National Export System (NES) and authorisation procedures: overview of simplified procedures
Under NES there are simplified procedures that can be used. These are:
- Simplified declaration procedure (SDP)
- Entry in declarants records (EIDR)
- Customs supervised exports (CSE)
Under the UCC Local Clearance Procedure (LCP) is being removed and replaced with EIDRCSE is a national scheme being introduced by HMRC to provide customs supervision for traders previously authorised for LCP that cannot use EIDR.
EIDR is a new simplification under the UCC that will require a supplementary declaration to be made to CHIEF. EIDR is limited for export traders.
SDP remains under the UCC.
1. Simplified Declaration Procedure (SDP)
SDP is a simplified export procedure which requires the exporter to obtain prior authorisation to use this scheme.
It involves a 2 part declaration that can only be used at Frontier locations. The first part of the procedure, the Pre Shipment Advice (PSA) requires the exporter to submit to Customs basic details of the export consignment.
Once the goods have been legally presented and Customs Handling of Import and Export Freight (CHIEF) has accepted the declaration, permission to progress (P2P) is granted the goods may then be loaded for export shipment. The Supplementary declaration must be submitted within 14 days of the departure of the goods from the UK. The exporter must submit both parts of the declaration to Customs electronically using one of the available transmission routes. The same Declaration Unique Consignment Reference (DUCR) must be used on the PSA and the Supplementary Declaration.
SDP may be used to declare exports to Customs at UK ports and airports, and can also be used at DEP facilities as Customs consider these to be frontier locations. Exporters who want to operate SDP in their own name must obtain prior authorisation, should they not wish to be authorised themselves they will need to use an operator who is authorised.
2. Entry In Declarants’ Record (EIDR)
Scope of EIDR
EIDR is a simplified export procedure that requires prior authorisation. An applicant has to fulfil AEO criteria specified in Articles 39(a) and (b) of the UCC.
Customs and other tax compliance (related to the economic activities of the applicant), Record-keeping standards and Practical standards of competence or professional qualifications.
An EIDR authorisation can only be granted where a pre departure declarations is not required and the goods being exported are a direct export. (Goods leaving the Union direct from the UK)
Examples of goods eligible for EIDR are:
- Electrical energy
- Goods leaving by pipeline
- Spare parts for aircraft and vessels
- Provisions for aircraft and vessels.
A supplementary declaration is still required for EIDR and must be submitted within 14 days of the goods departing the UK.
The full list og goods that do not require a pre-departure declaration are detailed in Article 245 of the Delegated Regulation 2446/2015.
EIDR cannot be used exporting excise goods, unless Article 30 of Directive 2008/118/EC is applicable.
EIDR cannot be used where a standardised exchange for information (INF) is required between customs authorities, for example inward processing and outward processing.
3. Customs Supervised Exports (CSE)
CSE is a new national export scheme being introduced by HMRC.
The UCC and current Community Customs Code (Reg. No. 2913/92), require that goods must be under customs supervision at the time they are placed in the export customs procedure.
Current LCP procedures enable HMRC to select goods for physical examination in the same way that such checks are made at a customs frontier location. We will therefore continue to allow appropriately authorised traders to declare goods to the export procedure at their premises under a new scheme called Customs Supervised Exports (CSE).
Initially, existing LCP traders will be deemed to meet criteria for CSE and can continue to declare goods for export at their premises, providing they continue to fulfil the terms of their current LCP authorisations.
The current arrangements for these businesses will continue without change on 1 May 2016.
Economic operators seeking to gain CSE that are not currently authorised will have to meet the following criteria to be aligned with Code compliance standards:
Applicant complies with criteria laid down in UCC Article 39(a) (b) (c) and (d)
Applicant has satisfactory procedures in place for handling licences and authorisations
Applicant ensures that there are procedures in place to inform customs authority of compliance irregularities.
HMRC will reassess existing LCP authorisations against the new criteria at a future date after the UCC comes into force.
CSE is a national scheme that replicates certain LCP procedures, but in legal terms it is not LCP. Where other facilitations depend on references to LCP, these will not be available until the relevant legislation has been amended.
All UCC facilitations post 1 May 2016 will be detailed in the UCC legislation which will not refer to Customs Supervised Export (CSE) as it is a national application of the requirement to supervise goods.