Letter 6 - Letter to be issued to Authorised Consignees

[This letter is not the trader's approval letter for Authorised Consignee status. The trader's approval letter for Authorised Consignee status will be issued to the trader direct by Central Community Transit Office (CCTO). A copy of that letter will be forwarded to the CFSP authorising officer and must be maintained in the trader's folder.]

[The letter explains their obligations as Authorised Consignees within CFSP. It must be issued to all traders operating LCP (with transit).]

Dear Sir/ Madam,

In accordance with your approval for Authorised Consignee status issued to you by CCTO on ..../.…/….…. you are hereby authorised to use Transit procedures from the frontier to your designated premises and to discharge the transit as follows;

Goods arriving under full Community Transit and continuing under full CT to the approved premises.

At inventory linked locations you should present Form C21 using CPC 0611001. At non-inventory linked locations you should present a removal note (Form C130 or another locally acceptable removal note).

Common/Community Transit (CT) and the New Computerised Transit System (NCTS)

If you are authorised as an Authorised Consignee to operate CT and NCTS with LCP to receive third country goods which have been placed within the Community Transit procedures in another EU member state or EFTA country, and have arrived at the UK border under full CT, you must;

  • use NCTS to communicate with Customs;
  • use a designated office of destination; and
  • inform customs as soon as the goods arrive at the approved premises.

For electronic National Transit (at DTI inventory linked locations or at non - inventory linked locations which have CHIEF access:

Input an electronic National Transit declaration (SFD) at the frontier using CPC 0611000 or 0611002 as appropriate. At non - inventory locations a removal note (Form C130 or another locally acceptable removal note e.g. an E2) will be required.

Where broken seals, shortages, overages, substitutions or any other irregularities are discovered the trader should inform the Office of Destination (usually the office that authorised the trader) immediately.

You are required to return the attached copy of this letter certifying at the place provided below that you accept and will observe the conditions of this authorisation.

Yours Faithfully,

(Officer's Name in capitals:) ......

Signature:...... …..

Date:......

Officer of Revenue & Customs

The copy letter is to include the following acknowledgement:

I acknowledge receipt of your letter dated ..../..../...... and confirm, on behalf of ...... that we will comply with the conditions of the authorisation as notified to us in this letter.

Name in capitals:......

Signature:...... …….....

Date:......

(*Proprietor/Partner/Director/Company Secretary)

*delete as appropriate

If you do not agree with this decision there are 3 options available. Within 30 days of the date of this letter you can either:

•Send new information or arguments to me at the above address,

•Request a review of the decision by someone not involved in making the disputed decision. Your request must be in writing and should set out the reasons why you do not agree with the decision. Please write to:

Customs and International

Review and Appeals Team

7th Floor South West

Alexander House

21 Victoria Avenue

Essex

SS99 1AA, or

•Appeal direct to the Tribunal who are independent of HMRC

If you opt to have your case reviewed you will still be able to appeal to the tribunal if you disagree with the outcome.

Further information relating to reviews and appeals is contained in leaflet HMRC1 which can be obtained from our website at or by phoning 0845 900 0404.

Information for Authorising Officers dealing with an authorisation where there is a request by an indirect representative to use a customer’s deferment account for both payment and security.

Authorising Officers should also refer to Letter 7

Council Regulation (EEC) No 2913/92 and Commission Regulation (EEC) No 2454/93 require security to be provided against any potential debts that may arise from the release of goods using a simplified procedure.

As a result, the authorisation criteria for CFSP require such security to be specified within the approval. All declarations made through CFSP must be covered by this security irrespective of whose deferment account is ultimately used for payment. Therefore, indirect representatives (IR) are required to provide adequate security to cover all goods declared using their CFSP approval (e.g. sufficient to cover their own and their clients’ importations).

Indirect representatives (IR) may opt to use their client’s duty deferment account (DAN) guarantee as security for CFSP providing the conditions outlined below are fulfilled. CFSP traders wishing to take advantage of these procedures must adhere to the specific conditions of approval detailed in this document and follow the application procedures outlined below. Traders must not use these procedures until they have been authorised to do so by Customs.

