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HMRC internal manual

Temporary Storage and Approved Depositories

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HM Revenue & Customs
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Approvals: ITSF terms and conditions

  1. failure to adhere to any, or part, of the approval terms and conditions and/or operating and all associated terms and conditions within the associated Annexes of the approval, may render The Operator liable to Customs Civil Penalty Action.

Serious or repeated breaches of approval terms and conditions and/or operating or attempting to operate, or collusion with deliberate, non compliant activity(s) will also render The Operator to Customs Civil Penalty (CCP) action, which may also include suspension and/or revocation of their approval. CCP action and/or proven non compliant activity could also have a detrimental impact upon any economic operators AEO approval.

Use of the facilities to undertake activities that breach current EU legislation or UK legislation in respect of the smuggling of prohibited or restricted goods or the evasion of EU or UK revenue by any means and/or the seizure of any goods in respect of which an offence has been committed involving the smuggling of prohibited or restricted goods or the evasion of EU or UK revenue may lead to the withdrawal of this approval.

  1. it is the Operators responsibility to keep fully up to date with current and future legislative and/or procedural changes relating to the legal and operational requirements of Temporary Storage and Temporary Storage facilities.

The Operator must therefore comply with all the relevant provisions of the law (EU and UK) and all relevant requirements, terms and conditions imposed by HMRC and/or Border Force (referred to in this approval as the UK Customs authorities) at all times.

  1. the UK Customs authorities may add to, vary or modify any conditions of a Temporary Storage approval to ensure that they are in accord with EU/UK legal requirements, and/or to provide additional assurance to the UK Customs authorities regarding compliance at a facility.

  2. in the event of The Operators’ premises and/or Temporary Storage approved area, or any part thereof, being sold, leased or otherwise disposed of to a third party, the Border Force NFAU shall be advised immediately in writing by The Operator named within this approval.

An ITSF approval is not portable or transferable to any other third party and applies only to the legal entity named within this approval and for the movement and premises named within this approval.

  1. immediate notice must be given to the Border Force NFAU and the local Customs authority control officer of any change to The Operators financial standing which may impact on their ability to operate the approved Temporary Storage area in accordance with the terms and conditions of this approval, or their commitments to meet any debt that may arise due to the unlawful introduction of, or removal of, un-cleared goods from Temporary Storage, or any customs debt which may become due.

Failure to inform the UK Customs Authority and the BF NFAU of any change to The Operators financial standing as above will seriously jeopardise The Operator, associates and affiliates of being provided with any future Temporary Storage Approval.

  1. in accordance with Section 25A (3) of the Customs and Excise Management Act, The Operator must allow access upon request to the ITSF (and any goods within it) to any officer of the UK Customs authorities must render such assistance to the Proper officer as he/she may reasonably require for the proper performance of his/her duties in, or connection with the ITSF.

  2. the Operator must provide safe working conditions for all UK Customs authority staff attending the premises including safe means of access to containers and/or vehicles. The working conditions must meet the standards set by the competent safety authorities (Health and Safety at Work Act 1974). The Operator must provide a Health and Safety Risk Assessment specific to the ITSF premises to the UK Customs authorities on request.

  3. the Operator must provide access to suitable office, toilet and car parking facilities to the UK Customs authorities free of charge.

  4. the Operator must provide suitable facilities to the UK Customs authorities for storing, examining, sampling and clearing goods and for examining vehicles. This must include the provision and maintenance of such equipment as may be reasonably necessary to enable a UK Customs authority Officer to weigh, measure or otherwise take account of goods. Officers may, however, examine and sample goods anywhere within the approved area as they deem necessary.

Weighing equipment should include the provision of a sufficient number of standard weights for testing any weighing machine to full capacity at the approved premises and maintenance includes the requirement to keep any such weighing equipment within the terms of a current test certificate by a recognised authority.

  1. in the event of there being a change to the approved entity prior notice must be given to the UK Customs authorities.

