1.1 The Law. Export control System (ECS) and Safety and Security

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1 : Exports 1.1 The Law All goods exported from the UK to non- EU countries must be declared to Customs. In the UK all export declarations must be made electronically to the National Export System (NES). Electronic declarations can be made by the exporter or their appointed representative to CHIEF (Customs Handling of Import and Export Freight). In some circumstances (for example a personal export) Customs will enter export details to CHIEF on behalf of the exporter (See 1.5 Manual Declarations (in paragraph 1.5)) The legal provisions governing export declarations are included in EU Regulations and National legislation set out below. EEC Regulations: Council Regulation 2913/92 (Customs Code) Commission Regulation 2454/93 (Implementing Provisions of the Customs Code); Council Regulation 648/2005 (amending the Customs Code in respect of safety and security); and Commission Regulation (EC) No 1875/2006 (amending the implementing provisions of the Customs Code in respect of Safety and Security). National Law: Customs and Excise Management Act (CEMA) 1979 as amended by S.I no 2724 Section (Exports) Commissioners Directions 2002 Statutory Instrument 2003 No. 467 Value Added Tax Act 1994 Section 16.1 Export control System (ECS) and Safety and Security The Export Control System (ECS) controls indirect exports by exchanging electronic messages with other Member States. Safety and security provisions require pre-departure information which will be risk assessed in advance of the export movement. Deadlines for the lodgement of Customs declarations The safety and security regulation provides minimum deadlines for the lodgement of export declarations. Full details can be found in Article 592b(1) of Commission Regulation (EC) No 2454/93. They are summarised as follows: (i) for containerised cargo, at least 24 hours before the goods are loaded; (ii) for air traffic, at least 30 minutes prior to departure from an airport; (iii) for rail and inland waters traffic, at least two hours prior to departure; (iv) for road traffic, at least one hour prior to departure; (v) for supplies for ships and aircraft at least fifteen minutes prior to departure. Please note that these are the minimum legal deadlines and some commercial carriers (particularly in the maritime industry) may require receipt of the information included in an export declaration long before the statutory deadlines to enable them to meet safety and security and commercial responsibilities. Please see section 1.3 for an overview of the new requirements. Who may make an Export Declaration? Declarations may be made by any person who is able to present the goods in question, or to have them presented, with all the supporting documentation required. Where acceptance of a declaration imposes obligations on a specific person, the declaration must be made by that person or on their behalf. The declarant must be established in the EU. However, the conditions regarding establishment in the EU shall not apply to person who: make a declaration for transit or for temporary admission; make a declaration for transit or for temporary admission; declare goods only on an occasional basis, provided that the Customs authorities consider this to be justified. Any person may appoint a representative to perform the acts and formalities laid down by Customs rules.representation may be by: - By direct representation; or - By indirect representation Direct representatives act in the name of, and on behalf of, another person. Indirect representatives act in their own name but on behalf of another person. A representative must state that he is acting on behalf of the person represented and specify whether that representation is direct or indirect and be empowered to act as the representative. Failure to comply on any of these conditions will result in the person concerned being deemed to be acting in his own name on his own behalf. Article 199 of Regulation 2454/93 provides that: Without prejudice to the possible application of penal provisions, the lodging of a declaration by the declarant or their representative shall render them responsible under the provisions in force for: the accuracy of the information given in the declaration, the authenticity of the documents attached, and compliance with all the obligations relating to the entry of the goods in question under the procedure concerned. This means that although there is no pre-printed declaration on the form as to the accuracy of the information it contains contains, the submitter of the declaration is legally responsible for its accuracy. Indirect Exports An indirect export means goods are declared for export in one EU Member State and then leave the EU via another Member State. In such cases the office where the goods are declared and presented for export is the customs office of export and the office where the goods leave the EU is the customs office of exit. Direct Exports Direct exports are where the whole of an export operation takes place in the territory of a single Member State. The Customs office where the declaration is presented can be both an Office of Export and an Office of Exit. Tariff data held on CHIEF Every effort is made to ensure the accuracy of the Tariff data held on CHIEF and to incorporate changes and corrections as promptly as possible. However, in cases where the information on CHIEF is at variance with that contained in the appropriate EU legislation published in the Official Journal of the European Communities, the latter will represent the correct legal position. VOLUME 3 PART 1 1 January

2 VOLUME 3 PART Export declarations General Requirements Full Export declarations are required for most goods: being exported outside the customs territory of the EU as defined in Article 3 of Reg. 2913/92; or being sent to one of the following special territories of the EU: The Aland Islands (Finland) The Canary Islands The Channel Islands French Overseas Department of Guadeloupe, French Guiana, Martinique and Reunion Mount Athos also known as Agion Poros (Greece) CAP goods exported to entitled destinations as provided for in Article 36 of Regulation 800/99, these include: i. Supplies within the EU for victualling on: Seagoing Vessels: or Aircraft serving on international routes, including intra-eu routes ii. Supplies to international organisations in the EU iii. Supplies to armed forces stationed in the territory of a Member State but not serving under its command Simplified Export Procedures There are two simplified procedures available to traders they are the Simplified Declaration Procedure (SDP) and the Local