Importing or exporting in the UK? Brexit will have swelled your operating costs – as well as your business’ risks and admin burdens. Cross-border transactions with the EU now come with a raft of complex rules and procedures. But talk to our Customs & Excise experts, and they’ll help you turn the challenges into competitive advantages.
For many importers and exporters, Customs Compliance has always been a low priority but failure to have a proper understanding of your business’s exposure to Customs could result in duty liabilities which affect profitability of the imported goods.
MHA’s experienced Customs & Excise advisers can help you meet your customs obligations. They are experts at reviewing your cross-border activities and advising on processes that can help improve your business – in the UK, EU and beyond.
With tariffs becoming a regular news item, now is the time to review your business’s supply chains to understand the impact of global trade changes and ways to navigate any impact which could affect existing supplies.
In addition to Customs, the UK and EU are introducing new environmental taxes and compliance obligations to combat global warming. These will result in importers and exporters having to manage their supply chains in a different way. Depending on the commodities being moved across borders, the Carbon Border Adjustment Mechanism (CBAM) and EU Deforestation Regulation (EUDR) could impact the business and create significant compliance burdens which need to be managed to ensure continuation of supply chains. Now is the time to review your business’s international trade obligations to ensure operating efficiency and compliance with UK and global requirements.
Outsourced Customs Compliance
We understand not all businesses have the knowledge or resources to manage their customs affairs. MHA are able to take on this burden by providing our expertise to your company via its outsourcing service.
The service enables our team to conduct periodic reviews of your company’s import and export declarations to ensure the company complies with its customs obligations. Any errors or potential areas of concern will be discussed with you to ensure that a process is implemented to reduce risk and ensure the company has full awareness of any additional duty liabilities.
Staff training:
Our Coping with Customs training sessions help upskill employees and raise awareness about audit procedures and compliance obligations. These sessions empower your team to understand their roles in maintaining accurate records and prepares them for potential inquiries.
Indirect tax review:
We review the company’s cross border supply chains to identify any exposure to Indirect Taxes (e.g. VAT, Customs, Excise, PPT) that may impact the business. This requires discussions with your employees and review of relevant documentation, including invoices, contracts, and tax returns, to ensure that everything is accurate, complete, and readily accessible. We can then determine any gaps in processes and help resolve any issues that may affect compliance.
Ongoing support and updates:
We provide continuous support and stay informed about any changes in HMRC regulations. Our proactive approach ensures that you are always prepared and compliant, minimising the risk of penalties or complications during an audit.
Our audits ensure your business has the required procedures to manage compliance, whilst identifying any potential Customs Procedures which may benefit the business and provide duty savings.
Customs and Excise Duty Insight and Events
Unlocking biotech potential: What the US–UK tech partnership means for drug discovery
Yogan A. Patel
Tax Refresher - Issue 32
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Major changes to France's Regime 42: What UK businesses need to know from January 2026
Nick Crouch
MHA’s Indirect Tax Update Breakfast Seminar
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Tax Refresher - Issue 31
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Landmark tribunal case highlights customs agent liability over import VAT errors
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Classification of Goods
Navigating commodity codes can often be a complex and daunting task for businesses involved in international trade. Our team of experienced customs experts is here to simplify this process. We specialise in reviewing and confirming the correct commodity codes for the goods you import and export, ensuring compliance with all regulatory requirements.
Understanding that accuracy in classification is crucial, we work diligently to prevent any misclassification that could lead to unexpected challenges or costs. By leveraging our extensive knowledge of Customs regulations, we provide tailored guidance that aligns with your specific goods and trade routes.
Additionally, we offer assistance in obtaining Advance Tariff Rulings from HMRC. These rulings are not only legally binding for a period of three years, but they also significantly reduce the risk of uncertainty regarding your tariff obligations. With a confirmed tariff classification in hand, your company can strategically plan its costs and budgets without the fear of unforeseen duty liabilities.
Valuation
Depending on the nature of the supply chain, determining the correct value to be declared for Customs purposes can be very complex. As part of their audit program, HMRC will review the Customs value of the imported goods and will confirm that all includible costs have been considered and declared by the business.
