Customs brokerage - Customs Freight Simplified Procedures

CUSTOMS FREIGHT SIMPLIFIED PROCEDURES (CFSP)

Customs Freight Simplified Procedures (CFSP) is customs declaration system introduced to replace period entry and period warehousing. Under CFSP, the importer's representative can arrange clearance of goods via a simplified entry, which is later finalised with a supplementary declaration. In most cases this will give the Importer immediate clearance enabling them to arrange faster deliveries.

Procedures

If you were to qualify for CFSP you will benefit from:

  • The optional use of Local Clearance and Customs Warehouse regimes providing greater control over tax points and accounting periods;
  • Improved cash flow;
  • Electronic paperless importing and reduced month-end reporting;
  • Improved clearance times;
  • Flexibility to choose the timing to submit electronic declarations;
  • Improved control over customs documents.

CFSP was created to help with the needs of the business community throughout the United Kingdom. It improves and simplifies Customs procedures for importers wanting to clear goods, either at port or out of warehouse. Under CFSP, the first Customs declaration is kept to a minimum with the remainder of the information required later in the supplementary declaration. This is in line with Customs' aim to decrease the amount of paperwork previously required.

When goods arrive at the port, a Simplified Frontier Declaration (SFD) is produced. Under CFSP, supporting documents are no longer required to be produced at the port. Nine times out of 10 immediate clearance will be granted, however the examination team at the ports still have the right to detain containers for examination. The Supplementary Declaration Import (SDI) is then submitted to Customs at a later date dependant on what procedure it is entered to.

Following the clearance of the SFD, the goods are now able to move to either a Customs Warehouse or to your Customs-approved inland depot for temporary storage. The goods are then allowed to remain at your premises with no Duty and Vat paid for 20 working days. After this period, goods must be entered to another Customs regime or cleared.

If you elect to store in a Customs approved Warehouse, you may report the removal of goods up to 24 hours after removal, by means of a Simplified Declaration Warehousing (SDW) recording details electronically; this is in accordance with the approval regulations in becoming a Customs approved Warehouse. The date that you remove the goods from your warehouse will determine the tax point and the date that the SDI should be transmitted to Customs (typically within 4 working days of the period end).

Anyone who can meet the criteria and conditions that have been set by HM Revenue & Customs may apply to be authorised for CFSP, provided they:

  • Conduct business as a legal entity in the EU;
  • Regularly declare goods;
  • Have a good compliance record with other Customs requirements.

Prior to the authorisation being granted, Customs will visit you and set out specific conditions with regards to the way the Local Officer would like to see the system run.

The vast majority of imports are eligible for CFSP, but certain goods are currently excluded:

  • Goods requiring documents at the frontier for health, safety and environmental reasons, e.g. endangered species and hazardous waste;
  • Goods subject to UN import sanctions;
  • Goods subject to Excise duty.

Responsibility for managing the customs area of work can be brought in-house allowing greater control over information provided to customs.

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