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Many companies will use drones to take photos, inspect operations, and view the underside of a platform. But, in terms of dual use regulations, operators must also be aware that it can also be considered as an item that could be used in a military sense for spying and attacks.
Likewise, a steel pipe for piping in an accommodation block on an oil rig could also be viewed as an item which could create tanks turrets. And a simple and common ROV system which inspects operations on the seabed, providing vital operational info, is classed as a device which is capable of placing mines or explosives.
These examples highlight the complexity of ensuring compliance which, without the correct controls, could lead to companies and responsible individuals facing significant consequences including fines and, in extreme circumstances, criminal penalties.
Gordon Matson, Director at LS Customs, said:
“There are hundreds of what the Export Control Joint Unit (ECJU) terms as dual-use items being transported to and from oil rigs every day and companies face significant fines, and potential criminal charges, for not holding the correct licences and controlling your audit trail.”
LS Customs provides expert oversight and support to ensure dual-use items are correctly identified and possess the detailed paperwork required.
For more information and support, contact queries@lscustoms.com.
Leading customs consultancy LS Customs is advising companies to ensure their documentation is in order so they can be prepared should they be subject to HMRC compliance checks.
HMRC can conduct compliance checks with little to no notice on customs activities, going back three years. If a company is found to be failing to adhere to due process they can face unlimited fines.
LS Customs provides a compliance audit service, with its expert team acting as auditors to police companies’ systems and then offering advice to protect should any issues arise.
These audits include reviewing the trail for Returned Goods Relief (RGR), correct commodity coding of items, and licences for dual-use materials.
Gordon Matson, Director at LS Customs, said:
“Our people know what HMRC is looking for and can offer both policing and protection services. They are highly skilled in identifying any issues in systems and processes which need to be rectified in order to be operating in a compliant manner. The fine threshold from HMRC is unlimited, so an investment in an independent audit is one that all companies should consider to ensure that all is in order.”
The LS Customs team would choose declarations within a three-year limit to review. The client then has a period to prepare and review documentation before an in-person or remote audit to ensure compliance with general customs rules and any specific requirements for authorisations held. The team will then compile a report with findings, observations, failures, recommendations, and advice.
To find out more about compliance audits, email queries@lscustoms.com.
As energy projects continue to face continued budgetary pressures, the use of customs warehouses is saving significant sums for energy operators and service companies.
Peterson operates three public customs warehouses in Edzell and Aberdeen and has the largest footprint of customs warehouses in the North-east, with indoor and outdoor laydown customs bonded areas.
By using a customs warehouse, Peterson’s clients’ VAT and duty liability when importing to the UK is negated if items are re-exported.
Andrew Ellis, Commercial Director at Peterson, said:
“Customs warehouses ensure energy operators pay the right liability for their requirements. We have saved customers hundreds of thousands of pounds by retaining their goods for re-exporting in customs warehouses. This is a time where the industry must act smarter in order to drive the energy transition, and we are pleased that this is a tangible cost-saving measure we can offer our customers.”
Peterson is an approved Authorised Economic Operator, and working with its portfolio business LS Customs, ensures absolute compliance with all necessary documentation for customers.
Gordon Matson, Director of LS Customs, added:
“Project budgets can be massively impacted by VAT and duty. We have heard of companies undertaking a rental of £1m for a piece of equipment destined for the UK Continental Shelf. When it returns to shore three days later, they can face a further quarter of a million cost in VAT and duty. By providing a customs warehouse, we can save clients significantly which can massively contribute to streamlining the costs of operating in the UKCS.”
A customs warehouse is an authorised, secure facility where imported goods can be stored temporarily and treated as still being in-transit before re-export.
To find out more about Peterson’s customs warehousing capacity, contact queries@lscustoms.com.
LS Customs holds a host of ISO certifications which show we are as serious about our operation, our people, and our environment as we are about customs.
We are proud to hold:
- ISO 9001:2015 for our Quality Management System
- ISO 140001:2015 for our Environmental Management System
- ISO 50001:2018 for our Environmental Management System
- ISO 450001:2018 for our Occupational Health & Safety Management System
Gordon Matson, Managing Director of LS Customs:
“We hope that by demonstrating our competencies beyond customs, we show our customers that we are a serious, trustworthy, professional, and caring business which goes above and beyond in all we do. We’re proud to hold these accreditations.”
In less than five months, the EU’s Carbon Border Adjustment Mechanism (CBAM) will come into force. The UK version will be launched one year later on 1st January 2027.