Clearance Procedure (LCP). Traders need to be authorised to use these procedures. For details of LCP and SDP and how to register, please see section below Exit Summary Declaration (EXS) The EXS consists of only Safety and Security data (laid down in annex 30A of Reg 2454/93) and is only required where a full export declaration (including Safety and Security data) is not required (Article 842a of Reg. 2454/93 refers), see paragraph The EXS should be presented to the Office of Exit, not the Office of Export. Circumstances where an EXS will be required are listed in paragraph Section 1.9 provides details on the data that has to be included in all export declarations on a box by box basis. Each item is flagged at the beginning to show whether the data is required for full, LCP, Supplementary Declaration and/or EXS declarations 1.3 The National Export System (NES) and the Export Control System (ECS) Economic Operator Registration and Identification (EORI) registration number All exporters and other parties involved in international trade need to quote their EORI number. There are some exceptions to this. Further information is available from the EORI Home Page on the HMRC website at Declaration Unique Consignment Reference (DUCR) It is very important that traders create their own UCR number in Box 44 of their export declaration as this is recognised across the EU. The structure of a DUCR is set out in paragraph (See note below on printing the traders DUCR onto the Export Accompanying Document (EAD) Indirect Exports Export Accompanying Document (EAD) The EAD printed from CHIEF (this should not be printed from CHIEF before clearance (permission to progress) has been granted) will show the MRN number and a barcode that can be scanned at the Office of Exit. This closes the indirect ECS movement and informs the Office of Export that the goods have left the EU. Please note that when printing an Export Accompanying Document (EAD) the DUCR number in Box 44 should be printed into Box 7 of the paper EAD Single Transport Contract (STC) For goods travelling under a single transport contact (STC) the exporter or declarant will need to notify Customs and request special treatment by entering an Additional Information (AI) Code (STC99) into Box 44. Declarants should check with their Carrier as to whether STC should be claimed Box 29 Office of Exit for indirect export traders Box 29 (Office of Exit) must be completed with the relevant Office of Exit code from the EU Customs Office List (available on the EUROPA website at hhtp://europa.en.htm For further details on the completion of Box 29 please see paragraph b. 1.4 Export Procedures and types of declaration National Export System (NES) NES is the UK s national export system. Under NES all export entries are processed electronically through the Customs Handling of Import and Export Freight (CHIEF) system Movement Reference Number (MRN) All export declarations are issued with an MRN. This is a key reference generated by CHIEF. The MRN is generated for both direct and indirect exports Office of Export Where the export goods that have been entered onto CHIEF are to leave the EU via another Member State (an indirect export) a message is sent from the Office of Export to the Member State of exit, informing them of the details of the goods that are on their way. On exit from the Member State the Office of Exit they will send an exit result response to the UK to say that the goods have left the EU. This response message is passed back to the trader through CHIEF to facilitate zero rating VAT claims. The outgoing message is triggered by the completion of Box 29 (Office of Exit). All export declarations should be submitted electronically to the Customs Handling of Import and Export Freight (CHIEF) system. For details on how to access CHIEF please see paragraph below Full Export declaration The usual method of providing details of exports is by electronically completing a full export declaration into CHIEF. Details of data requirements for the full declaration can be found in section 1.9. Except in specific circumstances (for details of restricted and controlled goods see volume 1 part 4 of the Tariff) there will be no need to present pre-shipment supporting documents to Customs. N.B. CAP export refund goods must always be declared on a full export declaration Simplified Declaration Procedure (SDP) This procedure allows authorised traders to submit a pre-shipment advice (PSA) containing fewer data elements than a full export declaration at the time of export but should include the safety and security data set out in Annex 30A of Commission Regulation 2454/93. 1 January

3 Under SDP, the pre-shipment advice (PSA) must be followed within 14 days of receiving permission to progress (P2P) by a postshipment supplementary declaration (the SD). All PSAs and supplementary declarations must be submitted electronically. Details of data requirements by box for all types of declaration can be found in section b. Except in specific circumstances (for details of restricted and controlled goods see volume 1 part 4 of the Tariff), there will be no need to present pre-shipment supporting documents to Customs, though they will need to be retained for audit purposes. There are no circumstances when consignments exported under SDP can be declared on the same electronic (C88/ESS) as consignments for which a full declaration is required. prior to their removal to the (air) port. The operators of the premises must maintain an electronic inventory system, which meets customs requirements and submit all declarations (SDP and Full pre-entry) electronically to customs. The following cannot be exported from a DEP: Excise goods Customs warehouse goods Goods declared to LCP Except in specific circumstances (Restricted and controlled goods, see Volume 1 part 4 of the Tariff) there will be no need to present pre-shipment supporting documents to Customs Goods Excluded from SDP, EIDR and DEP VOLUME 3 PART Entry in Declarants Records (EIDR) This procedure allows exporter s goods to be prepared for exportation at a nominated approved inland location, for example their premises or storage warehouse, and declared to customs for any checks/examinations prior to the goods being packed and moved to the frontier. Under EIDR, authorised traders (see paragraph below on how to become authorised), can either make a full export declaration or a Pre-Shipment Advice (PSA) declaration with reduced data followed by a full supplementary declaration within 14 days of the goods receiving permission to progress (P2P). Both full declarations and PSAs should include the safety and security data set out in Annex 30A of Commission Regulation 2454/93. The PSA or full