K2 Solution to Delays to UK Customs and Potential Additional Charges Created by New ToR Process

K2, the relocation management and advisory services company, provided a January update on the changes affecting customs procedures for household goods shipments into the UK. The change saw the phasing out of the C3 form and transition to the more rigorous Transfer of Residence (ToR) process.

View the previous blog http://www.k2corporatemobility.com/Compliance-Changes-to-UK-Customs-Procedu

A More Rigorous and Lengthy Process

As of 1 April 2017, only shipments using the ToR system are accepted as a valid customs declaration. The system requires completion and submission of the ToR form to HMRC. This normally takes 5-10 days to be processed and for UK HM Revenues and Customs to provide a code for exemption from duties during the customs clearance process. This is a longer process than the old C3 system. It is also applicable to all household goods shipments into the UK, including airfreight, and if not managed effectively it can delay shipments and create additional charges.

K2 has been utilising the ToR process since it became available and managed shipments without delay or additional charge. However, since 1 April HMRC has experienced a significant increase in applications and are delayed in issuing codes to facilitate the customs process. This has the potential to significantly delay moves and create additional storage, port and duty charges for clients.

K2 Solution to Prevent Delay and Costs

K2 has developed a clever solution to mitigate the potential risk of additional costs and shipment delays from the extended HMRC process through the provision of a simple K2 pre-move document which your assignees will receive from their K2 Client Services Manager just after their pre-move survey to attach to their application. This will allow them to make their application earlier and ensure the HMRC processing time does not delay the move. This is particularly useful for air freights, mini moves and container moves where shipping times are relatively quick. For example; from the US or UAE to the UK.

Please note the responsibility for completion and submitting under the ToR belongs to the owner of the personal property/household effects. To ensure this aspect is managed effectively, K2 is proactively working with assignees to ensure that they have the support they need during the application process. We will also be checking with HR and Global Mobility teams to ensure that visas and assignment letters are in place in time for the application.

More Information

Please contact your K2 account manager or call our offices and we will be very happy to discuss the ToR process and our solution.