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HMRC internal manual

Customs Freight Simplified Procedures

HM Revenue & Customs
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Rejection of a new application or suspension/revocation of an authorisation: suspension of the authorisation

If the authorisation holder does not improve their compliance within the notified timescales the authorisation should be suspended, however the officer may decide against the suspension if the infringement is considered insignificant in comparison the number or size of the authorisation holder’s customs operations.

See CFSP19350. The Right To Be Heard letter must be issued. Under (RTBH) legislation the trader will have 30 calendar days in which to provide extra evidence. If no evidence is received from the trader under the RTBH, the suspension letter will be issued. The suspension letter will have the appeals paragraph included and the trader will have a second period of 30 days to appeal the decision. If no appeal is received and the decision to suspend is upheld, the officer must inform the CFSP U of E of the date that the suspension comes into force. The UoE will notify CHIEF Operations who will then temporarily remove the trader’s details from the system. This will prevent the trader from submitting any further CFSP declarations.

The trader must then revert to full declaration procedures at the frontier whilst their authorisation/systems are being reviewed. The officer should discuss and document each area of systems weakness with the trader and devise management controls which will address these risks.

The suspension period is set at 30 days. If after this time the trader can prove that given a further extension of time they can implement the necessary changes, the suspension may be extended by another 30 calendar days.

Once any necessary system/ procedural changes have been implemented the officer should perform a system walkthrough/ test. If the officer is satisfied that the trader can then comply fully with the criteria and conditions of their authorisation they should contact the UoE who will inform CHIEF Operations to reinstate the trader’s details. The officer must also notify the trader and the CFSP U of E that the suspension is withdrawn.

If the authorisation holder does not implement the changes within the given timescales, the authorisation should be revoked.

The authorisation holder may also ask for a temporary suspension of their authorisation. They must notify their authorising officer in writing of the date by which they will be able to meet the criteria and conditions of authorisation again and the planned measures and timescales for the improvements. If the trader does not meet their own deadline a reasonable extension may be granted.