What happens if an importer fails to submit Bill of Discharge
Information on what happens if an importer fails to submit Bill of Discharge.
The authorisation notification states the Bill of Discharge (BoD) requirement as part of the terms and conditions of the authorisation. This must provide all the information required by law for a BoD as set out in the authorisation notification and be in a format that is readable and understandable to HMRC.
An approval holder is required to submit a BoD on a monthly or quarterly basis as stated in the approval letter.
It is important to note that a BoD is still required even if no goods were imported/discharged in the reporting period.
If the approval holder does not submit BoD, they are breaching the conditions of their approval. As such this may mean that:
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HMRC issue a C18[SM1] Demand Note to the approval holder to pay the suspended duty and VAT on the inward processing goods not accounted for in the BoD
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A penalty may be charged
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The authorisation to use IP may be suspended or revoked
Customs debt is incurred on the first day following the date set as the deadline for submitting the BoD.
Link to legislation