Customs Authorisations

Effective customs planning is essential in today’s international trading environment. Several facilitation schemes - known as customs authorisations - are available to help businesses manage import duties and VAT more efficiently and cost-effectively.

To find out how your business could take advantage of customs authorisations to carry out compliant customs operations while recovering optimal VAT, get in touch. Call us on 0161 826 8926 or complete our online enquiry form.

What are customs authorisations?

Customs authorisations are permissions granted by customs authorities that allow businesses to adapt or simplify certain customs procedures in line with how they operate. These authorisations include options such as customs warehousing, inward processing and Authorised Economic Operator status. They can benefit businesses involved in the import, export or re-export of goods by providing flexibility in meeting regulatory requirements while potentially reducing costs and saving time.

• Customs warehousing (bonded warehousing): this relieves import duty and import VAT on items that are imported into the UK, stored and then either re-exported or used in the UK.
• Avoiding double duty payments: one of the main benefits of customs authorisations is that post-Brexit, businesses importing from outside of the EU then distributing by re-exporting to the EU don’t pay double duty as no duty is payable in the UK.
• Inward processing: this relieves duty and import VAT on goods imported for processing and re-export. This is particularly useful for manufacturers or service companies who import, process, repair or modify goods that belong to their customers. This is even if the imported goods aren’t subject to any duty (e.g. they are 0% duty goods) but only import VAT, as import VAT isn’t recoverable if you don’t own the goods. Inward processing however, relieves this cost.
• Outward processing: this relieves duty and import VAT on goods in free circulation in the UK if they are exported, processed (be that for manufacture or repair) and re-imported to the UK. If outward processing isn’t used, duty and VAT will be due, as such goods lose their UK customs status when exported.
• Temporary admission: goods imported temporarily are generally subject to duty and VAT relief, although there are 29 different types of temporary admission reliefs. 
• Authorised use: duty and VAT incurred on goods that are used in certain sectors such as the aerospace, ship-work, seafood and cycling industries can be relieved if the goods are put to a specified use.
• Specific reliefs: there are a range of reliefs for certain sectors like universities and charities.

At The Customs People, our specialist consultants have many years of experience assisting all manner of businesses and organisations in understanding what reliefs are available, accurately applying for necessary authorisations and helping them to act in compliance with HMRC regulations. Find out how we could help your business use customs authorisations to optimise your VAT costs and operations today.