Customs Freight Simplified Procedure UK - Brexit Information

Customs Freight Simplified Procedure (CFSP) is an electronic customs declaration for speeding up the importation of goods. When CFSP goods arrive at a frontier ... Home/Goods-Customs&Trade/CustomsProcedures/CustomsFreightSimplifiedProcedureUK Overview CustomsFreightSimplifiedProcedure(CFSP)isanelectroniccustomsdeclarationforspeedinguptheimportationofgoods.WhenCFSPgoodsarriveatafrontierfromoutsidetheEU,aninitialdeclarationknownasaSimplifiedFrontierDeclarationissubmittedbythetradertoallowthereleaseofthegoods. Subsequently,detailsoftheconsignmentaresentviaaSupplementaryDeclarationwhichissenttoHMRCwithinasettime. ItispossibletouseCFSPalongsideotherfavourablecustomprocedures. InordertooperateCFSP,thebusinessortradermustbeauthorisedbyHMRC. Inordertoqualifyforuse,thebusinessortheagentmusthaveaccesstotheelectronicrecordingsystem,haveauniquetradingreferencenumber,haveagoodrecordofcomplianceandbeabletouseitsdutydefermentfacility HMRCwillinspectbooks,recordsandprocedurestoverifythatitisappropriatefortheprocedures. UnderCFSP,adutydefermentaccountisoperatedthroughHMRC.Tradersandrepresentativesmustpaybythedutydefermentaccount. HMRCtreatgoodsimportedunderCFSPinthesamewayasgoodsenteredunderthenormalprocedures.OnarrivalintheEU,HMRCmaycheckthegoodsforanysmuggling,animalandplanthealthstandardsandothercontrols. EligibleGoods ManyproductsimportedintotheUKfromotherEUcountriesareeligibletousetheCustomFreightSimplifiedProcedure.Certaingoodsarenoteligible.TheseincludegoodsgovernedbytheCommonAgriculturalPolicy,licensedgoods,goodscontrolledundercertainsimplifiedprocedurese.g.customwarehousing,inwardprocessing,outwardprocessingreliefandgoodsmovingthroughtheUKundercommunitytransit. MostimportedgoodsareeligibleforCFSP.Someareexcluded.Somecustomsprocedurescodesareexcludedbecauseofoperationalandpragmaticissues. Theyincludehydrocarbonoils ATAcarnetgoods goodsremovedfromacustomswarehousethatareexported personaleffects 2016Updates ThecustomsfreightsimplifieddeclarationprocedurewasupdatedfollowingtheEU’srevisedcustomsregulationsmadein2013whichbecameeffectivein2016. Therearenowtwotypesofauthorisation.Thesimplifieddeclarationprocedureallowsreleaseofgoodsatthefrontiertomostcustomprocedures. ThelocalclearanceprocedureisrenamedEntryinthedeclarants’records(EIDR)procedure.Thedeclarationismadeinthetrader’srecordsdirectlyratherthantoHMRCandtheyaretherebyreleasedtoacustomsprocedure. CFSPDeclarationProcedure TherearetwowaysthatagentscanusetheCFSPprocedure,thedeclarationprocedureandlocalcustomsclearance(NowEIDR;Seebelow).Oncegoodsreachthefrontier,theymaybereleasedintofreecirculationorintoanothercustomsprocess,inwardprocessingrelief,processingundercustomscontrol,inwardoroutwardprocessingrelief,afreezoneorcustomswarehousing. TheCFSPiscarriedoutintwostages. Stage1–traderprovidesminimumdetailsoftheconsignmenttothefrontierusingasimplifiedfrontierdeclaration(SFD).Thiscreatesabasisforsubmittingafurthermoredetailedsupplementarydeclaration. Stage2–tradersubmitsthesupplementarydeclarationofimportbeforetheendofthefourthworkingdayofthemonthfollowingthedateofacceptance. Controlledgoodsaresubjecttoadditionalprocedures. SimplifiedDeclaration Asimplifieddeclarationprocedurecanbeusedtoreleasegoodsto freecirculation customswarehousingatthefrontier