What is customs?

Summary

Customs, 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.