Recordkeeping

Why is recordkeeping important?

Companies are legally required to keep records related to their import and export transactions. That includes commercial, customs and shipping documentation. The company needs to obtain some of the documents from its freight forwarder, customs broker or other parties involved.

Do I need to keep records if I use a customs broker?

Companies using a customs broker to submit customs declarations should request copies of customs documentation for all transactions. The best practice is to do this on an ongoing basis. Companies that receive a post-importation information request from their customs authorities a year or two after importation can easily find that it is difficult to obtain that documentation from their customs broker retrospectively.

What documents shall I keep?

Other types of documents can also be required depending on any special procedures, licenses and other circumstances. For example, companies exporting under preferential tariffs are also required to keep documentary evidence confirming that their goods meet the rules of origin requirements. A Customs Value Declaration may be required when importing goods of a certain value. 

What is the retention period?

The retention period differs from country to country. Companies are required to verify how long they need to keep customs-related records under their national customs legislation. For example, EU customs law sets out the requirement to keep records for at least three years, which means that the national law in the EU member state can set a longer term (for example, an 8-year retention period is required in Lithuania). In the UK, companies are required to keep records for four years for customs and six years for VAT and excise.

What happens if I do not hold the records?

In many countries, the awareness of this legal requirement is relatively low and companies often do not hold records of their imports and exports. This may lead to serious consequences in case of an audit, for example, additional taxes, fines, administrative or even criminal penalties. Recordkeeping is an important part of customs compliance.