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HMRC internal manual

Customs Freight Simplified Procedures

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HM Revenue & Customs
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Final Supplementary Declarations (FSDs): FSD completeness checks

A central check is performed every month by the CNAT to ensure that an accurate and timely FSD has been received from each trader. Letters will be issued to traders where shortfalls in their FSD submissions have been discovered. This could be:

  • failure to submit a timely FSD as per authorisation requirements
  • failure to submit an accurate FSD as per authorisation requirements
  • submission of a ‘nil return’ FSD where SFD activity is evident or
  • submission of late declarations where the conditions of CFSP06150 have not been adhered to.

If a trader has submitted a late declaration but has provided a ‘reasonable’ explanation or has followed the correct procedures in CFSP06150, they will not receive a letter.

Post Assurance Action by CNAT

Traders that have experienced problems with the submission of their FSD for consecutive months should be subject to further action, depending on the individual circumstances involved.

If a serious problem such as software failure is in evidence, an extension to the deadline for the FSD submission may be granted and a date by which the situation will be resolved should be agreed. However, if it’s the trader that is responsible for the lack of submission and an extension is considered unreasonable, accurate information must be submitted by the following month or the trader’s CFSP authorisation may be suspended. In all cases, copies of any trader response will be forwarded to the CRM or LBS Tax specialist/Trader’s folder for CITEX.

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CNAT action

Following the expiry of the agreed date for completion of submissions, the CNAT will determine whether or not the trader has been compliant. If the trader is now compliant, the CNAT will confirm the outcome in writing and send a copy to the CRM or Risk Manager. If the trader is not compliant she/he will be referred to the CRM or LBS Tax specialist or RIS as appropriate for an immediate demand led visit.

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Action by assurance officers

The central monitoring of the FSD carried out by CNAT is not a comprehensive check on the trader’s transactions. The information the CNAT provide should be complemented by an assurance officers’ own findings. Assurance officers are required to perform completeness verification checks to ensure that all consignments have been fully accounted for. Officers should still undertake random completeness checks locally to establish that all goods declared on a SFD/ entry in records have been subsequently declared and the revenue been accounted for on a SDI/SDW/FSD. Also see CFSP07200.

The officer should select a random sample of initial declarations and note the consignment’s quantity, statistical value and DUCR. Reference may need to be made to the trader’s commercial records for some of these details. MSS searches should be conducted to identify all SDs bearing the initial declaration’s DUCR. Reconciliations should then be made to ensure that the full consignment quantity and value has been accounted for on the SDs. A note should be made of any shortfalls or discrepancies and these should be examined against the trader’s commercial records.

If there are a large number of discrepancies (or they occur on a regular basis), and the error rate does not decrease then the officer should consider taking further action as outlined in CFSP06150 and CFSP19150. A formal warning letter should be issued to the trader.

Note: IRs must not submit an individual FSD for each of their customers for each reporting period. Most CFSP traders will submit one FSD for their EORI for each reporting period. Traders opting to use branch references may submit one FSD per branch per reporting period. CNAT must be informed if traders wish to use the Branch reference option.

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Customs only FSDs

Traders operating the standard customs reporting period are required to submit an FSD by the fourth working day of each month (unless otherwise notified by Customs) stating the number of SDs due/submitted for the previous month’s reporting period. For example, to report on the number of SDs due for January’s tax point/base dates, the FSD must be submitted by the fourth working day of February. The acceptance date shown on the FSD is always the first day of the month being finalised.

For example, the December’s 2012 FSD was submitted on the third January 2013 but the acceptance date remains as 01.12.2012 irrespective of the fact that it was submitted in January 2013.

The Customs Procedure Code (CPC) for Customs only FSDs is 06 19 090

Please remember that post 1st May 2016 supplementary declarations will not be required for goods entering CW.

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Excise FSDs

Excise goods have two reporting periods per month known as Excise 1 and Excise 2. Trader’s using the excise reporting periods are required to submit a FSD before the end of the fourth working day following the end of each reporting period (unless notified otherwise by Customs). AI statement ‘FINSD’ must state the period (and month if outstanding SDs are included for previous periods) to which the FSD is proper. For example:

Reporting period 2 - 1st to 14th month, December’s 2012 tax point/base dates.

Acceptance date is 01.12.2012

AI statement ‘FINSD’ shows:

SDI =45/45, SDW= 12/12

11/12= SDI 1

The Customs Procedure Code (CPC) for excise FSDs is 06 49 090