How Does Direct Representation Work?

What direct representation means

Direct representation means the customs agency lodges the declaration in the name and on behalf of the importer or exporter (in EU law: Article 18 of the Union Customs Code). The declaration is the client's, and the client is responsible for its accuracy and for the amounts due. Under indirect representation the agency acts in its own name but on behalf of the client, and is jointly liable with them for the customs debt – see How indirect representation works and Direct and indirect customs representation – differences and liability.

The type of representation is stated in the declaration (in the representative status code) and in the instruction to the agent. HMRC guidance requires the written instruction to show whether the agent acts directly or indirectly, and a representative cannot act for you without your written authority (gov.uk – Appoint someone to deal with customs on your behalf). In the EU a representative must state that it acts as a representative and hold authority; otherwise it is deemed to act in its own name (Articles 18–19 UCC).

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Who is responsible for what

Under direct representation you, as importer or exporter, are responsible for the truth of the data in the declaration, the customs value, the classification and the proofs of origin. HMRC guidance reminds you that whoever you appoint, you remain responsible for due diligence on your declarations, and that the extent of the agent's liability also depends on your commercial agreement. HMRC also states that a direct representative is not jointly liable in certain circumstances. The agent is primarily responsible for performing the commissioned service properly. It is therefore best to put the scope of the engagement and the split of roles in writing.

What to prepare for the declaration

• a power of attorney stating direct representation,
• the client's EORI number – a business importer or exporter needs its own EORI in the country of clearance (EORI in the EU, EORI in the UK); for one-off declarations by private individuals it is usually not needed,
• a commercial invoice, a transport document (CMR, B/L or AWB) and a packing list,
• proof of origin if the client wants a preferential rate (statement on origin and REX),
• any additional permits or certificates for regulated goods.

How the declaration works step by step

1. The client provides the full set of documents and signs the power of attorney.
2. The agency determines the tariff code and customs value (how to determine it).
3. Before the goods arrive, the security declaration is lodged: in the UK an ENS in Safety and Security GB, and on entry into the EU an ENS in ICS2.
4. The agency lodges the customs declaration: in the UK in CDS, in Poland in PUESC (AIS for imports, AES for exports).
5. The customs authority releases the goods, asks for documents or inspects the consignment (documentary and physical checks); after release the client receives confirmation.

If a declaration contains an error, it must be corrected – the rules are in Amending or invalidating a customs declaration, and the consequences of errors in Customs penalties for businesses.

Record keeping

In the UK, import and export declarations and related documents must be kept for at least 4 years, and VAT records for at least 6 years (gov.uk – Archiving your trade documents). In the EU customs documents are kept for at least 3 years (Article 51 UCC), and tax records in Poland are usually kept longer. If you use an agent, remember that you are responsible for the information it gave the authorities on your behalf.

Easy Clearance specialises in import and export to the UK. Want to know whether direct representation is right for you? Get in touch with us.

Frequently asked questions