What do we mean by compliance and why is it so important?
Compliance falls into three main areas:
Accuracy includes a wide range of areas, but two of the key ones are:
There are many elements that need to be accurate but these are two that customs will look at first if they carry out an audit/review of a company.
Complete – have you ensured that all your customs declarations have been submitted and correctly?
On time - are you sure that all your declarations and payments have been made on time?
These highlight a few key areas of compliance but in summary – a company must prove compliance before looking to opportunities but how do you prove you are compliant?
Authorised Economic Operator (AEO)
AEO says to HMRC:
“I take my responsibilities for customs matters seriously.” It proves compliance through having detailed, documented processes and procedures.
It shows that your staff are trained and aware of the customs requirements and obligations.
It helps to identify efficiencies – are you managing your customs activities, processes and service providers to achieve compliance in the most cost-effective way.
Effectiveness also means - Are you taking maximum advantage of trade facilitation and duty minimisation opportunities?
Therefore, improved compliance and efficiency leads to the simple identification of cost reduction opportunities to give:
Customs compliance at the lowest lawful costs.