declaration must state the time at which the goods will be available for inspection (Goods available from) and the time at which they wish to release the goods for onward movement to the (air) port (Goods available to). Specific details covering the amount of advance notice and similar matters will be agreed with the customs controlling office at the time of LCP authorisation. Once the goods available to time is reached, CHIEF will automatically arrive the declaration and the goods will either be granted Permission to Progress (P2P) or be selected for further checks or examination. All EIDR declarations must be submitted electronically. Restricted and controlled goods including CAP goods will always require a full declaration before shipment. An EIDR approved operator may only group full declaration consignments as explained in detail at paragraph (Bulk Consignment Reference (UCR) Exit Summary Declaration (EXS) An electronic Export Summary Declaration (EXS) into CHIEF is only required when goods departing the EU are not covered by an export declaration containing safety and security data. They must be submitted to the Customs Office of Exit. An EXS is required in the following circumstances: where an empty container is being returned under a transport contract to the shipper. Where goods have remained in temporary storage for more than 14 days. Where goods have remained in temporary storage less than 14 days but the import safety and security ICS declaration details are unknown or where the destination and/or consignee change. Intra EU Export where goods going to another EU Member State are routed via a 3rd country Designated Export Place (DEP) This facility allows authorised operators to consolidate and clear goods at approved premises considered to be a frontier location Apart from prohibited and restricted goods most goods are eligible for NES simplified procedures. Special arrangements have been made for the export of Common Agricultural Policy (CAP) goods that attract an export refund. Full information on the export of CAP goods is contained in Notice 800 CAP Exports. Exclusions relate mainly to goods already under certain other customs procedures. These are: - Goods controlled by customs under certain Simplified Procedures: Goods exported under a simplified authorisation for Inward Processing (IP), Temporary Admission(TA) or OPR. - ATA Carnets Goods These are excluded as the ATA carnet replaces the export/re-export declaration. To clear inventory linked ports an electronic C21 may be used CHIEF format IECR (For more information on inventory linked locations see section 1.8.3) - Goods moving via the UK under NCTS Goods moving from a UK port of entry to port of export in the UK; and Goods moving under transit documents from another Member State A full list of these goods can be found in Public Notice Application to use Simplified Procedures (SDP and EIDR) TheC&E48form is available online form Gov.uk. Completed forms should be sent to Authorisation and Returns Team, Peter Bennett House, West Park Ring Road, Leed, LS16 6RQ, unless the applicant is a large business in which case it should be sent to their designated Customs and International Trade Tax specialist Other Procedures Export of personal effects that are in free circulation can be declared to CHIEF using CPC Free circulation Low value (LV) goods that are exported in a single consignment and have a total value of less than 800 and a total net weight of less than 1000 kgs can be declared to CHIEF using CPC This CPC must not be used if goods are dutiable or restricted. For goods that were declared for Temporary Admission using the Oral declaration procedure (Form C108/ EU Commission model invento document a C88 declaration is note made. The declaration for re-export should be made by presenting to customs at the office of exit copy 2 of the Form C108 / EU Commission model inventory document that was agreed and certified by customs when the goods were imported, for further information see Notice January

4 VOLUME 3 PART 1 For goods in free circulation on which statistics are not collected (free circulation non Stat goods are listed in Notice 275), can be declared to CHIEF using CPC the fifth and sixth digits shall correspond to the CN chapter to which the goods of the component part belong; and Disaster relief/humanitarian aid The UK practices a recommendation of the World Customs Organisation (WCO) aimed at speeding up the release of relief consignments. The WCO recommendation provides for: official certification of lists of the contents of relief consignments; and the securing of goods under Customs Seals to aid the passage of goods through the territories of other WCO signatory countries and their eventual admission into the destination country. While these types of consignments are routinely expedited by Customs, they must comply with all normal export procedures including Pre entry, export licensing or any other export restrictions and controls Special arrangements for goods and supplies to Offshore installations Special arrangements are available for goods delivered to Non UK Offshore installations. Goods from the UK or other UK installations are to be treated as exports. Offshore installations are deemed as equipment and devices installed in the high sea in order to search for and exploit mineral resources. Non UK installations are deemed as installations of which the natural or legal person responsible for the commercial use is established in a non UK country. These arrangements cannot be used for goods exported that are: subject to export licensing (and equivalent certification); or subject to CAP control requirements; or from registered, entered or licensed premises; or subject to a claim for excise drawback Where special arrangements apply, the electronic C88/ESS must be completed as a normal Pre-Shipment Advice (PSA), but with the specified commodity code (Box 33) as follows: Goods from Chapters 1 to 24 of the Harmonised System Goods from Chapter 27 of the Harmonised System Goods Classified elsewhere Information required: Country code of installation The quantity in net mass The value Simplifications for exports of industrial plant component parts Industrial plant is defined in the statistical legislation as a combination of machines, apparatus, appliances, equipment, instruments and materials which together make up large-scale, stationery units producing goods or providing services. The essential character of the overall product is assigned to the most appropriate commodity within the CN. Component part is defined as a delivery for an industrial plant which is made up of goods which all belong to the same chapter of the CN. Where the overall statistical