HMRC Guidelines on ExWorks exports

Posted on: 22/10/2012

HMRC has clarified its guidelines on export declarations relating to goods sold to a non-EU buyer for export, where the seller makes the goods available at the factory-gates but otherwise plays no part in their export i.e. Ex-works contracts. 

The two main changes are:

(i)         to make clear that an agent making an export declaration on behalf of a non-EU buyer must do so under indirect representation, and

(ii)        to make clear that the name of the EU contracting party must appear in Box 2 of the customs declaration as the consignor/exporter, while the name of the non-EU buyer goes in Box 44. (Additional information code GEN 50).

HMRC has made the first change because Article 64 of the Community Customs Code (Regulation 2913/92) requires that a declarant is established in the EU. In these cases the non EU buyer is the principal instructing the agent to lodge the export declaration and therefore the agent is the declarant and must act as an indirect representative.  The second change (on completing Box 2), is in order to comply with Article 788 of the Implementing Regulation to the Customs Code, which requires that, where the owner of the goods is established outside the Community, the exporter is the contracting party based in the Community.

For Prohibited and Restricted goods subject to an export licence, it is the responsibility of the exporter/the UK seller to apply for an appropriate licence for goods being sold in an ex-works contract.

Exceptions to the Agent Completing the Export Declaration on behalf of the Non EU Buyer.

a)         Where a UK seller, by exception in an ex works contract, instructs an agent to make an export declaration on his behalf, that agent may do so on a direct representation basis. This will need to be evidenced by a direct representation authority from the UK seller

b)         Requirements of CPEI regimes: - If acceptance of the custom import declaration imposes particular obligations on the UK seller, for example, inward processing authorisation holders; the re-export declaration can only be made by the UK seller or on his behalf.

c)         Export of Agricultural Goods requiring export licences: - EC Regulation 376/2008 states that where an export of agricultural goods requires an export licence, the export declaration must be lodged by the licence holder.

Further information:

HMRC CIP(12)47

BPG Evidence of Export

Non-compliance with export procedures

Relevant articles:

The Benefits of Offering Customers a Delivered Price

The Incoterms Rules

Incoterms in the Real World

Incoterms Rules

Training: Incoterms 2010 Rules Explained


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