DEP approval requirements
Provides information on the requirements that will apply to the applicant and premises seeking approval.
A business can seek DEP approval by completing the C&E 42 form. To be granted a DEP approval the business will need to meet several requirements focusing on the approval holder, declarations lodged, the premises, customs facilities, and export control, which are outlined in the sections below. Some of these requirements will be met by the business itself and apply to all the premises the DEP operator has approved for DEP, however many of the requirements will need to be met at each approved premises individually.
A business seeking approval for DEP must meet the standard custom authorisation criteria by demonstrating:
- a good compliance record with HMRC
- an understanding of customs
- a good financial standing
- the ability to carry out customs activity using the appropriate controls and record keeping
The business’s compliance record will be based on the last 3 years before they apply, and they must not have committed any serious infringement or repeated infringements of the customs rules. If the business has been operating for less than 3 years, HMRC will look at the information available, including any previous businesses you’ve been involved in.
A DEP operator must make the Notification of Export to HMRC for all goods presented at their DEP approved premises. This will require them to have access to export movement software, which has the ability to submit an arrival message (EAL) to HMRC. DEP approved businesses can use either the Make and Manage an Export Declaration service or commercial software, such as the DEP packages provided by the Community System Providers.
Suitability of the movement software will be agreed between HMRC and the DEP operator at the time the DEP approval is granted, or if the agreed movement software is required to be changed or altered by the DEP operator.
The DEP operator must own or have the legal right of access to operate from the premises approved. This may take the form of them owning or renting the location, or having a commercial agreement with the person who owns or rents the premises, such as where the DEP operator is a customs agent operating from within their commercial partner’s premises.
Designated DEP Area
The DEP approved location should be defined according to the floor plans held for the DEP approval. This will ensure HMRC knows what physical area is covered by the DEP approval within the approved Premises and that it doesn’t overlap with either another DEP approved area, or another conflicting Customs approved area, such as CSE or External Temporary Storage Facility (ETSF), where an overlap is not permitted.
Authorised Excise Warehouses are permitted to overlap with a DEP approved premises as the two can be used in tandem to discharge goods from the Excise Warehouse via export.
Authorised Consignee and Authorised Consignor are permitted to overlap with a DEP approved Premises.
A single premises, however, can host multiple customs approvals with a DEP approval, even ones that cannot physically overlap providing the approved areas are clearly demarcated, such as physically separated by walls or visually separated by floor markings or barriers.
Security of Premises
A DEP approved premises must be within a secured perimeter, such as a wall or security fences, and all entrances to and from the site must be securable, such as lockable doors or suitable gates.
Suitable security for the premises in the form of CCTV or security personnel must be maintained by the DEP operator.
Suitability of the premises’ security will be agreed between HMRC and the DEP operator at the time any DEP approval is granted or if an amendment to the DEP approved premises requires premises security to be reviewed.
Access to Premises
Once a DEP premises is approved by HMRC, it effectively becomes a customs controlled location and all access to and from the approved DEP premises must be supervised at all times by the DEP operator. HMRC will expect the DEP operator to demonstrate sufficient access security to the approved premises, however this may be met by a business’s existing security arrangements, such as staff ID badges, electronic passes or security checkpoints.
Safety of Premises
The DEP approved premises must be suitably safe for HMRC or Border Force officers to attend. Generally, this requirement will be met by the DEP operator providing HMRC with their health and safety documentation for the premises, however HMRC will make a decision on the safety of the premises at the time of the approval, or if any changes to the DEP premises requires the safety of the premises to be reviewed.
Access to the goods being exported
Once goods are presented for export at the DEP approved location the DEP operator must ensure the goods cannot be tampered with by any unauthorised party either to add or remove items from the goods being exported.
Any alteration to the goods being exported must be declared to HMRC in the form of an amendment to the DEP declaration by the party that lodged the declaration with HMRC.
DEP operators must be especially vigilant against unauthorised parties tampering with the goods being exported, such as concealing unauthorised items within their consignment to avoid border control.
Electronic Inventory System
All goods within a DEP approved location must be recorded on an electronic inventory. The electronic inventory must record all goods or exiting the DEP approved location, as well as their current presentation status including if they held or cleared for export.
DEP approved businesses can use either the Make and Manage an Export Declaration service on gov.uk or commercial software, such as the DEP packages provided by the Community System Providers.
Suitability of the electronic inventory system will be agreed between HMRC and the DEP operator at the time the DEP approval is granted, or if the agreed inventory system is required to be changed or altered by the DEP operator.
Customs facilities
Any DEP approved location must provide HMRC or Border Force officers the following facilities, either to attend the site to physically examine goods presented to HMRC at the location or for any other attendance HMRC or Border Force may need to make at the approved premises.
Parking space
Each DEP approved premises must provide a parking space for HMRC or Border Force attendance. The parking space is not required to be permanently allocated but suitable parking must be available to HMRC or Border Force Officers when they attend the premises. Suitability of the parking provided will be agreed between HMRC and the DEP operator at the time any DEP approval is granted or if an amendment to the DEP approved premises requires parking to be reviewed.
