4 / 21 Customs representation

Module 4

It is set out in Article 18 of the Union Customs Code that any person may appoint a customs representative (also called 'customs broker', 'customs agent'). According to the statistics of several EU member states, customs brokers take care of more than 80% of import and export customs declarations. Therefore, they play an important role as an intermediary between traders and customs.

The aim of this module is to give you an understanding of:

• general principles of representation and the role of the representatives;
• the importance of the role of customs representatives for both business and customs;
• the legal definition of and requirements for customs representation;
• commercial, transportation and other documents and data related to the international trade transaction - the basis of customs formalities and the actions of customs representatives;
• the sequence of actions of customs representatives in line of the sequence of import and export customs formalities;
• the main aspects of customs brokers' management from an importer's perspective.

Lessons

The module consists of two lessons and an optional part:

1. Customs representation: definition and requirements of customs representation; types of customs representation - direct and indirect; customs representation in importation and exportation processes;
2. Customs brokers’ management (importer’s perspective);
3. Some further aspects to consider: post-clearance amendment of SAD box 14; discussion on aspects of customs brokers' management - contracts, KPI's, communication, etc. (transcript of the discussion is available in Resources).

Task: After watching videos, dedicate some time to research websites of associations of customs brokers and similar organizations, for example, International Federation of Customs Brokers Associations (IFCBA), The National Organization of Customs Agents (NOCA) in Bulgaria, Lithuanian Customs Practitioners Association (LCPA). What role do they play?

Outcome

At the end of the module, you should know:

• What customs representatives do and may do, and what requirements apply to their activities;
• The responsibilities and liabilities of both the representative and the represented person;
• How to choose the most suitable customs representative and establish a succesful cooperation, focused on minimising customs-related risks and maximising benefits;
• The concepts of primary and secondary documents of customs clearance.

Time

Please plan to dedicate around 2 hours to complete this module.

The consequences of the actions performed by the representative occur directly for the represented person.

Dr Momchil Antov

The professional knowledge of customs representatives protects the interests of both business and customs, which in turn protect the interests of the state and society.

Dr Momchil Antov