declarationsfromCWtoOSR certainotherprocedures. Insomecases,thedeclarationmaybemadewithoutdocumentationwhichisnotavailableatthetimeofsubmission.WhengoodsarereleasedfromcustomswarehousetoOSforanSDIreturnmustbemadecontainingtherequiredOSRinformation Toentergoodstofreecirculationandcertainotherprocesses,asimplifiedfrontierdeclarationembodyingminimuminformationisrequiredatthefrontier.Adeclarationuniqueconsignmentreference(DUCR)isrequired.Itmustbeenteredonthesimplifiedfrontierdeclarationandthesupplementarydeclaration.TheacceptanceoftheSFDestablishesthetaxpointandbasedateforsubmissionoftheSD. ItismadebyelectronicmessagesenttoCHIEFwiththefiscalandstatisticalinformation.ThesupplementarydeclarationmustbesenttoandacceptedbyCHIEFbytheendofthefourthdayofthemonthfollowingacceptanceoftheSFD. Simplifiedfrontierdeclaration(post2016Revisions) Withthecustomsfreightsimplifiedprocedure,thesimplifiedfrontierdeclarationissubmittedtoCHIEFelectronically.AhardcopymayberequiredatportsandairportsthatarenotelectronicallylinkedtoCHIEF.Underthesimplifiedfrontierdeclaration,theacceptancedateandtimeisthebasedateandforsomecustomsproceduresestablishesthetaxpoint Thesimplifiedfrontierdeclarationisacceptedandprocessedsingdirecttraderinput(DTI)orotherinfrastructure.Theextentofdatarequireddependsonthecommercialprocedureandthesimplifiedprocedureused. CHIEFperformsvalidationchecksonfrontierdeclarations.ImmediateclearanceisusuallygiventhroughCHIEF,subjecttoanti-smugglingchecksandcertainotherproductspecificcontrols Controlledgoodsmayonlybereleasedfromthefrontierusingproceduresforthosegoods.Furtherboxesontheformmayberequiredtobecompletedonthesimplifiedfrontierdeclarationformwithcertainexceptions.EIDRmaynotbeusedtoreleasecontrolledgoodsatthefrontier.TheymaybelaterreleasedfromwarehousingandfreezonesusingEIDR. Excisegoodsaresubjecttospecialcontrols CFSPLocalClearanceProcedure(NowEIDR) Underthisprocedure,theCommunityTransitorNationalTransitproceduresmaybeusedtomovethegoodsfromthefrontiertoadesignatedinlandpremises.ItisnecessarytohaveanadditionalauthorisationfortransitproceduresaswellasauthorisationforCFSP. Thetradermustbeauthorisedandmustholdacomprehensiveguaranteeorguaranteewaiverandanauthorisedconsignee.Thetransitprocedureisdischargedonarrivalatinlandpremises,afterwhichgoodsmaystayintemporarystorageforupto20days. TraderscanuseLSPtoreleasegoodstocustomsprocedureinfivestages: Stageone:    TraderprovidesminimumdetailsoftheconsignmenttoCHIEFatthefrontier. Stagetwo:      TraderusesCommunityorNationalTransitproceduretomovethegoodstodesignatedinlandpremises. Stagethree:   Traderuseslocalclearancetoentergoodstoacustomsprocedure. Stagefour:    Traderssubmitasupplementaldeclarationbeforetheendofthefourthworkingdayofthefollowingmonth. Stagefive:      Unlessgoodsarere-enteredtraderssubmitthefinalsupplementarydeclarationbeforetheendofthefourthdayoftheworkingmonth. EIDR From1May2016thisisthenewnameforthelocalclearanceprocedureEIDRspecialprocedurestransfers.ThereisaslightchangeintheprocessesforwhichEIDRisavailable EIDRmaybeusedtoreleasegoodstoacustomsprocedureatanauthorisedlocationoratthefrontier.Goodscanbemovedunderthecommunitytransitsystemprovidedthetraderhaspermissiontousethatsystem. Thenationaltransitprocedureisnolongeravailable ADUCR numberisassignedtoeachconsignmentandenteredinthetheentryintherecordsandinthesupplementaldeclaration