance. We can also advise on alternative structures involving representatives in countries such as the Netherlands.

We can review your processes to identify issues associated with clearing customs. A lack of instructions provided to customs clearance agents by the importer is common and can result in misunderstandings and incorrect import declarations submitted to the customs authorities.

Another area which can result in issues in clearing customs or the duty payment obligations is the contractual terms between a supplier and customer, and the agreed Incoterms. Understanding which party to the contract is responsible for which element of the import/export activity and payment of any customs duties is important and something we can advise on.