HMRC Updates Customs Schedule Contraventions: New Civil Penalties Guidance

• HMRC has issued significant updates to its Customs civil penalties guidance, affecting multiple schedules of contraventions.
• Numerous Customs contravention reason codes have been added, removed, or revised across both customs and export schedules.
• Specific updates align with recent legislative changes, including the Customs (Special procedures and Outward processing) (EU Exit) Regulations 2018 and Customs (Aerodromes and Miscellaneous Amendments) Regulations 2023.
• Changes include modifications to maximum penalties for certain codes and the introduction of new reason codes in various operational sections.
• Businesses and legal advisors must review these HMRC Customs schedule contraventions updates to ensure ongoing compliance and mitigate penalty risks.

These comprehensive revisions underscore the dynamic nature of customs regulations and the critical need for businesses engaged in international trade to maintain vigilant compliance.

His Majesty's Revenue and Customs (HMRC) has recently published significant revisions to its guidance concerning GB Customs civil penalties, impacting several key schedules of contraventions. These updates involve a series of additions, removals, and modifications to specific Customs contravention reason codes across documents such as the 'Customs: schedule of contraventions from 1 January 2021', the 'Customs: schedule of contraventions after 9 May 2018', and various 'Export: schedule of contraventions'. The comprehensive nature of these changes reflects ongoing efforts to align penalty frameworks with evolving statutory regulations.

The revisions are not merely administrative; they introduce new categories of contraventions, adjust existing ones, and clarify the scope of others. Businesses engaged in international trade, along with their legal and compliance advisors, must thoroughly review these updated schedules to ensure their operations remain compliant and to understand potential exposures to civil penalties. The updates are designed to reflect the latest legislative landscape governing import and export activities within the UK.

Within the 'Customs: schedule of contraventions from 1 January 2021', several specific reason codes have undergone changes. Code 120 has been updated, while new reason codes 453 and 454 have been introduced. Additionally, codes 448, 450, 451, and 452 have been revised, as have codes 415 and DIR. Reason code 72 now incorporates details regarding the 'Person of a description (Maximum penalty)' within the 'Roll-on roll-off (RoRo) vehicles' section, and new codes 13 and 14 have been added to the 'Relief' and 'Unaccompanied goods' sections. Further updates affect the 'Report', 'EU system of duty reliefs', 'Presentation of goods to customs', 'Information and Records', and 'Unaccompanied goods' sections of this document. The maximum penalty for code 400 has been adjusted, and a new maximum penalty has been established for code 452.

Similar extensive revisions are evident in the 'Customs: schedule of contraventions after 9 May 2018'. Here, the 'relevant rule of a description' for reason code 121 has been updated in section 7, and reason code 031 has been removed from the 'Presentation of goods to customs' section. A broad range of codes, including 080, 120, 121, 200, 201, 205, 207, 209, 211, 230, 231, 409, 050, and 051, have been updated. Notably, reason code 6 has been revised to ensure consistency with amendments made to the 'Customs schedule of contraventions from 1 January 2021', and the entire document has been updated to reflect these alignments.

A significant aspect of these HMRC Customs schedule contraventions updates is their alignment with recent legislative developments. For instance, reason code 122 in the 'Customs schedule of contraventions from 1 January 2021' now specifically references regulation 42(7) of the Customs (Special procedures and Outward processing) (EU Exit) Regulations 2018. Similarly, the 'relevant rule of a description' for reason code 423 in the same schedule has been updated to reflect changes introduced by the Customs (Temporary Storage Facilities Approval Conditions and Miscellaneous Amendments) (EU Exit) Regulations 2018. Furthermore, the 'Report' and 'Declarations' sections of the 2021 customs schedule have been revised to incorporate legislative changes stemming from the Customs (Aerodromes and Miscellaneous Amendments) Regulations 2023.

The export schedules have also seen critical updates. In the 'Export: schedule of contraventions after 14 May 2018', reason codes 510 and 521 have been updated. The 'Export: schedule of contraventions from 1 January 2021' also features revisions to code 521, alongside updates to codes 502, 505, and 526. These export-related changes are explicitly stated to reflect modifications in various new and amended statutory regulations, underscoring the dynamic regulatory environment for international trade.

These comprehensive revisions underscore the dynamic nature of customs regulations and the critical need for businesses engaged in international trade to maintain vigilant compliance. Legal professionals advising clients on import/export or customs compliance must meticulously review these updated schedules of contraventions and associated regulations. This is essential to ensure that their clients' operations align with the latest requirements and to proactively mitigate exposure to civil penalties from HMRC.

Compliance officers within organizations should likewise update internal procedures, risk assessments, and training materials to reflect these changes. Failure to adapt to the updated GB Customs civil penalties guidance could result in significant financial penalties and operational disruptions. Proactive engagement with these new rules, including understanding the specific Customs contravention reason codes and their regulatory context, is paramount for maintaining robust customs compliance.

Lawyers advising clients on import/export or customs compliance must review these updated schedules of contraventions and associated regulations to ensure their clients' operations align with the latest requirements and to mitigate exposure to civil penalties from HMRC. Compliance officers should update internal procedures and risk assessments accordingly.

Source: Original reporting via GOV.UK guidance