Conditions of Approval

In order to operate these procedures the IR must:

  1. be authorised for CFSP as an indirect representative;
  2. obtain written approval from each of their current clients (as per Letter 7) prior to using their DAN as security;
  3. be given written approval from Customs prior to using these procedures;
  4. regularly monitor that their client’s security is adequate and take steps to amend/ increase the DAN/authority where it is found to be insufficient;
  5. provide adequate security themselves as an indirect representative and monitor that it remains at a sufficient level at all times to cover any amounts not secured by their clients;
  6. obtain written authority from any new clients (as per Letter 7) prior to using their DAN as security. This authority must be sent to the IR’s CFSP authorising office prior to using the new DAN. The new client’s DAN may not be used until, it has been agreed by the IR’s CFSP authorising officer.

Failure to adhere to these conditions should result in a written request being issued to the CFSP authorised trader stating that they must increase their security to a level which is sufficient to cover the full customs debt.

Indirect Representatives must comply with the conditions and requirements of this procedure and the general authorisation or it may result in Customs taking action against them and could lead to a Civil Penalty and/or the suspension or withdrawal of their authorisation.

Application Procedures
  1. The IR must make a formal request to their CFSP authorising office prior to operating this facilitation (the request may be made in conjunction with their CFSP application or may be requested as an amendment to an existing authorisation). This request must include:
  • a list of their client’s DANs that they wish to be used as security;
  • written authority from each client (on their company headed note-paper) approving the use of their DAN as security. The format this authority must take is specified at Letter 7;
  • a worksheet showing the total (average) monthly revenue throughput of the CFSP authorisation;
  • a worksheet showing the amount of security to be provided by each of their clients DANs;
  • details of how the balance of the security (i.e. total throughput minus client’s provisions) will be secured (e.g. their own DAN or a single guarantee).
  1. The written authority to be provided by each client (as shown at Letter 7) must specify the following information:
  • the financial amount of security they will provide;
  • assurance that their DAN will be maintained at a sufficient level to cover this security in addition to any other deferment transactions (e.g. security provided = £20,000, other DAN transaction = £150,000, DAN must be maintained at £170,000 or above);
  • an acknowledgement of their awareness that they are held jointly and severally liable for the customs debt as a result of their use of an indirect representative.
Action Required

The IR must:

  1. obtain written authority from each of their clients and send these with their application to their CFSP authorising office.
  2. have a system in place to:
  • monitor the authorisations total CFSP liability;
  • monitor the amount of security provided by each DAN/ single guarantee (both their own and their clients where used);
  • monitor the throughput of each security’s transactions (i.e. a DAN by DAN reconciliation of the amount of revenue entered in the month against the amount of security provided), and
  • immediately increase the amount of security provided, as necessary.

Both the authorised CFSP trader and their client must be aware that they are jointly and severally liable for the debt and that Customs may claim against either of these parties to collect any outstanding revenue.

The CFSP authorising officer will then need to:

  1. perform a satisfactory CDO1 check on the customer’s deferment (the CDO1 form and completion notes is available in C2-5)
  2. be assured that the indirect representative has a satisfactory system in place that will monitor the monthly throughput against each DAN to ensure its continued adequacy. In the event that the security limit is reached the authorised trader must immediately increase the security level accordingly.
  3. Once the officer is satisfied that:
  • the DANs are sufficient,
  • both the authorised trader and their clients have a good compliance record withDMB Banking Southend; and
  • that the revenue is satisfactorily safeguarded
  • and that all other CFSP authorisation conditions and criteria are met, the CFSP authorisation may be issued.
  1. The officer must then ensure that they receive a signed acknowledgment back from the trader. If this acknowledgement is not received then the trader should be given a time limit for its production or this facility must be withdrawn.

If at any time there are found to be problems with the security provided or its monitoring by the trader this facility will be withdrawn and the authorised CFSP trader will be required to provide the full security.