And while these dates may seem far off, LS Customs is urging companies to act now to ensure they have the right processes and systems in place to understand their liabilities and exposure.
Gordon Matson, Managing Director of LS Customs:
“CBAM is not a simple mechanism by any means and the treasury will expect robust records and reporting from all companies importing farming, construction, engineering, and certain oil and gas materials.
“We currently have a grace period to get to grips with the legislation, understand how it will impact our business, learn from how it’s being implemented in the EU, and prepare for its launch in the UK. Companies can also review their practices now and identify lower carbon and local alternatives to negate some liability.
“We are currently awaiting a launch date for the UKCS changes meaning we can expect two pretty seismic shifts in the customs landscape within a tight timeframe. These are complex matters with significant consequences including fines and project delays should companies get them wrong, so it is vital to be as well prepared as possible.”
What is CBAM?
HMRC cites: ‘The UK CBAM will place a carbon price on some of the most emissions intensive industrial goods imported to the UK from the aluminium, cement, fertiliser, hydrogen and iron & steel sectors that are at risk of carbon leakage.’
‘This will ensure highly traded, carbon intensive products from overseas face a comparable carbon price to that which would have been payable had they been produced in the UK, so that UK decarbonisation efforts lead to a true reduction in global emissions rather than simply displacing carbon emissions overseas.’
What can you do?
- Register with HMRC if you import more than £50,000 worth of goods.
- Find out what items are on the CBAM list by visiting HMRC.
- Capture carbon data on goods being moved.
- Assess your exposure – review your current imports and understand what is impacted and the likely cost.
How can LS Customs support?
- As a carbon and customs consultancy, LS Customs has expertise in navigating this space and can support with review, assessment, and recommendations for a lower carbon supply chain, as well as internal carbon accounting.
- Provide information and training sessions for staff.
- Review of customs data, analysing commodities for what is likely to be impacted.
- Ongoing customs support.
Contact queries@lscustoms.com for more information
The deadline for a customs and border control for the UK Continental Shelf (UKCS), the waters surrounding the UK, and the European Union has been extended once again.
A new date has yet to be announced but, according to LS Customs’ Managing Director Gordon Matson, businesses must prepare now as regulations may be introduced with relatively little notice.
What’s happening?
Since 2016, HMRC has been working to implement a suitable customs control for UKCS.
Gordon said: “This has previously been a grey area but HMRC believes it is necessary that there is clear legislation and governance for a number of reasons, including consistency UK Border control; safety, security and taxation; and to allow for efficient and streamlined trade practices.”
All cargo now must either complete:
- Full customs entries
- ‘Declaration by Conduct’ using a new ‘G-Form’ which is available on the Government Gateway website
These G-Forms are now live, and businesses are being encouraged to adopt them.
Why do businesses need to act now?
Due to industry pressure, the deadline has been pushed back several times. Most recently, the transition date was set for 31st May but no firm date for a full handover has been announced yet.
Gordon said: “A new deadline may be announced at short notice, and it is essential that all business which move goods on and offshore within the UKCS have learned how the new systems work and updated their internal processes to navigate the changes smoothly. This transition period buys businesses some grace to bring their internal processes in line with external requirements and businesses should be making the most of this opportunity to prepare.
“There are huge ramifications if, once it is enforced, it goes wrong. Without one of the processes being followed, goods cannot be loaded or unloaded. The economic impact could be significant. The time to act is now so we are more than ready when they come into force.”
What do the changes mean for businesses?
Whether using the full customs process or the simplified version, businesses are required to have the following information for all cargo, either on the full entry or held in records for the G-Form:
- Country of origin
- Commodity code
- Value
- Goods description in plain English
- Are the goods import or export controlled (medicines, ammunition, dual use materials etc.)?
How LS Customs, a Peterson company, can support
Gordon said: “LS Customs has been at the forefront of discussions with HMRC, working closely with the industry and our client base to inform and support this transition. We’ve made improvements to Flow, our quayside management app which is part of Peterson’s Lighthouse suite of software which digitises the logistics supply chain, to better track and administer exports and imports. We have run education sessions and conducted process reviews with our clients, covering how the changes will impact procurement, receipt, packing, shipping and backload. Our in-depth understanding of the new requirements means we’re well-placed to support businesses.”
