What is customs?

HMRCgovuk

7 Sept 202002:01

Summary

TLDRCustoms, like HMRC, regulates the movement of goods across borders, ensuring compliance with restrictions and collecting taxes. For UK-bound goods, customs clearance verifies legality and calculates duties based on a declaration form detailing the goods' value and description. This process, crucial since January 1, 2021, for goods between Great Britain and the EU, is often managed by agents due to its complexity. For guidance, HMRC offers support via GOV.UK.

Takeaways

🛃 Customs is an organization like HMRC that controls the flow of goods into and out of a country and collects taxes on them.
🚢 Goods moving in and out of the UK require customs clearance to ensure they are not restricted or prohibited.
💷 Customs checks are conducted to ensure the correct amount of tax and duty is paid on goods entering the UK.
📋 The customs declaration form is essential for providing information about the goods being transported, including value and description.
💻 Customs declaration forms are typically completed electronically and are used to calculate tax and duty based on various factors.
🔍 Customs declarations include checks for restricted goods and determine if further inspections or actions are necessary.
🏢 Most businesses hire agents to handle customs declarations due to their complexity.
📅 From January 1, 2021, new customs rules apply to goods sent between Great Britain and the EU.
🔗 For more information and support, businesses can sign up for HMRC's help and support emails and visit GOV.UK.

Q & A

What is the role of a customs organization like HMRC?
-A customs organization like HMRC is responsible for controlling the flow of goods in and out of a country and collecting any taxes owed on those goods.
Why is customs clearance necessary for goods moving in and out of the UK?
-Customs clearance is necessary to ensure that goods are not restricted or prohibited and to verify that the correct amount of tax and duty is paid on goods coming into the UK.
What information does a customs declaration form typically provide?
-A customs declaration form typically provides information about the value and description of the goods being transported, which is used for clearance purposes.
How is the customs declaration form usually completed?
-The customs declaration form is usually completed electronically.
What factors are considered when calculating the amount of tax and duty owed on goods?
-The amount of tax and duty owed is calculated based on factors such as the type and quantity of goods, the mode of transportation, the value of the goods, and any license costs.
What checks are carried out during the customs process?
-During the customs process, checks are carried out to determine if goods are restricted, require further checks, or are banned products.
Why do most businesses hire an agent to deal with customs?
-Most businesses hire an agent to deal with customs because customs declarations are complicated and require expertise to ensure compliance with regulations.
From which date do the new customs rules apply to goods sent between Great Britain and the EU?
-The new customs rules began to apply to goods sent between Great Britain and the EU from 1st January 2021.
How can one sign up for HMRC's help and support emails and find more information?
-One can sign up for HMRC's help and support emails and find more information by visiting GOV.UK.
What is the purpose of the tax and duty calculations in the customs process?
-The purpose of tax and duty calculations in the customs process is to ensure that the correct amount of tax and duty is paid on imported goods, which is based on the assessed value and other relevant factors.
What is the significance of the electronic completion of the customs declaration form?
-The significance of electronic completion of the customs declaration form is to streamline the process, reduce errors, and facilitate faster clearance of goods.

Outlines

00:00

🛃 Understanding Customs Clearance

Customs is an organization like HMRC that manages the movement of goods into and out of a country, ensuring they are not restricted or prohibited, and collecting taxes owed. For the UK, customs clearance involves checking goods to ensure the correct tax and duty is paid. The customs declaration form, usually completed electronically, provides necessary information for clearance, including the value and description of goods, and is used to calculate taxes and duties based on various factors. Businesses often hire agents to handle these complex processes. From January 1, 2021, these rules apply to goods sent between Great Britain and the EU. For more information and support, one can visit GOV.UK.

Mindmap

Keywords

💡Customs

Customs refers to the government agency, such as HMRC in the UK, that oversees and regulates the import and export of goods across a country's borders. This includes collecting taxes and duties on these goods. In the video, customs is central to the theme as it explains the role of this organization in ensuring that goods moving in and out of the UK are checked for compliance with regulations and that the correct taxes and duties are paid.

💡Customs Clearance

Customs clearance is the process through which goods are inspected and approved by customs authorities to ensure they meet legal requirements for import or export. The video emphasizes the necessity of this process for goods entering the UK, highlighting that it verifies whether items are restricted or prohibited and ensures the correct taxes and duties are paid.

💡Goods

Goods in this context refers to the items or products that are being transported across international borders for trade or personal use. The video discusses how these goods require customs clearance and how they are subject to taxes and duties, making 'goods' a fundamental concept for understanding the video's message about international trade and regulation.

💡Tax

Tax, as mentioned in the video, is the mandatory financial charge levied by a government on business transactions and imports. It is a key aspect of customs operations, as the video explains that customs authorities are responsible for collecting taxes owed on goods coming into the UK.

💡Duty

Duty is a type of tax imposed on the import or export of goods. The video script discusses how the correct amount of duty must be paid on goods entering the UK, emphasizing the role of customs in assessing and collecting these fees.

💡Customs Declaration Form

The customs declaration form is a document that provides necessary information about the goods being transported, such as their value and description. The video explains that this form is typically completed electronically and is crucial for calculating taxes and duties, as well as for determining if further checks or restrictions apply to the goods.

💡Electronically

Electronically, as used in the video, refers to the method of completing and submitting the customs declaration form using digital means rather than on paper. This term is significant as it illustrates the modernization and efficiency of customs processes, making it easier for businesses and individuals to comply with regulations.

💡Type and Quantity of Goods

The type and quantity of goods are factors considered by customs authorities when assessing taxes and duties. The video script mentions that these factors, along with the value of the goods and the mode of transportation, are used to calculate the amount of tax and duty owed.

💡Licence Costs

Licence costs are fees required for certain goods that may need special permits or licenses for import or export. The video script includes licence costs as part of the factors considered in the customs declaration process, indicating that they can affect the total amount of tax and duty that must be paid.

💡Agent

An agent, in the context of the video, is a professional who is hired by businesses to handle customs declarations and other related procedures. The video suggests that due to the complexity of customs declarations, it is recommended to engage an agent to ensure compliance with customs regulations.

💡Great Britain and the EU

The video script specifically mentions that from January 1, 2021, the customs rules will apply to goods sent between Great Britain and the European Union. This highlights the changing landscape of international trade regulations and the importance of understanding how these changes affect the movement of goods between these regions.

Highlights

‘Customs’ refers to an organization like HMRC, which controls the flow of goods across a country's borders.

Customs organizations also collect taxes owed on imported and exported goods.

Goods moving in and out of the UK require customs clearance to ensure they are not restricted or prohibited.

Customs clearance checks ensure the correct amount of tax and duty is paid on goods entering the UK.

The customs declaration form is essential for providing information needed for goods clearance.

The customs declaration form is typically completed electronically and shows the value and description of goods.

The form is used to calculate tax and duty based on the type, quantity, and value of goods, among other factors.

Customs checks determine if goods are restricted and require further inspection or are banned.

Most businesses hire agents to handle customs declarations due to their complexity.

Hiring a professional for customs declarations is recommended to ensure compliance and accuracy.

From 1st January 2021, new customs rules apply to goods sent between Great Britain and the EU.

HMRC offers help and support emails for businesses dealing with customs procedures.

For more information and to sign up for HMRC's support, visit GOV.UK.