Simplified procedures
Simplified procedures include Customs Freight Simplified Procedures (CFSP) export simplified procedures and simplified procedures for removal to another customs procedure with economic impact. To use simplified procedures you will need to be authorised by HMRC for CFSP except for the following:
(a) exports
(b) use of the transfer procedure within customs warehousing arrangements, or
(c) a change to another customs procedure with economic impact where no supplementary declarations are required.
What is CFSP ?
As an alternative to using normal procedures (Form C88) for entering goods to and removing goods from a customs warehouse you can apply to use Customs Freight Simplified Procedures (CFSP). Under CFSP, formalities at the frontier are kept to a minimum with the bulk of fiscal and statistical data being supplied electronically to HMRC at a later date. Most imported third country goods are eligible for CFSP, however there are some exceptions.
Advantages of CFSP
The use of CFSP will enable you to:
- gain accelerated release of your goods from Customs at the (air)port or at designated premises inland, subject to anti-smuggling checks
- use CFSP in combination with normal entry and warehouse procedures to suit the needs of your business
- achieve cash flow benefits. For example Local Clearance allows you to store goods in Temporary Storage (TS) for up to 20 days before release to a Customs procedure or use. This means that whilst the goods are in TS, you can choose the release date (and therefore the tax point date) at the most convenient time for your business
- carry out National Transit movements under the LCP using a reduced level of guarantee
- submit frontier declarations (including National Transit) and all supplementary declarations by electronic means
- build a partnership with HMRC so that assurance visits are cost effective, selected on the basis of risk, and test the completeness of internal controls, and
- use third-party service providers to submit electronic declarations.
Authorisation
You must be authorised by HMRC to operate simplified procedures and hold a specific/general authority for any associated procedures such as Customs Warehousing, IPR, OPR, Free Zone, etc.
Traders authorised to use simplified procedures will be issued with an authorisation letter and documents that specify:
- the procedures that may be used
- the Articles under which they are authorised, and
- the conditions that apply to the operation of the procedures.
For details of authorisations to operate CFSP please contact RKG Consulting.