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If you’re an importer of goods, you may have heard the term CFSP, read on to find out what exactly CFSP means and how it may benefit your business.
Meaning of Customs Freight Simplified Procedures (CFSP)
Customs Freight Simplified Procedures, also known by its acronym CFSP, was introduced by HM Customs and Excise in 2001 as an optional scheme to make non-EU import and customs warehouse procedures more straightforward and more flexible.
While the use of CFSP isn’t compulsory, it does offer multiple benefits to importers of goods from non-EU countries including:
- Faster release of goods from Customs at the (air)port or authorised locations inland, subject to anti-smuggling checks
- You can use CFSP in combination with normal entry and warehouse procedures to suit the needs of your business
- Improved cash flow – the duty and Import VAT do not need to be paid until the Supplementary Declaration (SD) is submitted, which must be done within the same month as withdrawal from the Customs Warehouse.
- Electronic submission of frontier declarations and all Supplementary Declarations
Types of CFSP authorisation
There are two types of CFSP authorisation:
Entry in the Declarant’s records (EIDR)
Entry in the Declarant’s records (EIDR), formerly known as Local Clearance Procedure (LCP), allows you to enter goods to a customs procedure without the need to provide a full customs declaration at the point of release. It means operators can better manage cash-flow by allowing them to provide fiscal data at a later date.
It also removes the requirement for a supplementary declaration when entering goods to a customs warehouse. However, there will still need to be a way of collecting trade statistics. EIDR is a 2-part declaration process, the initial entry in the records followed by a supplementary declaration to be submitted within one calendar month of withdrawal.
EIDR can be used to enter goods to:
- Free circulation
- Customs warehousing
- Inward Processing
- Outward Processing
- End use
- Temporary admission
- Export
- Re-export
EIDR cannot be used to enter goods for:
- Temporary storage
- Onward Supply Relief
- Transit
- Any special procedure where an INF form is required
- Low-value import procedures (LVBI replacement)
- Pre-departure declarations, indirect exports and exports of excise goods
Simplified Declaration Procedure (SDP)
Like EIDR, Simplified Declaration Procedure (SDP) allows you to enter goods to a customs procedure without the need to provide a full customs declaration at the point of release.
SDP also removes the requirement for a supplementary declaration when entering goods to low-value imports (LVBI replacement) or OSR. These Simplified Frontier Declarations have an increased data set which means a supplementary declaration is not needed for these goods.
SDP can be used to enter goods to:
- Free circulation
- Customs warehousing
- Inward Processing
- Outward Processing
- End use
- Temporary admission
- Export
- Re-export
- Low-value import procedures (LVBI replacement)
- Onward Supply Relief on removal from customs warehousing
This information has been taken from the Union Customs Code on the Gov.uk website. Please refer to this for further information.
What goods are eligible for CFSP?
The majority of imported third country goods will be eligible for CFSP; However, there are a few exceptions. These include:
- Hydrocarbon Oils
- Goods controlled by customs under certain simplified authorisation procedures
- ATA carnet goods
- Any goods removed from a customs warehouse that are exported
- Non-commercial imports and personal effects subject to C3 declarations
- Goods imported or dispatched from North Korea
For more information on exclusions, please visit section 13 of HMRC Notice 760.
There are also some Customs Procedures Codes (CPCs) which, because of frontier operational procedures, are excluded from CFSP. Details of excluded CPCs can be found on the HMRC CFSP web page.
Who’s eligible for CFSP?
To be eligible for CFSP, you have to satisfy a number of criteria and comply with any additional criteria for the procedure(s) you intend to use. For the full list, please refer to section 14 of the HMRC Notice 760. Examples include:
- Having a good record of compliance with all customs related requirements including Intrastat submissions, VAT returns, duty deferment and so on
- Maintaining a regular pattern of third-country declarations against your Economic Operator Registration Identification (EORI) number
- Maintaining a set of documented procedures covering controls and processes within your business
- Complying with all the relevant provisions as laid down in EU and UK Customs legislation
As an authorised trader to use CFSP, you’ll get a speedier release of goods from customs, and you’ll improve efficiencies by sending declarations electronically, not forgetting the cash flow benefits thanks to delaying your duty or import VAT payments until the supplementary declaration has been submitted.
You can represent yourself and make CFSP declarations on your own behalf, or you can use a third party, such as a nominated Customs Agent with CFSP authorisation, to make declarations for you.
Self-representation
Self-representation is when the importer is authorised for CFSP and makes declarations in their own name and on their own behalf without using the services of a third party to submit declarations.
Direct representation
Direct representation is where a third party (such as a Customs Agent) acts in the name of and on behalf of the authorised importer. The authorised importer is responsible for any Customs debt.
Indirect representation
Indirect representation is when the authorised third party (such as a Customs Agent) acts in their own name on behalf of the importer, however, in this case, the third party jointly and severally liable with the importer for any Customs debt.
Helping you make sense of CFSP
At John Good, we’re an authorised Customs Agent and submit CFSP declarations on behalf of our customers using the Customs Declaration Service. As your representative, we’ll maintain a full audit trail of your declarations and help you make sense of CFSP and anything else relating to customs and documentation. We can represent our customers either directly or indirectly depending on your requirements.
As an AEO (Authorised Economic Operator), you can be sure our customs controls and procedures are efficient and fully compliant, giving you complete peace of mind. Our customs experts are happy to advise you and are ready to answer any customs questions. Please contact us at sales@goodlogisticsgroup.com
References for further reading
The Union Customs Code – GOV.UK. https://www.gov.uk/topic/business-tax/import-export
HMRC Notice 760: Customs Freight Simplified Procedures – GOV.UK
https://www.gov.uk/government/publications/notice-760-customs-freight-simplified-procedures/vat-notice-760-customs-freight-simplified-procedures
Customs Freight Simplified Procedures: excluded procedure codes – GOV.UK
https://www.gov.uk/guidance/customs-freight-simplified-procedures-excluded-procedure-codes