Customs Inspections: What They Look Like and How to Prepare

Enlarge

What is a customs inspection and who carries it out?

A customs inspection is any action by a customs authority to check whether the goods and the data in the declaration comply with the rules. Under Article 46 of the Union Customs Code (Regulation 952/2013) it may consist in particular of examining goods, taking samples, verifying the accuracy and completeness of the information in the declaration, checking the authenticity of documents, examining accounts and other records, and inspecting means of transport.

In Poland inspections are carried out by the National Revenue Administration (KAS); in the United Kingdom, by Border Force and HMRC. Inspections other than random ones are based mainly on risk analysis, so a carefully completed declaration and consistent documents genuinely reduce the chance that your shipment will be held.

Types of customs inspection

1. Documentary check

The authority checks the declaration and the supporting documents, and may also request other documents (Article 188(a) and (b) UCC). It checks that the invoice, transport document, tariff code, value and origin match the data in the declaration. We describe the differences between documentary and physical checks separately in the article documentary vs physical checks.

2. Physical check (examination of goods)

The customs authority may examine the goods and take samples for analysis (Article 188(c) and (d) UCC). If only part of the goods is examined, the result is taken to apply to all goods covered by the same declaration; however, the declarant may request a further examination if they consider the result not to be representative (Article 190 UCC).

3. Post-clearance check

After the goods have been released, customs authorities may verify the declaration and documents and inspect the accounts and records relating to the commercial operations involving the goods, including at the premises of a representative or of any other person commercially involved in the transaction (Article 48 UCC). For details, see our separate guide post-clearance customs audit: HMRC compliance check and KAS.

Customs inspections in Great Britain (Border Force, HMRC, Inland Border Facility)

According to the GOV.UK guidance on the goods movement reference (GMR), a haulier should use the GMR in the "check if you need to report for an inspection" service to find out whether the goods have been held. Further rules:

• on arrival at the Port of Dover or Eurotunnel, checks are carried out at the Inland Border Facility;
• at other locations that use GVMS, if the goods have been held, you must go to the inspection point at or near the port;
• Border Force officers may also stop a vehicle at the port and inspect the vehicle or its load; if you are given an instruction, you must still report to the Inland Border Facility, travelling there directly, and the goods must be in the same condition as when they were brought in;
• GOV.UK warns that failing to follow HMRC's instructions can result in a penalty of up to £2,500.

A practical description of the steps after arrival is in the article inspection after arriving in Great Britain: when to report, and the GMR is covered in the guide GMR and GVMS: how to get a number.

Customs inspections in Poland and the EU (KAS)

In the EU, customs authorities use the same inspection powers that derive from the Union Customs Code. In addition, where other authorities also carry out checks (for example, to verify prohibitions and restrictions), customs authorities seek to ensure that they take place at the same time and place, with customs acting as coordinator (Article 47 UCC).

After clearance in Poland, a customs and tax inspection may be carried out under the Act on the National Revenue Administration (the KAS Act, in Polish). It is opened ex officio on the basis of an authorisation, and the date of opening is the day on which that authorisation is served (Article 62 of the KAS Act). An inspection in the area of customs law ends with a report, to which objections or explanations may be submitted within 14 days (Article 84(1) and (4) of the KAS Act in conjunction with Article 291 of the Tax Ordinance); an inspection in the area of tax law ends with an inspection result, after which a return or a correction may be submitted within 14 days (Article 82). For details, see the article post-clearance customs audit.

Your rights and obligations during an inspection

• Right to be present. The declarant has the right to be present or represented when goods are examined and samples are taken. Where there are justified grounds, the authority may require the declarant or their representative to be present or to provide assistance with the examination (Article 189(2) UCC).
• Costs of examination. The transport of goods to the place of examination and the operations required during it are carried out by the declarant or under their responsibility, and the costs are borne by the declarant (Article 189(1) UCC).
• Samples. Where samples have been taken in accordance with the rules, the authority is not liable for compensation in that respect but bears the costs of their analysis (Article 189(3) UCC).
• Keeping documents. In the EU, documents and information must be kept for at least 3 years (Article 51 UCC); GOV.UK requires records relating to goods declared to HMRC to be kept for 4 years (Archiving your trade documents).

What to prepare so that the inspection goes smoothly

1. A commercial invoice consistent with the declared value and description of the goods.
2. A transport document (CMR, AWB, bill of lading) and reference numbers for the movement, such as the GMR.
3. An EORI number - see how to get an EORI number.
4. A tariff code consistent with the description of the goods - see how to get an HS code.
5. Proof of origin, if you are claiming a customs preference.
6. Permits, licences and certificates where the goods are subject to prohibitions or restrictions (for example, health or phytosanitary certificates).
7. A contact person - you or a representative who can be present at the examination and answer questions.

Consignments with a high invoice value are covered in importing high-value goods.

You will find a detailed list of the document errors that most often lead to goods being held in the article customs document errors and goods held at the border. It is also good practice to review your documents before loading: a mismatch in value, code or origin is a typical reason for a more in-depth inspection.

What to do if your goods are held

1. Establish the reason and the place of inspection. At the British border, use the GMR in the "check if you need to report for an inspection" service to see whether the goods have been held, and follow HMRC's instructions on where the inspection will take place.
2. Do not move the goods on your own and do not alter their condition; go directly where you have been told to.
3. Gather your documents (invoice, transport document, MRN/GMR, proof of origin, permits) and send them to your customs agent.
4. Fill in any gaps when the authority asks you to; missing documentation prolongs the delay.
5. Do not understate or amend data "quietly"; knowingly misleading the authority can result in liability (see customs penalties for businesses).

You will find fuller instructions in the guide what to do if customs control holds your goods.

How to avoid problems, and where to get support

Not every inspection can be avoided, because the authorities may also carry out random checks. You can, however, reduce the risk of your goods being held: declare the true value, make sure your documents match the declaration, and nominate a person to liaise with the authority. Support from a customs agent registered in CDS (UK EORI number) means that the declaration will be submitted by people who know the procedures and, if goods are examined, someone can represent your company.

Related articles on customs inspections

• Customs inspection: how to prepare - documents, declaration data and record-keeping.
• Post-clearance customs audit - KAS customs and tax inspection and HMRC compliance checks.
• What to do if customs control holds your goods - steps after goods are held.

Frequently asked questions