Background

Customs intermediaries play a pivotal role in moving goods across the UK borders, and according to government sources, were responsible for 80% of all 2025 international customs declarations for 99% of traders who depend on those intermediaries to make compliant declarations on their behalf.

Over time, it has become increasingly apparent to HMRC that working practice standards between customs intermediaries working for UK traders can vary considerably. Inconsistent or negligent practice on the part of the customs intermediary can negatively impact the trader, who may, as a direct result, find themselves fielding HMRC penalties for any errors made by third parties on their legal customs declarations.

As it stands, there is no barrier to setting up as a customs intermediary.

Other UK government bodies and their related IT systems have varying regulatory data input requirements to enable a cross-border movement of goods. 

These systems do not allow HMRC any broad view of the activities of the individual intermediary businesses that interact with them.  There is no audit process for the intermediary, which leaves HMRC without any clear view of intermediary behaviours or behaviour patterns, and the trader vulnerable to intermediary error, incompetence or negligence.

HMRC intend to address this gap by initiating mandatory registration after consultation with industry on how best to plan and implement the measure.

Definition of Customs Intermediary

A customs intermediary is a third-party professional or organisation that acts on behalf of importers or exporters in their interaction with customs authorities. 

An intermediary's focus is ensuring compliance with customs regulations, facilitating the movement of goods across borders.

Customs brokers, customs agents, freight-forwarders and fast parcel operators all fall into the customs intermediary definition with their primary role covering the following:

• the preparation and submission of customs declarations
• ensuring the correct payment of duties and taxes
• maintaining compliance with regulatory requirements during the import and export process

Intermediaries may also provide additional services to support transportation of goods or advising on customs procedures.

Cross-Border Formalities: Volumes Increased Post EU Exit

The volumes of data submissions required to support customs formalities have increased substantially since the implementation of the EU Exit. Data-hungry IT systems require data-entry precision if customs compliance requirements are to be met.

Feedback from both industry groups and traders directly indicates that intermediary behaviours can vary considerably - from inconsistent practices and simple keying errors to serious non-compliances. 

Any non-compliance at intermediary level will cause a failure at HMRC audit for the trader and, where serious enough, trader penalties.

The UK government has indicated that it has taken steps to build capacity and resilience in the customs intermediary sector to support the increased customs declaration volumes now in place due to the establishment of a UK/EU border. 

One step was to consult on the introduction of a Voluntary Standard for Customs Intermediaries in June 2023, which led to a British Standards Institution document published on 3^rd June this year, setting best practice for the intermediary industry.

The next step is consulting on the scope of mandatory registration for the customs standard, rather than a voluntary sign-up to an agreed baseline which would have no regulatory come-back.

HMRC will perform automated checks at the point of registration, and periodically after registration to ensure ongoing compliance.

The scope of resulting legislation is intended to build trust in this vital sector of international trade.

Scope of the Consultation

The consultation is to determine industry and trader views on a new mandatory registration for the customs intermediaries who submit customs declarations on their behalf. 

1. This consultation seeks to establish views on the following:

• the proposed scope of mandatory registration
• which intermediaries should be excluded from the scope
• proposed mandatory requirements and associated compliance checks
• the proposed enforcement approach
• how the proposals could be implemented proportionately

2. The proposal is that mandatory registration requirements should:

• apply UK-wide for intermediaries who interact with HMRC
• apply to both imports and exports
• apply consistently across all customs activity, rather than being limited to specific declaration types

3. It is proposed that mandatory registration should not apply to:

• intermediaries who provide advice only and do not interact with HMRC on behalf of traders
• hauliers and carriers as their interaction with HMRC is to fulfil their own legal obligations and does not involve making or amending customs declarations on behalf of traders
• self-representation to ensure the proposed policy targets customs intermediary-related harm without creating unnecessary burdens for traders

Who should participate in the Consultation?

Engagement is welcomed from any individual or business with views on the proposed introduction of mandatory registration for customs intermediaries. Therefore, responses would be welcomed from the following:

• customs intermediaries, including customs agents and brokers, freight forwarders and express operators
• traders who rely on intermediaries to fulfil their customs obligations
• professional and representative bodies
• software providers
• other stakeholders with an interest in, and understanding of, the customs intermediary sector

The consultation runs from 22^nd June 2026 to close on 21 September 2026.

Determining and Meeting the Mandatory Standard

The intention post-consultation is to introduce legislation in line with legislation implemented for tax advisors last year (link at the end of this article). Tax advisors are now required to register with the authorities and are mandated to meet legal standards. Unregistered tax advisors are acting outside of the law.

This consultation is intended to help scope the legislation that will follow, setting the legal standard to be met by customs intermediaries in the future, aligning with the tax standards approach, thus ensuring a consistent approach by HMRC across the customs and tax framework.

The minimum requirements for customs intermediaries are expected to mirror those introduced for tax advisers in May 2026. The baseline for tax advisers is as follows:

• that their tax affairs are up to date
• they are not subject to a decision by HMRC to refuse to deal with them
• they are not disqualified to act as a director of a company
• no insolvency practitioner is acting in relation to them
• there is no unspent criminal conviction for relevant offences
• they do not have a history of serious customs non-compliance

Enforcing the Measure:

Enforcement is expected to be in line with that implemented for tax advisors and will follow a risk-based approach

There will be published webinars and guidance to help those registering for the measure in the future.

Consultation questions can be found in section 7 of the Customs intermediaries: introduction of Mandatory Registration pages, link below:

Customs intermediaries: introduction of Mandatory Registration - GOV.UK

Responses to the call for evidence are to be submitted by email, which can be found on the consultation pages above.

Note: Not all questions in this consultation will be relevant to all respondents. HMRC suggest that respondents focus on aspects of customs that are most relevant to their working practice. 

Responses should be sent by Monday 21 September 2026, by email to customsintermediariesconsultation@hmrc.gov.uk. Any queries should also be sent to this address.

Additional ways to be involved

HMRC will be holding webinars to engage with interested parties on the consultation.

Registration to attend can be made by emailing the following address: customsintermediariesconsultation@hmrc.gov.uk.

After the consultation

The government will aim to publish a summary of responses as soon as possible after the end of the consultation period.

A link to the outcome of the 2023 consultation for a voluntary standard for intermediaries can be found here:

Introducing a voluntary standard for customs intermediaries - summary of responses - GOV.UK

The specification of the Standard for Customs Intermediaries published in June 2026 can be found here: PAS 41201:2026 | 30 Jun 2026 | BSI Knowledge

A link to the Policy Paper for Tax Advisors can be found here:

Tax advisers to register with HMRC and meet minimum standards - GOV.UK