value of the industrial plant is in excess of 3 million EUR (approximately 2.5 million), exports of component parts may be classified as follows: the first four digits shall be 9880; the seventh and eight digits shall be 0. For quantity, only the net mass is required Arrangements for ships and aircraft stores and supplies Special arrangements are in place for the simplified reporting of the supply of certain goods to non-eu owned vessels and aircraft that are visiting a UK port or airport. These arrangements are for: stores and supplies for the consumption by passengers and crew or for the operation of the engines, machines or other equipment during the journey; and delivered to a non-eu (and non-uk) owned ship or aircraft visiting a UK port or airport. Stores and supplies for the consumption by passengers and crew refers to goods consumed by them, for example, food and drink. Stores and supplies for the operation of engines and machinery refer to goods such as oil and fuel. These arrangements cannot be used for goods exported that are: stores and supplies delivered to vessels and aircraft located in the territory of another country (i.e. outside the UK); durable goods which remain on the vessel or aircraft (e.g. bed linen, TV sets for cabins). For goods eligible to use these arrangements, an electronic export declaration is completed as normal. However, the following simplified codes should be used: Country of Destination The country code QS should be used in Box 17a. Country code QS cannot be used for deliveries to EU (but not UK) owned vessels or aircraft. These deliveries are reported on the Intrastat system using the code QR. Commodity Code: Goods from Chapters 1 to 24; Goods from Chapter 27; or Goods Classified elsewhere The above commodity codes cannot be used for goods subject to CAP Export Refunds or deliveries from Customs or Excise warehouses. In such cases, the actual commodity code must be used. Details of the name and nationality of the vessel or aircraft on which the stores or supplies are loaded or are ultimately destined must be declared in Box 44. Packing lists to support the declaration as ships stores/supplies must also be made available on request by Customs Postal Exports With the exception of goods held under one of the Customs Procedures with Economic Impact (CPEI) and other goods not in free circulation, most postal exports only require the International Postal customs declarations. These are the green label (Form CN22) for letter post and the white label (Form CN23) for parcel post. The following Notices contain information about those exports where an export declaration is required: Notice 143 A Guide to International Postal Users; Notice 200 Temporary Admission; Notice 221 Inward Processing Relief; and Notice 235 Onward Processing Relief. The green or white labels should normally accompany each package, unless they are going to another Member State.(except for packages sent to the special territories listed in of the Tariff). 1 January

5 Packages that contain goods not in free circulation within the EU must also be accompanied by a Yellow Label (Form C1130) if they are being sent to another Member State or to Turkey. You can obtain more information from The Royal Mail International Service Guide or The Parcelforce International, International User Guide, these should be available at any main Post Office. You will need a certificate of posting on Form C&E 132 for goods subject to specific control, for example, goods being exported from a Customs or Excise warehouse. You will also need a certificate of posting to support VAT zero rating. This can be in the form of any one of the following: a certificate of posting issued by the Post Office; Despatch Pack; or a C&E Preference Exports The EU has a number of preferential trade agreements with certain individual countries or groups of countries. These enable goods manufactured in accordance with specified rules to be imported at a nil or lower rate of duty, these agreements are normally reciprocal. Such goods may be exported under cover of a movement certificate EUR1 (or, subject to a value limit, Form EUR2 or Invoice Declaration), on which the exporter declares that the goods meet the conditions required for its issue. When presented the preference document will entitle the goods to be imported at the preferential rate. Further information is available in Notices 827, 828 & 829. Volume 1 Part 7 of the Tariff contains additional information, for example eligible countries REX introduction From 1st January 2017 the EU is implementing REX (Registered Exporter). REX (Registered Exporter) is an EU sponsored registration system that authorises exporters in GSP (General System of Preference) beneficiary countries to issue a self-certificate (known as a statement on origin) for eligible goods to be imported under preference to the EU. The statement on origin replaces the GSP Form A and invoice declaration. REX traders will be issued with a number by HMRC, which they will include on their statements on origin made on their commercial documents such as a delivery note or packing list. These documents may be transmitted and stored electronically. Importers should always be able to obtain the required statement and have it available for presentation if necessary, at the time of release of the goods to free circulation and should no longer have to provide security for the full rate of duty payable because the required proof of origin is not available at the time preference is claimed. Proofs of origin must still be retained for three years from when the goods were released to free circulation. The following UK traders will be able to apply for REX registration from 1 January 2017: UK traders who export materials to GSP beneficiary countries that are used to manufacture products to be imported to the EU (known as bi-lateral cumulation). As of 1st January 2018 EUR1 s will no longer be issued for bi-lateral cumulation with GSP beneficiary countries. UK established re-consignors of GSP goods to other Member States, for the purpose of issuing replacement statements on origin. Customs representatives are not eligible for REX registration. From 1 October 2017 The European Commission will make available via the internet a central database of exporters registered to export under the GSP. UK companies importing under the GSP will be able to consult it prior to importation, to confirm the registration number of their supplier. REX will be phased in for all GSP beneficiary countries from 1 January 2017 to 31 July The Commission will publish details of those countries implementing REX. link to Statement on Origin and completion footnotes in Annex EU Regulation 2015/2447 page 