Importers encounter heightened HMRC scrutiny on customs declarations
Regardless of their origin, importers in the UK may face various issues when dealing with HMRC, which can impact their ability to import goods smoothly and efficiently.
We’ve noticed a growing surge in HMRC enquiries regarding customs declarations, particularly those filed by UK-based customs brokers on behalf of importers, with a focus on goods originating from China. These increased enquiries are potentially leading to additional import duties and VAT obligations, presenting a range of challenges for importers and customs brokers, for the following reasons:
- Under EU law, customs brokers have joint and several liability for ensuring the accuracy of declarations and the payment of import duties and associated VAT.
- HMRC’s refusal to disclose their method of calculation means they rely on the “fall back” method (also known as “method 6”) to value imported goods. The issue with this approach is that HMRC compares the declared value to what they refer to as “comparable goods,” yet they do not disclose which goods these are.
Consequently, clearing agents and customs brokers find themselves in a difficult position. They are assessed for duties and VAT on transactions from which they do not directly benefit. Ideally, these charges should be payable by the importer. However, HMRC’s refusal to accept available evidence contradicting their valuations complicates matters. Importers can typically recover any VAT charged to them, further adding to the complexity of this situation.
How can we help?
At Rogers & Norton, our specialist HMRC team have lodged a number of appeals and are actively pursuing reviews of assessments for our clients.
We understand the importance of engaging HMRC immediately to reduce the challenges and financial hardship that our clients could face. We offer extensive expertise in all matters relating to HMRC and UK Border Force disputes and we are dedicated to helping our clients regain access to their seized assets.
For more information please visit our HMRC and UK Border Force webpage. If you require legal assistance, please contact Peter Hastings, a specialist HMRC and UK Border Force solicitor at ph@rogers-norton.co.uk.