What is SCDP?
Simplified Customs Declaration Processes (SCDP) is a method for import clearance used by volume traders that allows goods to proceed through the border with minimal information declared.
This “incomplete” declaration provides enough information to release the goods at the border, but suspends the payment of duty and VAT and allows time for the importer to collect information and documents.
Then, a second declaration is made by the fourth working day of the following month, which “completes” all of the simplified declarations, and the taxes are paid.
By temporarily suspending the need for a full declaration and the payment of taxes, your company can:
- Benefit from improved cash flow.
- Keep goods moving quickly through the border.
- Optimise declaration and accounts reporting.
Furthermore, the process can be combined with bonded warehousing. Due to the automation potential of entering goods into bond without completing and sending multiple declarations to the warehouse, this is a popular use of SCDP. The secondary declaration then informs customs of all the goods that have entered the bonded warehouse in that month with one entry.
Who can use Simplified Customs Declaration Processes?
Both you as the trader and your customs broker must be approved for you to use Simplified Customs Declaration Processes (SCDP). Allowing goods to leave the border without a full declaration or the payment of taxes is a risk for HMRC, so the process for obtaining authorisation is not easy or quick.
Here are some of the criteria that your business must meet to be considered for SCDP approval:
- Your company must be established in the UK.
- You must have no criminal activity associated with your business.
- You must have a good history of customs compliance, correct and timely VAT returns, and a good record of deferment account payments (if applicable).
- You must have records of all your declarations for four years after the submission date.
- You must have written SOPs surrounding customs activities.
Book a quick scan with a customs consultant to check where you need to improve your processes to make your application for SCDP approval more likely to succeed.
Who cannot use SCDP?
SCDP cannot be used for SCDP-prohibited commodities, nor shipments destined for uses covered by other procedures. Some examples of these are:
- Personal effects.
- Hydrocarbon oils (IE petroleum).
- ATA Carnet goods.
Check with a customs consultant if you are concerned that your business might not be able to benefit from SCDP.
Want to know more about how SCDP can benefit you?
Customs Support has four operational SCDP teams in the UK, located in our Felixstowe, Paisley, Eastbourne, and Tenterden offices.
Furthermore, our customs consultants in the UK have assisted businesses just like yours with obtaining their authorisation for Simplified Customs Declaration Processes.
Contact one of our team for more information on SCDP today.