UnderEIDRgoodsarereleasedfromamanifest/inventoryusingformC21andmaybeputintoafrontiertemporarystoragepremises.TheymayberemovedfromthefrontierunderNCTSortransferintoTSrecordstoaninlandauthorisedTSlocation.TheyaredeclaredtocustomsprocedureusingEIDRpriortotheendoftheTSperiodwhichisusually90days. EIDRcanbeusedtomovegoodsbetweenspecialprocedures subjecttospecificconditions.Thegoodsmustpreviouslyhavebeenenteredintothefirstspecialprocedureandthendischargedandmovedtoasubsequentspecialprocedure. Provided theholdersofbothspecialproceduresarethesamepersons thefirstspecialprocedurewasenteredbyafulldeclarationorhadasupplementarydeclarationthefirstspecialprocedureisdischargedbyplacingthegoodsunderthesecondprocedure. SupplementalDeclaration Toallowimportgoodsatthefrontier,itisnecessarytosubmitaclearSFDviacustomshandlingandimportandexportfreightsystem(CHIEF).TheSupplementalDeclarationmustbesubmittedbytheprescribeddeadline.ThisisusuallythefourthworkingdayofthemonthfollowingthedateofacceptanceoftheSFD.ThisistreatedasequivalenttotheSAD. TheeffectofCFSPisthatdutyonimportsbecomesduelaterintheprocess.TheSFDandSDcanbesubmittedbytheimporterdirectlyorbyanagent.SDcanbesubmittedelectronicallyandtheamountofdutyandtaxesarenotifiedbyaCustomsresponsemessage. SupplementalDeclaration(post2016Revisions) AsupplementarydeclarationisrequiredtoCHIEF.Itmayincludemorethanonesimplifiedfrontierdeclaration.CHIEFrespondswithamessagegivingthecalculatedrevenue. Aggregationpermitsthecombinationofsimplifieddeclarationscontainingthesameclassificationleveldataintoasinglecustomsdeclarationoveraperiod.Authoritymustbeobtainedtouseaggregation.Asinglerateofexchangemaybepermittedinrespectofaten-dayperiod.Thereare conditionsforapproval. SupplementarydeclarationsaresubmittedtoCHIEF.ThesupplementarydeclarationcontainsthenormalsingleadministrativedocumentinformationtogetherwithdetailsofthetimeanddateoftheassociatedsimplifiedfrontierdeclarationorEIDR. MakingtheSD ThesupplementarydeclarationmustbesentandacceptedbyCHIEFbytheendofthefourthworkingdayofthemonthfollowingthedateofthesimplifiedfrontierdeclarationorEIDR. Batchescanbesubmittedcontainingdeclarationsfordifferentperiods.Therearelimitationsonthesizeofdatasubmitted. Excisegoodsaresubjecttoadifferentaccountingperiod.Therearetwoaccountingperiodsonthe15thand29thofeachmonth;exciseonthe29thofthemonthandcustomsdutyandVATonthe15th.Thedaterunsfromthebasedateestablishedasabove Theclearancetimeforsupplementarydeclarationsisapproximately10minutesifthedeclarationisnotamendedorcancelledTherecordisfinalised.Adjustmentsmayberequiredintheeventofanerror. Ifatraderisnotabletosubmitthedeclarationsbytheduedate,itmayadviseHMRCwhomayacceptincompleteparticularsandpayments.The accountisdebitedwithanadjustmentforanyrefunddue.Afailuretopayontimemayincuracivilpenaltypenalty AfinalsupplementarydeclarationisrequiredbythefourthdayofthemonthfollowingshowingthenumberofSDIandSDWdueorsubmittedintheperiod.Itmaybeusedtodeclarelatedeclarationsfrompreviousperiods. Forexcisegoodsasupplementaryreturnisrequiredbythefourthworkingdayfollowingtheendofeachexciseperiod. AccountforTax