  2. ITSF premises must be maintained, secured and in a state of good repair to the satisfaction of the UK Customs authorities.

  3. prior approval must be obtained from the UK Customs authorities for any structural and/or material changes to the approved premises including any plans to move/extend or decrease the approved area and/or re-locate the ITSF to alternative premises.

  4. the Operator must provide within the approved ITSF premises a secure, lockable compartment/area (generally referred to as the ‘ullage cage’) for storage of any un-manifested, prohibited or suspicious goods and/or detained or seized goods subject to UK Customs authority investigation. The structure and condition of the cage must be maintained to a standard adjudged suitable by the UK Customs authorities.

The required size of the ullage cage will be that as agreed by the UK Customs authority at the time of the facilities pre-approval visit but it will need to be proportionate to the size and commercial operation of the facility.

The Operator must maintain a record of use of the ullage cage in the manner detailed by the UK Customs authority control officer and must ensure there is restricted access to the key(s).

  1. all ITSF premises must have adequate company signage on the exterior of the facility to enable UK Customs authority visiting officers or other authorised visitors to easily identify the ITSF premises.

  2. the Operator must make suitable arrangements to ensure that access to the ITSF is given only to those categories of person(s) whose duties necessitate their presence within that specific area and you must ensure that all employees whilst on duty in the approved area wear an identity card including the bearers photograph.

  3. the Operator must impose suitable checks to preclude unauthorised access and report any evidence of irregularity immediately to the UK Customs authorities.

  4. the Operator must provide details of the facilities operational opening and closing hours/days to the UK Customs authority prior to approval and prior agreement must be obtained from the UK Customs authorities for any amendment to these agreed operational opening and closing times.

Operating an approved ITSF outside of these agreed working hours, including the storage of goods off site in unapproved areas whilst awaiting for a facility to open, will constitute a serious breach of approval which will result in Customs Civil Penalty action being taken.

  1. a record of all visitors, vehicles and staff working at, or visiting, the premises must be maintained by The Operator, in the manner prescribed by the UK Customs authorities. This record must be available for inspection by the UK Customs authorities on request.

  2. the approved premises and/or storage area(s) must be physically equipped with a Customs approved IT record keeping/inventory system (referred to as the ‘ITSF Stock Account Record’) which must have an associated Anti Smuggling Net.

This system must be able to, and be used to:

  • provide an approved electronic inventory for the entry of all Temporary Storage goods entering into the facility (stock account records)
  • provide electronic inventory control of all Temporary Storage goods whilst in the facility
  • provide an electronic record of all activity relating to Temporary Storage goods, particularly arrival, out-turn, discrepancies, examinations, sampling, movement within the facility and/or other authorised activity
  • provide an electronic notification record of all movements to, from or between TS facilities
  • provide electronic notification and receipt of the removal of goods after customs clearance
  • provide an electronic log of the actual time goods remained within Temporary Storage whilst in the facility
  • transmit electronically all customs declarations for cargo in the Temporary Storage area within the appropriate timescales

Failure to operate the ITSF Stock Account Record in the prescribed manner will constitute a serious breach of this approval which will result in Customs Civil Penalty action being taken.

  1. the Operator has elected to use Cargo Community System - UK (CCS-UK) as the ITSF stock account record, as required at condition 18 above.

The Operator must ensure this system is used in the manner prescribed by the UK Customs authorities, as set out in Annex D for CSP users, by reference to the operational guidance as provided by the CSP provider and/or any other associated guidance as issued by the UK Customs authorities.

Access to the Operators chosen ITSF Stock Account Record and associated Anti Smuggling Net, where separate must be provided to the assigned Border Force Parent Port responsible for the control of goods at the ITSF (as stated in the approval letter) and/or to any other UK Customs authority office requested (for example Local Compliance CITEX, Large Business, the National Clearance Hub Salford) where access to the system is required to maintain control of the goods at the ITSF by the UK Customs authorities.