This is especially important for companies who arrange the manufacture of the imported goods, or who are purchasing goods from related companies. These are two key areas of risk that HMRC will investigate.
We provide expert assistance to businesses in ensuring that the correct value is declared for Customs purposes.
Our services include
We conduct comprehensive assessments to determine the accurate Customs value of your imported goods. This includes reviewing the circumstances of the transaction, any related party agreements, and any relevant pricing arrangements.
Our team reviews all supporting documentation related to your imports, including invoices, shipping documents, and intercompany agreements. The aim is to identify any discrepancies and ensure that the declared value aligns with HMRC requirements.
We offer guidance on the regulations and best practices for declaring values to HMRC. This includes understanding the various methods of valuation and ensuring that you are compliant with all legal obligations.
Origin
The UK has many free trade agreements with countries across the globe which help UK importers and exporters reduce the customs duty in the supply chain.
Within these agreements there are potentially complex rules of origin which must be met to enable the preferential tariffs to be applied. Businesses who import or export under cover of a preference document/statement must ensure they have satisfactory supporting evidence otherwise they could face a significant customs duty assessment.
At MHA, our customs experts specialise in helping businesses understand Customs origin and rules of origin. Our comprehensive support enables you to effectively navigate duties, leverage free trade agreements, and ensure compliance with global trade regulations.
- Expert guidance: We provide insights into the complexities of Customs origin, ensuring you accurately declare the origin of your goods to avoid penalties and delays.
- Understanding rules of origin: Our team will clarify the specific rules that apply to your products, helping you determine whether they qualify for preferential origin status under various trade agreements.
- Duty optimisation: We assist you in calculating potential Customs Duties, identifying opportunities to reduce costs through preferential treatment, and ensuring that your business remains competitive.
- Compliance assurance: Staying compliant with global trade regulations is crucial. We help you establish processes to maintain compliance, including proper documentation and record-keeping practices.
- Market advantage: By being informed and proactive about Customs origin and duties, your business can gain a significant competitive edge in the marketplace, facilitating smoother operations and improved profit margins.
Our Customs and Excise Duty team
Alison Horner
VAT and Indirect Tax Partner
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Jonathan Main
VAT and Indirect Tax Partner
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Andrew Thurston
Customs Duty & Indirect Tax Consultant
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Carolyn O’Shea
VAT and Indirect Tax Senior Manager
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Nick Crouch
VAT and Indirect Tax Customs Duty Manager
Full detailsCustoms Procedures
We specialise in reviewing and implementing Customs processes such as Inward and Outward Processing, Customs Warehousing, and Temporary Admission. Our goal is to help businesses minimise Customs Duties and enhance efficiency within their supply chains.
Our services include:
Inward Processing:
We assess your eligibility for Inward Processing relief, allowing you to import goods for processing without paying Customs Duties. Our team guides you through the application process and ensures compliance with all regulations, helping to optimise your cost structure.
The unique nature of the UK-EU Trade Agreement means that UK manufacturers can significantly reduce the Customs Duties within the supply chain as Inward Processing and preferential origin can be used at the same time. If your company imports materials used in goods exported to the EU, it could potentially remove any Customs Duty in the supply chain. Many businesses are unaware of this benefit of the trade agreement. Our Team can review the supply chain and confirm the potential benefits and assist with any application to HMRC.
Another area that Inward Processing provides benefits is for importers who receive goods they do not own and then send them for repair or re-export. UK VAT legislation allows businesses to reclaim any import VAT if HMRC conducts a VAT inspection. If your business is importing goods it does not own, it may be subject to a non-refundable import VAT debt if HMRC conducts a VAT inspection. Inward Processing allows for the import VAT to be waived and discharged on correct re-export minimising the VAT risk.
Outward Processing:
We assist businesses in utilising Outward Processing, which enables you to export goods for processing abroad without incurring duties upon export. We help you navigate the requirements and implement this strategy effectively to reduce overall costs.
