Policy & Compliance
When goods are in transit, only the Transit MRN should be entered into the GMR – the haulier will have to proceed to the relevant Inland Border Facility (IBF) or authorised premises in order to close the transit movement. After this process is completed, the Customs declaration to clear the goods can be submitted via CDS to HMRC and clearance obtained. Clearance ‘on wheels’ linking a Transit MRN and an ‘arrived’ CDS MRN is clearly a breach of UK regulations. It is important that all BIFA Members review their procedures against the documented Common Transit procedures to ensure that they are compliant. On behalf of its Members, BIFA spoke to HMRC on certain points, and received the following additional information: • Traders can include references for multiple declaration types within one vehicle (eg groupage loads) as long as there are not transit and import declaration references for the same consignment of goods; • One vehicle can have multiple transit declarations within a single GMR; • One vehicle can hold only one GMR; • Transit movements can only be discharged at the relevant IBF or authorised premises. Consequences All Members should be aware of and follow these procedures for transit movements. In communication to BIFA, HMRC has clearly stated that if something were to go wrong, such as a driver not reporting to an IBF to discharge the transit movement, “A transit irregularity might be issued despite an earlier Free Circulation declaration being made and it would be for the trader to confirm that the goods on the two declarations were the same. This could result in two amounts of duty being at stake, not to mention civil penalties for either transit failures, improper free circulation declarations or both”. There is fuller information to be found at https://bifa.org/2024/01/04/transit -guidance-january-2024/
Members have raised concerns regarding the procedures followed by some Customs agents when dealing with shipments moved under Common Transit Make sure you comply with the Common Transit rules
A t a recent Member Meeting, compliant Members highlighted that they were aware that in many cases, presumably either to gain time and thus a competitive advantage or because of a lack of knowledge, both the Transit Movement Reference Number (MRN) and also the Customs Declaration MRN for the same consignment were declared on the Goods Movement Reference. This guidance specifically relates to movements including a pre- lodged Customs declaration. As a result, the imported goods were simultaneously in two Customs regimes at the same time. HMRC issued guidance in May 2022 related to this subject. It said: “We have become aware that some goods vehicle service users are entering either import declaration instead of, or as well as, the transit Movement Reference Number. Neither of these are in line with UK regulations: • By not entering the transit Movement Reference Number
the Office of Transit cannot be carried out in line with the Common Transit Convention and UK regulations and may cause delays upon reaching the Office of Destination. • By entering the “import declaration” for those goods under the transit movement, this puts the goods into two Customs regimes at the point of entry to the UK. This is against UK regulations. The full text of the guidance can be viewed at: www.gov.uk/government/publicati ons/community-common-transit- and-tir-newsletters/newsletter-9- may-2022# According to the above instructions, HMRC is aware of the problem and is instructing traders not to enter both the Transit MRN and Customs Declaration MRN covering the same consignment on the same GMR reference. Anybody doing so is being non-compliant. BIFA has to remind Members that they cannot legally enter both declaration references simultaneously on the GMR.
“ BIFA has to remind Members that they cannot legally enter both declaration references simult - aneously on the GMR
16 | February 2024
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