In the year ending March 2022, HMRC issued 89,000 inaccuracy penalties to businesses and individuals, an increase of 80% from the previous year

HMRC suggest that more than £ 25 million of UK customs duty has been under-declared on goods imported from the EU, misdescribed as EU origin, in year ending April 2022.  For goods manufactured or grown in the EU, there is no UK customs duty under the Free Trade Brexit agreement. However if goods are manufactured in the Rest of the World, shipped to the EU and then subsequently moved to the UK without any processes in the EU, the “country of origin” (COO) remains where manufactured.  If the UK tariff has a positive rate of duty on the HS commodity code, customs duty will be due.  It is important therefore that UK importers obtain documentation from their overseas suppliers to accurately determine the COO, to remove the risk of HMRC assessments. 

For advice and assistance speak to the James Cowper Kreston VAT team.