60 Second Guide to Customs Compliance & Risk Management
What Every Finance Executive Needs to Know About Customs Compliance
Customs risk can be understood in the context of likelihood of something going wrong and the impact of any errors or mistakes.
Likelihood
Customs compliance is subject to audit based control and so the fact that goods have been cleared through customs is no indication that you have met your compliance obligations. Customs transactions are open for three years.
Statistics from the National Audit Office show that only 2-3% of imports are inspected, that 6% of importers are subject to audits each years and that 39% of these visits result in identification of compliance errors.
HM Revenue & Customs has in the past sought to ensure most material importers and higher risk importers are subject to audit once every three years. However, resource constraints have put pressure on these targets. The gradual roll-out of Authorised Economic Operator (AEO) status may help them get audits back on track, with focus on non-authorised traders perceived to be of higher risk.
