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HMRC internal manual

Customs Authorisation and Approval

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HM Revenue & Customs
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Criteria and Conditions of Authorisation or Approval: Matrix of criteria required for Comprehensive Guarantees

As mandatory guarantees are being introduced by the Code, these criteria are new for all economic operators not currently holding a comprehensive guarantee authorisation for transit.

 

Generic Criteria, mapped against AEO standards UK Explanation of the criteria Required Y/N Legal Basis for criteria      
100 50 30        
Compliance History of Applicants            
The absence of any serious infringement or repeated infringements of customs legislation and taxation rules, including no record of serious criminal offences relating to the economic activity of the applicant by any of the following persons: Demonstrate a good compliance history in customs and other taxation areas including the absence of serious or repeated irregularities or criminal offences (including the legal entity and any company officials).  Y Y Y Y A.95(1) Code
The criterion referred to above shall be considered as fulfilled where the decision-taking customs authority considers any infringement to be of negligible importance, in relation to the number or size of the related operations, and not such as to create doubts concerning the good faith of the applicant. Customs may consider applications from companies with a past history of non-compliance where these are deemed to have a negligible impact on the procedure applied for. Y Y Y Y A.95(1) Code
Management of customs operations, including internal controls and record keeping            
The demonstration by the applicant of a high level of control of his or her operations and of the flow of goods, by means of a system of managing commercial and, where appropriate, transport records, which allows appropriate customs controls Effective internal controls to manage customs processes and regimes including the maintenance of appropriate documents and records. N Y Y Y A.95(2) Code
DA A.84              
  Maintain an accounting system which is consistent with the generally accepted accounting principles applied in the Member State where the accounts are held and which will allow audit-based customs control. Records kept for customs purposes shall be integrated in the applicant’s accounting system or, at least allow the cross check of information with the accounting system and in such a way enabling all relevant information to be made available. The accounting system shall maintain a historical record of data that provides an audit trail from the moment the data enters the file; Clear audit trails of the import, export, movement and transfer of goods within customs procedures.  Clearly documented audit trails between customs declarations, stock records and commercial documentation. N Y Y Y A.95(2) Code
DA A.84          
  Allow the customs authority physical and/or, where required by law or depending on the form in which the records are kept, electronic access to its customs and, where appropriate, commercial and/or transport records Access provided at an agreed place of business to the commercial and customs records necessary to verify the use of the procedure.      
Where necessary, remote electronic access is to be provided to commercial systems. N N N Y A.95(2) Code
DA A.84              
  Have a logistical system which identifies and distinguishes between Union and non-Union goods and, where appropriate, their location, except in the cases where the applicant applies for an AEOS; Clear audit trails to identify Union and non-Union goods and their locations (as appropriate) N N N Y A.95(2) Code
DA A.84              
  Have an administrative organisation which corresponds to the type and size of business and which is suitable for the management of the flow of goods, and have internal controls capable of preventing, detecting and correcting mistakes and of detecting illegal or irregular transactions; Appropriate internal management controls to verify the accuracy of customs declarations, ensure the correct operation of procedures and to identify and correct irregularities/ mistakes N Y Y Y A.95(2) Code
DA A.84              
  Where applicable, have satisfactory procedures in place for the handling of licences and authorisations connected to commercial policy measures or to trade in agricultural products; Procedures for administering licences, health certificates, preferential origin documentation and other official documentation relating to the import and/or export of  goods N N N Y A.95(2) Code
DA A. 84              
  Have satisfactory procedures in place for the archiving of the company’s records and information and for protection against the loss of information; Have appropriate retention procedures in place to manage the archiving of all documentation relating to the import, movement, transfer, transit and export of non-Union goods as required by customs legislation N N N Y A.95(2) Code
DA A.84              
  Ensure that relevant employees are made aware of the need to inform the customs authorities whenever compliance difficulties are discovered and establish suitable contacts to inform the customs authorities of such occurrences; Procedures in place to inform employees, agents and third parties of the requirements of the customs procedure and ensure mechanisms are in place for any irregularities/ mistakes to be notified to the customs authorities N N Y Y A.95(2) Code
DA A.84              
  Have appropriate information technology security measures in place to protect the applicant’s computer system from unauthorised intrusion and to secure the applicant’s documentation; Adequate IT security measures to protect systems and data, e.g., firewall, antivirus programme, password protection N N N Y A.95(2) Code
DA A.84              
  Where applicable, have procedures in place for the handling of import and/or export licences connected to prohibitions and restrictions, including measures to distinguish these goods from other goods and to ensure compliance with these prohibitions and restrictions. Procedures in place to manage licences relating to prohibitions and restrictions and adequate management controls to ensure health and safety and compliance in this area. N N N N  
  Financial Solvency of applicants            
  Financial solvency, which shall be deemed to be proven where the applicant has good financial standing, which enables him or her to fulfil his or her commitments, with due regard to the characteristics of the type of business activity concerned; Consistently good financial standing sufficient to meet its financial commitments, over the last three years. N Y Y Y A.95(2) Code
DA A.84              
  The applicant is not subject to bankruptcy proceedings; Any insolvency or bankruptcy proceedings been served on the company in the last 3 years N Y Y Y A.95(2) Code
DA A.84              
  During the last three years preceding the submission of the application the applicant has fulfilled his financial obligations regarding payments of customs duties and all other duties, taxes or charges which are collected on or in connection  with the import or export of goods; and Have a good payment history with the department, if the applicant is in debt to the department at the time of the application they will not qualify guarantee reductions. N Y Y Y A.95(2) Code
DA A.84              
  The applicant can demonstrate, based on the records and information available for the last three years preceding the submission of the application sufficient financial standing to meet his obligations and fulfil his commitments with due regard to the characteristics of the type and volume of the business activity, including having no negative net assets, except if they can be covered; Demonstrate on-going liquidity with sufficient assets to cover their financial comments.  Able to demonstrate that any negative net assets can be covered. N Y Y Y A.95(2) Code
DA A.84              
  Practical experience and competency in customs operations            
  With regard to the authorisation referred to in point (a) of Article 38(2), practical standards of competence or professional qualifications directly related to the activity carried out; Demonstrate a good understanding of customs procedures and operational requirements Y Y Y Y A.95(1) Code
  For the practical standards of competence: Have practical experience in the import, export, movement, transfer or transit of goods Y Y Y Y A.95(1) Code
  A minimum of three years practical experience in customs matters has been ascertained; or For businesses with less than 3 years trading history:          

