What is BS PAS 41201:2026?

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It is a new formal ‘voluntary’ customs declaration related standard for customs intermediaries, developed by His Majesty’s Revenue & Customs (HMRC) in partnership with the British Standards Institution (BSI) and industry. The standard: ‘BS PAS 41201:2026 Customs Intermediaries: Preparation and Submission of Customs Declarations — Specification’, sets out what is to be regarded as best practice for customs intermediaries (customs agents, customs brokers, freight forwarders etc.) when preparing and submitting customs declarations. It covers key areas such as the proper preparation of a custom declaration, due diligence, training, systems, processes, data, and transparency of operations.

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In the months following publication HMRC intends to continue its work with appropriate third parties to develop a related certification scheme. To be provided by bodies independent of HMRC, and accredited by the United Kingdom Accreditation Service (UKAS).

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Although adoption of the standard and certification to it, when available, is to be ‘voluntary’, it is likely that the standard, and the meeting of it, will become ‘expected’ (by business, HMRC etc.). HMRC is well aware that the market will likely drive its adoption, as with attainment of Authorised Economic Operator (AEO) status before. Any intermediary may apply to be assessed and certified (endorsed by UKAS) against the Standard by an accredited certification body, once the scheme is available.  

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Why The New Standard?

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HMRC’s rationale for the development of BS PAS 41201:2026 stemmed from a perceived requirement for the establishment of best practice, as a part of its response to concerns about ensuring that a sufficient number of customs agents be available for businesses to use post Brexit.

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HMRC wanted articulated what a good quality customs intermediary (customs agent, broker, forwarder etc.) should be doing and what companies using such intermediaries should expect. For example, under the standard, customs intermediaries are expected to have an internal audit process and quality management system (QMS) in place.

Under the standard customs intermediaries will be required to carry out full document check audits on a representative 5% of the customs declarations made in a year. The audits will need to be regular and systematic, and the audit process adopted will itself be subject to HMRC audit. There are significant resource and cost implications here for companies.

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Raising Compliance Expectations

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This new HMRC standard for customs intermediation includes specific guidance on the extent of due diligence required in respect of the on-boarding of clients and the making of the customs declaration itself, extending to a list of the types of checks HMRC expect to be made to meet their reasonableness test. Companies are expected to adopt a risk management approach to their compliance assurance.

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Customs intermediaries operating under the standard will be obliged to be clear and transparent about such things as their service offering and standards, the technology used to complete and submit customs declarations, and fees / pricing, among other things (see below). There is also an expectation within the standard that customs intermediaries properly train their personnel using some form of continuous professional development (CPD) approach, and maintain records of this accordingly.

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The main requirements of the standard, in more detail are are:

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• Auditing - requires intermediaries to conduct annual audits of their systems and processes and quarterly quality control audits on submitted declarations at a minimum sample size of 5% (up to a maximum of 25000 entries). ‍

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• Principal appointment and instruction - requires intermediaries to obtain and maintain appointment instructions if they are empowered to act on behalf of the principal. ‍

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• Communication – requires clear communication with the customer and that intermediaries provide evidence of declaration submission along with its status. ‍

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• ‍Due Diligence - requires:

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1. an intermediary to conduct checks on the establishment and business activities of their principals.
2. verification by the intermediary of anybody unknown purporting to represent their principal(s).
3. an intermediary to conduct checks and verify information in documents accompanying a customs declaration.

