Why are HMRC Authorisations Important for Business?

The 2nd September is undoubtedly a date for your diary – from tomorrow there are 120 days until – 31 December 2020 – the end of the transitional period for the UK leaving the EU. That figure is important, because it’s the same number of days that it takes for HMRC to process applications for a Customs Comprehensive Guarantee (CCG), something which must be in place before accessing other duty suspension authorisations. This guarantee covers the potential duty liability that a business may have to suspend at the time of importation.

Why is it worth securing these approvals? Put simply, having access to an HMRC Authorisation can secure a more advantageous market position for your business. Given the imminent legislative changes for businesses which import and / or export, having these in place could help your business to avoid potential delays and additional charges as a result of legislative changes.

Holding one of these approvals demonstrates the high standards to which your business adheres in the global market. This is crucial for securing the confidence of your business partners, something that is even more important during these turbulent times.

What’s more, some HMRC Authorisations allow for the suspension of import duties, thus assisting businesses to better manage their cash flow. While certain special procedures can be applied for as a one-off, or for regular use, depending on individual business needs.

These duty suspension Authorisations include:

Authorised Consignee – An Authorised Consignee approval allows for businesses to undertake the customs process away from the border, at an Approved Premises.  This is an efficient way of moving non-Union goods across several customs territories into the UK, while avoiding border delays.

Customs Warehouse – A Customs Warehouse approval allows for businesses to import goods into a customs warehouse with the potential duties suspended.  The goods can be stored for an indefinite period of time within the Customs Warehouse.  Duties only become payable when the goods are released into free circulation.

Inward Processing – An Inward Processing approval allows for businesses to temporarily import goods for the purpose of processing, inclusive of repair, without the payment of duties/ VAT at the point of import.

Outward Processing – An Outward Processing approval allows for the temporary export of goods for processing or repair. Upon re-importation to the UK, you are then able to claim full or partial duty relief.

Authorised Use – Formally recognised as End Use, an Authorised Use approval allows businesses to import certain goods at a reduced or zero rate of duty, provided they are put to a prescribed end use within the approved time frame.

Underpinning all of the above, a business which holds AEO (Authorised Economic Operator) status is internationally recognised for their business compliance standards, in a fashion similar to a ‘kite mark’.

Should you wish to discuss any of the above HMRC Authorisations to ascertain their suitability for your business, please get in touch – we are more than happy to help.

HMRC has 120 days to approve a CCG – are you ready?

CCG HMRC Bethan Customs Consultancy

Under UCC (Union Customs Code), a CCG (Customs Comprehensive Guarantee) is required to apply for any new HMRC Authorisations allowing the entry of goods under a duty deferred customs procedure such as Customs Warehouse.

 

To get a CCG, you need to:

  • be established in the EU
  • have no serious or repeated infringements of customs or tax rules
  • have no record of serious criminal offences related to your business activities

From acceptance of your CCG application, HMRC has up to 120 days to approve the CCG.  As of 6th November 2018, 120 days for the actual approval to be granted would take us to 6th March 2019, not taking into account the time required to prepare the application and for HMRC to issue the initial acceptance.

Upon receipt of CCG, the new HMRC Application for the duty deferred regime would require to be submitted.  This can then take up to 60 days for HMRC to approve.  Taking the submission date as the 6th March 2019, 60 days for the actual authorisation approval to be granted would take us to 5th May 2019.

As UCC transitional arrangements are expected to expire on 29th April 2019, this would result in companies potentially having to duty pay at import due to authorisations not being in place by the end of the transitional deadline.

Are you ready?

For more information or for support with CCG applications, get in touch with us today.