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HMRC internal manual

Customs Freight Simplified Procedures

HM Revenue & Customs
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Processing the application: receipt and processing of a CFSP application

New CFSP applications
Authorised Economic Operator (AEO)

New CFSP applications

On receipt of the application form C&E48 Application form for Simplified Procedures (PDF 149KB), the officer must check that it has been completed fully, correctly and that the contents are valid.

Note: The application form is in three parts - Import, Export and Single Authorisation Simplified Procedures. Care should be taken that the applicant has fully completed Section 1 - General information, Section 2 - Imports and Section 3 - Additional requirements, of the form. Ensure that the form has been signed and that the status of the signatory is declared (Sole Prop, Company Director etc).

The pre-authorisation checklist acts as an aide memoir and should be used to record the results of the C&E48 completeness and validity checks. The results of the generic checks on the trader’s compliance should also be recorded. If any details are missing or unclear the form should be returned to the applicant within 30 days of receipt. Advise the applicant of any shortcomings and set a realistic deadline for correct completion and return of the form. Note the date of return to the applicant locally. Alternatively, contact the applicant by phone, making a note of the conversation and the results of the query in the checklist.

Do not amend the application form as this is a legal declaration signed by the applicant.

The officer must also:

  • send an acknowledgement of receipt to the applicant within 30 days of receipt
  • ensure that the applicant has all the associated authorisations/criterion in place for the type of CFSP procedure they are applying for. If they don’t, direct them to the appropriate Notices and/or further application forms for the procedures requested, i.e. Notice 101 for duty deferment, C&E 810 application form for Inward Processing, Form C1343 application form for transit simplifications etc.

The application process should be halted until these requirements are in place.

Note: If the applicant already holds a Customs Warehousing authorisation, it will need to be amended to allow for receipt and removal of goods under CFSP, prior to issuing the CFSP authorisation. Where the CFSP applicant is not the CW authorisation holder, the authorising officer must check that the Customs Warehouse is authorised to receive or remove goods using simplified procedures.

If, on completion of the pre-authorisation checks, there is sufficient reason to believe that the trader is

  • non-compliant

the officer should discuss with line management the risks involved with their authorisation for CFSP. If these risks can be minimised through

  • the implementation of additional controls or the adding of restrictions to their operation of CFSP (eg SDP only or individual/periodic notifications of removal under EIDR)

the application may be progressed. You should note the results of your checks and any comments or recommendations in the pre-authorisation checklist which will be forwarded to the visiting officer.

If there is reason to believe that the trader will pose a significant risk to the revenue/society then line management may recommend that the application be rejected. Line management may wish to consult the CFSP Policy Team in Southend on sea prior to rejecting an application. Also see CFSP19100.

Note: The rejecting of an application is an appealable matter and the authorising officer must be prepared to defend their decision to the trader and/or an appeals officer and/or a Tribunal.

When all the associated authorisations and procedures are in place, the pre-authorisation checks have been completed and recorded and if there is no reason to reject the application at this stage, the pre-authorisation visit may be arranged. In Local Compliance this is via the RIS team.

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Authorised Economic Operator (AEO)

If the trader is either already an AEO or has applied for AEO authorisation and is new to CFSP, the processes specific to CFSP noted in section 15 of the C&E48 (such as the specific computer system and software, the use of Direct Representatives and the provision of security via a deferment guarantee (their own or a clients)) may still need to be verified and tested. Do not presume that this has already been done. However you should not have to test the applicant’s compliance as these should already have been/will be tested during the AEO visit.

If the AEO authorisation has been rejected you will need to establish the reason for the rejection (if not already known) before continuing with the CFSP authorisation. If the details are not in the trader’s folder the AEO authorisation team in Nottingham should be able to help. If the rejection is due to the safety and security aspects of authorisation, the trader may still apply for CFSP authorisation. If the rejection is due to poor compliance the CFSP application should also be rejected.