Policy & Compliance
obtaining the required sensitive information, HMRC offered a temporary easement and postponed the requirement until 30September 2023. On 13 April 2023, HMRC introduced a new requirement for declarants to retain evidence to support that the consignment does comply with the conditions of using valuation method 1 when declaring the selected valuation method. From HMRC’s perspective, the declarant is the party who is physically submitting the actual Customs declaration. Consequently, all BIFA Members submitting declarations on behalf of their customers are considered to be the declarant. According to the HMRC guidance, if the consignment value is below £20,000 and there is no indication that the consignment fails to meet the requirements for using valuation method 1, the declarant can safely presume that valuation method 1 applies. Maintaining proof Except where the importer is self- representing, for consignments surpassing the £20,000 value and declared under valuation method 1, declarants will be required to maintain proof of verifying that the consignment meets the conditions for utilising valuation method 1. Such evidence may include: • Instruction from the importer to declare the goods using valuation method 1, • Email from the importer confirming its consignment complies with the terms of using valuation method 1, • Appropriately worded form with a tick box completed to indicate valuation method 1 is to be used. Overall, the challenges faced by the trade have made it more difficult to import goods into the UK. While some businesses have been able to adapt to the new requirements, others still struggle to comply, which has had a negative impact on their operations and profitability. For more information regarding the above
Substantiating the use of valuation method 1 HMRC has introduced a new requirement for declarants to retain evidence proving a consignment does comply with the conditions of using valuation method 1
S ince the UK left the European Union on 1 January 2021, importers and Customs agents have faced a number of additional challenges in order to comply with new Customs requirements. These challenges have made it more dif fi cult and time-consuming for businesses to import goods from the EU into the UK. One of the biggest challenges import Customs agents have faced is the need to complete Customs declarations using the new Customs Declaration Service (CDS) for all goods entering the UK. This new system was introduced following the UK’s departure from the EU, and it has added a significant amount of work and bureaucracy to the import process. In addition to more complex Customs declarations, importers also need to ensure that their goods comply with a range of new regulations and standards, and the party submitting the declaration should hold the relevant evidence to support the information entered on the Customs declaration. To comply with these new requirements, many importers must implement additional processes to ensure that they can continue to import goods from the EU. This has added extra work and
makes the importation more time- consuming and can lead to delivery delays. One of the newly implemented requirements that importers and intermediaries encountered following the UK’s departure from the EU is obtaining an origin statement/declaration from the exporter in order to be eligible to claim the preferential tariff rate for the EU origin goods. Seller and buyer details The next requirement, which shook up the industry, is the necessity to declare in CDS the details of the seller and buyer involved in the importation process. Following the negative industry reaction, caused by the challenges and difficulties in There are six valuation methods in use in the UK: Method 1 – the transaction value; Method 2 – transaction value of identical goods; Method 3 – transaction value of similar goods; Method 4 – deductive method; Method 5 – computed method; Method 6 – fall-back method.
“ Overall, the challenges faced by the trade have made it more difficult to import goods into the UK
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July 2023 | 19
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