319: Exports from approved warehouses Exports from warehouses approved for Customs warehousing or excise warehousing must be declared using the appropriate Customs Procedure Code (CPC Appendix E) in Box 37. As different CPCs can apply to each type of warehousing, it is essential to insert the correct CPC applicable to the consignment concerned. Further details can be obtained from the Excise & Customs help line ( ) and the following Notices: 232 Customs Warehousing 800 CAP Pre-finance warehousing 197 Excise Warehousing 171 Hydrocarbon Oil: Customs Duty 179 Hydrocarbon Oil: Warehousing, etc 476 Tobacco Products Duty Excise Goods Certain goods which are produced in the UK and liable to excise duty can be exported from registered or entered excise premises without payment of duty. The goods affected by these provisions are wine and made-wine, cider and perry, beer, tobacco products, hydrocarbon oil and methylated spirits. The goods to be exported must be pre-entered on a SAD or NES equivalent indicating the appropriate CPC in Box 37. for tobacco products, a specification of goods must be attached to the pre-shipment declaration giving details of the packages. Further details of the procedures can be obtained from the National Advice Service and the following Notices: Wine and Made Wine 162 Cider and Perry 226 Beer 476 Tobacco Products 179 Hydrocarbon Oil: Warehousing etc Exports subject to claims for excise duty drawback Exports which are the subject of claims to drawback of excise duty must be pre-entered into CHIEF, except for oil companies approved for Netting (Notice 179, Section XII) and exporters approved to schedule their hydrocarbon oil drawback claims (See Notice 172, Section VI), the actual claim for excise duty drawback or repayment must be made by completing a separate claim form. Details of the procedure for claiming excise duty drawback in Notice 207. All of our Notices are available from our website at Exports from Free Zones (Isle of Man only) Exports from Free zones are subject to the same procedures that apply to other exports. VOLUME 3 PART 1 1 January

6 VOLUME 3 PART Temporary exports and re-exports of Temporary Imports Export declarations are required for goods: Re-exported following temporary importation under Inward Processing (IP), Temporary Admission (TA) or any other duty and/or relief scheme; or Re-exported because they are not in accordance with contract (Rejected Imports), or Temporarily exported, for example Outward Processing Relief (OPR). Information about the completion of boxes on an export declaration are given in paragraph Full details of these arrangements are contained in the Notice applicable to the particular procedure. The Notices are: Temporary Admission Temporary Admission temporarily importing non EU Containers and Pallets Temporary Admission temporarily importing non EU Means of Transport Excise Warehoused goods: registered owners and duty representatives Inward Processing 221A - Inward Processing using a simplified authorisation Outward Processing Relief Rejected Imports: Repayment or remission of Duty and Tax Imports 702/9 - VAT imports customs procedures with economic impact end use and free zones 1.5 Manual Procedures All declarations are expected to be made electronically, if you do not have access to CHIEF you should consider arranging for a third party to submit the declaration on your behalf. Very occasionally it may be necessary to use the manual process, for example, someone taking commercial goods with them in their baggage to raise sales for a new company that does not yet have access to CHIEF. Before any goods can be granted Permission to Progress (P2P) and leave the country they must be input to CHIEF. Manual processing is carried out by the National Clearance Hub at Salford. Please note: Manual declarations will be processed according to the Department s Charter Standards. However, they are likely to take longer to be processed than those submitted electronically to CHIEF by or on behalf of the exporter/declarant. 1.6 Unique Consignment Reference (UCR) Numbers The use of a UCR is mandatory for all NES declarations, it is the means by which you and Customs can identify your goods to your records. A DUCR is a reference of up to 35 characters (plus an optional numeric Part identity) allocated by a trader to a consignment of goods and recorded on the relevant customs declaration(s). CHIEF will initially ensure that a DUCR is unique and once it is recorded on CHIEF a DUCR cannot be amended. DUCRs must be included on all Full Export Declarations, C21 customs clearance requests, Exit Summary Declarations and on both Pre-Shipment Advice (PSAs) and Supplementary Declarations submitted by traders authorised for Simplified Procedures. For Simplified Procedures, the DUCR links the pre-shipment advice (PSA) to the Supplementary Declaration(s) and provides an audit trail in the authorised traders records. Linking PSAs to Supplementary Declarations is the only instance where a DUCR can exist more than once. If there is more than one Supplementary Declaration per PSA, the DUCR Part field is used to make the DUCR unique for each shipment under the PSA. The standard format of DUCRs used in the NES is based on the recommended World Customs Organisation draft, that is, up to 35 characters in length in four parts as follows: 1st part % the year the UCR was allocated, for example 5 if allocated in 2015; 2nd part % the country where the UCR was allocated. Typically GB for UK export declarations; 3rd part % the identity of the (authorised) trader as known to Customs. In the UK this will be the EORI, followed by a hyphen 4th part % a unique (within a trader s system) series of characters which a trader devises which provides an audit trail within their commercial accounting systems. This part is restricted to numbers between 0 to 9, upper case letters A to Z or a hyphen - An example of a Declaration UCR based on the above is 5GB ABC1234. Any unused spaces should be left blank, unlike the ARC number, that is, you do not need to include zeros to make the length the full 35 characters. There is an additional field of 4 characters that may be used in conjunction with the DUCR. This field contains the CHECK Letter calculation automatically generated by CHIEF and which may be used to guard against mis-keying. CHIEF does not insist that a Check Letter is input, when a DUCR is used against a movement, but when one is input, it is checked and the DUCR rejected if found not to match that generated at the time of declaration input. The remaining three characters in this field are for the optional input of a Part identity and which allows several export declarations to have the same core Declaration