Customs Clearance and Customs Procedures

Customs clearance is the process of moving through customs so that import duties and taxes can be calculated prior to entering the country. Duties and taxes are either settled at the border or deferred via a customs procedure.  Customs declarations are also required to facilitate the export of cargo out of the country.  Customs clearance results in a document being issued by the customs authorities stating that duties and taxes have been reconciled and that the goods are therefore able to move in or out of the country. The customs document is known as either a customs declaration or a customs entry. 

The customs declarations are official customs procedure documents that accurately list exactly what is being imported or exported and provide safety and security information during customs clearance, as well as the applicable duties and taxes.

UK import declarations are made using the Customs Declaration Service (CDS). The CDS system allows traders to use a UK trader portal to apply for and manage customs decisions electronically. After November 30, 2023, the Customs Declaration Service will be the UK’s single customs platform for both imports and exports, with businesses declaring their goods through the service.

Businesses have to follow various customs procedures to get their goods imported through UK customs. Due to the complexities of customs declarations, many businesses engage the services of a customs clearance agent to clear their goods.

Clearance Steps

• Your company will need an Economic Operators Registration and Identification number (EORI number) to move in and out of the UK.
• Your goods may be subject to special rules, and you may need to get licences or certificates to move the goods through customs.
• Your goods must be correctly labelled and meet marketing standards prior to import or export.
• If you are importing plant or animal products, you must arrange a place where the goods can be inspected. The inspection needs to happen prior to the goods moving through the UK border.
• You will have to arrange a method to pay duty and VAT after submitting the customs declaration.

HM Revenue and Customs states that the UK Importer of Record is responsible for ensuring that the UK Customs Clearance Agent has been given clear and accurate information to complete customs procedures and customs declarations.

Customs Clearance Issues

• The customs declaration is missing information.
• Customs declaration with incorrect information.
• Incorrect product tariff classification.
• Incorrectly declared valuations.
• Products not meeting the rules of origin.
• Use of incorrect Incoterms 2020.

Consequences of customs clearance issues

By contravening customs regulations, your business could be subject to customs civil penalties, fines, and the removal of customs authorizations.