The Secrets of Trade Compliance: Avoiding Pitfalls in International Trade with the European Union

By Joe Goldsworthy, Customs Agent, Business West

What is customs compliance?

'Compliance' is a word which is used a lot in customs declarations and is sometimes tempting to ignore. There are a lot of different areas surrounding imports which can be difficult to understand, so, does it really make any difference if there are one or two errors on a declaration?

Claiming preference

Claiming preference has become a crucial facet of trading with the European Union. During the first year of trading post-Brexit, there was an easement in place which meant that preference could be claimed without a correct supplier’s declaration, and many UK businesses utilised this whilst acclimatising to a new set of trading rules. However, this easement came with the caveat that a correct supplier declaration would need to be issued retrospectively.

Worrying trend: incorrectly lodged supplier declarations

In a recent board discussion, the British Chambers of Commerce unearthed that there is a worrying trend of companies not taking retrospective action to get correct supplier declarations for import entries lodged in 2021. Non-compliance can lead to retrospective duties being paid on consignments, as well as penalties being issued, and repeated compliance issues can attract very steep penalties from HMRC.

Check over archive entries

It is therefore incredibly important to be compliant when conducting international trade, as the repercussions can be severe and costly. It is important to check over all archived entries, and we actively encourage companies to review their procedures, and perhaps audit some old import entries to make sure you have not fallen foul of the rules. 

Action: check out ChamberCustoms Health Checker tool

Contact Business West

If you are concerned that additional steps need to be taken or would like to discuss how to improve practices in-house, then get in touch with Business West. Our consultancy team can advise on compliance points and ensure there will be no nasty surprises down the line.