Over the past two years, we have seen a significant increase in the overpayment of Customs Duties. From our own Client data, we see almost 14% of all consignments have a Customs Duty overpayment.
Even HMRC are aware there’s been significant overpayments of Customs Duty & Import VAT. In an ONS publication from June 2022, HMRC received almost £750m more than they expected in Border Taxes.
The good news is that Traders are entitled to reclaim all of their overpaid Customs Duty up to 3 years from the date of clearance.
Many of the instances of overpaid duties are caused by one, or any combination, of the following:
- Suppliers without Customs knowledge or understanding
- Time-pressure on Clearing & Customs Agents to clear goods
- Inexperienced Clearing & Customs Agents
- Warehousing-pressure on Hauliers & Couriers to clear goods
- New FTAs entering into force during 2020-22
- Good, old-fashion human error
Through our extensive Client work, 94% of Traders have overpaid Customs Duties & Import VAT in FY20-22.
Checking Your Customs Duty Exposure
There’s only one way to really if your business has overpaid Customs Duties & import VAT since Brexit; request your MSS Data from HMRC.
What is MSS Data
MSS Data is a log of all import declarations made on your business’s behalf throughout the UK. The MSS Data is the key to understanding your Border Tax exposure.
By analysing the matrix of product, origin, dispatch, value & tax in an MSS Data Report, a Trader can understand the Border Taxes paid against the Border Taxes that should have been due.
Let Falsum Handle the MSS Analysis
Tax Authorities administer complex processes for Customs Duty and Import VAT reclaims. For many Traders, the administrative time burden of navigating the Duty Reclaim process does not result in a good return on investment. However, our DMT is a ‘managed service’ designed to make get the greatest value back to your business:
- Falsum request the MSS Data on your behalf
- Falsum pay HMRC directly for the MSS Data access
- MSS Data is provided directly to Falsum for analysis
- The Duty Management Tool (DMT) runs a fully-automated Customs Duty analysis
- The Duty Management Portal (DMP) saves an average of 47 minutes per Reclaim
Our Duty Management Tool (DMT) can process your MSS data in minutes. The DMT establishes your Border Tax over-exposure and begins the automated Duty Reclaim process on your behalf.