Toilets
Toilet facilities must be available to Border Force or HMRC Officers if they attend the DEP approved premises.
Examination area
A suitable examination area must be provided for goods being presented to HMRC in the event a HMRC or Border Force Officer needs to inspect them. The type of area will depend on the goods being presented but the area should be safe and suitable for the goods being examined.
Suitability of the examination area will be agreed between HMRC and the DEP operator at the time the DEP approval is granted, or if the agreed examination area is required to be moved or altered by the DEP operator.
Examination equipment
Suitable examination equipment must be provided by the DEP operator to Border Force or HMRC Officers to conduct a physical examination on the goods being presented to HMRC. Suitable equipment will depend on the nature of the goods but may include weighing scales or the provision of a forklift and driver to move the goods being presented.
Provision of examination equipment will be agreed between HMRC and the DEP operator at the time the DEP approval is granted or any changes to the DEP approval or type of goods being presented requires the available examination equipment to be reviewed by HMRC.
Customs control
As a DEP premises is approved for presentation, this means any goods presented there are subject to Customs Control as a Customs check may be initiated by HMRC or Border Force when the goods are presented. Each DEP approved premises must have a set of documented procedures of how Customs Control will be managed following presentation to HMRC.
Immediate clearance to export
The DEP operator must have documented procedures in place to confirm that clearance has been granted to the goods being presented before they are permitted to leave the DEP premises for onward travel to an approved border location to exit the UK.
The documented procedures must be able to demonstrate how HMRC’s decision on granting clearance or requiring a Customs check is communicated to the employees responsible for holding or loading the goods to transport. This is especially important if the employees responsible for lodging the declaration differs to the employees responsible for handling the goods.
Documentary checks (Route 1)
The DEP operator must have documented procedures in place that covers HMRC initiating a documentary check when the goods are presented. The documented procedures must be able to demonstrate how HMRC’s instruction that a documentary check is required is communicated to the employees responsible for holding or loading the goods to transport.
The documented procedures should demonstrate how the goods will be prevented from exiting the DEP premises until HMRC have issued clearance for the goods. This is especially important if the employees responsible for lodging the declaration differs to the employees responsible for handling the goods.
The documented procedures must also cover how they will confirm HMRC or Border Force have completed their check and granted clearance to the goods presented. The documented procedures should also cover how this is communicated to the employees responsible for loading or removing the goods from the DEP premises.
Physical examination (Route 2)
The DEP operator must have documented procedures that covers HMRC initiating a physical examination for the goods presented to HMRC. The documented procedures must be able to demonstrate how HMRC’s instruction that a physical examination is required is communicated to the employees responsible for holding or loading the goods to transport.
The documented procedures should demonstrate how the goods will be prevented from exiting the DEP premises until HMRC have issued clearance for the goods. This is especially important if the employees responsible for lodging the declaration differs to the employees responsible for handling the goods.
The documented procedures must cover which employee is the responsible person when HMRC or Border Force attend the site and how a physical examination will be handled, such as granting access to the goods or examination equipment.
The documented procedures must also cover which employees is responsible for confirming HMRC or Border Force have completed their check and granted clearance to the goods presented, as this may occur after HMRC or Border Force have attended the premises. The documented procedure should also demonstrate how this is communicated to the employees responsible for loading or removing the goods from the DEP premises.
Transport from the DEP premises to the point of exit from the UK
Once goods are presented at a DEP approved premises they remain under Customs Control until they exit the UK. The DEP operator will be responsible for goods presented until they are re-presented at an approved border location, if applicable, or they exit the UK.
The DEP operator is permitted to delegate transport arrangements to a third-party, however they will be required to supervise the movement to the border and inform HMRC of any discrepancies or issues, such as the goods failing to exit the UK.
Generally, HMRC expects goods presented at a DEP premises to proceed directly to the border without stopping at any other location. However, stops for logistical requirements, such as to raise a Transit movement are usually permitted providing the DEP operator can still maintain adequate supervision of the movement prior to exit from the UK.
HMRC expects goods in most cases to reach the approved border location of exit within 24 hours of gaining clearance. HMRC may agree a longer period with the DEP operator if due to logistical requirements or entry to Transit, the journey to the UK point of exit is expected to take longer than 24 hours.
The DEP operator must be able to demonstrate to HMRC adequate documented procedures to supervise a DEP movement from the point of presentation at the DEP premises until the point of re-presentation or exit at an approved border location.
Cancellation or withdrawal of goods presented at a DEP
Once goods are presented at a DEP approved premises they remain under Customs Control until they exit the UK. Once presented at their approved premises by the DEP operator, if the export is subsequently cancelled or prevented for some reason whilst the goods are still at the DEP premises or on route to an approved border location, they must be formally withdrawn from the export procedure to remove them from Customs Control and HMRC supervision.
The DEP operator must have documented procedures in place to demonstrate how they will withdraw the goods from the common export procedure once the goods are presented to HMRC at their approved premises in the event the export of goods is cancelled before they leave the DEP premises.