Surviving a Customs Audit:
Following recent developments in international trade, the Customs Audit is now taking on even more significance than before. It is your responsibility to ensure that your systems and processes are robust and thus minimise the risk of compliance failures.
Importers customs compliance is subject to audit-based control with customs declarations remaining open for three years. Any errors can lead to:
- Collection of underpaid customs duties
- Penalties
- Removal of duty relief(s)
- Delays in clearance of your goods
With the introduction of the Finance Act provisions on Senior Accounting Officers and the upcoming integration of the Authorised Economic Operator (AEO) system the customs audit takes on even more significance than it did before.
HMRC has recently been subjected to savage criticism over its control of customs matters and audits and as a result, we are likely to see a refocusing of their efforts in this area.
This paper will briefly explain what an HMRC audit officer will be looking for during an audit, the 'classic' risks that you may be exposed to and the ways in which ITS can help you to ensure that your audit passes swiftly and smoothly.
What will the Customs Auditor look for when they audit your business?
The Customs Audit Officer (CAO) will firstly want to walk through your systems and procedures to see how you manage your legal obligations. They will then look at what information is declared (focussing on the elements impacting your duty costs) and how you arrived at this. They will be looking at the four 'Building Blocks' of Customs Law:
- Classification,
- Origin,
- Valuation and;
- Duty Reliefs
Please read the full article..... |
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Our NEWS Section on the ITS website contains the latest developments in Customs Law and Practice to keep you up-to-date and to help you identify risks and implement cost savings.
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