LS Customs expert team can provide:
- Awareness training to keep your teams up to speed
- G-Form guidance for streamlined customs processing
- HS coding advice to ensure accurate classification
- Export licence guidance and application support
- Record-keeping best practices to maintain compliance
- Returned Goods Relief (RGR) audit support to optimise duty relief claims
- Manifest auditing to identify and address compliance gaps in advance
For more information, visit www.lscustoms.com or contact queries@lscustoms.com.
HMRC has now launched the G-form declaration, the new process for customs entries related to the UK Continental Shelf.
In recognition of the additional burden this places on industry, HMRC has extended the transition period with no set date. Once the launch date is announced, all cargo to and from the UKCS will require either a G-form or a full CDS declaration to be completed. Businesses must be prepared to ensure they are compliant with the new guidance.
This form is accessible on the UK Government Gateway, via the new guidance page linked here: https://www.gov.uk/guidance/moving-goods-between-great-britain-and-the-uk-continental-shelf
The G-form should take no more than 5 minutes to complete (provided all information is available) and can either be handled in-house or outsourced to your customs agent. Before a G-form can be submitted however, the owner of the goods will need to confirm they are eligible per the guidelines outlined in the link above. These fall under the headings “Eligible goods for imports”, “Eligible goods for exports” and “Goods that are not eligible”.
If you are moving goods that are not eligible, you must make a full declaration using the Customs Declaration Service.
Guidance on records and timing
The government has also released detailed guidance on the required records to be maintained for these declarations. Whilst the information required for the entry is minimal, your records now need to hold the information outlined in the new guidance page (under the heading “What records to keep”) for every item shipped. This includes records to identify eligible goods, required evidence to support claims for Returned Goods Relief, evidence of discharging from the Authorised Use procedure, inventory, and legal agreements between parties involved.
Finally, HMRC has advised that entries should be submitted no less than an hour before departure or arrival, so ensuring your manifests are ready and contain the details to allow customs declarations in advance is vital.
How we can help
Our team is ready to assist you navigate these changes. From training your staff on the G-form system, ensuring your documentation meets HMRC compliance standards or maintaining the records on your behalf, we have a variety of services to help make the transition seamless.
If you have any questions or require support, please don’t hesitate to reach out by emailing queries@lscustoms.com.
Congratulations to our LS Customs colleagues who are celebrating 20 years in business.
To mark the occasion, the team was joined by founder Liz Smith who established the business in September 2004 when she was working in the oil and energy industry and saw a gap in the market for a company offering customs advice.
LS Customs started off as a one-person operation, with Liz working from home and after reaching out to people she knew in the industry including current employees, Hazel Lamb, Karen Thomson, and Jane Waldie, she built her team with staff working in-house at clients’ premises.
She retired in 2019 having worked to support the transition in 2017 when LS Customs joined Peterson Energy Logistics.
Following Covid in 2020, the decision was made to have staff working together again and a team of four worked from a small office at Seabase. Today LS Customs has grown to 13 members of staff, who have a combined total of 200 years’ industry experience, working from a new facility in Hareness Circle.
Gordon Matson, LS Customs Director said:
“This is a milestone for LS Customs, and it was great to be joined by Liz to look back at how far we’ve come and share our ambitions for our continued growth and impact. We have a fantastic, expert team and we are so grateful for everyone’s input over the past two decades.
“There have been some challenging times for some clients over the years, and we have helped most of the big players in the North Sea to ensure they comply with rules and regulations set out by HMRC. At the moment we are preparing companies for the major changes to the declaration process coming into force in February 2025, for all goods being shipped between the UK and the UK Continental Shelf.
“Since joining Peterson, we have worked on big projects helping our clients achieve status, setting up customs warehouses and successfully gaining various Customs Authorisations to simplify their supply chain. Together, we have expanded the team and our services and helped to develop Peterson’s compliance offering.”
HMRC has confirmed a new declaration process will go live by the end of November which all businesses must be compliant with by February 2025.
The ‘G-form’ for processing a Declaration by Conduct will supersede Entry in Declarant’s Records (EIDR) or Simplified Declaration Procedure (SDP). From 1st March all goods must either have a G-Form or Full Declaration completed to travel between the UK and the UK Continental Shelf.
Businesses must be aware that there is a need to submit separate G-Forms for shipments involving multiple Economic Operators Registration and Identification (EORI) numbers. Mixed cargoes—those involving both owned and rental goods—will also require separate forms to be submitted for each EORI involved.