UCR. It is this, in combination with the (up to) 35 character UCR which must be unique. An example of Part identity use would be a large consignment covered by a single DUCR but being exported on say three vessels over a period of weeks or months. Ideally, the DUCR would use a common identifier in the trader s records, but each movement of the goods would have a separate CHIEF declaration, using the same DUCR but designated as Part 001, 002 and 003. DUCRs have been implemented on CHIEF so that WCO UCR standards are compatible with NES, allowing non-uk UCR to be quoted on NES declarations. Please note: For traders authorised for simplified procedures the same Declaration UCR (DUCR) must be supplied on both the PSA and linked supplementary declaration to supply an audit trail into the traders records Master Unique Consignment Reference (MUCR) Consolidation Whereas a Declaration UCR directly relates to an individual CHIEF declaration, Master UCRs are normally used to associate or link several Declaration UCRs. This is used, for example, when a container holds a number of consignments from different exporters, each of whom has a DUCR. Rather than quoting many individual DUCRs for each consignment or consolidators, the inventory systems, can advise CHIEF that each of the Declaration UCRs in the container is associated with a single Master UCR. Master UCRs can be associated with other Master UCRs. Although a Master UCR can be associated with one or many Declaration UCRs a Declaration UCR can only belong to one Master UCR. Association can be done: - at the time of declaration by advising the Declaration UCR and Master UCR on the declaration; - by Authorised traders (such as consolidators and inventory systems) on arrival (anticipated and/or actual) at a Customs controlled location by providing the Declaration UCR and Master UCR in the arrival message; or 1 January

7 - by an explicit association transaction through which one can also; - dis-associate a UCR from a Master UCR; and - associate a Master UCR or Declaration UCR with a (higher level) Master UCR MUCRs have one of the following formats: For Air A: followed by either 3 alpha characters followed by a maximum of 8 numbers Maximum length 13 characters For courier traffic C: Followed by 3 alpha characters Then at least 3 more alphanumeric Courier MUCR must be at least 8 digit in length Other MUCR formats include: GB/iii-s s (GB % Country, the /followed by 3 characters identifying the inventory system and then at least another 5 alpha/numeric characters (Min 12 in total) GB/iiii-s...s (Same as above yet with 4 character inventory reference (Min 13 characters in total) GB/TURN-s...s (GB, followed by the slash, then a valid EORI, hyphen and then at least one alpha/numeric character) Bulk Consignment Reference (Bulk UCR) An export declaration usually covers a single consignment from one exporter however, for groupage consignments an agent/ representative can submit one declaration for consignments for up to 99 different commodities on behalf of up to 99 separate consignors and consignees. The bulk UCR is not supported as a reference by CHIEF, and does not need to be unique, however, the declarants must be able to use this bulk UCR to trace consignments back through their records. Bulk declarations are not permitted for licensable goods, goods on which a CAP refund is being claimed or Inward Processing (IP) goods being re-exported. If the consignor/exporter is the same for all items, Box 2 of the declaration (Consignor/Exporter) must only be declared at the header level. If there is more than one consignor details of each consignee are to be supplied at item level. Freight agents are not to be entered in Box 2 unless they are the owners of the goods or have similar right of disposal over them at the time when the declaration is accepted. If there is only one consignee, the consignee details in Box 8 should be supplied at header level. If there is more than one consignee details of each consignee are to be supplied at item level. There are separate arrangements for Fast Parcel Operators who have been granted approval for MoU status. Further information is available from:- The Express Industry Unit 13th Floor South, Government Buildings, Ty Glas, Llanishen, Cardiff CF14 5FP ExpressIndustryTeamMOUUCardiffTwhmce.gsi.gov.uk 1.7 Other References Economic Operator Registration Identification (EORI) The use of a trader s EORI number is mandatory for almost all export declarations The EORI number consists of a nine digit VAT registration number prefixed with GB (without spaces) plus a suffix of three zeros (please refer to 1.3.4) Unregistered Traders and Private Exporters Traders who are not registered for VAT in the UK (including traders registered in other Member States) but make commercial exports may enter GBUNREG in Box 2 of the export declaration. For all private exports where there is no commercial interest (personal goods) GBPR can be used in Box 2 of the declaration. However, the following conditions will apply: the full name and address of the GBPR individual must be entered into Box 44 (Miscellaneous text box) for personal goods in free circulation CPC can be entered into Box 37 for goods subject to licensing or customs controls (see paragraph and volume 1 part 4 of the Tariff for further details), the appropriate CPC should be entered in Box 37 and the Declarant s EORI number used in Box 2 for goods exported under a Customs Procedure with Economic Impact (CPEI), the appropriate CPEI re-export CPC must be entered in Box 37 CHIEF will not accept the entry unless these mandatory fields are completed as stated above. Please note that export entries entered to GBPR cannot be used as official evidence for VAT zero rating purposes as they are deemed non-commercial exports. 1.8 Processing of Export Declarations Export declarations must be positively cleared by Customs before the goods are allowed to leave the UK. Clearance can only obtained through the provision of a Goods Arrival message that formally enters the goods into Customs Control (Legal Acceptance). Following the input of the Goods Arrival Message the message sender will receive a routing by CHIEF, either holding the goods for examination or documentary checks or giving the goods permission to progress (P2P). (See paragraph for the Data items required in an Arrival message). Please note: It is the message sender s responsibility to disclose the route to the Exporter, Agent and/or Loader, depending on where the declaration was first lodged and by whom. The Goods Departure message is given when the goods leave the UK. This message provides exporters evidence of export for VAT zero-rating and other Customs reliefs, by electronic means for both Customs and the trade, (see paragraph for the Data items required in a Departure message) When are Arrival/Departure messages not required? Goods Arrival Messages LCP Processing Direct Exports Goods that are to be shipped directly to a third country must be re- Arrived and Departed at the frontier [air]port. Indirect Exports That is goods that will exit the EU via another Member State and are covered by an Export Accompanying Document (EAD) (this provides evidence of exit from the EU) do not need to re-arrive at VOLUME 3 PART 1 1 January