Failure to deliver or maintain sufficient delivery, or provide the required access or maintain the approved record keeping system capability in the prescribed manner will constitute a serious breach of this approval which will result in Customs Civil Penalty action being taken.

  1. remote ITSF management/operations and/or ITSF Stock Account Record Management of an ITSF area is not allowed and approved ITSF premises must be manned and managed by a competent person(s) on behalf of The Operator during the agreed operational opening hours and with the required ITSF Stock Account Record IT hardware also being in residence.

  2. the Operator must introduce and maintain a housekeeping programme on the ITSF Stock Account Record in order to ensure that each consignment and inventory record has been correctly identified and accounted for in order to avoid significant numbers of outstanding records. This includes the correct discharge of all transit movements into and out of the facility.

Failure to conduct regular housekeeping of the stock account record will constitute a serious breach of this approval which will result in Customs Civil Penalty action being taken.

  1. all goods authorised or permitted to be deposited in the ITSF must on removal from the aircraft/vessel be taken immediately to the receiving facility without alteration, diminution or interference or unauthorised stop-over of the vehicle.

  2. all movement of goods, vehicles and/or containers entering and departing the ITSF which are carrying Non Union goods must be fully controlled and documented and where appropriate, Transit declarations must be made and/or discharged correctly and within the appropriate time scales.

  3. any consignments arriving at the ITSF premises consisting of high duty goods, for example spirits, wine, cigarettes must be immediately notified to the UK Customs authorities and Operators should be aware that they may be required to place a cash sum on deposit with the UK Customs authorities for the duration of the storage of such goods held within the ITSF.

  4. the Operator must record details of all goods upon their arrival at the Temporary Storage facility into the customs approved electronic inventory ITSF Stock Account Record. This also applies to all goods declared and moved to/from the ITSF. Upon request, The Operator must provide information from that record to the UK Customs authorities within 10 working days when requested to.

Failure to abide by this condition will constitute a serious breach of this approval which will result in Customs Civil Penalty action being taken.

  1. there are strict limitations on the operations that may be carried out on goods in Temporary Storage. The Operator must ensure that Temporary Storage goods shall not in any manner be interfered with (including de-consolidation), altered, unpacked or otherwise interfered with nor removed from the facility without explicit permission from the UK Customs authorities, except where this is allowed for under EU Regulation 952/2013 of the Union Customs Code, Articles 189 and/or 190.

Only minimal operations necessary to preserve the goods in an unaltered state may therefore be carried out and The Operator should contact the UK Customs authority control officer if there are any doubts about what operations may be carried out on goods in Temporary Storage.
Failure to abide by this condition will constitute a serious breach of this approval which will result in Customs Civil Penalty action being taken.

  1. the operator must ensure that all poisonous and hazardous/dangerous goods are clearly marked and are segregated appropriately from all other goods in the ITSF premises.

  2. the operator must ensure that all goods deposited in the ITSF are assigned to a customs procedure or re-exported within the prescribed time scales from their reported arrival (for example, wheels down or vessel berthed) by the method(s) agreed with the UK Customs authorities. A record of the used or remaining period of time left for the temporary storage of goods must be evidenced on both the despatching and received records.

The Operator shall provide the UK Customs authorities with a written explanation as to why any Temporary Storage goods have not been entered to a Customs procedure or re-export within the time limits which are in [legal] force at that time, for all goods which exceed those time limits. Goods that have not been entered within the time limits are deemed to be detained and must be placed into the ullage cage and reported to the Customs authorities.

  1. any removal of Temporary Storage goods from the ITSF to other External or Internal Temporary Storage Facilities must be in accordance with the agreed removal procedures as stated in the Annexes to this approval.

The exact procedures to use will be dependent upon the type of approval held by the sending and receiving premises, the IT Inventory System in use at the facilities and the method used to undertake the movement.