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• Crises Response - an intermediary is to have in place crisis response measures and resilience planning to maintain operations relevant to their business in the event of disruption. ‍

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• Training - required for employees submitting customs declarations or conducting related due diligence. To include:

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1. Induction.
2. Continuous Professional Development (CPD)
3. Training record to be part of a person’s annual performance review.
4. Formal updating of relevant personnel on rule / regulatory changes, and lessons learned from audits and principals’ feedback.
5. Provision of a help and support reference directory for the use of relevant personnel.
6. Specific training required on the World Customs Organization (WCO) Harmonized Commodity Description and Coding System (HS).‍

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• Systems, process and data:

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1. An intermediary is to hold and work to clearly written and regularly periodically reviewed standard operating procedures (SOP).
2. Intermediaries are required to keep records of staff qualifications, experience and training.
3. Complaints and how they are resolved are to be recorded and retained for 6 years.
4. Relevant personnel to be able to demonstrate knowledge of customs declarations requirements and data elements.
5. Requirement for written agreement between principal and intermediary on how the principal wishes to treat import VAT such as postponed VAT accounting.
6. Relevant information on principals to be recorded and kept up to date.

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• ‍Transparency - an intermediary is to be transparent in their product offerings and services specific to customs declarations (including fees and pricing). Also, if Artificial Intelligence (AI) is used to assist with declaration completion, this should be disclosed to the principal.

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HMRC want to change peoples’ thinking around customs entry processing, currently believed to be perceived by too many as being merely an administrative data-entry clerk type of function. That being so, as above HMRC does acknowledge that there is a role for the use of AI in the preparation and auditing of customs declarations, when based upon clear, periodically audited processes, and used with care, under appropriate human supervision.

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Eventually, further down the line, as more customs intermediaries become certified to BS PAS 41201:2026 HMRC will be monitoring which customs intermediaries these are and which are not (especially in respect of valuations on entries). It will also be taking more of an interest in which importing / exporting companies elect to use uncertified customs intermediaries, factoring such matters in to their risk profiling of traders for checks, audits and so on and so forth.

Therefore although a customs standard for customs intermediaries the effects of BS PAS 41201:2026 certification will gradually permeate along the supply-chain, increasing pressure for all business partners to raise their customs compliance game.

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Take-aways For Your Business

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• Whilst aimed at customs intermediaries making customs declarations on behalf of others, the BS PAS 41201:2026 will begin to shape compliance assurance expectations more widely.  

• So whether a customs intermediary or not, it is worth reviewing the requirements of the new standard to assess how your existing company’s customs administration, and/or indeed your contracted customs intermediary(s) measures up in relevant areas.

• Understanding this new customs standard should enable you to better hold your customs intermediary(s) to account. As certified intermediaries must be able to prove that they meet its requirements.

• While the certification scheme is being developed, customs intermediaries can still review and work towards meeting the Standard. Intermediaries that meet the requirements may state that they are compliant with the Standard.

• By seeking to operate to ‘best practice’ as specified in the Standard you can demonstrate to HMRC the seriousness with which you’re taking customs administration, and customs declarations in particular.

• Eventually, once formal certification to the Standard is possible, HMRC will expect you to be, or to be using, a BS PAS 41201:2026 certified customs intermediary.

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How BKR Can Support

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At BKR we have a wealth of experience and expertise with which we can help you to realise any monies you may be owed by HMRC by, among other things:

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• Using our special software ‘tool’ to audit and analyse your customs declaration data to enable any errors to be spotted and remedial action to be taken. Such as the amendment of incorrect declarations, or the reclaiming of any overpaid duty (or the payment of any underpaid). We help you to spot discrepancies before HMRC does.

• Reviewing the customs commodity codes you are using and the customs valuation calculations you are making, to provide you with an objective assessment as to their correctness, enabling you to reclaim any overpaid duty. We can also provide support to you in applying to HMRC for a formal Advance Tariff and/or Valuation Ruling to reduce your customs risk.

• Advising on the customs origin rules requirements (preference and non-preference) for your goods, which may lead to duty savings and justify a duty reclaim. We can also provide support to you in securing a formal HMRC Advance Origin Ruling to add commercial certainty.

• Drafting your application for any HMRC special procedures you may wish to be considered for, to improve your business operations, for example customs warehousing, inward processing, authorised use etc.

• Providing tailored technical customs administration training for your business.