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An independent Customs regime: your views on intermediaries
As part of its research into possible changes to frontier procedures, government has canvassed trade’s views to establish the level of satisfaction with the current situation. Inevitably this included what importers thought of the Customs intermediary sector. Certain bodies have been lobbying for significant changes, arguing that many traders want to submit their own declarations directly to HM Revenue & Customs (HMRC). BIFA reasoned that fewer importers than stated would want to adopt this business model. The outcome of HMRC’s review indicates that, at least amongst the SME sector, the majority seem to wish to continue using a Customs agent at the frontier. However, amongst larger traders there does appear to be an appetite to use current simplified procedures to a greater extent, and perhaps go further. However, BIFA strongly believes that government has failed to fully understand the importance of inventory systems at the frontier to control cargo flows and ensure that only ‘cleared and released’ freight is released. The two processes of ‘Customs’ and ‘inventory’ are inextricably linked and need to be considered in tandem. Whilst the research generally supports the role and function of the Customs intermediary, in certain cases there is scope for improvement and also the potential for as yet undefined regulation, even if on a voluntary basis, to differentiate the intermediaries’ service levels. Responses to the Call for Evidence (CfE) emphasised that intermediaries play a vital role An HMRC review indicates that the SME sector largely wants to continue using a Customs agent at the frontier. However, amongst larger traders there does appear to be an appetite to use current simplified procedures to a greater extent
in the Customs process for many traders. Respondents reported using a Customs intermediary for a wide range of services, including making their Customs declarations for both imports and exports, arranging the transportation of goods, operating warehouses, and giving advice on Customs. The intermediaries research sought views on three main themes: • Ease and cost of access, • Quality, • The future of the sector. Broadly, stakeholders felt that there is sufficient capacity in the sector. Stakeholders reported that the cost of using an intermediary was proportionate to the services they provide. Most stakeholders said that they had generally received a satisfactory service from their intermediary, but there were some accounts of poor-quality services being provided.
Intermediaries suggested that some of the quality and cost issues may be attributable to recent changes and uncertainty over rules; perceived poor HMRC systems, guidance and support; and a lack of knowledge in the sector. Looking to the future of the sector, some stakeholders felt that automation would provide the greatest scope for innovation, but that there were currently some barriers to innovation. Ease and cost of access The majority of respondents reported that they currently face no significant issues accessing intermediary services. It was widely recognised that capacity in the sector has been improving since ‘EU Exit’, and although a few stakeholders thought that the sector would struggle to take on more work, most agreed there is sufficient capacity for GB-EU trade. Most intermediaries said they offered their services to all types of business, although some
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September 2022
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