Customs Warehousing:
Our experts evaluate whether Customs Warehousing can benefit your operations. By storing goods in a duty-suspended environment, you can defer Customs Duties until the goods are released for consumption, enhancing cash flow and inventory management.
Temporary Admission:
We provide guidance on utilising Temporary Admission for goods that are imported for a limited time and will be re-exported. This can significantly reduce or eliminate Customs Duties, and we ensure that all conditions are met to comply with HMRC regulations.
Carbon Border Adjustment Mechanism (CBAM)
The European Union introduced the CBAM, which imposes a carbon border tax on certain carbon-intensive products (cement, iron and steel, aluminium, fertilizers, electricity, and hydrogen) imported into the EU to reduce carbon emissions.
The regulation forms part of the ‘Fit for 55 Package’, designed to reduce the EU’s greenhouse gas emissions by 55% by 2030. This mechanism promotes fair competition and encourages sustainable practices globally.
MHA are assisting businesses who buy or sell the above commodities with reviewing the scope of the CBAM and reviewing processes to manage compliance and data collection.
For UK manufacturers, our team can review the installation boundaries of the production processes and assist with collating and calculating the Direct and Indirect Greenhouse Gas (GHG) emissions required for EU reporting purposes.
EU Deforestation Regulation (EUDR)
The world is a changing place and deforestation is the number one cause of climate change. To address this issue, countries and territories across the world are implementing regulations to reduce the damage caused by deforestation.
The EU and UK are two of the leading lights in this area with the EU implementing the EUDR in 2023 and the UK actively following suit with the UK Forest Commodity Regulation.
MHA is committed to assisting UK businesses with managing their obligations under the two regulations and, as with everything, these are not a one size fits all solution to the problem. This creates requirements for separate evidence resulting in uncertainty and risk for the business.
At MHA we are reviewing and piloting solutions to assist its clients in reviewing their exposure to these new regulations and advice on the types of evidence and processes required to mitigate risk and, ultimately, help save the planet.
MHA are reviewing the requirements of company ESG policy and will be reviewed on a regular basis to ensure compliance with the legislation. Penalties, from what has been published on the EUDR, are severe and we expect similar for the UKFRC once further legislation is implemented.
So, what can MHA provide your business on the EUDR and UKFRC? We can conduct a pre-implementation review to confirm the exposure of your company to these new regulations and assist with formulating policies and procedures to manage compliance and data requirements.
Plastic Packaging Tax
The UK and EU are driving behavioural changes towards the impact of cross-border movements of goods to slow down global warming. One of these regulatory controls includes Plastic Packaging Taxes.
In the UK, PPT has been in place since April 2022 and impacts UK manufacturers and importers of plastic packaging components, such as bottles, cartons, bags, etc. Business involved in the supply or import of plastic packaging, even if part of a finished product (e.g. filled drinks bottle), the tax is applicable.
Our Customs Team can review the company’s exposure to PPT and determine the data required and potential requirement to register and submit quarterly PPT Returns.
If required, our Indirect Tax Team can review UK PPT data and submit the quarterly returns to HMRC to ensure the client complies with its obligations.
MHA can provide businesses with expertise in identifying and analysing commercial data to establish any exposure to UK PPT.
Senior Accounting Officer (SAO)
If your company has an annual turnover of more than £200 million, you need to think about the SAO regime. There are a number of requirements that must be met under this regime, but the broad requirement is that an individual in the business must be appointed as the SAO and must certify on an annual basis that the business has established and maintains appropriate tax accounting arrangements to ensure tax liabilities are calculated accurately. Tax for these purposes covers a wide range of taxes, including Corporation Tax, VAT, PAYE, and Customs Duty and it is important that all relevant taxes are covered. Penalties can be raised against the company and against the SAO personally for any failures in meeting the requirements of the regime.
We work with our clients who are approaching the £200m turnover milestone to help them review their current process and control frameworks relevant to tax, identify areas of potential tax risk, and develop a plan to allow the SAO to deliver an unqualified certification when the time comes.
