The UK customs landscape is defining a new standard of professionalism with PAS 41201. Introduced by the BSI Group and uniquely sponsored by His Majesty’s Revenue and Customs (HMRC), this Publicly Available Specification (PAS) defines a performance standard for the various types of customs intermediaries (freight forwarders, customs agents, and warehouse providers).
This new benchmark is a direct response to the urgent need for consistency following major trade shifts and the post-EU Exit surge in providers, which has led to significant compliance problems for traders. The government’s sponsorship signals that this is likely to become the expected way of working.
PAS 41201 requires intermediaries to meet defined standards in respect of: Due Diligence checks, Continuing Professional Development (CPD), robust Systems and Standard Operating Procedures (SOPs), transparent Complaints Resolution, and overall Transparency to their customers and HMRC alike.
Our involvement
With over 40 years of experience, we at George Baker Shipping have long advocated for clarity and standardisation, so we were proud and enthusiastic to be selected by HMRC to be part of the steering group alongside representative from industry trade groups such as BIFA and AICES, consultants such as IoE and CILT, and representatives from large trading companies such as River Island and GKN.
A New Mandate for Traders
For traders-the importers and exporters who rely on these agents-PAS 41201 is a genuine game-changer for customs risk management. In the modern era, HMRC is increasingly shifting its compliance management to an audit-based model, moving away from raising queries on individual transactions and instead scrutinizing the whole scope of a trader’s activity. This approach can cause a recurring error to go unnoticed for a long time, snowballing a relatively minor problem into a major one.
Given that legal liability for duties and penalties rests with the trader, selecting a compliant partner is paramount. A compliant intermediary provides strong assurance that the partner adheres to formalized processes, significantly increasing the likelihood that declarations are completed correctly, reducing the risk of an aggregated demand impacting your business. Not only will traders feel more certain that they have paid the right amount of tax themselves, but PAS intermediaries will be expected to challenge those who attempt to avoid the correct payment of duties and taxes, making a fairer trading environment for all.
What’s Next?
The final draft is due to be completed in Q1, with a launch date of mid-to-late Q2. Whilst intermediaries can adopt the standard under self-assessment, the gold standard will be those intermediaries who have been externally accredited.
If you use an intermediary who adopts the standard, you should expect to see refreshed processes and behaviours, which may initially involve them asking more questions than before, as well as documenting instructions.
Speak with George Baker Shipping today to learn how we can help you navigate customs changes and keep your goods moving smoothly.
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