CFSP14550 - Processing the application: Indirect Representative and trader’s records

An agent or third party may apply for CFSP authorisation in their own name or on behalf of their clients. Their clients, unlike with Direct Representation, would not require a separate CFSP authorisation. The IR assumes responsibility for meeting all the general criteria and conditions for authorisation (see CFSP13250). There are some additional conditions which the IR will need to adhere to in order to gain CFSP authorisation. These are covered in the following paragraphs:

Liability for the CFSP authorisation, security and customs debt

The IR is solely responsible for meeting the criteria and conditions of their CFSP authorisation. The IR is responsible for ensuring that all declarations are completed accurately, submitted on time to Customs and that all necessary documentation and supporting records are maintained satisfactorily.

The IR, as a condition of their authorisation is responsible for providing adequate security to cover all importations made through their CFSP authorisation. This must be sufficient to cover all importations made in their own name and on behalf of their clients. Further information on the level and manner in which this security may be provided is detailed in CFSP12000.

The IR is jointly and severally liable with the importer (their client) for any customs debts arising from all declarations including any errors/ under declarations etc made using their CFSP authorisation.

Procedure for authorising an IR for CFSP

If a trader/ agent applies for authorisation as an IR then, in addition to the General Authorisation procedures in CFSP13250 and CFSP14550 and the following points must be considered and actioned as early as possible within the authorisation process:

• Ensure that the IR can fully comply with all authorisation criteria and conditions including the provisions of Article 261 of Commission Regulation (EEC) 2454/93 (the Implementing Regulation).
• Assess the suitability of the IR’s system including retention of data ( CFSP14400).
• Establish whether or not the IR intends to develop an in-house Anti-smuggling Net (ASN) that would enable them to do bulk releases at the frontier. Without an ASN, third party operators (TPOs) must put in individual SFD’s for each consignment. ASNs are complex and require considerable trade and departmental effort. Any trader considering this option should contact the Cargo Systems & Development Team at LAP. See CFSP14700 for further details.
• Agree what information is required to be held about the importer, goods imported, deferment approval numbers and where the documentary evidence will be made available (see CFSP14400 on retention of records & complete audit trails).
• Security for the customs debt - who is to provide it and for what amount? (ie will this be provided by the IR, or the trader(s) they are representing, or will they each provide a percentage?
• Payment provision through a duty deferment guarantee. Any deferment can be used for payment purposes providing the user has the required authority (form C1207N must be completed and submitted to the CDO, this will result in the necessary authorisation being defined on CHIEF - see CFSP12200) and
• agree a testing procedure for the applicant (as explained in CFSP15000).

If authorising officers fail to agree and document these points, problems may arise at a later date.

When all the testing and pre-authorisation checks etc have been completed, the authorisation letters will need to be sent to the IR, as they will be the authorised party for CFSP.