Guide

Use simplified customs procedures

Speed up border clearance with Simplified Declaration Procedure (SDP), Entry in Declarant's Records (EIDR), Authorised Economic Operator (AEO) status, Customs Comprehensive Guarantee (CCG), and Inward Processing Relief for manufacturers.

Manufacturing & EngineeringRetail & Consumer Goods UK-wide

If you import goods regularly into the UK, standard customs declarations for every shipment can slow you down and tie up working capital. Simplified customs procedures let you release goods faster at the border and submit full declarations later.

This guide covers the main simplified procedures available to UK importers - from basic simplifications any business can apply for, through to trusted trader status that unlocks the greatest benefits.

What simplified procedures are available

The UK offers several ways to streamline customs clearance, each suited to different import volumes and business needs:

  • Simplified Declaration Procedure (SDP) - Release goods with minimal data, complete declarations later
  • Entry in Declarant's Records (EIDR) - Record arrivals in your own systems instead of making declarations
  • Authorised Economic Operator (AEO) - Trusted trader status providing priority treatment and guarantee reductions
  • Customs Comprehensive Guarantee (CCG) - Single guarantee covering all your customs operations
  • Inward Processing Relief - Suspend duty on goods imported for processing and re-export

Simplified Customs Declaration Process (SCDP)

SCDP is the umbrella scheme for simplified import declarations. Once authorised, you can use either or both of the two procedures below to speed up border clearance.

Who should apply for SCDP

SCDP suits businesses that import regularly and have the systems and compliance record to manage supplementary declarations. You will need:

  • A good customs compliance history (HMRC reviews the past 3 years)
  • A duty deferment account (or application pending)
  • Systems capable of communicating with HMRC's Customs Declaration Service
  • Written standard operating procedures for customs

If you are a smaller importer or import infrequently, the administrative overhead may outweigh the time savings. Consider whether duty deferment alone might be sufficient for your needs.

Simplified Declaration Procedure (SDP)

SDP lets you release goods at the frontier with minimal information, then submit the full declaration later. This is particularly useful when you need goods cleared quickly but do not have all the paperwork ready.

Entry in Declarant's Records (EIDR)

EIDR goes further than SDP - instead of making any frontier declaration, you simply record the goods arrival in your own commercial systems. This provides the fastest possible border clearance.

The controlled goods restriction

EIDR cannot be used for controlled goods at the frontier or into Freeports. If you import any controlled items - goods requiring licences, agricultural products, excise goods, or items subject to quotas - you must use SDP or standard declarations for those shipments.

Many businesses use both procedures - EIDR for standard goods where it provides the fastest clearance, SDP for controlled items where EIDR is not permitted.

Supplementary declarations - the compliance requirement

Both SDP and EIDR require you to submit a full supplementary declaration later. Miss this deadline and you face penalties plus potential duty liability.

Authorised Economic Operator (AEO) status

AEO is HMRC's trusted trader scheme. Once authorised, you receive priority treatment across all your customs interactions - faster authorisations, fewer inspections, and reduced guarantee requirements.

There are three types of AEO status, depending on whether you want customs simplifications, security benefits, or both.

Why apply for AEO

AEO provides concrete benefits that improve your cash flow and operational efficiency.

AEO for international trade

If you export to countries with mutual recognition arrangements, your UK AEO status provides priority treatment at their borders too. This can significantly reduce delays when trading with key markets.

Can you qualify for AEO?

AEO is not just for large businesses - any regular importer or exporter can apply. The key requirements are compliance record, financial stability, and customs competence.

The application process

AEO applications take up to 120 days and involve HMRC reviewing your compliance history and potentially visiting your premises. The process is free - there is no application fee, and HMRC does not charge for site visits or audits.

Before applying, complete the self-assessment questionnaire (form C118) to identify any gaps you need to address. Many businesses find it helpful to work with a customs consultant for their first AEO application.

Customs Comprehensive Guarantee (CCG)

A CCG provides HMRC with financial security covering all your customs operations under one umbrella. Without it, you would need separate guarantees for each type of customs activity.

When you need a CCG

You must have a CCG if you:

  • Hold a duty deferment account to delay payment of customs charges
  • Use common or Union transit more than 3 times per year
  • Hold full authorisation for special procedures (inward processing, temporary admission, end use)
  • Operate a temporary storage facility or customs warehouse

In Northern Ireland, a CCG (both authorisation and guarantee) is always required for duty deferment accounts - the waivers available in Great Britain do not apply.

Reducing your guarantee amount

The guarantee amount ties up working capital or requires bank facilities. AEO status provides the most efficient route to reductions.

Inward Processing Relief

If you import goods, process them, and then re-export the finished products, Inward Processing lets you suspend customs duty until the goods leave the UK. For manufacturers and repairers, this can provide significant cash flow benefits.

Types of Inward Processing authorisation

The authorisation you need depends on how often you use the procedure and the value of goods involved.

Keeping compliance - the Bill of Discharge

Inward Processing requires careful record-keeping. You must account for what happened to every import - whether it was re-exported, destroyed, or released to free circulation. Miss the reporting deadline and you will owe duty as if the goods entered free circulation.

Which procedure suits your business?

The right approach depends on your import volume, whether you handle controlled goods, and whether you also export.

  • Regular high-volume importer - SCDP with SDP and/or EIDR, plus AEO status for maximum benefit
  • Moderate-volume importer - SCDP with SDP provides faster clearance without the complexity of EIDR
  • Occasional importer - Duty deferment alone may be sufficient; SCDP administrative overhead may outweigh benefits
  • Manufacturer importing for processing - Inward Processing should be your priority; add SCDP for faster border clearance
  • Importer of controlled goods - Use SDP (EIDR is not available for controlled goods at the frontier)
  • Exporter to MRA countries - AEO with AEOS unlocks mutual recognition benefits at partner country borders

Getting started

Start with duty deferment if you do not already have it - this consolidates payments and improves cash flow regardless of which simplified procedures you later adopt.

For SCDP, ensure your customs compliance is clean, your VAT returns are up to date, and you have (or can develop) systems to communicate with HMRC's Customs Declaration Service.

For AEO, complete the self-assessment questionnaire first to identify any gaps. Many businesses find the preparation work improves their customs processes even before receiving AEO status.

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