Gordon Matson, Director of LS Customs outlines some areas of consideration:
Waste treatment and legislation
One significant challenge is the treatment of offshore-generated waste. Under current legislation, waste cannot be classified under Returned Goods Relief (RGR) meaning it requires a full customs declaration, including a customs invoice and clearance before being released from the quayside. Any change to this would require new legislation, which HMRC has indicated is not likely in the near future.
Quayside and storage considerations
Goods transported under Declaration by Conduct may be temporarily offloaded to quayside areas, provided there is a designated storage facility such as at Aberdeen. In locations without temporary storage, goods must be cleared before disembarkation. This is a key operational consideration for businesses depending on the specific port facilities they use.
Liability and compliance
Liability for declaration errors will fall to the EORI holder, much like in standard import and export practices. HMRC has stated it will adopt a pragmatic approach when errors are discovered, tracing responsibility through the chain of supply. However, it expects that any liability transfer will be managed through supply chain contracts, rather than HMRC-issued guidance.
Compliance expectations and record keeping
Previously established requirements remain in place, these are:
- Proof when claiming RGR, including a full audit trail, is essential.
- Businesses must maintain records including HS codes, country of origin, value, and other key details for goods handled via Declaration by Conduct.
- If there is no proof of RGR on import, a full declaration will be required with all standard customs information.
- Licensable and excisable goods, as well as goods released from Customs Warehouses or under Inward Processing Relief (IPR), will still need a full declaration.
- Exports under Authorised Use can be handled with Declaration by Conduct but will require a full Bill of Discharge.
Preparing for full compliance
With the new regulations set to be fully in place by February 2025, businesses must begin the process of mapping their customs processes and ensuring that all necessary records are in place as soon as possible. This is particularly important for those handling mixed cargoes or goods that may be subject to specific declarations, such as licensable goods, excisable items, or waste materials.
LS Customs offers industry-leading support and advice which will ensure you are fully compliant by the deadline. Contact us today for expert guidance on managing your customs obligations and optimising your UKCS operations.
Recently, HM Revenue & Customs (HMRC) took a significant step forward in clarifying processes for imports and exports between the UK and the UK Continental Shelf (UKCS). In this blog post, we will break down the latest developments and how they impact your industry.
Since 2016, businesses have grappled with a mix of customs procedures, leading to an uneven playing field. HMRC’s latest initiative, Declaration by Conduct, aims to streamline these processes, providing clarity and fairness for all stakeholders. This simplified approach will see eligible goods utilising Declaration by Conduct, while non-eligible goods will require full customs entries.
So, what constitutes eligible goods? For outbound shipments to the UKCS, eligible goods include non-licensable or excisable items in Free Circulation or under Authorised Use in the UK. Similarly, inbound shipments from the UKCS must meet criteria for Returned Goods Relief (RGR) in addition to being non-licensable or excisable.
The Declaration by Conduct process involves submitting a simplified data set via the Government Gateway Portal, including information on declarants, shipping locations, item descriptions, and customs procedures. This declaration must be transmitted two hours prior to vessel departure or arrival, with a reference number generated upon submission.
Crucially, shippers must maintain comprehensive records of all items shipped to demonstrate eligibility. While HMRC will provide further guidance, these records are expected to include details such as Harmonized System (HS) Codes, values, quantities, country of origin, and RGR eligibility. This ensures transparency and facilitates auditing by HMRC to confirm compliance.
As we prepare for the implementation of Declaration by Conduct, several key points merit attention:
1. Responsibility for Declaration: HMRC holds no preference over who completes the declaration, but liability for mis-declared items will trace back to the responsible party. Likely you will have a customs agent who can take this responsibility on.
2. Returned Goods Relief: Records must be held demonstrating eligibility for RGR, that goods were held in Free Circulation in the UK within the last three years. If goods have been offshore for more than three years or if proof is unavailable, this may have an impact on duty and VAT obligations when bringing goods onshore.
3. Sanctions and Compliance: Items subject to sanctions, such as goods of potential Russian origin, will require full customs entries.
4. Consequences of Non-Compliance: Non-compliance may result in delays at the border, fines or even the loss of eligibility for Declaration by Conduct, necessitating full customs entries for all goods.
HMRC anticipates making the system available in summer this year, with ongoing developments such as the integration of sailings inventory via a C21 dependent on the rollout of the Customs Declaration Service (CDS) in March.
As these changes unfold, LS Customs remains committed to supporting your business through tailored consultancy services, ensuring seamless adaptation to evolving customs procedures. By staying informed and proactive we can navigate these changes together, unlocking opportunities and mitigating risks.
