Indirect Representation
If your business imports goods into Great Britain, you might not handle customs declarations yourself. Instead, you may appoint an agent to act on your behalf. In UK customs, this setup can be classed as direct or indirect representation. Understanding the difference helps avoid liability issues and ensures your operations stay compliant with HMRC procedures.
This article outlines how indirect representation works, who is responsible for what, and what to agree with your customs agent in advance.
Indirect Representation
What Is Indirect Representation?
In this arrangement, the customs agent makes the declaration in their own name, but on behalf of the importer. The declaration includes code 3 in box 14 to show this.
Both the agent and the importer are jointly and severally liable for any customs debt. That means HMRC can recover payment from either party if something goes wrong. This is different from direct representation, where the importer is usually the only party liable.
Common Scenarios for Indirect Representation
This form of representation is typically used when goods are placed under special customs procedures such as:
- Inward processing
- Customs warehousing
- Temporary admission
If the agent is the holder of the relevant authorisation, they are responsible for any customs debt that arises if procedures are not completed properly or if goods are removed from customs control without approval.
Who Is Responsible
This setup involves shared responsibility between agent and importer.
Agent responsibilities include
- Making the customs declaration
- Being based in the UK
- Using sub-agents only if allowed in the agreement
- Taking on liability alongside the importer
Importer responsibilities include
- Agreeing the terms of representation in writing
- Confirming if sub-agents can be used
- Deciding whether to use their own duty deferment account or the agent’s
If a sub-agent is appointed without being authorised in writing, they may be seen as acting in their own name and become fully liable for any customs debt.
The Role of a Written Agreement
A clear written agreement between the agent and the importer is essential. It should confirm the type of representation, how duties will be paid, and whether sub-agents are permitted.
When these details are agreed from the start, it reduces the risk of confusion and ensures each party knows their obligations. This is especially important when special customs procedures or simplified declarations are being used.
How Customs Complete Can Help
At Customs Complete, we support importers in Great Britain with customs procedures. We make sure responsibilities are clear and declarations are handled correctly to fit your specific situation.