8 VOLUME 3 PART 1 the frontier with the exception of Excise Goods or CAP refund goods which must always be re-arrived and Departed at the frontier (that is the [air]port of Departure from the UK) Community System Providers (CSP) The majority of UK exports go through ports/airports and systems run by Community System Providers (CSPs). CSPs operate cargo Inventory Control Systems, at most of the UK s ports and airports, and at a number of Inland locations. These systems can also control the movement of cargo within the port and between remote, inventory linked locations. The Customs export declaration and the cargo are linked by the Inventory Control System using the Unique Consignment Reference number. The various messages produced by the CSP systems provide: The necessary audit links for control Exception reports and cargo accounting mechanisms for (air)port control purposes The two important messages for Customs control are the Goods Arrival Message and the Goods Departure Message as mentioned above. At inventory linked locations these messages will be sent to CHIEF automatically by the CSP Inventory Control Systems Non Inventory Linked Environments (NILE) Non inventory linked ports, docks and wharves (those not operating Inventory Control Systems) must also provide Goods Arrival and Goods Departure Messages to CHIEF, see paragraph The Goods Arrival Message should be sent by the person or company that has physical control of the goods from the time they reach the port. This is usually the responsibility of the Loader. Approved Loaders are issued with CHIEF badges and roles allowing them to send arrival and departure messages to CHIEF via the web (see 1.8.6). The Goods Departure Message should be sent by the Loader within 12 hours of the vessel departing the EU. The Goods Arrival and Goods Departure messages will trigger responses from CHIEF, and these will be recorded as versions of the declaration and create an auditable record of events How are Arrival and Departure messages sent? These messages are submitted to CHIEF using one of the following methods: CSPs Internet Web Forms; Internet using EDIFACT message attachments; XML wrap around EDIFACT messages; Customs CIE facilities (see 1.8.5) The choice of electronic transmission will depend on volume, required speed of response, balanced against costs and other business needs. The CSP route has a high level of functionality and will allow the message sender to view and arrive/depart declarations on-line. Multiple declarations can be arrived and departed in on transmission and response times are immediate. This route is usually part of a much wider (air)port management operation Manual Arrival and Departure Messages If you are unable to provide electronic arrival and/or departure messages you may be permitted to provide a paper declaration C88/ESS (see for further details) and load list. This will contain all the relevant details (including the data elements incorporated within the Goods Arrival Message) together with Form C1601 and must be presented to Customs to be input to CHIEF (within Charter Standards) before we can give Permission to Progress. Details are to be faxed to the NCH. For goods departure information must be supplied using the C1602 within 12 hours of the departure time of the exporting vessel/aircraft. Paper documents will only be accepted by the NCH for input of arrival/departure messages Data items required in a Goods Arrival Message A Goods Arrival Message can be either for an individual consignment declaration UCR (DUCR) or for a consolidation Master UCR (MUCR). The message may also advise of a consolidation associating the DUCR and MUCR. The Arrival Message must contain the following data: Custom Entry reference (EPU Entry Number Date); or Declaration UCR; or Master UCR if appropriate; Goods location code; Box 30 and, where appropriate; Shed identify if one exists; Box 30 Border Force (BF) Anti-Smuggling teams may also need to take action because the goods Arrival Message usually only provides fiscal clearance. Non Inventory linked locations do not have an Anti-Smuggling Net (as provided by CSPs at inventory linked ports) and even though CHIEF may give Permission to Progress it may be that local Anti-Smuggling staff will want to intercept. These arrangements are agreed locally between the Loader and Customs management. If this happens the Anti-Smuggling staff will require the following information be supplied: Port of Origin Port of Destination Country of Destination Arrival of Split Loads/Multiple Deliveries 1. Frontiers Declarations The Goods Arrival Message for frontier clearance establishes the date into Customs control. The exception is CAP goods, where an export declaration has goods split over multiple containers/loads, a Goods Arrival messages can be submitted for each part of the consignment. CAP Goods The rules are different for the export of CAP goods, because the date of acceptance into Customs control determines the refund rate and licence attribution. When an export declaration has CAP goods split over multiple containers/loads, it is a requirement that all of these goods must be available to Custom s satisfaction. This means they must all be onsite at the port/airport, before the Goods Arrival message is entered to CHIEF. If the Goods Arrival message is entered before all the CAP goods are available to Custom s satisfaction, the foods may be delayed for further checking. If all of the declared goods are not onsite before the arrival message is entered the declarant may be subject to Civil Penalty action by HMRC and Administrative Penalty action by the RPA. 2. Inland Declarations (LCP) Consignments under LCP may also be travelling in more than one container/load. It is a requirement that all of the goods must be available at the nominated inland location at the goods available from time. For LCP cleared goods exiting the EU via another Member State no further messaging is required in the UK. However, LCP goods shipping direct to a third country, will require a second Goods Arrival Message to be entered into CHIEF. With the exception of CAP goods, for goods split over multiple containers/ loads the same facility for multiple arrivals is available (see above). 1 January

