Responsibilities under some Customs Procedure Codes

Along with the cash advantages, some of these codes make the importer legally responsible for controlling, reporting or re-exporting the goods within a set time period.  Poor use of CPCs, or a lack of understanding or control, can leave an importer open to Customs audits and potential penalties for non-compliance.  Most of the responsibilities are easy to undertake and control - the most important thing is to be aware of the responsibilities under the CPC you choose.  These are clearly detailed in Vol. 3 of the Tariff. Following are some examples of the responsibilities that may be incurred with a CPC.  1. You must be authorised by HM Customs before you use it. 2. Proof of export will be required when the goods arrive in the UK to allow the relief from import duty/VAT. 3. The goods must be exported within a set time period. 4. After re-exporting a duty reclaim must be made within a stated time. 5. Quarterly reports must be submitted to HM Customs. 6. Good audit records that permit tracking and tracing of imported items may be required. 7. The end-use of the goods is controlled and they cannot be diverted or scrapped without Customs approval. Where appropriate the format of the seven digit CPC’s link the import and the export of goods, so allowing Customs to see that you have fulfilled your responsibilities.  For example:  • Goods imported to be repaired under a simplified procedure will be entered to CPC 51-00-001. When these goods are re-exported from the EC the CPC used will be 31-51-000 - the middle pair linking the export CPC with the reason for import, i.e. 51.  The use of the correct export CPC cancelled the importer’s responsibilities.  If an incorrect CPC is used at export then the importer will have problems.

An understanding of the Customs Procedure Codes that relate to your particular activities is desirable; that is not to say that your current use of CPC’s is faulty or that your import clearing agent or forwarder is incompetent, but merely to emphasise that responsibility and control should rest ultimately in the importer’s or exporter’s hands.

Freight companies and Customs Compliance

Though I know this doesn't apply to all freight forwarders and clearing agents but why are so many still getting import declarations and export declarations to customs wrong - even when they have been given clear instructions. What can we do about it? HM Revenue & Customs and the Export Control Organisation expect exporters and importers to control their freight companies - you given them written instructions with key information: EORI (VAT Number), Customs Procedure Code (CPC), commodity code (tariff number), export licence number, customs authorisation numbers, eg for IPR, OPR, Warehousing, etc. The import or export customs declaration comes back from the freight forwarder (if you are lucky) and one or most of the details are wrong. Perhaps with the increase in AEO approved companies this problem will fade but it seems that training for both companies exporting from the UK and companies importing into the EU is essential. In the meantime customs compliance takes up a lot of time in our office - instructing, checking, double checking, chasing forms, reporting errors and chasing amendments. Any comments?