The 5 Red Flags in your Customs Agent’s Performance
As a business leader, you likely assume that your customs broker is your safety net. But in the eyes of HMRC, the legal liability for every declaration remains with you, the importer. If your agent is cutting corners, they aren't just saving time—they are exposing your business to back-dated duty assessments and civil penalties.
Red Flag 1: Passive "Data Entry" vs. Real Customs Brokerage
If your agent simply "keys in" exactly what is on your commercial invoice without ever questioning a Commodity Code or an Incoterm, they are a typist, not a Customs Agent. A professional partner should challenge data sets (Commodity Codes, INCOTERMS, Valuations) that look inconsistent with your goods, to ensure compliance, and avoid your company any headaches further down the line.
Red Flag 2: The Missing Data
You cannot manage what you cannot see. If your agent does not provide you with regular Management Support System (MSS) reports, you have zero visibility into your duty liabilities, declaration accuracy, and control over your international trade shipments. At Ready, we believe monthly MSS reconciliation is the non-negotiable foundation of any compliance strategy.
Red Flag 3: Defaulting to 'Method 1' Valuation
HMRC expects you to declare the true "Customs Value." If your agent doesn't ensure they understand how the customs valuation has been decided, i.e. free-of-charge samples, commercial sales, or imports for repair, they are likely misdeclaring your import declarations. This is one of the first things a HMRC officer would check.
Red Flag 4: The Blanket Commodity Code
Does your agent use one single HS Code for 50 different products because it's roughly the same thing? This is a major red flag. HMRC’s new CDS system uses automated data analytics to flag misclassification patterns. If your broker is lazy with coding to speed up their workflow, they are building a hidden liability for you. One audit can result in HMRC demanding the correct duty rate for every shipment over the last three years.
Red Flag 5: Silence on Regulatory Changes
If you heard about the Vape Tax or BTOM from a news site before your agent told you, you have a communication problem. Your agent should be your early-warning system, not a reactive service provider.