Removal from the ITSF of goods which remain Non Union goods shall be restricted to being placed in secure containers or vehicles, locked and/or sealed at the point of departure and such containers or vehicles can only be removed when secured to the satisfaction of and with the authority of the proper UK Customs authority control officer.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Failure to physically deliver the goods into the ITSF and to enter them onto the ITSF Stock Account Record, or declare them to a customs procedure or use will constitute a serious breach of this approval which will result in Customs Civil Penalty action being taken.

  1. the Operator must not allow removal of any goods from the ITSF until they have received an original (or faxed copy) of an authenticated removal note in the form of:
  • a C130
  • a system generated release note/message
  • release by another, approved electronic message format (for example SMS)

The removal of goods prior to the receipt of an original (or faxed copy) of an authenticated removal note will constitute a serious breach of this approval which will result in Customs Civil Penalty action being taken.

  1. the UK Customs authorities may require additional and/or alternative evidence of goods clearance status, such as a Display Entry Version Detail (DEVD) print from CHIEF, Transit Accompanying Documents (TADs) for NCTS or Declarations where goods have evidence of EU status, which must be supplied to the UK Customs authorities on request.

  2. the Operator must supply the person(s) removing any goods from the ITSF with a hard copy of the relevant goods release note, systems authenticated removal authority or have means to provide confirmation of the authenticated removal authority when sent in another approved electronic message format.

  3. the Operator must ensure that all customs cleared goods are removed from the Temporary Storage facility as soon as possible, but not exceeding three days from the date of customs clearance.

The Operator shall provide their UK Customs authority control officer with a written explanation as to why goods have not been removed from the Temporary Storage area of the facility on customs clearance with the three day maximum or other agreed time limit.

  1. the Operator must keep records and accounts of all imported and re-exported Temporary Storage goods activity, including customs entry and clearance/removal documentation for a minimum of four years after finalisation of the customs procedures for those goods as stated in The Customs Traders Accounts and Records Regulations 1995 Regulation 9.

Records must be kept for each and every consignment received into the approved facility, which should contain at minimum, details of the:

  • delivery date and exact time of delivery plus hauliers name and vehicle registration details
  • shipping agents manifest
  • approved CSP inventory system manifest (where applicable) detailing the consignment reference as completed by the person who unloaded the container/trailer
  • approved inventory system out-turn report showing any discrepancies
  • transit documentation/details
  • customs entry details
  • customs clearance advice
  • gate pass showing the date and time of collection, along with the hauliers name and vehicle registration details reference to the relevant temporary storage declaration for the goods stored and reference to the corresponding end of temporary storage
  • the date and particulars identifying the customs documents concerning the goods stored and any other documents relating to the temporary storage of the goods
  • brand, identifying numbers, number and kind of packages, the quantity and usual commercial or technical description of the goods and, where relevant, the identification marks of the container necessary to identify the goods
  • location and particulars of any movement of goods
  • customs status of goods
  • particulars of forms of handling referred to in Article 147(2) of the Code
  • concerning the movement of goods in temporary storage between temporary storage facilities located in different Member States, the particulars about the arrival of the goods at the temporary storage facilities of destination
  • a reference to who has guaranteed the goods whilst moving between temporary storage facilities.

The Operator must produce records and accounts (or provide easy access to them where records are maintained and archived in an electronic format) to the UK Customs authorities when and where required - Finance Act 1994 s23 refers.

Any act of tampering with, or falsifying documents and/or electronic records relating to ITSF records will constitute a serious breach of this approval which will result in Customs Civil Penalty action being taken.

  1. a variety of imported goods must have checks carried out on them at their place of importation into the UK before the relevant authority (for example the Official Veterinary Officer) will permit them to be removed out of the (air)port of importation.

The Operator must not therefore allow the removal of controlled goods which require specific clearance at the frontier, to an ETSF unless the goods have the appropriate documentation or in the case of goods subject to plant health, horticultural or timber controls which can be carried out inland, The Operator premises have been specifically approved by the appropriate UK regulatory body for inland examinations.

For more detailed information regarding controlled goods please see Annex G to this approval.