What is an authorised consignor?
During an export transit clearance in the UK, the standard procedure is that the T1 form is raised on NCTS and the document is then printed at the border on presentation of the shipment. However, an authorised consignor can issue the document at the loading location instead – removing the need to wait for the document at the border.
To become an authorised consignor, you need to hold a special guarantee with HMRC, or you can apply to be one through a customs broker who has the required licence to extend their guarantee to you. Note that not every broker that holds a transit guarantee can extend the benefits of being an authorised consignor to you.
During customs clearance, you need to use your authorised location code on your import clearance to declare to customs that the transit procedure is closing at an authorised premises
What is an authorised consignee?
Similar to the export process, a transit shipment is usually presented to customs on arrival at the destination country. However, an authorised consignee can close the transit procedure at their premises instead. Again, this means that you can save time by not presenting the goods directly to the customs office in most cases (random checks are still applied).
As with authorised consignors, an authorised location code is also used on your export declaration when you are placing goods under a transit procedure from your premises.
What’s changing for authorised consignors and consignees with NCTS 5?
From the 1st of July, NCTS 5 will be in use in the UK. Along with the upgrade, there are changes to the way you need to declare your authorisations as an authorised consignor or consignee.
Your authorised location code will remain the same and will still be required for every declaration on NCTS 5, but this will now be referred to as the location reference number.
You will also need to declare your authorisation reference number, which is new. You should receive your authorisation reference number from HMRC by the end of May. If you have not received it yet, then you need to contact HMRC as soon as possible so that your transit shipments are not affected from the 1st of July.
Need advice?
Customs Support is here for you. If you need some assistance with understanding the new process for authorised consignors and consignees with NCTS 5, contact us for more information.
