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HMRC internal manual

Customs Freight Simplified Procedures

Processing the application: services of a Direct Representative

Traders may employ a representative to act as a Direct Representative (DR). If the representative is purely acting as a third party service provider (eg compiling declarations and forwarding them to Customs) then they are deemed to be acting as a DR. The DR’s EORI will appear on the declarations in box 14 (declarant) and the authorised traders EORI will appear on the declarations in box 8 (consignee). The authorised CFSP trader is solely liable for the customs debt.

If a trader applying for CFSP intends to use a DR to submit their supplementary declarations they will indicate the name, address and VAT number of the DR in Section 2 of the C&E48 application form. The applicant must document the functions that the DR will perform on their behalf within their documented procedures or obtain a copy of the documented procedures from the DR which they should check and retain.

The authorising officer must ensure the points outlined below are actioned in addition to the standard authorisation procedures.

1. Action by the applicant’s authorising officer

On receipt of the application:

  • Check whether the DR is known to be currently providing a similar service for any other companies, and if so what is their compliance record?
  • If this is a new DR, is anything known about them by HMRC?
  • Agree a testing procedure for the applicant.
  • Agree whether an officer located in the area for the DR should visit to review the DRs system and procedures (recommended).
  • Agree the intended date of commencement for ‘live’ transmissions for the applicant.
  • When/if ready, issue the legal entity applicant (not the DR) with the C&E58 authorisation letter. This may be copied to the officer for the DR for information and retention.

Note the results of these checks and the action taken in the visiting officer’s report.

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2. Action by the DR’s local office/r

  • Upon receiving notification (in CITEX via caseflow) from another office that a DR in their area will be representing a CFSP applicant and that assistance is required, the allocated officer must liaise with the officer for the applicant as above.
  • Following consultation and risk assessment based on individual circumstances, the allocated officer must arrange a visit to the DR to assess the suitability of the system, retention of data and control procedures including the communication links between the applicant and the DR.
  • Communicate any findings to the applicants authorising officer and agree any ‘remedial’ action required.