Prepare for Customs Audit

Prepare for Customs Audit – Customs declarations like any other type of return to Revenue are subject to audit. Up until now customs audits in Ireland, have not been front and centre for the Revenue Commissioners. When the Brexit dust settles and new trade practices emerge in the post-Brexit regime, compliance will become an everyday concern.  It will not be enough to process your customs declarations in-house or by an agent, and wipe your hands of the transaction.

Customs

declaration data must be retained along with commercial records and various

licences. If Revenue want to inspect a company’s compliance, they may first

conduct internal aspect queries without that company’s knowledge. If they wish

to pursue their enquires, then Revenue will provide three weeks’ notice in

writing to the company before a full customs audit.  During the audit Revenue will require full

cooperation from you and will expect full access to shipment documentation.

For a more

comprehensive account of what to expect if you have received this notification

please follow the link to the relevant Revenue webpage. https://www.revenue.ie/en/customs-traders-and-agents/customs-audit/what-happens-if-you-are-selected-for-audit.aspx

You must also allow Revenue staff to inspect

your:

• _business premises_
• _commercial records whether_
• _manufacturing process (where applicable)_
• _certain items of your plant or_
• _Sales and purchase orders,_
• _Sales and purchase ledgers._
• _Journals._
• _Stock records._
• _Import and export licenses._
• _Import and export approvals._

electronic or not

• _manufacturing process (where applicable)_
• _certain items of your plant or_
• _Sales and purchase orders,_
• _Sales and purchase ledgers._
• _Journals._
• _Stock records._
• _Import and export licenses._
• _Import and export approvals._

stock.

The following should also be made available to the auditor:

• _Sales and purchase orders,_
• _Sales and purchase ledgers._
• _Journals._
• _Stock records._
• _Import and export licenses._
• _Import and export approvals._
• Failure
• Late

invoices and delivery notes.

• _Sales and purchase ledgers._
• _Journals._
• _Stock records._
• _Import and export licenses._
• _Import and export approvals._
• Failure
• Late
• Submission

If the

results of an audit are not favourable, then you do have the right to appeal.

Solicitors McMahon Legal have given a concise account of the customs audit

process and have provided information on the appeals process.

McMahon

Legal (Brexit and Irish Guide)

http://brexitlegal.ie/customs-audit/

Prepare for Customs Audit – What are the time limits for paying duties you owe?

If you owe money as

a result of the audit, you have ten days from the date of issue of the written

notification to pay. Interest may also be applied on any customs debt

established in a post clearance audit.

If you are

dissatisfied with the auditor’s conclusions, what can you do?

You should explain

your position to the auditor. You have the right to be heard (right of reply)

before an adverse decision is taken in relation to the payment of Customs Duty.

If disagreement still exists, you have the right to appeal the decision.

Information on the

customs appeal procedures is available in customs appeals .

Customs

infringements, fines and penalties:

• Failure
• Late
• Submission
• Not
• Failure
• Documentation
• If
• Freight
• It
• Supplier
• EORI
• Customs
• Customs
• Customs
• Deferred
• SAD
• Registration
• Origin/Simplified

to submit a declaration (penalty €2,000)

• Late
• Submission
• Not
• Failure
• Documentation
• If
• Freight
• It
• Supplier
• EORI
• Customs
• Customs
• Customs
• Deferred
• SAD
• Registration
• Origin/Simplified

submission of a declaration (penalty €250 for each month for which a

declaration is outstanding, subject to a max.

• Submission
• Not
• Failure
• Documentation
• If
• Freight
• It
• Supplier
• EORI
• Customs
• Customs
• Customs
• Deferred
• SAD
• Registration
• Origin/Simplified

of an incorrect or incomplete declaration (penalty of €250)

• Not
• Failure
• Documentation
• If
• Freight
• It
• Supplier
• EORI
• Customs
• Customs
• Customs
• Deferred
• SAD
• Registration
• Origin/Simplified

being in possession of documentation necessary to support an electronic

declaration (penalty of €250)

• Not
• Failure
• Documentation
• If
• Freight
• It
• Supplier
• EORI
• Customs
• Customs
• Customs
• Deferred
• SAD
• Registration
• Origin/Simplified

to comply with any other provision of the Union Customs Code (penalty €250)

Customs record

keeping

• Documentation
• If
• Freight
• It
• Supplier
• EORI
• Customs
• Customs
• Customs
• Deferred
• SAD
• Registration
• Origin/Simplified

and record keeping relating to shipments of all materials across international

borders must be retained for 7 years.

documentation is off-site then it should be made available for audit with 24

hours.

forwarders or customs agents must be integrated into your record keeping

procedure

is advisable to conduct internal audits with freight forwarders to ensure

correct procedures are followed.

Customs

gap analysis

/ customer contracts

classification – BTI applications

agent/broker requirement

standard operating procedures

payments – Ireland TAN A/C – UK DAN A/C

instructions to customs agents

HMRC – EORI GB – UK VAT

procedures application

Prepare for Customs Audit – Contact Custran click here