·        Understand the obligations of operating the customs regime and demonstrate how the terms and conditions will be adhered to

·        Demonstrate a good understanding of the obligations involved in importing, exporting, using transit (as appropriate) Y Y Y Y A.95(1) Code
  Security and Safety of the supply chain criteria do not apply to this type of application        

 

 

 

 

Bespoke Requirements applicable to Comprehensive Guarantees            
Bespoke Requirements UK Explanation of the criteria Required Y/N Legal Basis for criteria      
Calculation of the reference amount for potential debts The reference amount acts as the guarantee limit, specifying the maximum amount of customs duty (and other charges) which may be relieved or suspended in a given period Y Y Y Y A.90(1) Code

IA A.155

IA A.158              
  Calculation of the reference amount for actual debts The reference amount acts as the guarantee limit, specifying the maximum amount of customs duty (and other charges) which may be covered by the methods of payment within a given period (i.e. deferred) Y N Y N A.90(1) Code

IA A.155

IA A.158              
  Agreement on the form of guarantee to be used MS has the right to refuse to accept specific types of guarantee where they are unsuitable for the operation or procedure or where they do not provide sufficient security to protect the revenue Y Y Y Y A.92 Code

A.93 Code

DA A. 83              
  Agreement on the Guarantor Guarantors must be approved by the MS.  MS may refuse to approve a guarantor where they do not provide sufficient assurance to protect the revenue Y Y Y Y A.92 Code
A.94 Code              
  Monitoring potential debts reference amounts Requirement for the holder of the comprehensive guarantee to monitor amounts lodged against the potential debt element of the guarantee Y Y Y Y IA A.156