Skip to main content

Freeports technical handbook

From:
HM Revenue & Customs
Published
1 June 2026
Updated:
1 June 2026 - See all updates

Operating a Freeport customs site

Information about customs site operator’s responsibilities, notification, record keeping requirements, joint and several liability.

Customs site operator’s responsibilities  

A Freeport customs site operator is responsible for the control of the movement of goods and the access of people in and out of the customs site. They must take reasonable steps to ensure that no unauthorised activity takes place in the customs site. They can be referred to in law as the ‘responsible authority’. 

The designation order sets out specific requirements and conditions imposed on the customs site operator, such as to: 

  • keep separate accounts in respect of its role as responsible authority for the free zone 
  • maintain a system for the keeping, preserving or updating of records in accordance with regulation 44 (record keeping) of the Special Procedures Regulations 

  • make any records for which the responsible authority is responsible relating to the free zone and the activities carried on in it:

    • available for inspection
    • accessible (including electronic)
    • available for copying for removal by a HMRC officer, at an office in the free zone or other agreed place
  • provide to any person authorised by the Treasury such information in connection with the free zone and the operation of it as that person may reasonably require 
  • ensure that the designated area is enclosed, and that entry and exit is permitted only at the points marked as access points on the map 
  • provide such accommodation and facilities including furniture, fittings and equipment as HMRC may reasonably require which must be properly maintained, heated, lighted, ventilated and kept clean
  • provide such area of land within the free zone as HMRC may reasonably require for the examination of goods and vehicles 
  • provide and maintain any appliances and other facilities which HMRC may reasonably require to enable an account to be taken of any goods or make any examination or search
  • comply with any requirement imposed by an HMRC officer under regulation 18E.9 (control of other activities in free zones by responsible authorities) of the Special Procedures Regulations 

  • take reasonable steps to ensure that:

    • no unauthorised activity is carried out in the free zone 
    • any goods specified in a notice made under regulation 18C.2 (free zone businesses — conditions) of the Special Procedures Regulations are not brought into the free zone 
    • no goods leave the free zone otherwise than in circumstances where their removal would be in accordance with provision made by or under the Taxation (Cross-border) Trade Act 2018 
    • persons carrying out any activities in the free zone comply with any customs obligation related to the free zone 

  • notify HMRC of:

    • any breach of a customs obligation by any person in relation to any goods that are or have been in the free zone, or have been declared for a free zone procedure under the Special Procedures Regulations, that it becomes aware of 
    • failure to comply with any condition or restriction to which its appointment as responsible authority is subject 
    • a change in circumstances that is relevant to its appointment as a responsible authority 
    • planned construction in the free zone 

A customs site operator is jointly and severally liable with a declarant for any import duty arising if the Customs Site Operator (CSO) fails to follow regulations or directions related to managing activities or goods at a customs site. According to HMRC policy, joint liability only applies when the operator has duties relevant to the legal requirements to but does not fulfil them, resulting in import duty charges.

The legal provisions that enable HMRC to apply joint and several liability in these circumstances are regulations 18E8, 9 and 10 of the The Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018.

Revocation of designation and change of circumstances 

HMRC may revoke a designation order where  the responsible authority has failed to comply with any terms of the order. A CSO can also apply to remove their designation or make amendments as appropriate. For example, if they want to close the customs site, or change operator.

Where a designation order is revoked, this will impact any authorised Freeport businesses operating within the customs site. If they are different from the CSO, HMRC will contact those businesses to inform them of this, and to advise them to make alternative arrangements for the goods currently stored on site. They can:

  • move their goods to another Freeport customs site 
  • move their goods to another customs procedure using another customs authorisation which they hold, or by applying for a suitable alternative customs authorisation (any application would need to be made at the earliest opportunity to allow time for it be processed) 
  • declare their goods to free circulation and pay all customs charges due 
  • export the goods 

The Freeport business can continue to declare goods to the Freeport customs special procedure while HMRC is in the process of revoking the designation order. Once HMRC confirms that the designation order has been revoked, the Freeport business will be notified by letter that they have 30 days from the effective date that the designation order was revoked to take action in line with their options. 

Alongside notification of the revoked designation order, HMRC will contact the business to advise that their Freeport Business Authorisation has been suspended. They will no longer be able to import goods to the Freeport site. They can continue to remove goods from the Freeport site in line with the recognised process for removal of goods from a Freeport Site as detailed within their Freeport Business Authorisation. 

If a Freeport business has any difficulty in making the necessary alternative arrangements within the 30 days given, they can contact their supervising office to discuss potential options such as an extension. The maximum extension that can normally be granted is an additional 30 days, giving a total of 60 days from the revocation of the designation order.  

The specific circumstances of any such revocation may mean that under confidentiality rules HMRC is not able to contact the Freeport business until the revocation of the CSO designation order, or information that the CSO is no longer operating, is in the public domain. However, if a Freeport business is aware that the CSO is no longer operating, or plans to stop operating, they can contact HMRC for information as to how this is likely to affect them and their activities in the customs site.