SEARCH

London +44 (0)20 3954 6690
Beaconsfield +44 (0)1494 840 334
Client Log-in     INFORMATION HUB |  Follow us:
Quick contact

    We're Hiring!

    How to mitigate scrutiny on your imports from China

    As the build-up to the Christmas trading season begins, shelves will start filling with merchandise imported from China.

    However, there is an increasing possibility that shipping containers from China will be stopped and subjected to greater scrutiny by the UK’s Border Force.

    While it may appear that the selection of containers for examination is random, the Border Force uses intelligence and experience to target specific shipments.

    They regularly discover shipments where the goods have been declared using incorrect tariff codes, and/or customs values which are too low, which is tantamount to evasion of customs duty. The highest success rates are on shipments from China.

    The process of examination goes beyond a simple look into a shipping container to see if the goods match the descriptions declared.

    When containers are selected, they are moved to an inland location, where, along with other containers from other ports, they are delayed pending the completion of enquiries.

    These enquiries will seek to confirm that the value declared is the price actually paid or payable for the goods, and that the goods have been correctly classified to determine the right rate of customs duty. They will also check that the declared importer is a bona fide VAT-registered business, and that delivery instructions are compatible with the business.

    Needless to say, these checks take time and disrupt the flow of goods, but can anything be done to reduce the risk of legally compliant shipments being held up in such a way?

    The answer is ‘yes’ and it’s called Authorised Economic Operator (AEO) status.

     

    ‘Trusted Trader’ status

    A UK importer who has been successful in gaining AEO authorisation has demonstrated to HMRC that they have procedures in place to underpin the accuracy of their customs declarations.

    This includes procedures for customs classification, valuation, preferential origin qualification (where applicable), as well as procedures to ensure that clearance agents are appropriately authorised and instructed.

    In return, HMRC and the UK Border Force allow an AEO a degree of ‘trusted trader’ status, which reduces the risk of shipments being selected for examination for anything other than intelligence-based anti-smuggling checks.

    AEO approval is not given lightly, however, and requires detailed documentation of key procedures, which are checked by HMRC during the application process. The applicant also needs to demonstrate solvency, professional competency and previous compliance with HMRC.

    If you import goods and materials from China and/or would like a consultation to help decide whether AEO approval would benefit your business, please get in touch.

     

    Awards & Affiliations

    Client Testimonials

    • I always get quick, clear and definitive responses from the Harwood Hutton tax team – commercial answers to commercial issues.

      Robin Berry – Morgan Management

    • Right from the outset Harwood Hutton gave us direction and great advice – and that advice has evolved over the years as we’ve grown. We’re both medium-sized companies providing a bespoke service – one furniture, one accountancy – and the relationship works.

      Andy McCarron, McCarron and Co

    • I’m deeply impressed with Harwood Hutton’s extensive knowledge of tax arrangements for residential and commercial property landlords.

      Qadeer Ahmed, MD, ABA Finance

    • They really took their time to understand what was important to us and our business and the expertise we required. Whoever we speak to at HH, we get the same fantastic response and technical input. It’s a real partnership.

      Edward Finch, group MD, MRIB insurance brokers

    • I have worked with the directors at Harwood Hutton on a number of mutual client matters over many years. The reassurance of their clear, commercial and focussed advice is one of the main reasons I regard this as one of my most valuable professional relationships.

      Frank Wessely, Partner, Quantuma LLP

    • Harwood Hutton never seem to rest on their laurels. They are always seeking out new avenues and ways to improve their offering. A very forward-thinking company with staff who are always well briefed and who approach each task with drive.

      Karl Austen, MD, Surefoot Communications

    • We have engaged Harwood Hutton in several areas of structuring, including VAT issues, decoupling an SPV from a group structure and HMRC clearance for a transaction. The team have exceeded all expectations by being proactive, measured and very thorough.

      Adam Fawsitt, Director, FHT Limited

    • We moved to Harwood Hutton as they delivered a succinct and professional proposal. If anything, we have been more impressed post-move. They are a fantastic company to work with. They do truly differentiate. They have the skills and capabilities of a mega firm but with a personal service.

      Edward Finch, group MD, MRIB insurance brokers
    Sign up to our Newsletter

    Sign up to our Newsletter

    newletter image

    Newsletter sign up

    Join our mailing list to receive important news and insights for business leaders and private individuals