Customs Duty Audits

Customs Duty Audits

Businesses are usually selected for audit at random. However, certain factors may increase the likelihood of selection, such as:

• A higher risk score due to historic compliance records.
• Specific intelligence related to the industry, company, or peer group.

Customs audits may involve documentation checks only and can sometimes be conducted over the phone. However, customs representatives often visit business premises, and in some cases, audits or visits may be unannounced.

What to Expect

At the start of the audit, the auditors will outline their requirements. They may wish to:

• Inspect goods and documentation related to customs and international trade.
• Review information on goods or services within the international supply chain.
• Check compliance with any customs-related approval, authorisation, registration, or licence held or applied for.
• Conduct visits on behalf of another government department where a licence relates to the import or export of goods.

Auditors may request various documents, including the company’s charter, powers of attorney, accounts, returns, bank records, import/export paperwork, contracts, goods specifications, import/export licences, certificates, and other business documents.

Best Practice

To demonstrate compliance, businesses should maintain:

• Robust customs processes and procedures, including for customs special procedures.
• Accurate customs records, such as invoices, import/export declarations, transport documentation, and bills of discharge.
• Clear instructions for intermediaries.
• Evidence of customs controls and checks.
• Adequate customs knowledge and technical understanding.

The Risks

Non-compliance with customs regulations can have serious financial and legal consequences, including penalties for:

• Breaches of customs laws.
• Failure to comply with customs-related approvals, authorisations, registrations, or licences.
• Mis-declarations or incorrect returns.
• Inadequate record-keeping.
• Unauthorised removal of goods from customs supervision.

For expert support and guidance through customs audits, contact Louis Good at Deeks VAT Consultancy

Louis Good ATT

Senior VAT Specialist

Our Customs Duty Specialist

Louis several years’ experience in helping mainly international business ensure they are correctly valuing and classifying goods imported into the UK. 
 
Louis has achieved this by working alongside clients and HMRC to achieve the most favourable outcomes.

Visit Louis’s Profile