9 CAP Goods For export declarations with CAP goods split over multiple containers/loads all of these goods must be available to Custom s satisfaction. This means they must all be onsite at the inland location at the goods available from time (when the first Goods Arrival message will be entered to CHIEF) and afterwards all of these goods must be onsite at the port/airport before the second Goods Arrival message is entered to CHIEF. Non complaint LCP CAP traders will be subject to the same penalties as above Data items required in a Goods Departure Message The Goods Departure Message can be either for an individual consignment Declaration UCR (DUCR) or for a consolidation Master UCR (MUCR). For a consolidation, CHIEF will record as departed declarations recorded on the system. Although messages may be received out of the logical sequence of Pre-lodge-Arrival- Departure, it will highlight to Customs as possible non-compliance issues and restrict trader s future use of their CHIEF badges. If a consignment is transported on a number of separate vessels, then departure should be advised repeatedly with the different transport details. The Departure message must contain all of the following data: Declaration UCR, or Master UCR if appropriate; Date of departure; Place of loading Box 27; Transport mode code Box 25; Exporting vessel name Box 21; and Flag code Box 21 Please note: If all of this information is not supplied then the Departure message will be frustrated and the Status of Entry (SOE) code will default to status D indicating that the goods have been removed inland. This may affect your VAT Zero rating Can I submit Arrival and Departure Messages? The Person/Company giving the Goods Arrival and Goods Departure messages must be authorised to do so. In CHIEF terms authorised means someone Customs has given a role which allows the Arrival and Departure message transactions. Without this role you will not be able to input either message. If you require access to CHIEF (to send these massages) you should download an application form PA7, complete it and then return it to Customs for authorisation to be granted. For a more information and detailed technical description of message requirements you can download our Systems Description Document (Trade) and the Technical Interface Document (TIS) from the Customs website at What happens if an export declaration is not Arrived? When data is entered to CHIEF for export but the DUCR is not arrived, Customs will contact the declarant (the person placing the data onto CHIEF) using an automated print (P9) that explains that data needs to be actioned. This P9 print generates automatically 22 days after data has been input to CHIEF. The print is recognised by the declarant under its reference, P9. This print confirms the export reference number and reminds the declarant that the data remains on CHIEF. The P9 print also gives the legislation governing Arrivals within NES (Statutory Instrument 2003 No 467) and the possible imposition of Customs Civil Penalties (CCPs) should action not be taken. It is important that data queried under the P9 procedure is correctly processed as routine cancellation/deletion may prevent VAT zero rating, CAP refunds or gain export Reliefs. Declarants that fail to take action will see their entry data automatically deleted from CHIEF after a further 38 days What action should be taken to resolve P9 generated enquiries Non Arrived exports? Customs expect the declarant to fully investigate whether: - the export is still to take place, or - the goods have physically been exported, and - ensure that these details are then confirmed through to CHIEF. 1. Where the export has still to take place Consideration should be given to extending the life of the data to avoid systems deletion. This can be done via CHIEF format AEXD. Insert the EPU, Entry Number and Date, or DUCR in the relevant fields and the reason for amendment in the plain text Box ( Receipt of P9 ). PARA must be in the box in the bottom right hand corner of the screen, pressing the return key should bring the entry data as input onto the screen. If there is an expected date of export entered, which is earlier than the amendment, this date should be amended or removed. To achieve an extension in time this data should then be committed to CHIEF. 2. Where export has actually taken place The declarant should confirm that no duplicate set of data has been transmitted. If it has a request for cancellation of the original data (that is under P9 query 0 should be made using CHIEF format XTCE. If no duplicate entry has been input the process described above, to extend the life of the data, should be followed. The declarant should then contact Customs at the place of export. 3. Where goods are not going to be exported The declarant should make a request for cancellation of the original data (that is under P9 query) using CHIEF format XTCE. Presentation to Border Force (BF) In the event of goods being shipped without permission to progress an application should be made to BF at the place of export. BF will consider the control aspect and the means by which the arrival message should have been generated, for example inventory, web loader or CIE by Customs. Application to process data that has generated a P9 report for goods that have been shipped without Permission to Progress must include the following:- Details of the Export DUCR Export Entry reference number, for example EPU- Number-date Letter of explanation (reason for non-arrival to be established by the declarant not Customs) C1603 detailing the export goods in question and references, Certified copy of Bill of Lading or Airway Bill Additional papers may be called for at the discretion of the NCH where doubts exist over the actual export, arrival will not be performed until the NCH are fully satisfied that the actual export took place. If the NCH are satisfied that the goods have been shipped, an arrival message of the Data/DUCR will be input to CHIEF by them. Following arrival, the declarant or the exporter should retain evidence of export for future audits as under no circumstances should a Departure message be input. All P9 arrivals will receive an Assumed Departure message instead. These exports will require commercial documentation to support a claim for VAT zero rating or a duty relief Merchandise in Baggage (MiB) Goods of a commercial or business nature which are exported as accompanied baggage are referred to as Merchandise in Baggage (MIB). Passengers leaving the EU with MIB are advised to submit an export declaration well before their schedule departure. VOLUME 3 PART 1 1 January