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Agency Sector Management (UK) Ltd

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ASM Welcomes Simplified Approach to Declaring Ex-Heading Goods Under SAD-Haromonisation


Agency Sector Management (ASM), the UK’s leading developer and supplier of software solutions and first class support to members of the freight community, has welcomed the news that HM Revenue & Customs (HMRC) has simplified the Harmonised SAD Declaration of Ex-Heading Goods for commodity codes which are subject to Prohibitions & Restrictions measures.

London, United Kingdom, January 13, 2008 --(PR.com)-- Chairman of ASM, Peter MacSwiney says: “The deadline by which freight agents must have migrated to the new SAD-H system is just over two weeks away, with dual running of both old and new type Customs declarations expiring at midnight on 20th January.

“During the dual running period, the issue with SAD H declarations for commodity codes subject to Prohibitions & Restrictions measures has been a significant cause for concern amongst freight agents. This is because it affects Ex-Heading goods where, depending on the use of the goods, a licence may or may not be required. Under SAD H, The Customs Handling of Import and Export Freight (CHIEF) system requires a positive declaration of a licence even if one is not required.

”The main problem that has been experienced during the dual running is confusion over what document code is required in box 44, as it is not always apparent from the Tariff.

“In light of the difficulties this has caused and pressure that has been exerted by trade bodies, such as ourselves, HMRC has re-considered its approach to this issue and agreed to introduce a simplified solution to it.“

The requirement remains in place for a positive declaration that one or more licences is not required in these circumstances. However, this can now be declared by including a single, generic Additional Information (AI) statement at item level in box 44 with an AI statement code of LIC99 instead of a document code. No additional AI statement text is required. This AI statement effectively declares that the goods (on this item) are not subject to any documents other than those declared. It will not be considered an error if agents include this AI statement on an item where no such Prohibitions & Restrictions measures exist for the commodity code.

The CHIEF system was upgraded to include this change on 7th January 2008. CHIEF is one of the largest and most advanced customs declaration processing systems in the world. It is operated by HM Revenue & Customs (HMRC) and is used to record electronically the UK's international trade movements by land, sea or air.

Adds Mr MacSwiney: “It should be noted that this simplification is not just a replacement for declaring document codes at item level (that method will still work) but an alternative and simpler method of achieving the same result. It is a pragmatic solution by HMRC and is, therefore, most welcome.”

Last year, ASM released Version 11.1 of GeMS, with all the SAD H Customs functionality in place, giving users the time and opportunity to experience the new software and familiarise their staff with the new procedures as they are implemented.

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Notes to editors:

More detailed information on this is available on the ASM website.

Customs Information Paper CIP(08)02 gives full details of the change and is available at: http://www.asm.org.uk/docs/documentation/CIP_(08)_02_SAD_H_P&R_measures.doc

A spreadsheet listing all the P&R measures currently in force accompanies CIP(08)02 and is available at: http://www.asm.org.uk/docs/documentation/CIP_(08)_02_SAD_H_P&R_annex.xls
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Agency Sector Management (UK) Ltd
Ian Matheson
++44 (0)1689 860660
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