Tradersmustpaydutyusingadutydefermentaccount.TheprocedureusesanelectronicdeclarationthroughCHIEF. Customschargesareaccountedforandpaymentismadethroughadeferredaccount,securedbyacomprehensiveguaranteeTheaccountmaybethatofthetraderoranagent.ThedefermentaccountmustbesufficienttocoverthedutyandVATliabilityforatleastamonth.Securityisrequired. ThismustcoverdutyandVATunlessthetraderisapprovedforthesimplifiedimportVATaccounting(SIVA)and/ortheexcisepaymentsecuritysystem. Tradersmayrepresentthemselvesormayberepresentedbyathirdpartyactingintheirnameandontheirbehalf.Theauthorisedimporterisresponsibleforthecustomsdebt. Atradermaybeindirectlyauthorisedinwhichcasetheimporterandauthorisedthird-partyarejointlyandseverallyliabletoHMRCforacustomsdebt.Anagent(andindirectrepresentativemayhaveitsownaccountoracustomer’sdutydefermentaccount Eligibility TobeeligibleforCustomsfreightsimplifiedproceduresatradermust haveagoodrecordofcomplianceinVATreturnscustomsrequirements dutydeferment intrastatsubmissions maintainaregularpatternofthirdcountrydeclarationsagainsteconomicoperatorregistrationidentificationnumber holdauthorisationsforanyotherrequisitecustomsproceduresdesiredtobeusedwithCFSP notifychangestocustoms maintaintherequisitedocumentedprocedures describingcontrolsauditTrailrecoveryretrievalofrecords calculatedrevenuedueandreportitinaccordancewiththeintegratedtariff reporterrorspromptly holdrequisiterecordsanddeclarations maintainsystemsinsupportofrecords keeplinkingrecordsanddeclarationssuchastoallowsufficientcontrols keeparchivesforfouryearsplusandmakethemavailable allowforcustomsaudit complywithallrequisiteEUandUKcustomslegislation AuthorisationConditions Theauthorisationwillincludecriteriaandconditionsdependingonthenatureofthearrangement.InthecaseofEIDRthismayinclude suitablefacilitiesforunloadingexaminingsamplingclearinggoods provisionofsafeworkingconditionsforcustomsstaffattendingpremises provisionofallnecessaryequipmentforweighingmeasuringetcetera havetherequisiteguarantees beapprovedasanauthorisedconsignee movegoodsunderNCTfromfrontiertoauthorisedlocationwithoutdelay nominatecompetentpersontoexamineallvehiclesarriving reconcilerecordswithreceiptsandinvestigatedifferencespromptly notifycustomsofanydiscrepancies FurtherConditions ThereareseparateandfurthercontrolsinrespectofentitiespermittedtoremovefromcustomswarehousingusingEIDRincluding authorisedcustomswarehousekeeperofacertaintype havethemechanismstouseEIDRattheauthorisedpresmies notifieswarehousekeeperofremovalsincertaincases promptlyundertakeallreportingofsimplifieddeclarationsandsupplementarydeclarations Therearecriteriaforatraderusingathird-partyserviceproviderasanindirectrepresentative Therearefurtherspecificrequirementsinrespectofreleasefromsimplifieddeclarationprocedureto specifiedwarehousingincluding releasetocustomswarehousing releasetoafreezone entryintotemporarystoragepremisesafterEIDR removalfromcustomswarehousing releaseintofreecirculation releaseofcontrolledgoodsandexcisegoods/ SupportingDocuments Inthecaseofentryinthedeclarant’srecords(EIDR)supportingdocumentsarenotusuallyrequiredatthefrontier.TheymustbemadeavailabletocustomsifrequireduponthereleaseofthegoodsattheauthorisedlocationThecertificatesandlicensesmustbeenteredinthereturns Detailsincludingserialnumbersofsupportingdocuments documentaryproofsoforiginandpreference certificatesofconformity phytosanitaryserts releasecertificates mustberetainedandendorsedwiththeUCR((uniqueconsignmentnumber). 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