Customs Compliance: Explained
Professional advisory for customs classification, rules of origin, valuation and general customs compliance
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Professional advisory for customs classification, rules of origin, valuation and general customs compliance
EXPLAINED
What is a
Customs Compliance?
Customs compliance is an industry term used to define a business’s responsibility to correctly manage the process of importing and exporting goods to / from the UK.
Whilst there is not a defined list of conditions that have to be met for a business to be deemed “compliant”, it is generally assumed to cover the success of the practises a business adopts to ensure the correct duty and tax is paid on imported goods, process control, risk management and adherence to commercial trade policies.
Ensuring goods are correctly declared to Customs is a legal obligation for any importer or exporter
Import duty rates are associated with the commodity code allocated to the goods, depending on where it has originated. Import duty is usually payable as a percentage on the customs value of the goods.
As classification, origin and valuation are intrinsically linked, honest errors can have a significant impact and create a compliance risk for frequent importers and exporters.
Declaring goods to Customs is an essential part of every global supply chain. However, it is inherent with financial, reputational and legal risk.
Ensuring the business has appropriate processes and controls to mitigate customs related risks is crucial to remaining both compliant and commercially competitive.
Accurately declaring goods to Customs and paying the correct duty and tax on cross-border movements is ultimately the legal responsibility of anyone who imports and exports goods.
As such, customs compliance should be viewed in the same regard as finance, where careful consideration is given to staff knowledge, skills and legal decision making.
The expectation is not perfection. However, it is expected that a business can demonstrate control over their customs activity and that they have implemented appropriate processes to enable this.
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"We truly appreciate the support BKR provided us on a preferential origin project. Their support allowed for a significant step forward in unlocking further duty savings for Brooks Sports."
Tineke Guerrero Meeuws
Director of Trade Compliance
There are several key considerations for any business self evaluating their customs compliance capabilities. Some of the key areas our advisors discuss with our clients are:
Three of our most prolific duty saving and compliance assessment services. Each tailored to specific business requirements, taking into consideration volume of trade, business size, value of goods and type of goods.
An ideal approach for SMEs without the luxury of a dedicated trade & compliance function
An exploratory approach to trade compliance, with the objective of providing critical feedback in regards to duty saving opportunities and potential compliance threats.
What this includes:
Leveraging Customs expertise to eliminate, reduce or reclaim import duties
Through a combination of data analysis and expert knowledge, this explorative exercise endeavours to identify strategic opportunities to reduce, delay or eliminate import duties from your supply chain. Whether that be in future shipments, or historic shipments where a duty reclaim may still be eligible.
What this includes:
A complete 360 analysis of your customs operation and the associated risks and opportunities
A comprehensive compliance audit focused on quality of data, efficiency of processes, staff knowledge and compliance risk. The results of the expert analysis is documented and summarised within a step-by-step corrective action plan which is presented in-person to business stakeholders.
What this includes:
All our projects are bespoke and consist of a tailormade scope based on a client's specific requirements. As such, the blueprints below are indicative and have been provided for comparison only.
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Still not sure or looking for support with something not listed? Schedule a FREE consultation with one of our advisors to discuss your business's specific requirements.
"With BKR’s support, we are able to utilise customs special procedures within our UK manufacturing projects. Their input has allowed us to grow our UK production and maximise profitability whilst doing so."
Sarathe Natarajan
Import Manager
Empowering our clients to focus on what makes them succesful.
BKR Consultants Ltd provides professional and practical guidance on all matters associated with customs clearance, customs compliance and supply chain efficiency.
Our primary goal is to work with our clients to achieve an optimal budget for import duty, all the while mitigating compliance risks for the business.
We achieve this by delivering strategic customs guidance and leveraging expert customs resources, to fulfil a capability many businesses find challenging to develop internally.
Our team possesses expertise across diverse areas, including health and regulatory affairs from APHA, extensive experience in large business unit management within HMRC, customs brokerage, and leadership roles within large multinational businesses and member associations.
Let us know a little bit about how we can help and one of our customs experts will be in touch to arrange a consultation at the next mutually convenient date.
Contact us using the details below, or simply fill out the contact form:
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