How to Audit an Import Declaration
When it comes to customs declarations, taking ownership and ensuring compliance is essential for every business engaged in importing goods. At SwiftFile, we emphasize the importance of auditing your import declarations regularly. Conducting spot checks not only strengthens compliance but also helps businesses avoid costly mistakes and penalties.
If you’re wondering how to start the review process, here’s a step-by-step guide to auditing an import declaration, designed to streamline your checks and enhance accuracy.
Why Audit Import Declarations?
Customs declarations are critical documents for international trade. Ensuring their accuracy can prevent discrepancies, legal issues, and financial losses. Importers are encouraged to perform routine spot checks to prepare for potential audits from customs authorities and maintain compliance.
5 Steps to Audit an Import Declaration
- Agree the Value to the Purchase Invoice
- Verify that the declared value aligns with the actual purchase invoice. This ensures the accuracy of the declared import value.
- Verify the Commodity Code Against the TARIC Database
- Check that the commodity code matches the goods being imported. TARIC is the EU database of commodity codes. This step is crucial, as commodity codes are vital in determining import duties.
- Ensure Proof of Origin for Preferential Duty Claims
- If preferential import duties are claimed, ensure that you have valid proof of origin documents to back these claims. This would take the form of a Statement on Origin from the manufacturer, or other documents to prove the goods are originating.
- Validate Transport Costs Against Freight Invoices
- Confirm that transportation costs (coded as AK) declared in the import declaration agree to the freight invoice. When agreed INCOTERMS are FOB, FCA or EXW, the freight cost should be included in the import duty calculation.
- Cross-Check Import VAT to Returns
- For postponed import VAT, ensure the VAT amount corresponds to your VAT return file and is correctly accounted for. It is vitally important that any import VAT postponed is properly accounted for. Tax authorities can exclude non-compliant companies of availing of it.
Click here to view our How to Audit an Import Declaration Guide
How SwiftFile Can Help
At SwiftFile, we assist businesses in navigating the complexities of customs compliance. From filing declarations to providing expert advice, our team is here to support your journey toward seamless import processes.
Reach out today to discuss your customs declaration needs and how we can help your business ensure compliance.
Contact Us
Brian McNamara, FCA
📞 01 901 1780
📧 Brian@SwiftFile.ie
🌐 www.SwiftFile.ie
Conclusion
Regular audits of your import declarations are an essential practice for every importer. By following the outlined steps and engaging with experts like SwiftFile, your business can mitigate risks, ensure compliance, and focus on growth without the fear of unexpected customs issues.
