HMRC customs enforcement. Compliance matters.
The grace period has ended, from 7 April 2025 HMRC have been issuing civil penalties of up to £2,500 for failing to present Transit Movement Reference Numbers (MRN) when using GVMS (Goods Vehicle Movement Service) ports for RoRo movements. Ports include Dover, Eurotunnel, Liverpool, Holyhead full list here
Indications are that border controls are being tightened. The government seems to be taking a firmer approach to customs declarations, and they are increasing the number of compliance officers.
Traders need to follow the correct customs procedures.
Safety and Security declarations became mandatory for EU imports to Britain on 31 January 2025. (These were already in place for British exports to the EU and worldwide British imports).
A loophole for avoiding full customs declarations on short shipments has been closed. C21 Customs Clearance Requests with 9-series Additional Codes (91U and 96M) are now being rejected.
Further evidence of customs compliance enforcement is the new approach for detecting inconsistent or suspicious trading behaviour,
Companies House data is combined with information from the HMRC Compliance and Risk Solutions Team (CREST).
HMRCs new approach to customs compliance is both data driven and proactive.
To avoid operational challenges and potential penalties, businesses must pay attention to their customs declarations.
If you are looking for a reliable logistics partner to deliver your products on time and on budget, you can use our team of award-winning experts. At TPS Global Logistics we fulfil your customers’ expectations and deliver your brand promises.
Experience and track record matter in freight forwarding, using a company like TPS Global Logistics will de-risk the process.
Freight forwarding is as much about risk management as it is about the transportation of the item.
3PLs prioritise preventing delays and can actually give customers ‘time back’. The time and costs racked up by incorrect customs declarations or logistical road blocks can be considerable. Having experience of a particular product and knowing the customs landscape gives us a competitive advantage, if permit requirements or classification codes change there are ramifications for shipments and costs.
Having in-house customs expertise alongside operations, ensures logistics are aligned. Having one point of contact simplifies the process and streamlines efficiencies – the Account Manager understands the customers objectives, has familiarity with the product as well as customs expertise. We are a one-stop shop, both service and solutions focused, we give our time freely to support our customers.
When it comes to customs declarations, the most common mistakes are –
1. Incorrect Commodity Codes
A Commodity Code, also known as a Tariff Code or a Harmonised System Code, is essential for the shipping process. HS codes can be 6, 8, 10 or 12 digit numbers. The first 6 are a standard worldwide, after that it can vary between countries. This code helps to inform carriers, customs, and other relevant parties what your goods are.
You can check commodity codes here
2. Misunderstanding Rules of Origin
For customs purposes, the “country of origin” refers to the economic nationality of a product, which is where it was grown, manufactured, processed or assembled. This is not necessarily the country where the product was shipped from or purchased, but where the most substantial manufacturing or processing occurred. Due to trade agreements, preferential and non-preferential tariff quotas it’s a key factor in determining customs duties and taxes. More info here
3. Missing information on your Customs Declaration Form
Obvious, but nevertheless one that catches out countless companies. Incomplete paperwork, missing information such as invoice information, incoterms etc will be flagged in the automated system and cause delays or rejection.
4. Incorrect Goods descriptions and quantities
The wrong number of goods in the shipment, a vague or incorrect description of goods can mean delays. What are the goods; What are they made of; What are they used for?
Vague Description – Nuts
Clear Description – Hexagonal aluminium bicycle nuts
5. Wrong valuation
Incorrect customs value declarations can either inflate costs or result in penalties for underreporting. The most commonly used method of customs valuation is the invoice price of the goods – the price paid or payable. However, there can be lots of adjustment required to find a customs value.
Keeping accurate records and double-checking invoices before submission helps prevent errors and ensures transparency.
6. Not checking your paperwork
Missing information, inconsistencies between documents, incorrect spelling of company names, addresses and postcodes or typos can trigger red flags for customs officials, prompting them to hold your shipment for further scrutiny. Review all documents for accuracy and completeness before submitting.
The legal liability for customs compliance lies with your company, even if you have contracted out the submission to a third-party freight forwarder or customs broker. A customs declaration is a tax return, so your business is responsible to HMRC, this includes errors made in your name by your appointed freight forwarder/customs broker.
It is therefore really important to give this responsibility to a trusted and experienced 3PL/freight forwarder. At TPS Global Logistics we have over 20 years logistics experience and a team of customs trained account managers to help ship your goods successfully across borders.
Managing Director Matt Smith is an Export Champion appointed by the Department for Business and Trade for his knowledge and experience. Our King’s Award and 2 Queen’s Awards are for International Trade services. We’re well placed to help.